Salvatore Capasso, Giovanni Canitano (a cura di)
Mediterranean Economies 2023
DOI: 10.1401/9788815411167/c5
The ad-valorem equivalent of NTMs at the product level is illustrated in figure 6. The highest ad-valorem equivalents (exceeding 80 per cent) of TBT are found in dairy products, cocoa, and meat. Grains and some processed food products, such as prepared cereals, sugar, prepared vegetables, oils, cereals, malt and wheat also face substantial NTMs with an ad-valorem equivalent ranging from 60 per cent to 80 per cent. As for SPS measures, the highest ad-valorem equivalents are imposed on cereals vegetables, fats and oils, dairy products, malt and wheat, ranging from 64 per cent to 50.1 per cent. Some of these products are not only relevant from a nutritional point of view (such as grains, cereals, and meat) but are also among the top imported food items by MENA countries and are critical for their food security. Surprisingly, tobacco imports are subsidized (with a negative ad-valorem equivalent of SPS measures), despite the adverse health effects of tobacco consumption and its irrelevance to the question of food security. A potential reason behind that might be due to the political economy of the trade in tobacco and the lobbies of large firms who are exporting this good.
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Fig. 5. NTMs – by country (2018).
Source: Nguyen et al. [2022].
Fig. 6. NTMs - by product (2018).
Source: Nguyen et al. [2022].

3.3. Behind-the-Border Costs

Trade barriers are not the only policy measures that can be negatively associated with food security in the MENA region. Behind-the-border measures, including the logistical process of exporting and importing can be substantially burdensome and costly. In Figure 7, the cost and time to export and import are compared across several regions. Overall, behind-the-border costs in the MENA region are among the highest worldwide. For example, the cost of documentary compliance to export is by far the highest worldwide (259$) and compared to other developing countries in Asia and Latin America. The cost of documentary compliance to import in the MENA region is the second highest (285$) after Sub-Saharan Africa (296$).
Concerning the cost of border compliance, the MENA region is the third most costly region to export and import, after Sub-Saharan Africa and Latin America and the Caribbean (446$ and 524$ to export from and import into the MENA region respectively). In terms of time, the region also ranks third after Sub-Saharan Africa and South Asia with the longest waiting times, with as long as 67 days for border compliance conditions to export and 75 days to import. The same conclusion can be made for the time needed for border compliance, where it would take as long as 51 days and 91 days to achieve border compliance for exports and imports, respectively.
High costs and lengthy behind-the-border procedures to export and import have a huge impact on trade in food, and, consequently, on the region’s food security. Not only do such impediments increase the cost to trade, but can also result into substantial losses of goods and waste along the value chain, given the perishable nature of many food items.{p. 159}
Fig. 7. Cost and Time to Trade – by region (2019).
Source: Doing Business Dataset.

3.4. Trade Agreements

The MENA region is the least integrated region in the global trading system. Out of 19 countries, nine have not yet joined the {p. 160}WTO. Although liberalization of trade in agriculture has been delayed under the WTO, other WTO commitments, such as MFN tariffs, national treatment, market liberalization, privatization, and deregulation can affect trade in agriculture [Keulertz and Byiringiro 2022] and increase local competitiveness and efficiency.
At the bilateral level, several MENA countries have preferential trade agreements with the USA and the EU. For example, the EU has signed Association Agreements with several South-Mediterranean Countries, including Tunisia, Morocco, Egypt, Lebanon, and Jordan under the umbrella of the Euro-Mediterranean Partnership. However, trade in agriculture remains largely excluded from these agreements, as their primarily focus is the manufacturing sector [Aboushady and Zaki 2021]. In selected agricultural goods, trade takes place under quotas, NTMs are heavily used by importers on both shores of the Mediterranean.
In 1997, 17 MENA countries signed the agreement on the establishment of the Greater Arab Free Trade Area (GAFTA), and Algeria joined the agreement in 2009. The objective was to achieve full liberalization of intra-Arab trade by 2008. However, regional trade in agriculture remains largely hampered by the excessive use of NTMs. The lack of harmonization of food safety regulations also makes it more difficult to liberalize trade in agriculture within the region. Overall, the progress of regional trade under GAFTA is undermined by divergent political interests, political upheavals, and armed conflicts in the region.

4. Challenges for Trade Policy and Food Security

4.1. Challenges in Turbulent Times

Over the past three years, two major global shocks put MENA’s food security at stake: the COVID-19 pandemic and the Russian war on Ukraine. Both shocks had widespread effects on global supply and demand of food, caused major supply chain disruptions and substantial price surges. The effects on the MENA region are adverse, given its heavy dependence on imports of food, especially from Russia and Ukraine.
COVID 19 Impact. The COVID-19 pandemic had a substantial impact on the global markets for food and agriculture. Supply and
{p. 161}demand shocks took place, global supply chains were disrupted. The use of export restrictions to ensure food security re-emerged in a similar way to the quantitative restrictions during the price spikes of 2007-2008 [Martin and Glauber 2020], in addition to governmental support to the farming sector, and more flexible import restrictions [Hepburn et al. 2021]. In heavy net food importing countries(such as Egypt, Jordan, Palestine and Yemen), food prices surged because of the heavy import dependency, especially in cereals. The burden is heavier for countries that subsidize wheat flour and bread (such as Egypt), as they will have to increase their subsidies due to rising import prices. In several MENA countries, households had to face several challenges that affected their food purchase and consumption. According to the household survey results on difficulties related to getting food summarized in figure 8, 81 per cent of surveyed households in Tunisia reported being unable to buy the usual quantity of food because its price had increased and 77 per cent because household income decreased. Moreover, 60 per cent of the households had to cope by reducing their food consumption. At the same time, 59 per cent reported reduced food purchases due to supply shortages and 39 per cent due to restrictions imposed by the government on the mobility of people and/or market closures. In Morocco, the impact of COVID-19 on food security appears to be less severe, with only 9 per cent of the surveyed households reporting shortages in markets. In Morocco, the government responded to the crisis by adopting a more liberal approach, compared to other countries in the region. Tariffs were reduced on wheat, lentils, chickpeas, and beans [Mandour 2021]. Despite these measures, 50 per cent of the surveyed households reported an increase in prices, and 54 per cent reported a drop in their income that led to decreased food purchases. Nearly one third of the surveyed households had to adopt negative coping mechanisms by reducing their food intake. In the case of Jordan, shortages in markets and mobility issues also appear to be less of a challenge, while reduced food purchases due to increase in food prices and decrease in household income affected 50 per cent and 54 per cent, respectively. Among the surveyed households, 39 per cent had to cope with the effects of the pandemic by reducing their food intake. The picture looks slightly better for Egypt, where 10 per cent reported having difficulties accessing food because {p. 162}of mobility restrictions and 21 per cent reported shortages in the market. Egypt has implemented some export prohibitions on beans and lentils, expanded cash transfers and increased consumer subsidies to tackle both availability and access to food (ibidem). However, a share of 43 per cent and 46 per cent of the surveyed households reported a reduction in food consumption due to price surges and income drops, respectively. Finally, 44 per cent had to adopt negative coping mechanisms.
Note