Charles Julien

1
The Mediterranean and Globalisation An Egyptian
Perspective
The Global Market Revolution The Impact of the
World Trade Organization on Local
Players Naples, 24 November 2007
Charles Julien Legal Counsel
2
The multilateral trading system the WTO
Agreements? 151 Members All
Euro-Mediterranean partners with the exception of
Algeria, Lebanon, the Palestinian Authority and
Syria ? Scope Trade in goods Trade in
services Trade-related aspects of intellectual
property rights Integrated dispute settlement
mechanism ? Regular re-negotiations on-going
Doha Development Agenda
Multilateral vs. regional trade agreements
1
3
Most-favored nation (MFN) treatment a founding
principle of the multilateral trading system
WTO Members cannot discriminate between other
WTO Members equal treatment must be provided to
all
Multilateral vs. regional trade agreements

• Regional trade agreements (RTAs) an exception to
  MFN treatment ? Parties to a RTA may remove
  or substantially reduce duties and trade
  barriers between themselves? The establishment
  of a RTA should not impose additional
  restrictions on the Members not party to that RTA

2
4
The proliferation of RTAs within the
multilateral trading system ? 380 RTAs
notified under the GATT/WTO 250 RTAs in force?
Main characteristics Centerpiece of
countries commercial policy Increasing level
of sophistication North-South RTAs gradually
replace non-reciprocal systems of preferences
South-South RTAs Expansion and integration
of regional integration
Multilateral vs. regional trade agreements
3
5
37 trading partnersThe European Union and its 27
Member States and 10 Mediterranean partners
Algeria, Egypt, Israel, Jordan, Lebanon, Morocco,
the Palestinian Authority, Syria, Tunisia and
Turkey
Economic and Trade Features of the
Euro-Mediterranean (Euromed) Region

• 740 million citizens

• Growing trade relations? Mediterranean exports
  to the EU-27 have grown 10 yearly over the
  period 2000-2006 (Egypt and Algeria 17)? EU
  exports to Mediterranean partners have grown 4
  yearly? Relatively low integration 5 of total
  EU-27 trade

4
6
The Euro-Mediterranean Conference of Ministers of
Foreign Affairs Barcelona, 27-28/11/1995
The Barcelona Declaration the Foundation of the
Euro-Mediterranean Partnership

• Objectives of the Euromed Partnership?
  Political and security chapter common area of
  peace through political and security
  dialogue? Economic and financial chapter
  economic and financial partnership and the
  establishment of a free trade? Social,
  cultural and human chapter exchanges between
  civil societies and better understanding of
  people

• A two-dimension process bilateral and regional

5
7
Bilateral Agreements within the Euromed
Partnership

• Agreements between the EU and Mediterranean
  partners? Cooperation agreements concluded in
  the 1970s? Euromed Association Agreements
  Main features Establishment of a free-trade
  area by 2010 Provisions relating to
  intellectual property, services, public
  procurement and competition Economic
  cooperation Cooperation relating to social
  affairs and migration Cultural
  cooperation Political dialogue Respect for
  human rights and democracy

6
8
Bilateral Agreements within the Euromed
Partnership
? The trade component of Euromed Association
Agreements Liberalization of the trade of
manufactured goods - duty free access for
imports of manufactured goods from
Mediterranean partners into the EU - tariff
dismantlement of tariffs for imports of
manufactured goods from the EU into
Mediterranean partners into the EU
Asymmetric reciprocal preferences for
agricultural products Progressive
liberalization of trade in services Progressiv
e liberalization of investment policies
7
9
Bilateral Agreements within the Euromed
Partnership

• Agreements between the Egypt and Mediterranean
  partners? Jordan free-trade agreement -
  21/12/1999? Lebanon executive program -
  15/3/1999 ? Morocco free-trade agreement -
  28/4/1999? Syria preferential trade
  agreement - 1/12/1991? Tunisia free-trade
  agreement - 26/4/2007? Turkey free-trade
  agreement - 1/3/2007

8
10
Regional Agreements within the Euromed
Partnership

• The Agadir Agreement? Concluded between Egypt,
  Morocco, Jordan and Tunisia on 22/2/2004?
  Main features Establishment of a free-trade
  elimination of all tariff and non-tariff
  barriers on industrial and agricultural
  products Diagonal cumulation of origin

• The Arab Maghreb Union

9
11
Egypt and the Euromed Partnership
EU
Turkey
EFTA
Israel
Palestinian Authority
GAFTA
Lebanon
Barhein
Syria
Oman
Morocco
Egypt
Tunisia
Saudi Arabia
Jordan
Agadir Agreement
Algeria
Qatar
Iraq
Libya
GCC
UAE
Iran
Mauritania
Maghreb Union
10
12
Pan-Euromed system of cumulation of origin?
Harmonized rules of origin apply to the 40
Members of the Pan-Euromed system (Euromed
partners EFTA Members)? Allows economic
operators to cumulate processing made in
different Euromed partners and thus obtain
preferential treatment more easily
Regional Integration within the Euromed
Partnership

• Trade facilitation? Actual cost of trade
  procedures 5 of transactions? Action Plan on
  Trade and Investment Facilitation
  Simplification of customs procedures Accele
  rated customs clearance Use of the Harmonized
  System and international standards

11
13
Convergence of legislation in the field of
standards? Identification of priority
sectors? Approximation of EU rules and
standards? EU-funded technical assistance and
training programs Euromed Market and Euromed
Quality
Regional Integration within the Euromed
Partnership

• Liberalization of services and investment Core
  principles? Compatibility with WTO rules?
  Regional integration? Development dimension

12
14
Liberalization of services and establishment?
Bilateral negotiations? Transparency and
regional cooperation? Expected to be concluded
by 2010
On-Going Negotiations within the Euromed
Partnership Towards a Euromed Free Trade Area

• Integrated dispute settlement mechanism?
  Bilateral negotiations with regional
  consultations ? Dispute settlement protocols to
  efficiently settle trade disputes arising under
  the Association Agreements? Greatly inspired
  from the WTO Dispute Settlement Understanding

13
15
Deepening agriculture liberalization The Rabat
Euromed Roadmap for Agriculture? Negotiations
with Egypt, Israel and Morocco? Liberalization
of agricultural, processed and fisheries products
On-Going Negotiations within the Euromed
Partnership Towards a Euromed Free Trade Area

• Regulatory convergence on industrial products?
  Negotiations of an agreement on conformity
  assessment and accreditation? Further
  implementation of EU legislation and standards

14
16
Future Steps towards a Euromed Free Trade Area

• The 6th Euromed Ministerial Conference Lisbon,
  21/10/2207? Confirmation of the overall
  objective establishment of a Euromed Free
  Trade Area by 2010 ? Senior Officials Working
  Group to consider Non-tariff
  barriers Intellectual property
  rights Competition Public procurement?
  Important contributions of the business
  community first meeting to take place in
  Egypt in early 2008

15
17
Towards Greater Regional Integration

• The European Neighborhood Policy (ENP)? EUs
  framework for its relations with Mediterranean
  and East European partners (Maghreb, Mashrek,
  Israel, Ukraine and Moldova)? Country-specifi
  c action plans

• The Greater Arab Free Trade Area (GAFTA)
  ? Participate to the establishment of a Common
  Arab Market

• Free trade agreement between Egypt and EFTA states

16