EXPLORING THE ECONOMIC AND COMMERCIAL RELATIONS BETWEEN LIBYA AND THE EU: A PERCEPTION ANALYSIS OF LIBYAN BUSINESSMEN

Abstract

Abstract



The Libyan economy is highly dependent on oil export revenues, which allied to a small population, makes Libya one of the richest countries in Africa. In order to diversify its sources of income, the government undertook measures to liberalise its economy and foreign trade. The central strategy of enhancing trade and developing the Libyan economy is to integrate with the EU by taking a pro-active part in EU-initiated economic cooperation and integration programmes and treaties, such as the Barcelona Process. This process constitutes an important step towards enhancing the openness of Libya’s economy and creating convergence towards EU economies.

The research explores the perceptions of Libyan businessmen on the economic and trade relationship between Libya and the EU by focusing directly on trends, developments, problems and prospects. The research also aims to explore problems encountered between Libya and the EU with the objective of establishing ways in which to lessen the adverse effects. It suggests policy measures to be adopted to improve Libya’s trade and economic relations with the EU.

To fulfil its aims and objectives, this study utilised both primary and secondary data. The primary data were collected through a survey questionnaire conducted in Libya, which explored the opinions, perceptions and attitudes of Libyan businessmen towards trade-related issues with the EU. In addition, the secondary data were in the form of published statistical data relating to trade between Libya and the EU.

The findings of this study demonstrated that the majority of Libyan businessmen have positive attitude towards economic cooperation and the integration process between Libya and the EU within the EU-Mediterranean Partnership (Barcelona Process) in general, and towards the establishment of FTA in particular. In addition, the majority of Libyan businessmen think that achievements in the economic field were the most successful policy aims within the Euro-Mediterranean Partnership, while perceiving the political and military and security fields to be of a minor role. However, the majority consider that trade between Libya and EU still faces a number of obstacles, despite Libya joining the Barcelona Process. These include the high price of EU products, the difference in terms of quality, and the adoption of high customs duties on EU products by the Libyan authorities and the lack of information about the opportunities available in EU markets. The study, also, finds that the majority of Libyan businessmen see the future of Libyan economy tied closely to the EU, rather than in an African, Arab or Islamic Union, in which they show little interest.