In a seminar organised by the Economic Research Forum to discuss trade reform in the Middle East and North Africa region, Maamoun Abdel-Fattah, WTO consultant, presented his personal assessment of Egypt's September 2004 Tariff Reform policy. Sherine El-Madany attended Abdel-Fattah provided a brief overview of the policy saying that it stipulates the reduction of the average tariff from 14.6 per cent to nine per cent and the elimination of most tariff lines in order to comply with international standards. The policy aims to provide consumers with efficiently priced, high quality products, as well as enhanced competitiveness in the global market. "It will also stop inflation, increase exports and foreign investment, thus maximising job opportunities," Abdel-Fattah said, adding that, "not only will the tariff reform policy lead to trade liberalisation, but also to economic growth and development." He believes that the new policy will simplify trade procedures and minimise tariff evasion. He added that it would bring Egypt closer to its neighbouring countries' standards of trade, thus opening the door for foreign investment. As for domestic industry protection, he stated that Egyptian manufacturers would have to improve the quality of their products to continue to be competitive in the international market. "One important feature of the policy is the elimination of the additional sales or service tax which will in turn put an end to Egypt's bound rates violation in the WTO," he explained, noting that, "Prior to the policy, if Egypt's commitments to the WTO regarding a certain product were, for example, five per cent, the sales tax would add an extra three per cent." He said that even though tariff revenues will decrease as a result of the policy, the public budget would not be negatively affected as the Ministry of Finance highlighted other advantages that would result from an open trade policy. He also added that the customs reform policy was a major step towards economic and trade development.
