Promoting intra-regional trade in the south of the Mediterranean

Despite the recent narrative of trade protectionism, free and open trade is accepted as the right means to promoting growth and prosperity. And regional trade integration is the first step to opening markets and benefiting in terms of welfare.

We show that trade integration in the south of the Mediterranean (MED) is still very low and incomplete. There are important economies of scale and diversification opportunities that remain largely unexploited. At the same time there are several trade agreements, some say too many, but they have not been able to create the necessary conditions for trade to ultimately develop. However, none of the existing economies of scale or necessary conditions for trade can be created before peace, political stability and economic security are re-established.

There is a clear role that Europe could play here. European countries have been actively involved in the region, but the next step in promoting the region’s development will rely on (more) coordinated action. This will be necessary for promoting intra-regional trade.

See full blog post here. (presented at MED2018, Rome)