The center-left Washington-based foreign policy research center the Carnegie Endowment for International Peace has a new report out this month entitled "EU and U.S. Free Trade Agreements in the Middle East and North Africa" written by visiting scholar and economist Riad al Khouri. The complete, 24 page document can be read
here (as a .pdf file).
I have taken the liberty of condensing the gist of the report into a few paragraphs as a favor to readers with a disinclination toward reading the whole document in its entirety:
• According to the author, even though so-called "Free Trade" agreements (also known as FTAs) between the West (primarily the US and members of the EU) and Middle East / North African (MENA) countries, can be considered to have some beneficial elements toward the target countries and their citizens, the agreements have more importantly
had the effect of strengthened the negatively-held perceptions among the citizens of these developing countries of “western-led globalization,” because they "benefit unpopular elites and impose serious short term economic adjustment." • Trade activity between the US and MENA countries grew in a "relatively balanced manner", while those FTAs between EU-member nations and the Mediterranean region
favored the EU.
• Bilateral security cooperation between the United States and MENA countries
strengthened after signing free trade agreements.
• The US is seen as being more supportive overall of "full" trade agreements with MENA countries; Agreements between EU nations and Middle East / North African countries in contrast d
o not include agriculture and immigration provisions.
Al Khouri concludes that:
The current US and EU initiatives are a step in the right direction, but they alone cannot lead to robust, sustainable growth in the [MENA] region or create regional stability. The overall growth and precarious stability that the region has been able to achieve still has little to do with bilateral economic links with the US or the EU. Nevertheless, FTAs and similar agreements show signs of increasing importance for both the West and the MENA region, with implications for EU and US trade relations with other regions as well.
According to the analysis, the US’s free trade efforts in the MENA region differ radically from those initiated by EU governments, even if both can be seen as being increasingly vigorous. Al Khouri argues that there can be "no doubt that all the Western trade efforts aim to promote growth as a way to reduce poverty and hence migration and security concerns" from the Developing world. Thus, even if international trade can not
by itself directly affect the macro conditions which can lay the eventual groundwork for war or peace, this bilateral activity
does in fact promote economic growth. Noting the fact that in general "increased levels of economic development tend to reduce the propensity for conflict", al Khouri argues that "there is a positive correlation between increased [volume of] international trade and long-term stability" for Developing countries.
Although that appears to be obviously contradicted by tragic news stories in many of these cases, it is argued that "the tension in the Middle East related to the Arab-Israeli conflict, the situation in Iraq, and non participatory governments
might mask the long-term stabilizing effect of economic development." How one could go about attempting to either prove or disprove the validity of this theory is far from obvious, however.
Finally, taken directly from the report's
conclusion section:
It remains unclear whether the U.S. accords will ultimately enhance American national security as they promote trade. Meanwhile, American bilateral security cooperation continues to grow stronger with the MENA countries that have signed FTAs with the United States. At the same time, economic relations between the United States and individual MENA states have expanded in a relatively balanced manner.
Conversely, the [ . . . ] multilateral approach to security has not succeeded from the MENA region’s perspective, and trade between the Mediterranean region and the EU remains one-sided. In 2000, Euro–Med was to produce a charter of peace and stability, but the effort was stifl ed because of the Israeli–Palestinian and Western Sahara conflicts. Security agreements with MENA states did not progress at the level of EU institutions, though at the bilateral level there has been some movement.
( . . . )
The balance of EU trade with the MENA region, without oil, has worsened from the southern perspective. This has not helped MENA economies to grow stronger, with negative consequences for their societies. If the EU could open up to the MENA region’s agricultural products and controlled immigration, the economic benefits for the southern Mediterranean would be very substantial.
Though that may well happen in the end, for the time being, the former step remains politically diffi cult, while the latter has a negative security component. For the United States, agriculture and immigration are not pressing issues in
relations with the MENA region, partly due to geographical distance. Thus, the United States is keen on full trade treaties with MENA countries, in contrast to the EU agreements, which leave agriculture aside.