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Partnership revisited
Published in Al-Ahram Weekly on 16 - 11 - 2006

Does the European Neighbourhood Policy promise more or less for the southern Mediterranean partners in the Barcelona Process, wonders Sherine Nasr
The southern neighbours on the Mediterranean were promised by their northern partners immense prospects of welfare and greater integration when the Barcelona Process (BP) was launched in 1995. More than 10 years later, very little has been achieved in the realm of economic integration. But now there seems to be another opportunity to better the lot of south Mediterranean countries, including Egypt. The European Neighbourhood Policy (ENP), launched in 2004, offers a means to reinforce relations between North- South Mediterranean countries. But not everyone in Egypt is celebrating.
Negotiating the ENP initiative with Egypt began almost 15 months ago through two official roundtables, but no date has been given for finalising the agreement. According to Barbara Stacher of the EU delegation to Cairo, the neighbourhood policy complements Barcelona, as well as introduces a deeper and larger integration with Europe in economic, political and cultural arenas. Stacher was speaking at a workshop organised by Cairo University's Centre for European Studies and the Konrad Adenauer-Foundation entitled 'From Partnership to Neighbourhood... A Better Path for the Euro-Mediterranean Future?'.
Michael Ryan, of the EU delegation to Cairo, explained that the new policy will build on mutual commitment to common values such as good governance, respect for human rights, the principles of market economy and sustainable development. These objectives and others would be implemented through action plans based on a common set of principles according to each country's needs, capacities, common interests and priorities. "The action plans will provide a point of reference for the programme of assistance to the countries concerned," Ryan told the seminar.
Looking at the economic and trade provisions of the ENP action plan for Egypt, it appears too good to be true. For example, the EU will support Egypt's development programme, modernisation and reform objectives, while continued liberalisation of agricultural products and services will ensure that Egypt will have easier access to EU markets. Since the ENP entails a substantial reduction of non-tariff barriers on agricultural, processed agricultural and fishery goods, "products will have easier access into the European markets without any additional testing or certification procedures," noted Stacher.
In the area of trade, Egypt would enjoy progress on regulatory convergence and adoption of EU technical norms and standards, while technical help will also be extended to apply international accounting standards.
Such is the European offer to Egypt and other south Mediterranean neighbours, but naysayers in Egyptian economic circles are doubtful of the new policy. Primarily, it is unclear whether the ENP is a complete shift in Europe's outlook to the south, or if it's a revised continuation of the Euro-Med Partnership Agreement.
The European Commission has said that the ENP does not replace the BP, but Ahmed Ghoneim, associate professor of economics at Cairo University, feels there is still ambiguity there. "The BP is between the EU and South Mediterranean countries on a bilateral basis, whereas the ENP is between the EU and a larger set of countries," Ghoneim told Al-Ahram Weekly. "This could imply that the new policy will dilute Barcelona because the EU is likely to divert its attention to new neighbours."
Other economists feel the terms of the new policy are not fair. Heba Handoussa, professor of economics at the American University in Cairo argued that concessions should be made for the advantage of the weaker party, but "unfortunately this is not the case with Europe and Egypt." Handoussa cited the example of when Japan allowed its neighbour South Korea to become the first exporter of textiles and the absolute producer of steel. "That was done in a very orderly manner; this is what a good neighbourhood policy is all about," she asserted.
According to Ghoneim, EU trade policy in the region has always been in flux, where southern neighbours are adapting to a policy and a new one is readily introduced by the EU. "The EU has always been swinging in its regional trade policies between the need to have harmonised regional policy, and the need to consider the specificity of each country it is partnering with," argued Ghoneim. As a result, the EU has continuously changed its policies towards south Mediterranean countries, because "the balance between achieving the two objectives is difficult," said Ghoneim.
Handoussa doubts that any trade successes will result from the ENP, since trade negotiations were always a divisive issue within the BP framework. "This is why we failed to have any substantial figures to be proud of on the trade front," she pointed out.
Ambassador Nehad Abdel-Latif, the secretary-general of the Permanent Secretariat of the Egyptian European Association Agreement at the Ministry of Foreign Affairs, strongly disagrees with these arguments. Abdel-Latif stressed that Egypt negotiates as an equal partner with the EU, and that the BP and the ENP are not one-sided, developed by the EU and forced on Egypt.
"Just because Egypt is less developed, this does not mean that it is not an equal to its EU partner during negotiations," Abdel-Latif pointed out, adding that negotiations have taken 15 months so far because "We have priorities we must meet. These are priorities in the government's economic reform programme, and not being dictated by the EU as some may imply," she insisted.
The official continued that the ENP is but one tool to develop Egypt, and viewing it as the only means to do so cannot be further from the truth. "Egypt has long committed itself to an overall reform programme; it will go ahead with it whether it has a European partner or not."
The EU's Ryan too asserted that "the ENP is negotiated on the basis of dignity and pride of each [party]."


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