P6_TA(2007)0076

Euro-Med Free Trade Area

European Parliament resolution of 15 March 2007 on the construction of the Euro-Mediterranean free-trade zone (2006/2173(INI))

The European Parliament,

- having regard to the Barcelona Declaration of 28 November 1995, which established a partnership between the European Union and the Southern and Eastern Mediterranean countries (SEMCs), and the work programme adopted at that conference,

- having regard to its resolution of 27 October 2005 on the Barcelona Process revisited [1],

- having regard to the Commission communication to the Council and the European Parliament of 12 April 2005 entitled "Tenth Anniversary of the Euro-Mediterranean Partnership: A work programme to meet the challenges of the next five years" (COM(2005)0139) and the annexes thereto (SEC(2005)0482 and SEC(2005)0483),

- having regard to the Commission communication to the Council and the European Parliament of 11 March 2003 entitled "Wider Europe — Neighbourhood: A New Framework for Relations with our Eastern and Southern Neighbours" (COM(2003)0104), its European Neighbourhood Policy (ENP) strategy paper of 12 May 2004 (COM(2004)0373), its communication to the Council of 9 December 2004 on its proposals for action plans under the ENP (COM(2004)0795), to the action plans for Israel, Jordan, Morocco, the Palestinian Authority, Tunisia and Lebanon, and to Regulation (EC) No 1638/2006 of the European Parliament and of the Council of 24 October 2006 laying down general provisions establishing a European Neighbourhood and Partnership Instrument [2],

- having regard to the conclusions of the Euro-Mediterranean Ministerial Conferences and Sectoral Ministerial Conferences that have taken place since the launch of the Barcelona Process, and particularly the conclusions of the VIIth Euro-Mediterranean Conference of Ministers of Foreign Affairs held in Luxembourg on 30- 31 May 2005,

- having regard to the Euro-Mediterranean Association Agreements between the Community and their Member States, of the one part, and Tunisia [3], Israel [4], Morocco [5], Jordan [6], Egypt [7], Lebanon [8] and Algeria [9], of the other part, and the Euro-Mediterranean Interim Association Agreement on Trade and Cooperation between the Community and the PLO (for the benefit of the Palestinian Authority) [10]; having regard to Decision No 1/95 of the EC-Turkey Association Council of 22 December 1995 on implementing the final phase of the customs union (96/142/EC) [11],

- having regard to the free-trade agreement, known as the Agadir Agreement, signed by Jordan, Egypt, Tunisia and Morocco on 25 February 2004,

- having regard to the strategic partnership for the Mediterranean and the Middle East adopted by the European Council in June 2004,

- having regard to the MEDA Euro-Mediterranean Partnership Regional Strategy Paper 2002-2006 and the Regional Indicative Programme 2005-2006,

- having regard to the Sustainability Impact Assessment of the Euro-Mediterranean Free-trade Area (FTA) drawn up by Manchester University's Institute for Development Policy and Management,

- having regard to its resolution of 17 November 1995 on economic and trade relations between the EU and the countries of the Mediterranean basin [12],

- having regard to its resolution of 30 March 2000 on Mediterranean policy [13],

- having regard to the conclusions and recommendations (including the five-year work programme drawn up by the Commission) of the Barcelona Summit of 27 and 28 November 2005,

- having regard to the resolution of 11 May 2006 of the Committee on Economic and Financial Affairs, Social Affairs and Education of the Euro-Mediterranean Parliamentary Assembly (EMPA) on the Conditions for the Transformation of the Facility for Euro-Mediterranean Investment and Partnership (FEMIP) in the Euro-Mediterranean Development Bank,

- having regard to the work of the EMPA,

- having regard to its position of 14 December 2004 on the proposal for a Council regulation on financial and technical measures to accompany (MEDA) the reform of economic and social structures in the framework of the Euro-Mediterranean partnership (Codified version) [14],

- having regard to Rule 45 of its Rules of Procedure,

- having regard to the report of the Committee on International Trade and the opinions of the Committee on Foreign Affairs and the Committee on Agriculture and Rural Development (A6-0468/2006),

A. whereas the Barcelona Conference of 27 and 28 November 1995 launched a very ambitious project, one which is unique in its kind, namely the creation of new and closer political, economic, social and cultural ties between the northern and southern shores of the Mediterranean; whereas this project has enabled great progress to be made in the region, but is still a long way from completion,

B. whereas the political conditions (Oslo Agreements) which facilitated the launch of the Barcelona Process have changed radically in the meantime, and whereas the prospect of a peace settlement in the Middle East is more uncertain than ever,

C. whereas it is in the interest of the EU and the Member States that the Mediterranean region should develop within a mutually beneficial integrated economic and social environment,

D. whereas the strong demographic growth in the SEMCs necessitates the introduction of both economic and social policies and measures which can no longer be postponed,

E. whereas it is in the common interest of the SEMCs and the EU to bring down unemployment rates in the region and to give the populations concerned, in particular young people and the rural population, decent prospects, given that 35 million new jobs need to be created between 2000 and 2015 just to maintain unemployment rates at their present levels,

F. whereas the economies of the SEMCs are highly dependent on foreign trade and whereas total imports and exports account for some two thirds of their GDP; whereas a substantial proportion of these trade flows are to the EU, though they account for only 4% of the EU's foreign trade; whereas SEMC export structures are very poorly diversified and these countries remain specialised in sectors which bring little in the way of growth,

G. whereas, in relation to other economic areas, particularly the countries of South-East Asia, the SEMCs have lost prominent positions in terms of relative competitiveness, industrial development and social development perspectives; whereas the SEMCs' share of world trade has dropped perceptibly since 1980, in spite of relatively sustained economic growth, and whereas this trend must be a cause for concern to the EU and its neighbourhood policy, especially in terms of the effects on social and political stability at its borders,

H. whereas, where trade is concerned, the structure of trade between the EU and the SEMCs has changed very little since the start of the Barcelona Process, and whereas the signing of the association agreements has not yet produced the results expected,

I. whereas there is a need for an FTA the aim of which is to eradicate poverty, bring full employment, strengthen democracy and promote sustainable development; whereas this FTA should be based on balanced and properly targeted rules, which are essential in order to boost the integration of the SEMCs into international trade, ensure their economic diversification, meet the challenges of globalisation and ensure a fair sharing of its benefits,

J. whereas increased economic cooperation in the Mediterranean region also offers positive prospects for the economies of the Southern European Member States and, therefore, their deeper integration into the EU single market,

K. whereas the two shores of the Mediterranean continue to present a strikingly asymmetrical picture in economic, social and demographic terms, and whereas there are significant differences between the SEMCs in terms of development,

L. whereas the persistent political and economic fragmentation of the SEMCs and the lack of a genuine integration process could have very harmful effects on the Barcelona programme, and on the creation of the FTA in particular, by exacerbating the effects of trade concentration, and thus the dependence of certain SEMCs on the Community market,

M. whereas the creation of an FTA may have effects which are generally positive in the long term, but it may also have negative short- and medium-term effects on the EU's Mediterranean countries and on the SEMCs,

N. whereas it is in the common interest for effective flanking measures to be introduced to dampen and offset, as regards all the regions and countries affected, the negative effects of the liberalisation which is currently in progress,

O. whereas, owing to the growing pace of change in our computer-based societies, the SEMCs should step up their efforts, both quantitatively and qualitatively, in the field of scientific and technological research, with a view to narrowing the technological divide which separates them from the more highly developed countries in this area, thus eventually permitting more sustained and sustainable economic growth,

P. whereas the SEMCs have made remarkable progress in terms of primary education, greatly reducing their illiteracy levels, which nevertheless remain very high in some countries in the region; whereas access to higher and university-level education is confined to a small proportion of the population and the school system still does not have the capacity to train high-level professional or technical staff so as to create a real balance between supply and demand on the labour market,

Q. whereas, in tandem with the process to create a free trade area between the EU and the SEMCs, the SEMCs must remove the political and economic obstacles which are currently standing in the way of the integration process throughout the area in order to achieve more fruitful collaboration amongst themselves,

Reinvigorating the Barcelona Process

1. Regrets the fact that Barcelona's three main objectives (establishment of a common area of peace and stability; creation of an area of shared prosperity through an economic partnership and the creation of an FTA; cooperation in social, cultural and human affairs to promote a dialogue between cultures in the region) are still far from being achieved;

2. Points out that these three pillars must necessarily move forward together in order to ensure the success of the process of Euro-Mediterranean integration and to reduce the development gap between the two shores of the Mediterranean;

3. Stresses that strengthening the Barcelona Process helps spread European values and the European economic and social model; recalls that this process predates other more recent regional initiatives and has acquired more of an institutional nature; stresses the importance of this initiative as a factor for stability and the promotion of dialogue;

4. Stresses that the success of the Barcelona Process, and of the FTA in particular, requires a sustained effort and common will on the part of all parties, and greater involvement of civil society and of the people on both sides of the Mediterranean;

5. Stresses the need for a clearer definition of the objectives of the ENP, which, without neglecting the countries of Eastern Europe, must neither weaken the Barcelona Process nor favour bilateral approaches at the expense of a multilateral regional approach; considers that a more effective use of the ENPI for regional projects would make it possible to improve the situation with a view to promoting a genuinely integrated regional economic area; believes that, while advocating closer cooperation with the most advanced partners, and with due regard for their specific political, cultural, religious and social characteristics, the SEMCs must continue to be regarded as a separate entity;

6. Believes that, while continuing to demonstrate a positive approach, given the accumulated delays and the problems encountered, the date of 2010 for the creation of the FTA will probably have to be revised in order to take into account the many structural changes in the world economy since 1995 and the need for a more cautious approach to free trade among unequal partners; calls on the Commission, the EU Member States and the SEMCs to re-launch the Barcelona Process by giving priority to the establishment of a genuine Euro-Mediterranean socio-economic area which will incorporate social and environmental aspects into the economic side of the partnership to a greater extent;

7. Calls on the SEMCs not to miss an opportunity for sustainable growth which would enable them to respond better to the growing needs of their citizens and the need to meet the challenges of globalisation more effectively;

8. Regrets that the technical and financial assistance granted by the EU, although by no means negligible, has not measured up to the objectives and ambitions of Barcelona, particularly as regards the socio-cultural chapters of the Barcelona Declaration and support for local economies;

9. Believes that the FTA will be able to offer a genuine opportunity for growth for the SEMCs only if it is planned on a concerted, gradual basis in the context of a rational, predictable partnership which reflects the socio-economic realities of the SEMCs and promotes economic development and deeper regional integration; emphasises the importance of greater participation by the partner countries and the incentive which partnership provides; recalls that ownership of the objectives of the partnership lies with both shores of the Mediterranean; stresses the need to give the SEMCs the right to control the speed with which they open up their trade and their national strategies for economic and social development;

10. Considers that creating closer institutional ties between the EU and the SEMCs is an important factor in ensuring the success of the Barcelona Process; advocates a substantial increase in formal and informal meetings between the Community authorities, the Member States, the SEMCs and the competent local authorities; hopes that the SEMCs will participate as observers in the work of the specialised European agencies and programmes with which they share an interest;

11. Emphasises the importance of regional integration of the SEMCs and increasing South-South trade; welcomes the signature of the Agadir Free Trade Agreement of 25 February 2004 between Morocco, Tunisia, Egypt and Jordan; considers that this measure is essential for the creation of a genuine FTA and calls on the other countries in the region to join it; considers it essential, however, that the economic integration process be deepened and that the obstacles to trade between these countries be rapidly eliminated so as to enable the potential for further development of South-South trade to be fully exploited;

12. Calls on the EU to increase the resources available for technical and financial assistance to the SEMCs, in line with the ambitious Barcelona objectives and in proportion to the genuine progress which can be seen to have been achieved in the SEMCs with regard to respect for human rights, the protection of workers, environmental protection, regional integration, and improvements in the quality of local public services and educational and cultural services;

13. Points out that the creation of an economic and commercial free trade area in the Mediterranean cannot be dissociated from political efforts aimed at ensuring peace, democratisation, respect for human rights, gender equality and the promotion of inter-cultural and inter-religious dialogue, and a sustained effort to ensure that the political dialogue and trust between the partners plays a genuine role in establishing democracy in the region;

Trade and customs policy

14. Stresses that customs duties still account for a substantial share of the SEMCs' tax revenue; considers, therefore, that it is necessary for the timetable for any subsequent reduction to be carried out to take into account the economic progress made by the SEMCs and the time needed to implement equitable tax reforms designed to offset the reduction in customs revenues;

15. Considers that, at the same time, effective measures should be taken against non-tariff barriers to trade, stressing in this connection the importance of granting sufficient technical assistance;

16. Calls on the Commission to take into account a potential erosion of tariff preferences from which the SEMCs benefit, caused by the signing of free-trade agreements between the EU and some third countries, the improvement of the system of generalised preferences (GSP) for developing countries and the granting of the system of cumulation of origin to some Asian countries which are serious competitors to industry in the SEMCs;

17. Calls on the Commission to establish a compensation procedure, in the context of the Barcelona process and respecting WTO standards, with a view to reducing the negative impact which this tariff erosion might have on the SEMCs and, in the future, on the creation of the FTA;

18. Welcomes the progress made on "Trade facilitation", particularly in the customs field with the harmonisation and simplification of customs procedures, the automation and speeding up of procedures, enhanced transparency, the use of electronic information and payment systems and the abolition of certain non-tariff barriers which now tend to supplant the traditional tariff barriers, particularly in the area of standardisation and certification;

19. Reiterates that, in view of the intensification of international competition, it is essential to strengthen the political will to establish a more substantial economic and social agenda which will improve the competitiveness of the knowledge-based economy, stimulate growth, training, innovation and research, create new jobs and boost prosperity with a view to co-development;

20. Calls on the SEMCs to establish an enhanced cooperation and twinning scheme with a view to helping reform the administrative and business environment in line with the principle of good governance;

21. Stresses the need to increase customs checks and make them more stringent, in order to combat smuggling, counterfeiting and piracy of goods, such practices, apart from the loss of revenue they entail, presenting considerable dangers to the health of the region's inhabitants;

Sustainability impact assessment of the Euro-Mediterranean FTA

22. Welcomes the publication of the second phase of the aforementioned sustainability impact assessment of the FTA drawn up by the University of Manchester; is extremely concerned about the findings of that assessment with regard to the expected negative social and environmental effects of an FTA in the short-term and medium-term; urges the Commission to incorporate the recommendations in this report into future discussions concerning the implementation of the FTA, but also to redirect the negotiations towards the social cohesion and sustainable development advocated by this study;

23. Further stresses the importance of establishing a partnership guidance scheme to assess the measures carried out in furtherance of the objectives pursued; believes that such guidance might consist in creating an analysis and assessment tool for the Mediterranean;

24. Urges all participants in the Euro-Mediterranean Partnership to discuss the findings of the abovementioned sustainability impact assessment of the FTA at Ministerial level and to determine what the consequences may be for the ongoing FTA negotiations;

Financial and technical assistance

MEDA and ENPI

25. Regrets the fact that the EU has been unable to make available funding which is commensurate with the objectives of the Barcelona Process, this being one of the causes of the accumulated delays in creating the FTA;

26. Notes the good performance of the MEDA II programme during the period 2004-2006 compared with MEDA I, particularly as regards the increased absorption capacity shown by the beneficiary countries and the flexibility in programming and implementation of MEDA projects since 2000;

27. Welcomes with interest the creation of the ENPI, a new instrument intended to cover the financial aspects of the ENP, and the Commission's proposal to increase funding to EUR 14930000000, so as to meet the needs of the eligible countries more satisfactorily, on condition that this becomes a genuine convergence instrument, and includes aid to compensate for lost customs revenue of Mediterranean partner countries and other costs associated with liberalising markets;

28. Regards the sum of EUR 11181000000 adopted by the Council on 17 October 2006 as insufficient; demands that, when the mid-term review of the financial perspective takes place in 2008-2009, more substantial sums be provided so as to enable the integration process to achieve its objectives;

29. Hopes that this financial instrument will become more effective by placing greater emphasis on more relevant and targeted programming and on the participation ("ownership") of the partners and of civil society at all stages of the project management cycle; calls on the governments of the SEMCs to take any action necessary to improve the use of Community funds, particularly those for research, occupational training, the strengthening of local infrastructures and public services, and the reorganisation of the industrial and agricultural production system; calls on the Commission and the Member States to seek to maintain a balance between the EU's neighbours to the East and those to the South and to give priority to the funding of regional (particularly South-South) projects;

30. Strongly reiterates that, for the creation of the FTA and more generally for the success of the Barcelona Process, the ENP must not disappoint the legitimate expectations of the SEMCs, particularly as regards the geographical distribution of European financial aid and the arrangements for its disbursement;

FEMIP

31. Welcomes the good results achieved by the FEMIP since its inception, and considers that its enhancement is essential to the success of the Barcelona Process; wishes to see it transformed into a genuine Euro-Mediterranean investment and development bank;

32. Notes that the activities of the MEDA programme and of the FEMIP are largely complementary; calls on the Commission and the EIB to establish an enhanced cooperation and coordination procedure to boost the effectiveness of EU action, both at strategic level and in the management of specific projects;

33. Considers that, until such time as consensus is reached between the EU Member States, the proposed Euro-Mediterranean Development Bank could be set up with the involvement, in the initial phase, of any European or southern Mediterranean countries interested in the project;

Foreign direct investment (FDI)

34. Notes that a lack of financial attractiveness acts as a major brake on FDI in the SEMCs, with negativeeffects on the region's economic growth;

35. Recalls that investments [15] have a very significant impact in terms of subcontracting, the propagation of know-how and meeting training needs in a region which as a whole is under-industrialised, and in terms of job creation;

36. Considers it necessary for these countries to engage in a trade policy which may encourage the use of private domestic investments, particularly by modernising the financial and banking systems and facilitating access to credit for as many people as possible;

37. Stresses the importance of dialogue between businesses on both shores of the Mediterranean in boosting trade and investment;

Rules of origin and cumulation of origin

38. Welcomes the extension of the pan-European system of cumulation of origin to all the SEMCs; believes that this may provide the SEMCs with access to an extended economic area covering the Euro-Mediterranean region and also the EFTA countries and the CEECs; requests that the call by the Palestinian Authority for goods produced in the Occupied Territories to be identifiable within the framework of the rules of origin be fully respected;

39. Calls, therefore, on the SEMCs to adopt, as soon as possible, pan-Euro-Mediterranean protocols on the rules of origin in the context of their respective agreements with the EU and the other pan-Euro-Mediterranean partners, with a view to making the most of the pan-European system of cumulation by applying it to the whole region;

40. Calls on the SEMCs to rapidly implement training, information and awareness-raising programmes on the rules of origin and to guarantee, with the Commission's assistance, adequate training for economic operators and customs officials;

41. Calls on the Commission, in line with the criteria set out in its communication of on the rules of origin in preferential trade arrangements — orientations for the future (COM(2005)0100), and in the light of the two studies commissioned by DG Trade and DG Development since the publication of the 2005 Green Paper, to consider carefully the reform (simplification and increased flexibility) of these rules, and the need to exert more effective controls over their application in order to avoid the abuse of preferences; hopes in particular that the new regulations will guarantee compliance with these rules and respect for commitments made to the Euro-Mediterranean area;

Agriculture

42. Considers that the opening up of agricultural markets should be defined jointly and implemented progressively and asymmetrically, while providing for the possibility of a certain number of exceptions and time schedules and taking into account the EU's and the SEMCs' joint prospects for this sector and the differences between, and individual characteristics of, the agricultural sector in different countries; also stresses the economic and social importance of this sector for the SEMCs and the need to avoid impoverishing the rural population, which is a factor contributing to a rural exodus and a concentration of the population in urban centres, particularly coastal cities, which are already over-populated;

43. Calls on the Commission and the governments of the SEMCs to give priority to any initiative aimed at the modernisation and sustainable development of the Mediterranean primary sector with a view to improving living conditions and creating new agricultural and non-agricultural jobs in the countryside;

44. Calls for the introduction of an integrated technical assistance and human resources training scheme; stresses that the EU's agriculture measures in the region must contribute to defining a viable water policy, to safeguarding the environment and biodiversity, to protecting soil and its fertility, to guaranteeing food sovereignty and to adding value to typical regional products; reiterates its support for the policies implemented by the SEMCs to diversify their agricultural production;

45. Considers that the promotion of locally adapted, mainly small-scale, farming, which represents an improvement for the environment and therefore for the financial position and health of the rural population, could not be achieved by simply liberalising market access for agricultural products;

46. Considers, consequently, that any opening up of the markets between the EU and the SEMCs must be gradual, quality-oriented and measured and take into account the farm structures, agricultural policies and reforms pursued on either side of the Mediterranean; stresses the fact, moreover, that negotiations on access to markets cannot under any circumstances be conducted globally, but rather on a case-by-case and product- by-product basis, and must take account of the need for protection in the case of "sensitive" products, which should be excluded from any full liberalisation in order to prevent local producers from suffering irreparable damage;

47. Points out that many Mediterranean countries have expressed the wish to preserve their trade preferences vis-à-vis the Community market; considers that maintaining this preferential and asymmetric system is incompatible with a general liberalisation of the agricultural sector; emphasises, furthermore, that it is in the mutual interest of all Mediterranean countries to preserve certain tools with which to manage supply on their respective markets;

48. Calls upon all the socio-professional players in the Euro-Mediterranean agricultural sector to foster cooperation in complementary sectors by promoting the complementarity of products both between the northern and southern shores of the Mediterranean and (where possible) between the SEMCs' South-South shores; emphasises, by way of example, the case of the wine industry or the fruit and vegetable sector, where production from both sides of the Mediterranean could help develop a more comprehensive and attractive commercial supply for consumers;

49. Emphasises, in the same vein, the value of jointly developing a common Euro-Mediterranean labelling policy on the basis of registered designations of origin, a policy which must be sufficiently compatible with the EU's current rules based on registered designations of origin and organic certification, and of ensuring traceability and transparency of production methods;

50. Is convinced that liberalisation of the markets in the SEMCs would primarily benefit large mechanised farms, which already benefit in full from the compensation fund system; calls on the institutional players of the Euro-Mediterranean partnership to improve access to loans for small-scale producers and to develop a system for weighting aid towards small farmers, who constitute the overwhelming majority of the farming population of these countries and who will be the first to suffer from competition with the EU and, in the long run, to replace the old system of compensation and aid with a new system of support for sustainable farming and small-scale food processing industry investments in order to strengthen the competitiveness of rural economies through diversification, local marketing and the production of specific qualities;

51. Calls for thought to be given to implementing an agricultural policy which genuinely integrates both shores of the Mediterranean, giving priority to increased food security in SEMCs over commercial considerations, and to coordinating fisheries and water management;

Technical regulations and standards, intellectual property, competition

52. Considers that a harmonised EU/SEMC regulatory context would make it possible to expand and consolidate trade on a clear basis, not least by promoting greater transparency and fairer competition; believes that harmonisation, or at least a consistent framework, where standards are concerned is also likely to encourage the development of South-South trade;

53. Stresses the importance of introducing appropriate economic incentives and technical assistance for SMEs which have difficulty in internalising the costs arising from the harmonisation of the standards proposed by the association agreements;

54. Calls on the SEMCs to draw up and apply legislation on intellectual property which meets international standards, encourages innovation and creativity and is sufficiently flexible to meet the requirements and specific characteristics of the countries in question; calls on the Commission, with reference to intellectual property legislation, not to ask SEMCs to go beyond the commitments required under the existing TRIPs;

Services

55. Believes that any liberalisation of services in relation to the creation of the FTA can take place only on a basis agreed with the SEMCs, and by giving them the right to phase in and control the opening up of sensitive and vulnerable sectors of their economies;

56. Regards the services sector as essential for the success of the free trade area; notes that the services sector is crucial for the economies of the SEMCs and accounts for around 50 % of the GDP of Egypt, Morocco and Syria, 60 % of the GDP of Tunisia and more than 70 % of the GDP of Jordan and Lebanon;

57. Stresses at the same time that a phased liberalisation of services, a sector of particular importance for the SEMC economies, will assist their economic development, helping to improve infrastructures, transfer technologies and knowledge, and also raise the standard of service provision to their citizens; considers therefore that negotiations on the services sector must go hand in hand with negotiations on trade in goods;

58. Notes the official opening of the negotiations on the liberalisation of trade in services and investment at the 5th Euro Med trade ministerial conference in March 2006 between the EU and some SEMCs;

59. Asks the Commission to continue the negotiations begun in Marrakech and to conclude them in the area of services with certain SEMCs, covering all modes and sectors in accordance with what they agreed in the GATS framework of the WTO and to respond to positive offers by considering EU provisions regarding enhanced possibilities for the free movement of service workers (Mode IV of GATS);

60. Considers that a distinction must be made between commercial services and public services; stresses the need to keep public services outside the negotiating framework, especially those relating to people's basic needs and those allowing them access to essential public benefits, such as health, education, drinking water and energy, as well as those playing a leading part in cultural identity, such as audiovisual services;

Transport

61. Believes that the development of a Euro-Mediterranean transport network based on modern interconnections and the preparation of a common strategy for better cooperation, coordination and development constitute a precondition for the success of the FTA; regards it as vital for the SEMCs to enjoy closer interoperability with the trans-European transport networks, and for them to be involved in deciding and implementing future priority projects; asks in this context for consideration to be given to the possibility of upgrading maritime transport routes as a matter of priority and lowering the costs associated with maritime freight services;

62. Calls on the Commission and the SEMCs to make sufficient financial resources available for infrastructure modernisation, with particular reference to the logistics sector, and to carry out the necessary reforms to make the sector more competitive and dynamic taking due account of the specific geography of the area, which is the natural transit point for trade in goods between Europe and Asia (including China and India in particular);

63. Calls on the SEMCs, in conjunction with the Commission, to make the road and port sectors more efficient in order to reduce the very high logistics and transport costs which make the region's industrial and agricultural exports less competitive; calls, also, for thought to be given to the air transport sector, with particular reference to air freight services;

64. Welcomes with interest the forthcoming adoption of a Council communication on extending the main trans-European routes to the Mediterranean countries, taking into account the need for action to reorient transport flows for the benefit of this region;

Energy

65. Notes that the majority of the Barcelona Process countries depend to an ever-increasing extent on external energy supplies, particularly oil and gas, and that increased demand will exercise additional pressure on existing supply channels; stresses that, against this background, it will be important to establish effective cooperation between Mediterranean countries in the area of energy supply;

66. Calls for the construction of a genuine Euro-Mediterranean energy market to become a matter of central concern; regards it as vital, in the light of the recent increase in oil and gas prices, for the EU and those SEMCs which are without energy resources to make a coordinated effort to reinvigorate the dialogue with the energy-producing countries, while avoiding, as far as possible, entering into bilateral agreements which are detrimental to the interests of the EU and the SEMCs; notes with interest the Commission's desire, expressed at the Conference on external energy policy of 20 and 21 November 2006, to accord an important role to North Africa and the Middle East in its external energy policy, and calls for these declarations to be accompanied by concrete action;

67. Welcomes the carrying into effect of energy cooperation in the Mediterranean region under the auspices of the Rome Euro-Mediterranean Energy Platform (REMEP); considers that this platform may provide a common starting point for strengthening EU/SEMC cooperation by enabling important regional initiatives to be carried into effect and a basis for any other activities in the common interest which might be decided upon;

68. Welcomes the launch of major sub-regional projects such as the progressive integration of the Maghreb countries' electricity market into that of the EU, the integration of gas markets in the Mashreq region, and the construction of the Medgaz and Arab gas pipelines;

69. Calls on the Commission, the EU Member States and the SEMCs to explore new forms of bilateral and multilateral cooperation in the energy sector, particularly in connection with the introduction of measures to improve energy efficiency; also calls on the SEMCs to introduce policies to encourage the development of renewable energies and environmental protection (oil refinery activities and risks associated with hydrocarbon transport via the Mediterranean Sea);

70. Regards it as vital for the EU and those SEMCs, which are without energy resources, to engage in a strategic dialogue on the possibility of fostering the production of renewable energies on a massive scale and to grant SEMCs the right to participate in EU programmes related to R&D in the field of renewable energy;

71. Emphasises the role that first generation biofuels can play as an alternative form of energy, and also their increased competitiveness in the energy markets;

The environment and sustainable development

72. Welcomes the "Horizon 2020" initiative launched at the Barcelona Summit in 2005, which is intended to reduce the level of pollution in the region by identifying and tackling the most significant sources of pollution between now and 2020; stresses that this initiative is likely to supplement and relaunch the Mediterranean Sustainable Development Strategy, which was approved in 1995;

73. Calls on the Commission and the SEMCs to concentrate on the primary environmental objective of stopping the pollution of the Mediterranean Sea (particularly by reducing industrial emissions and urban waste), while bringing into being a better form of political and financial cooperation involving greater participation by regional and local authorities and representatives of civil society and the private sector; also calls on the Commission to carry out regular assessments of the progress achieved in this area;

74. Calls on the Commission to concentrate on the full implementation of the Barcelona Protocol on land-based sources of maritime pollution by all Mediterranean countries, especially through increased financing for the Mediterranean Environmental Technical Assistance Program (METAP);

75. Considers that this initiative deserves to be publicised as much as possible and should receive the full and undivided support of the European Parliament in view of its important implications not only for the sustainable development of the region (tourism, fisheries, agriculture, access to water) but also for the standard of living of adjacent regions;

Industry

76. Notes with concern that the SEMCs have developed industries specialising in low-technology and low-added-value products, which makes them more vulnerable to external competition; takes the view that greater competitiveness on the part of SEMC industry is necessary for the success of the FTA, and calls on the SEMCs to adopt direct measures to help companies increase their competitiveness vis-à-vis European and Asian producers;

77. Calls for the timetable for liberalisation of the industrial sector to be adjusted according to prevailing economic and social conditions (including the level of unemployment) in each SEMC, and its impact on the environment;

78. Calls on the SEMCs to establish regional policies in the field of industry in order to bring about increased prospects of economies of scale and a better development strategy which takes account of the role of very small enterprises (VSEs) and small and medium-sized enterprises (SMEs) in the region; calls on the Commission and the SEMCs to promote VSEs and SMEs by developing efficient financial services and delivering technical and administrative assistance to enable them to improve their competitiveness;

79. Also calls on the Commission and the SEMCs to engage in joint action aimed at: (a) the simplification of administrative procedures, (b) ensuring professional, business and trade union associations are more genuinely representative, (c) enabling access to commercial information, (d) providing firms with technical assistance and support services and (e) the provision of lifelong training;

The textile sector

80. Reiterates its concern at the consequences that the end of the Agreement on Textiles and Clothing on 1 January 2005 and the abolition of quotas have had for the performance of the textile and clothing sector in the SEMCs and the EU; points out that this sector plays a crucial role in the economies of many SEMCs and some European countries; stresses that implementation of a programme aiming to improve the sector's competitiveness, with Commission support, would serve a useful purpose;

81. Considers that the major difficulties faced by the textile sector could inevitably have adverse consequences for the economy of EU countries and the SEMCs and, indirectly, for the establishment of the FTA; considers that, when the EU's new commercial and investment strategy with regard to China and, more generally, European commercial policy towards Asia are formulated, their possible impact on SEMCs and EU countries should be taken into account;

82. Calls on the Commission, in close cooperation with Member States and the private sector, to initiate ad hoc assistance programmes to improve the competitiveness of these countries' textile industries and enhance their traditional links with Community manufacturers;

83. Considers that the current difficulties could be overcome by reorganising the sector to enable it to take advantage of its physical proximity to European markets by concentrating on medium and high quality production with faster delivery (and stock replenishment) times at competitive prices;

84. Supports the establishment of a Euro-Mediterranean production area as the only means of enabling not only the southern, but also the northern Mediterranean countries to face the challenge of competing regional blocks and ensure that industrial output and employment can be maintained; considers that it is necessary to allocate specific European funds to support programmes of research, innovation or cooperation with that end in view;

85. Supports a Euro-Mediterranean partnership which promotes cooperation and competitiveness in the sector by pursuing a proactive policy of resolutely supporting training, R&D, technological innovation, the dissemination of good practice and exchanges of market information; recommends the introduction of a Euro-Mediterranean network of schools, training establishments and specialised technical centres for the textile/clothing industry to promote technical partnership and joint training and research programmes;

86. Notes that the difficulty of gaining access to financing and the unsuitable nature of certain financial instruments are still considerable hurdles to overcome for SMEs in the sector; calls on the Commission to propose means of remedying these deficiencies and incentive measures aimed at retaining part of the production chain in the countries of the Euro-Mediterranean area;

Science and technology

87. Is concerned about the slow progress being made by most of the SEMCs with regard to education and scientific research; notes that, despite an undeniable increase in the level of schooling, there remains a persistent lack of interaction between the labour market and the education system, something which has serious implications for productivity, labour skills and, more generally, the prospects for the region's development;

88. Calls on the Commission and the SEMCs to introduce measures aimed at improving the educational system in general, to pay more attention to the role of young people, to encourage more frequent exchanges between universities and to facilitate women's entry into the employment market by means of specific teaching programmes; stresses that greater participation by women in the employment market is a key factor for economic development; welcomes the initiatives taken by the Anna Lindh Euro-Mediterranean Foundation for Intercultural Dialogue with regard to Euromed schools, Euromed teams of young researchers, university summer schools and exchange programmes which allow more extensive dialogue and cooperation between the members of the Euro-Mediterranean partnership;

89. Urges the SEMCs to give greater priority to a development model based on the knowledge economy and to substantially increase the proportion of GDP allocated to scientific research; calls on the Commission to provide financial and technical support;

90. Calls on the Commission to support the Euromesco inter-university network, to help ensure that partnerships between universities, research centres, laboratories and doctoral schools are established on an institutional basis and to promote the mobility of research workers, teachers and postgraduate students from these institutions and the strengthening of joint research programmes;

91. Calls on the Commission to evaluate existing funding and programming arrangements with a view to encouraging joint EU/SEMC projects and enabling these countries to participate to a greater extent in Community research framework programmes;

92. Stresses the importance of vocational training, which plays a crucial role in firms' development; considers that the importance of vocational training should be reflected by the introduction of programmes geared towards the problems and requirements encountered and identified by firms;

Trade and development

93. Stresses that the EU's trade policy must not run counter to the objectives of its policies on development and poverty reduction, but that it should complement them; points out that more than 30 % of the population in the SEMCs lives on less than USD 2 a day; calls on the EU to invest in a specific action plan to combat absolute and relative poverty in the Mediterranean, i.e. a Mediterranean version of the Millennium Goals, and to achieve development through trade, the Mediterranean version of Aid for Trade, in parallel with poverty reduction schemes;

94. Stresses that microcredit, particularly for small landowners in the agricultural sector, is an essential means of combating poverty and achieving sustainable social and economic development in line with the Millennium Objectives and is also a powerful emancipatory force, particularly for women; considers that this new microeconomic approach should be recognised in the framework of the FTA and, more generally, in the ENP and the Barcelona Process; calls on the Council and the Commission to provide more support for initiatives aimed at promoting microfinance in the SEMCs, to significantly strengthen existing programmes and to develop and promote new systems to facilitate access to credit for as many people as possible;

95. Stresses the importance of fundamental employment standards and decent jobs for the development of the FTA; points out that trade that assists development and reduces poverty also helps achieve social progress and decent working conditions; notes that the rules governing trade should not override social legislation and the ILO Framework Convention; notes that action to combat all forms of exploitation at work, and respect for trade union freedoms, are essential if trade is to be organised on a fair basis and in the interest of all; urges the Commission to work to that end in close collaboration with the ILO, particularly with a view to the introduction of ENP action plans;

96. Calls on the Commission to take non-commercial criteria into account in future negotiations, so that trade does not expand at the expense of the working conditions of local people; wishes to see the FTA lay down an agenda for acceptable work specifically designed for the SEMCs, and to see the EU commit itself to providing all the requisite assistance to ensure that this agenda is implemented;

97. Stresses the need to promote codes of conduct that have been negotiated with multinationals, which should incorporate the objectives of providing decent employment; recommends that undertakings which are based in Europe and have subsidiaries in the SEMCs should regularly check their subsidiaries' compliance with these codes of conduct; calls for any newly associated undertaking to accept the codes of conduct and to publicise the fact that it has done so;

Concluding considerations

98. Draws attention to the decision of the 2005 Barcelona Summit to create an area of mutual cooperation with regard to migration, social integration, justice and security; regards the establishment of such an area as an essential corollary to the establishment of a genuine Euro-Mediterranean FTA;

99. Takes the view that, although the conditions for this are not yet in place, the FTA should be complemented by the phased and conditioned introduction of free movement for workers, while taking account of the situation on the European employment market and current thinking in the international community on the links between migration and development; stresses that it is important and necessary to reduce the cost of transfers of remittances by migrant workers so as to maximise their use in the local economy; regards it as a matter of urgency to establish the legal and administrative procedures likely to facilitate the granting of visas, in particular for the players in the Euro-Mediterranean partnership, students, university staff and socioeconomic players;

100. Continues to be concerned by the lack of a clear definition of the EU's Mediterranean policy and of a long-term strategic vision for the region's development and stabilisation; stresses the need for the process of Euro-Mediterranean integration to become, once again, a political priority on the EU agenda;

101. Deplores the systematic destruction of Lebanon's economic system and infrastructures during the recent conflict with Israel, which will cause delays in the country's development and the establishment of the FTA; notes the results of the conference of 25 January 2007 on the reconstruction of Lebanon and supports the efforts to organise international aid to that country in the long term; calls for the EU, in the context of the current peace process, to continue to provide sufficient financial support to help the Lebanese to cope with the challenges of the country's economic and social reconstruction following the conflict of July 2006; expresses its strong concern about the situation of the Palestinian territories and consequently calls on the Council and the Commission, in cooperation with the international community, to provide the Palestinian population with essential humanitarian aid; notes that Israel has transferred part of the Palestine tax and customs revenues which it was holding, and calls on the Israeli Government to pay the remainder of these frozen sums as a matter of urgency; urges the Commission to insist on compliance with the clauses relating to the Barcelona Process, in particular the human rights clause included in the Association Agreements and the various action plans, in order to achieve a true area of freedom and security in the region;

102. Believes that, bearing in mind, in particular, the recent steps taken under the European neighbourhood policy and also the new presence of China in Africa, the objective of EU foreign policy in the Mediterranean is to support and encourage political, democratic and socioeconomic reforms in the partner countries so as to create together an area of shared prosperity;

103. Stresses the role of the Euro-Mediterranean Parliamentary Assembly within the partnership as the democratic body which brings together Members of Parliament from both shores of the Mediterranean around the three pillars of the Barcelona Process; finally, calls for stronger cooperation between the EMPA, the Commission and the Council of the European Union in the economic field;

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104. Instructs its President to forward this resolution to the Council and the Commission, to the Heads of State and Governments and the Parliaments of the Member States and of the SEMCs and to the EMPA.

[1] OJ C 272 E, 9.11.2006, p. 570.

[2] OJ L 310, 9.11.2006, p. 1.

[3] OJ L 97, 30.3.1998, p. 2.

[4] OJ L 147, 21.6.2000, p. 3.

[5] OJ L 70, 18.3.2000, p. 2.

[6] OJ L 129, 15.5.2002, p. 3.

[7] OJ L 304, 30.9.2004, p. 39.

[8] OJ L 143, 30.5.2006, p. 2.

[9] OJ L 265, 10.10.2005, p. 2.

[10] OJ L 187, 16.7.1997, p. 3.

[11] OJ L 35, 13.2.1996, p. 1.

[12] OJ C 323, 4.12.1995, p. 5.

[13] OJ C 378, 29.12.2000, p. 71.

[14] OJ C 226 E, 15.9.2005, p. 42.

[15] Particularly investments in "greenfield" sites.

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