Done by: Shahira El Kady Marwa El Fiky Motassem Bellah Al Shawwa Mina Makary Abdallah Zohdi.
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Transcript of Done by: Shahira El Kady Marwa El Fiky Motassem Bellah Al Shawwa Mina Makary Abdallah Zohdi.
“Euro-Egyptian Partnership Ten
Privileges ”
Done by: Shahira El Kady Marwa El Fiky Motassem Bellah Al Shawwa Mina Makary Abdallah Zohdi
Introduction The Free Trade Zone 9 Expected Privileges 1. Fostering Trade relations with EU, Egypt’s largest trade
partner 2. Boosting opportunities for Egypt’s exports access EU
Market 3. Reducing the cost of Egypt’s imports from EU states: 4. Provision of guarantees of the national industry: 5. benefiting from the extensive of EU markets: 6. An Institutional Problem Solving Mechanism: 7. Pursuing and increasing EU aid to Egypt 8. Enhancing the ability to counter the competitiveness of
other Med states’ exports to EU states: 9. Attracting more direct EU investments to Egypt
Outline
The Cooperation Agreement of 1977 was deemed no longer conducive to Euro-Med relation
1977 Agreement: 1- Customs exemptions on industrial
exports and specific quotas of cotton spins and textiles
2- Customs exemptions on limited quotas of agricultural commodities for specific periods and export seasons.
3-Financial assistance to support the capabilities of the Egyptian economy, and food aid
Introduction
Drafting a new legal framework to reorganize broader Euro-Egyptian relations
To include: The political, economic, social, cultural, human
resources, communication technology, transport, energy, education, health and anti-crime domains
Took Place 1995-1999 reached a Partnership Agreement (PA)
The agreement came into force as of June 1st, 2004 in the light of the EU expansion
Customs and tax exemptions to Egyptian industrial goods as of the date of the Agreement
Preferential privileges to Egyptian Exports
Euro-Egyptian
Political Dialogue Free trade zone within 12 years Most Favoured Nation in service trade with a
possibility of expansion to include other areas. Free Capital Movement Economic and Scientific cooperation Financial Cooperation Social and Cultural issues
The PA Tackles
Within 12 years
Egyptian exports are granted exemptions from day one
European exports are granted exemptions in a scheduled and 4 groups manner
Free Trade Zone
Customs reduced by 25% upon signing the agreement
Annual reduction of 25 % until total exemption by the 4th year
Includes: raw materials and capital goods
First Group
Customs reduced by 3% three years after PA
Then 15% for 6 years until complete exemption
Includes: medial raw materials and commodities
Second Group
Customs reduced 5 % five years after PA
Then another 5 % the following year and 15% for six years until total exemption
Includes medial commodities and fully manufactured goods
Third Group
Customs shall be reduced by an annual 10% six years after PA comes into force
Includes: passenger cars
Fourth Group
Introduction The Free Trade Zone 9 Expected Privileges 1. Fostering Trade relations with EU, Egypt’s largest trade
partner 2. Boosting opportunities for Egypt’s exports access EU
Market 3. Reducing the cost of Egypt’s imports from EU states: 4. Provision of guarantees of the national industry: 5. benefiting from the extensive of EU markets: 6. An Institutional Problem Solving Mechanism: 7. Pursuing and increasing EU aid to Egypt 8. Enhancing the ability to counter the competitiveness of
other Med states’ exports to EU states: 9. Attracting more direct EU investments to Egypt
Outline
1st Fostering Trade relations with EU, Egypt’s largest trade partner
Egypt’s exports to the EU constituted 25% of the total Egyptian Exports in 2006
EU imports to Egypt constituted 37% of Egypt's imports 2006
Euro-Med Free Trade Zone (FTZ)◦ PAs between EU States and Mediterranean State
The European Rules of Origin
Item 2000 2001 2002 2003 2004 2005 2006 2007
Exports
3500 3193 3301 3386 4167 5162 7634 4791
Imports
8145.7 7205.6 6597.8 5592 7342 8286 9000 6777
Trade Balanc
e
-4645.7 -4012.6 -3296 -2606 -3175 -3124 -1366 -1986
Size of trade excha
nge
11645.7
10398.6
9898.8 9378 11509 13448 16634 11568
2nd: Boosting opportunities for Egypt’s exports access EU Market
1. Industrial Commodities2. Agricultural commodities
1. Commodities with quotas and seasons2. Commodities with quantitative quotas but
with no specific export seasons3. Commodities with specific export seasons but
without quantitative quotas4. Commodities with neither specific export
seasons nor quantitative quotas
3. Manufactured Agricultural commodities
4. Service Trade:• Egypt/EU partnership agreement stipulate: the MFN
(Most Favored Nation) status
• The 5th Euro-Med trade Ministers 'conference in Marrakech March 2006 started service trade liberalization of the provisions of services
• gave the right to institute companies in each party’s territory
• Euro-Med Trade Ministers’ conference in Barcelona, October 2007: Inaugurate bilateral negotiation
Third: Reducing the cost of Egypt’s imports from EU states
Fourth: Provision of guarantees of the national industry The revision of the timeframe of the customs cuts on
it’s imports from the EU Granting Egypt exceptional measures for a limited
period
Fifth: Benefiting from the extensive of EU markets Expanding EU membership European neighborhood policy ENP Orient the
neighborhood policy toward EU policy
facilitate market access
The action plan is the ENP executive tool-Dialogues concerning several domains December 2006: the EU commission issued a
strategic document to enhance the ENP :
1. Boosting financial assistance to neighboring states (2013 establishing Neighborhood investment fund NIF)
2. Payments for Governance facility3. Deepening the economic integration 4. Fostering the political cooperation and enhancing
the regional cooperation
• It’s there to settle any problem that may arise in (Trade exchange) between both sides
• This happens according to the following diagram:
6th: An Institutional Problem Solving Mechanism
Council partnership
* Meet at ministerial level
* Discuss key, bilateral, or international issues of common concern of both sides
* Council has power of taking decisions and recommendations
Partnership committee
*Meet at senior officials’ level
* Has the authority to take decisions regarding the implementation of the agreement as authorized by the council
*Has “8” subcommittees and an action group are affiliated to the committee
* Each subcommittee is specialized in a particular area (Trade, industry, services and investment)
7. Pursuing and increasing EU aid to Egypt•Euro-Egypt partnership agreement which replaced the cooperation agreement that had been valid between Egypt and EU since 1978 and became the legal framework that governs the relationship between both sides
•A) On going bilateral cooperation projects implemented according to the financial protocols (Agricultural related projects for 2 million Euros)
•B) Bilateral cooperation programs effected in the context of MEDA1 from 1995-1999
• In the field of developing the basic education, reform of the health sector, modernization of industry, and social development funds
• C: Bilateral cooperation programs affected in the context of MEDA 2:
• Several programs included the funding of several projects in the field of boosting trade, development of technical and higher education, promoting the civil society, banking sector reform, customs development.. ETC
The European Union initiated the implementation of the European Neighbourhood and Partnership Instrument (ENP)
5 .The funding Mechanism in the frame work of ENPI:
1 .Sustainable development
2 .Supporting the priorities agreed upon in the action plans that are approved in the context the
European Neighbourhood Policy
ENPI is focused on
3 .Boosting the economic and social reform programs and political dialogue
4 .Conciliating of technical assistance in the field of institutional capacity building and fostering transnational cooperation among the EU states and
neighbouring countries
Budget: 12 billion Euros are allocated in EU 2007
ENPI is focused on:
Technical assistance to EU neighbouring states provided through a mechanism in several ways such as Twinning programs.
Technical assistance
Eighth: Enhancing the ability to counter the competitiveness of other Med states’ exports to EU states
Temporary trade and cooperation partnership
agreement with the Palestinian Authority: The agreement was signed in February 1997 – in force on July 1st, 1997
Partnership agreement with Tunisia: This agreement was signed in July 1995 – in force on March 1st 1998
Partnership agreement with Morocco: This agreement was signed in February 1996 – in force on March 1st 2000
Partnership agreement with Israel : This agreement was signed in November 1995 – in force on June 1st 2000
Partnership agreement with Jordan: This agreement was signed in November 1997 – in force on May 1st 2002
Partnership agreement with Lebanon: This agreement was signed in June 2002 – in force on April 2006
Partnership Agreement with Algeria: This agreement was signed in April 2002 – Undergoing ratification
Partnership agreement with Syria: Initialized on October 2004, pending the final signature
Customs Union Agreement with Turkey
Signed on March 1995 – in force on December 1995
The liberalization of trade in goods and services, investment
Issues related to intellectual property rights
The rules of origin
European Union and Gulf Cooperation Council
Ninth: Attracting more direct EU investments to Egypt
Britian40%
France18%
Holland18%
Spain14%
Germany5%
Italy4%
Contribution
The agreement provides for taking necessary measures to encouraged capital movement between both sides with the aim of
encouraging investment.
THANK YOU