This paper addresses the variety of static and dynamic impacts that the Euro-Med Agreements (EMA) may have on the MENA economies. It first considers options for trade and domestic policy reforms, including the context in which policies are designed and implemented and the range of policy options spanning unilateral measures, multilateral measures, and preferential arrangements such as the EMAs. It then sets out the comparative static and dynamic-growth frameworks for analyzing the effects of alternative policies. This is followed by a review of ex ante assessments of existing and proposed EMAs using CGE modeling and qualitative analysis and the potential dynamic effects that EMAs may bring about. Because EMAs are limited in scope, there is no guarantee that the MENA economies will realize significant dynamic benefits. Nonetheless, if EMAs result in enhancing policy credibility, the MENA economies might well improve their dynamic-growth prospects by instituting effective unilateral domesticpolicy reforms and aligning their foreign trade and investment policies more closely on
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