The European Union is a unique entity in the context of the tradition political science and the international relations structures studied in various fields. It has produced an outstanding formula of economical cooperation that leads to much greater success in all the other fields, such as peace, politics, social acknowledgment approach and a somewhat common way of thinking on global crisis’. As the Europeans emphasis themselves, today’s major challenge is to spread peace and security beyond the EU’s borders.
To meet this challenge, the EU is developing a common foreign and security policy so that it can act as a force for stability, economical cooperation and understanding in the wider world.
The question that arises is whether the dynamics occurring in Europe are a phenomenon that can be “exported” to other countries and regions. There is no doubt that Europe has witnessed economic cooperation that led to political rapprochement. However, can a fragile peace be bolstered by economic relations? In other words, does economic cooperation between countries in conflict always lead to increased understanding and a resolution of the conflict, or the opposite – increased enmity?
In this paper I will try to deal with that question. I try to examine whether the European formula can indeed be implemented in the complex structure of the Mediterranean environment. I’ve chosen to focus on a specific case- study initiative that is about to come into force January the 1st
2 006- that is the introduction of a diagonal cumulation of origin, that is called “The Pan- European Mediterranean System”. The reason that topic fascinates me and requests a somewhat critical analysis, apart of it’s being a current issue on the government’s agenda, is the fact of Israel being a big advocate of bilateral agreements with different countries. This is due to the fact it’s an isolated small economy.
Within any preferential trade agreement the determination of the origin of a given good is needed in order to establish whether the good is eligible for a reduction, or an exemption from customs duties. Preferential origin rules exist in order to prevent third country imports from taking advantage of the concessions, which have been made by the parties to the preferential agreement (i.e. trade deflection). Rules of origin are thus a key feature of all preferential trading agreements. I will first examine the conceptual structure of legal international trade theory that enables such an initiative to be taken, focusing on the EU’s experience of a similar system that was previously introduced in the general European context. After understanding the motives and the reasons that lead to believe that such a cumulation system can bring great advantages and promote cooperation in the region (as it has in other parts of the world), I will turn to discuss the specific regional case study, implementing the analysis and conclusion of cumulation on the Mediterranean regional level.
It should be noted that my conclusion is a somewhat unpopular outcome that is contradicting the common belief and the official agenda of the state of Israel.
– Preface……………………………………………………………………………..
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– Introduction ………………………………………………………………………. 5
– Part A:  Preferential Trade Agreements ………………………………………….. 7
– Part B:
The Mediterranean Region ……………………………………………… 10 – Part C:
Rules of Origin in FTAs ………………………………………………… 18
– Part D:
The Pan- EU- Med Cumulation Initiative ……………………………….
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– Part E: Analysis of The Potential Influences of the Introduced System ………… 31
– Conclusions ……………………………………………………………………… 37
– The Bibliography ………………………………………………………………… 39