| Egypt - EU Partnership Agreement |
| Duration |
Valid until terminated by either party by
notification to the other party. The Agreement shall cease to
function after the elapse of 12 calendar months from
date of notification. |
| Establishment of the Agreement
|
Egypt
started negotiations with EU for concluding a partnership
agreement in 1995. Its initial signature was made on January,
26th 2001 in preparation for the final signature that was
effected on June, 25th 2001.
According to the
Agreement, a FTA will be established during a 12-year
transitional period, from the date the Agreement enters into
force.
During the third year both parties will decide upon
the procedures - to be implemented on the following year - to
further liberalize their trade in agricultural products,
maritime products and processed agricultural
products.
The Agreement permits Egypt to take certain
exceptional measures for specific periods during the
transitional stage, if and when certain domestic industries
face a threat as a result of liberalization of imports of
similar goods from the EU.
The Agreement includes
implementation of WTO and GATT regulations against
anti-dumping, subsidy and safeguard measures. The Agreement
allows each party to enjoy Most Favorite Nation treatment from
the other party in trading services.
The Agreement
aims at increasing the flow of foreign capital, expertise and
technology to Egypt.
Egyptian exports of manufactured goods
to the EU will be exempted from tariffs once the Agreement
enters into force, meanwhile, EU exports of manufactured goods
to Egypt shall be tariff-exempted according to the lists
and time frame specified in the Agreement.
Agricultural
goods and agricultural processed goods shall not be tariff
exempted but shall be treated according to the rules
stipulated in the agreement which defines certain quotas for
specific goods with tariff privileges and certain market
windows for exportation.
|
| Entry
Into Force |
Upon
ratification of the People's Assembly in Egypt and the
Parliaments of the EU- member states (The 15 member
countries) |
| Objectives of the Agreement |
1. Establishing an adequate framework for a political
dialogue to develop close political ties between the
parties.
2. Paving the way for continuous liberalization of
trade in goods, services and capital.
3. Developing
balanced economic and social relations through mutual
cooperation.
4. Contributing to the process of economic and
social development in Egypt.
5. Encouraging regional
cooperation to promote peaceful coexistence and economic and
political stability.
6. Promoting cooperation in other
fields of mutual interest. |
|
Establishment of FTA between Egypt and the
EU |
| Manufactured Products |
According to the Agreement both parties will enjoy trade
liberalization from all barriers of quantity and tariffs based
on the time frame and the specific lists incorporated within
the Agreement. |
| Exempted
EU Exports |
Manufactured goods exported from the EU to Egypt are to be
exempted from all quantity, tariffs and any other barriers
having the same effect according to the following time
frame:
Goods in List(1): Tariffs are to be gradually
eliminated over 3 years. A reduction of 25% is to be applied
on the date the Agreement enters into force and then there
will be an annual reduction of 25%. (For a detailed list of
these products refer to the table p. 83*)
Goods in List
(2): Tariffs will be reduced gradually in the
following manner: 10% after 3 years from the date the
Agreement enters into force to be followed by an annual tariff
reduction of 15% over 6 years until tariffs are fully
eliminated (For a detailed list of these products refer to the
table p. 125*)
Goods in List (3): Tariffs will be
reduced gradually in the following manner: 5% after 5 years
from the date the Agreement enters into force to be followed
by a 10% reduction on the following year, followed by a
reduction of 15% annually for 5 years and 10% reduction in the
final year (For a detailed list of these products refer to the
table p. 194*)
Goods in List (4): Tariffs will be
gradually reduced by 10 % annually after the elapse of 6 years
from the date the Agreement enters into force, until
tariffs are fully eliminated (For a detailed list of these
products refer to the table p.259*). Those goods include
certain types of vehicles. |
| Exempted Egyptian Exports |
Egyptian
exports of manufactured goods to the EU shall be exempted from
tariffs or any other fees of similar effect once the Agreement
enters into force. |
| * These tables are
displayed in a publication titled "Trade Liberlalization in
the Egyptian-EU Partnership Agreement (2)", published by the
Ministry of Foreign Trade, July 2002 |
| Liberalization of Trade In Agricultural Commodities |
| Agricultural Products |
Egypt and the EU agreed on exempting certain quotas of
agricultural products from custom duties and reducing the
tariffs on exports that exceed these quotas. |
| Arrangements Applicable to Imports into the
EU of the Egyptian Agricultural Products |
Products listed in the table (page 37)* with Egyptian
origin may be imported into the EU according to the following
conditions:
a) Tariffs are either eliminated or reduced as
per column (a) of the table (page 37)
b) For products
which the EU tariff system stipulates a value-based fee and a
specific fee, reductions listed in coloumn (a) and (c) shall
only apply to the value-based fee.
c) For specific
products, tariffs will be eliminated within the quotas
specified in column
(b). Beyond the set quotas for
quantities, either full tariffs are applied or a tariff
reduction is implemented as per column (c).
d) Products
under column (d) are liable to a 3% annual increase on tariffs
listed in column (b) based on the volume of the preceding
year.
e) As of December 1st and up to May 31st, the
agreed upon entry price shall apply for fresh oranges within a
tariff quota of 34000 tons, with regards to the preferential
advantage of a value-based customs fee. The customs fee shall
be reduced to a zero level, which was set at Euro 266/ton as
of Dec 1st, 1999 and up to May, 31st, 2000 and
readjusted to Euro 264/ton afterwards for the same
period.
the shipment's entry price is less than 2%,
4%, 6%, or 8% of the agreed upon price, the fixed tariff
fee shall be equivalent to the 2%, 4%,6% or 8% percent of the
agreed upon entry price. If the entry price is less than 92%
of the agreed price, the fixed tariff rate set by the WTO
shall then apply. As for the remaining quota of fresh orange (
26000 tons), the value -based tariff rate shall be reduced by
60%.
f) Cut flowers have a quota of 3000 tons, under the
following conditions:
The price level of the Egyptian
exports to the EU must be at least equal to 85% of the EU
price for the same type of product and during the same market
window.
If Egypt's price level for any of these products is
below 85% of the EU price level, preferential tariff shall
cease to function, The EU shall reapply the preferential
tariff, if and when the Egyptian price quotas exceed or equal
85% of the price level of the EU. |
| EU
Agricultural Commodity Exports To Egypt |
Tariffs on EU agricultural exports shall either be
eliminated or reduced to the level defined in column (a) (
table on page 44)*.
For specific products, tariffs will be
eliminated or reduced within quotas listed in column
(b). |
|
* These tables are
displayed in a publication titled "Trade Liberalization in the
Egyptian-EU Partnership Agreement (2)", published by the
Ministry of Foreign Trade, July 2002 |
| Processed Agricultural Products |
A specific number of European processed agricultural
products will be exempted from tariffs in Egypt after two
years from the date the Agreement enters into force. |
| EU
Treatment of Processed Agricultural Imports from
Egypt |
The agricultural products used in the production of
agricultural commodities are subject to CAP (Common
Agricultural Policies) to attain the domestic prices higher
than those prevailing in the international markets (especially
products like grains, sugar and dairy products). The EU
imposes the following duties on its imports of processed
agricultural commodities:
1) Relative custom fees (between
2% and 12%) are applicable based on the processing operations
of those commodities. Egyptian exports will be exempted from
this custom fee. (for a detailed list of these products refer
to the table p. 49)*
2) A tariff fee on the agricultural
components, equivalent to the difference between their
international prices and domestic (EU) prices. A list of
Egyptian processed agricultural products will be exempted from
the relative custom fee while the tariff fee on the
agricultural component will remain unchanged (for a complete
list of these products see the table p. 58)*, whereas a number
of other Egyptian processed agricultural products will enjoy a
30% exemption of the tariff fee on the agricultural component
in addition to the complete exemption from the relative custom
fee (for a detailed list of these products refer to the table
p. 62)*.
3) An additional fee shall apply on commodities
whose component includes ingredients of grains, rice, sugar or
dairy products. |
| Treatment of EU Exports of Processed
Agricultural Products to Egypt |
EU exports of processed agricultural products to Egypt
will be treated according to the following categories:
1.
Products that will be exempted of all tariffs and other fees
with a similar effect after two years from the date the
Agreement enters into force. (for a detailed list of these
products refer to the table p. 63)*.
2. Products whose
tariffs and other similar fees will be reduced according to
the following timetable:
A reduction of 5% of the basic
fees after two years from the date the Agreement enters into
force.
A reduction of 10% of the basic fees after three
years from the date the Agreement enters into force.
A
reduction of 15% of the basic fees after four years from the
date the Agreement enters into force.
(for a detailed list
of all these products refer to the table p. 67)*
3.
Products whose tariffs and other similar fees will be reduced
according the following timetable:
A reduction of 5% of the
basic fees after two years from the date the Agreement enters
into force.
A reduction of 10% of the basic fees after
three years from the date the Agreement enters into
force.
A reduction of 25% of the basic fees after four
years from the date the Agreement enters into force.
(for a
detailed list of all these products refer to the table p.
71)* |
| *
These tables are displayed in a publication titled "Trade
Liberalization in the Egyptian-EU Partnership Agreement (2)",
published by the Ministry of Foreign Trade, July
2002 |
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