15.3.93 OfficialJournaloftheEuropeanCommunities NoC73/57
POMPEN,PRICOLO,PROUMENS,QUEVEDOROJO,RAMAEKERS ,RODRIGUEZ GARCIA-CARO ,
ROMOLI,ROSEINGRAVE ,SAITIS,SALA,SANTILLAN CABEZA,SANTOS,SAUWENS,SCHADE­
POULSEN,SCHMIDT,SCHMITZ,SCHNIEDERS ,vonSCHWERIN ,SEQUEIRA,SMITH,STECHER
NAVARRA,TESOROOUVER,TIXIER,TUKKER,VANDERMEEREN ,VELASCOMANCEBO,VER­
BOVEN,WAGENMANS ,WALDACK,WICK,ZUFIAURNARVAIZA .
Thefollowingmembers,presentorrepresented,abstained:
Messrs:ATAIDEFERREIRA,BEALE,CEBALLOHERRERO,FRERICHS,GARDNER,GIESECKE,GROB­
EN,KAZAZIS,LUSTENHOUWER ,PEARSON,PETERSEN,PETROPOULOS ,STOKKERS,STRAUSS,
WHITWORTH .
OpiniononTheEuropeanCommunityandEconomicCooperationintheMiddleEast
(93/C73/11)
On25March1992theEconomicandSocialCommittee,actingunderthefourthparagraph
ofArticle20ofitsRulesofProcedure,decidedtodrawupanOpiniononTheEuropean
CommunityandEconomicCooperationintheMiddleEast.
TheSectionforExternalRelations,TradeandDevelopmentPolicy,whichwasresponsible
forpreparingtheCommittee'sworkonthesubject,adopteditsOpinionon15January1993.
TheRapporteurwasMrBeale.
Atits302ndPlenarySession(meetingof28January1993)theEconomicandSocialCommittee
adoptedthefollowingOpinionunanimously .
1.Introductorycomments
1.1.InitsOwn-initiative OpinionofJuly1989(*),
ontheCommunity'sup-datedMediterranean Policy,
anAdditionalOpinionofApril1990(2)andasecond
AdditionalOpinionofNovember1991(3),theCom­
mitteeputforwardviewsandsuggestionswithregard
totheCommunity'spolicyontheMediterranean area
asawhole.Insodoing,itstressedtheneedforeconomic
andsocialdialogue,preferablyatregionallevel,with
themaineconomicandsocialinterestgroups.1.3.Overtheyearstherehavebeenaseriesofagree­
mentsbetweentheCommunityandtheMiddleEast
States.TheCommunitymaintainscloserelationswith
allsouthernMediterranean countries,withtheexcep­
tionofLibya,aswellaswithJordan.Therehasbeen
anagreementontradeandeconomiccooperationwith
Israelsince1975,andcooperationagreementswere
signedwithEgypt,Jordan,SyriaandLebanonin1977.
TheCommunityisalsothemainproviderofaidto
theOccupiedTerritories.From1973theCommunity
startedtodeveloplinkswiththeArabLeagueviathe
Euro-Arabdialogue,althoughlittleornoprogresshas
beenmade.Acooperationagreementwasrecently
signedwiththeGulfCooperationCouncil(GCC),
whichshouldsoonbesupplemented byafree-trade
agreement.WiththeadoptionoftheNewMediterrane­
anPolicybytheCouncilinDecember1989,theCom­
munitymadeitclearthatitsobjectivewasnotmerely
tostrengthenitsbilateralrelationswiththesouthern
Mediterranean States,butalsotopromoteregional
cooperation .Thisisclearlydemonstrated bythefact
thatalmosthalfoftheNewMediterranean Policy's
five-yearbudgetisearmarkedfortheco-financingof
regionalprojects.1.2.ThepresentOpinioncouldactasastimulusfor
suchadialogueinthesouth-easternMediterranean area
andtheMiddleEast.Thedialoguewouldconcentrate
initiallyontheopportunitiesforregionalcooperation
andCommunitysupportwithintheframeworkofEuro­
Mediterraneancooperation .TheOpinionhighlightsthe
economicandsocialgroups'interestineconomiccoop­
erationandstabledevelopmentintheregionandlooks
atvariousformsofcooperationandsupport.
(!)OJNoC221,28.8.1989,p.5.
(2)OJNoC168,10.7.1990,p.14.
(3)OJNoC40,17.2.1992,p.19.

NoC73/58 OfficialJournaloftheEuropeanCommunities 15.3.93
1.4.AlthoughwhatEuropeanscalltheMiddleEast
isusuallyheldtostretchfromEgypttothePersianGulf
andeventoincludethenon-ArabStateofIran,this
Opinionconcentratesuponwhatismoreproperlyter­
medtheNearEast.ThelatterincludesLebanon,Syria,
Israel,theOccupiedTerritoriesandJordan,whichare
thosemostdirectlyconcernedinthecurrent'peace
process'followingtheGulfWar.ThepresentOpinion
thereforeconsiderstheseStates,althoughsomerefer­
enceswillalsohavetobemadeto:1.7.IsraelandtheOccupiedTerritoriesarethusin
aspecialpositionintheregionwhich,atthemoment,
makesitdifficulttoimaginethattheycanbeintegrated
intoaregionalgroupinginthenearfuture.Theendof
worldwideEast-Westconfrontation andthecommit­
mentgivenbytheincomingRabinGovernmenttothe
peaceprocesshadawakenedhopesforchangeinthe
relationsbetweentheeasternMediterranean States.
However,Israel'sbreachoftheFourthGenevaConven­
tionthroughitsexpulsionofmorethan400Palestinians
andherrefusaltoapplyUNSecurityCouncilResol­
ution799callingforthereturnofthedeporteesandfor
respectoftheindependence ,sovereignty,andterritorial
integrityofLebanonhavedealtaseriousblowtothat
processandcannotbecountenanced bytheinter­
nationalCommunity.—Egypt,whichalreadyconcludedaPeaceTreatywith
Israelin1979althoughthatprobablycostthelife
ofPresidentSadatatthehandsofEgyptianirrecon­
cilables,andwhichhasnormalpoliticalanddiplo­
maticrelationsbothwithIsraelandwiththeother
ArabStatesintheregion;
—Turkey,becauseofitspivotalpositionbetween
Europeandtheareaunderexamination,and
becauseofitseconomicandpoliticalpotentialin
relationtothepossibleintegrationofthatarea;
—theGulfStates(Iraq,Kuwait,SaudiArabia,Bah­
rain,Oman,QatarandtheUnitedArabEmirates),
becausetheyrepresent—Iraqapart—anintegration
projectalreadyunderwayinaborderingareawhich
offerssomeinterestingpointsofcomparison.1.8.EventhoughIsraelisperhapsmoreinterestedin
beingassociatedwithaEuropeanEconomicAreathan
ineconomiccooperationatregionallevel,anOwn­
initiativeOpinionatthepresenttimeisnotoutofplace
sincethevariousworkinggroupshavestartedtheir
multilateraldiscussionsintheframeworkoftheMiddle
Eastpeaceprocess.Forthefirsttimeindecades,del­
egatesfromIsraelandherArabneighbours—notonly
Egypt—havesatdownatthesametabletodiscussthe
prospectsforawide-rangingsettlementofthedisputes
whichhaverepeatedlyshatteredthepeaceofthearea
sincetheSecondWorldWar.Ofcourse,theCommittee
isnotapoliticalbody—unliketheEuropeanParlia­
ment.However,thepoliticaldimensionofMiddleEast
relationscannotbeignoredinanyexaminationofthe
economicandsocialdevelopmentinvolved. 1.5.Europehasmanypolitical,historical,cultural
andeconomictieswithitsMiddleEastneighboursand
themaintenanceofstabilityandsecurityintheMiddle
EastisthereforeofvitalimportancetoEurope.Itis
thereforeparticularlysignificantthattheECiscurrently
chairingaworkinggrouponregionaleconomicdevel­
opmentintheframeworkoftheMiddleEastpeace
negotiations .Atthisstageinthemultilateralphaseof
thepeaceprocesstheCommunityisconcentratingon
promotingeconomiccooperationamongStatesinthe
regionandinvolvingIsraelinthedevelopmentefforts
ofitsneighbours.1.9.Thefirstmeetingofthemultilateralworking
grouponregionaleconomicdevelopment,whichwould
berelevanttothisOpinion,washeldinBrusselson11
and12May1992.Israel,LebanonandSyriawere
neverthelessabsentfromthemeeting,whichputa
damperonthehighexpectations .Nonetheless,itwas
consideredpropertolaunchthedebateonpossible
formsofregionalcooperation .Inthebackgroundwas
thequestionofshowingtheadvantagescloserregional
economiccooperation,orevenintegration,couldbring.
Itisneverthelessclearthateconomiccooperationcan
benoalternativetothesearchforalastingsolutionto
thecomplexpoliticalproblemsoftheregion.Allitcan
doisofferapossiblewayforwardtowardsfindinga
solution.1.6.Nevertheless ,thereisnopointinignoringthe
essentiallypoliticalproblemswhichneedtobesolved
beforethereisanyrealisticprospectofsignificantecon­
omiccooperationthroughoutthearea.Theextreme
Zionistposition—althoughnotthatoftheIsraeli
Government—isthatthewholeofthebiblicalLandof
Israel(includingJudaeaandSamaria—i.e.theoccupied
WestBankoftheJordan)isIsraeliterritorybyright.
Ontheotherhand,theextremePalestinianpos­
ition—althoughnolongerthatofYasserArafat'sPLO
—isthattheStateofIsraelhasnorighttoexistonland
whichwasArabforcenturies.Particularlycrucialfor
thepeacenegotiationsisthestatusofJerusalem,held
byIsraeltobehercapital,butnotrecognizedassuch
byothercountries.1.10.ItisencouragingtnatIsraeldidattendthe
secondmeetingoftheworkinggrouponregionalecon­
omicdevelopmentheldinOctober,intheframework
ofthemultilateralpeaceprocess.TheCommittee's
Opinionhasbeendrawnupontheassumptionthat

15.3.93 OfficialJournaloftheEuropeanCommunities NoC73/59
thesenegotiationswillcontinue.However,ithastobe
recognizedthatSyriaandLebanondidnotattendthe
Octobermultilateralmeeting,apparentlybecausethey
consideredthattherehadnotbeensufficientprogress
intheirrespectivebilateralnegotiationswithIsrael.
Indeed,someArabStateswouldliketoseetheEC
associatedwiththebilateralprocessaswellasthe
multilateralone.andtheenvironmentwillbetackledduringthemultilat­
eralphaseofthepeaceprocess.Thesefivepriorities
formapackageofmeasuresforpromotingpeaceinthe
region,andforreducingtensionsandimprovingthe
qualityoflife.Thesuccessofthesemultilateralefforts,
inwhichtheCommunityisplayingamajorrole,isof
courseinseparablefromtheprogressandoutcomeof
thebilateraldiscussionsbetweenIsraelanditsneigh­
bours.Assumingthatprogressismadeduringthebilat­
eralphaseofthepeaceprocess,theCommunitycould
makeitscontributionduringthemultilateralphase.In
thefieldofregionaleconomicdevelopmentinparticu­
lar,theeconomicandsocialpartnersoftheCommunity
couldplaytheirpartintheframeworkofanintegrated
Communityinitiative.2.Presentsituation
2.1.EconomicrelationsintheMiddleEastareaffec­
tedbythetensionsbetweenIsraelandtheArabStates.
WiththeexceptionofEgypt,noArabStatehasever
enteredintonormaltraderelationswithIsrael.Even
thoughtraderelationsbetweenIsraelandEgyptwere
madepossiblebythe1979peacetreaty,theynevergot
offthegroundasaresultoftheprevailingpolitical
climate,andinparticulartheArabboycottofdirect
andindirecttradewithIsrael.Israel,foritspart,denied
thePalestiniansoftheOccupiedTerritoriesequalecon­
omicandsocialconditionsandequalaccesstothe
Israeliandforeignmarkets.2.5.ThecornerstoneoftheCommunity'sactivities
intheMiddleEastistheCommunity'sMediterranean
Policy,enshrinedintheagreementsandadditionalpro­
tocolswiththeindividualstates.Israel,withitsrela­
tivelyhighlevelofdevelopment,isaspecialcaseinthis
context,sincetheagreementconcludedprovidesfor
reciprocalmarketaccessonaquotabasis.Intheagree­
mentswiththeothercountriesoftheregiontheempha­
siswasplacedondevelopmentassistanceintheform
ofdirectaid,EIBloansandcertainformsofpreferential
accesstotheCommonMarket.UndertheNewMedit­
erraneanPolicy,inforcefrom1991onwards,the
budgetaryfundsearmarkedforaidweresubstantially
increased,andforthefirsttimefundswerespecifically
providedforregionalprojects,i.e.projectsextending
toseveralcountries. 2.2.Thepeaceprocesswillbesuccessfulonlyif
accompanied bythecreationofneweconomicand
traderelations.Giventherelativelysmallmarketsof
theeconomiesconcerned,notonlytradebutalsodom­
esticandforeigninvestmentmustbeencouragedin
ordertoraisemateriallivingstandards.2.6.Thishorizontalcooperationisanimportant
adjuncttobilateralcooperationandwaswelcomedby
theCommitteeasafurtherstepontheroadtoa
globalapproachtoMediterranean policy,althoughthe
Committeecriticizedshortcomings initspractical
implementation (*).TheCommitteeparticularlyregret­
tedthathorizontalcooperationatthattimewaslimited
tomeasuresofregional(inthenarrowsense)and
ecologicalinterestandthatitdidnotatthatstagecover
aspectssuchas:thedevelopmentofhumanresources,
cooperationinthefieldsofscience,technologyand
energy,supportofCommunityinvestment,therestruc­
turingofproduction,sectoralpolicyinthefieldsof
transport,communications andtourism,information
ontherequirementsoftheEuropeanInternalMarket,
socialandlabourmarketpolicy,migrationpolicyand
thepromotionofaneconomic,socialandcultural
dialogue—inwhichtheCommitteecouldtakeonspec­
ifictasks.2.3.Becauseofthesmallsizeoftheseeconomies,
economiccooperationextendingbeyondtradewould
beofbenefittocostsandefficiencyasaresultofthe
greatermobilityofcapitalandlabour,thedissemi­
nationofnewtechnologies,theintroductionofmore
efficientpaymentssystems,theestablishmentofmod­
erninfrastructures andcommunications systems,and
betteruseofresearchanddevelopment (R&D)and
educationandtrainingpotential.Thebigdisparities,
bothquantitativeandqualitative,inthevarious
countries'factorsofproduction (land,capitalandlab­
our)themselvesguaranteethatsynergyeffectswould
beachievedthroughregionaleconomiccooperation .
Suchcooperation,inconjunctionwithaprocessof
politicaldetente,wouldalsohelpreducerisksforinves­
tors,apreconditionforthenecessaryincreaseininvest­
mentbydomesticandforeignfirms.2.7.UnequaltreatmentofindividualStatesas
regardsaccesstotheEuropeanmarketisstillafeature
2.4.Atthesametimeaseconomicdevelopment is
beingpromotedbytheestablishmentofanopenecon­
omicsystemandtheinitiationofregionalcooperation,
thequestionsofdisarmament ,refugees,watersuppliesy)Cf.SecondAdditionalOpiniononCommunityMediterrane­
anpolicy,OJNoC40,17.2.1992,p.67etseq.

NoC73/60 OfficialJournaloftheEuropeanCommunities 15.3.93
developmentandisthusdetrimentaltothewelfareof
theirpeople.Problemareasneedtobeidentifiedwhere
coordinatedactionwouldbeuseful.Thisappliesin
particulartothefieldsofeconomicdevelopment ,
environment,healthandwatersupplies.oftheCommunity'sMediterranean policy.Thisis
undoubtedlyanobstacletothedevelopmentofregional
cooperationandshouldbereconsideredinthecontext
ofanintegratedorglobalapproachtopolicyonthe
Mediterranean andMiddleEast.Unfortunately there
isalsonoevidenceofanyrealeffortsonregional
cooperationbytheMiddleEastcountriesthemselves
towhichtheCommunitycouldlenditssupport.For
themoment,therefore,theCommunitycandonomore
thaninitiatetheoreticaldiscussions,anddiscussthe
opportunitiesforandbenefitsofeconomiccooperation
inadialoguewiththevariousinterestedparties,thus
preparingthegroundforpracticalprojectsand
measures .3.2.Oneofthemainpreconditionsforhealthyecon­
omicdevelopmentisagradualswitchawayfromsecur­
ityconsiderations to'peacetime'activitiesinwhich
resourcescanbereallocatedfrommilitarytocivilian
purposes.Developmentplansshouldalsobecoordi­
natedandgearedtothedevelopmentoftheregionas
awhole.Jointprojectsshouldbeaimedatraisingliving
standardsandcreatingemployment .Geographical ,cli­
maticanddemographicfactorsmaketheagricultural
sectorparticularlysuitedforjointprojects,provided
thatthescarcityofwaterresourcesistakeninto
account.2.8.AtatimewhentheCommunity'srelationswith
theMaghrebandGulfStatesareevolvingfrombilateral
relationswithindividualcountriestorelationsbetween
theECandagroupofStates(althoughpoliticaldiffi­
cultiesinsomecountriesmeanthatthisisnotastraight­
forwardprocess),waysshouldbesoughtofmakinga
regionalapproachpartofoverallpolicyonrelations
withtheMiddleEast,aspartoftheEuro-Mediterrane ­
anjointdevelopmentpolicywhichtheCommitteehas
advocatedforsometime.TheCommittee'srecentOwn­
initiativeOpiniononrelationswiththeMaghrebStates
isrelevantinthiscontext(J).Anyimprovementincon­
ditionsforresumptionofthepeaceprocessandprogress
inthelatterwouldmakeitpossibletoenvisagesimilar
cooperationinthisregion.3.3.Theregion—onboththeIsraeliandArabsides
—haspotentialintheformofspecializedskilledwork­
ers,unexploitedmineralresources,andinsomecases
ahighstandardoftechnologicalR&D.Combining
theseresourceswouldcreateconsiderablepotentialfor
accelerateddevelopment .Israel,inparticular,hasmuch
toofferinthespheresoftechnologytransferand
vocationaltraining.
2.9.TheCommunityregardseconomicsolidarity
betweenallthepeoplesoftheregionasthefoundation
forpeace,stabilityanddevelopmentintheMiddleEast.
TheCommissionhopesthateconomiccooperationwill
helpbreakdownthebarriersbetweenindividual
countriesthroughthejointdevelopmentofresources
andinfrastructureandtheresultingeconomicinterde­
pendence.Sincethebeginningofthemultilateralphase
ofthepeacenegotiationstheCommissionhascon­
sideredthattheCommunityhasanimportantroleto
playinsupportingcooperationprojectsandmodelsfor
theMiddleEastcountries.TheCommitteeiswilling
tomakeitscontributiontothisCommunityrole:see
paragraphs4.10and4.11below.3.4.Gradualopeningupoftheareatocommerce
couldcreatearelativelylargemarket,eliminatingthe
disadvantagesofsmall,self-containedmarketsandin
thelongertermofferinggreaterattractionsforforeign
investment.Forsuchadvantagestoberealizedinprac­
tice,however,itwouldbeessentialforallcountriesin
theregiontoacceptthenormalrulesofinternational
lawaffectingcommerce,includingrespectforarbi­
trationofdisputes.
3.Possibleareasforeconomiccooperation3.5.Avarietyofjointprojectsbenefitingthepartici­
patingcountriescouldstimulategrowthandstabilize
relationsinthelongrun.ProjectscoveringtheMediter­
raneanStatesplusJordanwouldbegeographically feas­
ible,andtheStatesborderingtheGulfsofEilatand
Aqabawouldalsoformanattractiveprojectarea,par­
ticularlyifSaudiArabiawereinvolved.Othergroupings
couldbeformedforspecificprojects.3.1.ThelackofconcertedactionbytheMiddleEast
countriesinresponsetoproblemswhichcanonly,or
canmoreeffectively,besolvedjointlyhinderseconomic
(i)OJNoC313,30.11.1992,p.18.3.6.Agriculturealsoprovidesplentyofscopefor
economiccooperationbetweentheCommunityandthe

15.3.93 OfficialJournaloftheEuropeanCommunities NoC73/61
importance .Thecommondependenceonwatersources
makesthisaclassiccaseforregionalcooperation .Apart
fromthedistributionofavailablewater,other
importantareasforjointprojectswouldberational
waterusebyhouseholds,industryandagriculture,reaf­
forestation,andsea-waterdesalination,althoughthat
isacostlyprocess.MiddleEast.Inparticular,thecomplementary nature
ofthetworegions'climaticandfarmingconditions
offerspotentialforcoordinatingfarmproductionona
Mediterranean scale.Thiscomplementarity canalso
facilitatecooperationbetweenMediterranean regions
inthespheresoftechnologytransfer(particularlyas
regardswaterengineering),technicalassistance,and
farmandmarketorganization .TheCommunity'slong­
standingexperienceofcooperativefarmingventuresis
akeyprerequisitewhichhasyettobefullyexploited.
Particularattentionmustalsobedevotedtothemost
disadvantagedormarginalagriculturalareasandsec­
tors,whichareincreasinglyaffectedbydesertification ,
andthesmallandmedium-sized farmswhichformthe
economicbackboneofagricultureandarethemain
providerofemployment .Thefirsttaskofeconomic
cooperationschemesmustthusbetorevitalizeand
upgradetheproductionandorganizational methods
specifictobasicfarmingsectors(cerealsandanimal
husbandry)aswellasthegeneticresources(animaland
plant)whichsmallfarmersandherdsmenintheMiddle
Easthavebeencultivatingforcenturies.4.AspectsofeconomiccooperationintheMiddle
East.
4.1.Regionaleconomiccooperationdependsoncer­
tainpoliticalconditionsbeingfulfilled.Butitshould
notwaituntilallthepoliticalprocesseshaveruntheir
course.Economiccooperationshould,rather,runin
parallelwiththepoliticalpeaceprocess,thussupporting
and,possiblyspeedingupthisprocess,andaboveall,
atalaterstage,stabilizingit(identicalinterestsbeing
aguaranteeofpeace).
3.7.Possibleareasforcooperationintheraw
materialsandenergysectorwouldincludethejoint
explorationandexploitationofnaturalresourcesbut
aboveallthedevelopmentofsolarenergyapplications
andenergy-saving architectureandproduction
methods.4.2.Theregionshouldbeseenasawhole,i.e.it
shouldembracenotonlytheMiddleEastinthenarrow
sense,butalsotheArabcountriesofthesouth-eastern
Mediterranean ,Israel,Turkeyandtheoil-producing
States.Countriescouldbegroupedtogetherinthe
contextofregionalintegrationasafunctionofthe
problemunderconsideration ,e.g.watersuppliesand
irrigationsystems,trade,tourism,agriculture,environ­
mentalprotection,infrastructure ,communications ,R&
D,socialandmedicalservices,educationandtraining,
jointfinancialinstitutions,etc.3.8.Asregardsinfrastructure,increasedeconomic
cooperationclearlyrequiresthedevelopmentoftrans­
portandcommunications capacity.Thetourismsector
inparticularwouldbenefitfromthisandfromthe
dismantlingofadministrative obstacles.Theregion's
touristattractionscouldthenbesuitablymarketedfree
ofthepresenthindrances.
4.3.TheCommunity'spolicyinthisareashouldbe
seenaspartofMediterranean policy,althoughpossibly
extendedfurthereasttoincludetheoil-producing
countriesincooperation,oratleasttoinvolvethem,
alongsidetheEC,inhelpingtopromotecooperation .
However,fallingoilpricesandGulfWarexpenditures
havereducedthesurplusfundsavailableforinvestment
inthearea.Thereisalsoaneedforprivateindividuals
toinvestintheregionratherthanexportingtheir
capital.3.9.Thegeographicalproximityoftheregion'smain
populationcentresmakesitessentialthateconomic
cooperationbeaccompaniedbyjointenvironmental
initiatives.Themonitoringandpreventionofpollution
areurgentlyrequiredbothintheMediterranean and
theRedSea.Thiswouldincludeplansforwastedis­
posalandrecycling.Atmosphericpollutionmustalso
betackled.
3.10.Cooperationonhealthcouldsignificantly
improvemedicalcareandhealthstandardsandenable
thewholeregiontobenefitfromthecombinedresources
ofmedicalstaffandhospitals.4.4.AlthoughthisOpinionstressesintegrationand
doesnotdwellonbilateralrelations,Israelisclearlya
specialcase.ItscloseaffinitywithEuropeisunder­
standablegivenitshistory,democraticsystem,ethnic
composition,highlyskilledworkforceandextensive
tradingrelationswiththeEC.
3.11.Cooperationonalleviatingthewatershortages
whichaffectalltheStatesintheregionisofvital4.4.1.Whilstbearinginmindcertainpolitical
requirements,particularlyonthePalestinianquestion,

NoC73/62 OfficialJournaloftheEuropeanCommunities 15.3.93
'normal'trade,itwasalsoinmanycasesdetermined
bypoliticalconsiderations .Thereductionofmilitary
expenditureaspartofdetenteintheMiddleEastwould
releaseconsiderableresourceswhichcouldbeusedfor
civilianpurposes,thusdoubtlessimprovingtheecon­
omicsituationinthesecountries.itwouldseemappropriatetoupdatethe1975agreement
withIsrael,particularlyasIsraelhasinthemeantime
signedamorefar-reachingfreetrade-agreement with
thecountriesoftheEuropeanFreeTradeAssociation
(EFTA),whichareshortlytobelinkedwiththeECin
theEuropeanEconomicArea(EEA).TheIsraelimar­
ket,inwhichtheEChasrecentlyenjoyedatrading
surplus,isalsoimportanttotheEC.
4.9.TheECcouldplayamajorroleinthemultilat­
eralpeaceprocessandshouldnothesitatetotake
initiativeswhichcouldhelptheprocessalong. 4.4.2.Israelisclearlyinterestedinclosetieswiththe
Communitywithoutnecessarilyaspiringexclusively,as
inthepast,tomembershipoftheEEA.TheCommunity
shouldcertainlytakeadvantageofthatdesireforclose
associationtoencourageIsraeltomakeprogresson
regionalcooperation,toavoidboththedangerofher
continuedisolationintheregionandanydiscrimination
againsttheArabStates.4.10.Thisiswherethesocialpartnerscomein.
Becauseoftheirpoliticalindependencetheyareless
subjecttocertainpoliticalconstraintsandcanthus
actmorefreely,andpossiblymorepromptly,than
governments .Asfarasregionalcooperationiscon­
cerned,thesocialpartnerscancontributetheirexperi­
encefromtheCommunity;theycanassistwithcooper­
ation,e.g.onquestionsofstandardization ,theplanning
ofjointprojectsandthedismantlingoftradebarriers
ofvariouskinds,theimplementation ofsocialrights
andthedevelopmentofsocialsecurityinthewhole
region,andtheywillbeabletopromoteinvestmentby
Europeanfirmsintheregionwhichwillbythenhave
morepromisingeconomicprospects.4.4.3.Israelisattemptingtouseitshighlyskilled
workforcetobuildahigh-techindustryproducingfor
worldmarkets,oratleasttheEC,notforthemarkets
ofneighbouringMiddleEastStates.Regionaltradeis
thereforeunlikelytoplayamajorroleinthispromising
sectorintheimmediatefuture.
4.5.AndyettheMiddleEasteconomiesareatleast
potentiallycompatible.Masspurchasingpowerismiss­
inghowever,whichmeansthateconomiccooperation
wouldhavetostartbyconcentratingoninfrastructure
andtelecommunications ,tourismandwatersupplies.
Itwillprobablytakeafairlylongtimefortradelinks
togrowsignificantly .4.11.TheECshouldconductadialogue,atboth
governmentandsocialpartnerlevel,withthecountries
oftheregionontherolewhichtheEuropeanscould
playinpromotingregionalcooperationintheMiddle
East.Althoughtheideawouldprobablybepremature
atthistime,thepossibilityofconveningameetingwith
representatives ofthesocialpartnersintheareashould
beborneinmindbytheCommittee.Arecentmeetingin
BrusselsbetweenIsraeliandPalestinianwomenshowed
whatispossible,providedthatthearrangementsare
handledwithgreatcareanddiscretiononallsides.
However,itcouldbedifficulttofindrepresentative
organizationsthatweretrulyindependentoftheState
inanumberofcountries.4.6.Turkeyshouldbeinvolvedinthisregionalcoop­
eration,astheonlyneighbouring Stateapartfrom
EgypttohavediplomaticrelationswithIsrael.The
problemsofwatersupplyintheareamakethisessential
inanycase.ItisalsoexpectedthatTurkeywillbecome
animportantexporteroffoodtoothercountriesofthe
region,withtherealizationoftheGreaterAnatolian
Projectinthesecondhalfofthenineties.4.12.DevelopmentcooperationbetweentheECand
thecountriesoftheMiddleEastcould,inadditionto
consolidating apeaceprocess,taketheshapeofboost­
ingdemocratization byinvolvingbothinstitutionsand
economicandsocialprotagonistsineachcountry.The
socialpartnerswithwhichtheCommitteeistohave
contactsshouldincreasinglyreflectabroadpluralistic
baseandspecificallyencompassindependentpartici­
pants.TheCommitteesharestheconcernalready
VoicedonseveraloccasionsbytheEuropeanParliament
regardingtheneedforgreaterdemocracyinthe
countriestobenefitfromECcooperation .4.7.Israelappearstobereadyforeconomiccooper­
ationintheregion,althoughthiswouldrequireanend
totheArabboycottontradewithher.Inthisconnection
westernfirmscouldplayapartinthewaytheystructure
theirexport/importandinvestmentactivities.Itappears
tobealreadythecasethatthesecondaryboycottis
beingrelaxed.
4.8.Thegeopoliticalsituation,mostsignificantlythe
dissolutionoftheSovietUnion,isconducivetoregional
cooperationintheMiddleEast.Althoughmuchofthe
armssupplytoMiddleEasterncountriesderivedfrom4.13.TheCommitteealsorecallsitsrequestthataid
andtradeagreementsenteredintobytheCommunity
[forexampleonthegeneralizedsystemofpreferences
(GSP),Lome...]shouldcontainsocialclausesenshrin­
ingtheapplication ofminimumlabour

15.3.93 OfficialJournaloftheEuropeanCommunities NoC73/63
standardsassetdowninInternational Labourconven­
tions(forexampleonchildlabour,freedomofassoci­
ation...).Itasksthatsuchclausesbeenshrinedin
developmentcooperationagreementswithcountriesof
theMiddleEast.—MED-CAMPUS (cooperationbetweenuniversities
inEuropeandintheMediterranean countries);
—MED-INVEST (cooperationbetweenbusinessesin
EuropeandintheMediterranean countries).
4.14.Inordertoensurethateconomiccooperation
operatessynergicallyandinparallelwiththepeace
process,theECcouldusefullyincreaseitsassistanceto
theOccupiedTerritories.Thisshouldfocusmoreon
promotingtheeconomicdevelopmentoftheterritories,
forexamplebyencouragingEuropeaninvestmentthere.5.5.Thenecessaryworkatmacroleveltoidentify
intra-regionalcomplementarities ,turnthemintopro­
jectsanddevelopthemfurthershouldbedonewithina
regionalinstitutionalframework[ofthekinddeveloped
undertheMiddleEastEconomicDevelopmentPro­
gramme(MEEDP)].TheCommunitycouldparticipate
intheestablishmentofsuchadevelopmentinstitution
andfunditwithotherdonorcountries.
5.Preconditions andobjectivesofregionalcooper­
ation5.6.Whenthetimecomestoputregionalcooper­
ationintopracticetheCommunitycouldcontributethe
experienceithasgainedfromtheestablishment of
theInternalMarketandtheworkofthenecessary
Communityinstitutionsintheformofadvice,training
andexchangeprogrammes .5.1.AmajorpreconditionforanefficientCom­
munitypolicyontheMiddleEastisimprovedaccessfor
theregion'sfirmstotheCommunitymarket.Although
liberalization isfairlywelladvanced,therearestill
barrierstotradewaitingtoberemovedinsensitive
sectorssuchaspetrochemicals ,textilesandagriculture.
Theestablishmentofequaltradingconditionsforall
thecountriesoftheregioncouldhaveapositiveeffect
onregionalcooperation .5.7.Asanadjuncttoeconomiccooperationthe
Communityshouldencourageculturalexchangeboth
withintheregionandwithEuropeandthuscontribute
totheprocessofgettingtoknowandunderstandeach
other.Inthisareainparticulartherearemanyoppor­
tunitiesforactionbytheeconomicandsocialgroups.
5.2.TheCommunityshouldalsoimproveitsfinan­
cialinstrumentsandothermechanismsforthepro­
motionofregionalcooperation .Forexample,consider­
ationcouldbegivento(a)increasingdirectcontri­
butionsasaproportionofthefundsearmarkedunder
theNewMediterranean Policyforthepromotionof
regionalcooperationand(b)broadeningtherangeof
projectcategorieseligibleforsupport.5.8.Inpromotingeconomiccooperationprojectsit
shouldbeensuredthatasmuchweightisgiventosocial
andenvironmental acceptabilityastoeconomiccriteria
inassessingthesuitabilityofprojectsforsupport.
5.9.InthespecificcaseoftheMiddleEasttheestab­
lishmentofeconomicinterdependence shouldhelpto
preventconflictsfrombreakingout.So,too,willfair
jointsolutionstotheproblemoftheuseoftheregion's
waterresources .5.3.Regionalprojectsinindustry,services,agri­
cultureandinfrastructureshouldbeidentifiedandpro­
motedwherepossibleonadecentralized level.This
couldbedonebybringingineconomicandsocial
organizations withdirectcontactswiththosecon­
cerned,particularlytradeunions,employerorganiza­
tions,liberalprofessions,consumers,etc.Special
emphasisshouldbeplacedoninvolvingsmalland
medium-sizedfirmsandcooperatives .Itisevenworth
promotingcontactsbetweenentitiesintheCommunity
andtheiroppositenumbers,whereappropriate :com­
panies,cities,universities,etc.6.Conclusions
6.1.TheCommitteehaswarmlywelcomedtheCom­
munity'ssupportforthepeaceprocess.Itasksthe
Communitytotakestepstoovercometheobstacles
whichhavearisenorwhichcouldariseinthefuture.
Peacefulsolutionsmustbefound,withfullrespectfor
humanrightsandallUNresolutions.5.4.Inspirationcanbedrawnfromthedecentralized
cooperationprogrammeswhichtheCommissionhas
launchedundertheNewMediterranean Policy:
—MED-URBS (cooperationbetweenlocalauthorities
inEuropeandintheMediterranean countries);6.2.ThisOpinionisdrawnupontheassumption
thatthepeaceprocess—themosthopefuldevelopment

NoC73/64 OfficialJournaloftheEuropeanCommunities 15.3.93
intheMiddleEastformanyyears—willsucceed.What
theCommitteehasendeavouredtoidentifyarethe
economicandsocialadvantageswhichawaitthe
peoplesofthearea,oncetheusuallyintractablepolitical
problemsaresolved.
6.3.Themainobjectivesofregionaleconomiccoop­
erationwouldthenbe(a)topromotetheefficiencyof
economies,(b)toestablishbalancedeconomicand
socialstructuresand(c)tohelpreduceexcessiveimbal­
ancesinincomedistributionsoastopreventinternal
andexternaltensions.6.5.Everyeffortmustbemadetoidentifyrepresenta­
tivesocialpartnerswithwhomtocooperateand,where
thesedonotyetexist,toencouragetheiremergence.
6.6.Atanappropriatestage,ameetingwithMiddle
Easternorganizationsshouldbeenvisaged.
6.7.LiftingofallvestigesoftheArabboycotton
tradewithIsraelwouldbeaconfidence-building
measure,aswouldIsrael'sceasingtodenythePalestini­
ansoftheOccupiedTerritoriesequaleconomicand
socialconditionsandequalaccesstotheIsraeliand
foreignmarkets.
6.8.Israel,forherpart,needstorespectinternational
lawinherpoliticalandmilitarycontroloftheOccupied
Territories,whichhasattractedwidespreadcondem­
nation.
6.9.Oncepeacehasbeenachieved,itwillbenecess­
aryforthecountriesoftheregiontoacceptthattheir
developmentwithinaregionalframeworkwillbeto
theiradvantage.6.4.ECcooperationwiththeMiddleEastStates
shouldtakeaccountoftheCommunity'sdecisionto
makeaidconditionalonrespectforhumanrightsand
thedevelopmentofdemocracy,implementingtheguide­
linessetoutintheCouncilResolutionof28November
1991.
DoneatBrussels,28January1993.
TheChairman
oftheEconomicandSocialCommittee
SusanneTIEMANN