WORLD TRADE  
ORGANIZATION   
WT/REG177/M/1 
19 December 2012 
 (12-6982) 
Committee on Regional Trade Agreements 
Sixty-seventh Session  
 
 
 
CONSIDERATION OF THE EURO-MEDITERRANEAN ASSOCIATION AGREEMENT 
BETWEEN THE EUROPEAN UNION AND EGYPT, GOODS  
 
Note on the Meeting of 20-21 November 2012 
 
Chairman:  Mr. F. Riegert (France) 
 
 1. The 67
th Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WT O/AIR/4013/Rev.1 dated 9 November 2012. 
2. Under Agenda Item B.II of this session, the CRTA considered the Euro-Mediterranean 
Association Agreement (FTA) between the European Union and Egypt (hereinafter the 'Agreement'), 
goods.  
3. The Chairman noted that the Agreement had entered into force on 1 June 2004.  It had been 
notified to the WTO by the Parties on 3 September 2004 under Article XXIV:7(a) of the GATT 1994 
and the Understanding on the Interpretation of Article XXIV of GATT 1994 as an Agreement 
establishing a free trade area (document WT/REG177/N/1) .  The text of the Agreement was available, 
together with its Annexes, on the Parties' offici al websites.  The Factual Presentation on the goods 
aspects (document WT/REG177/3 and WT/REG177/ 3/Corr.1 dated 26 and 28 June 2012 
respectively) had been prepared by the Secretaria t on its own responsibility in full consultation with 
the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for Regional Trade 
Agreements (document WT/L/671).  In addition, wr itten questions and replies on this Agreement had 
been distributed in document WT/REG177/4.  He proposed to organize the consideration of the 
Agreement by first asking the Parties and then othe r Members to give any general comments and to 
then review the specifics of the Agreement. 
4. The representative of the European Union thanke d the Secretariat for the factual presentation 
and also Egypt for its assistance in preparing for the review.   
5. The EU-Egypt Association Agreement was one of the EU's Euro-Mediterranean Association 
Agreements with Southern Mediterranean partners  under the economic pillar of the Barcelona process 
that had been launched in 1995.  Regarding trade,  the overall aim of this process was to establish a 
Euro-Mediterranean Free Trade Area by 2010.  The Trade Ministers of the Union for the 
Mediterranean had assessed in 2010 that the Euro-Mediterranean Free Trade Area had been 
established, although it was not yet complete in terms of substance and geographical coverage.  
Further steps to deepen trade relations with Sout hern Mediterranean partne rs, including Egypt, had 
been under taken in recent years and were under discussion at present. 
6. The Association Agreement between the EU and Egypt had been signed in 2001 and had 
entered into force in 2004.  It established a free tr ade area through gradual tariff reductions and the 
removal of non-tariff barriers to trade.  The Agreement covered essentially trade in goods.  The 
commitments regarding tariff dismantlement were asymmetrical as the EU had given free access to WT/REG177/M/1 
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  industrial products from Egypt since the entry into force of the Agreement while Egypt would 
dismantle its tariffs according to various sch edules, at the latest by 1 January 2019.  
7. The Agreement had given a remarkable boost to bilateral trade which had more than doubled 
after its entry into force from €11.5 billion in 2004 to the highest ever level of €23.3 billion in 2011.  
The EU was Egypt's main trading partner by far, accounting for around one third of Egypt's total 
trade.  Egypt remained one of the EU's major trad e partners in the Southern Mediterranean region and 
ranked 30th among the EU's trade partners in 2011.  
8. Building upon the 2004 Agreement, the EU and Egypt had sought to further deepen their 
trade relations and had concluded an ambitious ag reement on further liberalization of agricultural, 
processed agricultural and fisheries products which had entered into force on 1 June 2010.  This 
agreement provided for substantial dismantling of tari ffs in agricultural trade except for a very limited 
number of sensitive products where gene rous tariff quotas had been granted.  
9. The EU and Egypt had also negotiated a protoc ol establishing a dispute settlement mechanism 
for bilateral trade disputes which had been signed in  November 2010.  It still required ratification by 
the Egyptian Parliament before it could enter into force. 
10. The EU and Egypt had also made efforts to lib eralize bilateral trade in services. However, 
those negotiations had not progressed as expected.  Nevertheless, the liberalization of trade in services remained a target on the bilateral trade agenda and was likely to be pursued in the context of more 
comprehensive negotiations.  
11. As had been indicated, the EU and Egypt were currently discussing how to further deepen 
their trade relations.  Egypt was one of four Southe rn Mediterranean partners  with which the EU was 
offering to negotiate bilateral Deep and Comp rehensive Free Trade Areas (DCFTAs).  The DCFTA, 
which would form a part of the Association Agr eement, would aim at further improving bilateral 
market access opportunities and the investment  climate and at suppor ting economic reforms 
undertaken by the Southern Mediterranean pa rtners.  The DCFTAs would be comprehensive 
agreements on trade and economic relations covering a full range of regulatory areas of mutual 
interest, such as trade facilitation, technical barri ers to trade, sanitary and phytosanitary measures, 
investment protection, public procurement and co mpetition policy.  Before  negotiations could be 
launched, a thorough preparatory process was require d which could start with Egypt in the coming 
months. 
12. In conclusion the European Union reiterated that the EU-Egypt Association Agreement had 
proven essential in enhancing bilateral trade relations.  At the sam e time the Agreement needed to be 
completed in a number of areas and was subject to re gular review with a view to further developing 
and deepening its provisions. 
13. The delegation of Egypt thanked the Secretariat and the delegation of the EU for their efforts 
and intense cooperation during the preparation of the Factual Presentation of the EU-Egypt 
Association Agreement. In this regard, Egypt attached great importance to the Transparency 
Mechanism, and reaffirmed its strongest support fo r a Multilateral Trading System based on clear and 
strengthened WTO rules. 
14. The Euro-Mediterranean Association Agreement between the EU and Egypt had been signed 
on 25 June 2001 and had entered into force on 1 Ju ne 2004 after ratification by the Egyptian's People 
Assembly and the EU Member States.  The Agr eement reflected the approach of the Barcelona 
Process, as it contained provisions on the three pillars  of the Euro-Mediterranean partnership.  It had 
been concluded for an unlimited period.  Its overall objective was to establish the appropriate 
framework for co-operation and partnership, whic h would contribute to the economic and social  WT/REG177/M/1 
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  development of Egypt to endeavour towards regiona l economic integration aiming to create an area of 
shared economic prosperity.  As stated in Article 2, relations between the Parties would be based on 
respect for democratic principles and fundament al human rights, which constituted an essential 
element of the Agreement.  
15. The Agreement was based on reciprocal tariff lib eralization for both industry and agriculture 
with respect to substantial trade between the Parti es. Quantitative restrictions and equivalent measures 
were to be removed.  For industrial goods, Egypt reciprocated preferential treatment granted by the 
EU under the 1977 Co-operation Agreement, by di smantling all industrial duties over a transition 
period of up to 15 years from entry into force.  Four different tariff-dismantling schedules by group of products were provided for.  Liberalization in ag riculture and agro-industry was also foreseen under 
the Agreement.  The EU had significantly improve d its concessions for Egyptian agricultural exports 
by increasing the tariff quotas granted for Egypt's ma in exports.  Egypt had also reduced tariff duties 
for a number of EU agricultural exports.  Pro cessed agricultural products enjoyed reciprocal 
concessions, thereby improving market access for both Parties. 
16. A Protocol on rules of origin had been established between the Parties and was part of the 
Agreement.  Its version was the most developed used by the EU in its relations with partner countries.  
The Agreement also included provisions for consu ltations and deeper co-operation on the right of 
establishment and supply of services, payments  and capital movements, as well as on legal 
approximation in competition, including public ai d and monopolies of a commercial character.  On 
intellectual property rights, the Parties would seek  effective protection in the context of their 
multilateral commitments. 
17. Progressive liberalization on public procurement was also foreseen.  Economic co-operation 
would be intensified between the Parties in a num ber of sectors, such as education and training, 
science and technology, environment, industrial co- operation, investment promotion, standardization 
and conformity assessment, approximation of laws, financial services, agriculture and fisheries, 
transport, information society and telecoms, ener gy, tourism, customs statistics, money laundering, 
fight against drugs and terrorism, consum er protection and regional co-operation. 
18. Social and cultural co-operation was foreseen in th e third pillar of the Barcelona Process too.  
A dialogue on social matters would take place, in particular on the movement of workers, migration 
issues, intercultural dialogue and social integrati on of Egyptian and EU nationals legally residing in 
the territories of their host countries.  Co-operatio n was envisaged for the prevention and control of 
illegal immigration and other consular issues, wher eby EU Member States and Egypt had agreed to 
negotiate and conclude bilateral agreements with each other, regulating specific obligations for the 
readmission of their nationals.  Co-operation was e qually envisaged on cultural matters, audio-visual, 
media and information. 
19. Egypt stressed that the Agreement had proven to be beneficial for both Parties.  Since 2004, 
EU - Egypt bilateral trade had more than doubled and had reached its highest level ever in 2011 (from 
€11.5 billion in 2004 to €23.3 billion in 2011).  When the Agreement had entered into force for Egypt 
in 2004, 3.7% or 283 lines were free of duties.  Upon entry into force, Egypt had removed duties on 223 tariff lines for imports from the EU corresponding to 3% of the tariff.  By the end of ten years of 
implementation (2013) Egypt would have removed duties on 5,292 tari ff lines (70.1% of the tariff).  
Further tariff liberalization would take place until  2019.  Furthermore, Egypt believed that the 
Agreement was in conformity with Article XXI V of GATT 1994 and other mu ltilateral agreements on 
trade in goods annexed to the Agreement establishing the WTO.  
20. Egypt thanked again the WTO Secretariat, the members of the Committee, and especially its 
EU partners for their treme ndous efforts and cooperation. WT/REG177/M/1 
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  21. The representative of the United States thanked th e Secretariat for its work and the Parties for 
the materials provided including the questions and answers which had enabled the consideration of 
the Agreement.  The questions on goods posed by the United States had been adequately answered in 
the question and answer document and his dele gation had no further comments or questions. 
22. The representative of Canada thanked the Secret ariat and the Parties for the review of the 
agreement and also thanked the Parties for their r esponses.  His delegation would be in touch as soon 
as possible in the event it had any follow-up questions.  
23. The Chairman said that the consideration of the Goods aspects of the Euro-Mediterranean 
Association Agreement between the European Unio n and Egypt had allowed the Committee to clarify 
a certain number of questions and oral discussion of the RTA could now be concluded in accordance 
with paragraph 11 of the Transparency Mechanism.   If any delegations wished to ask follow-up 
questions they were invited to fo rward submissions in writing to the Secretariat by 27 November 2012 
and Parties were asked to submit replies in writing by 11 December 2012.  In accordance with 
paragraph 13 of the Transparency Mechanism all written submissions as well as minutes of the 
meeting would be circulated promptly, in all WTO official languages, and would be made available 
on the WTO website. 
24. The Committee took note of the comments made. 
__________