The Cairo International Fair gave EU officials a chance to explain the Association Agreement to the business community. Pierre Loza reports With the Egypt-EU Association Agreement on the verge of full implementation, the relevant parties are working to familiarise the Egyptian business community with the agreement's various aspects. Towards this end, a symposium was hosted on the fringe of the Cairo Trade Fair. Entitled "The EU-Egypt Association Agreement", the symposium was organised by the Federation of Egyptian Industries and the Egyptian European Association with the support of the EU Commission delegation. The symposium was hosted by Alaa Ezz, secretary-general of the Egyptian European Association, featuring guest speaker Barbara Statcher, the first secretary for trade matters for the EU Commission delegation in Cairo. Statcher urged Egyptian businesses "to lobby for an increase in the competitiveness of the Egyptian economy, while using the Association Agreement as a basis". She also highlighted some of the objectives of the agreement as "a venue for financial cooperation to modernise the economy, to upgrade economic infrastructure and promote private investment". In general terms, the agreement's effect on business is represented in its reciprocal tariff liberalisation for industry and agriculture, as well as the gradual removal of quantitative restrictions. The Egypt-EU Association Agreement's trade provisions have already entered into force when an interim agreement was signed late last year by the Egyptian minister of foreign trade and the EU trade commissioner. Already ratified by the governments of Egypt and the 15 EU member countries, the agreement will enter into force by the summer of 2004 when the Association Council Ministerial meeting takes place and certain administrative procedures are concluded. The agreement's trade provisions also stipulate that "Egypt liberalise trade and tariff barriers over 15 years to allow the entry of European industrial products and the EU let in all Egyptian industrial products with no tariff or quotas starting January 2004," said Statcher. In the case of industrial products the agreement will provide the Egyptian government with exceptional measures to protect infant industries for a five-year grace period, allowing duties of up to 25 per cent. The gradual abolition of customs duties for European industrial products entering Egypt started 1 January 2004. For the first three years a 25 per cent annual reduction on customs duties for raw materials and industrial equipment is scheduled. Industrial supplies, semi-manufactured goods and construction materials will initially get a 10 per cent reduction starting 2007. That will increase to 15 per cent each year until 2013. For the first two years after 2009, clothes, cosmetics, furniture, electrical domestic appliances and motor vehicles for the transport of goods will receive a five per cent reduction. That will increase 15 per cent starting the third year until 2016. From 2010 to 2019 the Egyptian market will finally start opening up to European cars, with a 10 per cent annual reduction during that period. Also beginning this year, Egyptian agricultural products, whether processed or fresh, will be given greater access to the European market. Products such as mangos, grapes, asparagus and watermelons will receive a full customs exemption. Statcher encouraged businesspersons to utilise the opportunities provided by the agreement. "We can see that a lot of agricultural products are subject to zero tariffs, which should push people to export," she said. Ezz also added that "because a number of agricultural goods fall under a certain tariff quota, it is interesting to note that for the export of agricultural goods, Egypt has so far failed to fulfil its quota limits on a number of products." Statcher went on to outline the schedule for dismantling tariffs on European processed agricultural products. In 2006, duties on natural sponges, animal fats, cocoa paste and baby food will be completely abolished. The gradual reduction of duties on yoghurt, margarine, tomato ketchup and soups will start with a five per cent reduction in 2006, increasing to a 15 per cent final reduction by 2008. Duties on corn, pasta, chocolate and waters will be reduced, starting the year following 2006 with a five per cent reduction and ending with a final reduction of 25 per cent by 2008. Statcher also spoke of the EU's commitment to Egypt, seeing as it has set aside 777 million euros for grants and initiatives such as the Industry Modernisation programme and the Social Fund for Development. She also advised the business community to make use of Customs Authority Decree 17/ 2004, which has for the first time established units that will review weekly complaints on tariff evaluations. "You can now complain if you have problems with tariff evaluations, and if you still feel tariff reductions are not enforced, you can come to us for help," she said. Statcher also suggested that entrepreneurs look at the Customs Authority Web site for more detailed information on tariff rates and regulations on imports and exports.
