This report on the new vision for Magreb economic integration argues that assessing the benefits from regional integration can best be done in the context of the broader issues of economic integration in the world economy and more specifically with the main trading partner, the European Union. Based on empirical evidence the paper finds that there is limited potential for intraregional merchandise trade integration in the Maghreb. The report also alerts that benefits from deeper economic integration are no means automatic. Several worldwide studies have argued that weaknesses in the investment climate not only hinder a country's imports and inward foreign direct investment, they also deter exports from enterprises operating in the domestic economy (World Bank, 2005). Service liberalization requires complementary policies and effective regulation, ranging from prudential regulation to pro-competitive regulation in telecommunications. The concluding message emerging from the analysis is that a strategy focusing on service sector and investment climate reforms aimed at facilitating market competition and contestability would improve growth, trade and investment performance in the Maghreb, bringing greater economic gains than would be derived from merchandise trade liberalization alone. The report is structured as follows. The first chapter examines the prospects of regional integration based on merchandise trade liberalization. It does so by performing a detailed quantitative analysis of Maghreb's trade and investment patterns and performance. The chapter also assesses Maghreb countries' trade and investment potential, drawing on panel trade and investment gravity models. The second chapter identifies policy barriers, relative performance and progress made by Maghreb countries in investment climate and service sector policy reforms. To allow for cross-country comparability, the report draws on the methodology developed by the European Central Bank for Reconstruction and Development (EBRD) to construct policy reform indexes for the Maghreb countries. The third chapter aims at estimating the economic gains from deeper and wider integration. The final section of the report summarizes the main conclusions and policy implications drawn from the analysis.

This report on the new vision for Magreb economic integration argues that assessing the benefits from regional integration can best be done in the context of the broader issues of economic integration in the world economy and more specifically with the main trading partner, the European Union. Based on empirical evidence the paper finds that there is limited potential for intraregional merchandise trade integration in the Maghreb. The report also alerts that benefits from deeper economic integration are no means automatic. Several worldwide studies have argued that weaknesses in the investment climate not only hinder a country's imports and inward foreign direct investment, they also deter exports from enterprises operating in the domestic economy (World Bank, 2005). Service liberalization requires complementary policies and effective regulation, ranging from prudential regulation to pro-competitive regulation in telecommunications. The concluding message emerging from the analysis is that a strategy focusing on service sector and investment climate reforms aimed at facilitating market competition and contestability would improve growth, trade and investment performance in the Maghreb, bringing greater economic gains than would be derived from merchandise trade liberalization alone. The report is structured as follows. The first chapter examines the prospects of regional integration based on merchandise trade liberalization. It does so by performing a detailed quantitative analysis of Maghreb's trade and investment patterns and performance. The chapter also assesses Maghreb countries' trade and investment potential, drawing on panel trade and investment gravity models. The second chapter identifies policy barriers, relative performance and progress made by Maghreb countries in investment climate and service sector policy reforms. To allow for cross-country comparability, the report draws on the methodology developed by the European Central Bank for Reconstruction and Development (EBRD) to construct policy reform indexes for the Maghreb countries. The third chapter aims at estimating the economic gains from deeper and wider integration. The final section of the report summarizes the main conclusions and policy implications drawn from the analysis.

An important question in the design of bilateral and regional free trade agreements (FTAs) covering services is to what extent nonmembers benefit from the trade preferences that are negotiated among members. This question is resolved through services rules of origin. The restrictiveness of rules of origin determines the degree of preferences entailed in market opening commitments, shaping the bargaining incentives of FTAs and their eventual economic effects. Even though the number of FTAs in services has increased rapidly in recent years, hardly any research is available that can guide policymakers on the economic implications of different rules of origin. After outlining the key economic tradeoffs and options for rules of origin in services, the paper summarizes the main findings of a research project that has assessed the rules of origin question for five countries in the ASEAN region. For selected service subsectors and a number of criteria for rules or origin, simulation exercises evaluated which service providers would or would not be eligible for preferences negotiated under a FTA. Among other findings, the simulation results point to the binding nature of a domestic ownership or control requirement and, for the specific case of financial services, a requirement of incorporation.

This report investigates the impact of the Multifibre Arrangement (MFA's) lapse on the Textiles and Clothing (T&C) sectors in four countries of the Middle East and North Africa region: Egypt, Jordan, Morocco, and Tunisia (the MENA-4). The phase-out of the MFA under the Agreement on Textiles and Clothing (ATC) on January 1, 2005, has led to a significant decline in international prices of textile and clothing products, benefiting consumers worldwide. But the lifting of remaining T&C quotas has also created tremendous pressures for retailers, distributors, and producers. Some of the most efficient producers, such as China and India, now free of quantitative limitations, are increasing their shares in major import markets at the expense of other countries. In all four countries, the T&C sectors play a crucial role in trade, foreign exchange earnings, and job creation. These countries are key partners in the Euro-Mediterranean Partnership and, through the Agadir Agreement, in the Greater Arab Free Trade Area group. In both contexts, specific industry and trade policies could maximize the opportunities presented by MFA removal. This report analyses the early effects of MFA removal on the MENA-4 and formulates concrete policy recommendations on how to mitigate its impact. The future of the T&C sector in the four countries has yet to be determined. With the right policies, decision makers can take advantage of the ongoing processes of "creative destruction." Policies should be devised to accentuate investment flow and employment creation, to mitigate the impact of employment losses, and to strengthen the international competitiveness of the sector.

Las estimaciones preliminares elaboradas por la División de Integración, Comercio y Asuntos Hemisféricos del BID indican que el crecimiento de las exportaciones latinoamericanas de 21 por ciento en 2006. Este es el cuarto año consecutivo con crecimiento, proyectándose las exportaciones totales a un nivel récord de 656 billones de dólares.

El crédito multilateral a los países en desarrollo puede estar disminuyendo en términos de participación de mercado, pero sigue siendo importante y no sólo por el efectivo que aporta.

Prepared by the Policy Wing of the IMF African Department, and published twice a year in English and French, this report analyzes economic performance and short-term prospects of the 44 countries covered by the Department. Topics examined in recent volumes include responses to exogenous shocks, growth performance and growth-enhancing policies, the effectiveness of regional trade arrangements, macroeconomic implications of scaled-up aid, financial sector development, and fiscal decentralization. Detailed country data, grouped by oil-exporting and -importing countries and other analytical groupings as well as by subregion, are provided in a statistical appendix, and a list of relevant publications by the African Department is included.

The report provides a broad synopsis of recent economic developments and prospects in the countries covered by the IMF's Middle East and Central Asia Department.

This report gives the IMF's view of the outlook for Asia, identifies the main risks to growth, and considers the key factors that will influence capital inflows. The REO also discusses short-run macroeconomic policy issues for the region, as well as longer-term challenges, including the need to raise consumption and rebalance growth, develop further regional financial and capital markets, and address growing income inequality.

This report provides the IMF's latest views on recent developments and prospects for the region, discusses potential risks to the forecast, and describes key policy challenges. (en español)

In recent years the environment for international investment has differed quite strongly across countries. The macroeconomic performance of the high-growth economies in Asia and certain other developing regions has contrasted sharply with the sluggish economic growth in much of continental Europe. Between the two extremes, the continued economic recovery in some countries – e.g. the United States – has allowed for a gradual restoration of investor confidence. In recent years the environment for international investment has differed quite strongly across countries. The macroeconomic performance of the high-growth economies in Asia and certain other developing regions has contrasted sharply with the sluggish economic growth in much of continental Europe. Between the two extremes, the continued economic recovery in some countries – e.g. the United States – has allowed for a gradual restoration of investor confidence.