Wednesday, August 27, 2025

EU SEEKS TO CREATE MEDITERRANEAN TRADING BLOC AS CHINA ALTERNATIVE

 in-cyprus 27 August 2025



The European Union is preparing a comprehensive Mediterranean trade agreement aimed at deeper economic integration with North African and Middle Eastern countries, as Brussels seeks to diversify away from China and Russia amid strained US relations.

Several EU countries are pushing to use a forthcoming EU strategic deal over the Mediterranean to drop trade barriers with selected North African and Middle Eastern states and have them “align with EU single market rules”, according to a European Commission document seen by Euronews.

The proposal is outlined in a summary prepared by the European Commission before April 2025, which contains inputs by EU member states, partner countries, and stakeholders on the upcoming Pact for the Mediterranean.

Diversifying trade exchanges away from Russia and China has been emphasised by European Commission President Ursula von der Leyen since the beginning of her second mandate.

The pact for the Mediterranean, expected to be presented by the EU executive in mid-October, is intended to establish a combination of existing and new bilateral agreements between the EU and selected Mediterranean countries across various sectors.

The pact relates to Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Tunisia and Syria. “Consultations will also seek to incorporate the perspectives of neighbours, notably the Gulf countries and Türkiye, recognising their significant strategic interests, contribution and influence within the region,” the document states.

Through this initiative, the European Commission seeks to strengthen integration in the Mediterranean region, particularly in light of commercial instabilities with traditional allies such as the United States.

“Many [EU member states] propose modernising existing agreements and eliminating trade barriers, with calls to align with Single Market rules and support convergence in sectors like digital, energy, environment, and labour standards,” the document reads.

However, this is not the first time Brussels has attempted to launch trade integration among Mediterranean countries. In 1995, the “Barcelona Declaration” saw partners agree to create a Euro-Mediterranean Free Trade Area, which has never been realised.

The EU already has a preferential trade agreement with Mediterranean countries through the Pan-Euro-Mediterranean Preferential Rule of Origin Convention, a multilateral trade agreement which harmonises rules of origin and includes EU countries, EFTA members, Western Balkans, Mediterranean partners, Georgia, Ukraine and Moldova.

But the Mediterranean Pact document indicates EU member states are seeking to go further in trade links with the region.

“Some [EU member states] highlight the importance of inclusive trade, lower tariffs, and practical market access through tools like Global Gateway” and advocate for modernising existing conventions.

Partners have points of convergence in trade-related matters but also desire “regulatory alignment, market access and support for local producers”.

Mediterranean countries express “support for regulatory harmonisation to attract investment and build joint value chains in digital, transport, and clean energy”.

Cross-border agro-industrial value chains, customs modernisation, green label export schemes, and adoption of amended rules of origin are also proposed.

Emphasis is placed on simplifying trade procedures, supporting SMEs and green enterprises, and easing non-tariff barriers through structured dialogues.

Partner countries also show interest in aligning with EU digital governance and customs systems as well as simplification of border procedures.

Proposals include GDPR-inspired laws and e-government tools, whilst “a group of partner countries prioritises convergence in clean energy and environmental standards”.

(information from Euronews)