Luxembourg, 20/03/2002 (Agence Europe) - At the Euro-Mediterranean Trade Ministers meeting in Toledo that finished on Tuesday (see EUROPE 20 March page 10), the Statistical Office of the European Communities published a dossier that provides an update on the development of trade in goods and services between the EU and its Mediterranean partner countries (MPCs): Algeria, the Palestinian Authority, Cyprus, Egypt, Israel, Jordan, the Lebanon, Malta, Morocco, Syria, Tunisia and Turkey. The publication also indicates the most active trading countries, as well as those developing or receiving EU investments.
According to Eurostat figures for 2000, almost half of total MPC trade (imports and exports) as done with the EU. After the EU, the USA was these countries' second largest trading partner, accounting for 14% of their trade. In 2001, 7.1% of total extra-EU trade was conducted with MPCs. Of all the countries in the MPC group, it is the Maghreb countries (Algeria, Morocco and Tunisia) which trade most with the EU. In 2000, trade with the EU accounted for 61.2%, 64.5% and 75.0% of these countries' total trade respectively. Jordan and the Palestinian Authority are the two MPCs that trade the least with the EU. In 1999 only 0.4% of Palestinian exports went to the EU (15.4% for imports). In the case of Jordan, the figures were 3.3% for exports and 33.0% for imports in 2000. In the same year, Egypt and Israel conducted about 36% of their trade with the EU. Lastly, the EU accounted for 44% of Lebanese trade and about half of the total trade of each of the other MPC members (Cyprus, Malta, Syria and Turkey).
Between 1995 and 2001 EU imports from the MPC grew by 110% (compared with +87% for total extra-EU imports). Strong growth in imports was recorded not only for energy products (+120%), but also for non-energy goods (+105%). EU exports to the MPC, on the other hand, rose by 49% (compared with +70% for total extra-EU exports). Turkey, Israel and Algeria were the three most important MPC trading partners for the EU in 2001. Together, they accounted for more than 60% of total EU-MPC trade. Among the Member States, Germany, France and Italy are traditionally the main partners for the MPC. They accounted for 60% of total EU-MPC trade in 2001. MPC trade with the EU is dominated by three groups of products: energy (oil, gas), manufactured goods (leather, yarn, textiles, clothing, footwear, furniture) and machinery and transport equipment. In 2000 trade in these three groups accounted for more than three-quarters of total trade. The EU's biggest trade surplus was for machinery and transport equipment (+27.9 billion euro), while the EU was in deficit for manufactured goods (-6.9 billion) and energy (-14.4 billion).
Since 1993, the EU current account balance with the MPC (excluding Cyprus, Malta and Israel) has been in surplus. While trade in goods has always showed a surplus, trade in services has traditionally been in deficit. Between 1995 and 2000 EU trade in services with the MPC grew by just over 60%, compared with 74% for total extra-EU trade in services. Since 1992 the services balance has been characterised by a deficit in Transportation services and in Travel services (due to EU tourism in the MPC), while Other services (Communication services, Construction services, Computer and Information services, Financial services) were in surplus.
The evolution of EU FDI (Foreign Direct Investment) during the 1990s shows an increasing importance of the Mediterranean region for EU investors. EU assets in the MPC (excluding Cyprus and Malta) rose by an average annual rate of 19% between 1994 and 1999, reaching 14 bn euro at the end of the period. Over the same period total EU assets held in other countries grew on average by 22% per year. The major increase in EU FDI in the MPC began in 1998 and - pushed by sizeable investments in Turkey and Egypt - reached record levels in 2000.
In terms of stocks accumulated, there are clear differences between Member States in the destination of their investments. At the end of 1999, France was the main EU investor in the MPC, with two-thirds of its assets invested in Maghrebian countries. The other larger investors, the UK and the Netherlands, held around half of their MPC investments in the Mashrek countries, while Germany held the same proportion in Turkey.