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

21/10/2014 Arab Republic of Egypt Ministry of Industry, Trade & SMEs Trade Agreements Sectors Egyptian Free Trade Agreements 1 2 1 21/10/2014 ...
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21/10/2014

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: v

Greater Arab Free Trade Area (GAFTA).

v

COMESA.

v

European Partnership.

v

Agadir.

v

Turkey.

v

EFTA. 3

Greater Arab Free Trade Area (GAFTA) n

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. 4

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Greater Arab Free Trade Area (GAFTA) n

The agreement was started on 1/1/1998.

n

Full exemption on all goods (agricultural & industrial) has been applied on 1/1/2005.

n

The local value added must be at least 40% on the current applied rules of origin.

n

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.

5

Great Arab Free Trade Area (GAFTA) 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

6

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Egypt vs. GAFTA 10000 9000 8000 7000 6000 5000

Trade Balance

4000

Exports

3000

Imports

2000 1000 0 -1000

Imports 2007

2008

Exports 2009

2010

2011

Trade Balance 2012

2013

7

Common Market for Eastern and Southern Africa (COMESA)

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Common Market for Eastern and Southern Africa (COMESA) n

n

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.

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Common Market for Eastern and Southern Africa (COMESA) n

n

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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Common Market for Eastern and Southern Africa (COMESA) n

n n

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.

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Egypt trade with COMESA Values in million $

BEFORE ACCESSION

1997 1998

AFTER ACCESSION

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

12

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Egypt vs. COMESA 2500

2000 1500 1000

Trade Balance

500 Exports 0 -500

1997 1998 2005 2006 2007

Imports 2008

2009

2010

2011

Trade Balance 2012

Imports

2013

13

The Egyptian-European Partnership Agreement

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The Egyptian-European Partnership Agreement n

n

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 Egyptian-European Partnership Agreement 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 products The 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

1st list (raw material)

25

25

25

25

2nd list (intermediate product)

3rd list finished product)

4th list( cars)

10

8

9

10

11

12

13

14

15

16

15

15

15

15

15

15

5

5

15

15

15

15

15

15

10

10

10

10

10

10

10

17

18

19

10

10

10 17

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

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

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 .

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RULES OF ORIGIN n

Protocol III outlines the rules of origin under the agreement. Both parties will apply the Pan-EuroMed 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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The Egyptian-European Partnership Agreement 2003 Before 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

Values in million $

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Egypt vs. EU 25000 20000 15000 10000 Trade Balance

5000

Exports 0 -5000 -10000

2003 2004 2005 2006 2007 2008

Imports 2009

2010

2011

Imports

Trade Balance 2012

2013

-15000

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Agadir Agreement

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Agadir Agreement n

n

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 n

n

Exemption of all the customs duties and taxes with similar effect on all the products. Agadir Agreement implements the Euro – Med Rules of Origin.

25

Agadir Agreement Values in million $

2077 Before entry entry into into force 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

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Egypt vs. Agadir 250

200

150 Trade Balance

100

Exports Imports

50 0 2006

2007

2008

2009

2010

2011

Imports Exports Trade Balance 2012

2013

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Egypt-Turkey Free Trade Agreement n

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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Egypt-Turkey Free Trade Agreement The industrial products status: - Exemption all The Egyptian industrial products from custom tariffs at the beginning of the implementation.

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Egypt-Turkey Free Trade Agreement Industrial Products treatment under the agreement (Egyptian imports) List

07

08

09

10

11

12

13

14

1

75%

100%

-

-

-

-

-

-

2

-

10%

25%

40%

55%

70%

85%

100%

3

-

-

-

5%

10%

25%

40%

4

-

-

-

-

10%

20%

30%

15

16

17

-

-

-

55%

70%

85%

100%

40%

50%

60%

70%

18

19

20

-

-

-

80%

90%

100%

30

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

n

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. 31

Egypt-Turkey Free Trade Agreement RULES OF ORIGIN n

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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Egypt-Turkey Free Trade Agreement

Before entry into force

Entry into force 2007

2008

2009

2010

2011

2012

2013

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

Values in million $

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Egypt vs. Turkey 4000

3000

2000 Trade Balance

1000

Exports Imports

0 2006 -1000

2007

2008

2009

2010

2011

Imports Exports Trade Balance 2012

2013

-2000

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Egypt & EFTA States Free Trade Agreement

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Egypt & EFTA States Free Trade Agreement

n

n

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

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Egypt & EFTA States Free Trade Agreement 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 n

Egyptian imports of industrial products Agreement Implementation Years 07

08

09

10

11

12

13

14

15

16

17

18

19

20

75%

100%

-

-

-

-

-

-

-

-

-

-

-

-

-

10%

25%

40%

55%

%70

85%

100%

-

-

-

5%

10%

25%

40%

55%

70%

85%

100%

-

-

-

-

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

List 1

List 2

List 3

List 4

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EGYPT AND EFTA STATES FREE TRADE AGREEMENT n

n

Treatment of Agriculture goods It 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 goods Both 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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EGYPT AND EFTA STATES FREE TRADE AGREEMENT Rules of origin : n

n

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.

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EGYPT AND EFTA STATES FREE TRADE AGREEMENT Before entry into force

After entry into force

Values in 2004 2005 2006 2007 2008 2009 2010 million $ Trade balance

-115 -139 -175

-32

-746

194

2011

-224

-620

2012 2013

-511 -1285

exports

32

51

279 114

38

785

425

284

354

imports

147

190

104 145

784

592

684

904

865 1404

119

Egypt vs. EFTA 1500

1000

500 Trade Balance

0 2004 -500

2005

2006

2007

2008

2009

2010

2011

Imports Exports Trade Balance 2012

Exports Imports

2013

-1000 -1500

42

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Why Egypt?! n Ø Ø

Ø Ø Ø

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). 43

Why Egypt?! n Ø Ø

Ø Ø Ø

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). 44

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Why Egypt?! n

Egypt will be a gate of:

Ø

MERCOSUR (Brazil, Argentina, Paraguay, Uruguay and Venezuela)

Ø

MERCOSUR which covers more than 295 million

person Ø

MERCOSUR with an export bill of $446 billion

Ø

MERCOSUR with an import bill of $363 billion

Ø

MERCOSUR which covers a geographical area of 15 million (sq km).

45

For more information: n

Kindly visit our website:

www.tas.gov.eg [email protected] Tel: 002 02 23422347 Fax: 002 02 23420496 46

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