Mubarak probes Egypt-EU partnership draft agreement
Egypt, Economics, 7/4/2000

Egypt's President Hosni Mubarak Tuesday said Egypt is capable of modernising a national programme to counter the dangers imposed by the global economy.

President Mubarak was addressing a ministerial meeting on Egypt-Europe partnership to examine all aspects of the agreement, to be signed soon.

After the meeting, Information Minister Safwat el-Sherif said the President gave directives to review the wording of some provisions and identify their meaning with the reports, submitted by Ministers of economy, industry, and finance.

President Mubarak listened to a report by Prime Minister Atef Ebeid on the outcome of the ministerial meetings on that score during the past months.

The Prime Minister reviewed in details the reports of the ministers on the wording of the agreement as well as the negative and positive impact of the agreement on the financial and industrial performance in Egypt.

The President listened to a report from the Finance Minister on the effects of implementing the agreement under its different stages, the Minister noted.

The agreement includes three-year transitional period, an execution period from 2004 to 2017, and a period from the time it was initialed to the final signature.

"The Finance Minister, in his report, detailed the effects of the agreement on the state budget, revenues from the customs duties, sales taxes, balance of trade, re-exportation, certificate of origin and the uses of the technical assistance, granted by the EU," Sherif expounded.

The Minister of Planning's report focused on the investment performance, the role of the public and private sector in investments needed to upgrade the Egyptian industry and other related fields before trade liberalisation.

The report expected the growth of the industrial income as a result of modernising the industry over the space which the agreement provides.

The report, also, anticipated a rise in exports, industrial products that are likely to be exported, high-quality textile, carpets, ready-to-wear clothes, upholstery, agricultural implements, wood industries, food manufacturing, concrete iron, ceramics, cement, fresh vegetables and fruits, medicines, electricity cables and fibers.

The report showed that the agreement will negatively impact the plants, as some of them will be liquidated and the products could not be modernised nor reach the competitive edge.

The report included an estimation of the yearly needed investments to modernise the Egyptian industry.

President Mubarak requested that the positive aspects of the economic activity on indirect taxes be studied.

The President said that the development will be in the interest of the society and will empower it to enhance its capabilities to find a place on the world trade map, Sherif said.

There is no alternative option to the Egyptian modernisation and promotion programme to enable the Egyptian economy deal with the global market mechanisms, through the World Trade Agreement or the partnership agreement with Europe, the President affirmed.

Mubarak pointed to the significance of the private and public sectors` initiatives to upgrade as early as possible the Egyptian product so as not to encounter more hurdles imposed by a new world status quo.

President Mubarak instructed the government to raise a suggestion on a mechanism to lead the modernisation, supervision, and follow-up processes of the business sector: private, public, government-affiliated companies or investment.

The President said the state protection for the national industry does not mean to leave the industry in a state of stalemate because the Egyptian consumer looks for the better and will not buy an out-dated commodity.

President Mubarak tackled the responsibility of the trade unions and business institutions in making future plans with a wider view that surpasses the domestic market and puts into consideration the challenges that will impose a new reality that depends on a race in modernisation, efficiency in management and production quality.

President Mubarak is scheduled to hold another meeting on Thursday to continue deliberations on the partnership agreement.

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