Speech on the Occasion of the Signature of the Agadir Agreement 25/02/04

The EU and Morocco - close partners in regional leadership

Speech and debate with diplomatic representatives & press;
Rabat, Morocco

18 June 2001

It is an honour to have the opportunity to address such a distinguished audience on a subject of great importance to the EU. Our partners on the southern flank of the Mediterranean have a privileged place in our external relations. It is why we all came together at Barcelona in 1995 to forge new ways of working together, in a regional partnership.

At this time of great difficulty in the Middle East the values and objectives of the Barcelona process are more relevant than they have ever been: working together for peace and stability; improving mutual understanding and tolerance; and creating shared prosperity. Ours is a long term agenda. The countries of the region are increasingly calling on the EU to play its role as a political partner and to move beyond its traditional function as a provider of "trade and aid". And we want to respond positively to this call, to re-affirm the importance of the Mediterranean region for the EU and to find new ways of giving visible and concrete expression to our partnership.

When I started as a Commissioner almost two years ago I felt that our partnership was not reaching its full potential. A lot of good work had been done, but there was frustration on both sides of the Mediterranean that we had not achieved more. This feeling prompted the Commission to "reinvigorate" the Barcelona Process and to set out a range of ambitious ideas designed to upgrade and extend the Euro-Med partnership.

I soon realised I was not alone in my concerns. At the Euro-Mediterranean Foreign Ministers meeting in Marseilles last November our ideas fell on fertile ground. After important contributions from our main partners, not least Morocco, I was happy to see that our proposals received an overwhelming endorsement.

It is my firm belief that we must stay focused on a clear set of short and medium term goals. In framing these goals, we have had the courage and vision to be ambitious, but we have also shown pragmatism by ensuring that we can deliver on what we promise. Actions speak louder than words. It is no longer enough that our partnership is important; it is time for it to deliver concrete results.

Where am I looking for these concrete results? Let me touch on two areas – the conclusion of Association Agreements and targeting of MEDA as an instrument to support these Agreements. Nothing would provide a more positive sign of our mutual determination to make the Barcelona Process work than a concerted effort to speed up the negotiation, signature and ratification of the Association Agreements. Morocco, along with Tunisia, were trailblazers here, and are already benefiting from the much deeper relationship which Association brings. Agreements with Israel and the PLO were also reached some time ago. The one with Jordan should very soon enter into force. And we are expecting the Agreement with Egypt to be signed before the summer break.

Negotiations for similar Agreements with Algeria, Lebanon and Syria are now well underway. Our aim is to conclude talks with Algeria and Lebanon this year, and with Syria soon afterwards. So, by the time of the ‘Barcelona V’ summit in Valencia next April, it will be obvious to all that we have achieved the critical mass necessary for our ambitious plans.

And ambitious they are: together, we are starting to lay the foundations for a vast free trade area which spans both sides of the Mediterranean. Our Euro-Mediterranean agreement ought to be a dynamic instrument – evolving with developments in the Union and the world. So, when Euro-Med Trade Ministers met in Brussels at the end of May to built further on the conclusions of Marseilles, they agreed to set up Working Groups on cumulation of origin and liberalisation of services. These may seem to some of you dry and bureaucratic themes,. But they will make a major contribution towards increasing the attractiveness of the region to foreign investors and hence to translating the aims of our partnership into reality.

But let us not shy away from the more difficult areas of our trading relationship, either. Agricultural trade, for example, must be looked at frankly and honestly. We must examine the best ways of bringing further liberalisation to this sector, subject to a gradual and reciprocal approach, which will benefit all our people. The agriculture negotiations between the EU and Morocco, due to start later this month, will provide the forum for frank and honest discussion on this sensitive sector.

Of course arguments will always arise between close trading partners with a mature relationship. They arise in our relationship with the US just as they arise in our relation with Mediterranean partners. The important thing is that we do not let these minor spats interfere with our overall relationship which is of far greater and longer term importance. All that this requires is good will and a joint determination to keep occasional trade disputes in perspective. And to try hard to manage and solve them.

The EU is prepared to provide financial support in ensuring that our Barcelona objectives are met. This brings me to the second area where I believe we can work on concrete, tangible results: namely a better use and targeting of MEDA. It is fundamentally important that MEDA II be focused on the aims of the Association Agreement. Let me take an example of the type of focus I am talking about: MEDA is supporting a regional Euro-Med Market programme which will identify ways of bringing various aspects of the regulatory frameworks of our Mediterranean partners closer to those of the EU. This process of alignment is crucial to make a reality of a single Euro-Med market, operating under similar rules, allowing each partner to develop its comparative advantage to the full. Focussing our cooperation in key areas of our agreements such as rules of origin, customs, norms and standards and protection of intellectual property rights will naturally foster more foreign investment in the Mediterranean which is so badly needed.

With the Association Agreements in place and MEDA focused on assisting in their implementation, we will be on the right path for reinvigorating the Barcelona process and for delivering greater wealth and prosperity to our people.

But there are some further obstacles which prevent us from harvesting the full benefits of the Barcelona process. Let me mention the most worrying one: the paucity of south-south investment and trade.

It is no secret that investors looking at this region today see that it is compartmentalised into small and separate markets, with conflicting standards and norms. They often decide to take their money elsewhere, where they can secure greater returns. With a different approach and the help and support of the EU the situation could be very different as soon as tomorrow. Look at the candidate countries of Eastern Europe: as they have integrated among themselves and aligned themselves to the single market, they have enjoyed a massive increase in investment! This has helped create jobs, increase trade and stabilise their economies. We are keen to press ahead, in a similar way, with those willing and able to do so among our Mediterranean partners.

That is why I welcome the leadership Morocco has shown in encouraging further south-south integration. The country which helped to give birth to the World Trade Organisation clearly understands what businesses want. The declaration by Morocco, Tunisia, Egypt and Jordan at Agadir on 8 May stating their intention to establish closer links among themselves through the creation of a free trade area marks a decisive and crucial step forward that I warmly support.

This sort of sub-regional integration – open to other partners- is the best practical method to move ahead in our partnership towards the overall objective of a Euro-Med free trade area by 2010. We fully support your efforts. And we stand ready to assist you in this process in any way we can, political, technical and financial:

- Successful integration of this sort requires that the necessary infrastructure should be in place. We are ready to help develop transport, energy and communication links between the countries in the region. The European Investment Bank can finance hard investment. And the MEDA programme can be used more to work on regional and sub-regional strategies like the interconnection of transport and telecommunications and the rationalisation of the use of ports.

- The cumulation of origin which I mentioned earlier should also be able to make an important contribution, as it has historically acted as a powerful stimulus for regional co-operation and integration. The recently created Working Group on rules of origin is particularly important, as at present we are far from having the harmonised rules of origin which are such a necessary precursor to cumulation. Quite the opposite. For historical reasons, there are no less than eight different sets of rules of origin in the Association agreements with our Mediterranean partners!

Nevertheless, with the political will and plenty of hard work, there is no reason why in the future a fabric couldn’t be produced in Germany or Egypt, dyed in Hungary and made into a dress in Morocco for export to France without paying any duty.

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Thanks to history, politics and geography, the EU has always enjoyed an extremely close relationship with Morocco. We are now acting as partners, with both of us spearheading efforts at regional integration among our neighbours as a precursor to the ultimate goal of a Euro-Med free trade area.

And if this close partnership enables us to do even more together, within the context of the Barcelona process, then why not try? We are studying with great interest the ideas of the Moroccan government for a deeper association among us. They are full of good ideas and contain a lot of common sense. Some of the ideas (like an agreement on services and cumulation of origin), are already being explored. But on others it will make sense to continue to forge ahead and show regional leadership.

For example we should take greater account of the human dimension in our relations. Legal immigration has brought incalculable benefits to the EU. I am fully convinced that migrants from Morocco and other partner countries have helped to meet labour shortages and brought a diversity of cultures which has enriched all our lives. They have also provided valuable income for their families back home. It can only be right that we examine together ways of enhancing their status.

But immigration must be managed if it is to remain a force for good. It is equally important that we clamp down on illegal immigration, and punish those who grow rich on the misery of others by trafficking in human beings. Our first EU/Morocco meeting on Migration takes place just three days from now (21 June) and I am sure it will prove a valuable forum for discussing these ideas in a comprehensive and global manner. We want to have a frank and open discussion on these sensitive issues and to listen to ideas from our partners, not to impose solutions.

I hope these EU-Morocco discussions will become the motor for wider moves towards regional co-operation in justice and home affairs within the Barcelona process. In this context, I would also like to see progress this year on treatment of asylum-seekers and refugees, on judicial co-operation to improve transparency and access to justice, and on the fight against drug trafficking and organised crime. No doubt you will also have priorities in this field and I look forward to seeing what we can achieve together.

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Thanks to our experience in regional integration, the EU is today a beacon of stability. Our unique model of solidarity, our sense of civil society, our commitment to free trade and the rule of law, have all helped to encourage the spread not just of wealth and prosperity, but also of peace.

Now, as we put the finishing touches to our internal market and prepare for the circulation of the single currency, we are starting to raise our eyes to new horizons. We are looking for partners who share our goals. Partners who are willing to take a lead in integrating with their own neighbours. Who can join us in creating a network which reflects the full diversity of human cultures, while encouraging prosperity and protecting the values we all hold dear. I believe Morocco is such a partner. Together we have both the opportunity and the duty to build a new relationship which can meet the aspirations of all our people. We will continue working closely together with Morocco so that we do not dash those high and well-deserved hopes.