The challenge of economic integration in the MENA region: from GAFTA and EU-MFTA to small scale Arab Unions

After a 30 years period of trials and errors in creating an Arab economic space for just independent countries and an insufficient implementation of the Euro-Mediterranean Free Trade Agreement (EU-MFTA), the economies of the MENA region have recently relied back on sub-regional trading blocks (Arab Unions) to succeed in opening and developing their economies. From a theoretical point of view this tendency is rising a debate on the possibility, for the Arab countries, to enjoy the dynamic effects that emerge from the internationalization process (like an increasing rate of investment, a higher intra-industry trade and reduced balance of payments distortions), given the structure and the performance of their economies. The aim of the paper is to present the contemporary trends of the economic integration process among the countries of the MENA Region in connection with the wider perspective adopted in the debate on this topic. A closer look at the intra-Arab flows of goods and services will thus enable us to appraise some facts concerning the process of internationalization of MENA economies, revealing an unexpected dynamism in the lights of “deep integration” perspective. On this base an account of the renewed bilateralism in economic relations will be provided.