ACCORDING to the schedule of the EU-Egypt Association Agreement�ê�, �ê�tariff reductions affecting the automobile industry that started in 2005�ê� �ê�will end in 2019�ê�, �ê�when tariffs on all automotive products�ê�, �ê�including all vehicles and components�ê�, �ê�should have been removed�ê�.�ê� Market experts believe that when tariffs on European cars reach zero this will not automatically make European cars more competitive�ê�, �ê�and thus will not represent a threat that would push non-European companies in the market to lower their prices�ê�. �ê� "European cars are really expensive and lifting the tariffs would not make them more competitive compared to the other less expensive brands�ê�,�ê�"�ê� �ê�said Menna Sadek director of corporate finance and investments at GB Auto�ê�.�ê� Sadek also pointed out that European carmakers do not consider the local market an important one and thus there are only a few fully fledged European car maintenance and after sales service companies�ê�, �ê�a fact that limits the appeal of buying a European car�ê�.�ê� According to AMIC's August report�ê�, �ê�Egyptians bought 14,700�ê� �ê�European cars so far this year�ê�, �ê�compared to 41,170�ê� �ê�Korean and 16,400�ê� �ê�US produced cars�ê�. �ê�Sales of European cars decreased two per cent compared to August 2011�ê�. �ê� Kia's Tarek Mustafa points out that many non-European companies with a presence in Egypt can get over the effect of the no-tariff advantage by producing cars targeting the market in their European headquarters�ê�. �ê�Kia has plants in Europe and Hyundai currently produces ix20�ê� �ê�and Matrix line in its Czech plant�ê�. �ê�
