Maghreb Regional and Global Integration: A Dream to Be Fulfilled (Policy Analyses in International Economics)

Rising terrorist activity has led the Maghreb countries Morocco, Algeria, Tunisia, Mauritania, and Libya to focus on antiterrorism efforts, with the unintentional effect of putting economic reforms on the sidelines. Maghreb countries have tightened border restrictions on the flow of people and goods, reducing commerce and depressing economic activity. In fact, the Maghreb has one of the lowest rates of intraregional trade in the world. Growth has been modest, and other factors such as rigid economic structures, low productivity, and modest investment levels continue to hinder progress. Do these countries diverse circumstances present insurmountable obstacles for achieving cooperation and improving the standard of living? Can the United States and the European Union facilitate economic progress? This book explores such questions and proposes meaningful strategies. It presents two econometric models to assess the impact of various trade integration scenarios among the Maghreb countries and with the United States and the European Union, and outlines sector-specific recommendations in four key areas: energy, banking, transport and food. The authors advocate measures that should be included by the United States and the European Union in commercial agreements with their Maghreb partners. The measures are designed to accelerate the removal of tariff and nontariff barriers, and to raise the region s attractiveness to global firms.