The Euromediterranean Free Trade Area: A New Form Of Regional Cooperation?
In this paper the practicability of a free trade area has been examined. The classical Viner’s trade creation and trade diversion effects have been considered, and although they refer to a static analysis it can be shown that they still may lead to important conclusions in terms of welfare and trade. The dynamic effects have, however, also been considered being these that make the major contribution to the growth of a developing country. This analysis has been then applied to a concrete case, that of the participation of Morocco and Tunisia to the Euromediterranean free trade area (EMFTA). The aim is to assess whether the EMFTA is the right tool available to foster the economic growth of the non European Mediterranean countries. From the analysis it appears that alternative measures are needed in order to accomplish the goal of the co-development as stated in the Barcelona declaration. Strategic integration is the model identified in order to develop such measures.
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