Egypt will strive to meet European standards
Egypt-European Union, Economics, 7/14/2001

Will the Egyptian-European Partnership Agreement be the much needed shot in the arm the Egyptian economy needs?

In rely to this question Vittorio Ghidi, the Commission's Charge d'Affaires in Cairo, said that the agreement will allow for "an increase in the flow of investment into Egypt."

He added that European industry is more advanced and we will be left guessing for some time as to whether Egyptian industrialists in particular will be able to compete.

Prime Minister Atef Ebeid is aware that Egyptian industries are being placed in a vulnerable position, but he said that the agreement "will involve a modernization program for Egyptian industry and consequently Egyptian society, as we strive to meet European standards and set up the necessary infrastructure."

The Egyptian-European Agreement will take effect within two years following parliamentary approval by Egypt and each European Union (EU) member state.

The association agreement is part of the Euro-Mediterranean partnership scheme launched in 1995 which aims to set up a free trade zone by 2010.

Under the accord, the EU market will be open to all Egyptian products, including agricultural produce, while the Egyptian market will open on a smaller scale to European products.

He also said that customs duties would be cut and barriers to foreign trade, except for agricultural products, would be lifted.

One of the deal's proponents, Ambassador Gamal Bayoumi, advises Egyptian exporters to carry out their own market research to establish where they could benefit from the agreement.

He said: "Egyptian exporters must investigate the trends and demands of the European markets. They should not expect to merely export their surplus. They must produce what others need."

In 2000, Egypt exported 3.3 billion euros worth of goods to the EU, including oil products, fruit and vegetables, cotton and textiles. Egypt imported 7.9 billion euros of products.

The agricultural sector is unhappy, but Bayoumi said that Europe will remove barriers on Egyptian exports by up to 50%-60%.

He said that Europe's concession in this respect was extraordinary and unheard of in deals signed with other Mediterranean partners.

He attributed this to the sound judgement of Egypt's negotiators. He expected that "under the deal, and bearing in mind the current figures, more Egyptian agricultural products would flow into Europe."

"The deal's provisions also allow Egyptian exporters to change their quotas," he told the press last week.

He suggested that the government and manufacturers should monitor the implementation of this particular provision over a certain period of time.

"If Egypt is experiencing difficulties exporting to European markets, fresh negotiations can be sought," he said.

The ambassador confirmed that Europe is ready to resume talks regarding the liberalization of trade if requested.

Bayoumi's clarification suggests that Egypt did not fully lift its barriers to agricultural and industrial imports from EU member states.

Previous Stories:
  International Institutions welcome positive annual growth of Egypt's economy   (6/29/2001)
  Egyptian European partnership agreement opens new marketing vistas   (6/16/2001)
  Egyptian-European partnership agreement, concluded soon   (6/16/2001)

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