The Union for the Mediterranean: a rescue plan for Europe an opportunity or an opportunity for the Maghreb

B/ The Industrial Stake:

The most important feature of the working force in the Maghreb is the fact of being cheaper than in Europe. This represents an opportunity for Europe to consolidate its industry and a chance to sustain its economy. Therefore, the EU's manufactories tend to delocalize their production in low cost labor areas such as the Maghreb region. Hence, Maghreb countries would benefit from this phenomenon, in the sense that delocalization would create a considerable amount of jobs. Consequently, that would help the area to further resist to unemployment and to spare social unrest such depicted in Morocco and Tunisia in 2008.

A fair EU-Maghreb industrial collaboration would be beneficial for both parts of the partnership. Indeed, different industrial fields of collaboration could be explored in the frame work of the UfM. Moreover, it represents an opportunity for Maghreb states to attract further Foreign Direct Investments (FDI) and to foster employment. However, Different analysts diverge when it comes to collaboration. Indeed, some advise the creation of a plan of work that includes fields and subfields, in order to maximize the benefit for the Maghreb and EU as well. For instance, a circle of economist headed by Paul Verdine focused in their book «5+5=32»^19(*)on the classical field to explore such as energetic cooperation, agrarian collaboration and the promotion of textile industry. This group of brain storming on the UfM seems to neglect the field of services which is mainly embodied on «Nearshoring-Offshoring» platforms. In fact, this field is experiencing an important expansion thanks to Maghreb government's commitment to upgrade telecommunication infrastructure in a way to promote ICTs, so to make out of the region a platform of off-shoring services. For instance, pursuant to the 11^th plan of development (2007/2011), the Tunisian government is focusing on the field of technology and the establishment of a modern infrastructure to attract foreign investors and FDI. Hence, ICTs require a special care from Maghreb authorities, in order to further promote these new technologies of communication, Tunisia held in November 2005, the second phase of the World Summit on Information Society (WSIS), in order to highlight the commitment of the Tunisian government to make out of ICTs a booster for socio-economic prosperity and technological progress. Consequently, some Maghreb countries such as Tunisia and Morocco are witnessing the creation of important number of platform of services namely call centers and customer services to serve immediate European neighbors (i.e. France, Italy and Spain). So far, development offices expanded in the fields of architecture, urbanism, translation and engineering in a way to create job opportunities for the increasing number of job seekers in the Maghreb.

The benefits of Euro-Maghreb collaboration goes beyond the availability of cheap labor and the limitation of unemployment or bridging North-South divide. Indeed, there are other important stakes with a global impact to take into consideration. Therefore, in a growing climate of world economic competition, Europe seems to be in a crucial need to maintain its position as a world economic leader since emerging states and economic groupings are increasing in power and influence. In line with a long term perspective, Europe tends to make out of the Maghreb an asset that would help it to face the Asian and American concurrence. This foreign concurrence represents a real challenge for Europe and Maghreb as well. Indeed, a strong Euro-Maghreb partnership would consolidate both entities to face these worries. For instance, on April 12, 2001, Tunisia and Morocco which represent the most important European suppliers in textile products, made a deposit of a memorandum to the European Commission on which they express their worry about the impressive Chinese economic growth. In the memorandum, both countries alarmed that the European share of export in textile products diminished, from 49.4% in 1980 to 34.2 % in 2001, for the profit of the Chinese industry. Meanwhile, the Chinese share of production has increased, from 4.6% to 13.5% in the same period. Accordingly, Morocco and Tunisia suggested the action as an integrated space of production with the EU, in order to counter the Asian competition through a solid partnership and to secure employment and foreign investments in the Maghreb. Moreover, another concurrent is seemingly interested in the region. In fact, the United States of America targets the establishment of a free trade zone with Maghreb states and the whole Mediterranean region by 2015. This does not represent an imminent threat over Maghreb states. However, it is a source of unease for Europe since it aims to preserve the Maghreb region as a European asset. Thus, one may understand the reason of the range of efforts implemented by EU in order to make the Maghreb embracing an advanced economic partnership.

The establishment of a solid industry based on Contract Manufacturers^20(*) (CM) in the Maghreb region would consolidate the position of Europe as a world economic leader. In fact, the Maghreb represents a market for production as well as for commercialization. Hence, developing projects in Maghreb states would indirectly maintain the European industry. For instance, in December 2008, the important plane manufacturer Airbus delocalized in December 2008, the production of some components in Tunisia which formerly produced in France. Thereby, Airbus projects the construction of a manufactory for 100 million Euros and targets the creation of 1.500 jobs. As a result, Europe succeeded to gain a market, insured a cheaper production and consolidated its industry. Meanwhile, the Tunisian government succeeded to attract an important FDI and insured the creation of job opportunities. Such advanced partnership does not represent an exception in the region. In fact, there are other fields to explore in the whole Maghreb region. According to the French manufacturer of trains and tramways Alstom, the demand on tramways and TGV will increase by 3.7% a year in the coming decade. Accordingly, the Maghreb represents an important market to supply since Morocco aims at building a railway network for TGV, Tunisia targets to enlarge tramways' network and Algeria aims to have a subway and a network of tramways. This represents an opportunity for EU to insure market shares and to resist international competition as well as a chance for Maghreb states to upgrade their infrastructure and transport network with lesser cost since infrastructure upgrading is backed by the European Investment Bank (IEB) loans at low rates.

In addition to the industrial stake The Euro-Maghreb partnership tends to bridge the technological divide that separates the two entities. Indeed, effective partnership represents a further opportunity for technological transfer. Accordingly, Maghreb countries are trying to make out of the region a platform for industry and services designed for export to Europe. Moreover, the Euro-Maghreb partnership would launch these two entities into further interdependence. So far, to insure a better quality, Europe is urged to step its technological transfer in a way to develop technological infrastructure in the Maghreb. Thus, it would benefit for both sides, namely by overcoming the technological gap and foster quality in industry and services. Moreover, the establishment of a strong Euro-Maghreb partnership to stand against concurrence would significantly foster «South-South cooperation.»^21(*) In other words, the increasing in climate of world economic concurrence would help the Maghreb countries to overcome the lack of integration from which they suffer despite the creation of AMU in 1989. According to Abdellatif Jwahri, the governor of the Moroccan central bank, «the absence of «South-South cooperation» and a full integration, prevent the Maghreb region from 2 points in economic growth». In the same context, Pascal Lamy the Director-General of the World Trade Organization (WTO) adds; «the Maghreb should implement further integration to overcome different difficulties, namely the concurrence».

* 19

Le cercle des économistes et Hubert Verdine: « 5+5=32 ; feuille de route pour l'union pour la méditerranée ».

* 20

Contract Manufacturer ("CM") is a firm that manufactures components or products for another "hiring" firm. Many industries utilize this process, especially the aerospace, defense, computer, semiconductor, energy, medical, food manufacturing, personal care, and automotive fields.

* 21

South-South Cooperation is a relatively new UNEP initiative that is being promoted as an essential cross-cutting mechanism designed to enhance UNEP's ability to deliver capacity building and technology support activities in the field of environment in developing countries and regions of the South.