99-2727 MOREPRESS RELEASE
PRESS/TPRB/107
25 June 1999
TRADE POLICY REVIEW BODY
REVIEW OF EGYPT
TPRB'S EVALUATION
The Trade Policy Review of the World Trade Organization (WTO) concluded its second review of
Egypt's trade policies on 24 and 25 June 1999. The text of the Chairperson's concluding remarks is
attached as a summary of the salient points which emerged during the discussion. The review enablesthe TPRB to conduct a collective examination of the full range of trade policies and practices of each
WTO member countries at regular periodic intervals to monitor significant trends and developments
which may have an impact on the global trading system.
The review is based on two reports which are prepared respectively by the WTO Secretariat
and the government under review and which cover all aspects of the country's trade policies, including
its domestic laws and regulations, the institutional framework, bilateral, regional and other
preferential agreements, the wider economic needs and the external environment. A record of the
discussion and the Chairperson's summing-up together with these two reports will be published in due
course at the complete trade policy review of Egypt and will be available from the WTO Secretariat,Centre William Rappard, 154 rue de Lausanne, 1211 Geneva 21.
Since December 1989, the following reports have been completed: Argentina (1992 & 1999),
Australia (1989, 1994 & 1998), Austria (1992), Bang ladesh (1992), Benin (1997), Bolivia (1993),
Botswana (1998), Brazil (1992 & 1996), Burkina Faso (1998), Cameroon (1995), Canada (1990,
1992, 1994, 1996 & 1998), Chile (1991 & 1997), Colombia (1990 & 1996), Costa Rica (1995), Côte
d'Ivoire (1995), Cyprus (1997), the Czech Republi c (1996), the Dominican Republic (1996), Egypt
(1992 & 1999), El Salvador (1996), the European Communities (1991, 1993, 1995 & 1997), Fiji
(1997), Finland (1992), Ghana (1992), Guinea ( 1999), Hong Kong (1990, 1994 & 1998), Hungary
(1991 & 1998), Iceland (1994), India (1993 & 1998), Indonesia (1991,1994 & 1998), Israel (1994),
Jamaica (1998), Japan (1990, 1992, 1995 & 1998), Kenya (1993), Korea, Rep. of (1992 & 1996),PRESS/TPRB/107
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MORELesotho (1998), Macau (1994), Malaysia (1993 & 1997), Mali (1998), Mauritius (1995), Mexico
(1993 & 1997), Morocco (1989 & 1996), New Zeal and (1990 & 1996), Namibia (1998), Nigeria
(1991 & 1998), Norway (1991 & 1996), Pakistan (1995), Paraguay (1997), Peru (1994), the
Philippines (1993), Poland (1993), Romania (1 992), Senegal (1994), Singapore (1992 & 1996),
Slovak Republic (1995), the Solomon Islands (1 998), South Africa (1993 & 1998, Sri Lanka(1995),
Swaziland (1998), Sweden (1990 & 1994), Switzerland (1991 & 1996), Thailand (1991 & 1995),
Togo (1999), Trinidad and Tobago (1998), Tunisi a (1994), Turkey (1994 & 1998), the United States
(1989, 1992, 1994 & 1996), Uganda (1995), Urugua y (1992 & 1998), Venezuela (1996), Zambia
(1996) and Zimbabwe (1994).PRESS/TPRB/107
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MORETRADE POLICY REVIEW BODY
REVIEW OF EGYPT
CONCLUDING REMARKS BY THE CHAIRPERSON
The second Trade Policy Review of Egypt was conducted on 24 and 25 June 1999.  These
remarks, prepared on my own responsibility, summariz e the main points of the discussion;  they are
not a  full report.  Details of the discussions will be fully reflected in the minutes of the meeting.
The discussion developed under three main themes:  (i) economic environment;  (ii) trade
policies and practices;  and (iii) sectoral policies.
Economic Environment
Members congratulated Egypt on its economic reform initiated in 1990/91, in which trade
liberalization had been important;  macroeconomic indicators and growth had improved significantly
and GDP per capita had virtually doubled.  Members felt that for Egypt to achieve its objective of
annual growth of 7-8%, it would need to expand  and diversify exports, attract more foreign
investment and improve confidence through greater transparency and predictability in its economic
environment.  Members welcomed Egypt's commitmen t to the multilateral trading system and noted
the importance of its increased participation in regional agreements remaining in accord with
multilateral rules.
In response, the Egyptian delegate emphasized that reform would continue.  Efforts to expand
and diversify exports were under way, including through export promotion, but Egyptian exports
faced market-access constraints, particularly anti-dumping measures and technical requirements.
Investment would be encouraged, including by an increased national capacity, the further removal of
restrictions and by improving accountability and predictability of the trade regime.  Egypt's economicreform emphasized private sector participation and market based competition, supported by an
adequate social safety net such that benefits were distributed among the population.  Egypt remained
committed to the multilateral trading system, with regional and other links fully in compliance with
WTO obligations and seen as a step towards increasing exports.
Trade policies and practices
Members congratulated Egypt on its wide-ranging trade reform.  They noted that most non-
tariff barriers had been removed, tariff rates had been reduced and rationalized, although a degree of
escalation remained.  There was concern that some 12% of applied tariffs appeared to breach WTO
bindings.  Some Members asked about the requirement that goods be shipped directly from their
country of origin and about recent changes raising margins on letters of credit.  Questions were askedabout customs procedures, the application of standards and about quality controls on imports.
Members commended Egypt for the removal of export controls. Egypt was encouraged to
bring its intellectual property rights and trade defence legislation into conformity with WTO
Agreements.  Some Members asked when Egypt would accede to the Agreement on GovernmentProcurement and suggested that the 15% preference for Egyptian bidders might lead to inefficiencies.
In response, the Egyptian delegate noted that special shipment requirements were a response
to a surge in imports of counterfeit consumer goods;  the requirement would be reconsidered as part of
a programme to harmonize rules of origin.  Customs ensured that applied tariffs did not breach WTObindings.  Egypt intended the timely implementatio n of its WTO obligations on TRIPs, Textiles and
Clothing, and Customs Valuation.  Trade defence legislation had been notified to the WTO, and was
applied in accord with multilateral rules.PRESS/TPRB/107
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ENDThe Egyptian delegate detailed the application of technical requirements, stressing that most
imports were subject to international standards, but he agreed that there was scope for a greater
harmonization of domestic standards with international norms.  Quality controls had been necessary
to ensure compliance with standards.  The increas ed appeals against customs decisions reflected the
high level and diversification of imports.  Banks were not subject to restrictions on financing imports,including by letters of credit.
Sectoral policies
In agriculture, Members noted that there now remained virtually no controls on trade.  Some
saw Egypt as having a comparative advantage in exports of horticultural products but wondered about
market access for these products. The manufacturing sector was seen as a future area of growthespecially in industries such as food processing and textiles and clothing.  Some Members asked why
textiles and clothing remained subject to quantitative restrictions and it was noted there appeared to be
restrictions on cement and poultry.  In the automobile sector, some Members questioned the recent
ruling restricting imports of motor vehicles to their year of manufacture.
Services were seen as crucial infrastructural support and their further reform was thought vital
for continued economic growth. Financial services and telecommunications were particularly
important for attracting foreign direct investment, and a Member urged further liberalization of
maritime transport.  Members looked forward to Egypt's continued participation in future services
negotiations in the WTO.
In response, the delegate from Egypt mentioned various steps being taken to raise
productivity in the manufacturing sector.  On textiles and clothing, restrictions would be phased out
by 2002.  All imported goods, including automobiles, had to be new.  There were no import
restrictions on cement and poultry slaughtered according to Islamic law could be freely imported.  Inservices, he noted that the ongoing liberalization and privatization of key activities allowed Egypt to
look forward, in future negotiations, to an opening of markets in areas where it enjoyed a competitive
advantage.  Liberalization and privatization in agriculture had been far-reaching, the policy focus
having shifted from self-sufficiency to food security and export-competitive production.  However,
Egypt remained deeply concerned that the expectations of net food importing developing countries atthe end of the Uruguay Round had not been met.
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Conclusions
In conclusion, it is my feeling that Members greatly appreciated Egypt's reform programme,
particularly on the trade front,  which had produced results in a relatively short period of time.  Notonly had economic growth been strong, but Egypt has successfully withstood the effects of external
shocks.  Egypt's emphasis on a strong social safety net, to support reform, is particularly welcome.
Egypt was strongly encouraged to build on these achievements and to accelerate its trade reforms,
including by improving the predictability and transparency of its economic environment, which could
lead to improved trade and investment flows.  It is also my feeling that Members welcomed Egypt's
commitment to the multilateral trading system and that the system should support the Egyptian reform
effort, particularly by keeping markets open.