European Parliament resolution of 15 March 2007 on the construction of the Euro-Mediterranean free-trade zone (2006/2173(INI))
Date: 2007-03-15
Institutions: Committee on International Trade, European Parliament
Subjects: Union for the Mediterranean, customs cooperation, economic integration, free-trade area, trade policy

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20.
Demands an increase in the funding allocated to Frontex and to projects relating to immigration
policy in the Mediterranean and demands a strengthening of their capacity to ensure that human rights
are respected;

21.
Points out that, pursuant to European Court of Human Rights case law, European states cannot,
under any circumstance, send a person back to a State where he or she is likely to be subject to torture or
cruel, degrading or inhuman treatment, including the death penalty, without diplomatic assurances from the
countries of origin;

22.
Invites the EU Member States and their Mediterranean partners to carry out the necessary studies
concerning the transformation of the facility for Euro-Mediterranean Investment and Partnership (FEMIP)
into a Euro-Mediterranean Development Bank, considering the importance of that bank in driving the
private sector and in increasing investment in the area;

23.
Calls on the Commission and the Council to put forward a proposal allowing for the possibility of
cooperation, particularly in the financial and economic fields, between all partner countries and the member
countries of the Gulf Cooperation Council;

24.
Calls on the Council, the Commission and partner countries to continue to work towards gradual
integration of the Euro-Mediterranean energy markets, to establish energy programmes of common interest
and to develop sustainable energy sources,
in accordance with national plans and programmes and in
agreement with local communities;

25.
Stresses the need to strengthen cooperation on security of energy supply in the Mediterranean region
through the use of measures that involve the diversification of domestic energy resources, especially at local
and regional level, the promotion of energy efficiency, particularly at decentralised level, conservation meth-
ods, the development of new technologies that present no risk to either the environment or the public,
research and development activities and the strengthening of financial options for sustainable energy pro-
jects;

26.
Reaffirms the need to impart fresh impetus to the partnership process, particularly by breathing new
life into the Euro-Mediterranean Parliamentary Assembly, as the democratic framework for parliamentary
action; stresses that this Assembly should have the necessary resources at its disposal and administrative
structures in place so as to give it a high profile and to enable it to run smoothly; welcomes the first
meeting of the Mediterranean youth assembly;

Calls on the Council to reserve an active place for the EMPA among those parties invited to EuroMed

27.
meetings and ministerial conferences;

28.
Instructs its President to forward this resolution to the Council, the Commission, the Bureau of the
EMPA and the parliaments and governments of all the Member States and of the countries of the EuroMed
Partnership.

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,

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— 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 pro-
gramme to meet the challenges of the next five years’ (COM(2005)0139) and the annexes thereto
(SEC(2005)0482 and SEC(2005)0483),

Thursday 15 March 2007

— 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) strat-
egy paper of 12 May 2004 (COM(2004)0373), its communication to the Council of 9 December 2004
on its proposals for action plans under
to the action plans for
the Palestinian Authority, Tunisia and Lebanon, and to Regulation (EC)
Israel,
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),

the ENP (COM(2004)0795),

Jordan, Morocco,

— having regard to the conclusions of the Euro-Mediterranean Ministerial Conferences and Sectoral Min-
isterial 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 Luxem-
bourg 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,

(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.

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— 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 Condi-
tions 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 finan-
cial and technical measures to accompany (MEDA) the reform of economic and social structures in the
framework of the Euro-Mediterranean partnership (Codified version) (1),

— 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 Commit-
tee 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 politi-
cal 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 agree-
ments 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 globalisa-
tion and ensure a fair sharing of its benefits,

(1) OJ C 226 E, 15.9.2005, p. 42.

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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 devel-
oped 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;

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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 integra-
tion; 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;

Emphasises the importance of regional integration of the SEMCs and increasing South-South trade;
11.
welcomes the signature of the Agadir Free Trade Agreement of 25 February 2004 between Morocco, Tuni-
sia, 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;

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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;

Considers that, at the same time, effective measures should be taken against non-tariff barriers to

15.
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 ero-
sion 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 harmo-
nisation 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 com-
petitiveness 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;

Stresses the need to increase customs checks and make them more stringent, in order to combat
21.
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 assess-
ment 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 above-
mentioned sustainability impact assessment of the FTA at Ministerial level and to determine what the con-
sequences may be for the ongoing FTA negotiations;

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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;

Notes the good performance of the MEDA II programme during the period 2004-2006 compared
26.
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 14 930 000 000, so as to
meet the needs of the eligible countries more satisfactorily, on condition that this becomes a genuine con-
vergence 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 11 181 000 000 adopted by the Council on 17 October 2006 as insuffi-
cient; 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 agri-
cultural 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 Barce-
lona 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 enhance-
ment 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)

Notes that a lack of financial attractiveness acts as a major brake on FDI in the SEMCs, with negative

34.
effects on the region's economic growth;

Recalls that investments (1) have a very significant impact in terms of subcontracting, the propagation
35.
of know-how and meeting training needs in a region which as a whole is under-industrialised, and in terms
of job creation;

(1) Particularly investments in ‘greenfield’ sites.

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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;

Stresses the importance of dialogue between businesses on both shores of the Mediterranean in

37.
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 commit-
ments 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 stres-
ses 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 imple-
mented 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 popula-
tion, could not be achieved by simply liberalising market access for agricultural products;

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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 pro-
duct-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;

Points out that many Mediterranean countries have expressed the wish to preserve their trade pre-
47.
ferences vis-à-vis the Community market; considers that maintaining this preferential and asymmetric sys-
tem 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 mechan-
ised 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 compe-
titiveness of rural economies through diversification, local marketing and the production of specific quali-
ties;

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 considera-
tions, and to coordinating fisheries and water management;

Technical regulations and standards, intellectual property, competition

Considers that a harmonised EU/SEMC regulatory context would make it possible to expand and
52.
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 pro-
posed by the association agreements;

54.
Calls on the SEMCs to draw up and apply legislation on intellectual property which meets interna-
tional 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 intellec-
tual property legislation, not to ask SEMCs to go beyond the commitments required under the existing
TRIPs;

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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;

Regards the services sector as essential for the success of the free trade area; notes that the services
56.
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;

Stresses at the same time that a phased liberalisation of services, a sector of particular importance for
57.
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;

Notes the official opening of the negotiations on the liberalisation of trade in services and investment

58.
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

Believes that the development of a Euro-Mediterranean transport network based on modern inter-
61.
connections and the preparation of a common strategy for better cooperation, coordination and develop-
ment 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 infra-
structure 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;

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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;

Calls for the construction of a genuine Euro-Mediterranean energy market to become a matter of
66.
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 impor-
tant 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 pro-
vide 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 Magh-
reb 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 mea-
sures to improve energy efficiency; also calls on the SEMCs to introduce policies to encourage the develop-
ment 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;

Emphasises the role that first generation biofuels can play as an alternative form of energy, and also

71.
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 re-
launch 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 finan-
cing for the Mediterranean Environmental Technical Assistance Program (METAP);

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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;

Thursday 15 March 2007

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 simplifica-
tion 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 conse-
quences 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;

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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 pro-
duction chain in the countries of the Euro-Mediterranean area;

Science and technology

Is concerned about the slow progress being made by most of the SEMCs with regard to education
87.
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 devel-
opment;

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;

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

Stresses the importance of vocational training, which plays a crucial role in firms' development;
92.
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

Stresses that the EU's trade policy must not run counter to the objectives of its policies on develop-
93.
ment 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;

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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 pro-
grammes 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 coopera-
tion 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 com-
plemented 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

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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 Agree-
ments 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 neighbour-
hood policy and also the new presence of China in Africa, the objective of EU foreign policy in the Medi-
terranean 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;

*

*

*

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.

P6_TA(2007)0077

Bosnia-Herzegovina

European Parliament recommendation to the Council of 15 March 2007 on Bosnia-Herzegovina
(2006/2290(INI))

The European Parliament,

— having regard to the proposal for a recommendation to the Council by Doris Pack on behalf of
the Group of the European People's Party (Christian Democrats) and European Democrats on Bosnia-
Herzegovina (BiH) (B6-0615/2006),

— having regard to the agreement of 5 October 2005 between representatives of the State and constituent
Entities of BiH which endorses the basic principles set out by the Commission for the restructuring of
police forces,

— having regard to the Council's subsequent decision of 22 November 2005 to open negotiations with

BiH on a Stabilisation and Association Agreement,

— having regard to the agreement reached on 18 March 2006 between leaders of most of the main

political parties in BiH on a number of constitutional amendments,

— having regard to the Peace Implementation Council (PIC) Steering Board's decision of 23 June 2006,
whereby the Office of the High Representative (OHR) should immediately begin preparations with a
view to closing down on 30 June 2007,

— having regard to the fact that the PIC will review and, if appropriate, confirm the OHR closure in early

2007, taking into account the overall situation in the country and in the region,

— having regard to the recent presidential and parliamentary elections in BiH,