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European Union – Mediterranean countries: growing trade in services and investment
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Trade in services between the European Union and the Mediterranean Partner Countries is increasing gradually. The balance, in favour of the Mediterranean countries, has almost doubled in ten years, mainly because of the development of tourism, while business services show a significant surplus in the EU's favour. Foreign direct investments of the European Union in the region have shown strong growth for three years, reaching a record 15 billion euro in 2006.
Trade in services with and direct investment in the Mediterranean Partner Countries1 (MPCs) are still growing slowly, although the trend over the past five years has picked up pace. Exports of services from the MPCs rose by 31% between 2000 and 2005, whilst the growth in imports remained limited, at 18%. In parallel, following a significant drop in 2002, foreign direct investment (FDI) from the rest of the world to the MPCs has been rising, a trend which has speeded up since 2005, with a record amount of 42.9 billion euro invested in 2006. The MPCs (with the exception of Israel) remain net recipients of foreign direct investment, but there are signs of movement in direct investment in other countries by the MPCs.