The Arab countries of the southern Mediterranean rim have long
suffered from economic stagnation and an increasing marginalization in
the global economy. Deeper economic integration with the enlarged
European Union - accounting for a quarter of global GDP and foreign
direct investment - could become a main driver for economic development
in the southern Mediterranean countries. The planned Euro-Mediterranean
free trade area for goods is a first step into that direction, but
additional measures are needed to translate geographic proximity into
economic growth; especially, the removal of non-tariff barriers, the
liberalization of services trade, and comprehensive behind-the-border
policy reforms. The European Neighborhood Policy, launched in 2003,
could provide an appropriate policy framework for an integration
strategy between the EU and its southern periphery.
This title analyzes the adjustment needs and policy options
associated with deeper integration between the two sides of the
Mediterranean Sea. It puts specific emphasis on the dynamics of deeper
integration at the company level, including issues such as outward
processing trade, supply-chain integration, and the outsourcing of
back-office functions. In addition to a general discussion of deeper
integration and trade in services liberalization, the title also
contains a detailed assessment of individual sectors - especially the
backbone services (e.g. transport, telecommunication, financial
markets, electricity) and other markets of particular relevance for
deeper integration (e.g. tourism, IT-enabled services, distribution
services). Even though the main focus is on regional integration, the
title also factors multilateral liberalization issues into its analysis
(e.g. the GATS, the WTO Doha Round) as well as options for the pursuit
of an open regionalism.
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