CASE Network Reports, Deep versus shallow integration, European Union Trade Agreements, Middle East and North Africa, CASE Reports, regional integration, South Mediterranean countries, Trade, economic integration and globalization

Shallow versus Deep Integration between Mediterranean Countries and the EU and within the Mediterranean Region


The paper aims at assessing the specific impact of shallow versus deep integration between Mediterranean (MED) countries and their partners in the European Union (EU) as well as between the MED countries themselves. It relies on dataset developed for this project concerning tariffs (as a proxy for shallow integration) and Non Tariff Measures (NTMs) (as a proxy for deep integration). Additional data are also included in order to take into account other trade costs, especially transport costs and logistics costs. In this regard, an original dataset of maritime freight cost (Maersk, 2007) is introduced as well as the trade logistics performance (TLP) index produced by the World Bank. Such datasets are useful for providing additional insight into deep integration.

Finally the study shows that there is a huge potential for enhancing trade amongst MED countries if trade costs are lowered, logistics is improved, and NTMs are abolished.