80% customs reduction in Arab Free Trade Area in January
Minister of Foreign Trade Youssef Boutrus Ghali said that the volume of customs exemption between Egypt and the Arab Free-Trade Area (FTA) member states would reach 80% in January in a preliminary step to realize complete customs exemption by 2005.
The trade exchange agreement among the Arab countries signed in 1981 aimed at facilitating the trade exchange among the FTA member states and giving an impetus to the trade-related services, he added, noting that 14 Arab countries are implementing customs reduction, namely Egypt, Morocco, Libya, Lebanon, Kuwait, Qatar, Oman, Iraq, Syria, Saudi Arabia, Tunisia, Bahrain, UAE and Jordan.
On his part, trade plenipotentiary minister for Arab countries' affairs Mohamed Abdul Gawad said that goods between Egypt and Libya are exempted from taxes and customs duties by virtue of the trade and customs agreement signed in 1990 between the two countries.
He also noted that commodities between Egypt and Iraq are totally exempted from taxes and customs duties by virtue of the executive protocol signed in 2001 between the two countries on establishing a free trade area.
On trade relations with Syria, he said that two lists of commodities are exempted in accordance with the trade agreement signed in 1991 between the two countries.
He noted that the rate of commodity exemption between Egypt and Jordan hit 80% in 2003 and is expected to reach 90% by 2005.
He stated that the goods and commodities between Egypt and Sudan are exempted from customs duties in accordance with the origin rules stipulated in the COMESA agreement excepting 58 Egyptian commodities and 5 Sudanese commodity groups that are preliminary excluded from exemption.
By virtue of the exchange agreement between Egypt and Tunisia, there are two lists of commodities exempted from customs duties.
According to the executive program to boost trade exchange between Egypt and Lebanon, a list of Egyptian commodities are exempted by rates stipulated in the provisions of the FTA agreement.
For the exchange agreement signed in 1998 between Egypt and Morocco, he noted that it includes two lists of commodities to be exempted as well as carrying out steps to realize customs reduction within five years.