We want to say, At last! To re-launch the Euro-Mediterranean partnership project, Europe is at last in reality, and not just in rhetoric, moving towards ways which might work. Next week, we will celebrate the tenth anniversary of the Barcelona Process, the results of which have been rather modest, and certainly insufficient. In the past, there have been plenty of ceremonies, re-launch projects and speeches full of good intentions, but they have all shared the same fate: they have come to nothing, or virtually. Today things are more encouraging. Instead of holding up sparkling developments, as fantastical as they are unrealistic (Morocco joining the EU, a sort of enlarged Schengen system that allows free movement of people on either side of the Mediterranean, a free trade area by 2010), the European authorities seem to be concentrating on objectives that are reasonable, and therefore possible.
Freedom of trade backed up with accompanying measures. In my view, the most significant is the proposal from the Commission, accepted by the Council, to open discussions with non-Member Mediterranean States on the progressive and reciprocal liberalisation of agricultural trade. I have often expressed reservations and doubts about free trade in agriculture, and I haven't changed my opinion about a pure and simple opening of borders in this sector. But this time the project is radically different: not the opening erga omnes under WTO rules (which would mean the end of agricultural activity in Europe and axing imports from poor countries) but a regional agreement under which freedom of trade will be linked to “accompanying measures” with a view to the long term overall integration of Euro-Mediterranean agriculture (see our bulletin no. 9069). This clearly means that progressive removal of Customs duties and other obstacles to trade will be accompanied by common rules covering health and environmental standards, respect for protected denominations of origin etc., and will be made possible by cooperation and technical assistance measures especially in health and phytosanitary sectors and by a regional cooperation programme in rural development. These different aspects cannot be separated. The investment required will be facilitated by the FEMIP (Euro-Mediterranean Investment Facility set up by the European Investment Bank) and by a regulatory framework (still to be negotiated) to encourage private investment. Free trade with be reciprocal but with asymmetrical timetables. At the end of the day, the EU will have strengthened its “preferences” in favour of the countries on the other side, and these countries in turn will give European products preference. Provision has been made for “Limited lists” of products to be excluded from this liberalisation. WTO rules allow this, provided that the “main part”, generally interpreted as anything above 80%, of the trade is free. The timetable for the removal of tariffs on industrial products is already known.
Necessary condition. Several conditions have to be met for the project to become reality, the most important of which being that the Mediterranean countries involved (Algeria, Morocco, Tunisia, Egypt, Lebanon, Jordan, Israel and the Palestinian territories) want and are able to put in place a similar free trade system among themselves. If not, a free trade area cannot exist, because international rules presuppose that trade is free between all participating countries. This is also a condition for investment, because no European industrialist will invest in far-reaching projects in such a limited market as a single country from the list quoted. The countries involved have to be aware of this.
This project will break the present pernicious cycle of the “agricultural appointments”, which allow for periodic, though at different times, easing of conditions governing access to the European market for products from partner countries and regularly cause conflict and misunderstanding since a number of EU countries are not able to accept selective concessions for certain products outside of an overall framework containing common rules.
I have emphasised the agricultural aspect because, if it comes to pass, it will be the most efficient, given both its direct effects (on the farmers in the countries involved) and also its indirect effects, since it will allow progress to be made on other projects in the industrial sector, such as mixed origins and regional processing traffic (in the textile sector and perhaps elsewhere). And this without minimising the importance of more political and more general aspects which the European Parliament stressed (in its resolution of 27 October last) and to which I shall return tomorrow. (FR)