COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE EVALUATION of the impact of trade chapters of the Euro-Mediterranean Association Agreements with six partners: Algeria, Egypt, Jordan, Lebanon, Morocco and Tunisia
Date: 2021-11-10
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: Algeria, Egypt, Jordan, Lebanon, Morocco, Tunisia, association agreement (EU), free-trade agreement, liberalisation of trade, trade agreement (EU)

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   EUROPEAN COMMISSION  Brussels, 10.11.2021  SWD(2021) 322 final  COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE EVALUATION  of the impact of trade chapters of the Euro-Mediterranean Association Agreements with six partners: Algeria, Egypt, Jordan, Lebanon, Morocco and Tunisia {SWD(2021) 319 final}  
 
 
In  December  2018  the  Directorate  General  for  Trade  (DG  Trade)  of  the  European 
Commission  commissioned  a  study  on  the  impact  of  trade  chapters  of  the  Euro-
Mediterranean Association Agreements (Euro-Med AAs) with six partners: Algeria, Egypt, 
Jordan,  Lebanon,  Morocco  and  Tunisia  (Southern-Mediterranean  countries;  SMCs).  The 
study was prepared by external consultants – Ecorys, Case and Femise.  

The Euro-Med AAs between the European Union (the EU) and the six SMCs were signed in 
the  late  1990s  in  view  of  meeting  the  objectives  of  the  1995  Barcelona  Declaration, 
including  the  establishment  of  a  free-trade  area  (FTA).  As  a  result,  one  of  the  key 
components  of  the  Euro-Med  AAs  are  the  bilateral  Euro-Med  free-trade  areas  (Euro-Med 
FTAs) that aim on the one hand to promote and liberalise trade between the EU and SMCs 
and  on  the  other  hand,  to  enhance  intra-Med  trade  through  intra-regional  integration  and 
cooperation. 

The purpose of the evaluation was to assess the extent to which the objectives of Euro-Med 
FTAs  were  met.  This  was  achieved  by  following  four  criteria:  effectiveness,  efficiency, 
coherence and relevance. The evaluation period covered data available three years prior to 
the date the Euro-Med FTAs came into the force up to the latest available data.  

Based  on  the  analysis  carried  out,  the  Commission  services  concluded  that  the  Euro-Med 
FTAs  have  largely  delivered  their  objectives.  The  Euro-Med  FTAs  have  been  effective  in 
having positive effects on trade, GDP, welfare, consumers and workers in both the EU and the 
SMCs. They have also had a positive impact on social indicators, with no major unintended 
consequences  in  this  area.  Likewise,  environmental  impacts  appear  to  have  been  small  and 
mixed, while the Euro-Med FTAs are found to have facilitated trade in environmental goods. 

All SMCs have gained in terms of welfare and income. However, due to  the differences in 
initial  tariff  levels  and  because  of  the  gradual  erosion  of  the  effective  Euro-Med  tariff 
preferences  due to  external  factors, the Euro-Med FTAs  have  generated  fewer new market 
access opportunities than may have been intended. Nevertheless, the goals of the Euro-Med 
FTAs to expand the trade relationship and to safeguard existing market access for the SMCs 
to  the  EU,  which  would  have  been  lost  without  the  SMCs  have  been  achieved. 
Diversification and economic complexity of exports of SMCs have recorded improvements 
since the entry into force of the Euro-Med FTAs.  

Regional  agreements,  such  as  the  Agadir  Agreement  and  the  Regional  Convention  on  pan-
Euro-Mediterranean  preferential  rules  of  origin,  which  was  a  step  in  promoting  greater 
harmonisation and simplification of rules of origin in the region, were inspired by the Euro-
Med FTAs and were building blocks in the process of promoting intra-Med trade. 

With regard to efficiency of the Euro-Med FTAs, the analysis of effects in the areas of social 
and  human  rights  and  environment  showed  that  the  costs  of  the  Euro-Med  FTAs  related  to 
sustainability  brought  by  different  stakeholder  groups,  where  they  occurred,  were  either 
proportionate  to  the  benefits  or  smaller.  Direct  costs  of  compliance  of  the  Euro-Med  FTAs 
have not been found to be a major issue either. However, other inefficiencies and remaining 
regulatory  costs in  areas covered only partially  by  the  Euro-Med  FTAs  have  remained high 
and  some  estimates  suggest  that  they  may  have  larger  impacts  than  the  tariff  liberalisation 
brought  about  by the Euro-Med FTAs.  This  concerns mainly regulatory  non-tariff measures 
(NTMs)  as  well  as  barriers  to  FDI,  services  trade  restrictions  and  inefficient  business  and 
institutional environments. This suggests that the remaining NTMs and other regulations are 

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relevant as they create inefficiencies and costs, which affect the functioning of the Euro-Med 
FTAs.  

The objectives of Euro-Med FTAs have been coherent and supported the wider objectives 
of  the  Euro-Med  AAs,  the  European  Neighbourhood  Policy,  Partnership  Priorities  and  the 
EU Global Strategy for Foreign and Security Policy. This was particularly the case in areas 
where  stronger  commercial  relations  provided  strong  incentives  to  cooperate  (e.g.  political 
dialogue, regional co-operation or economic infrastructure).  

In terms of relevance, the current  framework of Euro-Med  FTAs  is  not fully coherent  with 
the  Communication  on  Trade  Policy  Review  from  18  February  2021  and  the  revised 
objectives  stated  in  the  Joint  Communication  on  Renewed  Partnership  with  the  Southern 
Neighbourhood.  In  line  with  these  Communications  the  EU  is  therefore  ready  to  modernise 
the trade and investment relations with  the interested SMCs, to better adapt them to today’s 
challenges. 

To conclude, the overall findings of the evaluation demonstrated therefore that the Euro-Med 
FTAs have worked quite well in terms of achieving their specific objectives and overarching 
goals.  The  Euro-Med  FTAs  have  played  a  significant  role  in  fostering  Euro-Med  trade  and 
they remain relevant for trade in goods between the EU and SMCs. 

However,  there  are  also  issues,  which  have  been  identified  as  affecting  the  performance  of 
these Euro-Med FTAs and where additional efforts are needed to enhance their relevance for 
current  trade  challenges  faced  by  the  EU  and  SMC  partners  (e.g.  addressing  non-tariff 
measures, reinforcing Euro-Med FTAs implementation, improving the business environment 
in  SMCs,  reviewing  the  coverage  of  the  FTAs  and  enhancing  sustainable  development  and 
regulatory cooperation). These issues continue to be of key importance in order to bring the 
expected benefits of the Euro-Med FTAs to both sides.  

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