“Euro-Egyptian Partnership Ten

Privileges ”

Done by: Shahira El Kady Marwa El Fiky Motassem Bellah Al Shawwa Mina Makary Abdallah Zohdi

Introduction The Free Trade Zone 9 Expected Privileges 1. Fostering Trade relations with EU, Egypt’s largest trade

partner 2. Boosting opportunities for Egypt’s exports access EU

Market 3. Reducing the cost of Egypt’s imports from EU states: 4. Provision of guarantees of the national industry: 5. benefiting from the extensive of EU markets: 6. An Institutional Problem Solving Mechanism: 7. Pursuing and increasing EU aid to Egypt 8. Enhancing the ability to counter the competitiveness of

other Med states’ exports to EU states: 9. Attracting more direct EU investments to Egypt

Outline

The Cooperation Agreement of 1977 was deemed no longer conducive to Euro-Med relation

1977 Agreement: 1- Customs exemptions on industrial

exports and specific quotas of cotton spins and textiles

2- Customs exemptions on limited quotas of agricultural commodities for specific periods and export seasons.

3-Financial assistance to support the capabilities of the Egyptian economy, and food aid

Introduction

Drafting a new legal framework to reorganize broader Euro-Egyptian relations

To include: The political, economic, social, cultural, human

resources, communication technology, transport, energy, education, health and anti-crime domains

Took Place 1995-1999 reached a Partnership Agreement (PA)

The agreement came into force as of June 1st, 2004 in the light of the EU expansion

Customs and tax exemptions to Egyptian industrial goods as of the date of the Agreement

Preferential privileges to Egyptian Exports

Euro-Egyptian

Political Dialogue Free trade zone within 12 years Most Favoured Nation in service trade with a

possibility of expansion to include other areas. Free Capital Movement Economic and Scientific cooperation Financial Cooperation Social and Cultural issues

The PA Tackles

Within 12 years

Egyptian exports are granted exemptions from day one

European exports are granted exemptions in a scheduled and 4 groups manner

Free Trade Zone

Customs reduced by 25% upon signing the agreement

Annual reduction of 25 % until total exemption by the 4th year

Includes: raw materials and capital goods

First Group

Customs reduced by 3% three years after PA

Then 15% for 6 years until complete exemption

Includes: medial raw materials and commodities

Second Group

Customs reduced 5 % five years after PA

Then another 5 % the following year and 15% for six years until total exemption

Includes medial commodities and fully manufactured goods

Third Group

Customs shall be reduced by an annual 10% six years after PA comes into force

Includes: passenger cars

Fourth Group

Introduction The Free Trade Zone 9 Expected Privileges 1. Fostering Trade relations with EU, Egypt’s largest trade

partner 2. Boosting opportunities for Egypt’s exports access EU

Market 3. Reducing the cost of Egypt’s imports from EU states: 4. Provision of guarantees of the national industry: 5. benefiting from the extensive of EU markets: 6. An Institutional Problem Solving Mechanism: 7. Pursuing and increasing EU aid to Egypt 8. Enhancing the ability to counter the competitiveness of

other Med states’ exports to EU states: 9. Attracting more direct EU investments to Egypt

Outline

1st Fostering Trade relations with EU, Egypt’s largest trade partner

Egypt’s exports to the EU constituted 25% of the total Egyptian Exports in 2006

EU imports to Egypt constituted 37% of Egypt's imports 2006

Euro-Med Free Trade Zone (FTZ)◦ PAs between EU States and Mediterranean State

The European Rules of Origin

Item 2000 2001 2002 2003 2004 2005 2006 2007

Exports

3500 3193 3301 3386 4167 5162 7634 4791

Imports

8145.7 7205.6 6597.8 5592 7342 8286 9000 6777

Trade Balanc

e

-4645.7 -4012.6 -3296 -2606 -3175 -3124 -1366 -1986

Size of trade excha

nge

11645.7

10398.6

9898.8 9378 11509 13448 16634 11568

2nd: Boosting opportunities for Egypt’s exports access EU Market

1. Industrial Commodities2. Agricultural commodities

1. Commodities with quotas and seasons2. Commodities with quantitative quotas but

with no specific export seasons3. Commodities with specific export seasons but

without quantitative quotas4. Commodities with neither specific export

seasons nor quantitative quotas

3. Manufactured Agricultural commodities

4. Service Trade:• Egypt/EU partnership agreement stipulate: the MFN

(Most Favored Nation) status

• The 5th Euro-Med trade Ministers 'conference in Marrakech March 2006 started service trade liberalization of the provisions of services

• gave the right to institute companies in each party’s territory

• Euro-Med Trade Ministers’ conference in Barcelona, October 2007: Inaugurate bilateral negotiation

Third: Reducing the cost of Egypt’s imports from EU states

Fourth: Provision of guarantees of the national industry The revision of the timeframe of the customs cuts on

it’s imports from the EU Granting Egypt exceptional measures for a limited

period

Fifth: Benefiting from the extensive of EU markets Expanding EU membership European neighborhood policy ENP Orient the

neighborhood policy toward EU policy

facilitate market access

The action plan is the ENP executive tool-Dialogues concerning several domains December 2006: the EU commission issued a

strategic document to enhance the ENP :

1. Boosting financial assistance to neighboring states (2013 establishing Neighborhood investment fund NIF)

2. Payments for Governance facility3. Deepening the economic integration 4. Fostering the political cooperation and enhancing

the regional cooperation

• It’s there to settle any problem that may arise in (Trade exchange) between both sides

• This happens according to the following diagram:

6th: An Institutional Problem Solving Mechanism

Council partnership

* Meet at ministerial level

* Discuss key, bilateral, or international issues of common concern of both sides

* Council has power of taking decisions and recommendations

Partnership committee

*Meet at senior officials’ level

* Has the authority to take decisions regarding the implementation of the agreement as authorized by the council

*Has “8” subcommittees and an action group are affiliated to the committee

* Each subcommittee is specialized in a particular area (Trade, industry, services and investment)

7. Pursuing and increasing EU aid to Egypt•Euro-Egypt partnership agreement which replaced the cooperation agreement that had been valid between Egypt and EU since 1978 and became the legal framework that governs the relationship between both sides

•A) On going bilateral cooperation projects implemented according to the financial protocols (Agricultural related projects for 2 million Euros)

•B) Bilateral cooperation programs effected in the context of MEDA1 from 1995-1999

• In the field of developing the basic education, reform of the health sector, modernization of industry, and social development funds

• C: Bilateral cooperation programs affected in the context of MEDA 2:

• Several programs included the funding of several projects in the field of boosting trade, development of technical and higher education, promoting the civil society, banking sector reform, customs development.. ETC

The European Union initiated the implementation of the European Neighbourhood and Partnership Instrument (ENP)

5 .The funding Mechanism in the frame work of ENPI:

1 .Sustainable development

2 .Supporting the priorities agreed upon in the action plans that are approved in the context the

European Neighbourhood Policy

ENPI is focused on

3 .Boosting the economic and social reform programs and political dialogue

4 .Conciliating of technical assistance in the field of institutional capacity building and fostering transnational cooperation among the EU states and

neighbouring countries

Budget: 12 billion Euros are allocated in EU 2007

ENPI is focused on:

Technical assistance to EU neighbouring states provided through a mechanism in several ways such as Twinning programs.

Technical assistance

Eighth: Enhancing the ability to counter the competitiveness of other Med states’ exports to EU states

Temporary trade and cooperation partnership

agreement with the Palestinian Authority: The agreement was signed in February 1997 – in force on July 1st, 1997

Partnership agreement with Tunisia: This agreement was signed in July 1995 – in force on March 1st 1998

Partnership agreement with Morocco: This agreement was signed in February 1996 – in force on March 1st 2000

Partnership agreement with Israel : This agreement was signed in November 1995 – in force on June 1st 2000

Partnership agreement with Jordan: This agreement was signed in November 1997 – in force on May 1st 2002

Partnership agreement with Lebanon: This agreement was signed in June 2002 – in force on April 2006

Partnership Agreement with Algeria: This agreement was signed in April 2002 – Undergoing ratification

Partnership agreement with Syria: Initialized on October 2004, pending the final signature

Customs Union Agreement with Turkey

Signed on March 1995 – in force on December 1995

The liberalization of trade in goods and services, investment

Issues related to intellectual property rights

The rules of origin

European Union and Gulf Cooperation Council

Ninth: Attracting more direct EU investments to Egypt

Britian40%

France18%

Holland18%

Spain14%

Germany5%

Italy4%

Contribution

The agreement provides for taking necessary measures to encouraged capital movement between both sides with the aim of

encouraging investment.

THANK YOU