WORLD TRADE  
ORGANIZATION  WT/TPR/M/150 
31 August 2005 
 (05-3782) 
Trade Policy Review Body 
26 and 28 July 2005  
 
 
 
TRADE POLICY REVIEW 
 
EGYPT 
 
Minutes of Meeting  
 
Chairperson:  H.E. Mr. Don Stephenson (Canada) 
 
 
Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3  
II. OPENING STATEMENT BY THE REPRESENTATIVE OF EGYPT 4  
III. STATEMENT BY THE DISCUSSANT 7  
IV. STATEMENTS BY MEMBERS 10  
V. REPLIES BY THE REPRESENTATIVE OF EGYPT AND ADDITIONAL 
COMMENTS 16  
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 20  
 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Egypt are 
reproduced in document WT/TPR/M/150/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.   WT/TPR/M/150 
 Page 3 
 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The third Trade Policy Review of Egypt was held on 26 and 28 July 2005.  The Chairperson 
(H.E. Mr. Don Stephenson) welcomed the delegation of Egypt, headed by Dr. Samiha Fawzy, and the 
discussant H.E. Mr. Luiz Felipe de Seixas Corrêa (Br azil).  As usual, the discussant would speak in 
his personal capacity and, in accordance with establis hed procedures, had made available in advance a 
broad outline of the themes he intende d to raise (document WT/TPR/D/126). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures of the meeting.  The Report by Egypt was contained in document WT/TPR/G/150 and 
that of the Secretariat in document WT/TPR/S/ 150.  Copies of advance written questions, submitted 
by:  the European Communities;  Indonesia;  Switz erland;  Japan;  Australia;  Hong Kong, China;  
Canada;  Colombia;  the United States;  the Sepa rate Customs Territory of Taiwan, Penghu, Kinmen, 
and Matsu;  New Zealand;  the Republic of Ko rea;  Colombia;  Turkey;  and Brazil had been 
transmitted to the delegation of Egypt.  These questi ons and the replies provided by the delegation of 
Egypt are reproduced in WT/TPR/M/150/Add.1. 
3. The Chairperson stated that the documentation pr epared for this Review highlighted Egypt's 
commitment to trade liberalization through multilatera l, regional, and unilateral initiatives.  Since its 
last Review in 1999, Egypt had improved access to  its market.  Exports of goods and services had 
been a motor of its recent economic recovery.  Ho wever, tariffs on many goods remained high, and 
tariff protection was compounded by mandatory qu ality controls on a large number of products.  
Moreover, State ownership remained extensive in the economy.   
4. Continued trade and structural reforms woul d help to enhance the predictability and 
transparency of the trade regime, and improve Egypt's economic performance. WT/TPR/M/150 
Page 4  
 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF EGYPT 
5. The representative of Egypt
 thanked the TPR Body, the Chair, and the discussant.  She 
reaffirmed Egypt's commitment to the WTO princi ples and objectives, in particular to the TPR 
process, which ensured that Members continued to  move towards greater trade liberalization and 
transparency.  She intended to focus on:  Egypt's  economic, social, and political reforms;  recently 
implemented trade-related reforms;   and the unfinished agenda of reform, and the road ahead.  
Egypt's broad reforms 
6. Since 1999, Egypt had witnessed many reforms.  Their relatively slow pace had picked up 
from mid-2004.  The Government was "changing gear",  and was embarking on a broad and coherent 
economic, social, and political reform process.  It had demonstrated a bold reformist stance aimed at 
revitalizing the economy, and stimulating far more rapid, private-sector-led economic growth;  this 
was a radical change from the former years of gradualism.  To realize these objectives, the Government was working to liberalize Egypt's trade regime, and to accelerate its integration into the 
global market, through active WTO participation, as well as regional and bilateral preferential trade 
arrangements.  While the private sector was doing bu siness, the Government's job was to improve the 
business environment to ensure fair competition, and to eliminate bureaucratic barriers to investment.  
The new Ministry for Investment had been created to ensure a business-friendly environment. 
7. The representative highlighted some of the ne w policies and their results.  The Monetary 
Policy Coordination Council had been established, and the Inter-Bank Foreign Exchange Market had 
been launched.  The financial sector reform pr ogramme included divesture of public shares in a 
number of joint-banks, increased mergers in the banking sector, restructuring the insurance sector, 
deepening the capital market, and privatizing the firs t State bank before end-2005.  The new Tax Law 
had cut the top rate of income and corporate ta xes from 40% to 20%.  The privatization programme 
had been reactivated, and moved to the top of th e Government's economic agenda.  As a result, 
foreign companies had invested in multi-million dollar deals, and privatization proceeds had 
increased.  The General Authority for Investment and Free Zones was applying a one-stop shop policy 
to simplify procedures.  A revised Labour Law had established a qualified right for employees to 
strike, as well as rules on collective bargaining and non-discrimination.  The executive regulations of 
the Competition Law would be issued shortly, and the Competition Commission was expected to 
function soon.  Other laws aimed at encouraging pr ivate investment had been put in place:  IPR Law 
No. 82 had been issued in 2002, and its executiv e regulations covering copyrights and neighboring 
rights were issued in April 2005;  a mailbox for ph armaceutical patents had been opened;  and Egypt 
had joined the Nice Agreement for Registration of  Marks, and the Patent Cooperation Treaty.  
Regulations to improve the enforcement of IPR bor der measures were currently being drafted, and a 
Consumer Protection Law was under preparation. 
8. Egypt's economic policies were formulated afte r close consultations with the private sector, 
other concerned stakeholders, and its major trad ing partners.  Recent macroeconomic indicators 
suggested that the reforms had already paid di vidends:  consumer and business confidence had 
increased;  GDP growth had increased to 4.8% in  2004-05, and international and domestic forecasts 
indicated positive and higher growth prospects fo r 2005-06;  the exchange rate was well managed, 
and the value of the Egyptian pound had strengthened;   exports had increased by 30% compared with 
2004;  Egypt's current account showed a surplus;  FDI was increasing;  and the Stock Exchange had 
come at the top of the emerging and global markets.   
9. On the social front, Egypt's most important st ep had been a revision of the education and 
health sectors to raise their quality.  In addition, Egypt had started a project – with the World Bank – 
to upgrade its social safety net, and was implemen ting political reform to deepen democratic political 
participation, and to strengthen th e role of the civil society and th e observance of human rights.  An 
amendment to the Constitution – allowing for a multip le-candidate presidential election – had been  WT/TPR/M/150 
 Page 5 
 
 
adopted to replace the system of a single candidate selected by Parliament, and standing-in a referendum;  it also created an independent Pr esidential Elections Committee to supervise the 
electoral process.  The presidential election was sch eduled for September 2005.   New laws had been 
enacted to foster political participation.  Egypt's  political system was a presidential republic.  These 
landmark political reforms would enhance the trust in Egypt's commitment to the current economic 
and social  reforms.   
Trade reform  
10. Egypt was an active WTO Member, and was fully engaged in the DDA.  It believed in the 
importance of the multilateral trading system to ensure  a fair, transparent, and predictable rules-based 
system.  It hoped that the forthcoming Ministeria l Conference would achieve ambitious and balanced 
outcomes, in particular in agriculture, NAMA, and services, fulfilling the DDA goals and the 
aspirations of developing countries.  Egypt was co mmitted to make the Confer ence a success.  Under 
the DDA, Egypt had submitted proposals in different  areas, all emphasizing the mandate of the Doha 
Declaration.  It had become a party to the Basi c Telecommunications Agreement, and the Information 
Technology Agreement.  Egypt had submitted its revised services offer, making commitments in 
several new sectors. 
11. Egypt exercised its rights in the WTO (in trad e remedies investigations, or the dispute 
settlement mechanism), and was striving to comply  with its obligations.  It had established a 
mechanism to keep its SPS and TBT notifications  up to date, and was reviewing its IPR Law. 
12. While the multilateral trading system provided the basis for Egypt's relationship with all 
trading partners, it continued to build closer links with its main trading partners.  The Association 
Agreement with the EU was being implemented;  it provided the framework for bilateral cooperation 
and the reciprocal dismantling of tariffs leading to  a free-trade area.  The Qualified Industrial Zones 
Protocol with the United States helped some of E gypt's key industries to access the U.S. market;  
technical discussions had been initiated to negotia te a free-trade agreement.  GAFTA encompassed 
17 countries, including Egypt;  all customs duties had been reduced to zero in 2005.  Egypt had signed 
the Agadir Agreement with Jordan, Morocco, and T unisia to boost trade among them and with the 
EU.  The agreement committed the parties to remo ve substantially all tariffs on trade by January 
2006, and to intensify economic cooperation, incl uding harmonizing their standards and customs 
procedures.  As a COMESA member, Egypt had eliminated duties on imports from COMESA countries. Egypt intended to use these preferential ag reements to expand the current low level of intra-
regional trade in Africa. 
13. Trade liberalization was a means towards enhancing competitiveness, creating jobs, 
alleviating poverty, and achieving sustainable devel opment.  With this vision in mind, Egypt had 
undertaken several trade-related reforms to ensure consistency and compatibility with international 
standards and obligations.  In 2004 , Egypt had reformed its tariff sc hedule and reduced its tariff lines 
from 13,000 to 6,000, as well as its tariff bands from 25 to six, thereby reducing the weighted average 
tariff from 14.6% to 9%;  most of Egypt's applie d tariff rates were now well below its bound tariff 
rates.  Egypt had also harmonized its mandatory  standards with international norms;  it had 
established a coordination mechanism for all go vernmental bodies responsible for standards and 
conformity assessment to address non-transparency, a nd ensure that these standards were consistent 
with its TBT and SPS obligations .  To facilitate inspection procedures, Egypt now recognized 
inspection certificates from outside accredited agenci es;  it was also working on the accreditation of 
Egyptian laboratories according to ISO standards a nd guidelines, and was implementing regulations to 
reduce the frequency of inspections on imported manufactured products.  The adoption of the WTO 
customs valuation principles in 2001, and the recognition of electronic signatures would speed up customs and port clearance procedures. WT/TPR/M/150 
Page 6  
 
The unfinished agenda of reform, and the road ahead 
14. Although Egypt had recently made excellent in-roads in customs and trade facilitation, there 
remained major priorities in trade policy, includi ng:  continuing to simplify procedures in ports 
(especially in applying risk management, stre amlining conformity assessment procedures, and 
customs valuation); further developing the IPR regime;  upgrading its standards and accrediting its 
laboratories;  and enhancing its notification syst em.  A quantum leap in economic and trade policy 
had undoubtedly been made since 1999, but not every problem had been solved.  
15. Key priorities of Egypt's third generation of reforms were the institutional, legal, and 
regulatory reforms to guarantee a well-functioning market economy, and a vibrant private sector, and 
compatibility with international standards and oblig ations.  These priorities required:  a critical mass 
of qualified and skilled human resources, which mean t reforming Egypt's education system;  new and 
highly sophisticated modes of operations, which me ant developing its technological base;  and the 
establishment of peace and stability in the region to  gear its resources towards economic growth and 
development.  Egypt was determined to continue its  reforms with the assistance and cooperation of its 
trading partners.    WT/TPR/M/150 
 Page 7 
 
 
III. STATEMENT BY THE DISCUSSANT 
16. The discussant commented on three main areas:  economic environment;  trade policy 
instruments;  and trade policies by sector.   
Economic environment 
17. Since 1999, Egypt's macroeconomic performance had been positive, but below the 
Government's expectations.  Econ omic growth had declined from 6.1% in 1998/99 to 3.1% in 
2002/03, and had recovered to 4.4% in 2003/04;  during the same period, exports of goods and 
services had more than doubled.  The floating ex change rate system introduced in 2003 helped 
improve Egypt's current account.  Trade had been  an engine for its ec onomic recovery, and had 
become an important pillar in Egypt's integration in to the global economy.  Tourism, the Suez Canal, 
and remittances from Egyptians working abroad  remained sources of foreign exchange. 
18. Monetary discipline had helped to contain infla tion.  However, the growing fiscal deficit had 
prompted the Government to undertake reforms in customs and taxation.  Other positive measures 
included strengthening Central Bank independence, a nd controlling public borrowing. Total external 
debt had been about 37% of GDP in 2003/04.  The Government had been trying to bolster the private 
sector, and was implementing policies to attract investment. 
19. Poverty reduction and a more equitable distribu tion of income remained key objectives of the 
Egyptian Government. With 2% annual population gr owth, GDP growth was not yet high enough to 
impact significantly on poverty or on high unemployment. 
20. Egypt participated actively in the multilateral trading system.  As a G-20 member, it was a 
key player in the agriculture negotiations.  It  also put emphasis on the services negotiations, and 
considered that the principles of special and differe ntial treatment as well as less than full reciprocity 
had to be reflected in the results of the current Round. 
21. Preferential trade agreements were becoming increasingly important for Egypt. Since 1999, it 
had concluded an agreement with the European Uni on, the Agadir Agreement, a trade protocol with 
Israel, and a trade framework agreement with the Un ited States.  Egypt was also party to GAFTA and 
COMESA. 
Trade policy instruments 
22. Egypt's overall institutional framework for trad e policy formulation had remained unchanged 
since 1999.  However, legislation was being update d as a result of autonomous policy initiatives, and 
in an effort to comply with multilateral rules.  Initiatives during this period included tariff reductions, 
streamlining customs procedures, adopting the WTO customs valuation rules, and eliminating all 
customs service fees and charges on imports.  Egypt  had also adopted new legislation on IPRs and 
export promotion. 
23. Egypt had bound over 98% of its tariff lines, at rates averaging 37.5% in 2005, down from 
45% in 1998.  As a result of across-the-board cuts  and the reduction in the number of tariff bands, the 
average applied MFN tariff had fallen from 26.8% in  1998 to 20% in 2005.  However, Egypt's tariff 
system remained complex, with numerous exemp tions and concessions.  Peaks of up to 3,000% 
applied to alcoholic beverages and spirits.  Fairly steep tariff escalation resulted in high levels of 
effective protection for most industries. 
24. All customs service fees and charges on imports ha d been eliminated in 2004.  Since 2001, 
Egypt had been implementing the Agreement on Customs Valuation.  It maintained import 
prohibitions for economic, environmental, health , safety, sanitary, and phytosanitary reasons.  WT/TPR/M/150 
Page 8  
 
Although imports were not subject to licences or pr ior approval, a wide range of imported products 
were subject to mandatory quality control.  Egypt did not maintain export quotas, licences or 
prohibitions, and did not apply export taxes, charge s or levies.  However, some 50 products were 
subject to quality control upon export.  Egypt's st andards did not distinguish between foreign and 
domestic products;  Egypt had a programme to ensure that its standards complied with international 
standards.  Although, according to official info rmation, Egypt did not pr ovide export subsidies, 
various incentives encouraged export-oriented activities. 
25. There was no specific legislation on foreign i nvestment, but there were laws containing 
provisions on specific aspects of foreign investment.  Egypt had established free zones to attract FDI.  
The Government viewed the promotion of SMEs as an  important way to adjust to structural reforms, 
and to modernize the economy.  Egypt's first comp rehensive competition legisl ation had been adopted 
in 2005.  A Consumer Protection Law was under consideration. 
26. While State ownership remained extensive, n early 200 companies had been fully or partly 
privatized between 1993 and 2004, and an ambitious plan envisaged the privatization of 125 of the 
remaining 178 state-owned enterprises. 
27. Egypt was member of most of the main international treaties on intellectual property.  In 
2002, it had passed a Intellectual Property Law cove ring all major areas of the TRIPS Agreement. 
Trade policies by sector 
28. The share of agriculture in GDP had been d eclining, although the it still accounted for more 
than a third of total employment.  Egypt's area of  cultivated land per head was among the lowest in 
the world.  Agriculture remained dependent on irri gation from the Nile River.  Egypt was a net food 
importer, although its agricultural trade defic it had been decreasing due to growing exports.  
Production of most agricultural products had increa sed.  Financial assistance was provided through  
subsidized electricity and water.  Cotton, the singl e most important agricultural export product, would 
further benefit from the expected reduction in dist orting subsidies in some major producers.  The 
applied average tariff on agricultural products was 5. 8% in 2005.  Egypt did not maintain tariff 
quotas.  Bound rates remained well above applied duties for most products. 
29. The share of petroleum and natural gas produc tion in Egypt's GDP increased from 4.6% in 
1998/99 to 11.6% in 2003/04;  the sector accounted for almost 40% of merchandise exports.  While 
production of crude oil had declined, natural gas had expanded rapidly and was increasingly replacing 
oil in domestic consumption, industrial usage, and power generation.  Foreign companies were 
required to establish joint-ventures with the state- owned Egyptian General Petroleum Corporation.  
30. Manufacturing contributed about 19% of Egypt's GDP.  The average tariff on manufactured 
products was 27.6%.  The private sector had contribu ted about 77% of manufacturing output in 2003. 
31. Services were the backbone of Egypt's econom y with some 48% of GDP.  Tourism and the 
Suez Canal fees were its most important sources of foreign exchange.  The future of tourism might depend on developments related to real and potential threats linked to terrorist activities. 
32. State participation remained important in va rious subsectors, including financial services, 
telecommunications, and air transport.  Banking refo rm was under way, including the privatization of 
one or more of the four state-owned commercial ba nks.  Privatization of the remaining four state-
owned insurance companies was planned for 2006.  WT/TPR/M/150 
 Page 9 
 
 
Conclusion 
33. Egypt's national policy objectives were aime d at achieving private-sector-led, outward-
oriented economic growth, by maintaining a stable  macroeconomic environment, creating a business-
friendly atmosphere, attracting FDI, and developing capital markets.  The core of Egypt's economic 
reform presupposed diversifying the economy away from resource-based activities.  Egypt's progress 
from a State-led economy to a more market-orien ted environment could vary occasionally, but the 
sense of purpose appeared constant. 
34. Without further macroeconomic reforms, Egypt 's economic growth was not expected to 
increase significantly compared with recent years.  Addressing the large public deficit was considered 
to be crucial, and measures taken to make the Central Bank more independe nt in monetary policy 
formulation should contribute to keeping infla tion low.  Continued favourable conditions in 
international oil and gas markets, as well as sust ained earnings from the Suez Canal and remittances 
from Egyptians working abroad would favour Egypt' s current account.  Income from tourism could 
vary. 
35. Egypt had liberalized its trade regime since its last TPR, reflecting its commitment to the 
multilateral trading system.  Continued structural and trade reforms (particularly further privatization) 
would contribute to better resource allocation, as well  as to enhanced predictability, and transparency 
of the trade regime.  This would help to lead the economy to a higher economic growth path.  Trading 
partners could help by providing increased mark et access for products and services of interest to 
Egypt.  Egypt would certainly benefit from a timely , balanced, and development-oriented result of the 
DDA negotiations. 
36. While taking note of Egypt's commitment to  update its SPS and TBT notifications, the 
discussant requested information about its plans to  update its notifications to the Committee on 
Agriculture.  He asked the Egyptian delegation to sh are with Members its assessment of the benefits 
of the Special Economic Zones Law in attr acting FDI and fostering domestic private 
entrepreneurship.  He also asked the delegati on for an evaluation of Egypt's performance in 
implementing its competition policy legislation.  He  requested an updated assessment of the progress 
of, and perspectives for the privatization process, as well as any comments on the implementation of the Industrial Modernization Programme in terms of  modernizing and attracting investments to the 
industrial sector. 
 WT/TPR/M/150 
Page 10  
 
IV. STATEMENTS BY MEMBERS 
37. The representative of the European Communities
 noted that well established bilateral 
relations had been strengthened through the EC -Egypt Partnership Agreement.  Egypt had 
experienced good economic growth, and the ec onomic outlook was positive.  Since 1999, the 
economic reforms had opened Egypt's market. Ope nness had been flanked by tax reforms and a 
revitalized privatization process.  Egypt had also  started some market opening and deregulation in 
services. These efforts had led to increased FDI.  Ho wever, further steps could be taken to ensure 
continued and sustainable growth, including:   fu rther simplifying the duty regime and eliminating 
tariff peaks;  continuing to lower and harmonize ta riffs;  more efficient government procurement;  
doing away with artificial arrangements, such as local-content requirements;  and financial services 
reform.  Egypt illustrated how a country could tu rn the economy and create a growing market;  its 
efforts were the same as those being discussed in the context of the DDA.  Ambitious reform was 
challenging, and sometimes difficult for domestic reasons .  In this respect, further market-opening and 
strengthening of fundamental rules in Egypt should go hand in hand with poverty alleviation, and a 
balanced social development.    
38. Egypt was important in global, regional, and local trade, and was convinced that global 
market-opening and strengthening of rules were the best way forward.  The EC shared Egypt's view 
that regional integration could stimulate and consolidate regional trade and foster economic 
development and at the same time establish a good platform for multilateral trade efforts aimed at 
better integrating developing countries into the multilateral trading system.  
39. The representative of Indonesia  referred to the longstanding tr ade relationship with Egypt.  
Indonesia hoped to fulfil any opportunity to provide  products and services of interest to Egypt.  
Indonesia appreciated Egypt's active role in the DDA, in  particular in the negotiations of interest to 
developing countries and LDCs.  At the regional level, Egypt had encouraged the African Group 
countries to pursue their benefits from the mu ltilateral trading system.  Although Egypt had 
eliminated customs service fees a nd charges, the remaining export legalization requirement (i.e. 
consular and legalization fee) created an obstacle to trade.  
40. The representative of Japan  said that the bilateral relationship with Egypt was close and 
cordial;  both countries had underlined the importan ce of trade and investment for their economy.  
Egypt had bound over 98% of its tariff lines, de creased the applied tariff rate, and improved its 
customs procedures.  The ratification of the IMF Article VIII and the adoption of the Competition Law would promote private business activities, as woul d abolishing the domestic currency obligation, 
and lowering corporate taxes.  There was room fo r improvement, for example in the procedures for 
government procurement and for letters of credit.  Enforcement of IPR protection was also important.  
Egypt was one of the most advanced developing countr ies in Africa, and played a leading role in the 
African Union and African Group.  The represen tative referred to Japan's policy for African 
development.  Japan hoped that Egypt would provide  a model for development of trade and economy. 
41. Egypt participated actively in the WTO, in pa rticular in the services negotiations, and in the 
information technology and communications area.  Referring to the ongoing negotiations towards the 
final outcome of the DDA, the representative said th at while Members sought to achieve their own 
purpose, they had to remember the common purpose of  achieving a more open, transparent, and rules-
based multilateral trading system.   
42. The representative of Australia
 referred to the productive bila teral trade relationship with 
Egypt.  Australia welcomed Egypt's progress in reinvigorating its economic reform programme, and 
encouraged it to build on its achievements, and to accelerate and broaden its reforms.  Australia was 
concerned about Egypt's remaining tariffs a nd non-tariff barriers.  Complex, opaque, and 
unpredictable regulatory systems still impeded business,  and discouraged trade and investment flows.  
The representative asked for further information a bout the outcomes of the review of mandatory  WT/TPR/M/150 
 Page 11 
 
 
standards, and on customs reforms and how these woul d reduce costs and delays for traders.  He also 
asked to what extent there could be better coor dination between the agencies responsible for setting 
and implementing food standards.  Australia appr eciated Egypt's commitment to the multilateral 
trading system, its leadership among developing coun tries, and its active participation in the DDA.  
43. The representative of Hong Kong, China  referred to the harmonious bilateral trade 
relationship with Egypt.  Hong Kong, China a ppreciated Egypt's commitment to the multilateral 
trading system and its support for and active partic ipation in the DDA.  Egypt's reform programme 
had already reaped substantial benefits.  Hong Kong, China welcomed Egypt's recent efforts in 
liberalizing its tariff regime through, inter alia,  reducing tariff rates, narrowing the gap between 
bound and applied rates, lowering the applied rates that exceeded their bound rates, and improving 
and simplifying its tariff structure.  Hong Kong, Ch ina also welcomed Egypt's elimination of its 
customs service fees and charges on imports, and enc ouraged Egypt to continue its efforts.  Hong 
Kong, China urged Egypt to fulfill its SPS and TBT no tification obligation.  It appreciated Egypt's 
liberalization reforms in services, and its GATS services offer.  
44. The representative of Switzerland  said that Switzerland was an important foreign direct 
investor in and trading partner of Egypt.  Swit zerland welcomed Egypt's measures to improve its 
business environment.  Egypt's gradual trade liberaliz ation at the unilateral a nd regional levels would 
contribute to simplifying and rationalizing its complex tariff system, thereby improving market access opportunities, and stimulating regional integration and economic development.  Driven by strong 
export growth, economic recovery had gained mome ntum.  The free-trade agreement between Egypt 
and EFTA States would contribute to the welfare a nd prosperity of their economies.  Switzerland 
welcomed Egypt's intellectual property legislation, covering all major areas of the TRIPS Agreement, 
and the adoption of its first competition law. 
45. The representative of Canada
 referred to the growing bilate ral trade with Egypt.  Canada 
hoped that the economic reform programme would be  implemented with vigour and perseverance.  
Canada congratulated Egypt for its overall efforts in  trade facilitation and in offering improved market 
access to certain products from LDCs.  However, lack of predictability and transparency were hurdles 
to doing business in Egypt;  improving its business climate could increase investment and growth opportunities.  Canada encouraged Egypt to im prove its procurement process, e.g. to make 
information more accessible, and provide clear guidelines for the decision-making process.  Transparent, rules-based reasons for cancelling tenders would also help to improve openness and 
predictability in Egypt’s business climate.   Although monopolistic practices had been reduced, many 
sectors still suffered from indirect monopoly.  Cana da sought further information on Egypt's SPS 
regime, and BSE measures.  Despite  challenges related to regional security and stability, Egypt had 
shown its commitment to meeting its WTO obligations. 
46. The representative of Colombia
 recognized Egypt's efforts in carrying out economic reforms 
to increase its competitiveness and foster its integr ation into the world economy.  Despite Egypt's 
privatization strategy, State participation was s till widespread.  Many liberalization initiatives had 
begun in services – Egypt's principal economic activity.  Egypt's WTO commitment to tackle obstacles to international trade was reflected in its active participation in the DDA negotiations, in 
particular in agriculture, implementation, and special  and differential treatment.  However, Egypt still 
had applied tariffs that were higher than bound ta riffs, tariff peaks, specific tariffs and tariff 
escalation, and sanitary and quality control measures in sectors of export interest for developing 
countries.  Colombia highlighted Egypt's efforts in implementing trade and economic policies towards 
productive employment, and improved living standards.  Their bilateral trade was just starting.   
47. The representative of the United States
 referred to the strong bilateral trade and investment 
relationship with Egypt, which would expand furt her under their Trade and Investment Framework 
Agreement.  The United States was impressed with Egypt's positive role in the DDA negotiations.   WT/TPR/M/150 
Page 12  
 
48. Since 1999, Egypt had undertaken notable re forms.  Recent steps included tax reform, 
floating the Egyptian pound, and further privatization steps.  Egypt had reduced the number of applied 
tariffs that exceeded bound rates, cut the numbe r of bands, and increased the number of duty-free 
lines.  Egypt had joined the Information Technolog y Agreement, and had adopted the GATS Fourth 
Protocol.  It had eliminated customs fees and charges on imports, and had begun to implement the 
Agreement on Customs Valuation in 2001.  However,  there were areas where Egypt could do more.  
For example, Egypt administered complex certificat ion and/or quality control requirements on many 
products, but was committed to bring its standards in to conformity with the TBT Agreement, and had 
accepted the WTO Code of Good Practice.  The United States wished to learn more about Egypt's ongoing initiatives in this context.  Egypt banned impor ts of processed foodstuffs with less than half 
their shelf-life remaining;  the United States asked whether Egypt planned to abandon these 
requirements and, if not, requested a description of their scientific justifica tion.  The United States 
looked forward to learning more about Egypt's plans on IPRs protection.  The United States urged Egypt to give notifications greater attention as it had not made any in some areas since 1999, and in some important WTO matters, it had made none si nce the entry into force of the agreement. 
49. The representative of the Separate Customs Te rritory of Taiwan, Penghu, Kinmen, and Matsu
 
applauded Egypt's efforts to improve the comp etitiveness of its business environment, and its 
commitments to change its trade legislation.  This  would create a better environment for greater trade 
and investment.  The representativ e wished to know whether there wa s a foreign ownership ceiling or 
a maximum duration in the exploration of petroleum and natural gas.  He also requested information 
on the rules and criteria applicable to product labe lling of imports.  Their economic partnership had 
great potential for development. 
50. The representative of the Republic of Korea  highlighted Egypt's macroeconomic efforts since 
1999, and referred to their bilateral economic a nd trade relationship.  Korea valued Egypt's 
commitment to the multilateral trading system, and its active participation in the WTO and the DDA.  
Although Egypt had bound ove r 98% of its tariff lines and had reduced tariff rates, the predictability 
of its tariff regime could be further enhanced.  Korea was interested in learning about any plans to 
further improve customs procedures.  Although Eg ypt had established an institutional and legal 
framework to protect IPRs, a lack of enforcement unde rmined the effectiveness of its IPR regime;  the 
representative asked about any plans to enhan ce IPR enforcement and increase public awareness 
about IPRs.  Korea welcomed measures to increas e transparency in procurement procedures, and 
enquired about any plans to enhance fair competition in procurement. 
51. The representative of Chile  said that Chile and Egypt attached high importance to the 
agriculture negotiations, and shared interests in servi ces and development.  Their  small bilateral trade 
could be the basis for further trade opportunities.   Egypt had bound over 98%  of its tariff lines.  
Although it had reduced its average MFN tariff and its average applied tariff, these rates remained 
high;  Chile hoped that Egypt would reduce them in the current negotiations.  The representative 
asked how Egypt had dealt with delicate sectors in b ilateral negotiations carried  out with some of its 
trading partners. 
52. The representative of Turkey  said that, although Egypt's macroeconomic policy performance 
was good, further reforms were needed.  Turkey co mmended Egypt for its active participation in the 
multilateral trading system and the DDA.  While E gypt sought a meaningful multilateral liberalization 
of agriculture, it could speed up its efforts toward s a more export-oriented approach in the NAMA 
negotiations.  Egypt was seeking to strike a good ba lance between its multilateral, regional, and 
bilateral engagements, and it had rarely used trade defence measures.  However, Turkey believed that 
its tariff structure was hindering its exports sector.  Turkey and Egypt had signed several agreements 
since 1988, but their bilateral trade had stagnated sin ce 1998.  Turkey was pleased to hear that Egypt's 
IPR legislation would be further consolidated.  Given their strong historical ties and geographical 
proximity, Egypt was a priority for Turkey to further boost their trade, and economic and investment 
relations.  WT/TPR/M/150 
 Page 13 
 
 
53. The representative of Brazil  referred to the growing bilate ral trade and improved institutional 
relations with Egypt.  Brazil commended Egypt for its average annual growth since 1999 and for its 
economic recovery supported by trade.  Positive st eps were being taken to curb the growing fiscal 
deficit.  Poverty reduction and a more equita ble distribution of income were the Egyptian 
Government's key social policy objectives;  attr acting FDI had been emphasized as a means to 
modernize local production standards and improve management systems.  Egypt was seeking to 
liberalize its trade regime on an MFN and preferential basis.  In this context, it had bound over 98% of 
its tariff lines, but its tariff system remained  complex.  Brazil commended Egypt for fully 
implementing the Customs Valuation Agreement, a nd its programme to ensure that its standards 
comply with international norms.  State owners hip remained extensive, but the privatization 
programme was aimed at achieving greater competition.   Egypt remained a net food importer.  Brazil 
supported Egypt's efforts to implement a long-te rm strategy for agriculture development. 
54. The representative of Mauritania  said that Egypt contributed positively to the WTO, and was 
fully committed to applying its agreements.  To ensure its trade policy success, Egypt had limited the 
role of the State to policies compatible with a market economy.  This had contributed to sustained 
annual growth since 1999, economic diversifica tion, and reduction in dependence on natural 
resources.  Egypt had undertaken measures to comp ly with its WTO commitments and better integrate 
into the multilateral trading system.  The regional an d global dimensions of its trade policy had been 
strengthened;  export revenues had more than doubl ed, and the index of openness had improved since 
1999.  A partnership agreement ha d been concluded with the EU, and the implementation of GAFTA 
and COMESA had been broadened.  The Government  was clearly undertaking steps to fully benefit 
from liberalization and to put it at the service of  development;  it deserved support to make the 
economy more competitive to absorb unemployment and raise living standards.  Egypt's progress 
would have a positive impact on all the Arab countries and on Africa. 
55. The representative of Tunisia  congratulated Egypt for its economic and trade liberalization 
efforts since 1999.  Egypt's institutional and legisl ative measures showed its determination to make 
further progress towards liberalization, and towards conformity with the WTO rules and principles.  
As part of its liberalization strategy, Egypt ha d concluded several regiona l and bilateral FTAs.  
Tunisia and Egypt enjoyed excellent relations, stre ngthened through a free-trade area agreement, and 
the Agadir Agreement;  both were also GAFTA memb ers.  Under the DDA, they shared opinions, and 
worked for the development dimension in the negotiations. 
56. The representative of Kenya  referred to bilateral trade with Egypt, which was one of its major 
trading partners.  Kenya welcomed Egypt's efforts to  liberalize its foreign trade and foreign exchange 
market, and to eliminate major obstacles to exports.  However, the impact on the sustainability of the 
reform process of challenges, such as populati on growth and unemployment, also needed to be 
addressed.  Kenya commended Egypt for integrati ng into the global economy, using multilateral, 
regional, and bilateral agreements to expand market  access;  as a result, trade was contributing to its 
economic recovery.  Kenya encouraged Egypt to si mplify its tariff regime, to reduce discretionary 
decisions in its administration, and to enhance transparency and predictability.  Kenya and Egypt 
shared the view that the negotiations were an im portant opportunity to realize the full potential of 
agriculture in its contribution to economic devel opment, particularly of developing countries.  
Regionally, Egypt had emphasized trade and investment w ith the rest of Africa.  It continued to play a 
constructive role in the WTO. 
57. The representative of Oman  said that Egypt was an important and active member of the Arab 
League and GAFTA.  Oman congratulated Egypt for its  efforts to liberalize its trade regime.  Egypt 
was committed to the multilateral trading system and participated actively in the WTO, in particular 
in the services, agricultural, and NAMA negotiations .  Egypt, and all developing countries, needed 
flexibility to liberalize trade in accordance with their level of development and economic needs. WT/TPR/M/150 
Page 14  
 
58. The representative of Jordan
 said that Egypt had moved towards economic liberalization.  
Reforms ensuring more transparency and predictability  in its trade regime were helping it to create a 
private sector-led economy.  Egypt's revitalized pr ivatization programme would help it to meet its 
economic objectives.  Economic i ndicators were speaking for themselves;  however, the high 
population growth might put more pressure on the economy, and even disrupt economic policies.  
Jordan and Egypt had close and strong trade relati ons.  Egypt's commitment to the multilateral trading 
system provided a good model for developing countri es in Africa.  Its unila teral liberalization in 
goods and services would help it to advance in the multilateral trading system.  Egypt's constructive 
participation in the DDA would enhance its economic policy objectives. 
59. The representative of Pakistan  commended Egypt for its tariff reforms.  Egypt was actively 
moving the DDA forward, by seeking ambitious cuts  in tariffs and more market access.  Its 
contribution was also very helpful for the work of  the G-20.  The representative asked whether Egypt 
considered that linking duty concessions to the perc entage of local-content requirement was compliant 
with TRIMS and national treatment obligations.  Recalling that Egypt had conduced 17 anti-dumping 
investigations, and imposed duty in 14 cases in five years, he asked whether Egypt might wish to have 
another look at its approach in this area.  
60. The representative of India  expressed India's appreciation for Egypt's active participation in 
the WTO, its commitment to multilateral trade liber alization, and its role in advancing the DDA.  
India especially commended Egypt for championing issu es of crucial interest to developing countries.  
Their common membership of the G-20 was the ba sis for close cooperation and collaboration in the 
agriculture negotiations.  Their bilateral trade had been growing over the years, and India was among 
the top five export destinations for Egypt. 
61. The representative of China  highlighted the strong momentum of the bilateral trade with 
Egypt.  China commended Egypt for its contributio n to the multilateral trading system, including its 
positive input in the DDA.  Although Egypt had liber alized its trade regime, there was room for 
further development and liberalization.  In par ticular, China hoped that Egypt would accelerate steps 
to simplify and streamline its customs clearance, and SPS and TBT procedures so as to facilitate trade 
flows. 
62. The representative of Malaysia  said that Egypt's economic reform programme had improved 
its economy since its last TPR.  Banking and fina ncial services reforms were under way.  Trade 
played an important role in Egypt's economy; and it had been the driver for growth.  Egypt was one of 
the few developing countries to enjoy a surplus in  its services account.  Malaysia congratulated Egypt 
for tabling its revised services offer.  The two countri es shared positions on many international issues.  
Malaysia encouraged Egypt to continue with its economic development efforts and urged its trading 
partners to help by providing increased market  access for products and services of interest to 
developing country Members. 
63. The representative of New Zealand  said that Egypt was an important trading partner in the 
Middle East.  She welcomed Egypt's active participation in the multilateral trading system, in 
particular in advancing issues of interest to developing countries.  Since 1999, Egypt had taken 
important steps towards liberalizing its trade regi me, through further opening to trade and foreign 
investment, and reducing and simplifying its tariff schedule.  While Egypt's sanitary and phytosanitary regime was still of concern, New Zealand supported Egypt's programme to harmonize 
its SPS regime with international standards;  this  would improve the efficiency and competitiveness of 
Egypt's economy and offer substan tial benefits to Egyptian cons umers.  Noting that certain 
agricultural imports were subject to tariffs that  exceeded their bound rates, and that a customs 
surcharge had not been listed in its tariff schedule,  New Zealand encouraged Egypt to rectify these 
issues.   WT/TPR/M/150 
 Page 15 
 
 
64. The representative of Uganda  referred to the close relations w ith Egypt.  As part of its export 
procedures, Egypt applied requirements for consulari zation and related fees.  The representative asked 
Egypt to explain, and update Members on:  (i)  wh y these were maintained;  (ii)  their costs per 
document or consignment;  and (iii) whether Egypt  intended to maintain these requirements or phase 
them out, and if so, what steps were being taken, and in what time frame.   
65. The representative of Egypt  appreciated the opportunity provided by the TPRB for Egypt to 
review its reform efforts.  The TPR was a key mechanism that helped Members to review their 
priorities and reform agenda in view of the co mments made by their main trade partners.  The 
discussions had revealed several priority areas, including:  the tariff regime;  import procedures and regulations;  standards and quality control;  IP R enforcement;  government procurement;  and 
notifications.  Documents would be handed to the Secretariat to update its Report. 
66. The Director of the Trade Policies Review Division
 (C. Boonekamp) said that any factual 
changes would be incorporated into the published ve rsion of the Report.  The definitive Report would 
be available online within two weeks. WT/TPR/M/150 
Page 16  
 
V. REPLIES BY THE REPRESENTATIVE OF EGYPT AND ADDITIONAL 
COMMENTS 
67. The representative of Egypt
 thanked the TPRB for giving Egypt the opportunity to review its 
progress, and highlight new opportunities for trade and investment.  The main concerns expressed by Egypt's trading partners would be considered in futu re reforms.  They included:  State control of the 
economy;  the modernization programme;  the tariff structure;  standards and quality controls;  SPS 
and TBT;  IPR;  government procurement;  customs procedures;  and notifications.  The representative highlighted that Egypt was determin ed to continue its reform programme on the 
economic, social, and political fronts;  was committed to the WTO, and would continue to play an 
active role in the DDA, as  the multilateral trading system was key in ensuring a fair, transparent, and 
predictable rules-based system;  and recognized  the remaining challenges, and was willing to 
implement measures to ensure the transparency of its administrative and regulatory regime, and to 
assure the smooth movement of trade and capital fl ows across its border.  The representative grouped 
her responses into three main categories:  (i) macroe conomic set-up, especially th e role of the State;  
(ii)  trade-related issues;  and (iii) the investment environment.   
(i) Macroeconomic set-up, and the role of the State  
68. After decades of State control and dominant position in the economy, the Government had 
sought to realign its strategy away from being a productive market player towards being a market regulator.  To achieve this goal, it intended to move  aggressively on its privatization programme.  The 
sale of over 100 state-owned enterprises, as well as Gove rnment stakes in joint corporations, had been 
announced.  A number of high profile deals were also in the pipeline:  two petroleum companies, an 
insurance company, and a stake in the Eastern Tobacco Company had been offered on the stock 
market.  The privatization of the first State bank, and the partial privatization of Telecom Egypt were 
expected before end-2005;  many sectors (e.g. ports, airports, telecom, educa tion, and banks) had been 
open to private participation.  Under the new Mini stry for Investment, a programme had been initiated 
to ensure a business-friendly environment.  As a re sult, the private sector role in the economy had 
increased.  To increase competition and contestab ility in the domestic market, several trade 
liberalization initiatives had been taken to open up the economy.  
69. To support the private sector in its new ma ndate, the Industrial Modernization Programme 
had been established to boost th e competitiveness of Egypt's industrial companies.  Among its 
achievements was the design of a National Qualit y Plan to harmonize Egypt's standards with 
international norms, and international recognition of the Egyptian Accreditation Council.  Moreover, 
Business Resource Centres had been established in the major industrial cities to grant technical 
assistance, quality, and training services to companies.   
(ii) Trade-related issues 
70. Ministerial Decree No. 1113 of 2003 guaranteed  that WTO Members would benefit from the 
lower rate, where applied rates exceeded bound leve ls.  In any case, the percentages of tariff lines 
concerned did not exceed 0.2% of total tariff lines.  Tariff peaks applied to less than 0.5% of tariff 
lines, mostly on alcoholic beverages and tobacco  products, for cultural reasons covered by GATT 
Article XX exceptions.  Presidential Decree No. 30 0 of 2004 had eliminated surcharge and service 
fees. 
71. With regard to Egypt's TBT and SPS regime, certification of origin was applied only to 
imports for direct trading purposes;  industria l and services users were exempt.  Labelling 
requirements were applied only to pre-packed products .  All mandatory standard s, which were applied 
for health, safety or environmental reasons, had b een harmonized with international ones;  their 
application was related to the weak consumer protec tion in Egypt.  Therefore, a review of quality and 
other control schemes would be considered, once th e Consumer Protection Law was in place.  All  WT/TPR/M/150 
 Page 17 
 
 
other standards were applied on a voluntary basis.  For transparency, all standards would be available 
on the website of Egyptian Organization for Standa rdization (EOS) by end-2005.  By mid-2006, a 
programme to harmonize voluntary standards with inte rnational norms would ha ve yielded results;  it 
was based on the TBT Code of Good Practice and ISO Harmonization Guide.  The application of 
standards for food imports (including shelf-life sta ndards) was under review;  the results would be 
announced periodically, and notified.  Milk and da iry product standards were harmonized with the 
Codex.  A list of certified facilities that had achieved ISO compatibility was available on the EOS website.   
72. The Customs Authority had initiated a simplif ication programme for its inspection and 
clearance procedures.  A one-stop-shop was operationa l in four ports, and was under preparation in 
three others.  In addition, risk-management syst ems had been implemented in some ports.  On 
sustainable development, Egypt was signatory to a large number of environmental agreements and 
protocols and took its commitments seriously.  Therefore, prior approval by the Ministry of Environment was required for new factories to operate.  
73. With regard to notifications, Egypt recognized that these were indeed a weak spot in its 
system.  The technical and administrative details for a mechanism for WTO notification was being 
finalized.   
74. Egypt's 2002 IPR Law and its articles mirrored th e TRIPS Agreement.  The Government had 
undertaken public awareness campaigns, and would continue to do so.  Technical assistance was 
thereby needed to improve IPR enforcement.   
75. Egypt had not signed the Agreement on Governme nt Procurement, and had not made market 
access commitments.  However, it had recently review ed its best-practices codes on transparency of 
tendering and biding procedures.   
(iii) Investment policies  
76. The Investment Authority had transformed itself from an investor regul ator to an investor 
facilitator and promoter.  A one-stop-shop for co mpany establishment had been operating since 2005, 
and companies were established within three da ys.  The Investment Authority had started a 
programme to simplify procedures aimed at ensuring transparency.  These efforts were an example of 
a general positive attitude towards privat e domestic and foreign investors.  
77. In June 2005, a new Tax Law had reduced corpor ate and income taxation to a flat fee of 20%, 
and put an end to the regime of extending five-, ten- , and 20-year tax exemptions to certain activities.  
All previously granted tax exemptions had been prese rved for the duration of the original licence.  No 
conditions or restrictions based on nationality existed in investments. 
78. Recent amendments to the Company Law and the Investment Law were made to comply with 
the changes introduced in the Tax Law.  These amendments closed the distance between the different 
investment regimes by according investors, under each law, the benefits accorded by the other law.  
They also allowed the denomination of the share capital of Egyptian companies in foreign currency 
and the boards of directors to be entirely formed  by non-shareholders.  They also unified the 
procedures for establishing different kinds of companies. 
79. Some important developments had taken place in foreign ownership of land and real estate.  
For investment purposes, the above-mentioned amendments allowed Egyptian companies – 
irrespective of the nationalities and percentage of representation of their shareholders – to fully own 
land.  This applied throughout Egypt, except in  areas determined by decree of the Council of 
Ministers.  Foreigners could own real estate prope rties with no limitation or  additional procedures in 
Egypt's key tourist areas.   WT/TPR/M/150 
Page 18  
 
80. The reforms in the investment environment still needed to go further, including applying the 
Competition Law, announcing new rules to make land available for industrial use, reactivating the 
Special Economic Zones Law, and further facilitating procedures for business licensing as well as for dispute settlement.   
81. Egypt still faced difficulties in meeting interna tional standards, rules, and requirements.  
Therefore, well-designed bilateral or multilateral te chnical assistance in training and capacity building 
was required to allow Egypt to adjust to, and comply  with, international norms.  A certain quantum of 
"policy space" was also needed to help local i ndustries achieve a degree of global competitiveness.  
82. The discussant
 knew how important it was for Egypt to have periodical reviews.  There was 
still much to be done in adjusting some segments of its economy, bringing them into line with new 
requirements, and creating an adequate normative st ructure.  Since Egypt wished to be a global 
market player, getting steady flows of investment a nd enhancing transparency were important.  Egypt 
announced to Members some present and future measur es that would be fully transparent.  This was 
encouraging as transparency was important for business.  Egypt was going through a new wave of privatization, and had initiated a simplification programme for inspection and clearance procedures.  
These were important steps in the right direction.   The discussant encouraged Egypt to update its 
notifications and to enhance the pred ictability of its tariff regime.   
83. Developing countries' need for technical assistan ce could never be exaggerated, nor could the 
importance of generating flows of  technical cooperation among countri es and within the international 
institutions.  The discussant believed that the WTO should be doing much more in this respect.  As 
Members were moving on to new commitments, there would be a need for further technical assistance 
and capacity building.  The discussant encouraged Members to request technical assistance.  He 
believed that the discussions and responses from Egyp t had helped to generate trust and create a 
climate of transparency in its trade relations.  Memb ers needed to protect and enhance transparency if 
they were to protect and enhance the multilateral trading system. 
84. The representative of Rwanda
 referred to bilateral and regiona l relations with Egypt.  Egypt 
was actively committed to regional integration as well as to the WTO.  Therefore, the main pillar of 
its economic strategy was integrating into th e global economy.  Egypt had put in place trade 
facilitation reforms as well as services liberaliza tion.  Rwanda appreciated Egypt's other enabling 
policies to enhance its trade performance.   
85. The representative of Australia  was pleased with Egypt's continued reform efforts.  Australia 
welcomed the climate of transpar ency that was being built, and Egypt's plans to notify measures under 
the TBT or SPS Agreements.  Australia urged Egypt to improve and reform the standards 
development process, particularly in food and agricultu ral products (e.g. shelf-life, fat content, etc.).  
Australia requested details on Egypt's steps to impr ove testing procedures.  It encouraged Egypt to 
continue to work on the development of risk-based  testing procedures in order to facilitate trade. 
86. The representative of the United States  requested additional information on the review of 
mandatory shelf-life standards.  This would help th e United States to think through Egypt's request for 
technical assistance.   The United States also ask ed for more information on any future plans on the 
restructuring of the insurance sector. 
87. The representative of the Republic of Korea  referred to practices in government procurement 
limiting the participation of developing countries re quiring prior experience.  He wished to know 
whether Egypt had plans to change these requirements.   
88. The representative of Egypt  said that, as a result of Egypt's harmonization of mandatory meat 
standards, fat content in meat ha d become a voluntary standard.  T esting standards related to some 
products (like cereals) had already been harmonized ;  Egypt was seeking to harmonize other testing  WT/TPR/M/150 
 Page 19 
 
 
standards as well.  Shelf-life requirements were  related to stability of products, and linked to 
consumer protection.  Egypt's Cons umer Law was to be approved;  in  parallel, the shelf-life issue was 
being studied.  This was one of the issues on whic h Egypt had asked for technical assistance.  The 
review of the shelf-life requirements and the appr oval of the Consumer Law would be completed by 
end-2005.   
89. The reactivated privatization process was fully transparent.  Sales were made by way of 
closed envelopes, tender offers, or direct aucti on.  Multinational companies and investment banks 
were participating in this process.  Sectors never c onsidered for privatization, such as banks, insurance 
companies, telecommunication, petroleum and petr o-chemicals, tobacco, aluminium, and container 
handling, were now open for privatization.  The G overnment was keen to make this privatization 
process not just a selling exercise but one that al so maximized Egypt's return.  The process was 
building momentum.  
90. With regard to limitations on invitations in government procurement, particularly regarding 
past experience, the representative noted that calls for tenders from specific suppliers usually occurred 
only for technically complex projects;  this did not intend to exclude newcomers into the market but to 
ensure that tenderers were qualified to carry out the project. 
91. The representative of Switzerland  appreciated Egypt's determination to continue its reform 
programme.  Switzerland was looking forward to the conclusion of an agreement of non-verification 
of non-preferential certificates of origin on the basis of reciprocity. WT/TPR/M/150 
Page 20  
 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
92. We have conducted this third Trade Policy Re view of Egypt in a thorough and highly 
informative manner.  Through our dialogue with th e Egyptian delegation we have obtained a better 
understanding of the developments in Egypt's trade po licies and practices over the last six years.  Our 
discussion has greatly benefited from the presence of a large Egyptian delegation, led by Dr. Samiha 
Fawzy, the insightful comments of our discussant,  Ambassador de Seixas Corrêa, and the active 
involvement of a large number of Members. 
93. Members conveyed their condolences to the Egyptia n delegation for the terrorist attack in 
Sharm el Sheikh.  They appreciated Egypt's firm  commitment to and active participation in the 
multilateral trading system, including the Doha Development Agenda.  Noting that Egypt also 
participates in regional and bilateral trade agre ements, Members enquired about the preferences 
available under these arrangements.  Members acknow ledged Egypt's macroeconomic and structural 
reform efforts, including the privatization progra mme and the liberalization of the exchange rate 
regime.  Trade has been an important motor for Egypt's current economic recovery. Nonetheless, 
while inflation rates have been brought under control,  fiscal deficits have remained high, and growth 
rates have been too low to have a significant impact on poverty and unemployment. 
94. On trade policies, Members generally comme nded Egypt on its unilateral tariff reduction 
since its last Trade Policy Review in 1999.  While they congratulated Egypt for its efforts to reduce 
the number of tariff lines where applied rates exceed  the corresponding bound rates, they urged it to 
bring the remaining lines into conformity with  its WTO obligations.  Various Members also 
encouraged Egypt to simplify its tariff structure by, inter alia , reducing its tariff peaks of up to 
3,000%.  Members welcomed Egypt's efforts to  streamline customs procedures, including the 
implementation of the WTO Agreement on Customs Valuation, but some expressed concerns about 
the continuing use of customs surcharges and the discretionary behaviour of customs officials.  
Members sought clarification about standards, technical regulations (including shelf-life 
requirements) and mandatory quality controls, a nd asked Egypt to enha nce transparency and 
efficiency in the formulation and enforcement of such measures.  Members also invited Egypt to 
resume its notifications to the WTO Committees on Agriculture, SPS, and TBT. 
95. Members noted the vital and growing importance of services for the Egyptian economy.  
They expressed appreciation for reforms in the servi ces sector, in particular in financial services and 
telecommunications, and were interested in plans for further privatization and dismantling of MFN 
exemptions.  Members also asked questions on othe r issues, notably:  enforcement and protection of 
intellectual property rights, local-content require ments, government procurement, contingency 
measures, the investment regime, agriculture, and energy. 
96. Members appreciated the responses provided by the Egyptian delegation. 
97. In conclusion, it is my feeling that the keen  interest shown by Members in this Review 
reflects the important role that Egypt plays in th e multilateral trading system.  The Review has drawn 
attention to steps taken by Egypt in liberalizing its trade regime, to the challenges it faces, and to areas 
in which policy reforms could be enhanced.  I a dvocate that Members support Egypt in its reform 
efforts by providing further market access to its goods and services, and by being attentive to its requests for technical assistance. 
__________