Enhancing growth and shared prosperity
Southern Neighbourhood
TRADE & SMES PRESS PACK
Enhancing growth and shared prosperity
EU & Southern Neighbourhood
T R A D E & S M A L L B U S i N E S S E S P R E S S PAC K
June 2014
Sustainable and inclusive growth: an EU priority in the region
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Euro-Mediterranean trade partnership
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Support for SMEs and job creation
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Regional initiatives to support small businesses
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Boosting entrepreneurship amongst youth, a UfM priority
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SUCCESS STORIES
A passport for exports VIDEOS
This publication exists only in electronic format. It has been prepared by the European Neighbourhood Info Centre, a project funded by the EU. It does not represent the official view of the EC or the EU Institutions. The EC accepts no responsibility or liability whatsoever with regard to its content.
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Lebanon - The new trade routes of old natural soap
Starting a business? Yes I can The new trade routes of old natural soap ‘Made in Agadir Zone’: what hope for ambitious vision of the future?
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Sustainable and inclusive growth: an EU priority in the region
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In response to the events of the ‘Arab Spring’, in March 2011 the EU offered to Southern Mediterranean partner countries “A partnership for democracy and shared prosperity” in the context of the European Neighbourhood Policy. The partnership is founded on an incentive-based approach supporting partners that are committed to reforms. It focuses on three elements: democratic transformation; a partnership with people and civil society, and sustainable and inclusive growth. Two months later, with the joint Communication on "A new response to a changing Neighbourhood", the High Representative and the Commission spelt out more concretely the EU’s new policy approach and proposed to allocate substantial additional financial resources to support democratic transition. Democracy cannot take root unless accompanied by inclusive, smart and sustainable economic development with opportunities for all. Based on this premise, the joint communications of March and May 2011 called on the Southern Mediterranean Partners to support the adoption of policies conducive to stronger, sustainable and more inclusive growth, facilitating trade, innovation and investment partnerships, developing Small and Medium Enterprises (SMEs) and promoting industrial co-operation.
1 2a 2b The EU’s new approach to support the Southern Mediterranean Partners to achieve these reforms seeks to:
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Contribute to providing growth and jobs and addressing people's economic expectations, especially those of young people.
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Support the promotion of small and medium-sized enterprises, job creation and training;
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increase trade, partly by setting up Deep and Comprehensive Free Trade Areas between the EU and the partner countries. Facilitate European investments in the region. Develop human capital and invest in knowledge and innovation as key drivers for social economic development and job creation.
“Our priority has been to identify ways to further enhance trade and investment relations with Southern Mediterranean neighbours that are clearly engaged in democratic and economic reforms.” EU Trade Commissioner Karel De Gucht
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Euro-Mediterranean trade partnership
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The key objective of the trade partnership is the creation of a deep EuroMediterranean Free Trade Area, which aims at removing barriers to trade and investment between both the EU and Southern Mediterranean countries and between the Southern Mediterranean countries themselves.
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Mediterranean trade relations are managed mainly through the EuroMediterranean Association Agreements. Euro-Mediterranean Association Agreements are in force with most of the partners (with the exception of Syria and Libya). The scope of these agreements is essentially limited to trade in goods and a number of bilateral negotiations are on-going or being prepared in order to deepen the Association Agreements. These ongoing or future negotiations are related to further liberalisation of trade in agriculture, liberalisation of trade in services, accreditation and acceptance of industrial products and the establishment of a Deep and Comprehensive Free Trade Area (DCFTA).
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A single regional convention on Pan-Euro-Mediterranean rules of origin was signed in 2011. The Regional Convention establishes a single set of preferential rules of origin among the EU, the EFTA States, and Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the Palestine Liberation Organisation (for the benefit of the Palestinian Authority), Syria, Tunisia, as well as Turkey and the countries of the Western Balkans. In parallel, work to implement the working priorities agreed at the Union for the Mediterranean Trade Ministerial Conference in 2010 continues, in particular:
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Establishing an information tool on trade and investment conditions in the Euro-Mediterranean region. Reinforcing cooperation on the fight against piracy and counterfeiting
The EU has completed so far four rounds of negotiations for a Deep and Comprehensive Free Trade Agreement (DCFTA) with Morocco. The deal should strengthen EU-Morocco trade relations building upon existing agreements, including the Association Agreement of 2000 and the agreement on agricultural, processed agricultural and fisheries products of 2012. Morocco is the first Mediterranean country to negotiate a comprehensive trade agreement with the EU. The Commission has also a mandate to start a similar process with Tunisia, Egypt and Jordan.
Strengthening cooperation in industrial sectors
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EU & Southern Neighbourhood The Southern Mediterranean region represents 8.6% of total EU external trade. Trade has been rising steadily over the years, with EU exports rising from a value of €148.9 billion in 2010 to €174.5 billion in 2012. Imports from the region to the EU rose from €132.5 billion in 2010 to €154 billion in 2012. DG Trade – Euro-Mediterranean partnership
TR ADE & SMALL BUSiNESSES PRESS PACK "The EU remains strongly committed to an ambitious agenda that can enhance growth and prosperity on all sides of the Mediterranean.” EU Trade Commissioner Karel De Gucht (2010)
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http://ec.europa.eu/trade/policy/countries-and-regions/regions/euro-mediterranean-partnership/ Support to trade development in the Southern Mediterranean programme (€4 million) In 2013, the European Commission announced it would launch a new programme for ‘Support to trade development in the Southern Mediterranean’ with the aim of contributing to trade development and economic integration in the region through the implementation of the Agadir Agreement. Signed in 2004 by Egypt, Jordan, Morocco and Tunisia, the Agreement aims to promote faster economic integration and establishing a Mediterranean Free Trade Area, which is designed to remove barriers to trade and investment between both the EU and Southern Mediterranean countries and between the Southern Mediterranean countries themselves. The programme follows on a project funded by the EU from 2004 to 2012 to support the Agadir Agreement.
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Export Helpdesk: A one-stop-shop on how to export to the EU In 2013, the European Commission launched a new version of its online Export Helpdesk initially launched in 2004. This free online service, available in English, French, Arabic, Russian, Spanish and Portuguese is a one-stopshop explaining to business in developing countries how to export to the EU. In just in a few clicks, businesses can find EU requirements, taxes, tariffs, preferential arrangements, rules of origin and statistics that apply to their products.
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Euro-Med Trade Helpdesk In 2014, the European Commission launched the Euro-Mediterranean Trade and Investment Facilitation Mechanism project, a joint initiative between the European Union (EU) and the International Trade Centre (ITC) with the objective of developing a Euro-Med on-line information service and associated help-desk (Euro-Med Trade Helpdesk). The Euro-Med Trade Helpdesk will contain comprehensive information on requirements and taxes, import tariffs, preferential arrangements, trade statistics, business contacts and news.
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Support for SMEs and job creation
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Small and medium size enterprises (SMEs) have a critical role to play in job creation. To thrive, they need a sound regulatory framework, conducive to business and entrepreneurship. As part of its commitment to help the countries of the region to re-invigorate their economies and to deliver sustainable and inclusive growth, development of poorer regions and job creation, the EU supports policy dialogue and cooperation under the Euro Med industrial work programme. This should be accompanied by integrated employment and social policies, including matching of training initiatives and labour market needs, social dialogue, provision of social safety-nets and transformation of the informal sector. The new generation ENP Action Plans include substantial sections on improving investment climate and regulatory convergence with the EU acquis. The EU has put forward multiple initiatives to support the promotion of SMEs and job creation. These included measures to enhance the business climate, to stimulate key industrial sectors and infrastructures contributing to the sustainable development of SMEs, to promote education and training, and to facilitate access to markets and investment. The Commission's 2011 communication on SME Internationalisation "Small Business Big World'' promised to support the creation of a businessfriendly environment in neighbouring countries. The key reference document for promoting SMEs in the Mediterranean region is the 2004
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Euro-Mediterranean Charter for Enterprises. Knowledge, tools and good practice are also shared at regional workshops with the support of TAIEX (Technical Assistance and Information Exchange) and SIGMA (Support for Improvement in Government and Management). The European Commission is also allocating a grant to the OECD to evaluate the SME environment in the Mediterranean. To strengthen industrial cooperation, European entrepreneurs also participated in Missions for Growth led by European Commission Vice-President Tajani to Morocco and Tunisia in November 2012, and Israel in October 2013. In Tunisia, an EU-Tunisia Council for Entrepreneurship was launched that will allow business to advise the Tunisian government on business climate improvements.
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The European Commission supports the efforts of the European investment Bank’s Facility for Euro-Mediterranean Investment and Partnership (FEMIP) to promote sustainable economic growth in the Mediterranean Partner Countries through investments in infrastructure and especially in private sector development. The EC contributes to FEMIP through a funding envelope of €32 million per year, which provides capital to the private sector on terms that are not available locally. This is done mainly through risk capital operations, and facilitated through technical assistance.
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Regional initiatives to support small businesses A new €50 million SME investment scheme called SANAD ('support' in Arabic) was launched in August 2011 with German bank "Kreditanstalt Für Wiederaufbau" (KFW), aimed at the business segment which is too small for banks, but too large for micro finance. The Neighbourhood Investment facility (NIF) was mobilised to enable the European Bank for Reconstruction and Development (EBRD) to provide technical assistance to local enterprises and help them attract extra investments. A €5 million contribution was made to the EBRD’s Enterprise Growth Programme and Business Advisory Services for work in the region. http://www.sanad.lu/home The investment Security in the Mediterranean (iSMED) Support Programme was launched in November 2013. This €1.5 million regional programme seeks to increase infrastructure investment in the Southern Mediterranean by providing advice to governments on reducing the legal risk of specific investment projects. In parallel, the EU launched the ISMED Risk and Cost Sharing Toolkit, providing targeted measures such as support to risksharing mechanisms and guarantee schemes. The NIF will underpin this initiative, which is intended to raise at least €2 billion. http://www.enpi-info.eu/mainmed.php?id=587&id_type=10 In an effort to boost private business and investment within the EuroMediterranean region to contribute to an inclusive economic development, the European Commission is funding the Euromed invest project (EU Support to business and investment partnerships in Southern Mediterranean). The project aims to empower Euro-Med business and investment networks to implement targeted strategies in support of SME development in specific sectors: agri-food, water and alternative energies, tourism, transport and logistics, cultural and creative industries. http://www.enpi-info.eu/mainmed.php?id=612&id_type=10
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In 2013, The European Commission launched the programme “Private sector development in the Southern Mediterranean” with a budget of €12 million, to help develop the private sector in order to create jobs for young people, a key factor in achieving more inclusive development. Specifically, the programme aims to foster the development of a conducive business environment for micro, Small and Medium Enterprises (mSMEs) in the region, to develop quality EuroMediterranean networks providing adequate support and services for investing mSMEs, and to demonstrate the potential of cultural and creative industries (via pilot initiatives) in promoting inclusive growth. http://www.enpi-info.eu/mainmed.php?id=523&id_type=10
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In the framework of the Support for partnership, reforms and inclusive growth (SPRiNG) programme, the EU funds Support for SMEs, as well as an export development project implemented in Jordan and a Support programme for vocational training, employment and growth, including support for specific categories of SMEs. A support programme for agricultural SMEs is also implemented in Egypt. A €3 million project aiming at the enhancement of the business environment in the southern Mediterranean was launched by the European Commission in 2014. Its objective is to contribute to the improvement of the business environment for Micro, Small and Medium Enterprises in the southern Mediterranean region, in line with European / international best practices. The project seeks to: help the Euro-Med Industrial Cooperation Working Party to support economic modernisation and reforms; build the capacity of the Euro-Med Charter Coordinators to advocate the development of MSMEs; and facilitate access to financing for MSMEs.
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Boosting entrepreneurship amongst youth, a UfM priority Business Development is one of the six priority areas of the Union for the Mediterranean (UfM) which is engaged in the implementation of specific projects and initiatives focused in this area. Particular attention is devoted to Micro, Small and Medium Enterprises (MSMEs), vectors for innovation and economic growth in the Mediterranean region. The UfM Secretariat aims at assisting existing entities operating in support of MSMEs by assessing the needs of these enterprises, defining policy solutions and providing them with resources in the form of technical assistance and financial instruments. During the Mediterranean Economic Conference, organised in Tunis on 1718 September 2013, the Union for the Mediterranean launched The ‘Mediterranean initiative for Jobs (Med4Jobs)’, a flagship initiative to help increase the employability of youth and women, close the gap between labour demand and supply, and foster a culture of entrepreneurship and private sector development. One of the three focuses of the initiative is developing business enabling infrastructure for Small and Medium-sized enterprises (SMEs), such as incubators and coaching programmes.
“One of the priorities of the Union for the Mediterranean is to support SMEs as drivers of growth and job creation"
In an effort to support young women in the southern Mediterranean starting up their own business, the UfM launched a project titled ‘Young Women as Job Creators’, which aims at providing young women university students in Jordan, Morocco, Palestine and Spain with concrete information and advice about the process of setting up a company with concrete examples of young women entrepreneurs, acting as role models. They are further assisted by professional business creation trainers who additionally analyse the possibilities of their initial business ideas and help them in their entrepreneurship projects.
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SUCCESS STORIES A passport for exports Starting a business? Yes I can The new trade routes of old natural soap ‘Made in Agadir Zone’: what hope for ambitious vision of the future?
UfM Secretary General, Fathallah Sijilmassi
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Useful links DG Trade – Euro-Mediterranean partnership http://ec.europa.eu/trade/policy/countries-and-regions/regions/euro-mediterranean-partnership/ DG Trade - Sustainability impact assessment for the Euro-Mediterranean Free Trade Area (EMFTA) http://ec.europa.eu/trade/policy/policy-making/analysis/sustainability-impactassessments/assessments/#study-12 Export Helpdesk http://exporthelp.europa.eu/thdapp/index.htm SANAD Investment Fund http://www.sanad.lu/home
1 EU Neighbourhood Handbooks From the EU Neighbourhood Info Centre website, a number of different handbooks can be downloaded, offering tips to media professionals for improved coverage of EU cooperation activities, but also providing information on how to access EU funding or to navigate through EU jargon. A wealth of knowledge at your disposal, just a click away on www.enpi-info.eu.
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Investment Security in the Mediterranean (ISMED) Support Programme http://www.oecd.org/daf/psd/ismed.htm
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Union for the Mediterranean – Business Development http://ufmsecretariat.org/business-development/
EU Neighbourhood info Centre Economy resources Thematic webpage http://www.enpi-info.eu/thememed.php?subject=4 Features http://www.enpi-info.eu/list_type_med.php?id_type=6&newstype=0&country=0&subject= 4&eupolicy=0&infocentre=1&Submit=Submit Photo galleries http://www.enpi-info.eu/list_galleries_med.php?&subject=4&search=1
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Quotes http://www.enpiinfo.eu/list_type_med.php?id_type=11&newstype=0&country=0&subject=4&eupolicy=0&Submit=Submit Library documents http://www.enpi-info.eu/library/theme/economy
Images from across the Neighbourhood highlighting EU cooperation projects in the field of Economy. High-resolution pictures available for download here.
Export Helpdesk interview Export Helpdesk, your gateway to European markets
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EU Documents and Publications DG Trade – Statistics & documents on the Euro-Mediterranean Partnership http://trade.ec.europa.eu/doclib/cfm/doclib_section.cfm?sec=152&langId=en
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DG Trade - EU Trade country statistics http://ec.europa.eu/trade/policy/countries-and-regions/statistics/regions/#euromediterranean-partnership
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Joint Communication: A partnership for democracy and shared prosperity http://ec.europa.eu/commission_2010-2014/president/news/speechesstatements/pdf/20110308_en.pdf
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Joint Communication: A new response to a changing Neighbourhood http://ec.europa.eu/europeaid/where/neighbourhood/documents/communication_conjoint e_mai_2011_en.pdf
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Implementation of the European Neighbourhood Policy in 2012 Regional Report: Southern Mediterranean http://www.enpi-info.eu/library/content/implementation-european-neighbourhood-policy2012-regional-report-southern-mediterranean
EU Neighbourhood Library Our online database
Association and cooperation agreements with Southern Mediterranean countries http://ec.europa.eu/trade/policy/countries-and-regions/agreements/#_mediterranean
Action plans
Communication on SME Internationalisation: Small Business Big World http://europa.eu/rapid/press-release_MEMO-11-765_en.htm
Agreements Country reports
Euro-Mediterranean Charter for Enterprises http://ec.europa.eu/enterprise/policies/international/files/charter_11_dimensions_en.pdf
Declarations
Agadir Agreement http://www.agadiragreement.org/CMS/UploadedFiles/10ac3206-5a49-4dd8-833e0783d2ea4190.pdf
Strategy documents
Resolutions
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TR ADE & SMALL BUSiNESSES PRESS PACK The EU: a major donor for the Neighbourhood
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EU support to the region is mainly channeled through the European Commission’s Directorate General for Development and Cooperation – EuropeAid http://ec.europa.eu/europeaid
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The European Neighbourhood Instrument (ENI) funding approved for the period 2014-2020 is € 15.4 billion. The ENI replaces the European Neighbourhood and Partnership Instrument (ENPI), for which the funding was € 11.2 billion for the period 2007-2013. The new instrument provides faster and more flexible funding, allowing for incentives for best performers, to 16 partner countries to the East and South of the EU’s borders.
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Eastern Neighbours: Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine. Southern Neighbours: Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria*, Tunisia. * EU Cooperation with Syria is currently suspended due to the political situation
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