WT/COMTD/RTA/11/2  
 
12 November  2018 
(18-7113) Page: 1/6 
Committee on Trade and Development  
Dedicated Session on Regional Trade Agreements  Original: English/French/Spanish  
 
 ARAB MEDITERRANEAN F REE TRADE AGREEMENT (AGADIR AGREEMENT) B ETWEEN  
EGYPT, JORDAN, MOROC CO AND TUNISIA  
(GOODS)  
 
QUESTIONS AND REPLIE S 
 The following communication  is being circulated at the request of the Parties to the Arab 
Mediterranean Free Trade Agreement (Agadir Agreement) between Egypt, Jordan, Morocco and 
Tunisia.  
 
 The document reproduces the questions addressed to the Parties and the responses 
submitted.  
 
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Ques tions from the Deleg ation of Brazil  
 
Question 1  
 
Will Member States be individually responsible for the definition of their sanitary and 
phytosanitary measures? In other words, applications for the recognition of equivalence, 
for the performance of a risk analysis, for the ne gotiation of sanitary or phytosanitary 
certificates, for the recognition of zoning/regionalization, among others, should continue 
to be made directly to the health authorities of each of the Member States?  
 
Reply from Morocco : Yes, member states are individually responsible for the definition of their 
sanitary and phytosanitary measures.  
 
Reply from Tunisia : The goods traded between Member States are subject to the specific sanitary 
and phytosanitary measures of each Member State.  
 
Question 2  
Can impo rted products and merchandise that have met the sanitary or phytosanitary 
requirements to enter the market of one of the member states be freely traded inside the 
free trade area established by the Agadir Agreement?  
 
Reply from Morocco : For the time being,  each member is individually responsible for the definition 
of its SPS requirements.  
 
Reply from Tunisia : No. The goods traded between Member States are subject to the specific sanitary 
and phytosanitary measures of each Member State.  
 
Question 3  
 
Does the  denial of import for sanitary or phytosanitary reasons by one country apply to 
imports by the other countries?  
 
Reply from Morocco : It does not necessarily apply, as explained above.  WT/COMTD/RTA/11/2  
 
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Reply from Tunisia:  No 
 
 
Questions from the Delegation of Mexico  
 
Questions from Mexico concerning Economic Competition  
 
Question 1  
 
With the implementation of this Agreement, what has been its impact in the area of 
economic competition policy?  
 
Reply from Morocco:  In order to achieve the integration objective of the Aga dir Agreement, the 
member countries are working towards the establishment of a harmonized framework in the area of 
economic competition policy. In this regard, a working group has been set up in order to carry out 
the approximation of the regulatory framew ork governing competition policy among the members.  
 
Reply from Tunisia : It is currently difficult to provide precise information on the impact of the Agadir 
Agreement in terms of economic competition. However, we consider that this Agreement provides 
better  opportunities with regard to economic complementarity and integration among the 
contracting parties. A study is being carried out to evaluate the impact of this Agreement.  
 
Question 2  
 
Has the entry of new commercial operators been promoted in the signatory countries?  
 
Reply from Egypt:  There are promotion activities under the work plan of the ATU to promote the 
agreement and its benefits dedicated to all economic operators.  
 
Reply from Morocco:  Since the entry into force of the Agadir Agreement, The Agadir Technical Unit, 
in coordination with member countries, has adopted a promotional program within its annual work 
plans to further promote the Agadir Agreement among all actors involved in the pr ocess of this 
agreement from the public and private sectors. Regional and national awareness seminars have 
been organized to familiarize the business sector in the four countries with the advantages of the 
Agadir Agreement in order to increase bilateral tr ade, exports to EU markets, and encourage 
investment.  
Reply from Tunisia : Yes. 
 
Question 3  
 
Where progress has been made in the area of economic competition, in which economic 
sectors has this been achieved?  
 
Reply from Tunisia : It is currently difficult t o provide precise information on the impact of the Agadir 
Agreement in terms of economic competition. However, we consider that this Agreement provides 
better  opportunities with regard to economic complementarity and integration among the 
contracting parti es. A study is being carried out to evaluate the impact of this Agreement.  
 
Question 4  
 
Has consideration been given to the future inclusion of a section on competition policy or 
is there any other legislation that complements the Agadir Agreement?  
 
Reply from Morocco:   A MoU has been elaborated in the area of Competition.  
 
Reply from Tunisia : A memorandum of cooperation regarding competition among the countries 
signatory to the Agadir Agreement has been adopted. This memorandum aims to:  
 
-  strengthen coop eration in the area of competition among the countries party to the 
Agadir  Agreement;  WT/COMTD/RTA/11/2  
 
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  - create a favourable climate for economic integration through the application of competition 
policy in the Member States ; 
- harmonize the legislation of the signatory countries ; and  
- allow for  Member States to share their experiences of the application of their competition 
policies.  
 
 
Questions from the Delegation of Thailand  
 
3. Provisions on Trade in G oods  
 
3.2 Rules of origin  
 
Paragraph 3.22, page 20 : "As participants in the Barcelona Process, Egypt, Jordan, 
Morocco and Tunisia adopt the Pan -Euro -Mediterranean system of cumulation. This 
implies that goods originating from the EU, EFTA, Turkey, the countries which signed the 
Barcelona Declaration, the Wester n Balkans and the Faroe Islands, benefit from diagonal 
cumulation. Moreover, full cumulation is operated between the  EU and Morocco and 
Tunisia".  
 
Question  1 
 
Is diagonal cumulation criteria under PEM applied at HS 6 digits?  
 
Reply from Egypt:  No, chapters and heading within the PEM are defined on a four -digit code; 
therefore, diagonal cumulation will be applied on 4 HS digits.  
 
Reply from Morocco:  No, the diagonal cumulation criteria under PEM is actually applied on the basis 
of a four digit HS.  
 
Reply from Tunisia : The pan -Euro-Mediterranean (PEM) diagonal cumulation criteria are applied at 
HS 4-digit level.  
 
Question 2  
 
Also, is Arab Mediterranean FTA referred to the same ROOs under PEM?  
 
Reply from Egypt:  Yes, the Arab Mediterranean FTA applies the same ROOs as in the PEM.  
 
Reply from Morocco:  Yes, the Arab Mediterranean FTA applies the same R OOs under the PEM.  
 
Reply from Tunisia : Yes, the Arab -Mediterranean Free Trade Agreement adopts rules of origin in 
accordance with the pan -Euro-Mediterranea n protocol  in order to benefit from diagonal cumulation.  
 
Question 3  
 
How to classify originating goods and verification under full cumulation criteria and why 
Egypt and Jordan could not apply on full cumulation criteria?  
 
Reply from Egypt:  Currently, full cumulation is only applied by Tunisia and Morocco in their PEM 
ROOs with their contracting parties.  
 
Egypt does not currently apply the full cumulation criteria since it was not included in protocol (4) 
to the Euro -Mediterranean Agreement that came in to force on 17th of February 2006 and was 
published in the Official Journal of the European Union, March 2006.  
 
Reply from Jordan:  The current Protocol concerning the definition of the concept of originating 
products and methods of administrative cooperati on does not entail the possibility for full cumulation 
for Jordan.  WT/COMTD/RTA/11/2  
 
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  Reply from Tunisia : Origin is conferred according to four main criteria applied either independently 
or in combination with each other. These are:  
 
• The "wholly obtained" (WO) criterion , which requires all the materials of the chapter 
to be wholly obtained;  
• the "change of tariff heading" (CTH) criterion , which requires non -originating 
materials to fall under headings other than that of the final product;  
• the import content test (MC) , which  requires the value of the non -originating materials 
not to exceed a given percentage of the ex -works price of the product; and  
• the technical test rule (TR) , which sets out the work processes that non -originating 
materials have to undergo.  
In certain case s, it is possible to combine different rules or to choose between these rules.  
 
 
Questions from the Delegation of the United States  
 
4. General provisions of the Agreement  
 
Question 1  
 
4.9 Trade in Services  
 
Paragraph 4.15, page 25 indicates that the Agreement includes a reference to expanding 
trade in services between the Parties. Can the Parties please describe any expansion of 
trade in services that has taken place under this agreement?  
 
Reply from Egypt:  Agadir countries have not yet finalized an agreement on Trade in services, 
therefore no expansion has taken place among parties.   
 
Reply from Morocco:  A draft framework agreement for the liberalization of trade in services has been 
initiated by Agadir coun tries in 2014 but has not yet been formally signed. This project constitutes 
the cornerstone for continuing the work towards expanding the cooperation and integration of 
services among the member countries, setting the general framework and the principles and 
guidelines that will be the reference in the subsequent sectoral negotiations.  
 
Reply from Tunisia : It should be noted that trade in services has not been liberalized under the 
Agadir Agreement.  
 
4.10 Relationship with other agreements concluded by the  Parties  
 
Page 25 -26, Table 4.1 lists multiple RTAs that the Parties have not notified even though 
they have entered into force.   
 
Question 2 
 
Egypt appears to be party to a number of agreement s that have not been notified to the 
WTO.   
 
We appreciate that Egypt has notified its acc ession to the COMESA agreement. Does Egypt 
current extend preferential tariff treatment to all other Parties of COMESA including those 
whose accessions have not been notified to the WTO? If so, can Egypt provide a timeline 
for notifications of this preferential treatment?  
 
Reply  from Egypt : Yes, Egypt extends preferential tariff treatment to all other Parties of COMESA.  
 
Egypt applied preferential treatment with COMESA member states as follows:  
 WT/COMTD/RTA/11/2  
 
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  • Madagascar, Zimbabwe, Mauritiu s, Malawi, Sudan, Zambia, Kenya, Libya, Djibouti, Rwanda, 
Burundi and Comoros, impose no customs duties on their imports from one another.  
• Eritrea and Uganda apply 80% tariff reductions to imports form COMESA countries.  
• Ethiopia applies 10% tariff reductio ns to imports from COMESA countries.  
• DRC and Swaziland do not apply any reductions to their imports form COMESA  
 
Question 3 
 
Similarly, does Egypt extend preferential tariff treatment to all Parties to the PAFTA 
agreement?  If so, can Egypt provide a timel ine for notifications of this preferential 
treatment?  
 
Reply  from Egypt : Yes, Egypt extends preferential tariff treatment to all other Parties of GAFTA.  
 
Question 4 
 
The table indicates that the Jordan -Israel RTA entered into force on 19 April 1996, but it 
has not been notified under WTO rules. Could Jordan please provide an update on the 
status of the required notification?  
 
Reply  from Jordan : Jordan and Israel have signed an agreement on trade and economic cooperation 
to facilitate cross border movement  of goods and eliminate unnecessary barriers to trade. 
Accordingly, Jordan will review the notification requirements under WTO rules.  
 
Question 5 
 
Does Jordan extend specific preferential tariff treatment to MERCOSUR under the 
MERCOSUR -Jordan Framework Agreement? If so, can Jordan please provide an update on 
its timeline for notifying those preferences to the WTO?  
 
Reply  from Jordan : The framework a greement between MERCOSUR and the Hashemite Kingdom of 
Jordan aims to strengthen relations between the contracting parties through promoting the 
expansion of trade and providing the necessary framework and mechanisms to negotiate a free trade 
area between the contracting parties in conformity with the rules and disciplines of the World Trade 
Organization. Accordingly, Jordan and MERCOSUR held four rounds of negotiations to establish a 
free trade agreement lastly in 2010. No agreement has been reached so far . 
 
Question 6 
 
Does Morocco extend specific preferential tariff treatment to MERCOSUR under the 
MERCOSUR -Morocco  Framework Agreement? If so, can Morocco please provide an update 
on its timeline for notifying those preferences to the WTO?  
Reply from Morocco : Morocco and the MERCOSUR are presently conducting exploratory consultations 
and exchanging economic information with a view to eventually concluding a preferential agreement.  
 
Question 7 
 
Could Morocco provide an update on the status of the required noti fication for the 
Morocco -United Arab Emirates Agreement , which entered into force on 9  July 2003?  
 
Reply from Morocco : The notification of the Morocco -UAE Free Trade Agreement is underway, in 
consultation with the UAE partner. The notification will soon be  submitted to the WTO.  
 
Question 8 
 
Could Morocco provide an update on the required notification for the Morocco -Guinea 
Agreement?  
 
Reply from Morocco : Morocco has no Free Trade agreement with Guinea. The two countries had 
previously signed a trade and tariff convention with Guinea in Conakry on 12 April 1997, which 
entered into force on 6 September 2000.  WT/COMTD/RTA/11/2  
 
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Question 9 
 
Could Tunisia please provide an update as to when its agreements with Libya, Iraq, 
Morocco, and Syria will be notified, which entered into  force in February 2002, 
December  1999, March 1999, and 2005, respectively?  
 
Reply  from Tunisia : Tunisia is examining the notifications to be submitted regarding regional trade 
agreements. It will transmit them to the WTO as soon as possible.  
 
 
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