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Arab Republic of Egypt Ministry of Industry, Trade & SMEs Trade Agreements Sectors
Egyptian Free Trade Agreements
1
2
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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)
8
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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.
9
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.
10
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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.
11
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
14
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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.
15
The Egyptian-European Partnership Agreement The industrial products status: - Exemption all The Egyptian industrial products from custom tariffs at the beginning of the implementation
16
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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.
18
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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 $
21
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
22
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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.
24
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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
26
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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
27
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.
28
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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.
32
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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 $
33
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
34
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Egypt & EFTA States Free Trade Agreement
35
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
38
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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.
40
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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
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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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