WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/150/Add.1 
31 August 2005 
 (05-3783) 
Trade Policy Review Body 
26 and 28 July 2005 Original:  English/ 
                anglais/                 inglés 
  
TRADE POLICY REVIEW 
EGYPT 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Mr. Don Stephenson (Canada) 
 This document contains the advance writte n questions, and replies provided by Egypt.1 
__________________________________________________________________________________  
Organe d'examen des politiques commerciales 
26 et 28 juillet 2005 
 
EXAMEN DES POLITIQUES COMMERCIALES 
ÉGYPTE 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. M. Don Stephenson (Canada)  
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par l'Égypte.1 
__________________________________________________________________________________  
Órgano de Examen de las Políticas Comerciales 
26 y 28 de julio de 2005 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
EGIPTO 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. Don Stephenson (Canadá) 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Egipto.1 
 
                                                      
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/150/Add.1 
 Page 3 
 
 
REPLIES TO QUESTIONS 
Agriculture : 
AUSTRALIA : 
Agriculture : 
 Australia encourages Egypt to update its no tifications to the WTO on domestic support, 
noting that according to the WTO Secretariat Report, its last notification was submitted in 1999 
(pg. 56, para. 14).   
 Australia, in particular, seeks further inform ation about the financial assistance provided 
to the agricultural sector in the form of subsidised  electricity and water, the latter being provided 
almost free of charge to farmers (Secretariat report, pg. 56, para. 14). 
Reply: 
There is no subsidy provided for the agricultural sector in the form of subsidized 
electricity. 
Irrigation system does not make it possible to  estimate the amount of used water.  
Paying for this water is an item included in taxes imposed on agricultural lands.  There is no 
specific electricity subsidy to the farmers.  
USA : 
Agriculture - Policy developments : 
25.  In paragraph 13 on page 56, the Secretariat Report indicated that Egypt maintains applied 
tariffs above WTO bound rates for two agricultural product groups.  Although Table III.3 (page 31) is 
referenced, not all agricultural products described in footnote 2 of page 56 (prepared or preserved 
chicken meat, fats and o ils derived from milk) appear on this Table.   
Please clarify the tariff lines for which Eg ypt maintain duties above bound rates.  
Reply: 
According to Egyptian legislation, WTO sch edule of commitments have to be followed 
regardless of our applied tariffs rates in dealin g with WTO members.  If the WTO bound rates 
are less than the applied tariffs rates and the goods are imported from a WTO member country, 
the lower tariff rates are applied. 
Applied rates that exceed bound rates are not on 19 tariff lines as indicated by 
(Table III.3). 
For the agricultural products, Egypt is appl ying the bound rate as of May 1, 2005. 
According to Egypt’s schedule of commitments, the products with the following HS 
codes above WTO bound rates are: 
− 16029010. 
− 24039920. WT/TPR/M/150/Add.1 
Page 4  
 
 Pursuant to the submission of the Minist erial Decree 1113/2003, bound rates are applied 
to WTO members in cas es where applied rates ex ceed the bound rates. 
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN, AND MATSU
: 
(2)  AGRICULTURE : 
(ii)  Policy developments : 
(Pgs. 55-56, paras. 12-13). 
Egypt’s single average bound tariff rate on agricultural products is 27%, which greatly 
exceeds applied rates (single average is 5.8%). 
Could Egypt please explain the reason for su ch a large gap, and under what conditions 
tariffs have been raised?  
Reply: 
The bound rate on agricultural products was 27% in 1995.  Since the beginning of the 
economic reform program in 1995 we started the gradual reduction of the average tariff rate, 
which ensures Egypt’s credibility in reducing the average tariff rate according to global changes and international trends towards reducing the customs barriers. 
BRAZIL
: 
Agriculture : 
WT/TPR/150, Summary Observation, (3) Trade Policy Instruments, Page vii, paragraph 9: 
Why does import prohibition for poultry offal remain in place while most import 
prohibitions were lifted in 2004? 
Reply: 
Import prohibition for poultry offal remains in  place due to cultural reasons as it is 
difficult to make sure that these parts are (Halal).   In case that we reach a scientific basis that 
this condition is achieved, poultry o ffal imports prohibitions will be lifted.  
Competition Policies : 
AUSTRALIA : 
Competitive Neutrality : 
Australia is concerned that non-market based pricing by public sector companies can be a 
deterrent to foreign investment in Egypt.  For example, discharge, storage and handling fees at ports for commodities such as wheat must accord with fees set by public sector firms.  This impedes new 
private investment in more efficient port facilities. 
What is the rationale for maintaining non-mark et based pricing by public sector companies 
in sectors where greater foreign investment and participation is being encouraged to enhance 
competitiveness and efficiency?   WT/TPR/M/150/Add.1 
 Page 5 
 
 
Reply: 
 Port charges are an aspect of the role of public sector companies in the economy.  This is 
under review and the privatization program is being strengthened.  It could be pointed out that 
there has been private investment in new ports.  (Ain Soukna). 
Egypt’s policy is to move towards the eliminat ion of non-,market based pricing.  This is 
a policy that is being pursued increasingly in vario us sectors.  This policy has been given a clear 
direction until the recent enactment of a new competition law ( No 3 of 2005 ) issued on February 15
th, 2005.  the law will provide a solid base fo r the elimination of all non-competitive 
practices, including public sector companies. 
Currently the new Competition Authority is being set up and the Executive Regulation 
of the law are being finalized. 
EC: 
Competition policy : 
The EC should like Egypt to inform about the content of the newly adopted competition law 
and the timeframe foreseen to start the implemen tation of this law? Also with respect to which 
institutional arrangements a re foreseen in this respect? 
Reply: 
The law was issued on 15th February 2005 and it entered into force On May 
15th 2005.  
The executive regulations are currently und er discussion and the Prime Minister will 
issue them once it will be revised. 
As soon as the executive regulations are i ssued, the implementation of the Law will get 
into force. 
As for the institutional arrangements, it is  stipulated in the Law that a Competition 
Authority will be established to undertake the implementation of the Law.  It will be an independent body.  The Prime Minister is the competent authority overlooking its operation.  
The Authority has a Board made of representatives of different organizations (Article 12) a full 
time Chairman of the Board and Executive Director.  
We have the members of the board of the Authority and a short list for the Chairman 
and Executive Director positions. 
6. We will start holding roundtable discussions with stakeholders from the business 
community to discuss the Law and its regulations. 
In short, by the end of August, we will have a running Egyptian Competition Authority 
in charge of implementing Law no 3/2005.  The Law establishes that a company of a market share of greater than 25% is considered to be in  a dominant position and could have an impact 
on prices of quantities supplied.  Thus, the practices of these companies will be subject to investigation in case they engage in an anticompetitive practice. WT/TPR/M/150/Add.1 
Page 6  
 
Customs
: 
USA : 
Measures Affecting Production and Trade - Local-Content Requirement : 
15. Referring to paragraphs 126 and 127 on  pages 48 and 49 of the Secretariat Report, 
please explain how the local content requirement fo r the reduction of customs duties conforms to 
Egypt’s obligations under Article 3.1(b) of the SCM Agreement. 
Reply: EC
: 
Tariffs : 
The EC notes that Egypt currently has a number of tariff lines with special rates that were 
excluded from the tariff cuts implemented in Se ptember 2004, some of which exceed corresponding 
bound rates (as referred to in paragraph 21 in the report prepared by  Egypt). 
Could Egypt clarify the motivations for this?  
Reply:  On the issue of applied tariffs being higher than the bound (which do not exceed 0.2% 
from the total tariff lines), we would like to ref er delegations to Ministerial Decree No. 1113 for 
year 2003 which guarantees WTO members shall be nefit from the lower rate, either bound or 
applied.  These cases do not ex ceed 0.2% of the total tariffs. 
Tariff peaks are applied on alcoholic pro ducts for cultural reasons taking into 
consideration that they are applied under GATT article 20 exceptions. 
As for the issue of additional reduction in tariffs, and the simplification of the duty 
regime, an assessment of the impact of the 200 4 reform is being undertaken based upon which 
further duty reform may be developed. 
All services fees and surcharges have been el iminated by Presidential Decree No. 300 for 
year 2004. 
Is there any intention, or any timetable pl anned for an upcoming customs tariff 
simplification aimed at reducing such tariff peaks, which would seem to be in contrast with the 
comprehensive tari ff simplification and reductions implemented through Decree 300/2004? 
Reply:  
Tariff peaks are applied on alcoholic pro ducts for cultural reasons taking into 
consideration that they are applied under GATT article 20 exceptions. 
Duty and tax concessions
: 
Reference is made to pg. 14 para. 17 in th e report prepared by the WTO Secretariat, 
concerning different tax incentives offered by the government.  WT/TPR/M/150/Add.1 
 Page 7 
 
 
The EC should like Egypt to clarify its view s on these tax concessions and also inform 
about how Egypt assesses the link to other polici es aiming at increasing trade and economic 
growth.  
Reply: 
New Tax Law 91/2005 has reduced taxes rates and abolished taxes exemptions as it was 
proved that they have no relation with economic growth. 
Could Egypt inform what speci fic sectors are covered by th e various tax exemptions? Are 
there any specific criteria that need to be fulfilled in order for enterprises to take advantage of these exemptions? 
Reply: 
The enterprises that had been established in the new communities and  cities were 
covered by the tax exemptions but the new tax la w gives these projects grace period to abolish 
such exemptions. 
NEW ZEALAND
: 
 2. We note that in the Report from the Government of Egypt (WT/TPR/G/150 p.7, para. 16), 
Egypt recognizes that there are legitimate roles fo r customs, food inspection, etc but these roles have 
to be conducted with the objective of reducing cost s and uncertainties for exporters, and that policies 
to bring Egyptian procedures into conformity with  international practice are on the agenda of all 
Egyptian agencies involved.   
 What policies is Egypt developing on the mandatory border inspection of food imports? 
What policies is Egypt developing to ensure that its applied standards reflect defined sanitary and 
phytosanitary objectives and not arbitrary techni cal restrictions? Is Egypt developing a policy on 
recognition of equivalence, whereby the high standards applied by some food exporters are 
recognized by authorization of a certification reg ime by the competent authorities of the exporting 
country?  Which agency is responsible for the developm ent of this policy, and what is the outlook 
for finalization and rollout of the policy? 
Reply: 
 The applied rules for customs and food inspect ions are consistent with the international 
standards.  Rules applied for inspecting agricul tural goods and food imports follow the sanitary 
and phytosanitary measures and health rules.  
Inspection rules and standards are developed continuously according to international 
standards.  In addition, Industrial modernizatio n program exerts great efforts to enhance these 
standards.   
The industrial modernization program is a shared responsibilities among the ministry of 
foreign trade and industry, research centres follo wing the ministry of agriculture ,exporters & 
importers communities and exporting & importing  councils.   
3. The Report from the Government of Egypt (WT/TPR/G/150 p.8, para. 31), states that the 
1 - 4% customs surcharge on imports has been elim inated.  New Zealand’s experience is that this 
surcharge is still being applied by the customs aut horities.  What measures is Egypt taking to ensure 
that the surcharge is not levied?   WT/TPR/M/150/Add.1 
Page 8  
 
 To what Egyptian quarter should exporters and their Governments turn for redress in the 
event that a surcharge is illegally levied?   
Reply: 
Egyptian Customs Authority abolished the service fees by virtue of ministerial decree 
No. 1230 in 8/9/2004 , since then no fees are bein g collected in the different customs posts, New 
Zealand has to submit its proof of such cases to the Egyptian Customs Authority. 
SWITZERLAND
: 
(ii) Customs Valuation : 
 Para. 15 of the Secretariat report indicates that if the difference between the declared 
value and the assessed correct value of the goods exc eeds 20%, fines ar e payable in addition .  
Are fines also payable if the difference is smaller than 20%?  According to article VIII GATT, no 
substantial penalties for minor breaches of custom s regulations or procedural requirements shall 
be imposed.  
 In particular, in the case of omissions or mistakes easily rectifiable and obviously made 
without fraudulent intent or gross negligence, th e penalty must only serve as a warning.  Does 
Egypt also foresees such cases even  if the difference exceeds 20%? 
Reply: 
Fines are paid in case that the importer indicates that the difference between the 
declared value and the assessed correct value of the goods exceeds 20%  and that he agrees to 
pay the fines. 
Pursuant to the issuance of law 95/2005, payable  fines become 15% of lost duties instead 
of 100%. 
(iii) Rules of Origin : 
 1. In para. 18, the Secretariat's report suggests that Egypt has not notified any rules of origin 
to the WTO.  Egypt does not have precise non-preferen tial rules of origin.  Article 19 of the Customs 
Law defines origin as the country where the goods ar e produced.  Also, in para. 19, the Secretariat's 
reports indicates that Ministerial Decree 515 of Oc tober 2003 requires that all goods be clearly labeled 
and carry a certificate of origin, with any mistakes on the label or certificate being grounds for returning the goods to the country of origin.  Se lf-certification is allowe d and usually applied. 
Switzerland expresses its concerns about the obligat ion to produce for all imports certificates 
of origin, above all the obligation to produce a certif icate of origin from the country of origin.  Also a 
certificate of origin issued by the competent authority of the intermediate country, where the new 
invoice by the trader is made out, should be sufficient to prove the origin.  Switzerland has also been 
informed by its trading community that certificates of origin issued by the competent Chambers of 
Commerce in Switzerland, which always verify accurate ly the origin to certify, have to be restamped 
by other bodies like the “Chambre de Commerce Arabo-Suisse”.  This double certification is unnecessary, cumbersome and does not add any value in proving the origin.  
We would like to know if Egypt in the light of  the latest positive trade facilitating measures 
and tariff cuts has foreseen to abolish such  unnecessary documentary burden? Or does the self-
certification substitute the obligation to produce a certificate of origin?  WT/TPR/M/150/Add.1 
 Page 9 
 
 
Reply: 
Ministerial Decree 515 of October 2003 does not require that all imported goods be 
clearly labelled and carry a certificate of origin. 
 Labelling is only required for imported packaged products.  In addition, Certificates of origin are only required for imported goods for trading 
purposes.  These are temporary procedures till the process of issuing legislations to protect 
domestic consumers is done. 
If the imported raw materials, intermedia te goods and capital goods are not shipped 
from the country of origin and carry a certificate of  origin from the country of origin so there is 
no need for any additional proof.   
But if these goods carry a certificate of origin from a country other than its country of 
origin so there is a need just to refer to country  of origin not to submit a new certificate of 
origin. 
It is not true that certificates of origin have to be restamped by other bodies like the 
"Chamber de Commerce Arabo-Suisse", they have to be verified only from our embassies 
abroad.  In case of reciprocity among countries, this verification is not required as the case of 
European Community (EC).  
(iv) Tariffs
: 
(b) MFN tariff bindings : 
 Para. 32 and Table III.3:  According to para. 32 Egypt still has 19 tariff lines whose applied 
duties exceed, sometimes substantially, the corresponding bound rates.  
 Could Egypt specify why the applied rates for these 19 tariff lines exceed the bound rates? 
What does Egypt intend to do to remedy this situa tion as soon as possible? Although the Customs 
administration applies the bound rates to WTO me mbers in cases where applied rates exceed the 
bound rates, which control mechanisms are in pla ce to ensure that this will always be the case?  
Reply: 
According to the Egyptian legislation, WTO schedule of commitments have to be 
followed regardless of our applied tariffs rates in dealing with WTO members.  If the WTO bound rates are less than the applied tariffs rates and the goods are imported from WTO 
member country, the least ta riff rates are applied. 
According to Egypt schedule of commitment, the products with the following HS codes 
are 160%: 
− ex 8703.23.90. 
− ex 8703.24.90. 
− ex 8703.32.90. 
− ex 8703.33.90. 
− ex 8703.90.90. 
− 9603.30.90. 
 WT/TPR/M/150/Add.1 
Page 10  
 
According to Egypt schedule of commitment, the products with the following HS codes 
are bound at 60%: 
 
− 9405.40.10. 
− 9405.40.20. 
− 9405.40.90. 
 According to Egypt schedule of commitment,  the product with the following HS code 
3006.70.00 are bound at 20%. 
 For all these tariff lines the cu rrent applied rates are 135%. 
 Pursuant to the submission of the Ministerial Decree 1113/2003.  The bound rates are 
applied to WTO members, in case where applied rates exceeds the bound rates.  
(d) Exemptions and concessions
: 
Para. 36.  According to para. 36 numerous in dividual exemptions and concessions schemes 
and their wide scope, coupled with the possibility of  discretionary decisions, reduce the transparency 
of Egypt's tariff regime.  
Could Egypt indicate which discretionary decision s have been taken, if any, since the last 
TPR, on which products, for which period of time,  for which beneficiaries? Also what are the 
criteria used to take such a decision? 
Reply: 
Individual exemptions are applied only fo r certain agencies that are exempted from 
taxation according to their establishment la ws and this is informed to WTO.  
Procedures of Draw back, temporary exem ption, temporary release and concessional 
duty are accepted internationally, so they do not reduce the transparency of Egypt's tariff 
regime.   
No, Egypt did not take any discretionary decisi ons.  On the contrary, the tariff structure 
abolishes them altogether. 
AUSTRALIA : 
Customs : 
The Secretariat reports notes that since Egypt’ s previous Review, the Customs Administration 
has stepped up efforts to improve inspection and cl earance activities (pg. 24, para. 11).  This is a 
welcome development, in light of concerns express ed by traders about overly burdensome procedures, 
and unduly time consuming paperwork.   
Could Egypt please provide more information on these reforms? 
Reply: 
 Egypt has automated the customs posts, and applies nowadays the pre-processing 
system in some posts as goods is released before it’s arrival , and also Egypt applies the risk 
management system and post clearance audit, ta king into account that the documents that are 
required by the Customs Authority are:  WT/TPR/M/150/Add.1 
 Page 11 
 
 
 Proforma invoice, packing list, and the certificate of origin.  
 Nowadays, Egypt is preparing to adop t the technology of Electronic commerce 
(e-commerce). 
Competitive Neutrality : 
Australia is concerned that non-market based pricing by public sector companies can be a 
deterrent to foreign investment in Egypt.  For ex ample, discharge, storage and handling fees at ports 
for commodities such as wheat must accord with fees  set by public sector firms.  This impedes new 
private investment in more efficient port facilities.   
What is the rationale for maintaining non-mark et based pricing by public sector companies 
in sectors where greater foreign investment and participation is being encouraged to enhance 
competitiveness and efficiency? 
Reply: 
Port charges are an aspect of the role of pub lic sector companies in the economy.  This is 
under review and the privatization program is being strengthened.  It could be pointed out that 
there has been private investment in new ports.  (Ain Soukna). 
Egypt’s policy is to move towards the eliminat ion of non-market based pricing.  This is a 
policy that is being pursued increasingly in vari ous sectors.  This policy has been given a clear 
direction until the recent enactment of a new competition law (No 3 of 2005) issued on February 15
th, 2005.  the law will provide a solid base for th e elimination of all non-competitive practices, 
including public sector companies. 
Currently the new Competition Authority is being set up and the Executive Regulation 
of the law are being finalized. 
Tariffs : 
Is Egypt considering any reduction of the MFN tariffs on alcoholic beverages, which are 
largely prohibitive for Australian wine, and on cars over 1600cc capacity, which are prohibitive for 
Australian-made cars? 
Reply: 
It’s not considered to reduce tariffs on alco holic beverages whether imported from the 
most favored nation (MFN) or from any other count ry and that’s due to religious reasons.  Also, 
the rates imposed on cars are applied on all impo rted cars into Egypt , and there are no benefits 
granted to a certain country.   
Economic Environment : 
CANADA : 
V. Enabling Policies Enhancing Foreign Trade P erformance, (7) Tourism Sector Growth, 
paragraph 78:  
 The Report makes reference to business tour ism as one of the non-traditional types of 
tourism to which attention is being paid by the Go vernment of Egypt.  Could Egypt please elaborate 
on the meaning of business tourism . WT/TPR/M/150/Add.1 
Page 12  
 
Reply:  
 Reference to Business Tourism, the report refers business tourism as one of the 
traditional types to which attention is being made government.  Could Egypt please elaborate 
on the meaning of business tourism? 
 Business tourism in this context refers to the corporate/group events, meetings, 
conferences and incentive trips.  Egypt seeks to be a destination for conferences, meetings, and 
incentive trips in region as well as at the international level. 
SWITZERLAND
: 
I. ECONOMIC ENVIRONMENT : 
(2) Recent Economic Developments : 
Para. 8:  The Secretariat's report indicates that  the primary objective of monetary policy in 
Egypt is price stability.  It adds however that the co ncept of price stability has not yet been defined.  
Could the Egyptian authorities explain on what basis they conduct their monetary policy if their objective is to target price stability without defining what price stability implie s in the context of the 
Egyptian economy? When do the authorities intend to define this concept of price stability? 
Reply: 
Law no. 88 of 2003 of the "Central Bank,  Banking Sector and Monetary System" 
entrusts the Central Bank of Egypt (CBE) wi th the formulation and implementation of 
monetary policy, with price stability being the primary and overriding objective.  The CBE is 
committed to achieving, over the medium term, low rates of inflation which it believes are 
essential for maintaining confidence and for sustai ning high rates of investment and economic 
growth. 
 Table I.2, suggests that between FY 1998/99 and 2002/03, the rate of inflation fluctuated 
between about 2½ and 4%.  For 2003/04, however, in flation appears to have jumped to 12.1%.  What 
are the reasons for this sudden acceleration in inflatio n ? At the same time, intriguingly, the short term 
interest rate represented by the average nominal thre e-month treasury bill rate seems to have stayed 
virtually unchanged during the whole period under review (i.e. from 1998/99 through 2003/2004), 
which implies that the real interest rate whic h had been largely positive (around 5%) until 2002/03 
became largely negative (over 3%) in 2003/04.  This  would imply that the stance of monetary policy 
must have remained largely unchanged, e.g. passive, in spite of the sharp acceleration of inflation.  
Could the Egyptian authorities explain the reasons for the apparent passivity of monetary policy in the 
context of a sharply accelerating inflation, and how,  in their view, such a behavior of monetary 
authorities can be reconciled with the primary objective of price stability? 
Reply: 
Monetary Policy Framework
: 
The CBE intends to put in place a formal inflation targeting framework to anchor 
monetary policy once the fundamental prerequisit es are met.  This will further enhance the 
predictability and transparency of the monetary po licy in Egypt.  In the transition period, the 
CBE will meet its inflation objectives by steering short term interest rates, keeping in view the 
developments in credit and money supply, as well as a host of other factors which may influence 
the underlying rate of inflation.  The CBE stro ngly believes that real negative interest rates are 
inconsistent with the ongoing effort to reduce in flation rates.  The continued reduction of the  WT/TPR/M/150/Add.1 
 Page 13 
 
 
inflation rates that Egypt has witnessed in recent months is important in order to guide long- 
term inflation expectations.  
Monetary Policy Implementation : 
Monetary policy decisions are taken by th e CBE's Monetary Policy Committee (MPC), 
which has nine members comprising of the Gov ernor of the CBE, the two Deputy Governors, 
and six members of the Board of Directors.  Deci sions are implemented through a set of policy 
instruments and procedures.  The CBE will use two standing facilities (an overnight lending 
facility and an overnight deposit facility) as it s main policy instruments, providing the outer 
bounds of a corridor within which the overnight inter-bank rate will fluctuate.  The CBE will 
continue to manage market liquidity through its open market operations.  
Inflation acceleration : 
Among the first decisions made by the new B oard of Directors at the CBE late 2003, was 
the adjustment and realignment to the basket of  goods represented in the consumer price index 
(CPI), to reflect more accurately the true inflation in the Egyptian economy. 
Early 2003 the EGP was declared a freely floating currency, the depreciation that 
followed took the $/EGP to close to 7.00 EGP’s to  the $.  The devaluation of the currency did 
eventually lead to a sudden acceleration in inflation. 
The CBE, however, did address the matter by  adopting a non-expansionary monetary 
policy early 2004, followed by the introduction of a proper foreign exchange  interbank system in 
December 2004.  the result was dram atic declines in inflation that were mainly attributed to the 
following factors: 
a. Appreciation of the EGP foreign exchange rate. 
b. Favourable external shocks to foreign prices. 
c. Notable slowdown in food and agricultural prices. 
d. Containment of domestic demand as a result of non-expansionary policy. 
Conclusion : 
 It is the view of the CBE that the adopti on of the non-expansionary monetary policy 
during the past 18 months was no doubt the driving force behind the recent dramatic declines 
seen in the inflation figures,  and that will inevit ably result in achieving the objective of ‘ price 
stability’. 
EC: 
1. TRADE IN GOODS : 
 “Reference is made to page 14, para. 17 in the report prepared by the WTO secretariat 
concerning different tax incentives offered by the Government. 
 The EC should like Egypt to clarify its views on these tax concessions and also inform about 
how Egypt assesses the link to other policies aiming at increasing trade and economic growth.   WT/TPR/M/150/Add.1 
Page 14  
 
 Could Egypt inform what speci fic sectors are covered by th e various tax exemptions? Are 
there any specific criteria that need to be fulfilled in order for enterprises to take advantage of these exemptions?”  
Reply: 
Since June 2005, the whole system of tax incentives has been eliminated in Egypt of tax 
incentives of the new Tax Law which no longer a llows the grant by virtual, except with respect 
to ten year exemptions granted to (i) land reclam ation projects, (ii) poultry, animal, bees and 
fish production, (iii) publishing and translation, and (iv) agricultural production.  
This relates to a broader approach to investment promotion in Egypt based on the need 
to eliminate distortions and install a general leve l playing field that relies on the attractiveness 
of the economy as a whole and not on the need to provide exceptional openings into it.  
For the sectors mentioned abov e where exemptions will be granted, there are no specific 
requirements for business licensing. 
 Referring to pg. 6, para. 14 and onwards, in re port prepared by the WTO secretariat.  The EC 
notes that Egypt has a rather diversified export por tfolio of manufactured goods, however the main 
sector is fuel products representi ng over 43% of exports in 2003. 
The EC should like Egypt to express its vi ews on the diversification of manufacturing 
sectors and also reflect upon the ways Egypt is seeking to secure sustainable development when 
increasing the manufacturing of goods. 
Reply: 
Manufactured goods accounted for 30%  of ex ports in 2003.  Future expectations and 
Egypt’s national strategies indicate that manuf acturing percentage of GDP will increase from 
5% to 15% through the coming  five years.  This will result in an increase of exports from 
$ 3 billion to $ 7 billion. 
Egypt has diversified portfolios of manufa ctured sectors and qualified resources 
whether technical or human.  That  encourages further integration of  Egypt into the global 
economy and entering free trade agreements with COMMESA, Arab countries and EU. 
Please inform what is being done in order to ensure adequate protection of the 
environment, while maximizing foreign exchange earnings? 
Reply: 
Egypt’s national strategies aim at ensuring that developing production volumes and 
exports quantities is consistent with internat ional environmental standards to ensure easy 
market access to international markets which requi re these environmental  standards as  a vital 
condition for importation.  
According to the Industrial modernization program, Egypt does not grant any 
industrial licences for any project before the a pproval of the Agency  for environmental 
issues.  The standards of this  agency are consistent with all environmenta l standards and 
regulations.  WT/TPR/M/150/Add.1 
 Page 15 
 
 
Commercial and business laws : 
In the report prepared by Egypt, pg. 15 paras.  82-83, it could be read that a National 
Committee was established to review economic regul ations.  A tendency of over regulation and a 
complex legislation seem to make it difficult to identify the applicable measure.  
Could Egypt clarify its views on the legislation and also inform about effort taken, if any, in 
order to create a better transparency to give privat e operators consistent legislative information? 
 Would the National Committee at some point consider adopting consolidated compendia of 
economic, trade and investment legislation to facilitate transparency and application? 
Reply: 
The establishment of a National Committee fo r the Review of Economic Legislation will 
provide the framework for the overall coordi nation between all elements of economic 
legislation, in order to bring consistency, and tr ansparency in economic la w.  Various efforts at 
improving transparency of rules - such as those currently underway in the Investment Authority - will all be pooled.  The Investment Authority is working on the production, before the end of the year, of Investor Guides directin g investors to all rules and regulations governing 
various sectors.  
Trade policy
: 
How is the issue of trade being dealt within Egypt’s national strategi es? Are the strategies 
based on the possibilities for advancing the count ry’s development objectives in the context of 
increasing globalization through trade? 
Reply: 
Facilitating trade is an integral component to any country’s successful participation in 
the global economy and Egypt is committed to this  process.  Several of Egypt’s economic reform 
activities are focusing on the promotion of a fair and predictable business environment that 
encourages competition, including the ability to  access and deliver of goods and services in an 
efficient and cost-effective manner.  The benefi ts will extend to Egyptian consumers via lower 
prices and improved quality, thereby raising livin g standards.  At the same time, political, 
financial, and economic stability will help attract foreign and domestic investors, which in turn, 
will impact productivity and employment in Egypt’s economy. 
Egypt's national strategies are developed acco rding to what had been achieved in the 
growth rates, GDP, inflation rates variation  and agricultural and industrial production.  
Strategies are assumptions that are based on wh at happened previously and what will happen in 
future. 
With the objective of enhancing the integrat ion in the global economy as a strategic 
target, Egypt's trade policy framework utilizes multilateral and bilatera l agreements to expand 
market access for Egyptian ex ports and to facilitate access by domestic firms to inputs 
necessary for production. 
A comprehensive reform and development plan could assist Egypt in the upgrading of the 
capacity of the Government of Egypt to undertak e it’s obligations in international trade related 
matters.  WT/TPR/M/150/Add.1 
Page 16  
 
Does the government’s strategies, as set out in  the priorities of short, medium and long-
term objectives for the country, meet these aims? Wh ich steps would be taken in order to attract 
coordinated donor involvement in support of the steps envisaged? 
Reply: 
Yes, the government’s strategies, as set out in  the priorities of short, medium and long-
term objectives for the country meet these aims. 
Many procedures are taken in order to attr act coordinated donors such as amending 
legislation and laws that are related to the eco nomic and trade activities by  reforming custom 
and tax system, developing the performance me asures in various institutions and enhancing 
services quality provided by different sectors in addi tion to  supporting the investment climate. 
It should be noted that Egypt is executin g a number of reforms that will increase its 
capacity to effectively undertake and implemen t its current and future international trade 
obligations.  Currently Egypt is developing additi onal capacity on trade-related matters, as well 
as encouraging donor coordination in order to maximize support and avoid duplication of efforts.  
The EC considers that the WTO and multilateral liberalization is the most certain way for 
small and medium sized countries to promote its interests.  
How does Egypt judge the relative importance and weight of bilateral/FTA policies and 
further development of the WTO system in terms of its own trade and development needs?  
Reply: 
Egypt considers bilateral/FTA policies to be  complementary with further development 
of the WTO system.  Egypt seeks to ensure consis tency in obligations assumed under both forms 
of agreement. 
How does Egypt see the development of its trade policies in the context of the multilateral 
system? 
Reply: 
 Egypt looks at both bilateral and multilatera l systems as tools to help overcome vested 
interests that oppose trade liberalization both domestically and in it trading partners. 
Egypt is a developing country with high grow th and great development perspectives.  Other 
countries in the global trading system are less fortunate.  
Has Egypt introduced arrangements aimed at  increasing the integration of the least 
developed countries in the global trading system, e.g. through schemes increasing the market 
access of these countries? How do es Egypt assess the development pr ospects of these countries?  
Reply: 
Egypt has preferential trading arrangemen ts with several groups of developing 
countries such as COMESA and AGADIR.  Such agreements benefit lesser developed countries 
both by increasing access to Egypt’s market an d from the competitive pressure from Egypt’s 
exports in their markets.  Egypt believes th at given correct policies, prospects for these 
countries are favourable.  WT/TPR/M/150/Add.1 
 Page 17 
 
 
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN, AND MATSU : 
I. ECONOMIC ENVIRONMENT : 
(2) RECENT ECONOMIC DEVELOPMENTS : 
(Pg. 3, para. 9). 
In March 2003, the Government introduced a su rrender requirement that obliged exporters to 
sell 75% of their foreign currency proceeds to a State-owned bank in Egypt; this requirement was 
eliminated in 2004.  
Please could Egypt advise whether there are any restrictions with regard to Egyptian 
exporters keeping their total export proceeds in foreign currency.  In addition, are there any 
restrictions on the purchasing of foreign exchange for import payments? 
Reply: 
There are no restrictions with regard to Egyp tian exporters keeping their total export 
proceeds in foreign currency. 
There are no restrictions on the purchasing of  foreign exchange for import payments. 
(Pgs. 59-60, para. 36). 
To keep up with the growing demand for electricity, the government of Egypt plans to expand 
the installation of an additional 13.4 GW by the year 2012.  The Report indicates, however, that the 
private generating companies’ share of total insta lled capacity was just under 8% in 2003.  This tends 
to imply that the future of BOOT financing in Eg ypt is unclear, and recent government statements also 
indicate that no new BOOT projects are likely in the near future.  Accordingly, the government will 
have to invest more in electric power projects.   
Does the government of Egypt have any plans to adopt new incentives and supplementary 
measures to attract BOOT projects? 
AUSTRALIA : 
Taxation Anomalies : 
Australia is concerned that withholding ta x arrangements in Egypt are excessively 
complicated and discriminatory.  For example, project finance costs can be subject to variable rates of 
tax that lead to additional costs and complexity.  Another anomaly is that withholding tax on royalty 
payments is imposed within free zones, which in prin ciple are not meant to be subject to such taxation 
measures. 
What steps are being taken by Egypt to ensure  that the taxation system does not operate as 
an impediment to enhanced foreign investment? 
Reply: 
The new income tax law, applied as at June 10th, 2005 represents a breakthrough in 
Egypt’s tax system, especially in terms of simpli city and clarity, which should lead to a much 
more transparent process.  The Law is complement ed - when needed - by rules issued by the 
Tax Authority, which are published and made available to everyone.  WT/TPR/M/150/Add.1 
Page 18  
 
In the cases mentioned above: 
Project finance costs under the new law have  been simplified to become a flat 20% 
withholding tax on interest, unless a lower payment is stated by bilateral tax treaty.  This, however, applies only to finance of less than three  years.  Finance for longer than three years is 
not subject to withholding tax. 
As for royalty taxation, projects in free zon es are not themselves subj ect to taxation, but 
payments they made to non-free zone entities  within Egypt are subject to taxation, and 
therefore subject to withholding.  Payments to entities outside of Egypt are not subject to 
taxation.  
We are confident that the application of th e new law will eliminate all doubts about the 
clarity of the rules.  
SWITZERLAND
: 
(4) Mining, Petroleum and Natural Gas : 
(i) Main Features : 
Para. 24:  The contribution of petroleum and natural gas production to Egypt's GDP increased 
from 4.6% in 1998/99 to 11.6% in 2003/04;  the incr ease has mainly been due to rising oil prices.  
Output has increasingly shifted from crude oil pr oduction to natural gas (Table IV.5).   
The contribution of other mining activities to GDP is only about 0.3%. How can the 
simultaneous increase due to rising oil prices and th e shift from crude oil production to natural gas 
be explained? Is the gas export pri ce indexed to the crude oil price? 
Reply: 
Foreign Ownership of Oil & Gas Companies: 
According to “Production Sharing Agreements”  (a common contractual system in Oil & 
Gas operation as opposed to Royalty based system), Foreign Exploration Companies and 
Egyptian General Petroleum Cooperation have to  establish a 50-50 % Joint venture to operate 
oil & Gas fields after Commercial Discovery.  This Joint venture (for example Gupco, has 
EGPC and BP as shareholders) operates jointly the field according to the “PSA” protecting the 
interests of both shareholders.  
Foreign Partner never “own” the oil or the gas in legal terms, they are rather “entitled” 
to a certain share of the production.  This system is widely used and very common. 
Monopoly on export and Import and other activities: 
EGPC has according to the law (No. 167 of 1958, 2344 of 1959, 20 to 1976) almost a 
“monopoly” on sale, purchase, storage, distributio n, import and export of petroleum Products 
in general.  Nevertheless the above laws stipulat e that they may do these activities by themselves 
or by an “Agent” on their behalf.  In reality they use agents to import petroleum products on their behalf, but no private entity is allowed to purchase petroleum products for the purpose of 
trading or distribution.  No one is interested an yway, since all prices re set by the government.  
With Regards to Distribution and resale as in the case of Exxon Mobil or TOTAL, they act as 
agents to EGPC, just as Misr Petroleum with fixed prices and margins.  WT/TPR/M/150/Add.1 
 Page 19 
 
 
General Position of the Private Sector within a heavy regulated Economy: 
There have been major advances of the private sector role in the Egyptian economy 
in terms of diversity of activities, which were solely reserved for the public sector, as well as in terms of its share in the GDP.  Judging by the latter indicator, one can be misguided, since the public sector still acts as a player in competition with the private sector and as a 
regulator at the same time.  In such a constellation, government’s policy objective may 
deviate from market rationale, thus putting  the private sector at  disadvantage when 
competing with public sector firms.  Another aspect is the heavy regulation targeting the 
private sector as opposed to the public sect or.  This again puts them at disadvantage and 
diminishes their effectiveness.  Having said that, in the past year the Government has sought 
to align its strategies, objectives of market based economies with recent policies, indicating a 
further retreat of the public sector as a market player.  A major obstacle is the huge subsidization system of many basic goods acro ss the country, which affects all consumers 
and productive sectors.  Private sector still refrains from that sector since prices are set by the government. 
(5) Electricity
: 
In para. 33, the Secretariat's report suggests th at about 86% of Egypt's generating capacity is 
thermal and in para. 37, it indicates that electricity prices vary according to the type of end-user (private, commercial, public) and that prices have  remained unchanged since 1992.  Presumably the 
thermal generation capacity is oil and gas based. 
How does the high oil price affect the electrici ty prices? Does the Stat e subsidize the totality 
of the price increase? 
Reply: General Petroleum Company & Egyptian Electric Company: 
EGPC and or Government have two fully ow ned exploration and production companies, 
namely GPC and newly established Thrawa.  As  a matter of fact these companies act as a 
competitor to foreign exploration and production  companies like BP, Apache and Shell.  EGPC 
wears two hats in that regard, one as a regulator and the other as a player in the market.  This has been widely criticized.  However it is co mmon in oil producing countries to have fully 
integrated National Oil Companies (NOC), work ing closely with the regulator like EGPC.  As 
for Electricity there has been much deregulation and the private sector was allowed to generate 
and sell power through license issued by the Ministry. 
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN, AND MATSU
: 
(Pgs. 59-60, para. 36). 
To keep up with the growing demand for electricity, the government of Egypt plans to expand 
the installation of an additional 13.4 GW by the year 2012.  The Report indicates, however, that the 
private generating companies’ share of total insta lled capacity was just under 8% in 2003.  This tends 
to imply that the future of BOOT financing in Eg ypt is unclear, and recent government statements also 
indicate that no new BOOT projects are likely in the near future.  Accordingly, the government will 
have to invest more in electric power projects.   
Does the government of Egypt have any plans to adopt new incentives and supplementary 
measures to attract BOOT projects? WT/TPR/M/150/Add.1 
Page 20  
 
Reply: 
 The Government of Egypt is considering a variety of options for allowing businesses new 
non tax - based incentives in view of the abolishment of tax incentives in June 2005.  
Government Procurement
: 
Hong Kong, China : 
(WT/TPR/S/150, pg. 46, para. 115). 
 3.  We note that in all its government procur ements, Egypt gives a 15% price preference to 
Egyptian products. 
 We are interested to know if Egypt has any plan to remove this preference and move 
towards a more non-discriminatory government procurement regime. 
Reply: 
Currently there are no plans to review these preferences. 
USA : 
Measures Affecting Production and Trade - Government Procurement : 
 13.  In Paragraph 114 on page 46,  the Secretariat Report stated that Egypt is not a signatory to 
the WTO Agreement on Government Procurement (GPA).   
 Does Egypt intend to join the GPA, or, to  otherwise increase government procurement 
eligibility for foreign suppliers?  
Reply: 
Egypt is not a party of the WTO Plurilateral Agreement on government procurement. 
 
JAPAN : 
(Pgs. 46 to 47, Paras. 114 to 119). 
As for government procurement, we notice that there are some special problems in Egypt 
such as unilateral changes of the contracts by the government, additional costs in the private 
companies caused by the government’s slow reacti ons, a special type of auction (ex. Momarsa), 
delayed approval of contracts by the State Council a nd re-negotiations after contract awards.  Such 
problems prevent private companies from dealing smoothly with the government. 
7. In this regard, please indicate the current situation. 
Reply: 
Actually the current situation is quite diff erent; Egypt has a well-organized system for 
government procurement ensuring the effective participation of the private sector.  Private sector companies deal heavily with the government  in the context of government procurement, 
and such problems are rare and do not prevent private companies from smoothly dealing with 
the government.  WT/TPR/M/150/Add.1 
 Page 21 
 
 
EC: 
Egypt is not a signatory to the WTO plurila teral Agreement on Government Procurement. 
Would Egypt consider becoming an observer  to the WTO Agreement on Government 
Procurement (GPA)? 
Reply: 
Egypt is not a party of the WTO Plurilateral Agreement on government procurement. Could Egypt provide statistics regarding awards  of contracts for year 2004 or 2003, detailed 
by type of contracts (works, supplies, services), tendering procedure (open, selective) and origin 
(international, local)? 
Reply: 
This information is not available right now but the Agency for Governmental services is 
currently collecting the needed information from  the relevant governmental bodies in order to 
establish a comprehensive database that will be published by the Agency and made available for 
the public. 
In paragraph 115 of the report of the WTO Secretar iat it is noted that 15% price preference is 
given for Egyptian products or services.  
To what extent would the Egyptian authoriti es be willing to reduce or eliminate these 
restrictions and within which time frame?  
Reply: 
Currently there are no plans to review these restrictions.  
Furthermore, referring to paragraph 119, the experimental establishment of a Tender Board 
for 400 items from 5 ministries has rightfully shown that centralized purchases could be made cheaper 
by 20%.  
Do the Egyptian authorities consid er generalizing this experiment? 
Reply: 
The Egyptian government has actually considere d generalizing this experiment, and this 
is being currently done. 
Investment
: 
CANADA : 
Report by The Secretariat (WT/TPR/150) : 
Part II. Trade and Investment Regimes, (5) Investment Regime, Paragraph 18: 
 1. Canada welcomes Egypt’s efforts to enc ourage foreign investment, and believes that 
greater transparency would help the government's efforts to attract FDI.  WT/TPR/M/150/Add.1 
Page 22  
 
 What are the measures that the government is undertaking to ensure more transparency (in 
terms of policies, strategies and regulations ) to encourage and protect FDI in Egypt? 
Reply:  The issue of transparency is part of Egyp t’s ongoing efforts to improve the investment 
climate.  This is important not only for FDI, bi t for the protection of local investors as well.  
Therefore, the current government has made the i ssue of transparency one of its priorities. 
Various ministries and agencies are increasingly posting proce dures and requirements on their 
websites.  
The Investment Authority is in the process of issuing Investors’ Guides which will lay 
out in great detail the rules and regulations for undertaking business in Egypt in various 
sectors.  
EC
: 
7. TRADE POLICY STRATEGY : 
Foreign Investment regime : 
On pg. 13, para. 67 in the government report of Egypt, the new Ministry of Investment and 
Public Enterprises is mentioned.  
Could Egypt clarify the main responsibilities fo r this new Ministry and also indicate the 
policy areas that will be priritised? 
 The EC would be interested to be informed if further improvements are foreseen and if so 
within which time frame? 
Could Egypt indicate that proportion of FD I goes to the different sectors of its economy, 
and specify the distribution of FDI within tho se sectors (e.g. for services: tourism, financial 
services, telecom, distribution, etc?) And in what  way does the Government plan to attract more 
FDI. 
Reply: 
The new Ministry of Investment was crea ted in order to bring coherence and 
consistency between authorities and activiti es relating to investment, non-bank financial 
institutions and privatization.  Non-bank financial institutions include the capital market, the insurance, mortgage finance, and financial leasin g sectors.  The Ministry is also the formal 
counterpart of the Institute of Directors which promotes corporate governance.  
 FDI participation in green-field investments in the year 2004/2005 as reported to the 
Investment Authority (excluding the petroleum sector and privatization) amounted to the 
following: 
Sector FDI participation in key sectors 
Finance and other services 29.5% 
Agriculture 22.4% 
Industry 21.5% 
Tourism 18.7% 
Construction 7.2%  WT/TPR/M/150/Add.1 
 Page 23 
 
 
As regards the Government’ plans to attrac t further FDI, this is currently undertaken 
by the Investment Authority which has been tran sformed from an investment regulator to an 
investor promoter.  The Investment Authority has since last year (i) established new promotion and investor relations departments, (ii) establishe d a one-stop-shop for investor servicing, (iii) 
launched an international campaign for invest ment promotion, (iv) undertaken studies for 
competitive sectors, (v) entered into a technical assistance agreement with the MIGA.  Outside 
of the Investment Authority, the Egyptian Government is pursuing aggressive plans for simplifying and reducing the cost of access to la nd, and providing transparent pricing policies 
for various other inputs.  
The EC should like Egypt to inform about the content of the newly adopted competition law 
and the timeframe foreseen to start the implemen tation of this law? Also with respect to which 
institutional arrangements a re foreseen in this respect? 
Reply: 
The law was issued on 15th February 2005 and it entered into force On May 15th 2005.  The executive regulations are currently under discussion and the Prime Minister will 
issue them once it will be revised. 
As soon as the executive regulations are i ssued, the implementation of the Law will get 
into force. 
As for the institutional arrangements, it is  stipulated in the Law that a Competition 
Authority will be established to undertake the implementation of the Law.  It will be an independent body.  The Prime Minister is the competent authority overlooking its operation.  
The Authority has a Board made of representativ es of different organizations (Article 12) a full 
time Chairman of the Board and Executive Director.  
We have the members of the board of the Authority and a short list for the Chairman 
and Executive Director positions. 
We will start holding roundtable discussions with stakeholders from the business 
community to discuss the Law and its regulations. 
In short, by the end of August, we will have a running Egyptian Competition Authority 
in charge of implementing Law no 3/2005. 
The Law establishes that a company of a market share of greater than 25% is 
considered to be in a dominant position and could have an impact on prices of quantities supplied.  Thus, the practices of these companie s will be subject to investigation in case they 
engage in an anticompetitive practice. 
Intellectual Property Rights
: 
USA : 
Measures Affecting Production and Trade - Intelle ctual Property Rights - Legal and Institutional 
Framework : 
 16.  According to Paragraph 129 and Table III. 11 of the Secretariat Report, Law No. 82 of 
2002 encompasses the intellectual property law, incl uding trademark law.  However, Law No. 82 of 
2002 does not contain a provision outlining the rights conferred by a trademark.  There is no Article WT/TPR/M/150/Add.1 
Page 24  
 
that corresponds to Article 16.1 of TRIPs.  As such, no standard for infringement (likelihood of confusion) is established.  
 How has Egypt implemented TRIPS Article 16.1?   
Reply:  Rights granted by a trademark could be inferred from the whole context.  For instance 
Article 71 states:  "The right of the mark owner to prevent third parties from the import, use of 
the trademark section in the Egyptian IPR Law, sale or distribution of products distinguished 
by such a mark shall lapse when the owner unde rtakes the marketing of those products in any 
country, or authorizes a third party to do so." 
 Article 95 of the Law states:  "The owner of a mark may license one or more natural or 
legal entities to use his mark on all or some of  the products for which the mark was registered.  
Such license to a third party shall not prevent the owner from using his mark, unless otherwise agreed. 
 The owner of a mark may cancel or refuse the renewal of the license contract without 
valid reasons." 
 17.  According to Table III.11 on page 50 of the Secretariat Report, Egypt excludes organs, 
tissues, viable cells, DNA, etc. from patentability in Egypt. 
What is the basis for Egypt’s exclusion fr om patentability of inventions within these 
categories?  How is this consistent with TRIPS Article 27 which indicates that patents shall be 
available for any invention, in all fields of tec hnology, with the exception of certain subject matter 
in paragraphs two and three of the Article. 
Reply: 
The conventional wisdom behind the Egyptian patent system is that the subject matter 
of the invention is the fruit of human ingenuity an d hence, to be patentable, it should fulfill the 
three criteria of patentability as provided in Article 27.1 of the TRIPS Agreement.  The 
Agreement introduced or enlarg ed the possibility of patent protection of certain life forms and 
processes.  A distinct flexibility, however, ha s been provided in article 27.3.b by granting 
members the right to exclude from patentab ility certain other life forms and processes: Such 
exclusion is permitted without specifically requiri ng that the subject matter is to be a "whole" 
or a "part".  It is difficult to think of an entire living organism, plant or animal, being unpatentable while a part of it is patentable.  As it is well known, this matter is subject to debate 
and review, taking into account the ethi cal and religious considerations involved. 
 18.  According to the Secretariat's report, the Table on page 50, the protection of undisclosed 
information does not appear to be addressed.  Clar ification is requested as to how the government 
protects against unfair commercial use of inform ation submitted for the marketing approval of 
pharmaceuticals. 
A) Is direct or indirect reliance on information submitted by another, or a resulting 
approval granted to another, permitted within th e five year protection period in Article 56 of the 
Law on the Protection of Intellectual Property Rights?  WT/TPR/M/150/Add.1 
 Page 25 
 
 
B) Please explain the legal framework by which Egypt protects test data submitted for 
marketing approval against unfair commercial us e for pharmaceutical and agricultural chemical 
products. 
 C) Please explain how the new IP Law men tioned in the Government Report will provide 
data protection consistent with TRIPS, and how th e Egyptian Ministry of Health will enforce this 
provision in order to make sure that marke ting approvals are not granted in a manner that 
constitutes unfair commercial use.    
D) Please describe the steps being taken to  ensure communication between the Patent 
Office and the Health Ministry in order to make certain that the health regulatory authority does 
not provide marketing authorization for unaut horized copies of products subject to patent 
protection, especially for patents being issued from the mailbox. 
Reply: 
This response concerns the manner in which Egypt’s new law on the protection of IPR 
ensures that undisclosed test or other data are pr otected, in compliance with Article 39.3 of the 
TRIPS Agreement.  The matter is addressed in article 56 of the law. 
 (a)   The term "undisclosed test or other data",  which is to be protected against unfair 
commercial use, embraces the undisclosed info rmation which (i) concern pharmaceutical or 
agricultural chemical products; (ii) result from  considerable effort; (iii) utilize new chemical 
entities; (iv) are submitted to the concerned authorities as a condition for approving the 
marketing of such products; and (v) are requi red for conducting the t ests necessary for the 
marketing approval. 
 (b)  The concerned authorities who receive su ch information are obliged to protect the 
information against disclosure and against unfair commercial use.  This obligation starts from the date the information is submitted and cont inues until the information no longer becomes 
secret
, or until the elapse of no more than five years , whichever occurs first.  In anticipation of 
the formal passing of the law, a Prime Mi nister's Decree (No. 2211 ) was issued (dated 
25 November, 2000) providing for the same obligation.  A formal notification of this commitment was also communicated (under Arti cle 63.2 of the TRIPS Agreement) to the 
Council for TRIPS, and is contained in docume nt IP/N/1/EGY/1/Add. 1, dated 8 May, 2000. 
 (c)  The exceptions provided for in articl e 56 of the new law are identical to those 
allowed in Article 39.3 of the TRIPS Agreeme nt namely; (i) where the disclosure by the 
concerned authorities is necessary to protect the public; or (ii) where the concerned authorities 
use the test information in testing or evaluating other similar products; this being a situation where protection of the public is an issue. 
(d)  Additionally, the following must be clarified: 
 (i)  The test and other data, which are required for the testing, examination and 
evaluation of the product, are handled by a responsible government authority, the National 
Organization for Drug Control and Research (NODCAR) which is an organ of the Ministry of Health and Population, where all operations ar e conducted in complete secrecy and guarded 
against any form of disclosure to outside bodies ex cept when required by law, such as by court 
order. 
 (ii)  A second applicant cannot, therefore, have  access to such test data as submitted by a 
first applicant.  It is only the concerned authority (in this case NODCAR) which can use the test WT/TPR/M/150/Add.1 
Page 26  
 
data for testing the product of the first applic ant or, where deemed necessary, to protect the 
public.   
 19.  Table III.11 of the Secretariat Report, at page 51, stated that Egyptian law provides only 
25 years of protection for collective works of "authors of performing arts."   
Please explain (1) whether the term "authors of  performing arts" refers to "authors" as 
that term is used in the Berne Convention or "perf ormers" as that term is used in TRIPS, and (2) 
how the 25-year term of protection complies with TRIPS Articles 9(1) and 14(5). 
Reply: 
Article 138 of the Egyptian IPR Law defi nes authors as follows: “The person who 
creates the work and also the perso n whose name is indicated on, or attributed to, the published 
work as being its author, unless proven otherwise is considered author of the work”.  
The author may publish his work anonymously or under a pseudonym, provided that 
the identity of the author can be established wi thout any doubt.  In case of doubt, the publisher 
or producer of the work, whether a natural person or legal entity, shall be the representative of 
the author in the exercise of his rights unt il the identity of the latter is disclosed.  
Accordingly, the author of performing art is covered in the above mentioned definition. 
 20.  Table III.11 of the Secretariat Report, at page 51, stated that "Personal licenses can be 
obtained for copying or translating, in return fo r fair indemnification to the author and observing 
certain conditions."   
 Please describe (1) the "certain conditions," (2 ) the circumstances under which this license 
is available, and (3) how this license is consistent with TRIPS. 
Reply: 
 Article 170 of the Egyptian IPR Law states that:  "Any person may request from the 
competent ministry to be granted a personal license  for the reproduction or translation, or both, 
of any work protected under this Law, withou t the authorization of the author and for the 
purposes indicated in the next paragraph, against equitable remuneration to the author or his 
successor, to the extent that such license is not in  contradiction with the normal exploitation of 
the work or does not unduly prejudice the legitimate interests of the author or the copyright holders.  
The license shall be granted, by a motivated decision, indicating the scope in time and 
place, for the purpose of meeting teaching  requirements of all kinds and levels.  
The Regulation prescribes the terms and condi tions for granting the license as follows: 
− The grant of such a license shall be for educational purposes. 
 
− The applicant for the license shall submit his request to the competent Ministry 
and fill an application that specifies his data.  
 
The following conditions shall be taken into consideration. 
− The author didn’t withdraw his work from circulation.   WT/TPR/M/150/Add.1 
 Page 27 
 
 
− The licensee shall not assign the righ ts of the license to a third party. 
− The name of the author and the title of the work shall be mentioned on any copy 
or translation of the work. 
− The license shall not prevent issuing another license to a third party. 
21.  Table III.11 of the Secretariat Report, at page 51, stated that "After publication, third 
parties may copy, photograph, perform, or publish all or part of a work, without causing a prejudice to 
the literary rights of the author, as long as they do not obtain any direct or indirect financial 
compensation."   
Please explain how this provision is consistent with TRIPS Article 13. 
Reply: 
Article 171 of the Egyptian Law is the concerned article.  The question also relates the 
provisions of this Article to the three-step test provided by Article 13 of the TRIPS Agreement.  Those 3 steps as provided by Article 13 of the TRIPS are as follows:  "Members shall confine 
limitations or exceptions to certain special  cases which do not conflict with a normal 
exploitation of the work and do not unreasonabl y prejudice the legitimate interests of the right 
holder." 
Article 171 of the Law states:  "Without prej udice to the moral rights of the author 
under this Law, the author may not, after the publication of the work, prevent third parties 
from carrying out any of the following acts: 
(1)  Perform the work in family context or  student gathering within an educational 
institution, to the extent that no direct or  indirect financial remuneration is obtained;" 
(2)  Make a single copy of the work for on e’s exclusive personal use, provided that such 
a copy shall not hamper the normal exploitation  of the work nor cause undue prejudice to the 
legitimate interests of the author or copyright holders; 
 However, the author or his successor may,  after the publication of the work, prevent 
third parties from carrying out any of the following acts without his authorization: 
− Reproduction or copying works of fine, applied or plastic arts, unless they were 
displayed in a public place, or works of architecture;  
− Reproduction or copying of all or a substantial part of the notes of a musical 
work;  
− Reproduction or copying of all or a subs tantial part of a database or computer 
program.  
(3)  Make, with the consent of the legitimate owner of the program, a single copy or an 
adaptation of a computer program, even if exce eding the extent necessary for the use of the 
program inasmuch as it remains within the limit s of the purpose for which consent was initially 
granted, for archiving purposes or to replace a lost , destroyed or invalid original copy.  In either 
case, the original or adapted copy shall be dest royed upon expiration of the property title.  The 
Regulations shall determine the terms and conditions of adaptation from the program.  WT/TPR/M/150/Add.1 
Page 28  
 
(4)  Make an analysis of the work, or ex cerpts or quotations there from, for the purpose 
of criticism, discussion or information.  
(5)  Reproduction from protected works for use in legal or administrative proceedings, 
inasmuch as required by such proceedings, provi ded that the source and the name of the author 
are mentioned.  
(6)  Reproduction of short extracts from  a work for teaching purposes, by way of 
illustration and explanation, in a written form or through an audio, visual or audiovisual recording, provided that such reproduction is within reasonable limits and does not go beyond 
the desired purpose, and provided that the name of the author and the title of the work are mentioned on each copy when ever possible and practical.  
(7)  Reproduction, if necessary for teaching  purposes in educational institutes, of an 
article, a short work or extrac ts there from, provided that:  
− Reproduction is made once or at different separate occasions;  
− The name of the author and the title of  the work are mentioned on each copy. 
(8)  Making a single copy of the work, thro ugh the intermediary of a documentation and 
archiving centre or through a bookshop not aiming at making any direct or indirect profit, and provided that:  
− Where the reproduced work is a published ar ticle, a short work or an extract of 
a work, the aim of reproduction is to satisfy the needs of a natural person, the copy will be used 
only for study or research purposes, and that a sing le copy is made or at different occasions; 
− Where the reproduction is made with the aim of preserving the original copy or, 
when necessary, replacing a lost, destroyed or ha s become invalid copy, and it was impossible to 
obtain such a substitute copy under reasonable conditions.   
(9) Ephemeral reproduction of a work where such reproduction is made in relay, during 
a digital transmission of the work or in the cour se of a process of reception of a digitally stored 
work, within the normal operation of th e device used by an authorized person.  
The three conditions for limitations and excep tions that are imposed on copyrights by 
virtue of Article 13 of the TRIPS, are being met in all of the above.  Some of the above paragraphs are even being explicitly provided by Articles 10 and 10bis of Berne Convention. 
 22.  Table III.11 of the Secretariat Report, at page 51, stated that "Any work not translated 
into Arabic within three years of its publication is public domain."   
Please explain how this provisio n is consistent with TRIPS. 
Reply: 
Article 148 of the Egyptian IPR Law states that:  "The protection of an author’s 
copyright and the translation rights of his work into another language shall lapse with regards 
to the translation of that work into the Arabic language, unless the author or the translator 
himself exercises this right directly or through a third party within three years of the date of 
first publication of the original or translated work."  WT/TPR/M/150/Add.1 
 Page 29 
 
 
The English version of the Law might imply a different meaning than that of the 
authentic Arabic version with respect to this specific Article.  This Article didn't mention 
anything concerning copyrighted works falling into the public domain, where the copyright 
holder no longer enjoys any commercial rights in his work.  The only right that lapses is the 
right of translation into Arabic, if the author doesn't  carry out the translation by himself or 
through a third party.  The duration of the term of  protection of the literary or artistic works as 
provided by Article 12 of the TRIPS would, thus, be enjoyable by the right holder for all other 
rights pertaining to his work.  The aim of this Article in the Law is to provide an opportunity 
for access to knowledge by enabling an Arabic translation of works.   
Measures Affecting Production and Trade - Intellectual Property Rights - Enforcement : 
23.  Paragraph 139 of the Secretariat Report, at  page 52, states that "Upon request of the right 
holder, the presiding judge of the competent court may order the seizure of infringing goods as well as the equipment used to produce them."   
Please explain whether, and under what circumsta nces, the judge also has the authority to 
order forfeiture and/or destruction of the infr inging goods and the equipment used to produce 
them. 
Reply: 
Article 181 authorizes the court to forfeit the infringing goods and the equipment used 
to produce them as follows: 
Without prejudice to any more severe sanction under any other law, shall be punishable 
by imprisonment for a period of not less than one month and by a fine of not less than 5,000 
pounds and not more than 10,000 pounds, or any of those sanctions, any person who commits 
any of the following acts:  
(1)  Selling, renting or putting in circulation under any form, a work, a sound recording 
or a broadcast program protected under this La w, without a prior written authorization from 
the author or the owner of the related right;  
(2)  Knowingly imitating, selling, offering fo r sale, circulation or rental, a work, a sound 
recording or a broadcast program;  
(3)  Knowingly imitating within the country, selling, offering for sale or circulation, 
renting or exporting to a foreign country a work, a sound recording or a broadcast program published in a foreign country;  
(4)  Dissemination through computer netw orks, Internet, information networks, 
communication networks and other means of technology of a work, an sound recording, a 
broadcast program or a performance protected  under this Law, without a prior written 
authorization from the author or the owner of the related right;  
(5)  Manufacturing, assembling or importing fo r the purpose of sale or rent any device, 
tool or implement especially designed or made to circumvent a technical protection means, such 
as encryption or the like, used by the author or the owner of the related right;  
(6)  Removing, neutralizing or disabling, in  bad faith, any technical protection device 
used by the author or the owner of the related rights;  WT/TPR/M/150/Add.1 
Page 30  
 
(7)  Infringing any of the moral or economic copyrights or related rights provided for in 
this Law.  
Sanctions shall be multiplied according to the number of infringed works, sound 
recordings, broadcast programs or performances. 
In case of repetition, the punishment shall consist of imprisonment for a period of not 
less than three months and a fine of not l ess than 10,000 pounds and not more than 50,000 
pounds.  
In all cases, the court shall order the confiscati on of the infringing copies, those obtained 
as a result of infringement, as well as equipment and implements used to commit the 
infringement . 
In case of conviction, the court may also order the closure of the establishment used by 
the convicted person to commit his infringement, fo r a period of not more than six months.  In 
case of repetition, the closure shall be mandato ry in the cases of infringement provided for 
under items (ii) and (iii) of this Article.  
The court shall order the publication of a su mmary of the judgment in one or more 
newspapers at the expense of the convicted person.  
 24.  Referring to paragraph 139  on page 52 of the Secretariat Report, please indicate whether 
Egyptian Customs may inspect goods imported into or  exported from free trad e zones such as Port 
Said, to determine whether they are in violation of IPR. 
Reply: 
Section 4 of Part III of the TRIPS Agreement covers special requirements related to 
border measures, where WTO Members are obliged to  apply them with respect to counterfeit 
trademarks and pirated copyright goods.  Th e elaboration of border measures has been 
concluded in full compliance with the TRIPS provisi ons, and they are expected to be issued as 
part of the Regulations for Importing and Rele ase of Goods in August 2005.  IPR enforcement 
at the borders are, thus, expected to be sati sfactory to Egypt's commitments under the TRIPS 
Agreement.  
EC: 
6. INTELLECTUAL PROPERTY RIGHTS : 
The EC has noted that Egypt has made significant progress within the area of Intellectual 
Property Rights.  Although efforts have been made, a number of aspects need strengthening or, at least, clarification.  For instance, the Egyptian Pate nt Office (EGYPO) recently stated that they will 
not be able to issue patents for medicines before  2008, which leaves pending applications vulnerable 
for infringements.  Also, Egypt is mainly a target country and, to a lesser extent, a source country of 
counterfeited goods, many of which are imported fro m China via Dubai often with fake European 
certificates of origin.  The absence of legislati on on customs enforcement against pirated goods is 
making things worse. 
− The EC should therefore like Egypt to clarify which steps are currently being taken in 
order to improve the situation? 
− Which are the steps being taken or envisag ed by the Government to address these 
mainly enforcement issues?  WT/TPR/M/150/Add.1 
 Page 31 
 
 
 The EC understands that Egypt is faced with some tough challenges such as smuggling of 
piratical imports and counterfeit merchandise.  
− Could Egypt inform about the steps taken or  future plans to tackle these issues?  
− Would Egypt share its views on how the rights of IP holder could be secured 
through the legal system? 
Reply: 
It is widely recognized that consideration of  patent applications requires a period of 
time for examination that ranges from 2 to 3 yea rs, the Egyptian Patent Office has established 
strategies to reduce patent granting period , since this process takes about 3 years. 
Pharmaceuticals compounds examination started in January 1st 2005.  It is expected that 
examination procedures could take  at least 2 years.  Certain actions have been adopted by the 
Egyptian Patent Office to reduce this period fo r instance, 11 pharmacists were hired an trained 
in 2004.  In early 2005 oth er 5 pharmacists and physicians were hired and had in-service 
training to cover 3000 pharmaceutical product applications.  The mailbox applications are 
being examined in packages according to serial numbers. 
By the virtue of article 42 of Law no 82/2002 tackling Intellectual Property Rights and 
the decree of Minister of Justice no 1227/2003, t echnical examiners have the Judicial Authority.  
They passed a specialized training in The Ministry  of Justice.  Some cases, of counterfeit and 
infringements, which are protected by IP Law, were already confiscated. 
In addition Section 4 of Part III of th e TRIPS Agreement covers special requirements 
related to border measures, where WTO Members are obliged to apply them with respect to 
counterfeit trademarks and pirated copyright goods .  The preparation of the border measures 
has been concluded in full compliance with the TR IPS provisions, and they are expected to be 
issued as part of the Regulations for Importing and Release of Goods.  IPR enforcement at the 
borders are, thus, expected to be satisfac tory to Egypt's commitments under the TRIPS 
Agreement.  
 Furthermore, in relation to paragraphs 131 and 135 of the report prepared by the WTO 
Secretariat and paragraph 61 of the report prepared by the government of Egypt: 
Could the Egyptian authorities indicate if they have already implemented the WTO 
Decision of 30 August 2003 on the Implementation of Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health in order to  allow its generic companies to manufacture 
pharmaceutical products under comp ulsory licence for export to co untries with public health 
problems? If not, could the Egyptian authorities indicate when they intend to do so?” 
Reply: 
Concerning the implementation of WTO decision of the 30
th of August 2003 on the 
implementation of paragraph 6 of the Doha Declaration: 
1.  Egypt Law 82 for 2002 on the protection of  IPR requires that th e compulsory license 
should be issued predominately for the supply of the domestic market (Article 24.1). 
2.  In order to allow generic companies to manufacture pharmaceu tical products under 
compulsory license for export to countries with public health problems, there is a need to 
introduce an amendment, as appropriate, in the law. WT/TPR/M/150/Add.1 
Page 32  
 
3.  This matter is currently under careful consid eration and is expected to be resolved in 
the very near future. 
SWITZERLAND
: 
(vi) Intellectual Property Rights : 
Protection of undisclosed test data - Para. 129 and Table III. 11.  Article 56 of the new 
Egyptian IPR legislation provides protection to undi sclosed information that involved a considerable 
effort, submitted on request to the competent authorities for marketing of pharmaceutical or agrochemical products, which utilise new chemical components necessary for the tests undertaken to 
allow such marketing.  According to paragraph 2 of Article 56, protection of such undisclosed 
information/test data shall last five years or until it is no longer confidential, whichever comes first.   
Please confirm that during this five yea r term of protection, the undisclosed 
information/test data of the first applicant may no t be relied upon for the marketing approval of 
products of subsequent applicants.  
Reply: 
This response concerns the manner in which Egypt’s new law on the protection of IPR 
ensures that undisclosed test or other data are pr otected, in compliance with Article 39.3 of the 
TRIPS Agreement.  The matter is addressed in article 56of the law. 
 (a)  The term "undisclosed test or other da ta", which is to be protected against unfair 
commercial use, embraces the undisclosed info rmation which (i) concern pharmaceutical or 
agricultural chemical products; (ii) result from  considerable effort; (iii) utilize new chemical 
entities; (iv) are submitted to the concerned authorities as a condition for approving the marketing of such products; and (v) are requi red for conducting the t ests necessary for the 
marketing approval. 
 (b)  The concerned authorities which receive such information are obliged to protect the 
information against disclosure and against unfair commercial use.  This obligation starts from 
the date the information is submitted and cont inues until the information no longer becomes 
secret
, or until the elapse of no more than five years , whichever occurs first.  In anticipation of 
the formal passing of the law, a Prime Mi nister's Decree (No. 2211 ) was issued (dated 
25 November, 2000) providing for the same obligation.  A formal notification of this 
commitment was also communicated (under Arti cle 63.2 of the TRIPS Agreement) to the 
Council for TRIPS, and is contained in docume nt IP/N/1/EGY/1/Add. 1, dated 8 May, 2000. 
 (c)  The exceptions provided for in articl e 56 of the new law are identical to those 
allowed in Article 39.3 of the TRIPS Agreemen t, namely: (i) where the disclosure by the 
concerned authorities is necessary to protect the public; or (ii) where the concerned authorities 
use the test information in testing or evaluating other similar products; this being a situation 
where protection of the public is an issue. 
(d)  Additionally, the following must be clarified: (i)  The test and other data, which are required for the testing, examination and 
evaluation of the product, are handled by a responsible government authority, the National 
Organization for Drug Control and Research (NODCAR) which is an organ of the Ministry of 
Health and Population, where all operations ar e conducted in complete secrecy and guarded 
against any form of disclosure to outside bodies ex cept when required by law, such as by court 
order.  WT/TPR/M/150/Add.1 
 Page 33 
 
 
(ii)  A second applicant cannot, therefore, have  access to such test data as submitted by a 
first applicant.  It is only the concerned authority (in this case NODCAR) which can use the test data for testing the product of the first applic ant or, where deemed necessary, to protect the 
public.  
CANADA
: 
Part III. Trade Policies by Measure, (4) Measur es affecting Production and Trade, (vi) Intellectual 
property rights, Table III.11, page 50: 
24.  Canada notes that “compulsory licences may be granted to exploit an invention if the 
utilization (…) will support the national effort in  a significant sector for economic, social and 
technological development”.  Can Egypt elaborate on how this measure is consistent with Article 
31 of the TRIPS Agreement? 
Reply: 
Article 23 of the Egyptian IPR Law set outs  the cases, where com pulsory licenses could 
be issued by the Egyptian government with respect  to patents.  The patent office, after the 
approval of a ministerial committee formed by  a Prime Ministerial Decree shall grant 
compulsory licences to exploit an invention an d this committee shall determine the financial 
rights of the patent owner while granti ng these licences in the following cases. 
If the concerned minister considered, on a ca se-by-case basis, that the utilization of the 
patent shall achieve the following:  (1 )  public non-commercial use, such as  preserving national 
security, public  health, food security, and environmental safety;  (2)  resolution of national  
emergencies or other circumstances of extreme urgency.  
In line with the TRIPS Agreement, compulso ry licenses granted under items (1) and (2) 
above may be  granted without the need for prior negotiation with the patent owner, or the 
expiration of a certain negotiation period with him or her, or offering reasonable terms for 
obtaining his or her consent for exploitation. 
Support for national efforts in vital sectors for the economic, social and technological 
development, without unreasonable prejudice to the rights of the patent  owner and taking into 
account the legitimate interests of third parties." 
Such a case is legitimate to constitute a ground for issuing compulsory licenses in 
accordance with paragraph 1 of Article 8 of th e TRIPS agreement that states:  "1. Members 
may, in formulating or amending their laws and regulations, adopt measures necessary to protect health and nutrition, and to promote the public interest in sectors of vital importance to 
their socio- economic and technological deve lopment, provided that such measures are 
consistent with the provisions of this Agreement". 
Under items 1 and 3 above, the patent owner shall be notified immediately regarding the 
compulsory license decree, and under item 2 above within a reasonable period.  
Members' right in resorting to measures provided for by paragraph 1 of Article 8, in the 
process of formulating or amending their laws  and regulations, is being restricted by a 
condition that they are consistent with the provi sions of this Agreement.  This was reflected by 
the Law, taking into account the provisions of Article 30 of the TRIPS Agreement that provide 
exceptions to rights conferred by the patent as follows:  "Members may provide limited exceptions to exclusive rights conferred by the patent, provided  that such exceptions do not 
unreasonably conflict with a normal exploitati on of the patent and do not unreasonably WT/TPR/M/150/Add.1 
Page 34  
 
prejudice the legitimate interests of the patent ow ner, taking account of the legitimate interests 
of third parties." 
The Egyptian legislators, thus, in this particular case of issuing a compulsory licence, 
have made use of a right offered by Article 8 but was balanced by restrictions provided in 
Article 30.  With respect to whether this provisi on in the Egyptian Law complies with Article 31 
of the TRIPS Agreement, the question could be rev erted to the issue of compliance to the whole 
Agreement.  This provision in the Law has been  drafted both in conformity with the TRIPS 
provisions, and taking into account the practicabilit y of implementing Article 8.  In this regard, 
issuing a compulsory licence would be a very practi cal way to make use of Article 8.  And that's 
exactly the same practical approach adopted by the Egyptian IPR Law, at the same time, legal 
compliance to the TRIPS is also provided.  More over, the Egyptian legislators wished to tight 
this case with conditions that would grant the pate nt owner his full right in his patented subject 
matter.  That's why the balanced language of Article 30 of the TRIPS Agreement was being 
adopted by the Law. 
Part III. Trade Policies by Measure, (4) Measur es affecting Production and Trade, (vi) Intellectual 
property rights, Table III.11, page 51: 
25.  As regards Copyright law, Canada understands  that “after publication, third parties 
may copy, photograph, perform, or publish all or part of the work, without causing a prejudice to 
the literary rights of the author, as long as they do not obtain any direct or indirect financial 
compensation”.  Canada would like Egypt to ela borate on how this disposition complies with the 
three step test set out in section 13 of the TRIPS Agreement.  
Reply: 
Article 171 of the Egyptian Law is the concerned article.  The question also relates the 
provisions of this Article to the three step test provided by Article 13 of the TRIPS Agreement.  
Those 3 steps as provided by Article 13 of the TRIPS are as follows:  "Members shall confine limitations or exceptions to certain special  cases which do not conflict with a normal 
exploitation of the work and do not unreasonabl y prejudice the legitimate interests of the right 
holder." 
Article 171 of the Law states:  "Without prej udice to the moral rights of the author 
under this Law, the author may not, after the publication of the work, prevent third parties 
from carrying out any of the following acts:  (1)  Perform the work in family context or student 
gathering within an educational institution, to the extent that no direct or indirect financial 
remuneration is obtained;  (2)  Make a single co py of the work for one’s exclusive personal use, 
provided that such a copy shall not hamper th e normal exploitation of the work nor cause 
undue prejudice to the legitimate interests of the author or copyright holders. 
However, the author or his successor may,  after the publication of the work, prevent 
third parties from carrying out any of the following acts without his authorization: 
− Reproduction or copying works of fine, applied or plastic arts, unless they were 
displayed in a public place, or works of architecture;  
− Reproduction or copying of all or a substantial part of the notes of a musical 
work;  
− Reproduction or copying of all or a subs tantial part of a database or computer 
program.   WT/TPR/M/150/Add.1 
 Page 35 
 
 
 (3)  Make, with the consent of the legitimate  owner of the program, a single copy or an 
adaptation of a computer program, even if exce eding the extent necessary for the use of the 
program inasmuch as it remains within the limit s of the purpose for which consent was initially 
granted, for archiving purposes or to replace a lost , destroyed or invalid original copy.  In either 
case, the original or adapted copy shall be dest royed upon expiration of the property title.  The 
Regulations shall determine the terms and conditions of adaptation from the program.  
 (4)  Make an analysis of the work, or ex cerpts or quotations therefrom, for the purpose 
of criticism, discussion or information.  
 (5)  Reproduction from protected works for use in legal or administrative proceedings, 
inasmuch as required by such proceedings, provi ded that the source and the name of the author 
are mentioned.  
(6)  Reproduction of short extracts from  a work for teaching purposes, by way of 
illustration and explanation, in a written form or through an audio, visual or audiovisual recording, provided that such reproduction is within reasonable limits and does not go beyond 
the desired purpose, and provided that the name of the author and the title of the work are 
mentioned on each copy when ever possible and practical.  
(7)  Reproduction, if necessary for teaching  purposes in educational institutes, of an 
article, a short work or extrac ts there from, provided that:  
− Reproduction is made once or at different separate occasions;  
− The name of the author and the title of  the work are mentioned on each copy.  
 (8)  Making a single copy of the work, th rough the intermediary of a documentation and 
archiving centre or through a bookshop not aiming at making any direct or indirect profit, and 
provided that: 
 a.  Where the reproduced work is a published article, a short work or an extract of a 
work, the aim of reproduction is to satisfy the n eeds of a natural person, the copy will be used 
only for study or research purposes, and that a sing le copy is made or at different occasions; 
 b.  Where the reproduction is made with th e aim of preserving the original copy or, 
when necessary, replacing a lost, destroyed or ha s become invalid copy, and it was impossible to 
obtain such a substitute copy under reasonable conditions.  
 (9)  Ephemeral reproduction of a work wh ere such reproduction is made in relay, 
during a digital transmission of the work or in th e course of a process of reception of a digitally 
stored work, within the normal operation of  the device used by an authorized person. 
The three conditions for limitations and excep tions that are imposed on copyrights by 
virtue of Article 13 of the TRIPS Agreement are being met in all of the above.  Some of the above paragraphs are even being explicitly provided by Articles 10 and 10bis of Berne 
Convention. 
 26.  Canada also notes that according to Eg yptian Copyright law, “any work not translated 
into Arabic within three years of its publication is  public domain”.  Cana da would like Egypt to 
elaborate on how this disposition complies with Article 12 of the TRIPS Agreement. WT/TPR/M/150/Add.1 
Page 36  
 
Reply: 
Article 148 of the Egyptian IPR Law states that:  "The protection of an author’s 
copyright and the translation rights of his work into another language shall lapse with regards 
to the translation of that work into the Arabic language, unless the author or the translator himself exercises this right directly or through a third party within three years of the date of 
first publication of the original or translated work." 
The English version of the Law might imply a different meaning than that of the 
authentic Arabic version with respect to this specific Article.  This Article didn't mention 
anything concerning copyrighted works falling into the public domain, where the copyright 
holder no longer enjoys any commercial rights in his work.  The only right that lapses is the 
right of translation into Arabic, if the author doesn't carry out the translation by himself or 
through a third party.  The duration of the term of  protection of the literary or artistic works as 
provided by Article 12 of the TRIPS would, thus, be enjoyable by the right holder for al other 
rights pertaining to his work.  The aim of this Article in the Law is to provide an opportunity 
for access to knowledge by enabling an Arabic translation of works.   
Part III. Trade Policies by Measure, (4) Measur es affecting Production and Trade, (vi) Intellectual 
property rights, Paragraph 128: 
 27.  Canada understands that Egypt “is in the process of joining the International Union 
for the Protection of New Varieties of Plants (U POV)”.  When does Egypt expect to ratify this 
treaty? 
Reply: 
Egypt is currently in the process of acceding to  the UPOV, and this is expected to be 
finalized before the 31
st of May 2008. 
Part III. Trade Policies by Measure, (4) Measur es affecting Production and Trade, (vi) Intellectual 
property rights, Paragraph 132: 
 28.  Canada understands that, in Egypt, trade  marks may contain geographical indications 
if production of the good under consideration is co nsistently undertaken by the applicant in the 
area referred to.  With respect to  applications submitted by foreign applicants, how is the test which 
determines whether production of the good under co nsideration is consistently undertaken by the 
applicant in the area referred to in the geograph ical indication applied?  Are there any other 
provisions in Egyptian law which regulate the rel ationship between trade marks and geographical 
indications? 
Reply: 
Article 104 of the Egyptian Law requires that "The protection in the country of origin is 
required to protect such indications".  The only  way to meet such a requirement is to provide 
the Commercial Registry Department of the Ministry of Supply and Internal Trade with a certificate proving the existence of that protection in the country of origin.  Articles 67, 110, 112, 
114 and 115 of the Egyptian IPR Law regulate the relationship between trade marks and 
geographical indications.  
 29.  Canada also notes that “a trade mark ca n be registered with the Commercial Registry 
Department of the Ministry of Supply and Internal Trade” and that “there is no previous use requirement to register a trade mark”.  Can no n-registered trade marks be protected under unfair 
competition laws / regulations?  WT/TPR/M/150/Add.1 
 Page 37 
 
 
Reply: 
Article 65 of the Law combines between the registration of a trademark and its use, 
whereas:  "The person who has registered a trademark and who has made use of it for a period of five years as of the date of its registration,  shall be deemed the owner of such a trademark, 
unless precedence of use by a third party is proven.  A prior user of the mark may, within the 
said period of five years, challenge the validity of its registration.  The registration of a mark 
may, however, be challenged at any time, wh ere the registration is made in bad faith." 
In addition, Article 68 of the Law grants protection to marks that are well known in 
Egypt or globally known, even if such a ma rks are not registered in Egypt as follows:  
− "The owner of a well-known trademark, worldwide and in Egypt, shall have the 
right to enjoy the protection conferred by this Law even if such a mark is not registered in 
Egypt.  
− The Trade Registry Department shall, ex officio , reject any application to 
register any mark which is identical with a well-known mark and is intended for products 
which are identical with those of the well-known  mark, unless the application is submitted by 
the owner of the well-known mark. 
− The preceding provision shall apply to applications intended for products which 
are not identical with those of the well-known mark, where the well-known mark is registered in 
a country member of the World Trade Organizat ion and in Egypt, and where the use of the 
mark in relation to those non-identical products  is meant to lead people to believe that a 
connection exists between the owner of the well- known mark and those products, and that such 
a use may be prejudicial to the interests of the owner of the well-known mark."  
Part III. Trade Policies by Measure, (4) Measur es affecting Production and Trade, (vi) Intellectual 
property rights, Paragraph 133: 
30.  Paragraph 133 states that “copyright pr otection under the new Intellectual Property 
law covers literary rights in addition to financial ri ghts.”  Canada would ap preciate receiving more 
detail on the “financial rights” referred to. 
Reply: 
Article 147 of the Egyptian IPR Law states:  "The author and his universal successor 
shall have the exclusive right to authorize or prevent any form of exploitation of his work, 
particularly through reproduction, broadcasting,  re-broadcasting, public performance, public 
communication, translation, adaptation, rental, lending or making the work available to the 
public in any manner, including through computers, internet, information networks, communication networks and other means.  
The exclusive right for computer program re ntals shall only apply to the main rental 
enterprise; it shall not apply to renting audiovis ual works inasmuch as the circulation of such 
copies does not cause material prejudice to the owner of the exclusive right in question.  
The author and his successor shall also have the right to control any disposal of the 
original copy of the work, and shall consequently  be entitled to a certain percentage of not more 
than 10% of the proceedings resulting from every disposal of that copy.  The right to prevent 
third parties from importing, using, selling or distributing his protected work, shall lapse where 
the copyright owner undertakes to exploit or market  his work in any state or authorize a third 
party to do so." WT/TPR/M/150/Add.1 
Page 38  
 
Article 149 states that “The author shall have the right to transfer to a third party all or 
some of his economic rights stated in this Law.  
Such a transfer shall be certified in writing and contain an explicit and detailed 
indication of each right to be transferred wi th the extent and purpose of transfer and the 
duration and place of exploitation.  
The author shall be the owner of all economic rights other than what he has explicitly 
assigned.  Authorization by the author to exploit any of the economic rights relating to a work shall not mean authorization to exploit other economic rights relating to the same work.  
Without prejudice to the moral rights of the au thor provided for in this Law, the author 
shall refrain from any act that would hamper the exploitation of the rights disposed of”.  
Article 150 states that the author shall be enti tled to such remunera tion, in cash or in 
kind, as he considers fair for the transfer of one or more of the economic rights of his work to a 
third party, on the basis of a percentage of the revenue made as a result of exploitation, a lump sum or a combination of both.  
Article 151 states that where it appears that the agreement referred to in Article 150 is 
prejudicial to the author’s rights or became so due to circumstances that arose after the 
agreement, the author or his successor may request  the court of first instance to reconsider the 
value of remuneration agreed upon, without prejudice to the rights and interests of the assignee.  
Article 152 states that any disposal by the author of the sole original copy of his work, 
regardless of its form, shall not be considered as an assignment of his economic rights.  
Nevertheless, the assignee may not be required to enable the author to reproduce, copy or 
display the original copy, unless otherwise agreed.  
Article 153 states that any disposal by the author of his future intellectual production 
shall be considered as null and void.  
Article 154 states that the  economic rights of the authors may be seized with respect to 
works that are published or made available for circ ulation.  Such works may not be seized if the 
author dies before their publication, unless it has been proven that he intended to publish the 
work before his death.   
Part III. Trade Policies by Measure, (4) Measur es affecting Production and Trade, (vi) Intellectual 
property rights, Paragraph 138: 
31.  Canada notes that “the [Egyptian] Intellectual Property Law establishes that violations 
of intellectual property rights are subject to fines or imprisonment.”  Canada would like to clarify 
whether intellectual property right violations are subject only to penal or criminal remedies, or 
whether the Law provides for civil remedies as well. 
Reply: 
In addition to penal or criminal remedies, there certainly are civil remedies that are 
provided for in Egypt’s IPR Law (No.82/2002).  Among these, are the civil remedies associated 
with, for example, Patents (including compulsory  licensing) and are provided for in Article 33 to 
Article 37, they have corresponding provisions in the other areas of IPRs covered in the Law.  WT/TPR/M/150/Add.1 
 Page 39 
 
 
Civil remedies are also available in situations  of IPRs violations under the civil code 
Article 163 addressing torts and the remedies that mu st be applied to correct or compensate for 
damages incurred. 
Additionally, Egypt’s Commerce Code (Law no. 17/1999) provides (in article 66) for 
civil remedies in cased of violations of IPRs, particularly in the areas patent -protected 
inventions, trade marks and trade names,  and trade/ industrial / business secrets. 
Part III. Trade Policies by Measure, (4) Measures  affecting Production and rade, (vi) Intellectual 
property rights, Paragraph 139: 
32.  Canada notes that “in the case of presumed copyright infringement, the judge may 
prevent the publication or performance of the wor k”.  Canada would like to know whether Courts 
may prevent infringement of other rights such as reproduction.  
Reply:  The judge is authorized by the Egyptian IPR Law to prevent infringement of the right of 
reproduction.  Article 179 of the Egyptian IPR Law states that:  "In case of infringement of any 
right provided for in this Book, the president of the competent court dealing with the merits of 
the case, upon a request made by an interested part y, may order, by petition, one or more of the 
following conservatory measures:  (…) disconti nuance of publication, exhibition, reproduction 
or manufacturing of the work, the performa nce, the sound recording or the broadcasting 
program." 
JAPAN
: 
ENABLING  POLICIES  ENHANCING  FOREIGN  TRADE  PERFORMANCE : 
(2) ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS LAW : 
(Pg. 12, para. 58). 
According to the Report by Egypt, piracy rat es in software are already around 50%, down 
from over 70% five or six years ago. 
3. Please provide information on th e specific basis for the estimation . 
Reply: 
This estimation was based on the latest ava ilable data of the year 2003; it is also 
supported by submissions of representatives of the industry. 
(Pg. 12, para. 62).  According to the Report by Egypt, regulations  on IPR enforcement at the border are currently 
being drafted. 
 4.  Please provide detailed information on  both the current IPR enforcement system and 
new regulations at the border, including the scope of rights and the procedures for rights holders to 
apply for an injunction for importation. WT/TPR/M/150/Add.1 
Page 40  
 
 5.  Please provide information on the results  of enforcement at the border per each right 
such as trademarks, copyright, patents, industrial  designs and plant breeder’s rights and per each 
destination country for imports and exports. 
Replies on (4-5): 
With regard to trademarks and geographical i ndications the law in article 115 (1, 2 & 3) 
stipulates that the president of the court having jurisdiction in respect of the original dispute and, at the request of any interested party, is en titled to give an order in writing to apply the 
precautionary measures he deems necessary regarding in particular:  
(1)  Substantiating the act of infringing the right covered by protection; 
(2)  Making an assessment and detailed descript ion of what had been the object of the 
offence including the goods imported from abroad  following their entry and being subjected the 
seizure; and  
(3)  Seizure may, as the case may be, be made by Customs Authorities before releasing 
such goods. 
Article 179 relating to the protection of copyright and related rights does not preclude 
taking such measures.  Likewise, this may include any other field of intellectual property rights 
if infringement has been committed in the form of imitated or falsified goods. 
As for the possibility of taking such  measure by Customs Authorities, ex officio , i.e. 
without the request of the interested party, and d espite the fact that such act does not constitute 
an obligation pursuant to Article 50.2 of the TRIPS Agreement, the Egyptian Customs 
Regulations allow such authorities to open parcel s for inspection purposes, if there is doubt that 
such parcels contain any infringing goods, without the presence of the concerned party 
(Article 51 of Customs Regulations no. 66/1963). 
Section 4 of Part III of the TRIPS Agreement covers special requirements related to 
border measures, where WTO Members are obliged to  apply them with respect to counterfeit 
trademarks and pirated copyright goods.  Th e elaboration of the border measures has been 
concluded in full compliance with the TRIPS provisi ons, and they are expected to be issued as 
part of the Regulations for Importing and Rele ase of Goods in August 2005.  Results of IPR 
enforcement at the borders are, thus, expected to  be satisfactory to Egypt's level of compliance 
with the TRIPS Agreement.  
vi) Intellectual property rights
: 
(Pg. 52, para. 138). 
8.  Please provide information on the results of  IPR enforcement subject to fines or 
imprisonment in the past three years, including how many violations have been subject to fines or 
imprisonment, which rights have been infrin ged, and which penalties have been imposed. 
Reply: 
The database for IPR cases filed before Egyptian  courts per each of the IPR forms, as 
well as, the sentences issued per each, is curren tly under preparation.  This database is being 
carried out as part of the overall process of re- adap tation that the Ministry of Justice adopts, to 
ensure that IPR is being fully protected in Egypt in the light of the provisions of the TRIPS Agreement.  Once being accomplished, that da tabase would be made available for the public.  WT/TPR/M/150/Add.1 
 Page 41 
 
 
TURKEY : 
VI) Intellectual Property Rights : 
According to the IPR section of the Secretariat’s Report, Egypt is a member of most of the 
treaties on intellectual property and it has been continuously trying to improve it’s IPR legal 
framework.  However, some of the Turkish elect ronic and home appliances companies are facing 
serious IPRs violations in Egypt.  According to our  Trade Mission in Cairo, some of the companies in 
Egypt are illegally using Turkish industrial desi gn and brand names for some house hold appliances 
and electronic products by having them produced in the Far East to be marketed in Egypt.  Although 
our authorities informed the Egyptian Ministry of Foreign Trade about these violations, we have not yet received any response from Egyptian Authorities.  
In this regard, can Egyptian Delegation kind ly provide information on the issue of IPR 
enforcement? 
Reply: 
Law number 82 /2002 provides for the enforcement of all intellectual property rights, 
for the industrial designs the Law provides for th e right of any interested party to file a case 
with the Administrative Tribunal with a view to  revoke an unlawful registration of an industrial 
design, it also states that without prejudice to any more severe punishment stipulated under any other law, shall be punishable by a fine of not less than 4,000 pounds and not more than 10,000 pounds any person who: (1) imitates a protected industrial design registered according to the 
provisions of this Law; (2) knowingly, manufactur es, sells, offers for sale, acquires for trade or 
circulation, products bearing imitated industria l designs; (3) unlawfully affixes on products, 
advertisements, trademarks, certain implements or the like, indications that may lead to believe 
that such a person has registered an industrial design.  In case of repetition, the punishment 
shall be imprisonment for a period of not less th an one month and a fine of not less than 8,000 
pounds and not more than 20,000 pounds.  In all ca ses, the court shall order the confiscation of 
the incriminated industrial design, the infringe d products and the implements used in the 
infringement.  The convicting order shall be published in one or more newspapers at the 
expense of the convicted party.  Also the law mentioned that the president of the competent 
court considering the merits of the case may, upo n a request of any interested party, and by an 
order issued on the basis of a petition, ord er one or more appropriate conservatory measures, 
and in particular:  (1) Establish the infringement of a protected right.  (2) Draw up an exhaustive inventory and detailed description of  the infringed products and the implements 
used or may have been used in the infringement.  (3) Order the seizure of the articles stated in 
item (2).  In all cases, the president of the court may order the assignment of one or more experts to assist the bailiff in charge of the execution; and may order the requesting party to 
provide an appropriate security.  The requesting pa rty shall submit the merits of the case to the 
competent court, within 15 days of issuing the order, failing which such order shall cease to 
have effect. 
The incriminated person may, within 30 days from the date of the issue or notification of 
the order, as may be the case, appeal [the order] to the president [of the court] who issued such an order.  The president of the court may confirm or revoke the order, totally or partly.  Finally 
The Minister of Justice shall, in agreement with  the competent minister, appoint persons with 
judiciary powers for the implementation of the provisions of this Chapter . WT/TPR/M/150/Add.1 
Page 42  
 
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN, AND MATSU
: 
(vi) Intellectual property rights : 
(a) Legal and institutional framework : 
(Pg. 51, para. 130). 
Paragraph 130 states that “The competence of th e contact point is laid down in Ministerial 
Decree 99/2000 and includes cooperation with the Cu stoms Administration with respect to border 
measures...”.  
We would appreciate knowing: (1)  How the Customs Administration enforces border 
protection on trademarks and copyright, and  (2)  If a shipment of counterfeit or pirated goods has 
been identified, whether the Egypt Customs Admi nistration could provide the rights owner with 
information on the shipper, exporter and importer,  and on the quantity of counterfeit or pirated 
goods?  
And, if the answer is “yes”, could Egypt plea se provide us with the relevant  regulations? 
Replies on (1) & (2): 
With regard to trademarks and geographical i ndications the law in article 115 (1, 2 & 3) 
stipulates that the president of the court having jurisdiction in respect of the original dispute 
and, at the request of any interested party, is en titled to give an order in writing to apply the 
precautionary measures he deems necessary regarding in particular:  
(1)  Substantiating the act of infringing the right covered by protection;  (2)  Making an assessment and detailed descript ion of what had been the object of the 
offence including the goods imported from abroad  following their entry and being subjected the 
seizure; and  
(3)  Seizure may, as the case may be, be made by Customs Authorities before releasing 
such goods. 
Article 179 relating to the protection of copyright and related rights does not preclude 
taking such measures.  Likewise, this may include any other field of intellectual property rights if infringement has been committed in the form of imitated or falsified goods. 
As for the possibility of taking such  measure by Customs Authorities, ex officio , i.e. 
without the request of the interested party, and d espite the fact that such act does not constitute 
an obligation pursuant to Article 50.2 of the TRIPS Agreement, the Egyptian Customs 
Regulations allow such authorities to open parcel s for inspection purposes, if there is doubt that 
such parcels contain any infringing goods, withou t the presence of the concerned party (Article 
51 of Customs Regulations no. 66/1963). 
Section 4 of Part III of the TRIPS Agreement covers special requirements related to 
border measures, where WTO Members are obliged to  apply them with respect to counterfeit 
trademarks and pirated copyright goods.  Th e elaboration of the border measures has been 
concluded in full compliance with the TRIPS provisi ons, and they are expected to be issued as 
part of the Regulations for Importing and Rele ase of Goods in August 2005.  Results of IPR 
enforcement at the borders are, t hus, expected to be satisfactory to Egypt's commitment under 
the TRIPS Agreement.   WT/TPR/M/150/Add.1 
 Page 43 
 
 
Privatization and State owned enterprises : 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN, AND MATSU : 
(iv) State-owned enterprises and privatization : 
(Pgs. 47-48, paras. 120, 122 & 124). 
We would appreciate some further clarification of the following items in the Report by the 
Secretariat: 
Paragraph 120 mentions that the General Au thority of Supply Commodities (GASC) is 
responsible for the importation of wheat, sugar and edible oils.  Could Egypt please provide further 
details of the procedures used for deciding on th e import quality or price, to illustrate that the 
decision-making is purely on commercial basis? 
According to paragraph 122, the Egyptian author ities indicate that foreign investors played 
an important role in the privatization programme ; they were involved in 11of the 29 sales to 
majority inventors.  Are there any limit ations that apply to foreign inventors? 
Reply:  No limitations apply to foreign inv estors in the privatization process.  
Paragraph 124 states that the programme envisages the privatization of 111 of the 
remaining 178 state-owned enterprises (excluding banks) during the period 2004-06.  Could Egypt please explain the reason why banks are excluded from the state-owned enterprises to be 
privatized? 
Reply: 
Banks are not excluded from the privatization program.  They are simply not quoted in 
the privatization figure stated above.  The Gov ernment has already announced that one of the 
four commercial public sector banks will be privatiz ed this year, which is Bank of Alexandria.  
An international advisor for the sale of the bank has already been selected and is undertaking 
its work.  Moreover, the Government is active ly pursuing a program to sell the state owned 
share in joint venture banks.  Five banks have seen their public shares sold  to the private sector 
and three are underway.   
USA
: 
Measures Affecting Production and Trade - St ate-owned enterprises and privatization : 
 14.  We appreciate the summary of Egypt’s state-owned sector and privatization plans in 
paragraphs 120-125 on pages 47- 48 of the Secretariat Report. 
 Please provide more details about privatiz ation initiatives involving the banking sector, 
Telecom Egypt, and other state-owned enterprises. 
Reply: 
 As for the privatization initiatives in the banking sector it should be noted that one of 
the four state owned banks (Bank of Alexa ndria) is currently underway for being fully 
privatized, Citi Group is responsible for the sale transaction.  Telecommunication Sector is still WT/TPR/M/150/Add.1 
Page 44  
 
considered as a strategic sector as it provides a public utility for citizens and therefore it is not 
currently included in the privatization program. 
 Other state-owned enterprises which are included under law 201 of 1991, are subject to 
privatization according to a declared program that incorporates different companies of different sectors. 
CANADA
: 
Report by Egyptian Government (WT/TPR/G/150) : 
V. Enabling Policies Enhancing Foreign Trade P erformance, (4) Momentum in Privatization 
Programme, paragraph 67:  
46.  The Report states that the Ministry of Investment and Public Enterprises has 
announced the first batch of companies and asset s for privatization during the 2004-2007 period.  
What are the bases for privatizing these enterprises and what criteria are used by the Ministry with 
respect to tourism enterprises? What types of tour ism enterprises are covered by privatization and 
what types will remain public enterprises? 
Reply: 
The base of privatization has two dimensions; first, the Ministry of Investment (MOI) is 
open to receive an expression of interest from a potential investor on any of the companies in its 
portfolio, regardless of the performance of this company (losing/profitable).  Once this expression of interest is received, the Holding co mpany starts the bidding process and we take it 
from there.  Second, in the absence of an  expression of interest, the MOI select certain 
companies primarily on the bases of profitability. 
In this regard, we insure that there is no specific sector is subject to restrictions on 
eventual privatization, the timing of the offering depends on preparatory work required. 
Profitable companies which are potentially accepted in the stock market are partially 
sold through public offering of 10 to 20 % of tota l transaction, the remaining stake is then sold 
to an anchor investor, this is applied to state owned enterprises and joint venture companies as 
well.  Non-profitable companies are also targeted for privatization with a flexible and attractive 
package of incentives applied to increase the pr ospects of reaching a successful transaction. 
Regarding the plans on Tourism enterprises, the strategy is still the same as in 
dimension one stated above.  However, the only difference is that within the two companies 
we have left in the MOI portfolio of compan ies, namely; GOTH and Misr Travel we have 
certain assets in various forms; operating hotels, cruise ships, vacant lands, restaurants and 
other tourism assets where some of them are having interested buyers.  In the case we sell 
these assets, we might be faced with a situation where the remaining assets might not be sufficient to keep the company in a profitable position.  Accordingly, the thoughtful process 
currently in place is; float part of the company in the stock exchange, or perform in depth analysis on the  future of these companies after the sale of some assets.  WT/TPR/M/150/Add.1 
 Page 45 
 
 
Contingency trade remedies : 
U.S.A : 
Measures Directly Affecting Imports - Contingency Trade Remedies - Safeguards measures : 
3.  According to paragraph 53 on page 37 of th e Secretariat Report, Egypt reported that it has 
imposed final safeguard measures on powder ed milk beginning in April 2001.   
Has this measure expired?  What action has Egypt’s domestic industry undertaken to 
adjust to new market conditions? 
Reply: 
In response, Egypt would kindly like to conf irm that the final safeguard measures on 
powder milk imposed in April 2005 expired in April 2004. 
Concerning actions that Egypt’s domestic industry has undertaken to adjust to new 
market conditions, Egypt would like to emphasi ze that the Egyptian domestic industry has 
implemented the following actions:  
− Production and Cost Reduction Development Plan. 
− Importing artificial pollens to produce high-milking bovine races. 
− Drawing small breeders' attention to the necessity of using artificial 
insemination instead of natural pollination to produce high-milking bovine races. 
− Drawing small farmers' attention to th e necessity of using machinery and 
modern equipment to promote production and reduce costs. 
− Disseminating medical brochures issued  by medical agencies and companies 
producing medications and pollens in or der to protect animals against diseases. 
− Advising breeders about using high-nutritive low cost feed to increase milk 
productivity and reduce costs. 
− Holding seminars and training courses for workers in the field of milk 
production to be aware of the most modern products in the area of feeding and veterinary services as well as the use of modern milking technology. 
In addition, the industry has implemented adjustment policies in order to increase 
production and reduce costs and thus to increase profit margins. 
INDONESIA
: 
(Pgs. 36-37. paras. 49-53). 
3.  Paragraph 49, 53 and table III.6 of Secret ariat Report notes that imposition of contingency 
trade remedy on product originated from Indonesia is extremely high and looks beyond its objective 
sought to remove injury.  Indonesia would be very much appreciate if Egypt could consider to make 
early review and or lower its duty for remedy purposes, especially to products common electric 
filament lamps and common fluorescent lamps originated from Indonesia.  WT/TPR/M/150/Add.1 
Page 46  
 
Please comment.  
Reply: 
It is Egypt’s policy to impose anti-dumping measures on the basis of the dumping 
margins established in its investigations. 
Egypt notes that under the current WTO ADA there is no requirement for a member to 
apply an anti-dumping duty that is less than the established margin of dumping, regardless of 
whether the measure is applied on imports fr om developing country members or not.   
Egypt notes that the comment alleged by Indon esia to be attributed to the Secretariat in 
its Report that “imposition of contingency trad e remedy on product originated from Indonesia 
is extremely high and looks beyond the objective sought to remove injury” is not to be found in 
the Secretariat report.  Egypt notes that the S ecretariat Report referred to by Indonesia merely 
enumerates the anti-dumping measures take n by Egypt without making any comments 
whatsoever in this regard.  Egypt would therefo re like to ask Indonesia in what paper did the 
Secretariat allegedly make the comment quoted above?   
In response to the request by Indonesia to make an ‘early review’ of the measures 
imposed by Egypt on common electric fila ment lamps and common fluorescent lamps 
originating from Indonesia.   
With respect to common fluorescent lamps,  Egypt would like to draw Indonesia’s 
attention to the fact that the safeguard measures  imposed on the importat ion of these products 
expired on 27/2/2002 and therefore asks how can su ch a review be made in these circumstances?  
Concerning common electric filament lamps,  Egypt would like to emphasize that a 
request to review anti-dumping measures in force is addressed by Article 11.2. of the WTO 
ADA which outlines the procedure and the steps that should be taken to initiate a review of such measures, in particular, it requires that a request should be presented by any of the  interested parties in this regard together with positive  evidence to substantiate such a request. 
HONG KONG, CHINA
: 
Anti-dumping and Countervailing Measures(WT/TPR/S/150, pg. 35, para. 46) : 
We note that under Egypt’s system, review of final anti-dumping (AD) and countervailing 
(CV) measures must be initiated at least six mont hs before the end of the five-year period and that 
such review must be completed within one year, during which time the final measures remain in 
force.  In other words, final measures may be in place for five and a half year.  We would like to 
know if and how Egypt can ensure compliance with Article 11.3 of the AD Agreement and 
Article 21.3 of the Agreement on Subsidies and CV Measures, which require any AD/CV final 
duties to be terminated not later than five years  from its imposition unless the authorities determine 
that the expiry of the duty would be likel y to lead to continuation or recurrence of 
dumping/subsidization and injury. 
Reply: 
In response, Egypt kindly refers Hong Kong, Chin a to the last sentence of Article 11.3 of 
the ADA and the last sentence of Article 21.3 of the ASCM.  Egypt considers that these provisions allow for measures to remain in force pe nding the outcome of  such a ‘sunset review’.  WT/TPR/M/150/Add.1 
 Page 47 
 
 
Trade in Services : 
1. General : 
CANADA : 
Part IV. Trade Policies by Sector, (7) Services,  (i) Overview, Table IV.8, Summary of Egypt's 
Specific Commitments in Individual Service Sectors :  
Comment : The legend used to indicate the nature of commitments is misleading.  When a Member 
has scheduled "None" in its schedule, this indicates it is fully bound.  In the table, it appears that 
Egypt is not fully bound in any of the modes and sub-sectors of tourism and travel-related services, 
when in fact it is in many modes and sub-sectors.  We suggest that the legend be modified as follows:  
− Fully shaded box - means Member h as scheduled "None" in its offer. 
− Partially shaded box - means Member has made commitments but with some 
limitations. 
− Unshaded box - means Member has made  no commitment or has inscribed 
"Unbound" in its offer. 
Therefore, in Egypt's case and with respect to  tourism, all its empty (unshaded) boxes should 
be replaced by black (fully shaded) boxes.  Where the report has indicated , we suggest these be 
replaced by the empty box as Egypt has inscribed "Unbound" in its services offer. 
JAPAN : 
(i) Overview : 
(Pgs. 63 to 66, paras. 52 to 59). 
9. Please indicate the specific measures by the Government of Egyp t for the liberalization 
of the following services, in particular, including th e current status of the improvement of market 
access and national treatment. 
(a) Accounting, auditing and bookkeeping services. 
(b) Computer and related services. (c) Construction and related engineering servi ces, including the current status of the 
requirement for the joint venture and th e limitation on foreign participation. 
(d) Distribution services, in particular in the areas of commission agents’ services, 
wholesale trade services, retailing services and franchising. 
(e) Maritime transport services including supporting services for maritime transport such 
as storage and warehouse services and customs clearance services. 
Reply: 
(a) Egypt submitted its revised conditional offer to the WTO in July 2005.  The offer 
includes commitments in new sectors (computer services, air transport services, and courier WT/TPR/M/150/Add.1 
Page 48  
 
services), in addition to the commitments in ne w subsectors of the construction services sector, 
and the elimination of some limitations in the insurance sector. 
(b) The sectors covered in the offer are ba sed on Egypt’s national interest and is 
compatible with its status as a developing country. 
(Pgs. 63 to 66, paras. 52 to 59). 
As for trade in services, one of the important f actors for the movement of natural persons is 
the visa and immigration system. 
11. In this regard, please answer the following questions: 
(a) What are the procedures for a skilled worker to enter into Egypt and to start his/her job, 
including the procedures for work permission, app lication for a visa and immigration control? 
Reply: 
Foreign employee who seeks to work in Egypt,  or the company employing him, should 
apply for a license to the competent authority, attached with the application the following 
documents: 
1. What indicates his/her payment of the specified fees. 
2. Acceptance from the employer. 
3. Professional license in some required cases. 4. Acceptance from the competent authority in  the Egyptian Presidency, if the foreigner 
is a political refugee. 
Procedures are as follow: 1. Visa for investor
: 
Service Beneficiaries : 
The investment and the free zones projects : 
This visa is provided to investors in ord er to fulfill company establishment procedures, 
and its duration is limited between one or two mo nths, it is also provided in case of project 
establishment and its registration in the Commercial  Registery in order to enable the investors 
to manage his business.  
The Required Documents : 
In case of the fulfilment of the establishment procedures: 1. A request directed to the Head of the sector of the investment assembly. 2. A copy of the passport of the visa applicant. 3. A copy of the company contract certified from the legal affairs.  WT/TPR/M/150/Add.1 
 Page 49 
 
 
In case of the project establishment and it s registration in the commercial registry: 
1. A request directed to the Head of the sector of the investment  assembly. 2. A copy of the passport of the visa applicant. 3. A certificate of any new data of the applicant. 4. A copy of the official document of the commercial registry. 
Documents Presentment
: 
These documents are submitted to the Invest ments Services Assembly Sector and then 
this sector will submit a visa recommendation th at is directed to Tahrir Compound Passport. 
Services Delivery Duration : 
The requisites that are presented to the sect or before 12:00 pm will be accomplished in 
the next day at 13:00 pm. 
The requisites that are presented to the sector after 12:00 pm will be accomplished 
within 48 hours.   
Services : 
4. Attracting foreign employees (entran ce visa) to work inside the country.  
Services Beneficiaries : 
Free zones and investment project s in which foreign labors work.  
The Required Document : 
1. A request presented to the head of the Investment Services Assembly that includes: 
(The name of the employees/ nationality/ po sition/ the project address in details/passport 
number/the date of issuance/ the expiry date). 
2. A copy of the employee passport.  
3. If the visa applicant is an expert, th e following conditions should be considered:  
A. For the Eastern Asian Countries : 
An experience certificate according the required  qualifications indicated in the requisite 
should be exist. 
B. For the rest of the countries : 
There is no need for experience certificate. 4. If the applicant is an engineer, a certif icate certified from the engineering syndicates 
should exist. 
5. A letter from the competent sector about the executive position of the projects. WT/TPR/M/150/Add.1 
Page 50  
 
6. Employee position should be taken into consideration in addition to the executive 
position of the project.  
In case of the projects under implementation , the technical positions are required in 
order to support the project to be accomplished.
 
In case of the projects that have started their activities, positions should support the 
production process. 
Document Presentment : 
The documents should be presented to the in vestment services assembly sector to submit 
entrance visa  recommendation to be directed to the Immigration and Labor Force Ministry. 
Services delivery duration : 
1. The requisites that are presented to the sector before 12:00 pm will be accomplished 
in the next day at 13:00pm. 
2. The requisites that are presented to th e sector after 12:00 pm will be accomplished 
within 48 hours. 
Services : 
5. licensing recommendation i ssuance for foreign business. 
The services include only attracting forei gn employees from outside the country. 
Services Beneficiaries : 
Free zones and investment projects in which foreign employees work. The Required Documents
: 
A request from the company directed to the head of the sector includes the following: 
1. Foreigner employee name/nationality/passport number/position.  
2. The original passport in order to be informed about and a copy of it. 3. A copy of application number 2 (insurance for the current year). 4. A document to prove that the services h ave been paid for the free zones projects. 
5. 5 copies for the security information SAMPLE. 
6. A certificate proves that there is no disease (Aids) submitted by a government 
hospital. 
7. A letter from the competent authorities about the executive situation of the 
project. 
Free zones projects that their requisites th rough territory that the projects pursued.  WT/TPR/M/150/Add.1 
 Page 51 
 
 
Document presentment : 
Documents are presented to the Investment  Services Assembly Sector in order to 
issuance a recommendation of the licensing pro cedures submission process directed to work 
permit office in the Investment Services A ssembly in the authority building, and anther 
recommendation to grant a temporary residency fo r 6 months from the passport Office in the 
Assembly till finishing the security information  results. 
Services delivery duration : 
The requisites that are presented to the sect or before 12:00 pm will be accomplished the 
next day at 13:00 pm. 
The requisites that are presented after 12:00 pm will be accomplished within 48 hours. 
(b) How is the skill of a worker entering into Eg ypt reviewed in the pro cedure raised in (a)? 
Reply: 
Foreign experts should provide the following:  
1. Documents reflecting the expert qualificat ions and his educational and practitioner 
experience notarized from the consulate of the Republic of Egypt in the foreigner country and 
from the Egyptian Ministry of Foreign Affairs. 
2. A letter from the work he is applying to , indicating the extent to which the foreign 
expert is needed, his detailed profession, the required period for his stay on work, the name of his Egyptian assistant and his qualifications a nd experience, and to be committed to submit a 
report about the possibility of substituting the E gyptian assistant instead of the foreign expert. 
(c) In each procedure raised in (a) and (b ), is the reason for refusal notified to the 
applicant? 
Reply: 
The foreigner, or the company employing him/h er, who want to challenge the refusal of 
his license could apply to the competent authority within a maximum period of a month from the refusal date, indicating the reasons for hi s challenge and supporting them by documents. 
And the competent authority should investigate and reach a decision within 15 days.  
 Conclusion
: 
Egyptian Law allows companies to have foreign employees up to 10% of their work 
force.  The procedure is as follows:  
The company needs to apply for a visa for the employee.  This is submitted to the 
Investment Authority, including details of the employee, photocopy of his/her passport, relevant 
certificate of expertise for skilled labour (in case of engineers a certificate from the syndicate).  
Upon submission, the Investment Authority checks that the application is relevant with the state 
of completion or operation of the company’s investment.  A letter is issued within 48 hours for the Egyptian embassy to issue a visa.  In case of security objection, or if the status of the company does not require the requested employees, the applicant is informed.  No permissions 
are granted for drivers and domestic employees.  WT/TPR/M/150/Add.1 
Page 52  
 
Upon the arrival of the foreign employee, the original passport is submitted, together 
with a health certificate, and social insurance contribution letter.  Within 48 hours of submission of documents, a one year visa is issued, and is renewable.  
SWITZERLAND
: 
(7) Services : 
(i) Overview : 
Para. 55 states that the Labor Code Law 137/1981  limits the number of foreigners in a 
company to 10% of total personnel.  However, this  limitation has been removed in the initial offer.  
Can Egypt indicate whether the text in the initial offer already corresponds to a revised 
regulation or whether, for the implementation of its initial offer, national law would need to be 
revised?  
Reply: 
The text in the initial & revised offer does not imply the elimination of the 10% 
limitation. 
2. Financial Services : 
2.1. Insurance : 
HONG KONG, CHINA : 
4.  We note that there are a number of limitati ons on the foreign supply of insurance services, 
including that foreign insurance companies may not sell their services through representative offices; 
Egyptian residents are not allowed to buy non-lif e insurance abroad; and insurance companies may 
not hold shares in other insurance companies engagi ng in other activities.  However, it seems that 
these limitations have not been inscribed  in Egypt's existing GATS schedule.   
We would therefore be grateful if Egypt would advise on the compatibility of these 
limitations with its GATS commitments. 
Reply: 
As for representative offices; by definition th ey don't engage in any insurance services as 
their activities are limited mainly to research, pub lic relations and marketing.  In addition our 
schedules reflects this fact (see commi tments related to Liaison offices). 
As for the limitation on non-life insuran ce abroad it will be reconsidered by the 
competent authorities. 
As for the measure which states that Insura nce companies are not permitted to hold 
shares in other insurance companies transacting th e same activities in Egypt; it is considered as 
a domestic regulation and since it is applied in a nondiscriminatory manner it should not be 
reflected in the Egyptian schedule. 
5.  We understand that up to 100% foreign ow nership of Egyptian insurance companies is 
allowed and that the requirement for direct insurance companies to cede 30% of non-life and 50% of 
life insurance business to the Egyptian Reinsurance Company has been eliminated since 2003.  We  WT/TPR/M/150/Add.1 
 Page 53 
 
 
however note that the de facto regime has not been fully reflected in Egypt's initial offer, in which 
foreign equity limitation and legal cession requirement still remain.   
We would therefore like to know whether Egyp t would consider reflecting its more liberal 
de facto regime in its revised offer, so as  to increase the predictability of the regime. 
Reply: 
In the Egyptian Revised offer the de fact o regime is already reflected as follows: 
a)  Shareholding in the capital of Egypti an insurance companies is subject to no 
limitations, but the ownership of 10% or more is subject to the approval by the Prime Minister.  
It is applied in a non- discriminatory manner whether for foreign or Egyptian shareholders.  
b)  Concerning the mandatory cession for Egypt Reinsurance Company, the Egyptian 
Insurance Supervisory Authority EISA has enac ted the decree 105/1999 for gradual elimination 
during a period of five years (1999-2003).  Now the mandatory cessi ons are as follows: 
Life insurance 50% after retention on risk premium basis. 10% of what exceeds retention limits in relat ion to branches of Fire, Oil, Engineering, 
Aviation and Marine. 
Mandatory cessions for all other branches are totally eliminated.  
USA
: 
Services - Financial Services - Insurance : 
26.  The Secretariat Report notes in paragraph 71 on pages 67-68 that "all investment in the 
insurance sub-sector is subject to an economic need s test."  It is the USG understanding that the 
economic needs test was removed for life,  health and personal accident business.  
Please clarify which insurance sub-sectors are still subject to an economic needs test. 
Reply: 
There are no sub-sectors still subject to Economic Needs Test  
27.  In the same paragraph, the Secretariat Re port advised that, “pursuant to the Insurance, 
Law, Egyptian residents are not allowed to buy non-life insurance abroad.”  It is the USG 
understanding that full commitments were made to allow the consumption abroad of non-life 
insurance products according to Egypt’s GATS schedule.   
Please explain how the Insurance Law is cons istent with Egypt’s GATS commitments.    
Reply: 
As for the limitation on non-life insuran ce abroad, <according to our legislation> 
movable property can be inured outside the local market without discrimination. 
EC: 
As regards insurance services, the Report fro m the Secretariat indicates that the Egyptian 
Government has taken steps to liberalise the market since 1999.  WT/TPR/M/150/Add.1 
Page 54  
 
Could Egypt indicate whether there are plans to  continue to do so and specify to what 
extent the sector could be further liberalised? 
Reply: 
Egypt is planning to liberalize the public sector insurance and reinsurance 
companies and there are serious steps towards liberalization. 
Could Egypt clarify whether direct branching in insurance is permitted (inside and outside 
free zones)? 
Reply: 
Direct branching in insurance is permitted only in free zones. The Secretariat Report states that all investment  in the insurance sub-sector to an ENT, and 
those shareholders of more than 10% are subject to approval by the Prime Minister.  
Could Egypt explain the criteria that the auth orities apply in the context, and whether they 
are applied in a non-discriminatory manner? 
Reply: 
Investments in insurance sector are not subject to an ENT.  
ENT is already removed from the Egyptian schedule of commitments. Shareholding in the capital of Egyptian insura nce companies is subject to no limitations, 
but the ownership of 10% or more is subject to the approval by the Prime Minister.  It is applied in a non- discriminatory manner whet her for foreign or Egyptian shareholders. 
Could Egypt confirm the accuracy of the Sec retariat Report concerning the fact that in 
2003 the government eliminated mandatory cessions to Egypt Reinsurance Company? 
Reply: 
Concerning the mandatory cession for Egypt Reinsurance Company, the Egyptian 
Insurance S upervisory Authority EISA has enacted th e decree 105 / 1999 for gradual elimination 
during a period of five years (1999-2003).  No w the mandatory cessions are as follows: 
a.  Life insurance 50% after retention on risk premium basis. b.  10% of what exceeds retention limits in relation to branches of Fire, Oil, 
Engineering, Aviation and Marine. 
c.  Mandatory cessions for all oth er branches are totally eliminated. 
2.2. Banking
: 
CANADA : 
Part VI. Trade Policies by Sector, (7) Services, (ii) Financial Services, Paragraph 63 : 
33.  Paragraph 4 states that the licensing pr ocedures, which are th e responsibility of the 
Central Bank of Egypt, have been suspended with a view to restructuring Egypt’s financial sector.   WT/TPR/M/150/Add.1 
 Page 55 
 
 
When does Egypt expect to co mplete the restructuring of its financial sector and again 
allow applications for the establishment of commercial presence of foreign banks? 
Reply: 
Egypt is in the process of restructuring its banking sector as the CBE has embarked on 
a complete structural and financial reform progr am, coupled with consolidations to create a 
strong, efficient and well supervised banking sector sustaining future domestic growth and 
competing regionally. 
The strategy adopted to achieve the ob jectives of the reform program are:  
− Financial & organisational restructurin g of public sector banks: a program 
already initiated within the public sector banks. 
− Addressing the issue of non-performing l oans:  A plan has already been laid out 
on the national level; to facilitate the handling of this complex issue. 
− Initially privatising one of the public sector banks:  Bank of Alexandria was 
named as the first public sector bank to be off ered for sale.  Citigroup was chosen to act as 
manger for the transaction. 
− Sale of public sector shares in joint venture banks :  Shares owned by public 
sector banks in joint ventures, are all offered for sale to local, regional or international banking 
firms. 
− Encouraging merger and acquisition activiti es :  With the aim of creating larger 
and stronger banking operations, transactions al ready have been done the like of Barcalys Bank 
(Egypt), Societe Generale (Egypt), Calyon and others. 
− Upgrading and strengthening the "Banking Supervision Unit" at the CBE. 
− Establishing a "Banking Reform Unit" at the CBE to oversee this objective.  
Concerning the licensing procedures for estab lishment of commercial presences of foreign 
banks it might be considered in the future. 
EC: 
The Report from the Secretariat describes the evolving situation of the banking sector with 
regard to the establishment of foreign banks in Egypt.  
Could Egypt indicate whether foreign banks are allowed to deal in local currency? 
Reply: 
According to Law no. 882003 of the "Central Bank, Banking Sector and Monetary 
System" article no. (36); foreign banks operating in Egypt, are allowed to do business in local 
currency. 
The Report from the Secretariat further states that licensing procedures for the establishment 
of foreign n banks have been suspended, “with a view to restructuring Egypt’s financial sector”.  WT/TPR/M/150/Add.1 
Page 56  
 
Could Egypt elaborate on this in general (objectives and timeline on the reform), and in 
particular indicate whether existing economic need s test on the establishment of foreign branches 
could be lifted? 
Reply: 
The Central Bank of Egypt CBE has embarked on a complete structural and financial 
reform program, coupled with consolidations to  create a strong, efficient and well supervised 
banking sector sustaining future domest ic growth and competing regionally. 
The strategy adopted to achieve the ob jectives of the reform program are:  
− Financial & organisational restructurin g of public sector banks: a program 
already initiated within the public sector banks. 
− Addressing the issue of non-performing l oans:  A plan has already been laid out 
on the national level; to facilitate the handling of this complex issue.  
− Initially privatising one of the public sector banks:  Bank of Alexandria was 
named as the first public sector bank to be off ered for sale.  Citigroup was chosen to act as 
manger for the transaction.  
− Sale of public sector shares in joint venture banks:  Shares owned by public 
sector banks in joint ventures, are all offered for sale to local, regional or international banking 
firms. 
− Encouraging merger and acquisition activiti es:  With the aim of creating larger 
and stronger banking operations, transactions al ready have been done the like of Barcalys Bank 
(Egypt), Societe Generale (Egypt), Calyon and others.  
− Upgrading and strengthening the "Banking Supervision Unit" at the CBE. 
− Establishing a "Banking Reform Unit" at the CBE to oversee this objective.  
3. Telecommunications and Postal Services
: 
USA : 
Services - Telecommunications : 
28.  Referring to paragraph 82, page  70 of the Secretariat Report,  
Please clarify whether or not Telecom Egypt will be able to meet the December 31, 2005 
deadline to relinquish its monopoly status in the telecommunications sector. 
Reply: 
Yes. 
29.  In the same paragraph, the Secretariat indi cates that the “exclusive rights of Telecom 
Egypt to provide cross-border transmission shoul d terminate no later than 31 December 2005”.   
Is Egypt in a position to meet this deadline?  In addition, what will be the process for 
determining the number of cross-border licenses th at will be issued subsequent to this date?  WT/TPR/M/150/Add.1 
 Page 57 
 
 
Reply: 
Egypt has awarded licenses for VOIP serv ices for cooperate customer and have 
announced guidelines for fulfil liberalization of the sector. 
Exact process shall be announced  by NTRA within fall of 2005. 
CANADA : 
Part IV. Trade Policies by Sector, (7) Serv ices, (iii) Telecommunications, Paragraph 80 : 
34.  The Secretariat Report states that the Na tional Telecommunications Regulatory Authority 
(NTRA) is Egypt’s semi-autonomous institutio n under the Ministry of Communications and 
Information Technology, with overall responsibility re garding the regulations of telecommunications.  
Could Egypt explain the semi-autonomous status of the NTRA and confirm whether or not 
it is consistent and complies with the principles rel ating to the independence of the regulator as 
found in the Reference Paper? 
Reply: 
Law No. 10, 2003 "Telecommunications Regulation Law" establishes NTRA as a 
national Authority to administer the telecommunication sector. 
The general guidelines for NTRA scope of work include:   
− Transparency;  
− Universal service; 
− Open competition; and 
− Protection of user rights.  
Ensure that telecommunication servic es reach all areas of the republic. 
Protect national security and higher interests of the state. Ensure optimum use of the spectrum and the maximization of the revenues derived 
from its use. 
Ensure compliance with the provisions of  prevailing agreements and resolutions of 
international and regional organizations. 
Monitor processes of technical and eco nomic efficiency programs for all 
telecommunications services.  
The aim of NTRA is to guarantee the high quality of the telecommunication services at 
reasonable prices for all Egyptian citizens taking  into consideration national interests while 
enabling sector growth and encouraging na tional and international investments. 
Also, the head of the (NTRA) is the Minister of Telecommunications and the authority is 
fully dependent in taking regulatory decisions in the sector.  WT/TPR/M/150/Add.1 
Page 58  
 
Part IV. Trade Policies by Sector, (7) Serv ices, (iii) Telecommunications, Paragraph 82
: 
35.  The Secretariat Report mentions that Te lecom Egypt is still a state-owned monopoly and 
that the Government has announced its intentions to offer up to 44% of the company to a strategic investor when market conditions are suitable.  The Report also notes that the Telecommunications 
Law stipulates that Telecom Egypt will relinquish  its monopoly status as domestic and international 
fixed-line operator by December 31, 2005.  
Could Egypt elaborate on the status of Telecom Egypt, its plans regarding the privatisation 
of the state-owned monopoly and the type of market conditions deemed to be suitable for relinquishing shares of the company? 
Reply: 
All information about the privatisation of Telecom Egypt is available on:  
<www.mcit.gov.eg>. 
The Ministry of Telecommunications and Information Technology is currently in the 
process of selecting a financial consultant for the Initial Public Offering of Telecom Egypt. 
Part IV. Trade Policies by Sector, (7) Serv ices, (iii) Telecommunications, Paragraph 85
: 
36.  Canada is pleased to read in the Secretar iat Report that Egypt has adopted, in April 2004, 
an Electronic Signature Law that regulates commercia l operations through the use of the Internet.  
Canada believes that a direct linkage between the use of the Internet, e-commerce and computer and related services exists, and notes that Egypt has not  made any commitments in this sector under the 
GATS.  
In view of the interaction between the tel ecoms and computer and related services sectors 
and the enabling role they play in relation to ma ny other areas of economic activity, has Egypt 
considered making GATS commitments for comput er and related services in the current phase of 
GATS negotiations? 
Reply: 
Yes, Egypt has already made new commitm ents for computer and related services 
within the Egyptian revised services offer. 
Part IV, Trade Policies by Sector, (7) Services, (iii) Telecommunication and postal services, 
Paragraph 86 : 
37.  Canada notes with interest that privat e sector and foreign company participation is 
permitted with respect to express postal service activiti es.  Given this situation, Canada would like to 
enquire whether Egypt is considering including co mmitments in its revised General Agreement on 
Trade in Services offer that reflect the current leve l of liberalization that exists for courier/express 
services in its economy. 
Could Egypt elaborate if it is subject to a uni versal service obligation with respect to postal 
services and how it fulfils this obligation? Specifi cally, does Egypt have a reserved area of mail 
services that only the ENPO may provide and, if so, what items/activities are included in that 
reserved area?  WT/TPR/M/150/Add.1 
 Page 59 
 
 
Reply: 
Egypt has already made new commitments in postal sector within the Egyptian revised 
services offer. 
JAPAN : 
(Pg. 70, para. 82). 
According to the Report by the Secretariat,  the Telecommunications Law stipulates that 
Telecom Egypt will relinquish its monopoly status as domestic and international fixed-line operator 
by 31 December 2005. 
12. After the relinquishment of the monopol y of Telecom Egypt, will the new facilities-
based suppliers other than Telecom Egypt be able to provide wholesale telecommunications 
services to non-facilities-based suppliers in the dom estic and international fixed-line market? 
Reply: 
After 31 December 2005, the Egyptian Telecommunications market will be liberalized, 
and  any service provider can proved Telecommuni cation services after obtaining the required 
license from the NTRA. 
EC: 
The Report from the Secretariat indicates that, as regards mobile telecommunications, a third 
licence was granted and then withdrawn due to non-use by the operator.  
Could Egypt indicate when it is planning to re-offer this licence? 
Reply: 
Regarding the third mobile phone licence, Egypt is in the process to launch an 
international auction for the serv ices providers to establish the third mobile network in Egypt to 
provide the second and the third generation of the mobile services. 
The auction will be launched within two mont hs, and the services supplier to be decided 
in the first quarter of 2006, and the services to be launched by the second quarter of 2007.  All 
info about the Third licence is available on:  <www.ntra.gov.eg>. 
Concerning the Information and Communication Technology Trust Fund, which is 
referred to in the Report from the Secretariat, coul d Egypt indicate how it is actually financed and 
whether possible funding requirements are applied on a non-discriminatory basis? 
Reply: 
All info about the trust fund is available on <http://www.ictfund.org.eg/>. This includes existing projects and management style. 
The fund is basically an open mechanism allo wing all interested stakeholders in ICT for 
D to present their project proposals to a st eering committee formed of UNDP, MCIT and the 
Egyptian ministry of foreign affairs. WT/TPR/M/150/Add.1 
Page 60  
 
The process of selection is transparent and allows for NGOs, private sector and civil 
society in general the chance to apply on a no n discriminatory basis as long as the project 
proves a relevance to developmental concerns. 
The fund is also open to funding from diffe rent interested parties and is subject to 
UNDP rules and regulations.    
Currently the fund is being funded by the Italian cooperation through the debt swap 
mechanism, with a contribution from MCIT.  Details of existing projects and funding are 
available on the web site.  
4. Transport
: 
CANADA : 
Part IV. Trade Policies by Sector, (7) Services, (iv) Transport, Paragraph 87 :  
38. In light of recent increases in traffic a nd revenues in marine transport through the Suez 
Canal, as well as recent increases in f ees charged by the Suez Canal Authority, does the Egyptian 
government project that traffic through the Suez Ca nal will continue to increase over the short and 
long-term?  
Part IV. Trade Policies by Sector, (7) Services, (iv) Transport, (b) Air Transport : 
39. Do Egyptian laws permit the importation f ree of restrictions and exempt from custom 
duties, excise taxes, inspection fees and other nati onal duties and charges printed ticket stock, air 
waybills and any printed material which bears th e insignia of the airline and usual publicity 
material distributed without charge by the airline? 
40. Do Egyptian laws permit sales of transporta tion in freely convertible currencies of other 
countries? 
Reply: 
Egypt is a member of the Chicago Agreement for civil aviation.  With regard to the 
customs exemptions, it is granted on the princi ple of reciprocity.  The publicity materials are 
subject to a reduced rate of 12%.  
41. Can funds earned by a foreign airline in Egypt be transferred abroad or only to the 
airlines home country?  
Reply: 
Yes, funds earned by a foreign airline in Egypt can be transferred abroad.  There are no 
restrictions. 
42. Does Egypt have a market exchange rate for the conversion and remittance of funds by 
foreign airlines?  
Reply: 
Foreign airlines remitting funds abroad use the market exchange rate.  WT/TPR/M/150/Add.1 
 Page 61 
 
 
JAPAN : 
10. Please indicate the specific views of the Government of Egypt on the model schedule on 
maritime transport services. 
Reply: 
Regarding the maritime transport services,  the competent authority is currently 
undertaking a comprehensive study for the sector  and based upon the results of the study, the 
decision to improve current WTO commitments will be taken. 
EC: 
Maritime transport : 
Could Egypt provide detailed information on liberalisation steps taken in the area of 
maritime transport? 
Reply: 
Liberalization steps taken in maritime transport: 
A- Ports : 
Egypt had adopted land lord concept 3 years ago it is gradually applied in commercial 
ports ( Main ) either in operating dedicated terminals like: 
− Oil terminal in Alexandria (Med.). 
− Container terminal in port said east & Alexandria. 
− Fish basin in Sokhna port (red Sea). 
Or in running complete small commercial port like: 
− El Tor port in Red Sea. 
− LNG port Edka in Med. Sea. 
Or in complete private tourist port (BOT) like: 
− Port GHALEP in Red Sea. 
− Port TABA in Akaba Gulf. 
B- Ships : 
All offshore units, vessels are privately owned one Egyptian private company (Mara 
dive) is already No. 29 in the business worldwide. 
Shipping companies are either completely pri vate, one of them (El Salam) is already 
No. 1 world wide in passenger business or shore holders, or public and private owned (National 
Shipping Company). WT/TPR/M/150/Add.1 
Page 62  
 
All fishing boats are private owned. 
C- Services
: 
All stevedoring companies are private (except 2). All shipping agencies (213) are private (except 4). All forward agencies are private one. 
The class societies are international, or private. 
One shareholder IT Company. Ship shindlres are private. Banking is still public owned but some pr ivate companies are under construction. 
Shipyard is public owned or shareholders, but  no regulation prevent private sector from 
establishing shipyards. 
In particular, could Egypt indicate whether, and if so where and to what extent, foreign 
operators are discriminated with resp ect to port and maritime fees?  
Reply: 
The Ministry Of Transport is running deep and thoroughly study to eliminate very few 
remaining privileges granted to some kind of Egyptian ships in view of GATT agreement and 
other privileges granted to some types of sh ips like container carriers or passengers ship. 
5. Tourism : 
CANADA : 
Part IV. Trade Policies by Sector, (7) Services, (v) Tourism, Paragraph 99 : 
43.  The Secretariat Report states that the Tourism Development Authority (TDA) monitors 
individual tourism projects and ensures th at they meet minimum standards.  
What are the minimum standards?   
Part IV. Trade Policies by Sector, (7) Services, (v) Tourism, Paragraph 100 :  
44.  According to the Secretariat Report, the Ministry of Tourism rates all tourist 
establishments and approves prices of services.  
How are tourist establishments being rated and on what criteria?  
45.  With respect to the pricing of services, What are the rules or regulations governing 
pricing, and in which decree is this reflected - Decree 181/1973,  covering conditions and 
procedures of licensing hotel and tourist establishments; Ministerial Decree 343/1974,  on 
implementation of certain provisions of Law 1/ 1973 on hotel and tourist establishments; or in 
another piece of legislation?  WT/TPR/M/150/Add.1 
 Page 63 
 
 
Is the approval of prices required for all servi ces, or specific types of services only?  
EC: 
The Report from the Secretariat states that tourism is by far Egypt’s most important source of 
foreign exchange and an importa nt generator of employment.  
Could Egypt indicate whether, and if so ho w, it intends to further develop this sector 
notably with respect to the need for attracting foreign investors?  
Reply: 
Definitely Egypt , is exerting its efforts to a ttract more foreign investor as an increase in 
foreign investment will contribute to improve gr owth rates and more jo b opportunities and this 
could be achieved through the following: 
First: the ministry of tourism is working no w on the development of the electronic side 
(portal), through which foreign investors would be  cable of being provided with the investment 
opportunities in Egypt.  
Second, the ministry of tourism is now promoting a new product in order to capture 
more foreign investors called "reside ntial tourism".  At a very reasonable price, foreigner could 
own a vacation home in Egypt and enjoy it s climate, diversity of attractions. 
Third: suggested business opportunities for foreign investors have taken place:  
First: Red Sea area : 
1) Safaga El Kosar tourist sector: 
• Suggested area for investment: area s ranges between million and 10 million 
meter square, this sector is characterized by being close to Hurgada city  (100 Km from hurghada airport, 60 Km  from safags port) and this sector has no institution.  Its 
depth does not exceed 600 Km between the Coast and Road, it is also placed close to diving 
region and the back area for sites su ggested for safari tourist regions. 
• Suggested usage: hotels, tourist villages,  golf courses, conferences, and medical 
tourist.  
2) Wozor Tourist Center: 
• Suggested areas for investment: areas range between million and 5 million meter 
square. 
• Suggested usage: hotels, tourist village, a nd the back area has regions for safari 
tourist. 
3) El Nabagh El Saghir tourist center: 
• Suggested areas for investment: almost million square available for development   
that was already assigned for so me business companies, however ; this specialization has been 
cancelled as this matter requires some fina ncial settlement for the company situation 
concerning the executive issues that took place within the site. WT/TPR/M/150/Add.1 
Page 64  
 
• Suggested usage: tourist villages, conferences, recreational regions. 
4) Abou Ghoson tourist center: 
• Suggested areas for investment: the a reas range between million and 5 million 
square , this region is close to dividi ng centers and safari tourist regions. 
• Suggested usage: hotels, tourist villages. 
Second: Northwest coast regions (Ras Al Hkma sector)
: 
This sector includes Foka and Bagoush tourist center. 
1) Foka tourist center: 
This center is located on the east direction to Ras El Hkma sector.  This center is 
composed of several hotels, touris t villages, green areas , sports region , service and recreational 
regions, marina for yacht, hotel capacity amo unted between 10 and 12 thousand hotel room, the 
capacity for vacation villages amounted betw een 10 and 12 thousands unit for residential 
tourism. 
2) Bagosh tourist center: 
This center is located on the west direction for Ras El Hkma sector.  This center consists 
of several hotels, tourist village, and center for desert & safari sports, golf courses, hospital 
service and recreational regions, and marina for yacht. 
The ministry is currently organizing the strategic plan for tourist development for Ras 
Al Hkma sector. 
3) Al Hkma Al Zahbi tourist center: 
• Suggested areas for investment: area s ranges between million and 10 million 
meter -square, and it is located on the north coas t for karon lake.  This region is characterized 
by attractive nature, and several positive elemen ts like: wide green areas, Romanian, Islamic 
and phoronic monumental regions. 
• Suggested usage: projects assigned to environmental tourism, marine sports, 
safari tourism and intern ational conference center. 
• Suggested area for investment: area s ranges between million and 10 million 
meter square, and it is located on the north coas t for Karon lake.  This region is characterized 
by attractive nature, and several positive elemen t like: wide green areas, Romanian, Islamic and 
Pharonic monumental regions.  Suggested usage:  project assigned to environmental tourism, 
marine sports, Safari tourism and international conference center.  
Could Egypt provide additional information ab out existing plans to promote the tourism 
sector, and what measures the government is taki ng to ensure effective non-discrimination of 
foreign services suppliers? 
Reply: 
The ministry of Tourism is now concentrating on:  WT/TPR/M/150/Add.1 
 Page 65 
 
 
− Opening New Markets (India, China ….). 
− Promoting New types of Tourism (residential, Yachting …). 
− Increasing promotional activities worldwide. 
− Prevailing a tourism awareness campaign in Egypt which emphasizes concepts 
and values. 
− Improving the tourism product quality (training, infrastructure and service). 
− Encouraging Long - stay tourism (residential, combining, leisure and culture 
tourism). 
− Encouraging the tourist repeated visits. 
− Developing the current tourist destinatio ns (Marsa Matrouh city, Mrsa Allam, 
North coast). 
− Establishing new integrated tourist centers. 
Could Egypt inform us about its plans for im proving professional education and training 
related to the tourism sector? 
Reply: 
Definitely, Egypt is working on improving education and training related to tourism 
sector through: 
− Implementing various training programs  through the Ministry of tourism in 
order to develop the employees skills and qualifications. 
− The Ministry of Tourism is now prep aring and organizing a program called 
"Basic Business Skills Acquisition for tourism - BB  SAT" with the cooperation of the Egyptian 
Federation of Tourism chambers which aims to train all employees working within the ministry 
and all institution related to it. 
− The Ministry of Tourism is currently preparing an extensive national campaign 
for raising the tourism awareness.  The campai gn aims at carrying out some activities to 
familiarize all the society's categories with th e importance of tourism and how to deal with 
tourists as well as attracting more  tourist, its duration is five years.  The five-year campaign will 
cost about LE 100 million, noting that the EU w ill contribute to financing other campaigns. 
What is Egypt’s assessment of the effect of the tourism sector in overall economic growth 
and employment, and in particular in other economic sectors like construction, transport, computer 
services, education and professional training? 
Reply: 
Tourism is consider one of the main source of foreign currency in Egypt beside Suez 
canal returns and petroleum services, it repre sents 22% of total foreign currency inflow, 
according Tourism is consider one of the ma in factors important for achieving economic 
development. WT/TPR/M/150/Add.1 
Page 66  
 
Tourism earning cover more than half of tr ade deficit (57.4%) and represent more than 
a third of total invisible exports (36.4 %) the tourism sector makes up 11.3% of GDP.  Tourism 
is a main job provider generating 12.6% of total employment.  It creates 2.2 million job 
opportunities (directly and indirectly) as ea ch million tourist saves more than 20000job 
opportunities contribution to government revenues in taxes is around 19% of GDP.  
Could Egypt provide detailed information about the existing legislation applicable to tour 
managers (professionals accompanying groups of to urists in its travel through the country) and 
tourist guides? Could Egypt also indicate if  the government plans to reduce or eliminate 
discrimination of foreign services suppliers in these fields? 
Reply: 
Egypt has some regulations for foreign to ur managers and guides, however, Egypt 
intends to review it’s discrimination  measures against foreign services suppliers . 
6. Distribution Services : 
EC: 
Could Egypt indicate the proportion of people working in the distribution sector and what 
has been the evolution in the last years? 
Could Egypt provide detailed information abou t existing legislations applicable to retailing 
services? 
Reply: 
We could not clearly understand the question and whether the EC would like to get a 
breakdown according to different economic sector s or in terms of nationals versus foreigners. 
The EC is kindly requested to clarify the question and we are willing to provide an 
answer as far as the relevant data is available. 
However it is to be noted that Egypt services schedule does not include commitments on 
distribution. 
7. Business Services : 
EC: 
Could Egypt provide information about the legi slation applicable to the following activities 
and the measures the government is taking to  ensure non-discrimination of foreign service 
suppliers? 
− Management consulting. 
− Services related to management consulting. 
Reply: 
The specific services mentioned above are parts of most of the services sectors, and the 
measures governing their implementation are st ipulated in every relevant service’s sector 
regulation.  In other words, there is no  specific law to regulate those services.  WT/TPR/M/150/Add.1 
 Page 67 
 
 
SPS: 
USA : 
Measures Directly Affecting Imports - Standards and other technical regulations - Sanitary and 
Phytosanitary Measures:  
10.  According paragraph 68 on page 39 of th e Secretariat Report, Egypt disallows the import 
of foodstuffs with less than half of the validity period remaining.    
A)  Please explain what sanitary concerns is Egypt seeking to address with this measure?  
Is such a measure applied to domestic products?  
B)  Mandatory shelf-life standards, especially on non-perishable food products, 
unnecessarily restrict trade and are not in accor dance with Codex guidelines on the labeling of 
prepackaged food products.  Other countries in  the region have already agreed to remove 
mandatory shelf-life standards for most products.   Will Egypt consider the removal of mandatory 
shelf-life standards on non-perishable food products? 
Reply ( A & B) : 
Shelf life for food products are under review by an intra-ministerial (interagency) 
committee of relevant bodies.  The results of th is review will be announced periodically and 
notified.  Technical assistance from our advanced  partners is required to expedite this process. 
C)  Are there any other non-food items that are subject to shelf life standards (syringes, 
catheters)?  What is the current policy regarding these goods?  
Reply: 
Yes, syringes and catheters are subject to sh elf life for health & safety reasons and for 
consumer protection. 
EC: 
4. SANITARY AND PHYTOSANITARY MEASURES : 
 In the report prepared by the WTO secretariat,  it is stated, on page 39, paragraph 67, that 
frozen meat products require a further certificate,  confirming that a temperature of -18°C was 
maintained before export. 
Please clarify in which Decree this requirement is stated. 
Reply: 
This technical requirement is stated in the Ministerial Decree no. 349/1986, Ministerial 
Decree no. 524/2000, and the Egyptian standards for frozen meat no. 1522 for the year 2005. 
Standards : 
HONG KONG, CHINA : 
Standards and technical regulations : 
(WT/TPR/S/150, pg. viii, para. 9; and pg. 38, para. 58). WT/TPR/M/150/Add.1 
Page 68  
 
2.  We commend Egypt's initiative of December  2004 to review and ensure that all its 
standards comply with international standards.   Harmonization would f acilitate exporting economies 
to conform to Egypt's requirements.  We note that Egypt has finished the examination of all 387 mandatory standards in March 2005.  2000 out of the 3000 voluntary standards will be reviewed 
during the remainder of 2005 and the remaining 1,000 ones at the beginning of 2006. 
We are interested to know more details of the review programme, such as the number of 
non-conforming national standards and the plan to align them with international ones. 
Reply: 
There are currently about 5000 existing published Egyptian standards.  
The current ongoing Egyptian standards harmonization programme aims at 
harmonizing a total of 3387 Egyptian standard s and is divided to 3 main phases as follows: 
Phase 1:  harmonization of 387 mandatory Egyptian standards (195 standards in food 
sector, 89 standards in engineering sector, 13 stan dards in the textile sector, 89 standards in the 
chemical sector, & 1 standard in the measurem ent sector).  This phase ended in December 2004. 
Phase 2:  harmonization of 2000 existing voluntary Egyptian standards.  This phase will 
end in December 2005. 
Phase 3:  issuing 1000 new harmonized voluntary standard.  This phase will end in 
mid 2006. 
AUSTRALIA
: 
Standards : 
The Secretariat report states that in Decembe r 2004, Egypt embarked on a program to ensure 
that its standards comply with international standards and that by March 2005 the Egyptian 
Organisation for Standardisation and Quality (E OS) had completed the examination of all 387 
mandatory standards (pg. 38, para . 58).  Could Egypt please provide in formation on the results of the 
mandatory standards review and whether Egypt w ill seek to continue to bring mandatory product 
standards into conformity with internati onal standards and risk-based approaches.   
Have any recommendations or changes been made  to standards relating to food products? 
Reply: 
All 387 existing mandatory Egyptian standards have been harmonized on 
December 2004. 
The harmonization methodology is based on us ing as a priority international references 
(ISO, IEC, codex, etc…) when they exist.  In the case where there are no international 
references, standards are harmonized according to  European standards and then other regional 
or foreign standards.  This is also in accord ance with the ministerial decree number 180 for the 
year 1996. 
In Australia’s experience, food imports to Egypt can be subject to standards that are hard to 
justify on technical and scientific grounds and are sometimes not consistent with internationally 
accepted standards.    WT/TPR/M/150/Add.1 
 Page 69 
 
 
For example, wheat suppliers to Egypt are e xpected to meet standards that are not 
consistent with internationally accepted thresholds  in relation to weed seeds (both non-toxic and 
toxic), ergot and flag smut.  
Reply: 
Food standards have been re-structured and the clauses of the standards have been 
separated into two main parts. 
The first part of clauses deals with the essenti al requirements related to health & safety 
to which manufacturer's / importer's exporters /e tc… has to adhere to.  The second part of 
clauses deals with informative characteristics. 
As for the standards related to wheat : wh eat standard has been amended in 2005 and 
no specific values for items mentioned in the question have been determined however, the 
regulations of agriculture quarantine issued in th is connection which is subject to SPS should be 
followed. 
Testing : 
Australia is concerned that food imports can be  subject to testing procedures that are not 
uniform or transparent, and that are carried out by laboratories that appear to lack the technical 
capacity to fulfill the task.  For example, dairy and wheat suppliers face testing irregularities that 
cannot be confirmed by other indepe ndent and certified testing.  Also, there would appear to be some 
scope for applying risk management techniques in testing procedures and streamlining compliance 
requirements (for example, testing frozen meat on a random basis, rather than on every box).  Australian traders have also encountered some inc onsistencies in the handling of disputes about test 
results.  For example, it is sometimes possible to re -test food products in an a ttempt to resolve testing 
discrepancies, but at other times no re-testing is permitted. 
Is Egypt taking any steps to improve its tes ting procedures and to overcome some of the 
deficiencies mentioned above? 
Reply: 
As regards cereals testing standards, they have been harmonized according to ISO. 
As regards meat and dairy products testing standards, they are in the process of being 
amended within harmonization plan. 
In conclusion and answering the last question: Yes many steps have been taken to improve  testing procedures and other improvements 
are in consideration. 
CANADA
: 
Part III. A Coherent Trade Policy Framework,  (2) Standards Harmonization, paragraph 24:  
1.  Canada welcomes Egypt’s efforts to harmonize its standa rds with international norms.  
Canada encourages Egypt to continue to base its  mandatory standards on international standards 
developed by internationa l standard setting bodies.   WT/TPR/M/150/Add.1 
Page 70  
 
Canada seeks further information on the exp ected timeline of Egypt’s harmonization 
program.  
Reply: 
There are currently about 5000 existing published Egyptian standards. The current ongoing Egyptian standards harmonization program aims at harmonizing a 
total of 3387 Egyptian standards and is  divided to three main phases as follows: 
Phase 1: Harmonization of 387 mandatory Egyptian standards (195 standards in food 
sectors, 89 standards in engineering sector, 13 standards in the textile sector, 89 standards in the chemical sector, & 1 standard in the measurement sector). 
This phase ended in December 2004. 
Phase 2: Harmonization of 2000 existing voluntary Egyptian standards. 
This phase ended in December 2005.  Phase 3: Issuing 1000 new harmonized voluntary standard. This phase will end in mid 2006.  
2.  Egypt states that “...the Egyptian system allows Egyptian producers and importers to bring 
to the market commodities that ar e produced according to 6 other inte rnationally recognized standards 
including those of the EU, Britain, the US, German y and Japan.”  As stated, Canada seeks further 
information as to whether the standards referred to by Egypt are SPS and/or TBT related, as well as to 
what Egypt’s objective is in adopting the standards of key trading partners. 
Reply: 
 The ministerial decree number 180/1996 doesn't conflict with the requirements of SPS 
and TBT.  This decree is applied in case that th ere are no mandatory Egyptian standards.  The 
objective of this decree is to cover the sectors for which no mandatory Egyptian standards have 
been issued. 
Selecting the standard system stated in this decree basically encourages the use of 
international standards thereafter,  the use of regional standards (EN) which is considered the 
most important regional standards.  In addition , the rest of the standards stipulated in the 
decree comply with the requirements of Egyptian market and production.  However, this decree 
doesn't prohibit the use of any other standards voluntarily with notifying that.  
Part III. A Coherent Trade Policy Framework,  (2) Standards Harmonization, paragraph 25:  
3.  Canada welcomes Egypt’s coordination e fforts to address the concerns of WTO members 
regarding Egypt’s SPS transparency issues.  Howeve r, Canada requests further information on the 
implementation of Egypt’s “coordination mechanism.”   
Egypt also states that “a Prime Ministerial Decr ee is currently being drafted.”  Canada seeks 
clarification on the expected timeline of Egypt’s coordination process as well as the content of the 
decree.  WT/TPR/M/150/Add.1 
 Page 71 
 
 
Reply: 
Co-ordination mechanism is still under process. The decree regulates the process of notifica tions issuance whether issued by or 
submitted to Egypt and the method of commenting on them along with co-coordinating and collaborating with interested part ies in respect of notifications.  This will be issued and notified 
soon. 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (viii) 
Standards and other technica l requirements, paragraph 54: 
4.  Paragraph 54 states that the Egyptian Orga nization for Standardization and Quality (EOS) 
is the national authority in all matters related to standardization, quality control, and metrology.  
However, while the EOS formulates and sets st andards, verification of compliance is the 
responsibility of agencies affiliated to different ministries. 
Does Egypt have a formal mechanism for information-sharing and decision-making 
among the Egyptian Organization for Standardization and Quality (EOS) and the different agencies responsible for conformity assessment? 
Reply: 
Yes, Egypt has a formal mechanism for info rmation-sharing and decision-making.  In 
addition, EOS has issued guides in the field of quality complying with the international 
requirements. 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (viii) 
Standards and other techni cal requirements, paragraph 57:  
5.  Paragraph 57 states that “in the absence of a mandatory Egyptian standard, importers may 
choose a relevant mandatory standard among seven in ternational standard systems.”  This creates 
ambiguity as to whether Egypt is using interna tional standards as the basis of setting regulatory 
requirements.   
Could Egypt elaborate upon this practice and explain the meaning of "mandatory 
international standards," as well as the refer ence to "seven international standards systems"? 
6.  Paragraph 57 states that there are 3,387 standards, of which 387 are mandatory.  
Could Egypt provide details on its system of  mandatory conformity assessment?  For 
example, is the system based on any internationa l system of recognition, such as accreditation?  
Further, does Egypt recognize international standards and guides in the performance of 
conformity assessment? 
7.  Paragraph 57 states that “In the absence of  a mutual recognition agreement between Egypt 
and the exporting country, the imported product is s ubject to inspection and test in Egypt, even if 
covered by a certificate.” 
Could Egypt provide us with more info rmation about mutual recognition agreements 
(MRAs), including sectors covered to which Egypt is  a signatory.  Has the WTO been notified of 
these MRAs? WT/TPR/M/150/Add.1 
Page 72  
 
Reply: 
Egypt uses international standards as a basis for technical regulations and any deviation 
from such international standards is either for safety, health , environmental and geographical 
requirements or for the absence of relevant inte rnational standards for the same subject for 
which technical regulations are being developed. 
Mandatory standard is the one for which a mini sterial decree is issued by the minister of 
foreign trade and industry. 
Using seven international standards systems is stipulated in the ministerial decree 
180/1996 and this does not refer to internationa l mandatory standards but voluntary standards 
to select among them. 
Egypt applies international guides for co nformity assessment and acknowledges the 
relevant international guides and standards. 
 A number of laboratories have been accredit ed and others are in the process of being 
accredited through industrial modernization program .  In addition, Egypt's certification body is 
in the process of being internationally accredited by ILAC. 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (viii) 
Standards and other techni cal requirements, paragraph 58:  
8.  Paragraph 58 states that “Egyptian standard s are reviewed periodically, usually once every 
five years, to ensure their relevance to current requirements.  In December 2004, Egypt embarked on a 
programme to ensure that all its standards comply with international standards.”   
Having accepted the TBT Code of Good Practice,  EOS is required to make available, at 
minimum every six months, information on its work  program, which would be expected to review 
domestic standards, as well as any new standa rds and standards which are being withdrawn . 
 The EOS website refers only to ISO standardi zation activity and does not appear to 
reference any activity at the national level.  Is EOS making this information available? If not, when 
does it plan to do so? 
Reply: 
Egypt is among the first countries that accepted WTO/TBT code of good practice and 
applies its requirements. 
EOS has its own data base on which information relating to standards work plan and 
stages of each project is available upon request and ISO information center (ISONET) has been 
notified with that and also through this year, Egyptian standards will be made available on the 
internet. 
Egyptian standards harmonization program wi th international standards is carried out 
within the industrial modernization program in co llaboration with European Union.  In this 
respect, reports are submitted every three mont hs to industrial modernization program and 
publicized in the mass media.  Egyptian harm onized standards will be shown on EOS website 
by the end of this year. 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (viii) 
Standards and other techni cal requirements, paragraph 59:   WT/TPR/M/150/Add.1 
 Page 73 
 
 
9.  Paragraph 59 states that “In addition to standards, the EOS also issues quality and 
conformity marks.  The latter are mandatory for, inter alia, engineering g oods, and address health and 
safety concerns.”   
Are EOS quality and conformity marks based on international practices, e.g. ISO/IEC 
17030:2003?  
Reply: 
Yes, EOS quality and conformity marks are based on international practices. 
10.  Also, it appears that quality marks are not mandatory.  
a. Is the process for allocation of quality mark s at the request of a producer a completely 
transparent process?   
b. What are the standards on which these marks are based?  
c. What tests are conducted to determine continuing eligibility?  
d. Is this information readily available to foreign suppliers? 
Reply: 
a. Yes, the process for allocation of qualit y marks at the request of a producer is a 
completely transparent process. 
b. ISO GUIDE 28;  ISO GUIDE 23;  ISO/IEC 17030;  ISO GUIDE 67. c. Testing of product;  quality assessment;  periodic surveillance. d. Yes, this information is available on EOS website. 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (viii) 
Standards and other techni cal requirements, paragraph 60:  
11.  Could Egypt advise why it has not notified the WTO TBT Committee of any TBT 
measures since 1999, and why it appears that it does not plan to do so until at least 2007? 
12.  Would Egypt be able to notify the WTO TBT Committee immediately of those 
mandatory standards whose review has been completed? 
Reply: 
Coordination mechanism system has been desi gned and is about to be finalized through 
which some recent decrees to manda te standards will be notified. 
There are some notifications are ready no w to be submitted to WTO/TBT and not 
in 2007. 
Part III. Trade Policies and Practices by Measure,  (2) Measures Directly Affecting Imports, (viii) 
Standards and other techni cal requirements, paragraph 61:   WT/TPR/M/150/Add.1 
Page 74  
 
13.  Paragraph 61 mentions those products subject to mandatory quality control.  As an 
alternative to its current approach, has Egypt considered a requirement, where appropriate, that 
listed products, whether imported or  domestic, be produced by organis ations certified to ISO 9000?   
Reply: 
No. 
14.  Does Egypt have a plan to reduce the long  list of goods subject to mandatory quality 
control? If so, when will it implement this plan, and is it readily available to foreign suppliers?  
Reply: 
Yes, Egypt has a plan to reduce the long  list of goods subject to mandatory quality 
control and this is carried out directly after ha rmonizing Egyptian standards with international 
standards and notifying all interested parties. 
Egyptian mandatory standards are very limited  in number representing less than 1% of 
the total number of standards used for conformity assessment. 
15.  Could Egypt further explain the meaning of the words "similar" and "equivalent" in 
the last sentence of paragraph 61, in the context of mandatory quality control for imports relative 
to measures imposed on domestic products? 
Reply: 
"Similar" means "same" i.e. the same measur es applied to imports are applied also to 
the same corresponding domestic products.  Yes. 
USA
: 
4.  Egypt highlighted in paragraph 84 on page 15 of the Government Report that, as part of its 
effort to reform its regime for the imposition of technical regulations to trade, a draft for a new 
consumer protection law will be  presented to Parliament.   
(A) Can Egypt give us more details about this new law?  Which entity will be responsible 
for its enforcement?  
Reply:  
Consumer protection law is in the process prio r to be submitted to Peoples assembly and 
has been discussed by all interested ministries. 
The role of EOS has been embodied in revisin g and commenting on the drafts of this law 
through the Egyptian/COPOLCO Committee. 
(B) Please elaborate on the implications of th is law on requirements already in existence 
for imported products. 
Reply: 
According to WTO/TBT regulations, domestic  products are traded similarly as the 
imported products according to  international trade agreements.  WT/TPR/M/150/Add.1 
 Page 75 
 
 
(C) We would also appreciate an update on Egyp t’s plans for further initiatives in this area. 
Reply: 
In the field of consumer protection: 
− Resolving through direct contact. 
− Reinforcing the role of consumer protection societies. 
− Developing consumer protection standards. 
− Studying and handling consumer problems  from the technical aspect through 
Egyptian/COPOLCO Committees. 
− Holding seminars for raising consumer awareness. 
5.  Referring to paragraph 55 on page 37 of the Secretariat, please elaborate on how Egypt 
implements the WTO TBT Agreement into its domestic law.   
Has Egypt established any additional guidance or administrative procedures to require 
relevant authorities to publish notice of proposed standards, technical regulations and conformity 
assessment procedures at an ea rly stage for comment and provide copies of proposed measures to 
WTO Members upon request? 
Reply: 
Yes, Egypt is in the process of preparing coordination mechanism for this issue and this 
will include notification mechanism. 
6.  The Secretariat Report noted in paragra ph 56 on page 37 that once a draft technical 
regulation is developed by a technical committee it is circulated to all interested persons for comment 
for a period of at least two months. 
(A)  Is notice published in Egypt’s Official Gazette?  To whom is the draft circulated? 
Reply: 
The draft standard is circulated for all int erested parties which may reach more than 40 
entities. 
(B)  How is it determined that a standard will be made mandatory?  At what point is this 
determination made?  
Reply: 
According to the recommendations of t echnical committee and EOS Council, the 
Minister issues a decree to mandate this standard. 
(C)  Do sub-central administrative units in Egypt (governorates) develop their own 
technical regulations? WT/TPR/M/150/Add.1 
Page 76  
 
Reply: 
No, sub-central administrative units in Egypt  do not develop their own technical 
regulations. 
7.  In paragraph 57 on page 38, the Secr etariat Report discussed mutual recognition 
agreements between Egypt and third countries, but provides few details. 
Please list the mutual recognition agreements, in cluding the sectors covered, that Egypt has 
concluded with third countries.  Has the WTO been notified of these MRAs? 
Reply: 
Recently some mutual recognition agreements have been signed and not entered into 
force yet until accreditation of  laboratories on both sides id fulfilled.  Therefore, notifications is 
not required at this stage. 
8.  The Secretariat Report advised in paragr aph 60 on page 38 that Egypt has made no 
notifications to the WTO TBT Committee since 1999 and that it will resume submitting notifications 
once a review of its standards is comple te (the end of 2006/beginning of 2007). 
(A)  Please advise why Egypt has not notified any TBT measures since 1999.  
Reply: 
Coordination mechanism system has been desi gned and is about to be finalized through 
which some recent decrees to manda te standard will be notified.  Some notifications are ready 
now and not into 2007. 
(B)  Please provide details regarding the m echanism that is being set up within the 
Egyptian government to provide better coordination and to facilitate notification to the WTO of 
technical regulations. 
- What is the status of setting up this mechanism? In which government Ministry/agency 
will it be located?  
- Will this entity be responsible for making notifications to the WTO and ensuring 
transparency obligations are met on an ongoing basis? 
- What is the relationship of this entity to the enquiry point? 
(C)  Are the technical regulations issued by the Ministry of Foreign Trade the only ones 
that are notified to the WTO?  Are technical regulations issued by the Ministry of Industry, 
Ministry of Agriculture, and Ministry of Health no tified to the WTO?   If not, why not?   
Replies on (B) & (C): 
Egypt is in the process of finalizing its c oordination mechanism after been approved by 
the cabinet and will be applied for all  stockhold ers of notification process noting that EOS is 
TBT Enquiry Point.  WT/TPR/M/150/Add.1 
 Page 77 
 
 
EC: 
Standards harmonization : 
Reference is made to pg. 8, para. 24 an d 25, in the report prepared by Egypt. 
Egypt has launched a programme to harmoni ze Egyptian mandatory standards with 
international norms and separated essential safety requirements from other requirements. 
Will Egyptian standards, once harmonized with international practice, remain mandatory, 
or will they be applied voluntarily, based on comp ulsory regulatory essential safety requirements? 
Reply: 
Food mandatory standards have been restruct ured to essential requirements related to 
safety, health and environment.  Other standard s data are informative.  Standards related to 
other sectors will be similarly followed. 
Will the system of standards and technical regul ations result in a system which is not only 
more compliant with international practice, but also more de-regulated? With a bigger role for 
manufacturers’ responsibility in co mplying with relevant norms?  
Reply: 
Yes, the system of standards and technical regulation result in a system which is not 
only more compliant with internationa l practice, but also de-regulated. 
It is mentioned in the report of Egypt that a coordination mechanism is in place to ensure 
consistency of all technical requirements in Egypt with TBT and SPS obligations, including 
notification. 
The EC should like Egypt to clarify exactly which kind of coordination mechanism is in 
place, or being developed?  
Reply: 
Coordination mechanism is now in process in collaboration with the ministry of foreign 
trade and industry, including all concerned Mi nistries to facilitate notifications process. 
How will this affect the view of Egypt with respect to its notification obligations under the 
relevant provisions of the TBT and SPS?  
Reply: 
Egypt applies and conforms to the re levant provision of the TBT and SPS.  
Are there plans for the future to regularly no tify new or modified draft measures under the 
TBT and SPS agreements? 
Reply: 
Yes, there are plans for the future to notify  regularly new or modified draft measures 
under the TBT and SPS agreement.   WT/TPR/M/150/Add.1 
Page 78  
 
SWITZERLAND
: 
(viii) Standards and Other Technical Measures : 
Para. 54. 
Concerning the Egyptian organization for stan dardization and quality (EOS) what does the 
term "semi- autonomous" body exactly mean? 
Reply: 
This term means that EOS is the only national competent body in Egypt responsible for 
specified activities but it is affiliated to the ministry of foreign trade and industry ( not self financed ).  These specified activities can  be summarized as follows: 
− Standards' development and adoption. 
− Grant Egyptian quality marks and conformity marks.  
− Application of WTO/TBT agreement provision. 
− Representing Egypt in internationa l, foreign and regional corresponding 
organizations. 
Para. 57. 
 What are the criteria to designate a standard as mandatory?  
Reply: 
Health, safety, security, geographical re quirements, consumer and environment 
protection (according to TBT requirements). 
Para. 61. 
 What are the criteria taken into consideration to subject some product sectors to mandatory 
quality control? 
Reply: 
Health, safety, security, geographical re quirements, consumer and environment 
protection (according to TBT requirements). 
Para. 72. 
 Is it possible to use any kind of other langua ge or is it restricted to languages of the 
importing country? 
Reply: 
According to item 72, it is stated that "All foodstuff must be labeled with the following 
information, in Arabic and at least one other language… etc" therefore, data inserted in the 
label must be written in Arabic beside any other language.   WT/TPR/M/150/Add.1 
 Page 79 
 
 
KOREA : 
Question 1 (WT/TPR/S/150, pgs. 37-38, paras. 54-60) : 
Korea welcomes the efforts of Egypt to ensure th at all its standards comply with international 
standards.  According to the Secretariat Report, while the Egyptian Organization for Standardization 
and Quality (EOS) formulates and sets the standards, agencies affiliated to several different ministries 
are responsible for verification of compliance.  The lack of coordination among standards-related 
agencies and inconsistent testing procedures reduce tr ansparency and efficiency in the administration 
of standards and testing.   
Does Egypt have any plans to enhance transpa rency and efficiency in the formulation and 
enforcement of its standards? 
Reply: 
Standardization process and issuance of Egyp tian standards is shared responsibility 
among national committees, concerned mini stries, industrial chambers and consumer 
associations.  Circulation of draft stan dards include more additional entities.  
Trade Agreements : 
NEW  ZEALAND : 
It is stated in the Secretariat Report that Egypt does not maintain tariff quotas on imports 
(WT/TPR/S/150 pg.35, para. 42).  New Zealand unders tands, however, that Egypt applies different in- 
and out-of-quota tariffs to some EU agricultural products under the terms of its Association 
Agreement with the EU.   
We would be grateful if Egypt could provide clarification on this point. 
Reply: 
This is implemented according to Egypt - EU partnership.  The agreement articles 
provide clarification in this point.   
JAPAN : 
(3) THE COMESA AGREEMENT : 
(Pg. 11, para. 50). 
According to the Report by Egypt, although a prot ocol on free movement of persons is to be 
implemented in several stages in COMESA, Egypt did not sign the protocol, even on a reciprocal basis. 
1. Please indicate the specific content of th e protocol on free movement of persons in 
COMESA . 
Reply: 
Attached is a copy of the protocol document (COM/CM/XVIII/2, Annex 2 ). 2. Please indicate the reasons why Egypt did not sign the protocol . WT/TPR/M/150/Add.1 
Page 80  
 
Reply: 
Egypt has not signed the said protocol and is currently studying the possible impact of 
signing such protocol both in economic and social terms. 
SWITZERLAND
: 
(6) Trade Agreements : 
(iii) Other Arrangements : 
Paras. 48 and 49. 
 Can Egypt be more specific on the kind of p references (reduction percentage, products) it 
provides to the respective countries mentioned in paras. 48 and 49 and indicate the source where 
the information can be publicly consulted? 
Reply: 
All information related to COMESA Agreement are available in the official web site of 
the Ministry of Foreign Trade and Industry. 
EC: 
Regional Trade Agreements : 
The EC takes note of the important and enc ouraging improvements to the many different 
agreements made in recent years.  In 2004, E gypt signed the Agadir Agreement which is also 
committing the parties to removing substantially all tariffs on trade between them. 
Could Egypt clarify if these tariff reductions ha ve taken place, and if so to what extent? 
Reply: 
No these reductions did not take place yet, but  they will take place as soon as Morocco 
ratifies the agreement which is expected to  be done by the end of this year. 
What level of harmonisation has now been achieved? 
Reply: 
The agreement has a protocol for the harm onization of administrative and customs 
procedures, this protocol states the basis for the establishment of a technical unit for this 
purpose, this unit has not been established yet and is expected to get established by the end of 
this year. 
Trade Facilitation : 
EC: 
3. TRADE FACILITATION : 
The Egyptian report (para. 32) notes that measures are in place to facilitate customs 
procedures for large importers and that the adopti on of these procedures will be generalized to cover  WT/TPR/M/150/Add.1 
 Page 81 
 
 
all port in the near future.  The EC welcomes and supports measures to facilitate customs procedures 
for traders with a good track record of compliance.  
The EC would be grateful for information on the criteria to qualify for these procedures 
and the proportion of trade which benefits.  The EC would also like to flag that it believes such 
systems should not exclude the participation of small- and medium-sized enterprises.  
Reply: 
Procedures on the expansion of this service are under preparation, as it started with 25 
importers of top importers and it is expected that it would reach 200 importers, as the trade 
proportion for those importers is expected to reach 70%. 
On the other hand, the standards suits for d ealing with the top importers service are the 
standards of risk management.  This is implemen ted according to comprehensive program to develop 
qualified coordination techniques with customs.  This is consequently will lead to accurate application 
in the light of evaluating the pros and cons of the performance. 
The EC would be grateful for more informatio n on Egypt’s experience with its customs 
reforms to date and its reforms in the pipeline.  
Reply: 
The accomplishments of the Egyptian Customs Authority in the field of customs reform 
cover the following: 
− In the field of customs tariff. 
− In the field of transparent treatment with customs dealers. 
− In the field of service fees and other charges. 
− In the field of developing customs manuals: 
• Simplify customs procedures. 
• customs manuals. 
• customs valuation. 
• legislative amendments. 
• customs website. 
• the Agreements. 
• upgrade human resources. 
 
− Automation and the use of computers and modern programs: 
• Automated applications, electronic data exchange, information technology. 
• The application of risk management systems. 
• Pre-processing. 
• Post clearance audit. 
− Complaints/ disputes.  as for the plan of the customs authority in the next phase, 
it is represented in the following: WT/TPR/M/150/Add.1 
Page 82  
 
• Introducing the customs declaration, and obtain all customs information and 
services through the internet. 
• The sound application of the risk management system. 
• The sound application of post- release audit. 
• Extending the distinct service to cover the top importers. 
• Using one stop shop model as an alternative for the traditional customs complex 
in every sector. 
With reference to page 8 and 9 of the report prepared by Egypt.  Although with Decree of 
Ministry of Finance n. 765/2001 Egypt appears to be  in line with WTO rules on customs valuation, 
the practice at customs posts remains varied, with  discretionary behaviours from customs officials 
often disregarding the transaction/invoice value and applying a higher one.  
Does Egypt envisage any action on the implemen tation side to enforce correct valuation at 
Egyptian customs in line with intern ational rules and best practices? 
Reply: 
The Egyptian Customs Authority implements the provisions of article vii of GATT 
agreement moreover, the customs authority is very  careful to follow up whichever new within 
the customs valuation committee in the WTO in addition , it conducts ongoing workshops to 
train employees to the best practices in the fiel d of valuation and to follow the international 
provisions stated in the agreement, as a proof of that is the reduced numbers of appeals 
regarding customs valuation against the amounts of appeals used to be received previously. 
Referring to the WTO secretariat’s report, pg. 25 para. 14, although major efforts have been 
made in order to ameliorate the customs valuation,  the practice at customs posts remains varied, with 
discretionary behaviours from customs officials of ten disregarding the transaction/invoice value and 
applying higher rates. 
Does Egypt consider that ongoing training  and awareness programmes are sufficient 
actions on the implementation side to enforce corr ect valuation at Egyptian customs in line with 
international rules and best practices? Are any additional initiatives foreseen to reinforce 
implementation? 
Reply: Egypt needs a lot of assistance, which would enable Egyptian Customs Administration 
to implement the customs valuation policies with the international standards, if training and 
software, communications equipment and conn ections with the world are available the 
awareness of the application of article 7 provisions would increase. 
Furthermore, the EC notes that some modern cu stoms clearance centers have been established 
in several Egyptian entry points; however, they ar e still pilot programmes, from which only a limited 
number of users can benefit and limited traffic. 
When does the Egyptian government foresee the generalization of these pilot programmes 
in each specific entry point and to extend them to all entry points and users in Egypt? 
Reply: 
Advanced customs centers were established in Cairo, Alexandria, and its operational, 
Egypt Customs aims at generalizing these cente rs to cover all customs posts in the light of 
technical, financial and human resources availability.  WT/TPR/M/150/Add.1 
 Page 83 
 
 
The plan of the customs Authority during the next stage, as follows : 
− Implement the e declaration and to make  all customs information and services 
available via internet. 
− The sound application of the risk management system.  
− The sound application of post- release audit. 
− Extending the distinct service to cover not only the top importers, but it will also 
cover small and medium importers.  
− Using one stop shop model as an alternative for the traditional customs complex 
in every sector. 
With regard to future reforms, what are the priorities and when are the reforms planned to 
be implemented?  
Reply: 
The customs reform is being done in collabora tion with the international donors, it was 
answered.   
INDONESIA : 
(3) Trade Facilitation and Custom s Reform (pg.8. paragraph 31) : 
1. Paragraph 31 of the Government Report stat es in 2004, Presidential Decree 300 eliminated 
remaining export taxes and eliminated the 1 - 4% customs surcharge on imports.  As a matter of fact, those surcharges must have been paid by In donesian exporters in order to obtain document 
legalization from Egypt Representative Office in Jakart a.  In connection with cocoa exportation, for 
example, Indonesian exporters must pay high economic cost for legalization fee at about Rp. 
1.000.000, - for each page of document, and 9 other documents for about Rp. 9.000.000. 
Indonesia would like to address this concern that  the Government of Egypt should promptly 
eliminate this legalization fee.  Please comment. 
Reply: 
The Egyptian Customs Authority has initiated a reform programme aiming at 
improving and expediting customs clearance and procedures.  This does not mean that it is 
'sitting on its laurels';  rather its long-term plan will include: 
− The implementation of E-declaration systems. 
− The application of risk-management systems. 
− The application of post-release audits. 
− The extension of fast-track release mechanisms to small and medium-size 
importers. 
− Adopting the 'One-Stop-Shop' model as an alternative to traditional complex 
customs procedures.  WT/TPR/M/150/Add.1 
Page 84  
 
Trade Policies
: 
1. Import : 
USA : 
Measures Directly Affecting Imports - Impor t prohibitions, restrictions and licensing : 
2.  Paragraph 42 on page 35 of the Secretariat Report noted that Egypt, in general, does not 
subject imports to licensing or prior approval.  Egypt has never submitted a notification to the 
Committee on Import Licensing Procedures officially indicating, one way or the other, if it uses import licensing requirements in its trade regime. 
When does Egypt plan to submit its notification, and if such measures are used, copies of 
its licensing legislation and its response to the import licensing questionnaire to the WTO 
Committee on Import Licensing Procedures?   
Reply: 
The general principle is that imports are not subject to import licensing except for some 
commodity groups such as medicine, pesticides , seeds and vegetarian food in the area of 
sanitary and phytosanitary measures.  Additi onally, weapons, reserves, explosives and some 
products related to the environment are subject to import licensing in accordance with security 
measures.  
Egypt plans to submit its notification, copies of its licensing legislation and its response 
to the import licensing questionnaire to the WT O Committee on Import Licensing Procedures 
in September 2005.  
CANADA
: 
Part III. Trade Policies and Practices by Measure, (2 ) Measures Directly Affecting Imports, (vi) 
Import Prohibitions, Restriction, and Licensing, paragraph 42: 
1.  According to the Secretariat Report “the im port of certain products is subject to specific 
administrative formalities.”  The Government of Egypt has adopted an import licence system, targeting especially agricultural and agri-food products , which is sometimes inconsistent with normal 
business practices and without clear and reasonable justifications. 
Could Egypt clarify the decision making pro cess as well as the bases on which those import 
licence decisions are taken? 
Reply: 
The general principle is that imports are not subject to import licensing except for some 
commodity groups such as medicine, pesticides , seeds and vegetarian food in the area of 
sanitary and phytosanitary measures.  Additi onally, weapons, reserves, explosives and some 
products related to the environment are subject to import licensing in accordance with security 
measures.   WT/TPR/M/150/Add.1 
 Page 85 
 
 
2. Export : 
USA : 
Measures Directly Affecting Exports - Export prohibitions, restrictions, and licensing : 
11. Referring to paragraph 86 on page 41 of the Secretariat Report, does Egypt maintain any 
quantitative restrictions, including prohibiti ons, on the export of high-grade cotton? 
Reply : 
Egypt does not maintain any quantitative restri ctions or prohibitions on the export of 
high grade cotton. 
Measures Directly Affecting Exports - Export Promotion and Marketing Assistance : 
12. The Secretariat Report stated in paragraphs  96 and 98 on page 43 that the Government of 
Egypt has adopted a new export development strategy, which will focus on “enhancing the 
performance of Egyptian exporters in traditional ma rkets such as the EU, Arab countries, and the 
United States.”  The Report added that the new “E xport Promotion Law” is not used to subsidize 
exports.  However it noted that the law provides an export promotion fund with a view to increasing 
exports.   
Please explain the eligibility criteria for and nature of the export promotion fund.   
Reply: 
The export promotion fund has the following objectives: 
− Promoting national products marketing. 
− Assisting producers to enhance their ex port capabilities through developing 
technical and marketing research and establis hing laboratories and training centers. 
− Enhancing the electronic telecommunicati on system with foreign markets, and 
the organizations promoting exports. 
− Strengthening the exportation qualities in  both commodities and services fees. 
− Financing market research studies and informing exporters about global 
demands and restrictions imposed on imported goods. 
SWITZERLAND : 
(3) Measures Directly Affecting Exports : 
(ii) Export Taxes, Charges and Levies : 
Para. 85.  
 Which are the criteria and the reasons to impose an export duty up to 100% of the value of 
the good, as mentioned in para. 85?  WT/TPR/M/150/Add.1 
Page 86  
 
Reply: 
Only specific kinds of  raw materials lik e junk and raw leather are considered vital 
inputs to domestic industries that have social dimension, so there is an essential need for 
providing such inputs domestically.  Pursuant to the issuance of Law 118/1975, an export duty that are not exceeding 100% of the value of the good  is imposed instead of preventing exporting 
such raw materials.  This export duty is im posed by Ministerial Decree based on  market 
researches to prove that there is no sufficient quantities of certain raw materials that are required for domestic industries and have a social  dimension.  These duties within the limit of 
no-prohibition of exports. 
3. Quality control
: 
AUSTRALIA : 
Testing : 
Australia is concerned that food imports can be  subject to testing procedures that are not 
uniform or transparent, and that are carried out by laboratories that appear to lack the technical 
capacity to fulfil the task.  For example, dairy a nd wheat suppliers face testing irregularities that 
cannot be confirmed by other indepe ndent and certified testing.  Also, there would appear to be some 
scope for applying risk management techniques in testing procedures and streamlining compliance 
requirements (for example, testing frozen meat on a random basis, rather than on every box).  Australian traders have also encountered some inc onsistencies in the handling of disputes about test 
results.  For example, it is sometimes possible to re -test food products in an a ttempt to resolve testing 
discrepancies, but at other times no re-testing is permitted. 
Is Egypt taking any steps to improve its tes ting procedures and to overcome some of the 
deficiencies mentioned above? 
Reply: 
As regards cereals testing standards, they have been harmonized according to ISO. 
As regards meat and dairy products testing standards, they are in the process of being 
amended within harmonization plan. 
In conclusion and answering the last question: Yes many steps have been taken to improve  testing procedures and other improvements 
are in consideration. 
USA
: 
Measures Directly Affecting Imports - Standards a nd other technical regulations - Quality control 
measures : 
9.  In paragraph 61-63 on page 38, the Secr etariat Report described Egypt’s listed products 
subject to mandatory quality control and described the quality control system.   
A) How does inspection work?  Does inspection take place at the import stage or retail 
stage or both?  WT/TPR/M/150/Add.1 
 Page 87 
 
 
Reply: 
The inspection system is as stated in th e Prime Minister decree no. 1186 for year 2003 - 
article 2 - and the sample drawing system in annex 2.  The importer submits an  inspection application to a subsidiary of the General Organ ization of Export and Import Control (GOEIC) 
at the arrival port.  After referral from customs authorities, the documents are reviewed, and a 
committee is established which includes all inspectio n-related parties.  After this, the samples 
are withdrawn, all inspection procedures are completed, and the final result is issued. 
It is important to state here that the good s imported by manufacturing or services  
projects  are not subject to inspection.  Only goods imported for trading purposes are inspected. 
Annex (8) is currently revised.  
B) Do any other Egyptian agencies or Ministries other than the GOEIC inspect the same 
goods? 
Reply:  
The inspection of imported food goods is implemented as soon as the goods arrive at 
Egyptian ports to insure conformity with standards. 
The GOEIC performs all inspection procedures in one step in cooperation with relevant 
control and supervisory authorities concerned wi th these procedures (e.g. Ministry of Health 
and Population, Foods Control Authority, Veterinary Quarantine, Plant Quarantine, Radiation Authority). 
C)  What is the justification for imposing quality control on a mandatory basis? 
Reply: 
Inspection of goods listed in annex (8) is applied only on goods imported for trading 
purposes not on goods  imported for manufacturing or  services  projects.  This is done with the 
objective to protect the consumers who are not able  to distinguish between the fake and original 
goods. 
These are temporary procedures till the process of issuing legislations to protect 
domestic consumers is finalized. 
It is worth mentioning that goods imported  from producers applying quality control 
system are not subject to inspection.  Only selected samples are inspected. 
D) Under what regulation/legislation does Eg ypt ensure application of similar quality 
control measures on domestic products? 
Reply: 
According to inspection rul es within the TBT Agreement, there is no discrimination 
between imported and domestic products.  Thus  the domestic rules state that the domestic 
producers are subject to inspection to make sure that they are ap plying the relevant 
standards. WT/TPR/M/150/Add.1 
Page 88  
 
4. Textiles
: 
EC: 
Textiles : 
The EC should like to ask Egypt to inform abou t its intension to modify the conditions for 
import of textiles/garments from whatever origin? If  so, within what timeframe would this be 
modified? 
Reply: 
There is no restriction on imports of textiles/ garments.  Applied rules are only related to 
labelling in consistence with international rules. 
5. Import licensing : 
EC: 
Import licensing : 
On page 35, para. 42 in the report prepared by the WTO secretariat it is explained that in 
general, Egypt does not subject imports  to licen sing or prior approval, but the import of certain 
products is subject to specifi c administrative formalities. 
Could Egypt inform what products or areas are subject to this specific administrative 
formality and also clarify what these formalities imply in reality? 
Reply: 
Importing general principle does not incl ude import licensing except for some 
commodity groups such as medicine, pesticides , seeds and vegetarian food in the area of 
sanitary and phytosanitary measures.  Additi onally Weapons, reserves, explosives and some 
other products that are related to environmen t are subject to import licensing as security 
measures.  
6. Trade policies and practices by measure : 
JAPAN : 
III. TRADE POLICIES AND PRACTICES BY MEASURE : 
(1) OVERVIEW : 
(Pg. 23, paras. 114 to 119). 
As for the letter of credit in trade, we notice that there are many problems with this system 
such as the high cost to make the letter of credit a nd the requirement for prior approval to the bill by 
buyers before the negotiations on a letter of credit,  which critically harms the significance of the letter 
of credit and causes some troubles due to the delay of payment. 
6.  In this regard, please indicate the current situation .  WT/TPR/M/150/Add.1 
 Page 89 
 
 
Reply: 
First of all, no reference to the letter of credit under the above mentioned paragraphs.  
However, the cost of letter of credit for trade in Egypt is subject to market force i.e. each bank’s 
determination, there are no regulations with resp ect to it.  The cost of conformation may be 
high due to a country risk issues.  
7. Consular fee : 
INDONESIA : 
(2) Trade Policy Formulation and Implementation : 
(Pg. 12. paras. 8-11). 
1.  Paragraph 11 of the Secretariat Report notes that trade policy is implemented by Ministry 
of Foreign Trade and Industry and it coordinates im plementation with other state entities.  In relation 
with this policy implementation, Indonesia woul d like to have information from Egypt regarding 
SOM Bilateral meeting between Indonesia - Egypt in  Kairo from 18-19 July 2005.  Prior to that 
meeting both countries agreed not to put ‘elimination of  consular fee’ issue within agenda of meeting, 
but Egypt promise to follow up such an issue.  Indonesia would like to have assurance from Egypt 
that consular fee and legalization fee would be elim inated since this issue will only result in negative 
adverse impact to bilateral trade and Eg yptian consumers itself.  Please comment. 
Reply: 
Consular fee and legalization fee do not have a significant impact on bilateral trade 
relations.  Consular fee should not be assimilated to custom service fee or charges on imports.  
They are perceived in fulfilment of a service that  provides enhanced security and confidence to 
trade transactions by ensuring an official authentification of appropriate documentation and 
procedures.  Elimination of consular fees and lega lization fee is subject to bilateral or regional 
agreements such as GAFTA or COMESA.   
__________