. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/284
25 July 2001
(01-3698)
Council for Trade in Goods Original:  English
QUESTIONS FROM THE EUROPEAN COMMUNITIES TO EGYPT
REGARDING THE EGYPTIAN REQUEST PURSUANT TO ARTICLE 5.3 OF
THE TRIMS AGREEMENT
The following communication, dated 23 July 2001, has been received from the Permanent
Mission of the European Commission.
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EC Questions
1. We understand from the Egyptian 1995 notificat ion (G/TRIMS/N/1/EGY/1) that there are no
local content laws or regulations but that certain incentives are offered in order to promote the
establishment and development of domestic industries. We further understand that these incentives are
voluntary in nature and allow producers to set-off their import duties through their use of locally
produced components.
(a) Please provide a detailed description of the existing incentive schemes or any other
measure which the 1995 notification covers (hereinafter jointly  referred to as
“measures”) and how they are applied and administered (e.g. whether a minimum
percentage of local content is required before a reduction in import duties can be
obtained and whether the import duties can be fully or only partially set-off by the use
of domestically produced components. If only partially, what is then the maximum
percentage that can be set-off?).
(b) Please also indicate where the actual text of the various measures covered by the
1995 notification, may be found.
(c) Please also indicate any modifications to the original measures as well as any new
measures adopted and indicate the reason for such modifications/adoptions.
(d) If our understanding of the measures is not correct, please outline the differences
between our understanding of the measures notified in 1995 and currently in force, ascompared to the actual state of affairs.
2. We further understand that the measures apply across the board to all industries without any
limitations. Is that correct?
(a) If not, please outline the precise scope of coverage of the measures.
3. We understand that the measures are voluntary in nature. In other words, compliance with the
measures is not a precondition for foreign operators to produce in Egypt but only a precondition for
the reduction in import duties. Is this correct?G/C/W/284
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4. If a firm, through its use of domestically produced components, qualifies for a corresponding
reduction in import duties under the scheme, might this firm have recourse to domestic courts to seek
the enforcement of such reduction? How is the reduction in import duties administered, i.e. through a
lower duty actually being levied, a reimbursement of duties already paid, and/or other measures?
5. What is the value in monetary terms so far from firms’ compliance with the measures? How
can the value of the measures be quantified? Please also provide a detailed breakdown of the different
kinds of industries that have benefited from the measures in the period from their adoption until
present.
6. On what basis are the measures considered to be effective in attaining the aims and rationale
put forward for both their initial adoption and for their possible extension?
More specifically, to which extent are the measures considered to have contributed to:
(a) The development of the industrial base and in particular the feeding industries.
(b) What has been the actual development in these sectors and how would that
development be affected should the WTO not grant the requested extension?
(c) Attracting investments and ensure transfer of technology.
(d) What would be the effect on investment flows into Egypt should the WTO not grant
the requested extension?
(e) Providing employment opportunities.
(f) What would be the effect on employment should the WTO not grant the requested
extension?
(g) Addressing the chronic deficit in the Egyptian balance of trade.
(h) To what extent have the measures actually contributed towards an amelioration of the
trade deficit and what would be the effect should the WTO not grant the requested
extension?
7. When did the Government of Egypt (“GoE”) realise that it would be unable to meet the
deadline of 31 December 1999 to eliminate the TRIMs?
8. Why did the GoE wait until 23 February 2001 to notify its request for extension?9. Why did the GoE request an extension for five years? How did it arrive at the conclusion that
this was the extension period required?
10. When would the GoE be in a position to circulate information on the domestic process
leading to the elimination of the measures, both from a legislative and from an industrial policy point
of view?
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