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Regional economic integration in the Maghreb

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Regional economic integration in the Maghreb
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When studying the Maghreb from the point of view of regional integration, the picture is rather uncertain. In this context, admissions of failure are not as important as acknowledging the gap which separates the stated ambitions of regional leaders and the low level advancement of initiatives. Three key issues might push Morocco towards greater integration and regional cooperation.

Firstly, the security approach, which is centered on the war against terrorism. Then, the political and historical approach, which is grounded in a belief in the unity of North African peoples (linguistic, religious and historic), and which leads to the notion of a moral duty to unite the Maghreb. Lastly, the economic approach, founded on certain market complementarities, a pragmatic vision of an economic union to attract foreign investment and a desire to gain a better position in international and regional negotiations. These three dimensions can be combined in a functionalist model, wherein success in one of these dimensions would positively affect the others.

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The economic approach, based on the European model, has given the most hope to advocates of a Maghreb Union. We might note, for example, that if certain roadblocks—mainly political—prevent regional integration, the pragmatism of economic elites can provide a way out through “the politics of trust” or “the politics of baby steps.” These same policies allowed for the creation of a Maghreb Arab Union (UMA) in 1989. Thus, the present paper is structured around such a pragmatic approach, and is limited to economic rapprochement between Morocco, Algeria, and Tunisia. In Morocco, the only African member of just one regional organization (UMA), a number of voices publicly call for regional economic integration. Tunisian officials and entrepreneurs consistently campaign for the creation of a more all-encompassing Maghreb market. This is also the case in Algeria, where entrepreneurs and experts see the need to endow the region with a greater economic space.

To the North of the Mediterranean, the European Union (EU) already exists. Economic integration for the three Maghreb countries is dependent on their relationship with the EU in negotiations. In its European Neighborhood Policy (ENP), the EU proposes various types of partnerships to these countries, such as an “advanced partnership” and the prospect of securing a free trade area in the Mediterranean region by 2012. These political developments naturally require both Morocco and Tunisia to negotiate with the EU. However, the creation of a common market in the Maghreb could to some extent reinforce the influence of these countries on Mediterranean-related matters. In light of these conclusions, we might offer a three-part analysis: first, a consideration of the challenges faced by economic agents in these countries; second, an examination of the obstacles that might be encountered; and finally, a contemplation of potential ways of improving Maghreb economic integration.

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