WORLD TRADE
ORGANIZATIONWT/REG98/R/B/1
G/L/364
14 April 2000
(00-1526)
Original:  English
CO-OPERATION AGREEMENT BETWEEN THE
EUROPEAN COMMUNITY AND EGYPT
Biennial Report on the Operation of the Agreement
Communication from the Parties
The report below presents the information rece ived from the Permanent Delegation of the
European Commission, dated 21 March 2000.  It is organized in accordance to the Standard Format
for Information on Regional Trade Agreements (WT/REG/W/6).
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I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and Dates of Signature, Ratification and Entry into Force
The first co-operation agreement between the European Community and Egypt (concluded for
an unlimited period) was signed on 18 January 1977 and entered into force on 1 November 1978, with
effect from 1 January 1979.
The agreement is to be replaced by a new and strengthened agreement, an
Euro-Mediterranean association agreement.  Formal negotiations were opened on 23 January 1995
and concluded on 21 June 1999.  Signature is expected to take place before the end of 1999 or early in
the year 2000.
2. Type of Agreement
The agreement is a comprehensive co-operation agreement concerning trade provisions and
technical and financial co-operation.
4. Trade Data
The evolution of trade flows between the Eur opean Union (EU) and Egypt in the 1990’s is
basically divided into two main phases.  The firs t phase corresponds to the three first years of the
decade (which included the Gulf War period), when trade flows were rather stagnant and even
declining, especially with respect to EU exports to  Egypt.  Trade flows in 1992 were recorded as the
lowest of the decade: EU exports for example dropped by 12 per cent.
Since 1993, the trend in EU exports has been generally upwards, while the evolution of
Egyptian exports has shown more has been more variable.  Significant annual increases in some years
(e.g. by 24 per cent and 42 per cent in 1994 and 1996) have been accompanied by significant
reductions (e.g. by 30 per cent in 1995).  The tota l amount of trade between the EU and Egypt hasWT/REG98/R/B/1
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increased by more than 50 per cent over the last eight years and is now close to the level of
EUR 10 billion yearly.
Further statistical information on developments in bilateral trade is given in the Annex.
II. TRADE PROVISIONS
1. Import restrictions &
2. Export restrictions
The trade provisions under the Co-operation agreement are not reciprocal: while European
goods, both industrial and agricultural, have access to the Egyptian market on an MFN basis, there is
free access to the Community market for Egyptian industrial products (with the exception of products
coming under the Multifibre Agreement), while imports of agricultural products are subject to specific
concessions.
These trade provisions were modified in 1987 through an additional Protocol,1 which forms
an integral part of the Co-operation Agreement.  This additional Protocol establishes measures
adjusting certain provisions of the Agreement to enable Egypt’s traditional export trade with the
Community to be maintained.
All the transitional measures envisaged by the additional Protocols concluded following the
accession into the Community of Greece (signed in 1980), Spain and Portugal (signed in 1987), and
concerning the import into the Community of industrial and agricultural products originating from
Egypt have expired.
3. Rules of origin &
4. Standards &
5. Safeguards &
6. Anti-dumping and countervailing measures &
7. Subsidies and State-aid
The Agreement does not include any provisions conc erning State aids or subsidies.  The other
provisions concerning rules of origin and trade defence measures have not been modified.
8. Sector-specific provisions
Textiles
The Agreement does not include specific measures concerning the import into the
Community of textiles products originating in Egypt, but since 1982 biannual agreements concerning
the textile sector have been concluded between  the Community and Egypt (the last of these
agreements will expire on 31 December 1999).  These agreements basically envisage an Egyptian
self-limitation of exports of certain textile products towards the Community.
                                                     
1 Signed on 25 June 1987 for an unlimited period and published in the Official Journal L297/87, p. 10.WT/REG98/R/B/1
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Agriculture
On 4 November 1996 the European Community and Egypt signed two agreements (in the
form of exchange of letters) which modify the provisions for the import into the Community oftwo agricultural products originating in Egypt.  The first agreement concerns the reduction of custom
duties on oranges (OJ L292/96 p. 27); the second agreement aims to grant to Egypt, pending the
conclusion of the Euro-Mediterranean association agreement and pursuant to Art. 22 of the
co-operation agreement, preferences equivalent to those set out in the co-operation agreement for the
import into the Community of rice originating in Egypt.
III. GENERAL PROVISIONS OF THE AGREEMENT
5. Institutional framework
A “Co-operation Council” is established to take decisions concerning the implementation of
the Agreement.
2  The Council met ten times, most recently on 28 October 1996.
IV. OTHER
Financial Aspects
The financial aspects are subject to separate protocols of limited duration. From 1977 to 1996
Egypt benefited of an overall amount of 661 EUR million of financial assistance from the EC budget
(grants, interest subsidies on EIB loans, Special Loans, and risk capital operations) made available byfour "protocols" on technical and financial assistance.  These resources are complemented by those
made available by the EIB.
Services and Intellectual Property
The Agreement does not include specific measures concerning trade in services or intellectual
property rights
                                                     
2 The internal regulation of the Co-operation Council was agreed by the parties in Luxembourg on
21 April 1980.WT/REG98/R/B/1
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Page 4ANNEX3
Table 1 - EU Imports from World and Egypt, 1980-1998
(Million ECU)
SITC: 0 1 2 3 4 5 6 7 8 9 TOTAL
1980 (EU 9)
      WORLD 23,908 1,929 27,501 85,384 1,579 11,374 37,648 37,853 22,176 20,502 269,853
      Egypt 64 0 90 1,400 0 6 115 15 15 37 1,742
1984 (EU 10)
      WORLD 33,643 2,810 36,139 107,594 2,803 19,968 48,969 71,432 34,537 24,205 382,100
      Egypt 81 0 215 3,048 0 14 302 35 24 25 3,744
1988 (EU 12)
      WORLD 32,221 2,152 35,752 47,393 1,499 25,067 59,078 106,689 49,968 27,937 387,757
      Egypt 75 0 111 983 0 16 358 46 41 15 1,645
1992 (EU 12)
      WORLD 34,580 3,215 32,218 65,183 1,748 33,888 69,355 146,277 76,771 23,900 487,135
      Egypt 101 0 53 1,528 0 58 392 235 112 12 2,490
1996 (EU 15)
      WORLD 41,305 3,599 34,829 75,910 2,423 44,328 75,479 189,056 93,962 20,131 581,065
      Egypt 150 0 82 1,722 3 40 420 108 232 12 2,780
1997 (EU 15)
      WORLD 44,248 4,072 40,131 85,155 2,554 51,485 87,685 229,346 108,779 17,690 672,413
      Egypt 114 1 118 1,189 1 66 581 246 295 13 2,636
1998 (EU 15)
      WORLD 45,198 4,458 39,370 64,843 2,891 55,290 94,672 264,153 116,092 22,676 709,643
      Egypt 141 1 129 920 0 64 463 340 310 20 2,411
                                                     
3 The source for all the tables is Eurostat (COMEXT).WT/REG98/R/B/1
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Page 5Table 2 - EU Exports to World and Egypt, 1980-1998
(Million ECU)
SITC: 0 1 2 3 4 5 6 7 8 9 TOTAL
1980 (EU 9)
      WORLD 13,662 3,422 4,327 10,071 717 23,228 46, 455 84,154 21,333 13,716 221,084
      Egypt 598 14 22 79 11 295 394 1,342 147 204 3,105
1984 (EU 10)
      WORLD 21,120 5,784 7,319 18,087 1,343 38,465 65,412 129,088 39,835 24,806 351,259
      Egypt 1,108 34 55 144 76 641 842 2,375 290 257 5,821
1988 (EU 12)
      WORLD 19,588 6,205 7,602 8,232 1,158 44,449 65, 673 141,249 48,507 20,256 362,917
      Egypt 698 22 49 36 31 508 518 1,507 190 118 3,677
1992 (EU 12)
      WORLD 24,887 8,778 8,068 10,552 1,491 54,200 71,091 180,838 59,247 16,939 436,091
      Egypt 355 59 80 26 16 477 449 1,804 235 101 3,603
1996 (EU 15)
      WORLD 30,646 10,339 11,414 15,431 1,998 79,14 4 102,957 283,081 79,287 12,695 627,011
      Egypt 511 25 261 69 25 753 744 2,738 379 126 5,827
1997 (EU 15)
      WORLD 33,504 12,374 13,084 17,109 2,575 93,04 6 114,927 331,113 88,686 13,717 721,109
      Egypt 607 30 318 97 34 858 921 3,200 466 86 6,757
1998 (EU 15)
      WORLD 33,504 12,374 13,084 17,109 2,575 93,04 6 114,927 331,113 88,686 13,717 721,109
      Egypt 607 30 318 97 34 858 921 3,200 466 86 6,757WT/REG98/R/B/1
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Page 6Table 3 - EU Trade with Egypt by HS Section
(Million ECU)
EXPORTS IMPORTS
SECTION 1988 1992 1996 1997 1998 SECTION 1988 1992 1996 1997 1998
TOTAL 3,677 3,603 5,827 6,757 7,541 TOTAL 1,645 2,490 2,780 2,636 2,411
I 292 188 265 262 298 I 14 16 15 18 14
II 200 66 151 215 186 II 56 85 140 115 140
III 34 16 24 33 32 III 2 1 3 1 0
IV 232 164 127 171 256 IV 14 17 21 15 19
V 62 37 129 159 167 V 985 1,533 1,735 1,207 937
VI 396 376 623 704 821 VI 15 57 39 63 59
VII 179 163 232 284 276 VII 0 5 21 27 29
VIII 1 2 5 4 4 VIII 4 6 9 9 13
IX 13 14 181 245 238 IX 0 0 1 1 1
X 68 83 169 173 190 X 1 1 9 11 10
XI 67 107 161 164 155 XI 266 294 451 622 570
XII 3 6 16 18 23 XII 0 2 6 4 6
XIII 53 48 72 99 100 XIII 0 6 16 20 23
X I V 5 1 5 94 31 7 X I V 4 9 93 11 3
XV 317 264 368 483 626 XV 213 197 138 180 151
XVI 1,178 1,237 1,943 2,398 2,818 XVI 33 29 79 76 92
XVII 314 554 773 779 801 XVII 13 205 29 169 248
XVIII 114 122 191 230 258 XVIII 6 11 23 25 27
XIX 4 3 3 2 2 XIX 0 0 0 0 4
XX 30 35 60 75 84 XX 1 3 14 16 17
XXI 47 17 73 77 67 XXI 8 10 10 14 15WT/REG98/R/B/1
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Page 7Table 4 - EU Trade with World by HS Section
(Million ECU)
EXPORTS IMPORTS
SECTION 1988 1992 1996 1997 1998 SECTION 1988 1992 1996 1997 1998
TOTAL 362,917 436,091 627,011 721,109 730,423 TOTAL 387,757 487,135 581,065 672,413 709,643
I 7,060 8,001 9,980 10,897 10,062 I 8, 349 10,300 10,897 12,227 13,296
II 6,372 8,511 8,819 9,757 9,145 II 17,55 5 17,353 23,130 25,437 24,992
III 1,341 1,673 2,286 2,977 3,156 III 1,542 1,781 2,250 2,390 2,693
IV 13,817 19,194 24,510 27,744 27,279 I V 13,638 15,595 18,511 19,019 19,518
V 9,723 12,152 17,487 19,630 16,711 V 55,920 73,081 84,793 95,737 75,508
VI 37,393 46,951 68,968 81,772 85,215 V I 22,179 29,303 39,774 46,234 49,432
VII 15,521 16,914 23,128 27,148 27,504 V II 10,125 13,862 17,132 19,323 21,043
VIII 4,119 4,084 7,159 7,375 6,435 VIII 6,121 5,701 7,590 8,498 8,224
IX 1,771 2,035 4,045 4,927 5,182 IX 9, 615 10,926 9,118 10,973 11,434
X 7,937 10,271 18,033 19,764 19,803 X 17,605 19,227 11,110 11,996 12,571
XI 20,244 25,208 31,611 34,724 35,221 X I 28,639 39,478 47,467 55,248 57,903
XII 3,440 4,526 5,922 6,313 6,043 XII 3,325 5,451 7,029 8,308 8,274
XIII 7,153 8,120 11,257 12,916 12, 894 XIII 2,593 3,883 4,386 5,090 5,648
XIV 13,026 12,425 16,992 19,285 17,990 X IV 17,526 15,037 21,620 23,890 26,981
XV 30,826 30,864 42,214 46,944 45,623 X V 26,101 29,345 33,661 40,312 44,472
XVI 93,666 120,842 193,730 226,482 234,539 XVI 81,389 106,397 146,298 173,122 195,378
XVII 46,674 59,351 89,086 104,705 110,049 XVII 25,240 40,386 42,797 56,275 68,476
XVIII 14,107 17,067 23,982 28,129 29,109 XVIII 14,869 19,652 24,343 27,814 29,926
XIX 402 388 1,097 1,326 1,656 XIX 118 194 466 603 510
XX 7,819 9,378 13,350 15,177 15,242 XX 6 ,655 12,072 14,394 17,529 19,046
XXI 8,204 5,727 13,354 13,115 11,565 XXI 5,733 5,511 14,298 12,387 14,318
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