50 | Central and West Asia and North Africa (CWANA) Report

not an exception. It has seen many regional and bilateral trade agreements emerge among neighboring countries. For instance, Egypt concluded 30 to 40 agreements (ESCWA, 1998b). Turkey entered into a customs union with the EU in 1996 and the Maghreb Union was established in February 1989. With the establishment of the WTO in 1994, it was expected these countries and regional blocs would review their trade policies to make them compatible with multilateral trading principles. According to article 24 of the General Agreement on Tariffs and Trade (GATT), regional blocs should facilitate trade among the members without restricting trade with other WTO members. The main concerns of these countries with the WTO are the compatibility of common tariff rates to which they are committed by joining WTO; specific binding restrictions in market access; domestic supports and exports subsidies; a common market with GATT provisions for regional blocs to foster their position in multilateral trade negotiations; and tariff structures under the most-favored-nation status in previous bilateral or regional trade agreements (Zaibet et al., 2003).

Since the 1990s, many countries of the Mediterranean region (namely North African and Middle Eastern countries) have signed partnership agreements with the European Union (EU). These countries are liberalizing their economies under the euro partnership conditions, a process which is strongly influenced by the EU's common agricultural policy (CAP). Since negotiations have started, trade policies have been revised, local and regional structural programs have been undertaken and a lot of changes have taken place at the international level. As a result of the above transformations the CWANA countries have expressed concern with regard to open market policies and access to industrialized country markets.

2.2.3.2 Trade negotiations and expected benefits

By joining WTO, developing countries in particular have sought more access to industrialized country markets and to gain advantages in international markets. The Doha Declaration has set milestones on a number of trade and nontrade issues known as the Doha Development Agenda. However, given the achievements of past negotiations, observers remain skeptical that a new comprehensive round can be completed in the coming years (Miner, 2001). The big players are expected to make additional policy reforms (e.g., trade legislation in the USA and CAP reforms in the EU) before undertaking strong concessions and commitments in the upcoming negotiations.

Benefits from agricultural trade liberalization have not materialized for two reasons. First, negotiations on agriculture alone do not consider comparative advantages. As a result, the Doha Declaration provided for broad trade negotiations to further trade liberalization for industrial products and services in which nations may take advantage (Merlinda, 2002). Second, national policies and legislations are creating additional transaction costs and limiting liberalization. Gerber (2000) pointed out that trade relations remain far denser within nations than between nations and indicate significant transaction costs across national boundaries.

Besides recurrent issues, new concerns are presumed to be on the table during coming negotiations (Zaibet et al., 2003). The main issues already identified in GATT on

 

agriculture involved market access, export competition and domestic support. However, new trade and nontrade concerns are emerging (Tables 2-8 and 2-9). The agreement on agriculture included food security issues, food safety and quality, environment concerns, resource conservation and rural development (Miner, 2001). Additional issues raised in the last meetings included animal welfare, biotechnology, species preservation, safeguarding the landscape, poverty reduction and preservation of rural culture (Miner, 2001).

Newer border and trade topics included rules of origin, standards and technical barriers, intellectual property rights, SPS standards, dispute settlement and the role of small countries (Gerber, 2000). Among the nontrade, domestic policy issues are foreign investment, competition policies and labor and environmental standards.

Export markets for many developing countries are in a few countries in the North because of proximity and historic links (Diao et al., 2002). As a result, trade negotiations will be shaped by regional blocs. North African and Middle Eastern countries are increasingly interested in the EU agricultural markets and the EU agricultural reforms under the CAP agenda 2002 (Table 2-10).

The work program annexed to the Barcelona Declaration has the following objectives for the countries that signed the declaration:

  • Integrate rural development
  • Support policies implemented by the Mediterranean countries to diversify production
  • Reduce food dependency
  • Promote environmentally friendly agriculture

2.2.3.3 Challenges and relevance to AKST

Effects of the European Union enlargement. Enlargement of the EU to the Central and Eastern European countries is integral to the EU Agenda 2000. The process started following the decisions of the European Council in 1993 in Copenhagen and 1994 in Essen to be achieved by 2004. The enlargement of the EU could open new frontiers to more exports. It may, however, divert foreign investment to the eastern EU countries and prevent CWANA access to new technology.

Food safety and environmental quality standards. With the decline in traditional trade barriers, such as tariffs and quotas, there is evidence that technical and regulatory barriers are increasingly used instead (Wilson, 2001). In developed countries, many firms are moving toward adopting environmental standards. This move is relatively slow in CWANA countries and might be an obstacle to international trade. Environmentally friendly agricultural practices. Current trends to protect the environment are illustrated by the EU provision of direct payment to farmers complying with environmental regulations and support of agricultural methods that protect the environment. These trends could spread low tillage or no tillage techniques along the region and could replace current practices.

2.2.4 Professional and community organizations

2.2.4.1 Turkey-case study

Although agricultural education and research were started