or thermal, and the coordination of transport,
roads, railways, airways(1),
maritime transport andcommunications would achieve
economy and facilitate development»
So. far as the reduction or elimination of tariffs and other trade impediments are concerned
(quotas,
administrativeprocedure)
etc., the author of this study is not
enthusiastic about the
conven¬tional and general types of economic integration. The free trade
area where tariffs and other resetrictions are reduced or abolished and the restrictions against the outside world are maintained by
the individual country and the customs union where the latter are uniform for all the members of the union are examples of these types
of conventional overall economic integration schemes.
(2)
The fact is that the Maghreb countries trade vary little among each other
(1$
of their total trade is exchanged between them as mentioned earlier in thisstudy)
so any talk about creating a general free trade area, or a customs union would be futile. It might even hinder the efforts to conclude an economic integration agreement. Agriculture is always looked upon, in all countries, developed and underdeveloped, as a special case. Even in theEEC,
agriculture is protected by the member countries. In the Maghreb
conditions - as well as in all Africa - agriculture is still occupying a dominant place in the GDP and gives employment to a
high,proportion of the population.
Hence,
every countrywould
protect its peasants for political, economic and social reasons,
and because they are very often the least developed group in these
countries. Hence, neither
the
political nor economic reasons, notthe a«ount of agricultural goods traded between the Maghreb countries
(ï)
There are some steps taken to establish a joint Maghreb air¬line and to coordinate the maritime lines.
(2)
There are also "higher" types such as common market, economic union, complete economic integration etc.would suggest this so-called overall reduction or elimination of
trade restrictions Agriculture also, as our analysis in the first chapter shows, cannot he an effective means to achieve a higher rate
of development.
"Integration industries" alone in our scheme would enjoy this sup¬
pression of trade harriers or the free access to the Maghreb market. This
is the essence of economic integration via industrialization which
is synominous to economic development.
(ï)
One problem is worth mentioning here regarding the free trade area and customs union, as it has a hearing on the free access of agreed
industrial products of the entire Maghreb market. This is the problem
of the origin of the manufactured products. In a customs union there
is a free exchange not only of goods produced in the union, but also
of goods imported from other countries and re-exported as they are to
a member country, provided that import duties and regulations are im¬
posed on them by a member country. There is no danger here as the producers' interests are protected by a uniform tariff and common trade policy.
(2)
-In a free trade area there is the danger that a country with the
lowest tariffs and the least trade restrictions against the outside
(ï)
There is no objection to any facilities, or favourable treat¬ment between all the Maghreb countries or between or three of them in any item other than manufactured goods, in so far as it is accepted by the partner which gives the privilege. Indeed
this would create a favourable atmosphere for further cooperation.
What we emphasized here is that the general or partial reduction
or abolition of trade barriers in those items other than the in¬
dustrial products agreed upon, would result in complications and,
if agreed upon at all, would be of little importance in the
economic development of the integrated area.
(2)
There is a possibility here that a shift of customs receipts cantake place for reasons other than tariffs
(such
as lower trans¬port costB, improvement in the ports, or simple and quick import
procedures),
if a third country prefers to pay tariffs to a member country other than the member to which the goodsare sent.Here a stipulation could be put in the agreement to pay tariffs
to the latter.
IDEP/ET/2340
Page 89.
■world would re-export to- a member country with high tariff an imported commodity which in a free trade area would have free access to the
latter's market and this would cause shifts in trade movement. Some shifts in production would also occur by shifting existing pro¬
duction units or establishing new units of production in the country
where the terms of imports of raw materials, intermediate goods and
other inputs ...re more favourable than in the other member countries.
(ï )
In this case the exchange of goods in a free trade areax ' should
be subject to the rules of "-origin". Thjjs principle implies that goods which will have free access to other members' markets should
have the "origin" of the area. This can be demonstrated by certifi
cates of origin, and would not raise any problem in the case of goods
which contain materials and values from the integrated area.
The difficulty arises in the case of goods in the production of
which a member country utilizers imported materials. To consider these goods aB "originated" in the area, they should be produced in
the area, and the imported materials used in their production should
not surpass a limit which would cause shifts in the course of pro¬
duction which would result from the difference in the import systems
of the member countries.
Shifts in the course of trade movement and of production as well
as in the customs receipts can take place as follows;
(a)
a member country with lower tariffs etc. imports goods from a third country and re-exports these goods to an¬other member country and claims the advantages of the preferential system.
(ï)
This agreement is relevant to our scheme., of integration becausethe "integration industries" will have free access to the whole
Maghreb market in something like a free trade area for "inte gration industries" products.