Given the rhetoric of the EU on the necessity of economic integration for the MENA region, this article sheds light on the ‘puzzling’ fragmentation in its regional integration strategy through the cases of the GAFTA and Agadir Agreements. It problematises mainstream analyses and employs a dialectical approach based on the philosophy of internal relations, aiming to surpass existing critical literature that has only partially illuminated facets of the EU’s strategy. The article situates the EU strategy within the dynamics of neoliberal capitalism (and its interconnected tensions) and considers its spatial and temporal scales. It argues that the complex interplay of developments at the EU scale, global competition scale and MENA scale across three distinct time frames (1995–2003, 2004–11, 2012–21) has shaped the EU’s fragmented strategy. On the EU scale, while Brussels presents itself as a leading proponent of neoliberal ideology for global market openness, it strategically elevates the Agadir Agreement at the expense of the GAFTA to meet its economic needs. The global competitive dynamics, however, have constrained this preference, as the EU has been contested by the US in the Agadir Agreement area and China and, to a lesser extent, Russia in other GAFTA member states. Lastly, the agency of MENA states has been noticeable, since the EU encounters difficulties in influencing GAFTA’s regulatory framework and dealing with the diverse interests of state elites in the region. We conclude that the dialectical method of the article holds promise for analysing the regional integration strategies of other global powers.