Arab Republic of Egypt Ministry of Industry, Trade & SMEs Trade Agreements Sectors Egyptian Free...

Arab Republic of Egypt Ministry of Industry, Trade & SMEs

Trade Agreements Sectors

Egyptian Free Trade Agreements

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Bilateral & Regional Trade Agreements:Free Trade Agreements:

Greater Arab Free Trade Area (GAFTA).

COMESA.

European Partnership.

Agadir.

Turkey.

EFTA.

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Greater Arab Free Trade Area (GAFTA)

Contains 18 out of 22 Arab countries including:-

Egypt,Bahrain,Iraq, Jordan,Kuwait,Lebanon, Libya, Morocco,

Palestine,Qatar,Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates, Algeria Oman, and Yemen.

Greater Arab Free Trade Area (GAFTA) The agreement was started on 1/1/1998. Full exemption on all goods (agricultural & industrial) has

been applied on 1/1/2005. The local value added must be at least 40% on the current

applied rules of origin. Egypt as a major establisher of this agreement plays a vital

role in solving the implementation problems for this agreement like the lists of exemptions, non tariff barriers, agricultural Calendar and drafting the rules of origin.

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Great Arab Free Trade Area (GAFTA)

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Trade indicators:

Values in million $

before entry into force 2005

after entry into force 2008

2009 2010 2011 2012 2013

trade balance -199 -397 2884 1812 985 160 505

exports 487 495 7919 6368 9000 8885 9312

imports 686 892 5035 4556 8015 9045 8807

Egypt vs. GAFTA

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20072008

20092010

20112012

2013-2000

0

2000

4000

6000

8000

10000

Trade Balance

Exports

Imports

Trade Balance

Exports

Imports

Common Market for Eastern and Southern Africa (COMESA)

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COMESA Agreement was signed on 8/12/1994, thus replacing the old PTA Agreement which was signed in 1981 & entered into force in 1982. Egypt became a member in May 1998.

COMESA Free Trade Area consists of 15 member states namely;

Burundi, Comoros, Djibouti, Egypt, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Uganda, Zambia and Zimbabwe.


Eritrea applies 80% reduction on its imports from COMESA member states.

Ethiopia applies 10% reduction of the customs duties imposed on its imports from COMESA members states.

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The value added resulting from the process of production accounts for at least 35% of the ex-factory cost of the goods.

COMESA applied the detailed rules of origin.

COMESA launched the Customs Union during COMESA summit on 8 June 2009.

Egypt trade with COMESA

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Values in

million $

BEFORE ACCESSION AFTER ACCESSION

1997 1998 2005 2006 2007 2008 2009 2010 2011 2012 2013

TRADE BALANCE -81 -108 122 204 170 493 1154 1382 815 1564 1658

EGYPT EXPORTS 44 45 296 443 535 1651 1865 2346 1654 2480 2385

EGYPT IMPORTS 125 154 174 239 365 1158 711 963 839 916 727

Egypt vs. COMESA

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1997 1998 2005 2006 2007 2008 2009 2010 2011 2012 2013-500

0

500

1000

1500

2000

2500

Trade Balance

Imports

Trade Balance

Exports

Imports

The Egyptian-European Partnership Agreement

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The agreement has come into force since 1/1/2004 with customs reduction of 25% for the Egyptian imports .

From 1/5/2004 new members have joined European Union to be 25 member countries, And this has been signed to increase agricultural exports quotas. In 1/1/2007 Bulgaria and Romania joined the European Union and now EU is 28 members countries.

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The industrial products status:- Exemption all The Egyptian

industrial products from custom tariffs at the beginning of the implementation

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Egyptian imports from EU industrial productsThe percentage of the custom tariff reduction on the Egyptian imports form EU during

the agreement years

Start years of the agreement

Year Executive date 1/1/2004 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

1st list )raw material( 25 25 25 25

2nd list)intermediate

product ( 10 15 15 15 15 15 15

3rd list finished product(

5 5 15 15 15 15 15 15

4th list( cars) 10 10 10 10 10 10 10 10 10 10

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Agricultural, Processed agricultural and Fish and Fishery products treatment ( Egyptian exports )

According to the new arrangements applicable to the

importation into the European Union for these products

originating in Egypt which entered into force 1st of June 2010,

all products not included in table 1 that is annexed to protocol

1 are duty free. A preferential treatment for some of the

products listed in table 1 are indicated in table 2.

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Agricultural, Processed agricultural and Fish and Fishery products treatment ( Egyptian imports)

According to the new arrangements applicable to the

importation into Egypt for these products originating in the

European community which entered into force 1st of June

2010, all products not included in table 1 that is annexed to

protocol 2 are duty free. A preferential treatment for some of

the products listed in table 1 are indicated in table 2 .

RULES OF ORIGIN

Protocol III outlines the rules of origin under the

agreement. Both parties will apply the Pan-

Euro-Med rules of origin, which allow goods

produced from materials originating in any

Euro-Med countries to enter the EU market with

preferences.

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Values in million $

2003Before FTA

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

exports 2170 2740 3573 4649 4710 9356 6691 8358 9678 7832 8072

imports 3226 3598 4759 4790 6216 14435 14315 17094 18141 20059 21231

trade vol. 3596 6338 8332 9439 10926 23790 21006 25452 27820 27891 29303

trade balance -1055 -858 -1186 -141 -1507 -5079 -7624 -8736 -8463 -12227 -13159

Egypt vs. EU

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

-15000

-10000

-5000

0

5000

10000

15000

20000

25000

Trade Balance

Imports

Trade Balance

Exports

Imports

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Agadir Agreement

Agadir Agreement

Agadir Agreement (AA) was signed in the city of Rabat, Morocco on 25 February, 2004 between Egypt, Jordan, Morocco and Tunisia.

The aim of the Agreement is to establish a Free Trade area among Morocco, Tunisia, Egypt and Jordan for the purpose of developing economic activity, supporting employment, increasing productivity, and improving living standards within the Member Countries.

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Agadir Agreement

Exemption of all the customs duties and taxes with similar effect on all the products.

Agadir Agreement implements the Euro – Med Rules of Origin.

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Agadir Agreement

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Values in million $

Before entry into

force

2077entry into force

2008 2009 2010 2011 2012

2013

exports 200 18 233 123 88 86 94 95

imports 113 0 0 18 34 40 74 19

Trade balance 87 18 233 105 54 46 20 77

Trade vol. 313 18 233 141 122 126 168 114

Egypt vs. Agadir

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2006 2007 2008 2009 2010 2011 2012 2013

0

50

100

150

200

250

Trade Balance

Exports

Imports

Trade Balance

Exports

Imports

Egypt-Turkey Free Trade Agreement

Egypt–Turkey Free Trade Agreement was signed on 27/12/2005. The ratified FTA came into effect on 1/3/2007 in a context governed by the Euro-Med process.

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The industrial products status:- Exemption all The Egyptian

industrial products from custom tariffs at the beginning of the implementation.

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Industrial Products treatment under the agreement (Egyptian imports)

List 07 08 09 10 11 12 13 14 15 16 17 18 19 20

1 75% 100% - - - - - - - - - - - -

2 - 10% 25% 40% 55% 70% 85% 100%

3 - - - 5% 10% 25% 40% 55% 70% 85% 100%

4 - - - - 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

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Egypt-Turkey Free Trade AgreementAgricultural, Processed Agricultural, and Fishery Products treatment under the agreement

Concessions on agricultural, processed agricultural, and fishery products are outlined in Protocol II. The two parties have agreed to grant each other concessions either as tariff rate quotas (TRQs) or tariff reductions on agricultural, processed agricultural, and fishery products. The two parties exchanged the same concessions on processed agricultural products.

Both parties agreed to extend the existing concessions in agriculture and processed agriculture products through the joint committee meetings.


RULES OF ORIGIN

Protocol III outlines the rules of origin under the

FTA. Both parties will apply the Pan-Euro-Med

rules of origin, which allow goods produced

from materials originating in any Euro-Med

countries to enter the EU market with

preferences.

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Before entry into

force

Entry into

force 2007

2008 2009 2010 2011 2012 2013 Values

in million $

exports 362 441 788 689 1033 1528 1558 1741

imports 391 458 1185 2344 1884 2635 3381 2626

trade vol. 752 899 1973 3033 2917 4163 4939 4367

trade balance -29 17- 397- 1655- 851- 1107- -1823 -885

Egypt vs. Turkey

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2006 2007 2008 2009 2010 2011 2012 2013

-2000

-1000

0

1000

2000

3000

4000

Trade Balance

Exports

Imports

Trade Balance

Exports

Imports

Egypt & EFTA States Free Trade Agreement

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Egypt signed a free trade agreement with EFTA countries on 27/1/2007 in Davos and entered into force in August 2007.

EFTA member State are: Iceland, Norway, Switzerland and liechtenstein


The industrial products status:- Egyptian exports to EFTA: shall

enjoy an immediate removal of all customs duties and other charges having equivalent effect upon the entry into force of the Agreement.

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EGYPT AND EFTA STATES

FREE TRADE AGREEMENT

Egyptian imports of industrial products

Agreement Implementation Years

20 19 18 17 16 15 14 13 12 11 10 09 08 07

- - - - - - - - - - - - 100% 75%List 1

100% 85% %70 55% 40% 25% 10% -List 2

100% 85% 70% 55% 40% 25% 10% 5% - - -List 3

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% - - - -List 4

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EGYPT AND EFTA STATES FREE TRADE AGREEMENT

Treatment of Agriculture goodsIt was agreed that the agriculture file would be dealt with on a bilateral basis. A List of agriculture exports to each EFTA member country was prepared , as well as lists of imports of agriculture products from member countries,

Treatment of processed Agriculture goodsBoth parties agreed on the list of Egyptian exports that is to be accorded preferential treatment by EFTA countries, equivalent to the preferential treatment accorded to EU countries.

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Rules of origin : Protocol (B) outlines the rules of origin under the

FTA, and it defines the rules by which the products could gain the origin of the two countries in order to enjoy preferences.

Both parties will apply the Pan-Euro-Med rules of origin, which allow goods produced from materials originating in any Euro-Med countries to enter the EU market with preferences.



After entry into force Before entry into force

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Values in million $

-1285 -511 -620 -224 194 -746 -32 -175 -139 -115Trade balance

119 354 284 425 785 38 114 279 51 32 exports

1404 865 904 684 592 784 145 104 190 147 imports

Egypt vs. EFTA

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

-1500

-1000

-500

0

500

1000

1500

Trade Balance

Imports

Trade Balance

Exports

Imports

Why Egypt?!

Egypt is the gate of: COMESA with its 19 member states COMESA which covers more than 389

million citizen COMESA with an export bill of $32 billion COMESA with an import bill of $82 billion COMESA which covers a geographical area

of 12 million (sq km).

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Why Egypt?!

Egypt is the gate of: GAFTA with its 18 member states GAFTA which covers more than 362 million

person GAFTA with an export bill of $1196 billion GAFTA with an import bill of $753 billion GAFTA which covers a geographical area of

14.2 million (sq km).

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Why Egypt?! Egypt will be a gate of: MERCOSUR (Brazil, Argentina, Paraguay, Uruguay and

Venezuela) MERCOSUR which covers more than 295 million

person MERCOSUR with an export bill of $446 billion MERCOSUR with an import bill of $363 billion MERCOSUR which covers a geographical area of

15 million (sq km).

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For more information:

Kindly visit our website:

www.tas.gov.eg

[email protected]

Tel: 002 02 23422347

Fax: 002 02 23420496

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http://www.tas.gov.eg/

http://www.tas.gov.eg/

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