Egyptian Free Trade · PDF fileEgyptian Free Trade Agreements 1 2. ... Bilateral & Regional...

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

Transcript of Egyptian Free Trade · PDF fileEgyptian Free Trade Agreements 1 2. ... Bilateral & Regional...

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Arab Republic of EgyptMinistry 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.

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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.

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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 thisagreement 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

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Egypt vs. GAFTA

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Trade Balance

ExportsImports

-1000

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2007 2008 20092010 2011

20122013

Trade Balance

Exports

Imports

Common Market for Eastern and Southern Africa (COMESA)

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Common Market for Eastern and Southern Africa (COMESA)

n COMESA Agreement was signed on 8/12/1994, thusreplacing the old PTA Agreement which was signedin 1981 & entered into force in 1982. Egypt becamea member in May 1998.

n COMESA Free Trade Area consists of 15 memberstates namely;

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

Common Market for Eastern and Southern Africa (COMESA)

n Eritrea applies 80% reduction on its imports fromCOMESA member states.

n Ethiopia applies 10% reduction of the customsduties imposed on its imports from COMESAmembers states.

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Common Market for Eastern and Southern Africa (COMESA)

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

n COMESA applied the detailed rules of origin.

n COMESA launched the Customs Union during COMESAsummit 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

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Egypt vs. COMESA

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Trade Balance

Imports

-500

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500

1000

1500

2000

2500

1997 1998 2005 2006 2007 2008 2009 2010 2011 2012 2013

TradeBalance

Exports

Imports

The Egyptian-European Partnership Agreement

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The Egyptian-European Partnership Agreementn The agreement has come into force since 1/1/2004

with customs reduction of 25% for the Egyptian imports .

n 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 customtariffs at the beginning of theimplementation

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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 yearsStart 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

list st1(raw material) 25 25 25 25

listnd2(intermediate product) 10 15 15 15 15 15 15

list rd3finished 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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Ø Agricultural, Processed agricultural and Fish and Fishery products treatment ( Egyptian exports )

n According to the new arrangements applicable to theimportation into the European Union for these productsoriginating in Egypt which entered into force 1st of June 2010,all products not included in table 1 that is annexed to protocol1 are duty free. A preferential treatment for some of theproducts 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 theimportation into Egypt for these products originating in theEuropean community which entered into force 1st of June2010, all products not included in table 1 that is annexed toprotocol 2 are duty free. A preferential treatment for some ofthe products listed in table 1 are indicated in table 2 .

RULES OF ORIGIN

n Protocol III outlines the rules of origin under theagreement. Both parties will apply the Pan-Euro-Med rules of origin, which allow goods producedfrom materials originating in any Euro-Medcountries to enter the EU market with preferences.

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The Egyptian-European Partnership Agreement

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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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Trade Balance

Imports

-15000

-10000

-5000

0

5000

10000

15000

20000

25000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Trade Balance

Exports

Imports

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Agadir Agreement

Agadir Agreement

n Agadir Agreement (AA) was signed in the city ofRabat, Morocco on 25 February, 2004 betweenEgypt, Jordan, Morocco and Tunisia.

n The aim of the Agreement is to establish a FreeTrade area among Morocco, Tunisia, Egypt andJordan for the purpose of developing economicactivity, supporting employment, increasingproductivity, and improving living standards withinthe Member Countries.

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Agadir Agreement

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

n 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

force2008 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

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Trade BalanceExports

Imports0

50

100

150

200

250

2006 2007 2008 2009 2010 2011 2012 2013

Trade Balance

Exports

Imports

Egypt-Turkey Free Trade Agreement

n Egypt–Turkey Free Trade Agreement was signedon 27/12/2005. The ratified FTA came intoeffect on 1/3/2007 in a context governed bythe Euro-Med process.

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Egypt-Turkey Free Trade Agreement

The industrial products status:- Exemption all The Egyptian

industrial products from customtariffs at the beginning of theimplementation.

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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 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 n Concessions on agricultural, processed agricultural,

and fishery products are outlined in Protocol II. Thetwo parties have agreed to grant each otherconcessions either as tariff rate quotas (TRQs) ortariff reductions on agricultural, processedagricultural, and fishery products. The two partiesexchanged the same concessions on processedagricultural products.

n Both parties agreed to extend the existingconcessions in agriculture and processed agricultureproducts through the joint committee meetings.

Egypt-Turkey Free Trade Agreement

RULES OF ORIGIN

n Protocol III outlines the rules of origin under theFTA. Both parties will apply the Pan-Euro-Med rulesof origin, which allow goods produced frommaterials originating in any Euro-Med countries toenter the EU market with preferences.

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Egypt-Turkey Free Trade Agreement

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Before entry into

force

Entry into

force 2007

2008 2009 2010 2011 2012 2013Values 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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Trade BalanceExports

Imports

-2000

-1000

0

1000

2000

3000

4000

2006 2007 2008 2009 2010 2011 2012 2013

Trade Balance

Exports

Imports

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Egypt & EFTA States Free Trade Agreement

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Egypt & EFTA States Free Trade Agreement

n Egypt signed a free trade agreement with EFTA countries on27/1/2007 in Davos and entered into force in August 2007.

n 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 allcustoms duties and other chargeshaving equivalent effect upon theentry into force of the Agreement.

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EGYPT AND EFTA STATESFREE TRADE AGREEMENT

n Egyptian imports of industrial products

Agreement Implementation Years

2019181716151413121110090807

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

100%85%%7055%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

n Treatment of Agriculture goodsIt was agreed that the agriculture file would be dealtwith on a bilateral basis. A List of agriculture exportsto each EFTA member country was prepared , as wellas lists of imports of agriculture products frommember countries,

n Treatment of processed Agriculture goodsBoth parties agreed on the list of Egyptian exportsthat is to be accorded preferential treatment by EFTAcountries, equivalent to the preferential treatmentaccorded to EU countries.

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EGYPT AND EFTA STATESFREE TRADE AGREEMENT

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

and it defines the rules by which the products could gainthe origin of the two countries in order to enjoypreferences.

n Both parties will apply the Pan-Euro-Med rules of origin,which allow goods produced from materials originating inany Euro-Med countries to enter the EU market withpreferences.

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EGYPT AND EFTA STATESFREE TRADE AGREEMENT

After entry into forceBefore entry into force

2013201220112010200920082007200620052004Values in million $

-1285-511-620-224194-746-32-175-139-115Trade balance

119354284425785381142795132exports

1404865904684592784145104190147imports

Egypt vs. EFTA

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Trade BalanceExports

Imports

-1500

-1000

-500

0

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1000

1500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Trade Balance

Exports

Imports

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Why Egypt?!

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

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

of 12 million (sq km).

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Why Egypt?!

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

personØ GAFTA with an export bill of $1196 billionØ GAFTA with an import bill of $753 billionØ GAFTA which covers a geographical area

of 14.2 million (sq km).

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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

personØ MERCOSUR with an export bill of $446 billionØ MERCOSUR with an import bill of $363 billionØ MERCOSUR which covers a geographical area of

15 million (sq km).

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For more information:

n Kindly visit our website:

[email protected]

Tel: 002 02 23422347Fax: 002 02 23420496

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