. /.  WORLD TRADE  
ORGANIZATION   
WT/REG177/4 
7 November 2012 
 (12-6133) 
Committee on Regional Trade Agreements Original:   English 
  
 
EURO-MEDITERRANEAN ASSOCIAT ION AGREEMENT BETWEEN THE 
EUROPEAN UNION AND EGYPT (GOODS) 
 
Questions and Replies 
 
 
 The following communication, dated 25 October 2012, is being circulated at the request of the delegations of the European Union and Egypt. 
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  This document reproduces the questions addressed to the Parties and the responses submitted. 
 
Questions from the Delegation of Canada 
 
1. Paragraph 21, page 7, Table II.2:  The Secret ariat Report provides a table of EU tariff 
elimination under the Agreement, by HS section.  Two products in HS Section VI – Chemicals 
and chemical products – remain subject to dut ies.  Could Egypt please explain what two 
products lines within Section VI (Chemicals an d chemical products) remain subject to duties 
and why? 
 The two product codes are HS 3824.60 (sorb itol) and HS 3302.10 (odoriferous substances). 
Both products are considered agricultural (processed) products according to Annex I of the 
Association Agreement.  Both were subject to the tariff reduction/treatment agreed in Protocol 3 of 
the Association Agreement.    The EU-Egypt Agreement on further liberalizati on of agricultural, processed agricultural and 
fisheries products which entered into force in June 2010 eliminated Protocol 3 and an improved 
treatment was agreed for HS 3302.10 (odoriferous substa nces).  Imports into Egypt and into the EU of 
HS 3824.60 (sorbitol) had in the meantime been liberalized.  Please find be low the details for each 
product.  For HS 3824.60 (sorbitol):  
 
 - Imports into Egypt from the EU were libe ralized two years after entry into force of 
 the Association Agreement. 
  - Imports into the EU from Egypt were subject to preferential treatment (0% duty + 
 E.A) and has been liberalized under the EU-Egypt Agreement on further 
 liberalization of agricultural, pro cessed agricultural and fisheries products. 
 For HS 3302.10 (odoriferous substances):  
  -  Imports into Egypt from the EU were s ubject to 25% reduction applied to basic duties 
 applicable after four years after entry in to force of the AA.  Under the EU-Egypt 
 Agreement on further liberalization of agricultural, processed agricultural and WT/REG177/4 
Page 2  
 
   fisheries products of June 2010, only the Compound alcoholic preparations of a kind 
 used for manufacture of beverages  (3302 10 10) remain subject to duties (preferential 
 treatment (35% MFN reduction, no quota)).  
  -  Imports into EU from Egypt: In the Association Agreement only 
 HS 3302 10 29 (Other preparations of a kind used in the drink industries, containing 
 all flavouring agents characterizing a beve rage, of an actual alcoholic strength by 
 volume not exceeding 0,5% containi ng: 70% or more by weight of 
 sucrose/isoglucose) were subject to duti es with a preferential treatment (0% duty + 
 E.A).  The treatment has been improved (100% MFN reduction for a quota of 1000t) 
 under the EU-Egypt Agreement on further liberalization of agricultural, processed 
 agricultural and fisheries products of June 2010. 
 
2. Paragraph 44, page 15:  The Secretariat Repo rt states that under Article 11, Egypt may 
increase or reintroduce customs duties on imports of industrial products in the case of new 
industries or sectors undergoing restructuring or ex periencing serious difficulties.  Could Egypt 
please provide an example, if any, when Article 11 was implemented and under what circumstances was this done?  
 Egypt did not take any measure under Ar ticle 11 of the Association Agreement. 
 
Question from the Delegation of the United States 
 
3. According to Paragraphs 19 and 20 and Tabl es AI.1-AI.2 of the Factual Presentation:  
- The European Union (EU) eliminates duties on 96.6% of all tariff lines covering 95.3% 
of imports from Egypt under the Agreement, but eliminates tariffs on only 83% of agricultural 
product tariff lines. 
 
 Egypt eliminates duties on 97.3% of all tariff lines covering virtually 100% of imports 
from the EU under the Agreement, and eliminat es duties on 90.2% of agricultural products 
lines.   For what reasons did the EU undertake liberalization on a lower percentage of 
agricultural product tariff lines than Egypt?  
 Paragraphs 19 and 20 and Tables AI.1-AI.2 of the Factual Presentation refer to the situation in 
2004 when the mutual preferences granted by the Association Agreement came into force.  As 
mentioned in the Factual Presentation, an Exchange of Letters between the Parties has led to further 
liberalization of agricultural products, processed agri cultural products and fi sh and fishery products 
which became applicable from 1 June 201 0.  The new Agreement is based on a 
"negative list 
approach ":  everything is duty-free with the exception of  a few sensitive products for which market 
access is granted in the form of TRQs and/or seasona l calendars.  The limited list of products to be 
excluded from liberalization was adopted in order to take into account the specificity of both parties. 
 
 As the result of the new Ag reement, (under the Combined Nomenclature 2012) the EU has 
currently eliminated duties on 95% of agricultural products tariff lines of imports from Egypt. Moreover, the few agricultural products lines that ha ve not been fully liberalized received a duty free 
access to the EU market under generous TRQs, which all but one (oranges) remain largely unfulfilled; 
or duty- and quota-free treatment during a pre-define d export season or under the entry price system 
(with ad valorem duty lifted). 
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