Global value chains between eu and its partners in the mediterranean union, with particular reference to smes

The union for the mediterranean is an intergovernmental organization composed of 43 countries, the 27 member states of the european Union (UE-27) and 16 countries around the mediterranean (no-UE), whose aim is to promote cooperation and enhance economic integration of the mediterranean region. A key element of economic integration is the establishment of global value chains (CGV).

This study analyzes theCGVbetween the UE-27 and its partners to identify those sectors that offer the opportunity for further expansion ofCGVeuropean mediterranean region. The current need to reconfigure theCGVoffers an opportunity to strengthen the integration of developing countries no-UE in european tv companies, because the outsourced production by european businesses in other countries more distant, mainly asian, installed in them and because they are recipients of direct investments to newCGV.

Countries no-UE is very heterogeneous in terms of size, per capita income or competitiveness, as well as its logistical capabilities, essential element of its inclusion in theCGV. However, share some common features, including low position in capacity for innovation which shows the importance that they have inserted inCGVand access to technological advances. All of them, except for Mauritania, have signed bilateral trade agreements with the UE-27. With the exception of Turkey and Israel, its share in world exports of goods is less than 0.2 per cent, and further development ofCGVeuropean integration would encourage them in international trade.

The UE-27 is the largest partnerCGVthis group of countries, especially as a location for intermediate inputs used in exports (what is called, forward participation or involvement forward), while their weight as a supplier of inputs used in the exports of developing countries no-UE (so-called backward participation or backward participation) is lower. Since 2003, has increased the presence of UE-27 participation forward of the partner countries was reduced participation backward. By 2022, UE-27 provided less than half of the value-added export abroad of partners, because of the biggest burden of inputs from third countries, particularly China.

The current trend to reconfiguringCGVit is an opportunity to strengthen the integration within the mediterranean, through a return to the eu of production that previously had been located on partners, while part of localised production in Asia could be relocalizada on partners. These are some competitive advantages vis-à-vis the eu countries that make them attractive to place them in some stages of theCGVthe advantages in labour costs, taxes or complexity of regulation. While they may have disadvantages compared to asian countries in costs and prices, offer greater geographical proximity, have signed trade agreements with the UE-27 and the possibility of recruiting small items. Its greatest weaknesses are lack of human capital and logistics and transport. With regard to the productive sectors, energy, agriculture and food and drinks are those who have a greater potential to participate inCGVbetween the eu and its partners.

Global value chains between eu and its partners in the mediterranean union, with particular reference to smes