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Economic Implications of Europe-Maghreb Trade Agreements

Author

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  • Deardorff, A.V.

Abstract

This paper reviews the various economic effects on Algeria of accepting the European Union's invitation to enter into an economic partnership, as has already been done by two other countries of the Maghreb, Morocco and Tunisia. These Euro-Mediterranean partnerships consist primarily of the formation of free trade areas, FTAs, including the EU and the country involved, so my analysis is devoted primarily to the economic effects of an FTA. However, the occasion of forming an FTA also provides an opportunity to undertake several additional steps toward integration, which I also examine. These are 1) deeper integration, 2) extension of the FTA to include other neighboring countries, and 3) reductions in tariffs on imports from the rest of the world. The paper concludes that an EU-Algeria FTA would probably be good for Algeria, but the benefits can be substantially enhanced and the costs reduced by pursuing also one or more of these additional steps.

Suggested Citation

  • Deardorff, A.V., 1999. "Economic Implications of Europe-Maghreb Trade Agreements," Working Papers 442, Research Seminar in International Economics, University of Michigan.
    • Handle: RePEc:mie:wpaper:442
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    Cited by:

    1. Cao, Liangyue, 2010. "Solving Inequality Constrained Problems using GEMPACK," Conference papers 331932, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Keywords

    FREE TRADE ; INTERNATIONAL AGREEMENTS ; TRADE POLICY;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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