Patten seeks to boost EuroMed ties

Date: 03/08/00

By Simon Taylor

EXTERNAL Relations Commissioner Chris Patten is to offer southern Mediterranean countries a series of social welfare programmes to offset the effects of greater economic liberalisation.

The move is designed to encourage nations in the region to sign association agreements with the EU.

European Commission officials say the institution will make a renewed effort in September to push for new association accords as part of moves to build a Mediterranean free-trade area by 2010. To date, agreements have only come into force with three of the 12 countries participating in the EuroMed programme, with another two in the process of being ratified.

Progress on striking accords has been limited because countries in the region have been concerned about the social impact of the industrial and trade liberalisation required under such deals. "That is one reason why Egypt has not signed its agreement and why Syria, Lebanon and Algeria have not finished negotiations," said one official.

Patten will therefore propose a range of programmes to deal with the social consequences of association accords.

The Union is keen for countries to sign individual agreements as a way of revitalising the five-year-old EuroMed programme, which seeks to strengthen economic and political relations between the EU and 12 southern Mediterranean countries.

While the EuroMed countries are major trade partners of the Union, with around half of the region's imports coming from the EU and half of its exports going to the Union, trade between countries in the area itself is low, accounting for only 5% of overall flows. The region has also a poor record in attracting investment from the EU, which stands at only around 2%, because of the fragmented nature of the area's markets and high shipping costs.

Officials say Patten's proposals will also contain new elements designed to boost human rights, democracy and the rule of law, and greater cooperation on justice and home affairs. They add that the new initiative will enable the EuroMed process to make progress whether or not the Arab-Israeli peace negotiations succeed. "Whether a country decides to open up its economy to trade and investment with the EU is, in a way, nothing to do with the outcome of the peace process," said one.

The attempt to inject new life into the EuroMed process comes just ahead of the 13 September deadline set by the Palestinians to declare an independent state if negotiations with Israel fail to reach a mutually acceptable settlement. The EU has pledged to recognise the Palestinian state if the peace talks are not successful.

But Union diplomats said they would keep up pressure on the two sides to hold further negotiations before then. They insisted that despite the failure of the recent talks at Camp David in the US to produce an agreement, progress had been made on a number of key issues which had been taboo subjects until recently, including the status of Jerusalem and refugee returns.

External Relations Commissioner Chris Patten is to offer southern Mediterranean countries a series of social welfare programmes to offset the effects of greater economic liberalisation. The move is designed to encourage nations in the region to sign association agreements with the EU.