A look towards the South: The economic relations between Spain and North Africa (1995-2007)

Spain, the economy of the European Union closer geographically to North Africa, drives since 1995 the Euromediterranean Project in which other countries involved are Morocco, Tunisia, Algeria, and Egypt, which have experienced an important economic growth in the last decade. This paper analyzes how this reality is conditioning the intensity and nature of the relations between the Spanish economy and those countries. First of all, data confirm some asymmetry in the trade and investment flows between Spain and the economies of North Africa, they corroborate the role of Morocco as the main trading partner of the region and they also confirm the need to promote broader interregional cooperation agreements specific for each country. These agreements would contribute to take advantage of the benefits derived from the real integration of the geographically closer markets.