Required Report - public distribution

**Date:** 11/7/2004

**GAIN Report Number:** EG4025

EG4025

**Egypt**

**Exporter Guide**

**Annual**

**2004**

**Approved by:**

![](media/image1.wmf)Asif Chaudhry

US Embassy

**Prepared by:**

Manal El Masry

**Report Highlights:**

Egypt has a population of 70 million with an annual growth of 2.02
percent. Egyptian consumers are increasingly becoming aware of the
quality and variety of imported consumer-oriented products. The
Government of Egypt (GOE) issued a presidential decree on September 8,
2004, reducing its import tariffs on many of its agricultural and food
products.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Cairo \[EG1\]

\[EG\]

Table of Contents

[**SECTION I: MARKET OVERVIEW 3**](#section-i-market-overview)

[SECTION II EXPORTER BUSINESS TIPS
4](#section-ii-exporter-business-tips)

[General Tips to Exporters 7](#general-tips-to-exporters)

[SECTION III: MARKET SECTOR STRUCTURE AND TRENDS
7](#section-iii-market-sector-structure-and-trends)

[SECTION IV: BEST HIGH VALUE PRODUCT PROSPECTS
10](#section-iv-best-high-value-product-prospects)

[SECTION V: KEY CONTACTS AND FURTHER INFORMATION
10](#section-v-key-contacts-and-further-information)

[PERTINENT GOVERNMENT FOOD IMPORT CONTACTS
10](#pertinent-government-food-import-contacts)

[Appendix I: Key Trade and Demographic Information
12](#appendix-i-key-trade-and-demographic-information)

[Appendix II: Total Consumer-Oriented Products Imports
13](#appendix-ii-total-consumer-oriented-products-imports)

[Appendix III: Suppliers for Consumer-Oriented Products
14](#appendix-iii-suppliers-for-consumer-oriented-products)

Appendix IV: New Tariff
Rates............................................................................................................18

# SECTION I: MARKET OVERVIEW

# 

1.1 Economic Situation

# 

In compliance with its World Trade Organization (WTO) tariff binding
commitment, the Government of Egypt (GOE) issued a presidential decree
on September 8, 2004 reducing its import tariffs on many of its
agricultural and food products, fertilizers and agricultural tractors
(see appendix IV). Egypt's tariff rates for many products have been
relatively high. Under its WTO agreement, the GOE agreed to cut its
tariffs an average of 24 percent over a ten-year period. The lowered
tariffs are expected to lead to reduce prices for the effected
commodities in the Egyptian market. U.S. products can benefit from these
changes, especially poultry, which now has a tariff of 32 percent
instead of 80 percent.

The European Union and Egypt signed a partnership agreement on June 24,
2001 whereby import tariffs on most products, including agricultural
products are to be cut substantially, or eliminated over the next 12-15
years. Both Egyptian and European exporters of various agricultural
commodities will gain substantial benefits from the Agreement. The EU 15
countries' total exports to Egypt increased from 5.8 billion Euros in
1996 to a record level of 7.8 billion Euros in 2000. The EU-Egypt
Partnership agreement may disadvantage U.S. agricultural products in the
market, particularly value added products.

1.2 Demographic Developments

## 

Egypt has a population of about 70 million with an annual growth rate of
2.03 percent. Many in the private sector estimate the unemployment rate
to be about 20 percent.

## 

# 1.3 Consumer Buying & Eating Habits

Egyptian consumers are increasingly more aware of the quality and
variety of consumer-oriented products. As a result, Egyptian consumers'
buying habits are changing dramatically. For example, in the past,
Egyptian consumers bought products, such as meat, fresh fruits, and
vegetables from small neighborhood shops. However, with the increasing
number of supermarkets and hypermarkets in Cairo and Alexandria and
services offered in one place, many middle to high-income consumers have
begun to purchase most of their food requirements from supermarkets.
Also, with changing eating habits, expansion of fast food chains, local
restaurants and resorts, there is good potential for imported products.

1.4 The Market for U.S. Products

## 

In 2003, total U.S. imports for consumer-oriented products totaled
\$41.2 million compared to \$42 million in 2002. This decrease is
attributed to the current political situation in the Middle East and the
fluctuation of the foreign exchange rate. Due to negative sentiments
about the war in Iraq and the Palestinian-Israeli conflict, the climate
for marketing American consumer-ready food products in Egypt is
difficult. Major importers reported a decrease of 30 percent in sales as
a result of these conditions. Some of the major importers of U.S.
consumer-oriented products are beginning to look for alternative supply
channels particularly in the EU. Others who have invested much effort in
promoting American brands are hoping that the situation will improve
soon.

The U.S., South Africa and European countries, mainly France, Spain,
Italy, Germany, Greece, Holland and Denmark are dominant suppliers of
consumer-ready products to Egypt.

Egypt maintains many trade barriers including abrupt rule changes,
non-transparent regulations and stringent product labeling requirements.
Egypt frequently applies reference prices, for tariff purposes, on a
number of products as well as extremely high tariffs for a few products,
such as alcoholic beverages.

The following is a summary of the advantages and challenges facing U.S.
agricultural exporters in Egypt.

+-------------------------------+---------------------------------------+
| **ADVANTAGES**                | **CHALLENGES**                        |
+-------------------------------+---------------------------------------+
| With the growing number and   | The EU-Egypt Partnership Agreement    |
| expansion of supermarket      | may disadvantage US agricultural      |
| chains, hypermarkets and the  | products in the market, particularly  |
| presence of international     | value added products unless positive  |
| chains, such as Carrefour     | trade policy changes can be made      |
| (French), Shoprite (South     | between the U.S. and Egypt in the     |
| African) and Mono Prix (soon  | future.                               |
| to open), the market          |                                       |
| opportunities for             | Egyptian import regulations and       |
| new-to-market products will   | labeling requirements are too         |
| increase.                     | stringent.                            |
+-------------------------------+---------------------------------------+
| There has been tremendous     | Many importers report there is a lack |
| growth of hotels and          | of U.S. suppliers' interest in the    |
| restaurants that cater to     | Egyptian market.                      |
| tourists.                     |                                       |
+-------------------------------+---------------------------------------+
| U.S. products are perceived   | Political conditions in the region    |
| as \"high quality products.\" | are not condusive for marketing       |
|                               | activities that highlight U.S.        |
|                               | products                              |
+-------------------------------+---------------------------------------+

## 

# SECTION II EXPORTER BUSINESS TIPS

Local Customs

On July 25, 2001, the GOE issued Ministerial Decree 765 on the
determination of the value of good for customs purposes in an attempt to
comply with its WTO obligations under the Customs Valuation Agreement.
This decree updated customs law number 66 of 1963 to reflect
implementation of the WTO Customs Valuation Agreement.

Chapter Two, Article One, Paragraph One, states that " The value for
customs purposes shall be the actual value of the deal, or the price
actually paid or to be paid as indicated in the purchase contracts, the
invoices, and other documents concerning the deal, providing they shall
be approved or accepted by the Customs Department." However, independent
experts who studied the law and compared it to the WTO Valuation
Agreement, found that Decree 765 fell short in two important areas: the
definition of "actual value" of imported goods and the Customs
Authority's continued right to reject the importer's declared price
based on its variance from similar, or identical goods.

The law states that "if the Customs Department is not convinced of the
validity of the value as declared, even after submission of the
additional documents, Customs may refuse to accept the value of the
deal. This provides Customs with a basis for continuing to use a
reference price or minimum valuation system, which is prohibited under
the WTO. Some importers report that there is nothing new in the way
Customs does its business following the implementation of the law.
Reportedly, the Customs Department still uses reference prices for
valuation purposes. When there is a dispute between the Customs
Department and importers on the value of the commodity, importers have a
right to go to arbitration, but most importers prefer to pay a
"settlement price", which is higher than the declared price in order to
avoid associated delays and costs. In sum, it appears that the use of
reference prices is still in use despite the government's attempt to
comply with the WTO rules on customs valuation. Reference prices are
frequently applied to imports of a wide range of products, including
meat, apples, nuts, poultry, sugar and other products.

Consumer Taste and Preference

The food service industry is expanding and consumers' habits are
changing. Dining outside the home is becoming more popular. The number
of working women outside the home is growing, and the number of dual
income families is increasing. Restaurants, hotels and resorts are
expanding not only in Cairo but also on the Red Sea Coast and the Sinai.
The American fast-food chains dominate the market. At present, thirty
American fast food franchisers, such as A&W, Chili's, Fuddruckers, Hard
Rock Café, KFC, Kenny Rogers, Little Caesars, Pizza Hut, McDonalds,
Quiznos and TGI Fridays operate in Egypt.

Consumers in Cairo, Alexandria, and the Red Sea area are more aware of
international trends in food. Middle and upper-middle income shoppers
are drawn to supermarket chains.

Food Standards and Regulations

The Egyptian Organization for Standardization and Quality Control (EOS)
in the Ministry of Foreign Trade and Industry has sole responsibility
for establishing, adopting and publishing food standards and codes of
practice. If no mandatory Egyptian standard exists, the following could
be applied: Egyptian product standards; International Standards
(ISO/IEC); European Standards (EN); American Standards (ANS); Japanese
Standards; and Codex Standards. Egyptian authorities are more strict in
enforcing product standards on imported food products than on locally
produced food products.

It is mandatory that colors used on internal and external packaging not
be harmful to human health. Decree 73 of 2001 issued by the Ministry of
Health also confirmed that all food wrappings should be suitable for the
product and usage. The package must NOT produce toxic substances or any
harmful compounds that may lead to coloration of contents or cause
damage to the foodstuff. Ink is prohibited to be used on the internal
surface or packages. However, external surfaces may be painted with safe
and durable inks according to handling circumstances, provided that such
materials are approved for use and that the painting material does not
permeate to the foodstuff. For products, such as butter and ice cream,
it is imperative to isolate the colored layer from the external surface
in a manner that ensures non-penetration of the color to the foodstuff.

In February 2000, Presidential Decree No. 106 was issued to centralize
the process of inspection and certification of imported goods under the
General Organization for Export/Import Control (GOEIC), Ministry of
Foreign Trade and Industry. In the past, there were five government
entities involved in the import clearance process. With the new decree,
inspection will only be done through GOEIC. However, there are
representatives from other ministries such as, the Ministry of
Agriculture and the Ministry of Health who also monitor the inspection
process. Release Certificates are not issued by GOEIC unless all
authorities approve the consignment.

Egypt requires restrictive labeling for imports of food products. With
the exception of the production and expiration dates, information in
English only (or other foreign language) is not allowed. Dates are
accepted in English, but the words \"Production\" and \"Expiry\" must be
written in Arabic. Arabic language is mandatory. Labels can be printed
on the package or be of a permanent adhesive type. Products are not
allowed to show more than one date of manufacture or expiration on the
package. For example, goods have been rejected if the inside package has
a different date than the outside carton. Information on the label
cannot be erased, scratched, or altered in any way. Requirements are
more restrictive for meat and poultry products. In November 1997, the
Ministry of Trade issued Decree No. 465 which calls for the insertion of
labels inside the packaging of imported products, including information
on the name and address of each importer in Arabic. This requirement
necessitates separate production procedures for products destined for
the Egyptian market which increases production costs and limits
marketing options for U.S. exporters. This also leads to higher prices
for Egyptian consumers.

A lower cost procedure providing full protection would be to permit the
inside label to have the U.S. manufacturing facility and production date
in English and require other information in Arabic (importer's name
etc.) on a stick-on label on the outside of the package. Amending
information on the label is permitted, but amendments must be done
inside the customs authority. Amendments can be done for some types of
information by a sticker. However, if dates need to be amended, it must
be printed on the package (outer and inner package). Amended stickers
for dates are not acceptable.

Import regulations are routinely developed and enforced without prior
notice. This makes Egypt a very risky place to do business. Also, Egypt
has mandatory standards for a number of quality characteristics, moving
beyond restrictions imposed for health and safety reasons. These
standards such as fat content in meat or brix on fruit juice are
unnecessary and their existence coupled with arbitrary enforcement lends
credence to Egypt's reputation as one of the most difficult countries in
the world in which to do business. This excessive regulation is unfair
to trading partners, raises costs to Egyptian consumers, and discourages
investment in Egypt.

Import regulations require that foodstuffs be packed in containers,
suitable to the nature and type of commodity, to be clean, sound and
free of bad smell, to be kept in good condition. Also, the consignment
should be symmetric in weight and package. The following information
should be written on each package in Arabic not liable to deletion:

> \- Name of producer and trade mark; if any
>
> \- Country of origin
>
> \- Type of product and grade

\- Name and address of importer

> \- Production and expiration date
>
> \- Product use instructions (optional)
>
> \- Product ingredients
>
> \- Storage instructions or temperature
>
> \- Net weight
>
> \- Gross weight and total number of packages per case or carton
>
> \- If the product contains preservatives, the percentage of each
> preservative should be indicated
>
> \- If the product is meat or poultry, the following statement must
> appear: \"Slaughtered according to the Islamic ritual\" or \"halal
> slaughtered\"

Egyptian shelf-life requirements for food products differ in many
respects from the standards used by other countries. \"Best-Used-By\"
dates are not acceptable in Egypt. Egyptian shelf-life standards ignore
quality difference between producers and are often established without
scientific basis.

For more information on Egypt's import requirements, please refer to
FAS/Cairo, Food and Agricultural Import Regulations and Standards
(FAIRS) / EG 2026 available on the FAS web site
[www.fas.usda.gov]{.underline}

## General Tips to Exporters

-   Egyptian importers often complain that U.S. suppliers are not
    informed about local market conditions and requirements. U.S.
    exporters should closely consult with importers to ensure that
    Egyptian import requirements are met in order to avoid unnecessary
    delays at customs.

-   Consider visiting Egypt. U.S. suppliers who are interested in doing
    business in Egypt are encouraged to visit Egypt in order to better
    understand the potential of the market.

-   Production and expiry dates are mandatory and Arabic/English labels
    or stickers are required. A thorough report on Food and Agricultural
    import Regulations and Standards (FAIRS) Report is accessible via
    the FAS On-Line web site: [www.fas.usda.gov. (Attache
    Reports)]{.underline}

-   Encourage and assist your local agent or distributor. Egyptian
    importers can promote your products. They can use various tools,
    such as free samples, advertising, in-store displays, and price
    discounts during promotional activities.

-   Target reliable importers. Contact FAS/Cairo to obtain a list of
    local importers; Tel: 011 (2-02) 797-2388 / 2389; Fax: 011 (2-02)
    796-3989; E-mail: [AgCairo@usda.gov.]{.underline}

-   Advertisements. Television advertising is expensive. However,
    advertisement in monthly magazines is effective when targeting a
    specific audience. Also, there are specific magazines for hotels and
    restaurants.

-   Consider participating in FAS Cairo organized or sponsored events.
    FAS Cairo normally organizes a variety of market development
    activities including in-store promotions, trade shows, cooking
    demonstrations in cooperation with Egyptian importers, retailers,
    hotels, restaurants, institutions and companies. For more
    information, please contact FAS Cairo on how to participate.

-   Be ready to accept smaller than normal orders or share a shipment
    with other suppliers. Local importers tend to purchase small
    quantities to introduce new-to-market products until they are
    confident that the product has market potential.

# SECTION III: MARKET SECTOR STRUCTURE AND TRENDS

1\. RETAIL FOOD SECTOR

Egyptian consumers have an increasing demand for quality and variety.
Demand for consumer ready products is trending upward due to the
expansion of local supermarket chains and multi-national firms investing
in Egypt, such as Carrefour and Shoprite. This is attributed to the fact
that Egyptian buying habits are changing dramatically. In 2003, U.S.
consumer-oriented products imports totaled \$42 million.

In the retail food sector, products are imported by an importer or an
agent who may also be a wholesaler and/or a distributor. There are three
supermarket chains which import food products directly. The market for
consumer-ready food products are concentrated in Cairo (16 million) and
Alexandria (5 million). However, Metro, the largest local supermarket
chain is expanding into the Red Sea area and other governorates.

For more detailed description of Egypt's retail food market, please
refer to FAS/Cairo global Agriculture Information Network (GAIN) Report
No. EG1032 available via FAS web site [www.fas.usda.gov]{.underline}

2\. H.R.I. SECTOR

The food service industry is expanding, and consumers' habits are
changing. For example, total number of hotels in Sharm El Sheikh (Red
Sea Resort) is currently 169 hotels. The Egyptian Government continues
to encourage investment in hotels, and tourist resorts. The hotels are
price sensitive. Imports from Europe, New Zealand, and Canada represent
91 percent compared to 9 percent from the U.S. Among products imported
for hotels are high quality beef, seafood (lobsters & soft crabs),
sauces, canned vegetables and fruits, Tex Mex products and beef liver.
Volume of meat imports may increase substantially if government
requirements are simplified and the seven percent fat content
requirement on beef imports is abolished.

American-style food chains are becoming increasingly popular in Egypt,
providing consumers with a wide range of choices. The current political
climate in the region and devaluation of the pound are having a negative
impact on the economy particularly on imports. Some food franchisees are
reporting a decrease of 30 percent in revenue as a result of these
conditions.

3\. FOOD PROCESSING

The processed food sector is one of the key economic sectors in Egypt.
Its contribution to value added, employment and exports is high and
increasing. The Arab countries, particularly the Gulf States are
traditional export markets for Egypt's canned and frozen food products.
European Union countries, and to a lesser extent the United States and
Asian markets are also potential markets for Egyptian processed food
products. About 25 percent of the processing sector is located in Cairo
and Alexandria with 40 percent of the total manpower employed.

Following are some highlights on the different product sectors:

-   Dairy product facilities represent about 9 percent of the overall
    food sector.

-   The production of sweets and confectionery products depends heavily
    on imported sugar, cocoa, beans, oils, fats, coconut milk, nuts and
    dried fruits.

-   Fruits and vegetables constitute a substantial resource base for the
    production of a wide range of beverages although the production of
    several varieties of soft drinks is based on imported ingredients.
    Egyptian production of beverages includes mineral and bottled
    waters, soft drinks, and the processing and packaging of imported
    tea and coffee as well as alcoholic products such as beer, wine,
    brandy, rum and ouzo.

**Distribution System for Processed Food Products in the Market**

## Distribution System for Imported Products in the Market

## 

## 

## 

## 

# SECTION IV: BEST HIGH VALUE PRODUCT PROSPECTS

Dressings, sauces, and seasonings

Spices

Apples

Nuts and dried fruit

Mexican food items

High quality beef (provided that BSE, labeling & fat content issues are
resolved)

Cheese

Speciality flour

Seafood (lobsters & soft Crabs)

Chocolates (as raw material for bakery and pastry)

## SECTION V: KEY CONTACTS AND FURTHER INFORMATION

U.S. Mailing Address: Office of Agricultural Affairs

Unit 64900, Box 22

APO AE 09839-4900

Local Mailing Address:8 Kamal El Din Salah Street

Garden City

Cairo, Egypt

Tel: 01-1 (2-02) 797-2388 / 2389

Fax: 01-1 (2-02) 796-3989

E-mail: AgCairo@usda.gov

Internet Homepage: www.usembassy.egnet.net/agricult.htm

# PERTINENT GOVERNMENT FOOD IMPORT CONTACTS

# MINISTRY OF AGRICULTURE

Contact: **Dr. Salah El Din Sharaf**

Undersecretary for Agricultural Quarantine

> Tel: (20-2) 336-3582
>
> Fax: (20-2) 337-2881 / 336-1727

## Dr. Rabie Saber Eid

Undersecretary for Veterinary Quarantine

> Tel: (20-2) 336-1727
>
> Fax: (20-2) 337-2881

GENERAL ORGANIZATION FOR EXPORT AND IMPORT CONTROL (GOEIC), MINISTRY OF
FOREIGN TRADE AND INDUSTRY

Contact: **General Mohamed Abdel Hamid El Banaa**

Chairman

> Tel: (20-2) 575-6130 / 6095
>
> Fax: (20-2) 576-6971 / 575-8195

## Eng. Raghib Hozaien

Undersecretary for Import Control for Food Imports

> Tel: (20-2) 574-1654
>
> Fax: (20-2) 575-8195

MINISTRY OF HEALTH & POPULATION

Contact: **Dr. Zeinab Abdel Halim**

Director of Food Safety and Control Division

Food and & Quality Control

> Tel: (20-2) 794-8152
>
> Fax: (20-2) 794-8152

CENTRAL HEALTH LABORATORY

Address: 19 El Sheikh Rihan Street

Cairo, Egypt

Tel: (20-2) 794-7271 / 2 / 3

Fax: (20-2) 796-2248

Contact: **Dr. Magda Ali Rakha**

First Undersecretary for Central Health Laboratory

FOOD INSTITUTE

Contact: **Dr. Hoda Abdel Fattah Hassan**

Chairman

Dr. Reda El Sherbiny

Food Hygiene, Food Institute

> Tel: (20-2) 364-6413 / 3522
>
> Fax: (20-2) 364-7476

EGYPTIAN ORGANIZATION FOR STANDARDIZATION & QUALITY CONTROL (EOS)

Contact: **Dr. Eng. Mahmoud Eisa**

Chairman

> Tel: (20-2) 603-1349 / 259-3480
>
> Fax: (20-2) 603-1351

# Appendix I: Key Trade and Demographic Information

Total Imports (billion) \$11.98

Total Agricultural Imports (billion) \$2.8

Total Agricultural Imports

as a percent of Total Imports 23 percent

Total Agricultural Imports

from the U.S. (billion) \$1,007

Total Consumer Oriented Products

from U.S. (million) \$41.2

U.S. Ag. Market Share 36 percent

Population (million) 69.2

Population Growth 1.99

Inflation Rate 4 percent \*

Agriculture's Contribution to GDP 16.6 percent

Exchange Rate (US\$ 1 = L.E. 6.20) on September 30, 2004

\* However, according to the wholesale price, the inflation rate is
18.5%.

Source: - Central Agency for Public Mobilization and Statistics (CAPMAS)

\- Information and Decision Support Center (IDSC)

\- UN Trade Data

## Appendix II: Total Consumer-Oriented Products Imports 

+----------------+---------+--------+-----+----------+-------+-----+
| ***PRODUCT***  | ***2003 |        |     | *        |       |     |
|                | (VA     |        |     | **2002(V |       |     |
|                | LUE)*** |        |     | ALUE)*** |       |     |
+----------------+---------+--------+-----+----------+-------+-----+
|                | ***W    | ***U   | **  | ***      | ***U. | **  |
|                | ORLD*** | .S.*** | *US | WORLD*** | S.*** | *US |
|                |         |        | *** |          |       | *** |
|                |         |        |     |          |       |     |
|                |         |        | **  |          |       | **  |
|                |         |        | *SH |          |       | *SH |
|                |         |        | ARE |          |       | ARE |
|                |         |        | *** |          |       | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***FRESH       | *       | *      | **  | ***2,96  | ***   | **  |
| VEGETABLES***  | **1,656 | **0*** | *0% | 4,167*** | 0%*** | *0% |
|                | ,635*** |        | *** |          |       | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***FROZEN      | ***     | ***    | *** | ***4,48  | ***   | **  |
| VEGETABLES***  | \-\-\-\ | \-\-\- | \-\ | 2,940*** | 0%*** | *0% |
|                | -\--*** | \--*** | -\- |          |       | *** |
|                |         |        | \-- |          |       |     |
|                |         |        | *** |          |       |     |
+----------------+---------+--------+-----+----------+-------+-----+
| ***DRIED       | *       | *      | **  | ***15,16 | ***   | **  |
| VEGETABLES***  | **9,961 | **136, | *1% | 3,857*** | 297,5 | *2% |
|                | ,372*** | 818*** | *** |          | 19*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***NUTS***     | *       | ***    | *** | ***11,92 | ***2, | *** |
|                | **8,820 | 2,330, | 26% | 4,865*** | 582,1 | 22% |
|                | ,115*** | 018*** | *** |          | 07*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***FRESH       | **      | ***    | *** | ***1,61  | **    | **  |
| FRUIT***       | *16,329 | 2,226, | 14% | 4,873*** | *33,5 | *2% |
|                | ,101*** | 387*** | *** |          | 67*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***APPLES***   | **      | ***    | *** | ***18,37 | ***3, | *** |
|                | *14,416 | 2,193, | 15% | 7,459*** | 574,1 | 19% |
|                | ,939*** | 442*** | *** |          | 82*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***DRIED       | *       | ***36, | *** | ***8,94  | ***   | **  |
| FRUIT***       | **2,173 | 766*** | 20% | 3,397*** | 223,0 | *2% |
|                | ,885*** |        | *** |          | 36*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***COFFEE***   | *       | ***65, | **  | ***6,36  | **    | **  |
|                | **6,306 | 010*** | *1% | 9,387*** | *11,7 | *0% |
|                | ,337*** |        | *** |          | 46*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***SPICES***   | *       | *      | **  | ***42    | **    | **  |
|                | **6,961 | **\-\- | *0% | 8,460*** | *0*** | *0% |
|                | ,402*** | \-\-\- | *** |          |       | *** |
|                |         | \-\-\- |     |          |       |     |
|                |         | \--*** |     |          |       |     |
+----------------+---------+--------+-----+----------+-------+-----+
| ***BEEF CANNED | *       | ***22, | **  | ***1,78  | **    | **  |
| (RED MEAT      | **2,645 | 143*** | *1% | 3,510*** | *0*** | *0% |
| PREPARED)***   | ,581*** |        | *** |          |       | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***RED MEAT    | ***     | ***    |     | *        | ***   | **  |
| (FRESH,        | 150,453 | 1,828, |     | **191,41 | 156,0 | *0% |
| CHILLED,       | ,207*** | 521*** |     | 9,592*** | 34*** | *** |
| FROZEN)***     |         |        |     |          |       |     |
+----------------+---------+--------+-----+----------+-------+-----+
| ***BOVINE,     | **      | ***3   | *   | ***34,27 | *     | *   |
| OFFALS         | *35,508 | 5,490, | **1 | 6,728*** | **34, | **1 |
| FROZEN***      | ,805*** | 316*** | 00% |          | 169,4 | 00% |
|                |         |        | *** |          | 74*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***FROZEN      | **      | ***2,  | **  | ***64,07 | ***3, | **  |
| FISH***        | *61,164 | 018*** | *0% | 0,544*** | 135,7 | *5% |
|                | ,501*** |        | *** |          | 55*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***BISCUIT     | *       | *      | **  | ***3,72  | ***   | *** |
| /BR            | **2,158 | **184, | *9% | 9,473*** | 984,7 | 26% |
| EAD/WAFFLES*** | ,070*** | 280*** | *** |          | 98*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***JAMS***     | *       | ***    | *** | ***31    | **    | *** |
|                | **5,458 | \-\-\- | \-\ | 6,621*** | *49,2 | 16% |
|                | ,983*** | \--*** | -\- |          | 59*** | *** |
|                |         |        | \-- |          |       |     |
|                |         |        | *** |          |       |     |
+----------------+---------+--------+-----+----------+-------+-----+
| ***JUICES***   | *       | ***31, | **  | ***1,22  | **    | **  |
|                | **1,215 | 346*** | *3% | 2,398*** | *89,2 | *7% |
|                | ,330*** |        | *** |          | 98*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***SAUCES /    | ***599  | *      | *** | ***80    | ***   | *** |
| MAYONNAISE /   | ,350*** | **201, | 34% | 6,375*** | 299,6 | 37% |
| KETCHUP***     |         | 212*** | *** |          | 58*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***ICE         | ***755  | ***2,  | **  | ***97    | ***   | *** |
| CREAM***       | ,415*** | 901*** | *0% | 4,029*** | 205,0 | 21% |
|                |         |        | *** |          | 44*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***JELLY***    | ***72   | ***36, | *** | ***0***  | **    |     |
|                | ,653*** | 284*** | 50% |          | *0*** |     |
|                |         |        | *** |          |       |     |
+----------------+---------+--------+-----+----------+-------+-----+
| ***BEER***     | ***0    | *      | **  | ***1     | **    | **  |
|                | .866*** | **0*** | *0% | 1,887*** | *0*** | *0% |
|                |         |        | *** |          |       | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***WINE***     | ***116  | ***78, | *** | ***20    | **    | **  |
|                | ,803*** | 347*** | 67% | 4,127*** | *16,8 | *8% |
|                |         |        | *** |          | 25*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***PET FOOD*** | *       | *      | *** | ***1,20  | ***   | *** |
|                | **1,477 | **565, | 38% | 9,008*** | 152,5 | 13% |
|                | ,218*** | 988*** | *** |          | 22*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***PASTAS***   | ***593  | ***27, | **  | ***89    | *     | **  |
|                | ,339*** | 736*** | *5% | 2,919*** | **4,1 | *0% |
|                |         |        | *** |          | 99*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***CHEESE***   | **      | *      | **  | ***22,65 | ***   | **  |
|                | *17,975 | **290, | *2% | 2,069*** | 230,7 | *1% |
|                | ,343*** | 841*** | *** |          | 55*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***BUTTER***   | **      | *      | **  | ***65,80 | **    | **  |
|                | *57,746 | **0*** | *0% | 1,264*** | *0*** | *0% |
|                | ,202*** |        | *** |          |       | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***MILK        | **      | ***0.  | **  | ***33,83 | ***1, | **  |
| POWDER***      | *42,153 | 256*** | *0% | 7,190*** | 600,7 | *5% |
|                | ,619*** |        | *** |          | 13*** | *** |
+----------------+---------+--------+-----+----------+-------+-----+
| ***PASTEURIZED | ***100  | ***10, | *   | ***15    | **    | *** |
| EGGS***        | ,129*** | 032*** | **1 | 2,413*** | *42,7 | 28% |
|                |         |        | 00% |          | 03*** | *** |
|                |         |        | *** |          |       |     |
+----------------+---------+--------+-----+----------+-------+-----+

*Source: Central Agency for Public Mobilization and Statistics (CAPMAS)*

## Appendix III: Suppliers for Consumer-Oriented Products

##  

+---------------------+----------------+---------------+---------------+
| ***SUPPLIERS OF     |                |               |               |
| CONSUMER FOODS      |                |               |               |
| AND***              |                |               |               |
|                     |                |               |               |
| ***EDIBLE FISHERY   |                |               |               |
| PRODUCTS (CY        |                |               |               |
| 2003)***            |                |               |               |
+=====================+================+===============+===============+
| ***PRODUCT***       | ***LARGEST***  | ***MARKET***  | ***U.S.       |
|                     |                |               | MARKET***     |
|                     | *              | ***SHARE      |               |
|                     | **SUPPLIERS*** | (%)***        | ***SHARE      |
|                     |                |               | (%)***        |
+---------------------+----------------+---------------+---------------+
| Fresh Veg.          | China          | 95%           | 0 %           |
+---------------------+----------------+---------------+---------------+
| Fresh Fruit         | Lebanon        | 41%           | 14%           |
|                     |                |               |               |
|                     | Syria          | 16%           |               |
+---------------------+----------------+---------------+---------------+
| Dried Fruit         | Turkey         | 60%           | 1%            |
|                     |                |               |               |
|                     | France         | 14%           |               |
+---------------------+----------------+---------------+---------------+
| Nuts                | Turkey         | 34%           | 26%           |
|                     |                |               |               |
|                     | India          | 21%           |               |
+---------------------+----------------+---------------+---------------+
| Coffee              | Indonesia      | 48%           | 1%            |
|                     |                |               |               |
|                     | Brazil         | 16%           |               |
|                     |                |               |               |
|                     | China          | 13%           |               |
|                     |                |               |               |
|                     | Italy          | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Spices              | Vietnam        | 43%           | 1%            |
|                     |                |               |               |
|                     | Singapore      | 15%           |               |
|                     |                |               |               |
|                     | Sri Lanka      | 11%           |               |
+---------------------+----------------+---------------+---------------+
| Red Meat Prepared   | Brazil         | 93%           | 0%            |
+---------------------+----------------+---------------+---------------+
| Red Meat (fresh,    | Brazil         | 71%           | 0%            |
| chilled, frozen)    |                |               |               |
+---------------------+----------------+---------------+---------------+
| Bovine, offals      | \-\-\-\-\-\-\  | \-\           | 100%          |
| frozen              | -\-\-\-\-\-\-- | -\-\-\-\-\-\- |               |
|                     |                | \-\-\-\-\-\-- |               |
+---------------------+----------------+---------------+---------------+
| Frozen Fish         | Netherlands    | 46%           | 0%            |
|                     |                |               |               |
|                     | Mauritania     | 13%           |               |
|                     |                |               |               |
|                     | Ireland        | 12%           |               |
|                     |                |               |               |
|                     | United Kingdom | 8%            |               |
+---------------------+----------------+---------------+---------------+

+---------------------+----------------+---------------+---------------+
| ***PRODUCT***       | ***LARGEST***  | ***MARKET***  | ***U.S.       |
|                     |                |               | MARKET***     |
|                     | *              | ***SHARE      |               |
|                     | **SUPPLIERS*** | (%)***        | ***SHARE      |
|                     |                |               | (%)***        |
+---------------------+----------------+---------------+---------------+
| Other Food          | Ireland        | 15%           | 18%           |
| Preparations        |                |               |               |
|                     | Turkey         | 11%           |               |
|                     |                |               |               |
|                     | Germany        | 7%            |               |
+---------------------+----------------+---------------+---------------+
| Jams                | Syria          | 84%           | 0%            |
+---------------------+----------------+---------------+---------------+
| Juices              | Spain          | 59%           | 3%            |
|                     |                |               |               |
|                     | Cyprus         | 4%            |               |
|                     |                |               |               |
|                     | Denmark        | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Sauces / Mayonnaise | India          | 19%           | 34%           |
| / Ketchup           |                |               |               |
|                     | Oman           | 9%            |               |
|                     |                |               |               |
|                     | Netherlands    | 8%            |               |
+---------------------+----------------+---------------+---------------+
| Ice Cream           | France         | 69%           | 0%            |
|                     |                |               |               |
|                     | Mexico         | 17%           |               |
+---------------------+----------------+---------------+---------------+
| Beer                | Netherlands    | 100%          | 0%            |
+---------------------+----------------+---------------+---------------+
| Wine                | EEC            | 68%           | 10%           |
|                     |                |               |               |
|                     | France         | 8%            |               |
+---------------------+----------------+---------------+---------------+
| Pet Food            | Germany        | 11%           | 38%           |
|                     |                |               |               |
|                     | Australia      | 8%            |               |
+---------------------+----------------+---------------+---------------+
| Pastas              | Indonesia      | 33%           | 5%            |
|                     |                |               |               |
|                     | Italy          | 28%           |               |
+---------------------+----------------+---------------+---------------+
| Cheese              | Netherlands    | 47%           | 0%            |
|                     |                |               |               |
|                     | Denmark        | 6%            |               |
|                     |                |               |               |
|                     | New Zealand    | 9%            |               |
|                     |                |               |               |
|                     | France         | 2%            |               |
+---------------------+----------------+---------------+---------------+
| Butter              | New Zealand    | 50%           | 0%            |
|                     |                |               |               |
|                     | Netherlands    | 16%           |               |
|                     |                |               |               |
|                     | Australia      | 11%           |               |
+---------------------+----------------+---------------+---------------+
| Pasteurized Eggs    | Germany        | 56%           | 10%           |
|                     |                |               |               |
|                     | Italy          | 17%           |               |
+---------------------+----------------+---------------+---------------+

###### Appendix IV: New Tariff Rates

+--------------------------------+------------------+------------------+
| ***Product***                  | ###### Before    | ###### After     |
+--------------------------------+------------------+------------------+
| Poultry                        | 80%              | 32%              |
+--------------------------------+------------------+------------------+
| Fats and tallow                | 40%              | 22%              |
+--------------------------------+------------------+------------------+
| Shrimp and lobster             | 30%              | 5%               |
+--------------------------------+------------------+------------------+
| Milk                           | 30%              | 5%               |
+--------------------------------+------------------+------------------+
| Cream                          | 40%              | 32%              |
+--------------------------------+------------------+------------------+
| Cheese                         | 30%              | 22%              |
+--------------------------------+------------------+------------------+
| Legumes                        | 20%              | 5%               |
+--------------------------------+------------------+------------------+
| Chick peas and garbanzo        | 20%              | 5%               |
+--------------------------------+------------------+------------------+
| Nuts (almonds, cashews,        | 30%              | 12%              |
| hazelnuts, walnuts)            |                  |                  |
+--------------------------------+------------------+------------------+
| Dried apricots                 | 40%              | 22%              |
+--------------------------------+------------------+------------------+
| Dried plums                    | 40%              | 22%              |
+--------------------------------+------------------+------------------+
| Tea                            | 30%              | 5%               |
+--------------------------------+------------------+------------------+
| Vanilla, Anise, nutmeg         | 20%              | 5%               |
+--------------------------------+------------------+------------------+
| Raw sugar                      | 5%               | 2%               |
+--------------------------------+------------------+------------------+
| Prepared soy oil               | 20%              | 12%              |
+--------------------------------+------------------+------------------+
| Prepared palm oil              | 20%              | 12%              |
+--------------------------------+------------------+------------------+
| Salmon                         | 10%              | 5%               |
+--------------------------------+------------------+------------------+
| Tuna                           | 10%              | 5%               |
+--------------------------------+------------------+------------------+
| Chocolate                      | 40%              | 32%              |
+--------------------------------+------------------+------------------+
| Cocoa                          | 20%              | 5%               |
+--------------------------------+------------------+------------------+
| Hard and softwood              | 8%               | 5%               |
+--------------------------------+------------------+------------------+
| Block boards (covered)         | 43%              | 12%              |
+--------------------------------+------------------+------------------+
| Block boards (uncovered)       | 30%              | 12%              |
+--------------------------------+------------------+------------------+
| Plywood                        | 33%              | 12%              |
+--------------------------------+------------------+------------------+
| Veneer                         | 15%              | 5%               |
+--------------------------------+------------------+------------------+
| Fertilizers                    | 8-33%            | 2%               |
+--------------------------------+------------------+------------------+
| Agricultural tractors          | 13-33%           | 5%               |
+--------------------------------+------------------+------------------+
| Tires of agricultural tractors | 33%              | 5%               |
+--------------------------------+------------------+------------------+
| Spare parts for agricultural   | 13-30%           | 2%               |
| tractors                       |                  |                  |
+--------------------------------+------------------+------------------+