EU And Mediterranean Partners To Start Talks On Liberalising Services And Investments

by Ulrika Lomas, for LawAndTax-News.com, Brussels

23 November 2005

European Union ministers on Monday announced that they have decided to authorise the European Commission to open negotiations on the liberalisation of services and investment with the EU’s Mediterranean partners.

Issued a few days before the Euro-Mediterranean Summit of Barcelona, which will celebrate the 10th anniversary of the Euro-Mediterranean Partnership at the end of this month, this decision confirms that the EU is determined to give a new impetus to economic integration across the Mediterranean.

The liberalisation of services and investment is expected to bring considerable economic benefits throughout the Euro-Mediterranean region, and the negotiations constitute an important part of a wider strategy to boost trade within the region itself.

EU Trade Commissioner Peter Mandelson explained that:

“Today’s Council decision shows that the EU is ready to help the Mediterranean countries confront the economic challenges of the 21st century. Our common objective is the establishment of a genuine free trade area around the Mediterranean by 2010. The liberalisation of services and investment is an essential part of our strategy to achieve this."

"The gains that investment and services liberalisation can bring to both European and Mediterranean countries are considerable, larger even than those accruing from the liberalisation of trade in goods. These gains will be multiplied if we not only increase trade between the EU and the Mediterranean countries but also among Mediterranean countries themselves.”

Following this week's Council decision, the Commission will invite all the Mediterranean partners concerned to start services and investment negotiations early in 2006. This preferential process will be complementary to ongoing WTO negotiations, in particular since it will allow the parties to go further in the integration of their services markets than provided for under the European Neighbourhood Policy.

Discussions on services will be facilitated by the existence of the Istanbul Framework Protocol, which Euro-Mediterranean Trade Ministers endorsed as a basis for these negotiations in July 2004.

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