Topics in Middle Eastern and African Economies Proceedings of Middle East Economic Association Vol. 20, Issue No. 2, September 2018 Trade and Conflict: The Case of the Arab Maghreb Union Rayhana Chabbouh El Asmi University of Tunis El Manar Faculty of Economics and Management of Tunis Research Laboratory «Prospective, Stratégies et Développement Durable (PS2D) »
[email protected] Abstract- This paper explores the links between trade, conflict and peace in the Arab Maghreb countries. Since its creation in 1989, the Arab Maghreb Union (AMU) has been in a lethargic state. We assume that reducing inter and intra-state conflicts would be a sound argument for the reactivation of the Arab Maghreb Union. In this paper, we will discuss trade flows between the Maghreb Union countries and highlight the pending political issues and conflicts. The results confirm that countries which are more likely to create regional blocks are naturally more open to trade and even more subject to interstate disputes. Elimination of all trade barriers and putting into effect multilateral trading systems would enable AMU countries the creation of a regional security framework that leverages diplomatic, political, economic and even military resources. Regional integration can be built and strengthened in order to promote peace and stability. Keywords – trade, conflict, peace, regional trade agreements, geographic proximity, Arab Maghreb Union. JEL – F01, F15, F51, D74, C23 90 Topics in Middle Eastern and African Economies Proceedings of Middle East Economic Association Vol. 20, Issue No. 2, September 2018 1. Introduction The relationship between international trade and security has been long known for centuries.