Trade agreements in the MENA region
Contribution to better governance
ByClaire Brunel, Gary Hufbauer
Pages 22

This chapter summarizes the multiple trade agreements entered into by countries in the Middle East and North Africa, the MENA region. It discusses with a snapshot of trade flows within the MENA region and between the MENA region and the rest of the world. MENA countries have entered into bilateral trade agreements with trade partners across the world. The countries have signed association agreements (AA)s with the European Union (EU). The EU implemented the Palermo Plan for the Free Movement of Industrial Products, which aims to help ENP countries adopt and implement EU legislation on technical regulation, standardization and conformity assessment. According to a World Bank study, most MENA countries have experienced declining export concentration trends. The study suggests that diversification is due to preferential trade agreements signed by the MENA countries. The trend in export diversification in the MENA region can be explained in part by lower barriers to FDI and thus increased FDI flows into the region.