The EU Commissioner for Trade, Pascal Lamy pointed out yesterday that an association agreement with the EU could not offer the same benefits and opportunities as membership.
Being part of a group of 25 nations not only ensured more clout in international negotiations, but also dispelled the risk of policies being imposed which a country would not have chosen, Mr Lamy said.
"Let`s be frank, the commercial advantages of joining the EU cannot be mirrored through any association agreement with the EU," he said.
Mr Lamy, in Malta to take part in a meeting of the EU candidate countries focusing on trade, was speaking at a meeting with the business community at the Chamber of Commerce.
The commissioner painted a bright picture of Malta`s trade prospects after EU membership, but warned that the current uncertainty regarding the country`s future was a disincentive for foreign investment.
"Everywhere I go, be it South East Asia or Latin America, I see a very strong sense of the need for small economies to join forces into regional integration, and EU membership offers the top model car on the road to regional integration."
Mr Lamy specifically outlined the areas where Malta would benefit with membership.
It would attract more foreign direct investment, creating more jobs, he said, adding that this was evidenced by the fact that foreign direct investment in the EU had multiplied by 15 times since the completion of the common market in 1992.
Membership would provide increased but fair competition, and far greater muscle in international negotiations.
By joining the EU, Malta would be part of the EU single market of almost 400 million people with a single set of rules.
In particular, Maltese enterprises would be able to freely sell their goods in the European market and in all the third countries with which the EU has concluded preferential agreements.
Accession to the EU would provide Malta with a legal framework as well as financial support.
And the participation of Malta in the EU research programmes would help integrate the Maltese scientific community in the European scientific communities.
Mr Lamy said that some companies would have to restructure, but this would inevitably be the case due to increasing world competition and globalisation.
The prospects were bright for Maltese trade in general, he said.
"Malta has assets upon which it can build: a skilled workforce, a proven spirit of entrepreneurship, a healthy and competitive financial sector and port and airport infrastructure that the cohesion and structural funds can develop further."
Such funds offered considerable aid for infrastructure, in particular in the areas of environment, transport and communication, he said.
He held that there was a tendency to overestimate perceived threats because of the fear of the unknown.
However, globalisation was already knocking on Malta`s door and the challenge was now for the Maltese to choose the right framework to face its effects.
Chamber of Commerce president Reginald Fava called on the EU to grant unilateral market access to Maltese products before membership in order to help Maltese entrepreneurs prepare for the rigours of the internal market.
Mr Fava also appealed to the EU to accept the principle of insularity and contemplate special concessions for Malta on the transport of goods to other islands.