Multilateral or Regional Agreement: The Case of Mediterranean Non-EU Countries
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Middle East and North Africa (MENA) countries are at a crossroad regarding potential trade reforms. The EU is not only the world's largest market for the region's agricultural products, but also remains the prime outlet for these Mediterranean countries' exports. An applied general equilibrium model is used to assess the impact of various trade reform options in the region. Results suggest that the region might benefit most under special provisions for developing countries. Under global trade reform, MENA preferences with EU might be eroded, with EU Mediterranean countries like Greece benefit the most with global trade reform.