The economic integration among MED countries is weak: the intra-MED exports reached 6.9% of total exports in 2007, with higher figures in Mashreq countries than in Maghreb countries (sources: World Bank, IMF). This level is among the lowest in the world: the intra-regional trade hits for example 12.8% in the MERCOSUR area and 25.2% for the ASEAN. The South-South economic cooperation remains a pivotal issue for the region: were they more integrated, the MED countries would earn 1 to 3 points of GDP growth according to the economic literature, and they would better benefit from their trade liberalisation with the European Union and the rest of the world.

The first intra-MED attempts of liberalisation and economic integration started in the 1990s. The Arab League launched the GAFTA (Greater Arab Free Trade Area) in 1997. The agreement planned a 10% yearly reduction of customs duties and a progressive decrease of the trade barriers. 18 of the 22 Arab League Sates signed this agreement, among which Algeria, Egypt, Jordan, Lebanon, Libya, Morocco, the Palestinian Authority and Syria. The customs duties disappearance was effective on 1st January 2005. The GAFTA allowed boosting moderately the growth of economic exchanges in the Pan-Arab area, without giving rise to a real take-off.

The approach started with the GAFTA was continued with the signature of Agadir’s agreement by Morocco, Tunisia, Egypt and Jordan in February 2004. The agreement aimed to progressively establish a free-trade area, to boost economic exchanges and industrial development, to enhance economic growth and employment, to increase productivity and to improve the signatories States’ standards of living. Despite some implementation difficulties when the agreement came into force, and a delay concerning the targeted objectives (like the total exoneration of the industrial products by 1st January 2005), the Agadir Agreement has contributed to the economic integration of its four signatories States and to the development of common economic projects.

In 2010, except for agricultural products and products prohibited for sanitary and environmental reasons, the trade exchanges in the Area are now totally free, without any customs duties.

Some bilateral treaties have also been concluded, of which the most recent one (June 2010) aims to create a free-trade area between Turkey and its three Arab neighbour countries: Syria, Jordan and Lebanon. The agreement gathers and extends the various existing bilateral protocols to all the parties and plans the establishment of a quadripartite Cooperation Council and the creation of an area of free movement area of individuals and goods. Turkey thus plays a key role among the MED countries: it signed free-trade agreements with all the Mediterranean countries except Libya and Algeria, with which talks were engaged in September 2010. Turkey also tightens its relations with the Balkans countries, and signed free-trade agreements with Bosnia and Herzegovina, Croatia, Albania, the former Yugoslav Republic of Macedonia, Serbia and Montenegro. Some other bilateral agreements were also concluded or are currently in negotiations between the MED countries, like summarised in the following table:

_{S : Signed
V : Came into force
Neg. : Negotiating
CU : Customs Union}

The MED countries’ opening towards their foreign economic partners is underway. In the forefront, the European countries absorbed nearly 47% of the MED exports and provided 40% of their imports in 2007. The European Union supported the Agadir agreement through an economic and financial programme to the Agadir agreement and also signed the Barcelona process with the MED countries in 1995. This agreement should have led to the creation of a Mediterranean free-trade area by 2010, an objective that may eventually not be reached before 2015. The Barcelona process has been re-launched in 2008 with the Union for the Mediterranean project. Europe is also conducting bilateral negotiations with the MED countries, and signed free-trade agreements (FTA) and association agreements with Egypt, Israel, Jordan, Lebanon, Morocco, Tunisia and Algeria. Morocco and Jordan benefit from an advanced status since November 2010, while negotiations are currently underway with Tunisia. Turkey has been an official candidate to join the EU since 1999 and opened accession negotiations with the bloc in 2005

The MED countries also ratified free-trade agreements with some other business partners. The United-States signed FTAs with Israel in 1995, Jordan in 2001 and Morocco in 2006. Canada did the same and opened negotiations in October 2010 with Turkey. MERCOSUR, the Southern Common Market, also reinforces its presence in the MED area and signed an agreement with Israel in 2007 and Egypt in August 2010. Brazil is currently negotiating with Egypt, Morocco, Turkey, India and Israel.