COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 23.09.1998 
COM(1998) 538 final 
COMMUNICATION FROM THE COMMISSION 
ON THE EURO-MEDITERRANEAN PARTNERSHIP 
AND THE SINGLE MARKET 

COMMUNICATION ON THE EURO-MEDITERRANEAN PARTNERSHIP AND 
THE SINGLE MARKET 
I. INTRODUCTION 
Relations between the European Union (EU) and its Mediterranean partners1 entered a 
"new phase aller the adoption of the final Declaration of the Barcelona Conference on 
27-28 November 1995.2 The parties agreed on the objectives of their future partnership 
and committed themselves to achieving these objectives through: a) strengthened 
political dialogue on a regular basis, b) the development of economic and financial 
cooperation, and c) greater emphasis on the social, cultural and human dimension. 
The aim of the economic and financial partnership is the creation of an area of shared 
prosperity. Taking into account the different degrees of development, the economic and 
financial partnership will be based on: 
- the progressive establishment of a free trade area in goods and the progressive 
liberalisation of trade in services; 
- the implementation of appropriate economic cooperation and concerted action in the 
relevant areas; 
- a substantial increase in the European Union's financial assistance to its partners. This 
approach was confirmed by the second Euro-Mediterranean Conference in Malta on 
15 and 16 April 1997. 
In its Communication Agenda 2000 For a Stronger and Wider Union 3 the Commission 
stressed that active measures will have to be taken to reinforce links between the Union 
and its Mediterranean partners. It went on to say that the stable development of the 
southern Mediterranean rim is a challenge of ever increasing proportions and that the 
potential of the Barcelona process will have to be fully exploited to that end. 
Furthermore, the Commission stressed that enlargement of the Union should lead to an 
intensification of economic and trade relations between the European Union and its 
southern partners, based on the pursuit of mutual interest. The Commission has thus 
given a clear signal that enlargement to the East will not take place at the expense of 
relations with the European Union's southern partners. 
1 Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Syria, Tunisia, Turkey, Palestinian 
Authority. 
2 Final Declaration and Work Programme, Barcelona Euro-Mediterranean Conference (27-28 November 
1995). 
3 COM (97) 2000. 
-2 -3-
H. PURPOSE OF THE COMMUNICATION 
This Communication aims to explore ways of integrating the objectives of the 
Barcelona Declaration and a number of specific areas of Single Market 
achievements with a view to accelerating the creation of an area of shared 
prosperity. 
The Barcelona Declaration and the conclusions of the Malta Ministerial Meeting provide 
the basis for the identification jointly by the European Union and its Mediterranean 
partners of actions which will enhance the benefits accruing to all concerned of the 
gradual establishment of the Euro-Mediterranean Free Trade Area. The experience gained 
when setting up the European Single Market will be highly useful in this respect. 
The Euro-Mediterranean Association Agreements provide for the possibility of taking 
further measures, by mutual agreement, to develop the partnership. This Communication 
outlines a number of areas where the Commission considers that action can most usefully 
be taken. The proposals contained in this Communication will come into effect only once 
the necessary political choices have been made to conclude negotiations for the 
Association Agreements. The priorities and timetable for actions will have to be agreed 
between the European Union and its Mediterranean partners. 
HI- THE FREE TRADE AREA 
The free trade area in goods and the progressive liberalisation of trade in services 
between the parties will form an important instrument, together with the support given to 
specific actions through MEDA, in achieving an area of shared prosperity based on 
sustainable and balanced economic and social development. The parties have set the year 
2010 as the target date for the gradual establishment of this area, which will cover most 
trade with due observance of the obligations resulting from the Work! Trade Organisation 
(WTO) and with due respect to environmental commitments. 
For this purpose, new Euro-Mediterranean Association Agreements, which include the 
establishment of a free trade area in goods and progressive liberalisation of trade in 
services, are being negotiated with the partners.. Some agreements have already been 
concluded and negotiations are weft underway with others.4 Free trade agreements 
between the Mediterranean partners themselves are for the most part still to be 
negotiated. 
Increasing regional and sub-regional cooperation is a prerequisite for attaining the 
objectives set out in the Barcelona Declaration. 
The European Single Market itself goes much further then a free trade area, The Single 
Market is the fruit, of economic integration between the Member States of the Union 
brought about by the Single Market programme of legislation which aimed to remove 
barriers to trade. 
Creating a Euro-Mediterranean free trade area does not amount to creating a Single 
Market between, the Mediterranean partners. However, the European Single Market has 
4 State of EU-MED Association Agreements-in Annex I. 
-4-
demonstrated the benefits which can be derived from free trade between open markets: 
economics of scale in production, rationalisation of production, increased efficiency and 
price reduction as a result of increased competition. Common interests have resulted in a 
set of policies which have improved trade flows, prosperity and investment in the Union. 
Trade between the Member States represents more than 2/3 of total EU trade. Direct 
investment between Member States has increased seven times since 1987, and the size of 
the Union's Single Market and its growth potential already constitute an asset in terms of 
attracting international investment to Europe. 
As barriers to trade are dismantled, experience gained while establishing the Single 
Market shows, not only that trade flows and investment will increase, but that 
competitiveness on world markets will also improve as a result of open economies, with 
living standards rising and inequalities between the parties being reduced as a 
consequence. 
IV. SUGGESTED ACTIONS 
Goods and services will move freely in the Euro-Mediterranean area if there is greater 
harmonisation of rules and regulations. During the Malta Conference the parties stressed 
the importance of adding a "South - South" horizontal approach which would permit 
greater harmonisation and greater compatibility with the Union's internal market. 
The emphasis should be placed on issues of mutual interest. It is suggested using the 
provisions of the Association Agreements, which provide for further action at bilateral 
level, and complementing this where appropriate by actions at multilateral level on a 
mutually agreed basis after discussion within the partnership. The aim is to reach a 
consensus or to agree on actions that are of interest to all parties or to the greatest number 
of parties. 
When selecting areas for inclusion in this Communication, the Commission took account 
of the following : 
- objectives and goals of the Barcelona Declaration; 
- areas of most interest and importance to the Mediterranean partners; 
- Single Market achievements; 
- areas where closer ties will improve trade and investment conditions; 
- disparities between the partners. 
The actions suggested apply across the sectors covered without prejudice to sectoral 
action plans already adopted by the Commission Thus, approximation of standards, rules 
and regulations in fields like customs, taxation, public procurement, competition and IPR 
will facilitate exchanges of experience between administrations and will increase the 
scope for benefiting from a free trade area. The Commission realises, however, that 
substantial assistance is needed before such approximation can be taken to its full extent. 
In many cases, institutions will have to be created. Training plays an important role in 
raising awareness of Single Market legislation, especially in the areas of customs and 
taxation, public procurement, competition, IPR and accounting To that end, exchanges 
of experts and the participation of the Mediterranean partners in Commission 
-5-
programmes could be highly beneficial in areas such as IPR, financial services and data 
protection. Technical assistance is offered by the Commission in a number of those areas 
(customs matters and taxation, public procurement, competition, IPR, data protection, 
accounting and auditing). 
The most effective way of proceeding in most cases will be for experts from all members 
of the partnership to meet in each of the sectors concerned to agree on a series of overall 
objectives. Once this has been done, implementation of the activities, mainly at bilateral 
but also at regional level, can take place within the framework of the procedures 
governing the Euro-Mediterranean partnership. The Commission is ready to provide the 
necessary technical assistance, training and exchange of experience to achieve the 
mutually agreed objectives. 
Only by cooperating will it be possible to achieve the objective of the Barcelona 
Declaration of an area of shared prosperity. The Commission is ready to play its part and 
to share the experience gained in establishing the Single Market. This commitment 
extends to preparations for the future development of the European Union. 
The Commission considers that these activities will not only enhance the benefits of free 
trade between the Union and the partners5 but also will lead to an increase in South-South 
cooperation and thus raise the level of intra-regional trade (currently no higher than 5% 
of the partners' total trade flows). 
V. SMEs 
The economies of the Mediterranean partners are, to a large extent, built on SMEs. It is 
important that a proper and adequate structure is agreed on to further the objectives of the 
Barcelona Declaration for SMEs. Such a structure needs to be accompanied by measures 
that contribute to their survival and growth. This would not only increase flows of 
investment into the economies but would also increase prosperity in the region. 
In order to achieve this, we need to ensure that the regulatory environment is conducive 
to business. Information and advisory services are important in identifying potential 
markets, for instance, as are measures to stimulate long-term cooperation between 
European and Mediterranean SMEs. The Commission is prepared to provide technical 
and legal assistance, as well as training opportunities - as the case may be - for these or 
other strategies the partners may agree upon. 
The Council meeting in Cannes in June 1995 agreed on a financial package of 
ECU 4 685 million for the new Mediterranean policy for the period 1995-99. 
ECU 3 424.5 million thereof is provided under.the MEDA Regulation which covers the 
financing of new programmes and spending related to the association agreements. 
Pursuant to the objectives and the procedures of the MEDA programme, the Commission 
has allocated 90 % of the funds to the beneficiary countries on a bilateral basis and 10% 
to horizontal or multilateral actions. 
Trade figures in Annex II. 
Multilateral actions must be open to all the partners and must concentrate on exchanges 
of experience, networking and training. Projects will include approximation of rules and 
régulations as well as technical assistance. It is important that coherence be maintained 
for actions put forward in Single Market fields and for which financing might also be 
provided via funds for bilateral projects. 
VII. AREAS COVERED BY THE COMMUNICATION 
The Communication suggests highlighting and examining possible actions in the 
following areas: 
1. Customs and taxation 
If an area of shared prosperity is to be created, customs and tax aspects must be taken into 
consideration. The Union will launch initiatives designed to consolidate factors which 
encourage trade between the two regions and, as a result, foster cooperation in the field. 
The Euro-Mediterranean Association Agreements are designed to boost cooperation with 
a view to improving trade flows between the two regions in accordance with international 
rules. Ail the agreements highlight the streamlining of customs procedures, the 
approximation of laws/standards/schemes, the use of the Single Administrative 
Document (SAD) and non-discrimination in tax matters. 
In addition, with a view to promoting regional trade, work will focus on the need to 
realign the very different tax systems of the region's countries with a view to creating 
mutually compatible systems in the medium term. This is an important factor favouring 
economic development and regional integration. 
LI A ction programme 
The key elements in the field of customs and taxation enabling an area of shared 
prosperity to be created are as follows: 
- implementation of the rules governing cumulation of origin; 
- approximation of laws/schemes/standards; 
- modernisation of customs authorities by reorganising them along the lines of the most 
efficient models to facilitate the overall economic integration of the two regions; 
- modernisation of tax administrations to improve the operation of the Mediterranean 
partners' systems of indirect taxation, particularly with a view to protecting the 
financial interests of those countries and of the European Union; 
- implementation of mutual assistance in customs matters between the various 
competent authorities of the Mediterranean partners. 
/. /. / Implementation of the rules governing cumulation of origin 
Origin rules are vital to the harmonious functioning of a free trade area. As the various 
phases of cumulation provided for in these rules (bilateral cumulation, diagonal 
cumulation and total cumulation) are gradually set up in the Euro-Mediterranean area, 
increasing economic integration will occur between the various Mediterranean countries 
themselves and between those countries and the Community. The Mediterranean 
partners have already expressed an interest in benefiting from cumulation of origin with a 
view to encouraging regional cooperation. 
The industrialisation of these countries will be given a new boost and the fact that the 
rules of origin are the same, thus allowing diagonal and total cumulation, will be a 
primary factor favouring the development of trade between the parties and access to the 
Community market. 
In recent years the Community has begun a process of simplifying and harmonising the 
rules of origin which it applies in free trade agreements signed with its partners with a 
view to facilitating trade and streamlining procedures. A single text now applies to the 
EFTA countries, the CEECs, the Baltic States, etc. The Community has put forward this 
single text as a protocol to the agreements it is currently negotiating with its 
Mediterranean partners. 
Since the first half of 1996, the Commission has presented these rules at three meetings 
of all the Mediterranean partners. They are attached as a protocol to the agreements 
signed with the PLO for the benefit of the Palestinian Authority and Jordan. The 
Commission acknowledges the importance which its Mediterranean partners attach to 
origin cumulation, and recently adopted a communication entitled "Euro-Mediterranean 
cumulation of origin". 
In the light of the experience acquired in previous negotiations of a comparable 
importance, the Commission regards it as necessary not just to offer its partners the 
chance to benefit from technical assistance and training initiatives, but also to organise 
regular meetings of experts in rules of origin from the Member States and the 
Mediterranean partners at which common problems, the conditions of implementation of 
the rules of origin, their future development and the necessary improvements can be 
discussed. Information initiatives targeted on business circles will also be organised. 
1.2.1 Approximation of laws/schemes/standards 
Even if the free trade area does not require this approximation in order to facilitate trade, 
the two regions have every interest in ensuring that approximation of customs and tax 
procedures takes place as far as is practicable. Customs and tax cooperation can focus on 
measures affecting factors which enable greater approximation and greater compatibility 
with the Union's single market. 
The approximation of customs legislation between the Mediterranean partners and the 
European Community is a key element of the Euro-Mediterranean agreements. The 
following initiatives may be envisaged: 
- embarking on the adaptation and approximation of legislation in fields such as the 
Customs Code, the combined nomenclature based on the harmonised system, the SAD 
and customs procedures; 
- simplifying customs procedures: use of the SAD by all Mediterranean partners; 
- facilitating the interconnection of all operators involved in foreign trade transactions 
by applying an integrated data transmission system based on EDIFACT in accordance 
with the international standards ISO 6422 and ISO 7372; 
- facilitating implementation of the principles of transparency, neutrality and 
non-discrimination in the field of taxation. 
The principle of non-discrimination does not entail an obligation for the Mediterranean 
partners to apply exactly the same rules as Community operators. However, it would 
facilitate trade if the standards applicable by the Mediterranean partners and the European 
Union in respect of taxpayer identification, tax returns or payment of indirect taxes were 
compatible; 
- Modernising tax systems by promoting the adoption of rules guaranteeing neutrality in 
trade while also complying with the budget requirements of the Mediterranean 
partners, in particular by improving tax collection. 
Experience acquired within the Community suggests that legislation will have to be 
drawn up on turnover taxes which do not distort the conditions of competition or raise 
barriers to free movement of goods between the different countries if these objectives are 
to be achieved. Convergence of the Mediterranean partners' tax systems towards a model 
which ensures sound financing and contributes to regional integration would have a 
positive impact. A degree of harmonisation of legislation on turnover taxes could result 
in the abolition of cascading cumulative taxes and the adoption by all countries of a 
value-added-tax system which is simple, sound, effective and broadly applicable. 
1.1.3 Modernisation of customs authorities 
International trade will be facilitated if customs authorities are modernised by aligning 
them on the most efficient models. Infrastructure and equipment will have to be taken 
into account. The different tax authorities must be provided with the necessary resources 
to ensure that customs procedures are implemented correctly and swiftly. 
To that end, aid may be required for equipment (logistics necessary for smooth customs 
administration and detection/monitoring equipment) and for information technology. 
1.1.4 Modernisation of tax authorities 
With a view to improving the operation of the Mediterranean partners' indirect taxation 
systems, a Community initiative should be devised to back up the work carried out by the 
partner countries to: 
-9-
- improve understanding of tax law, particularly in the indirect taxation field, and of its 
implementation; 
- ensure efficient, effective and wide-ranging cooperation between those countries on 
the one hand and between those countries and the Commission or the Member States 
on the other; 
- ensure the ongoing improvement of administrative procedures to take account of the 
needs of authorities and taxpayers by devising and generalising good administrative 
practice. 
1.1.5 Implementation of mutual assistance in the customs field between the various 
competent authorities of the Mediterranean partners and the European Union 
A protocol is attached to all the Euro-Mediterranean Agreements providing for mutual 
assistance in the customs field between competent authorities. These provisions 
constitute a legal basis whereby administrative assistance can be requested and provided 
in connection with investigations into fraud or irregularities in the customs field, in so far 
as the other partner has useful information for the case in question. Investigation and/or 
information exchange techniques could be included in the areas Covered by technical 
assistance if required. 
1.2 Establishment of strategy 
The instruments for putting this action programme into practice are technical assistance 
and training. The Commission may also consider holding sectoral, thematic or political 
conferences. 
(a) Technical assistance will help the Mediterranean partners to realign their customs 
and tax legislation with one another and with the European Union and to simplify 
customs and tax procedures and bring them into line with standard international 
practice. The aim is to facilitate trade and to remove technical and non-technical 
barriers to international trade. What is envisaged are programmes whose chief 
component will be the expertise of European customs and tax officials. 
(b) Training will be designed to increase awareness of the new legislation, for which 
technical assistance will have been provided, and to put it into practice. This 
instrument will also be used to improve regional cooperation between the 
Mediterranean partners and to foster communication between the various customs 
and tax authorities. Training programmes for instructors will be held with 
participants from the customs schools of the various customs and tax authorities, 
the aim being to train lecturers whose task will be to train customs and tax 
officials in each country. 
(c) Conferences within the framework of the Euro-Mediterranean partnership. The 
Communication envisages organising conferences with the aim of enabling senior 
officials from the European Union and from the Mediterranean countries to hold 
exchanges of views on initiatives and of encouraging exchanges of information. 
The economic significance of these conferences will lie in their trade-boosting 
potential. 
•10-
In similar vein, meetings between Directors-General in the customs and tax fields may be 
envisaged with a view to fostering closer ties and raising the profile of cooperation and 
the integration of the "Mediterranean economic area". 
2. Free movement of goods 
Free movement of goods means movement free from tariff and non-tariff barriers 
throughout the Euro-Mediterranean Area. To achieve this without reneging on 
environmental commitments, quantitative restrictions and discriminatory national 
legislation which result in protecting national markets or in closing them to competition 
of imported products must be abolished. 
2.1. Substance of initiatives 
Quantitative restrictions are not the only barriers which must be abolished if the markets 
of the Euro-Mediterranean partners are to be opened up. Non-tariff barriers to trade 
include all discriminatory measures against imported products and can take different 
forms. The effect of these measures is to make imports more difficult or more costly. In 
particular, differing technical rules, standards and conformity assessment procedures 
often create unnecessary barriers to trade which are not always justified by safety and 
consumer protection requirements. 
Efforts towards abolition of trade barriers have to be structured and continuous, because a 
large number of administrations are concerned (several national administrations are 
involved with the application of trade rules). Likewise, a series of regulations have an 
effect on trade (commercial regulations, regulations aiming to protect consumer health, to 
protect the environment, etc.). 
2.2. Establishment of strategy 
Administrative cooperation is an essential working tool for the effective operation of a 
free trade area and the dialogue and cooperation enhanced by the Euro-Mediterranean 
partnership offers the right conceptual framework for the process of opening up markets. 
Facilitating bilateral and other contacts between administrations would help resolve 
difficulties concerning trade in products, especially in the Euro-Mediterranean context 
where significant differences exist between partners, both in organisational structure and 
in operational practice. In particular, efforts could be deployed to identify regulatory areas 
where some kind of legislative approximation and harmonisation of procedures should be 
attempted. Furthermore, the prompt exchange of information in case of difficulties 
concerning free trade of goods should assist in avoiding recourse to restrictive measures 
or in clarifying the situation for the authorities concerned. 
The Commission suggests therefore that an overall framework be set up enabling 
co-ordination and dialogue between partners at bilateral and multilateral levels. It would 
be based on the following basic principles: 
- solutions to problems must be shared among all the partners to maximise the benefits 
of the free trade area; 
- mutual assistance and transparency (cooperation systems require that the responsible 
authorities throughout the area are known to the partners); 
-11 
- setting-up of non-bureaucratic cooperation systems providing tangible benefits (to be 
effective, mutual assistance implies that the practice of administrative cooperation 
must be tailored to what is reasonable, i.e. that authorities limit their demands on each 
other to what is essential to the task in hand). 
Implementation of an administrative cooperation policy should start with the setting up of 
a network of central contact points which will make cooperation easier, especially when 
the responsibility for trade issues between partners is decentralised or shared. 
Cooperation may also be strengthened by exchanges of civil servants, training activities 
at the Commission departments in charge of free trade issues or others. 
3. Public procurement 
In all the Mediterranean partners the public sector plays a vital role in the economy. 
Public procurement decisions therefore have a major impact on the economy as a whole 
and are sometimes of vital importance to individual suppliers. 
In the context of an integrated economic area, an effective public procurement policy is 
thus fundamental to success in achieving its objectives: to generate sustainable, long-term 
growth and create jobs, to foster the development of business capable of exploiting the 
opportunities generated by such an integrated area and to ensure competitiveness in 
global markets, and to provide taxpayers and users of public services with best value for 
money. In order to achieve efficiency in public procurement, the key is to ensure 
competition between suppliers by offering them equal chances to win a bid. 
3.1 Substance of initiatives 
The key elements to achieve an area of shared prosperity in the field of public 
procurement are: 
- the application of economically effective procurement rules and practices, as well as 
the development of an effective framework for implementation and enforcement of the 
policy; 
- the approximation of laws, as well as the alignment of practices in the area concerned; 
- the reciprocal and gradual liberalisation of cross-border exchanges in this field; 
- cooperation and mutual assistance between the different administrations concerned. 
3.1.1 Implementation and enforcement 
The key to achieving efficiency is to ensure competition between suppliers. In practice, 
such competition is made possible by offering equal chances to all suppliers to win a bid. 
It is important to note that this does not necessarily mean that traditional suppliers will be 
replaced by new ones. Only that all suppliers, including traditional ones, need to come up 
with competitive offers (value for money) in order to be able to win a contract. Firstly, 
this ensures transparency (announcing purchasing opportunities publicly, indicating 
clearly what the government entity intends to buy and the requirements which need to be 
met, setting appropriate time-limits between the publication and the award of the 
contracts). Secondly, real competition requires openness (e.g. that technical requirements 
are not defined so as to fit only the products/services of one company). Thirdly, 
-12-
infringements of these rules could be addressed through an appropriate enforcement 
structure (inter alia checks and arbitration), and aggrieved bidders must, in any event, be 
able to challenge any unlawful decisions before a national body. 
While it is essential that an effective legislative framework should be in place, it is 
equally important that the rules are correctly applied and that practices respect the legal 
environment. Open and transparent procurement not only provides suppliers with 
increased opportunities, but contributes strongly to their increased confidence in the 
reliability of the administration as a business partner. It also has wider ramifications, by 
promoting confidence in the country's overall commercial legal framework. In this 
regard, it is important that an effective framework for implementation and enforcement of 
the policy is developed. Experience suggests that specialised independent authorities 
entrusted with monitoring powers could play a key role in improving procurement 
systems. They could provide useful advice to contracting entities and check procurement 
practices to promote efficiency. Moreover, the very existence of such an authority may 
prevent behaviour giving rise to complaints, thereby reducing the potential burden on 
national courts and tribunals. Such authorities might also, in some cases, handle 
complaints. 
3.1.2 Approximation of laws and alignment of practices 
In order to gain the full benefits of a large integrated area, it is important to ensure that a 
certain degree of harmonisation is in place. This will favour the predictability of rules and 
practices, in particular for suppliers. Furthermore, the application of similar structures 
will facilitate the exchange of experiences between administrations. In this regard, it will 
be important to avoid over-regulation in this particular sector. 
This process should lead to the adoption of harmonised rules based on transparency, 
openness, including the possibility of challenging unlawful decisions, along the lines of 
the international recognised models, such as the WTO Agreement on Government 
Procurement. In this context, it is important that all Mediterranean partners effectively 
take part in the relevant processes linked to public procurement in the WTO and other 
international fora. 
3.1.3 Reciprocal and gradual liberalisation of cross-border exchanges in this field 
The Euro-Mediterranean agreements already provide for reciprocal and gradual 
liberalisation of exchanges in the field of public procurement. In this context, national 
treatment is a desirable objective aiming to achieve reciprocal market access.6 
This reciprocal and gradual liberalisation of exchanges could be achieved in stages, 
possibly allowing for less developed economies to prepare themselves for competing on 
equal grounds. In this context, the possibility of asymmetric liberalisation during a 
predetermined transitional period could be explored. Experiments of this type have 
already taken place in the context of the EU's associations with some countries of Central 
It should be noted that the EC and Israel have, within the context of the WTO Agreement on 
Government Procurement, concluded an Agreement on further liberalisation. Turkey has an observer 
status in this agreement. 
•13-
and Eastern Europe. This gradual approach takes account of the specific needs of some of 
the Mediterranean partners to adapt to a more competitive environment. 
3.1.4 Cooperation and mutual assistance between the different administrations 
concerned 
An optimal procurement policy demands a real awareness of what procurement of the 
highest commercial standard actually entails. Exchange of information, data and 
experiences between the different administrations concerned could be useful for the 
effective functioning of the system. A further step forward could be the establishment of 
telematic links between administrations. For instance, some programmes in the 
Community are specifically devoted to increasing transparency in public procurement. 
The Mediterranean partners might be interested in participating in these programmes. 
In addition, steps need to be taken to stimulate the training of procurement officers in the 
new and evolving skills they need and to help them to better understand the new role they 
are called upon to play. The interests of the Mediterranean partners are focused on 
effective purchasing methods that could help the public sectors in these countries to 
reduce public expenditure, while obtaining best value for money. Rules should be a 
means to the end of competitive and efficient purchasing, rather than an end in 
themselves. If these objectives are to be met, it is essential to ensure that the rules 
regulate entities' behaviour without hindering best practice on a day-to-day basis. 
Improving the development of a professional public administration could certainly to 
improve the functioning of the system. Public administrations need to be able to carry out 
procurement procedures, to draft tender documentation or information notices, to assess 
bids and manage contracts. Practice is much more than just applying the rules. 
Improving management methods in public administration is, however, only one side of 
the coin in public procurement practice. Active participation of bidders is also important 
if best practice is to be achieved. Terms of reference can be perfectly drafted, however a 
good tender should be presented. Hence, in order to achieve efficient purchasing, the 
quality of the private-sector response to public-administration action needs to be 
improved. 
3.2 Establishment of strategy 
The instruments for implementing this work programme are: 
- technical and legal assistance; 
- training; 
- extension of Community programmes; 
- cooperation between administrations. 
The Commission will provide technical and legal assistance in the field of public 
procurement to other Mediterranean partners on request. Such assistance could facilitate 
the approximation of legislation and practices, in particular with regard to existing 
international standards. 
-14-
Moreover, technical assistance could be provided for training and improvement of public 
administration. The development of a programme to spread training throughout the 
Euro-Mediterranean Area could be envisaged; it would need to focus on best 
procurement practice. The purpose of this initiative is to disseminate to all levels of the 
public sector the methods and mechanisms which could help achieve effective 
purchasing, in this sense, it goes beyond mere training on compliance with the rules. The 
programme would also need to be extended to prospective bidders, so as to improve their 
capacity to respond to the needs of the purchasing entities. 
The Commission encourages the participation of the Mediterranean partners in its 
programmes aiming to improve the public procurement regime in the EC, particularly in 
programmes such as the CPV or SIMAP (information technology). 
Finally, general cooperation and contacts between administrations should be established. 
This should imply an annual structured dialogue at an appropriate level allowing all 
countries involved to address issues of common interest, including liberalisation. 
4- Intellectual Property Rights (IPR) 
A large number of goods and services rely heavily on intellectual and industrial property 
protection. A meaningful and comparable level of intellectual and industrial property 
protection across the entire area is therefore necessary. This would: 
- promote trade flows within the Euro-Mediterranean area and investment opportunities 
across the area; 
- favour the modernisation and competitiveness of the Mediterranean partners' industry 
and enhance cooperation; 
- reduce piracy and counterfeiting; 
- promote cultural activities, which, to a high degree, depend upon effective IPR 
protection. 
4.1 Substance of initiatives 
4.1.1 General policy line 
Further efforts should be made to agree on a more comparable level of 
intellectual property protection. Any effort to achieve greater harmonisation in this sector 
will help significantly in achieving the final aim of a free trade area. Therefore the 
strategy should be to further develop the existing Association Agreements and to aim at 
approximation of laws (with appropriate exceptions), in the area of intellectual property 
rights (EPR). This would lead to greater coherence in IPR protection across the entire 
area, which will give rise to real mutual benefits. 
4.1.2 Key problems to tackle 
Apart from the general objective of achieving an appropriate level of IPR, the area which 
deserves particular attention is counterfeiting and piracy, both in the "copyright" area ( 
notably with respect to phonograms, cassettes, CDs, software) and in the area of 
Industrial Property (such as counterfeits of trade marks, patents). Another major area of 
concern is the non-patentability of certain products (notably pharmaceuticals). These 
-15-
problems should be given special attention when defining more closely the IPR strategy 
within the free trade area. 
4.1.3 Meaningful IPR provisions and enforcement need to be ensured 
The objective of ensuring meaningful IPR provisions should be pursued through the 
following: 
- Without prejudice to rights and obligations under the WTO TRIPs Agreement, the 
Mediterranean .partners will provide for improved levels of intellectual property 
protection, including the means to enforce the rights, so as to move towards closer 
approximation between the 27 partners. The EU will provide all necessary assistance. 
- As far as accession to multilateral conventions is concerned, the lists set out in the 
Association Agreements will serve as a good basis for closer approximation. These 
lists will need to be reviewed and updated as appropriate on a mutually agreed basis. 
- Given that in certain fields the present situation with regard to piracy and 
counterfeiting is very serious, the EU, in cooperation with the Mediterranean partners, 
will have to use all appropriate measures to deal with on-going infringements. 
4.2 Establishment of strategy 
In order to attain the objectives, as is well-established practice in the context of 
Association/Cooperation agreements, the Commission should provide for sound and 
efficient technical assistance and training. This will be done inter alia by means of: 
- exchange of experts; 
- seminars; 
- early mutual information on relevant legislation; 
- training activities for administrative and customs personnel, as well as judges. 
The Commission is ready to provide assistance for institution building where necessary. 
5. Financial Services 
5.1 Substance of initiatives 
The main task is to lay down mutually agreed liberalisation steps to encourage increased 
trade in financial services between the EU and its Mediterranean partners. However, 
given the substantial differences in political and economic development between the 
partners, it will., at least in the initial phase, have to be carried out on a bilateral or 
grouped basis between two or more partners with similar levels of economic 
development and with roughly equivalent financial market maturity. 
A key factor for the development of trade in financial services is the setting-up of an 
adequate regulatory framework as a necessary prerequisite for mutual trust and 
cooperation. The objective will be to strengthen prudential regulations and supervision 
with a view to establishing a sound regulatory framework. The incorporation of sound 
financial services regulation will also facilitate the gradual move to full capital account 
-16-
convertibility in the Mediterranean partners that is embodied in the Association 
Agreements. 
When drafting laws and regulations for the financial sector it is important to have the 
actual "know how" level of the industry in mind. Qualified supervisory bodies mean that 
the supervisory staff must be well trained but also be sufficient in number to make it 
possible to supervise or control all the authorised firms on a timely basis. Without a 
correctly functioning supervisory body, even the most advanced regulations will make no 
sense. Therefore, every effort must be made to strengthen the quality of the supervisory 
bodies so that they are able to perform their duties adequately. 
5.2 Establishment strategy 
A precondition for increased trade flows in financial services is the creation of sufficient 
supervisory standards in the Euro-Mediterranean area. 
The EU directives in the financial services area cannot serve as an immediate model for 
cooperation in the Euro-Mediterranean area. It is important to take account of the 
economic environment and history of each Mediterranean partner. 
Both politically and practically a free trade zone which does not enable the 
EU's Mediterranean partners to ensure the stability of their financial system and adequate 
protection for their consumers is likely to be a non-starter. 
It is suggested that the cooperation framework take as its point of departure the 
development of already existing Association Agreements and the GATS Agreement on 
financial services for the WTO Members without excluding cooperation between smaller 
groupings of two or more partners with similar levels of economic development. 
For that purpose, work must be carried out in three areas: 
- setting up an adequate regulatory framework for prudential supervision (technical 
assistance programmes can be developed in this respect). 
- training local supervisory authorities in financial control, and auditing, including -
possibly - modernisation of existing infrastructure (computers etc.). Training might be 
co-ordinated by the Commission but carried out by representatives of Member States' 
supervisory authorities with sufficient hands-on experience. The Commission is ready 
to provide assistance for institution building where necessary 
- increasing cooperation between supervisory authorities in the EU and in the 
Mediterranean partners to create the trust which is the basis of any exchange of 
financial services. 
6. Data protection 
The creation of the area of shared prosperity will generate a huge number of data flows 
between operators based in the Union and in the twelve Mediterranean partners, be they 
private companies or public administrations. 
In order to protect the fundamental rights of individuals, notably their right to privacy, a 
country might oppose the export of personal data concerning its citizens to another 
-17-
country that docs not have rules guaranteeing sufficient protection of the rights of 
individuals. Although such obstacles to the free flow of personal data are allowed within 
the framework of the World Trade Organisation, it is clear that they could compromise 
the aims of Euro-Mediterranean cooperation. 
6.1 Substance of initiatives 
The key measures in the data protection field will be as follows: 
- approximation of national legislation; 
- adoption of the necessary specific measures. 
6.1.1 Approximation of legislation 
By virtue of Directive 95/46/EC the transfer of personal data to third countries may only 
take place if the third country in question ensures an adequate level of protection. At 
present, none of the Mediterranean partners has legislation in force that deals with the 
protection of personal data. Therefore it is important to agree on measures that will 
guarantee 'an adequate level of protection in the partner countries, in order to prevent 
possible barriers to the transfer of personal data in the future. 
Even though the intention is not to oblige the Mediterranean partners to comply with all 
the standards laid down in Directive 95/46/EC, the adoption of the necessary measures 
will take some time. After the adoption of the first national legislative measures, the 
partner countries might be encouraged to join Convention 108 of the Council of Europe 
for the protection of individuals with regard to automatic processing of personal data. 
6.1.2 Adoption of specific measures necessary to the smooth functioning of the area 
of shared prosperity 
If an adequate general level of protection cannot be achieved by all partner countries 
within a certain number of years, it will be necessary to adopt specific measures on the 
protection of personal data with regard to certain areas. Examples of such areas are: 
mutual cooperation in customs matters between the customs administrations of the 
partner countries and the EU, mutual cooperation on tax or social security and electronic 
commerce. 
6.2 Establishment of strategy 
The instruments which will be used to put these initiatives into practice are technical 
assistance and a dialogue between each of the partners and the Commission. 
6.2.1 Technical assistance 
This technical assistance could take various forms, depending on each partner's 
requirements: 
- exchanges of experts from the national monitoring authorities for data protection; 
- exchanges of information on national legislation; 
- financial and technical assistance for the setting-up of monitoring authorities to ensure 
that legislation is implemented; 
-18-
- raising the awareness of administrations, businesses and the general public by means 
of various information programmes on the need to protect personal data; 
- help in formulating codes in various sectors. 
Technical assistance from the Member States' monitoring authorities could be required 
throughout the process. (...) 
6.2.2 Bilateral dialogues 
The issue of personal data protection has not been raised to date in the Community's 
relations with its Mediterranean partners. 
An initial approach should consist in identifying, by means of informal bilateral contacts, 
each partner's position on data protection and in determining the extent to which they are 
prepared to develop policy in this area. 
At a subsequent stage, the Commission's general mandate, under Directive 95/46/EC, to 
negotiate with countries without adequate levels of protection should be put into effect. 
7. Accounting and auditing 
Harmonisation of financial information is an important part of facilitating business 
exchanges in the Euro-Mediterranean area. In the accounting and auditing fields, a 
similar approach to that for the CEECs could be used in respect of the Mediterranean 
partners. This could include: 
- assistance and cooperation in drafting new accounting and auditing regulations; 
- training programmes for accountants and auditors; and 
- the organisation of workshops or discussion seminars. 
An active approach requires not only that the appropriate funding is provided, but also 
that the Mediterranean partners give active cooperation and support. Funds provided by 
the EU should - like the PHARE and TACIS funds - be used on an "on demand" basis. 
Projects should be put forward by the Mediterranean partners themselves to ensure their 
full participation and commitment. There should be no attempt to "impose" European 
solutions. 
The suggested approach must also take into account that there are very large differences 
in accounting and auditing traditions between the Mediterranean partners. 
8. Competition rules 
Provisions concerning competition rules are set out in agreements with the Mediterranean 
partners. They include a commitment by the partners to bring their competition rules into 
line with those of the Union. The role of the competition rules in the functioning of a 
free trade area and in the creation of an area of shared prosperity is fundamental: they 
help to ensure a climate of transparency and legal certainty for business and to make the 
local economy more competitive. 
•19-
8.1 Substance of initiatives 
8.1.1 Approximation of competition rules between the partners and 
approximation with Community competition rules 
In the course of the negotiations, the partners entered into commitments concerning the 
approximation of competition rules. If these commitments are to be fulfilled in practice, 
action will have to be taken to set up or adapt competition arrangements so as to facilitate 
alignment of practice and to ensure that arrangements function effectively. 
8.1.2 Setting-up or reinforcement of administrative resources for the authorities 
responsible for implementing competition rules 
It is important to set up or reinforce authorities responsible for ensuring compliance with 
competition rules and to provide them with the appropriate administrative resources. 
Action is necessary in this area and could be based on the operating experience acquired 
by national competition authorities in the European Union. 
8.1.3 Liberalisation of sectors of the economy 
Free trade in goods and services would not be comprehensive if a large number of sectors 
were excluded from market rules. It is in the partners'interest to ensure that competition 
rules apply to the greatest possible number of sectors of the economy. 
8.2 Establishing a strategy 
The instruments whereby this action programme will be put into practice are technical 
assistance and cooperation with competition authorities. 
8.2.1 Technical assistance 
Technical assistance in the form of seminars and conferences organised within the 
framework of the Euro-Mediterranean partnership can improve the training of officials 
and competition experts, both individually and collectively. Such assistance should also 
comprise a legal advisory service to help our partners adapt their existing competition 
rules. 
8.2.2 Cooperation through dialogue between competition authorities 
Dialogue between the competition authorities of the Mediterranean partners and those of 
the European Union could be encouraged as a means of helping our partners with the 
requisite legal and institutional reforms. Bilateral dialogue could still take place in 
specific fields where required. 
VIII. IMPLEMENTATION OF THE EURO-MEDITERRANEAN 
PARTNERSHIP 
The Commission is responsible for implementing and following up the partnership and 
has already adopted a number of proposals to that effect which are complemented by this 
Communication. It will also be able to cooperate with international agencies or 
-20-
institutions already involved in providing technical assistance to the region (such as the 
World Bank and the International Monetary Fund). 
The Commission will be backed up by working groups which either already exist or will 
be set up as required. These working groups, comprising representatives of the 27 
partners, will enable the identification of projects common to the largest possible number 
of Mediterranean partners. The members will be experts from the relevant branches of 
industry, representing each of the interested parties. 
The Commission, assisted by the experts, will specify the number of working groups 
required and their internal organisation. It will also determine appropriate and coherent 
operating arrangements for the working groups and the tasks to be vested in them. 
The working groups are to be funded by the Commission in accordance with its 
budgetary legislation and in compliance with MEDA procedures. 
The main task of the working groups will be to pursue the activities identified in the 
action programme, to identify priorities and to ensure follow-up. In practice this will 
mean: 
(a) Pursuing the activities identified in this Communication 
With a view to pursuing the activities for which it was set up, each working group will 
have to develop its own position on the following points: 
- the areas to be covered, with a view to identifying common fields of activity; 
- analysis of regional and interregional activities and the link with activities carried out 
on a bilateral basis; 
- the structures in the Member States and the Mediterranean partners which can 
facilitate the Euro-Mediterranean partnership. A list of bodies likely to make a 
positive contribution will be drawn up for that purpose. 
(b) Fixing priorities 
The working groups will have to decide what objectives and priorities to pursue. In 
particular, they will help to shape the links between multilateral awareness-raising and 
exchanges of experience on the one hand and bilateral training, technical assistance and 
advisory activities on the other: 
- priorities concerning the regional or interregional character of activities, both in the 
light of the requirements of individual countries and those which are common to 
several countries, and the links with bilateral activities; 
- priorities concerning the structure and economic situation of the specific product 
sectors. 
In addition, the working groups will have to decide whether to give priority to 
multi-regional activities which are linked to projects or action programmes effected under 
bilateral agreements. 
-21 
,(c) Helping the Commission to identify common projects, including technical 
assistance projects 
The working groups will provide the Commission will* a fn«raework for determining the 
rwjJtilaferal and bilateral activities to be carried out ow the various topics indicated in this 
(d) Establishing ongoing follow-up for activities 
The working groups will establish appropriate arrangements for following up the selected 
activities. This follow-up should be sufficiently detailed to allow the Commission to 
effectively monitor implementation of the action programme. 
IX. CONCLUSION 
The initiative set out above will enable the European Union and its Mediterranean 
Partners to further the spirit of partnership and solidarity as agreed upon in the Barcelona 
Declaration without calling into question the balanced progression of the Partnership or 
the objectives set out in the Association Agreements which have already been concluded 
or are being negotiated. 
Increased coordination in a number of areas falling within the Single Market will be an 
important step towards meeting the objective of economic and financial partnership, that 
is the creation of an area of shared prosperity. The experience of creating the European 
Single Market can be drawn on in achieving this objective. The Commission proposes 
that both the areas of cooperation and the appropriate actions be agreed on a joint basis 
by the partners. 
At this stage we suggest focusing on the fields of customs and taxation, public 
procurement, intellectual property rights, financial services, data protection, free 
movement of goods, accounting and auditing. The actions proposed cover inter alia 
technical assistance, training, administrative co-operation, approximation of laws and 
alignment of practices. 
The actions undertaken will comply fully with multilateral obligations and will be in line 
with the objectives and the procedures of the MEDA programme. They will not require 
extra funding but will be financed entirely by the funds allocated to the MEDA 
programme. 
-22-
Annex I 
Progress of negotiations on Euro-Mediterranean 
Association Agreements * 
PARTNER 
Tunisia 
Israel 
Morocco 
PLO for the benefit 
of the Palestinian 
Authority 
Jordan 
Egypt 
Lebanon 
Algeria 
Syria CONCLUSION 
OF 
NEGOTIATIONS 
June 1995 
September 1995 
November 1995 
December 1996 
April 1997 
Negotiations in 
progress 
Negotiations in 
progress 
Negotiations in 
Progress 
Negotiations in 
progress SIGNATURE 
OF 
AGREEMENT 
July 1995 
November 1995 
February 1996 
February 1997 
November 1997 
~ 
~ 
~ 
~ ENTRY 
INTO 
FORGE 
March 1998 
~ 
~ 
July 1997 
~ 
— 
— 
~ 
— 
* Relations with Turkey, Cyprus and Malta are governed by pre-existing Association 
Agreements providing notably for the gradual establishment of customs unions. The customs 
union with Turkey entered into force on 31.12.1995; the customs union with Cyprus entered into 
force on 01.01.1998. 
Source: European Commission, DG I.B 
July 1998 
-23-
Year: 1994 
ECU millions 
Source: SOfcC Annex II 
TRADE BETWEEN THE EU AND THE MEDITERRANEAN COUNTRIES 
7. Exports 
of which: 
a. Foodstuffs 
b. Raw materials 
c. Energy prod. 
d. Manufact. prod. 
2. Imports 
of which: 
a. Foodstuffs 
b. Raw materials 
c. Energy prod. 
d. Manufact. prod. 
3. Balance 
4. Cover rate 
(as%) 
1/2 
la/2a 
lb/2b 
lc/2c 
ld/2d ALGERIA 
4.615 
1.092 
103 
37 
3.353 
5.851 
22 
33 
4.725 
207 
-1.236 
79 
4.864 
309 
1 
1.619 % 
100 
24 
2 
1 
73 
% 
100 
0 
1 
81 
4 MOROCCO 
4.375 
264 
196 
92 
3.774 
3.707 
800 
330 
54 
2.511 
668 
118 
33 
60 
172 
150 % 
100 
6 
4 
2 
86 
% 
100 
22 
9 
1 
68 TUNISIA 
3.770 
213 
135 
155 
3.232 
3.038 
360 
43 
255 
2.370 
733 
124 
59 
318 
61 
136 % 
100 
6 
4 
4 
86 
% 
100 
12 
1 
8 
78 EGYPT 
4.563 
635 
124 
31 
3.662 
2.796 
100 
204 
1.575 
903 
1.767 
163 
636 
61 
2 
405 % 
100 
14 
3 
1 
80 
% 
100 
4 
7 
56 
32 JORDAN 
1.037 
171 
26 
2 
783 
151 
6 
25 
0 
59 
886 
685 
3.068 
102 
.. 
1.331 % 
100 
16 
3 
0 
76 
% 
100 
4 
17 
0 
39 LEBANON 
2.194 
304 
72 
217 
1.562 
90 
6 
28 
3 
50 
2.104 
2.441 
4.881 
256 
7.466 
3.136 % 
100 
14 
3 
10 
71 
% 
100 
7 
31 
3 
55 SYRIA 
1.609 
206 
27 
26 
1.304 
1.573 
9 
143 
1.339 
78 
36 
102 
2.266 
19 
2 
1.671 % 
100 
13 
2 
2 
81 
% 
100 
1 
9 
85 
5 
1. Exports 
of which: 
a. Foodstuffs 
b. Raw materials 
c. Energy prod. 
d. Manufact. prod. 
2. Imports 
of which: 
a. Foodstuffs 
b. Raw materials 
c. Energy prod. 
d. Manufact. prod. 
3. Balance 
4. Cover rate 
(as%) 
1/2 
la/2a 
lb/2b 
lc/2c 
ld/2d ISRAEL 
8.955 
425 
250 
35 
8.020 
4.153 
424 
313 
112 
3.180 
4.801 
216 
100 
80 
31 
252 % 
100 
5 
3 
0 
90 
% 
100 
10 
8 
3 
77 TURKEY 
8.868 
205 
750 
151 
7.284 
7.605 
1.451 
399 
165 
5.531 
1.263 
117 
14 
188 
91 
132 % 
100 
2 
8 
2 
82 
% 
100 
19 
5 
2 
73 CYPRUS 
1.994 
166 
34 
91 
1.657 
620 
116 
14 
0 
488 
1.375 
322 
143 
245 
239.279 
340 % 
100 
8 
2 
5 
83 
% 
100 
19 
2 
0 
79 MALTA 
1.865 
136 
30 
220 
1.447 
1.012 
6 
8 
62 
910 
853 
184 
2.383 
390 
358 
159 % 
100 
7 
2 
12 
78 
% 
100 
1 
1 
6 
90 TOTAL MED. 
43.846 
3.816 
1.747 
1.057 
36.079 
30.596 
3.300 
1.540 
8.289 
16.287 
13.2491 
143 
116 
113 
13 
222 % 
100 
9 
4 
2 
82 
% 
100 
11 
5 
27 
53 OUTSIDE EU 
538.700 
40.529 
16.494 
13.773 
458.225 
539.713 
48.637 
46.358 
62.736 
365.975 
-1.013 
100 
83 
36 
22 
125 % 
100 
% 
100 
9 
9 
12 
68 
TRADE BETWEEN THE EUROPEAN UNION (EU 15) AND ITS MEDITERRANEAN PARTNERS 
Year 1995 
ECU '000 
IMPORTS TO THE EU 
COUNTRY 
Algeria 
Morocco 
Tunisia 
Egypt 
Jordan 
Lebanon 
Syria 
Israel 
Gaza + Jericho 
Turkey 
Cyprus 
Malta 
TOTAL TOTAL 
6.009.565 
4.013.895 
3.360.205 
2.327.236 
134.147 
110.465 
1.733.588 
4.652.353 
341 
9.242.801 
737.101 
1.077.000 
33.398.698 Agricultural products 
26.432 
832.306 
359.394 
191.980 
8.357 
8.408 
24.148 
447.194 
291 
1.488.251 
159.273 
7.505 
3.553.538 Raw materials 
49.758 
325.710 
61.092 
199.396 
34.388 
27.754 
167.774 
319.237 
2 
486.899 
14.454 
9.287 
1.695.750 Mineral fuels 
4.525.513 
39.211 
235.040 
1.176.643 
0 
3.990 
1.432.151 
38.208 
0 
128.412 
5.524 
58.447 
7.643.139 Manufactured goods 
231.660 
2.801.606 
2.693.440 
744.178 
79.896 
66.555 
106.724 
3.702.140 
48 
7.096.999 
555.911 
962.642 
19.041.800 Other unclassified products 
1.176.201 
15.062 
11.241 
15.041 
11.506 
3.757 
2.792 
145.590 
0 
42.241 
1.939 
39.119 
1.464.489 
EXPORTS FROM THE EU 
COUNTRY 
Algeria 
Morocco 
Tunisia 
Egypt 
Jordan 
Lebanon 
Syria 
Israel 
Gaza + Jericho 
Turkey 
Cyprus 
Malta 
TOTAL TOTAL 
4.709.413 
4.734.466 
4.162.448 
5.019.979 
1.045.502 
2.469.375 
1.376.765 
9.658.244 
5.000 
13.440.516 
2.014.117 
2.015.300 
50.651.123 Agricultural products 
913.383 
485.368 
322.071 
594.562 
167.849 
343.357 
186.141 
431.128 
1.045 
615.116 
182.471 
152.121 
4.394.614 Raw materials 
188.445 
250.845 
184.777 
355.876 
32.788 
83.366 
40.729 
372.919 
146 
1.064.910 
41.143 
25.470 
2.641412 Mineral fuels 
49.684 
78.480 
132.410 
31.127 
6.039 
187.482 
33.364 
41.844 
18 
119.228 
66.438 
313.134 
1.059.250 Manufactured goods 
3.532.233 
3.884.497 
3.487.144 
3.928.832 
805.819 
1.837.036 
1.100.476 
8.629.724 
3.717 
10.874.430 
1.667.631 
1.472.801 
41.224.338 Other unclassified products 
25.802 
35.303 
36.096 
109.587 
33.008 
18.319 
16.057 
182.650 
74 
766.940 
56.467 
51.845 
1.332.1481 
TRADE BETWEEN THE EUROPEAN UNION (EU 15) AND ITS MEDITERRANEAN PARTNERS 
Year: 1996 
ECU '000 
IMPORTS TO THE EU 
COUNTRY 
Algeria 
Morocco 
Tunisia 
Egypt 
Jordan 
Lebanon 
Syria 
Israel 
Gaza + Jericho 
Turkey 
Cyprus 
Maita 
TOTAL TOTAL 
5.443.606 
4.222.953 
3.628.445 
2.773.974 
171.029 
122.390 
1.957.113 
5.278.501 
861 
10.165.391 
563.181 
796.472 
35.123.915 Agricultural products 
37.604 
957.278 
247.382 
159.033 
8.622 
11.689 
27.517 
528.867 
722 
1.544.097 
157.022 
10.854 
3.690.686 Mineral fuels 
5.158.385 
28.520 
365.610 
1.716.952 
0 
0 
1.685.171 
32.704 
0 
121.821 
5.391 
55.095 
9.169.649 Manufactured goods 
195.662 
2.878.865 
2.942.774 
695.165 
94.800 
83.079 
117.550 
4.229.693 
133 
7.926.459 
379.213 
692.901 
20.236.294 Raw materials and other unclassified prod. 
51.955 
358.290 
72.680 
202.823 
67.607 
27.622 
126.875 
487.237 
6 
573.014 
21.555 
37.622 
2.027.286 
EXPORTS FROM THE EU 
COUNTRY 
Algeria 
Morocco 
Tunisia 
Egypt 
Jordan 
Lebanon 
Syria 
Israel 
Gaza + Jericho 
Turkey 
Cyprus 
Malta 
TOTAL TOTAL 
4.024.697 
4.678.393 
4.323.521 
5.725.871 
1.176.606 
2.709.541 
1.395.528 
10.387.796 
38.167 
18.195.625 
1.846.481 
1.864.882 
56.367.109 Agricultural products 
787.184 
326.711 
171.017 
560.380 
121.584 
327.567 
148.492 
436.480 
6.168 
602.467 
208.376 
147.839 
3.844.263 Mineral fuels 
30.604 
105.920 
160.168 
67.801 
4.588 
233.833 
40.385 
62.709 
1 
225.667 
74.685 
307.339 
1.313.700 Manufactured goods 
3.020.543 
3.953.245 
3.763.952 
4.507.396 
979.992 
2.042.543 
1.127.096 
9.279.257 
31.790 
15.362.120 
1.430.715 
1.350.751 
46.849.402 Raw materials and other unclassified prod. 
186.366 
292.517 
228.383 
590.295 
70.442 
105.597 
79.555 
609.350 
208 
2.005.371 
132.706 
58.952 
4.359.744 
THE EUROPEAN UNION'S SHARE (EU 15) 
OF THE MEDITERRANEAN COUNTRIES' EXTERNAL TRADE 
Imports (%) 
Algeria 
Morocco 
Tunisia 
Egypt 
Jordan 
Lebanon 
Syria 
Israel 
Palestinian Terr. 
Cyprus 
Malta t 
Turkey 1991 
65.0 
55.8 
74.0 
42.7 
32.3 
42.0 
50.4 
50.1 
75.5 
47.0 1992 
66.5 
53.9 
73.2 
41.1 
31.6 
40.0 
53.0 
50.5 
76.7 
46.6 1993 
61.5 
54.5 
74.7 
45.4 
33.2 
40.0 
52.2 
54.3 
71.6 
47.1 1994 
59.8 
56.5 
71.9 
40.0 
35.5 
50.4 
36.0 
54.4 
52.7 
75.7 
46.9 1995 
59.3 
56.1 
71.4 
38.9 
33.2 
53.4 
"34.0 
52.9 
6.31 
51.7 
72.7 
47.2 1996 
62.5 
54.1 
72.3 
36.2 
31.7 
49.9 
33.0 
52.3 
48.6 
68.6 
52.6 
Exports (%) 
Algeria 
Morocco 
Tunisia 
Egypt 
Jordan 
Lebanon 
Syria 
Israel 
Palestinian Terr. 
Cyprus 
Malta 2 
Turkey 1991 
62.4 
76.9 
43.1 
3.2 
49.0 
39.3 
45.1 
77.7 
54.1 1992 
73.4 
64.0 
78.2 
39.7 
3.0 
63.0 
37.5 
43.1 
75.3 
53.9 1993 
68.8 
62.4 
78.6 
40.1 
4.1 
61.0 
32.2 
38.7 
71.7 
49.5 1994 
69.9 
64.4 
80.0 
43.9 
5.2 
15.0 
56.0 
30.9 
36.8 
73.8 
47.7 1995 
64.9 
62.1 
79.0 
45.8 
6.3 
15.8 
57.0 
34.4 
0.7, 
34.7 
71.4 
51.2 1996 
58.7 
61.4 
80.0 
46.2 
8.3 
16.2 
62.0 
34.3 
28.4 
56.9 
49.7 
1 Data concern direct transactions and do not include transactions effected via Israel. 
2 EU 12. 
Source: Eurostat - Euro-Mediterranean bulletin on short-term indicators 1/98. 
MEDITERRANEAN COUNTRIES' SHARE 
OF THE EUROPEAN UNION'S EXTERNAL TRADE 
Imports (%) 
EU-15 
B/L 
DK 
D 
EL 
E 
F 
IRL 
I 
NL 
A 
P 
FIN 
S 
UK 1991 
6.1 
6.3 
2.2 
5.5 
6.8 
7.3 
9.7 
1.9 
10.6 
4.7 * 
5.3 
8.9 
1.2 
1.7 
2.9 1992 
6.3 
6.3 
2.2 
5.9 
9.2 
7.8 
10.2 
2.2 
10.4 
4.6 
4.4 
8.6 
1.3 
2.2 
3.0 1993 
6.1 
5.5 
2.3 
6.1 
12.0 
8.0 
9.1 
1.3 
9.8 
5.0 
4.5 
9.2 
1.1 
1.6 
3.2 1994 
6.1 
7.4 
2.5 
5.6 
13.2 
8.5 
9.3 
1.5 
10.2 
4.4 
4.5 
8.4 
1.3 
1.6 
3.1 1995 
6.0 
7.0 
2.1 
5.5 
11.3 
8.3 
10.3 
1.6" 
8.0 
4.4 
3.7 
6.5 
1.0 
1.6 
3.3 1996 
6.1 
7.6 
1.8 
5.6 
12.8 
8.8 
10.2 
1.8 
8.5 
4.3 
4.7 
6.9 
1.1 
1.5 
3.5 
Exports (%) 
Source: Eurostat - Euro-Mediterranean bulletin on short-term indicators 1/98. EU-15 
B/L 
DK 
D 
EL 
E 
F 
IRL 
I 
NL 
A 
P 
FIN 
S 
UK 1991 
9.2 
15.4 
4.3 
7.1 
27.4 
11.7 
13.1 
4.7 
13.8 
8.4 
5.2 
6.7 
5.3 
4.7 
5.8 1992 
9.3 
16.2 
4.7 
7.2 
30.4 
12.1 
13.0 
4.2 
14.1 
7.8 
5.4 
6.2 
5.1 
4.6 
5.6 1993 
9.6 
15.1 
4.7 
7.5 
25.5 
13.1 
13.0 
4.7 
14.1 
8.7 
5.0 
8.8 
5.2 
5.5 
6.3 1994 
8.7 
14.2 
4.4 
6.5 
27.9 
12.2 
12.3 
5.5 
12.8 
7.7 
4.7 
10.0 
3.8 
3.4 
5.7 1995 
8.8 
13.9 
4.5 
6.7 
26.7 
13.1 
12.8 
5.2 
12.3 
8.3 
4.1 
9.6 
4.2 
4.0 
6.2 1996 
9.1 
14.8 
4.0 
7.0 
26.8 
12.4 
13.1 
4.5 
12.2 
8.8 
4.4 
8.7 
3.8 
4.5 
6.4 

ISSN 0254-1475 
COM(98) 538 final 
DOCUMENTS 
EN 11 10 02 09 
Catalogue number : CB-C0-98-551-EN-C 
ISBN 92-78-39464-5 
Office for Official Publications of the European Communities 
L-2985 Luxembourg