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34 CHAPTER 2


Roadmap to guide their countries until 2010 and beyond. Among other things, the roadmap for agriculture trade, launched in 2005, provided for an increase in the liberalization of agricultural trade, including processed agricultural products and fishery products. The five year program retains the possibility of excluding a limited number of sensitive products given the possible negative impact on countries and sectors. It provides for progressive implementation and asymmetrical liberalization, recognizing the specific characteristics of each partner and development gap between the partner countries on the two sides of the Mediterranean. Finally, the liberalization process must also deal with NTBs to trade (European Commission 2006).


The U.S.–Middle East Free Trade Initiative The U.S.–Middle East Free Trade Initiative was proposed in May 2003 by the United States to increase trade and investment between Middle Eastern nations and the United States and others in the world economy. For some countries, Algeria, Lebanon, and Yemen, the U.S. efforts have been a first step in expediting their accession to the WTO. As a second step, the United States may enter into Trade and Investment Framework Agreements, as have Algeria, Egypt, Tunisia, and Yemen. Finally, the process may result in FTAs. To date, FTAs are in force with only Bahrain, Jordan, Morocco, and Oman. But these countries represent marginal U.S. trade partners. U.S. exports to the MENA region amount to less than 3 percent of total U.S. exports. Exports to the United States account for 12 percent of total exports for Egypt, 28 percent for Jordan, and 10 percent for Morocco but only 2 percent for Tunisia (MAcMapHS4 database 2004). These agreements are too recent to assess their impact, but the results of Thomas et al. (2008) suggest that Maghreb coun- tries, for example, are not expected to benefit as much from FTAs with the United States as from those with the E.U. because they face initially lower tariffs in the United States than in the E.U.


Both the E.U. and the United States have launched initiatives specific to the poorest countries. Under the Everything But Arms (EBA) initiative, the LDCs have duty-free access to E.U. markets for almost all goods, with three important exceptions: bananas, rice, and sugar.9 The African Growth and Oppor-


9 The European Commission committed to end the tariff quota regime for bananas by January 1, 2006. All nonpreferential suppliers would be subject to a MFN tariff, whereas bananas from the African, Caribbean, and Pacific Group of States (as well as bananas originating in the LDCs under the Everything But Arms Initiative) would continue to enter duty free. On January 1, 2006, with the change of the import regime, a reform of the banana Common Market Organization was launched. Honoring the agreement concluded in 2001 with the United States and taking into account the results of arbitrations within the WTO, the E.U. substituted a tariff-only regime for the previous system of import quotas by region of origin. A customs duty of C


=176 per metric ton


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