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The Arab Maghreb Union By Eray Basar

Comprehensive Information on Complex Crises

Excerpted from 15 January 2013

This document provides the In Focus excerpt from the MB Weekly 08 14 January 2013. The In Focus section of the weekly gives our readership a more detailed reporting of an event or topic of particular relevance in the Mediterranean Basin and other regions of interest. In Focus pieces provide hyperlinks to source material highlighted and underlined in the text. For more information on the topics below or other issues pertaining to the region, please contact the members of the Med Basin Team, or visit our website at www.cimicweb.org.

As highlighted by the Secretary General of the Arab Maghreb Union (AMU) Habib Ben Yahia, Islamic countries in general, and the Maghreb region in particular, face agricultural, financial, and social crises that impose cross-border challenges and which require cross-border solutions thereby suggesting a joint action and cooperation in the Maghreb is essential. The Arab Maghreb Union, which comprises the five North African countries of Algeria, Libya, Mauritania, Morocco and Tunisia, exists to strengthen historical ties and ensure regional stability and cooperation. An initial attempt at regional integration was made in 1964 among the same countries, with the exception of Mauritania, through the establishment of the Permanent Consultative Committee of the Maghreb (PCCM). Though never fully operationalised, the initiative was designed to harmonise development efforts and coordinate trade among the four countries and enhance relations with the European Union (EU). In 1988, new factors brought the leaders of the five states together in Algeria to establish various commissions, including the Maghreb High Commission, subsequently signing a treaty to establish the AMU in 1989. In addition to strengthening ties among its members, the AMU aims at freer movement of persons, services, goods and capital, and the integration of policies. The common policy outlined in the treaty encompasses diplomatic cooperation, safeguarding of the independence of each member, realising the industrial, agricultural, commercial, and social development of member states through joint projects, and the establishment of a cultural, religious and educational exchange network. The AMU has never reached its full potential, as long-standing quarrels amongst the member countries have impeded its effectiveness. In particular, relations between Algeria and Morocco remain deadlocked over Western Sahara. Morocco, refusing any concession on Western Sahara, has complained about Algerian support to the Polisario front for the independence of the disputed territory. As a result, borders between the two countries have remained closed for over a decade and bilateral trade has been subjected to numerous tariff and non-tariff barriers. In addition, relations between Mauritania and Libya became strained in 2005 when Mauritania accused Libyan secret services of involvement in an attempted military coup in Mauritania. Algerias domestic struggles in 1990s the cancellation of election results when an Islamist party gained majority votes, the ensuing civil war and the rise of Islamist fundamentalism and terrorism further hindered the AMU. Mauritania implemented structural reform programmes under the supervision of the International Monetary Fund (IMF) and World Bank. Tunisia and Morocco focused more on their bilateral relations with the EU. While the countries of the AMU signed over thirty agreements on varying subjects, including trade, tariffs, investment guarantees, taxation, and phyto-sanitary standards, only five of them were actually ratified by all five members. Although each country showed a rise in the volume of aggregate bilateral trade among the member states, intra-AMU trade is still very limited. North Africa accounted for the lowest intra-regional trade figures in the world at only three per cent. Despite the setbacks of the pre-Arab Spring period on the operations of the AMU, recent months have brought some positive developments for the union. Following pro-democracy movements in these countries, the Maghreb community revived the AMU, conven-

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ing the first meeting of the council of foreign ministers in eighteen years in February 2012. During the meeting, Algeria emphasised the need to structure the AMU on the mutual interests of the members. On 08 August 2012, Libyas Prime Minister Abdel-Rahim al -Keeb said during a visit to Morocco that an active and serious AMU should be realised. Moreover, Keeb called for Moroccos help in rebuilding the new Libya. Recently, US Senator Joe Lieberman remarked that Moroccos peaceful political reform model and autonomy initiative for Western Sahara is serious, credible, good, and realistic, following a visit to Morocco in late August. Although the direct impact of the initiative on the AMU is yet to be seen, it is likely to improve Algerian-Moroccan relations, thereby improving the overall effectiveness of the union. Highlighting the potential benefits of an active AMU, the EU also urged the North African partners to strengthen their ties. EU foreign policy chief Catherine Ashton said the Maghreb is a region with enormous human, economic and cultural potential. We welcome the calls from partners in the region for closer cooperation and deeper integration between them, and added that citizens on both sides of the Mediterranean stand to benefit. Discussing a study related to the region, Ashton noted that the Maghreb is one of the least integrated regions in the world; however, studies indicate that ameliorated ties between the members of the AMU can add wealth equal to one to two per cent of their GDP annually. To that end, the AMU launched new initiatives such as a new pan-Maghreb university and science academy. Libyan Education Minister Mohamed al-Faitouri Soualem announced the plans to establish such an institution after an AMU ministerial committee meeting with Moroccan Prime Minister Abdelilah Benkirane. Another recent AMU initiative is an investment bank to finance infrastructure projects in the five member countries. According to the Governor of the Central Bank of Mauritania, Sid Ahmed Ould Raiss, the bank was inaugurated by the AMU with USD 100 million in capital to finance development projects, such as highways, promoting new technologies and also investing in energy and added that [t]he bank is destined to finance infrastructure programmes in the energy sector. The Head of the IMF Christine Lagarde said the bank would increase integration and investment in the region. It is also expected that the initiative will create more jobs and improve security in the region. Maghreb Country Statistics

Country

Population (2012 Estimates) 35.4 million 6.7 million (Est. date N/A) 3.3 million 32.3 million 10.7 million 88.4 million

GDP (USD)

GDP Per Capita (USD) 5,244 9,957 (2006 data) 1,151 3,054 4,297 --

HDI

Algeria Libya Mauritania Morocco Tunisia TOTAL

188.6 billion 62.3 billion(2006 data) 4 billion 100.2 billion 45.8 billion 400.9 billion

0.698 (medium) 0.760 (High) 0.453 (Low) 0.582 (Medium) 0.698 (High) --

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