“Euro-Egyptian Partnership Ten Privileges”

1. “Euro-Egyptian Partnership Ten Privileges” Done by: Shahira El Kady Marwa El Fiky MotassemBellah Al Shawwa Mina Makary Abdallah Zohdi

2. Outline • 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

3. Introduction • 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

4. 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, healthand anti-crime domains

5. Euro-Egyptian • 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

6. The PA Tackles • 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

7. Free Trade Zone • Within 12 years • Egyptian exports are granted exemptions from day one • European exports are granted exemptions in a scheduled and 4 groups manner

8. First Group • 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

9. Second Group • Customs reduced by 3% three years after PA • Then 15% for 6 years until complete exemption • Includes: medial raw materials and commodities

10. Third 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

11. Fourth Group • Customs shall be reduced by an annual 10% six years after PA comes into force • Includes: passenger cars

12. Outline • 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

13. 1st Fostering Trade relations with EU, Egypt’s largest trade partner

14. 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

16. 2nd: Boosting opportunities for Egypt’s exports access EU Market

17. Industrial Commodities • Agricultural commodities • Commodities with quotas and seasons • Commodities with quantitative quotas but with no specific export seasons • Commodities with specific export seasons but without quantitative quotas • Commodities with neither specific export seasons nor quantitative quotas • Manufactured Agricultural commodities

18. 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

19. 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

20. 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 : • Boosting financial assistance to neighboring states (2013 establishing Neighborhood investment fund NIF) • Payments for Governance facility • Deepening the economic integration • Fostering the political cooperation and enhancing the regional cooperation

21. 6th: An Institutional Problem Solving Mechanism • It’s there to settle any problem that may arise in (Trade exchange) between both sides • This happens according to the following diagram:

22. * Meet at ministerial level * Council has power of taking decisions and recommendations * Discuss key, bilateral, or international issues of common concern of both sides Council partnership

23. *Meet at senior officials’ level *Has “8” subcommittees and an action group are affiliated to the committee Partnership committee * Has the authority to take decisions regarding the implementation of the agreement as authorized by the council * Each subcommittee is specialized in a particular area (Trade, industry, services and investment)

24. 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

25. 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

26. 5. The funding Mechanism in the frame work of ENPI: • The European Union initiated the implementation of the European Neighbourhood and Partnership Instrument (ENP)

27. ENPI is focused on 1. Sustainable development 2. Supporting the priorities agreed upon in the action plans that are approved in the context the European Neighbourhood Policy

28. 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

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

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

31. 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

32. 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 1st2000

33. Partnership agreement with Jordan: This agreement was signed in November 1997 – in force on May 1st2002 Partnership agreement with Lebanon: This agreement was signed in June 2002 – in force on April 2006

34. 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

35. Customs Union Agreement with TurkeySigned on March 1995 – in force on December 1995

36. European Union and Gulf Cooperation Council • The liberalization of trade in goods and services, investment • Issues related to intellectual property rights • The rules of origin

37. Ninth: Attracting more direct EU investments to Egypt

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

39. THANK YOU