CAIRO: A newly-amended EU-Egypt Association Agreement seeks to further liberalize bilateral trade in agricultural, processed agricultural products and fish and fishery products. The agreement, which entered into force June 1, is a step towards canceling tariffs applied to these products. “Free trade becomes the dominant rule,” Christophe Besse, trade counselor at the Delegation of the European Union to Egypt, told Daily News Egypt. “Only a very limited number of sensitive products remain subject to certain protections on both sides.” Egypt and the European Union member states signed their partnership agreement in 2001, aiming at gradually establishing a free trade area by 2016. The original agreement between Egypt and the EU stipulated quotas and export schedules for the respective exports of agricultural goods of both Egypt and the EU. With the new stipulations, the former system regulating trade between Egypt and the EU is fundamentally changed: All agricultural and fishery products coming from Egypt are now exempted from both taxes and quantitative restrictions. Some exceptions include tomatoes, cucumbers, artichokes, courgettes, table grapes, garlic, strawberries, rice, sugar, processed products with high sugar content and processed tuna and sardines, which will be subject to duty free quotas and export calenders, but will receive preferential treatment. On the other side, nearly 90 percent of the EU exports of agricultural, processed agricultural and fishery products to Egypt will benefit full liberalization, except tobacco, wines and spirits, pig meat, confectionery, chocolate, pasta and bakery products. According to the European Neighborhood Policy Country Progress Report 2009, the EU is Egypt's first trading partner: A third of Egypt's overall trade is with the EU, amounting to €18.7 billion in 2009. Egyptian Minister of Trade and Industry Rachid Mohamed Rachid expects that this agreement will increase Egyptian exports of agricultural goods to the EU by more than €1.5 billion a year. Mariann Fischer Boel, European Commissioner for Agriculture and Rural Development, said, "I am delighted that we have been able to negotiate this deal, which will strengthen the position of European exporters on what is our most significant market in the Middle East region.” For Europe, this agreement is not only a possibility to strengthen its position on the Egyptian market, “it should also send a positive signal to Egypt concerning the ongoing market access negotiations with Egypt — services, in particular,” said an EU statement released at the time an agreement liberalizing trade was reached. “In the Mediterranean region, this agreement is one of the most ambitious in terms of tariff and quota dismantling,” Christophe Besse concludes.
