WORLD TRADE  
ORGANIZATION   
WT/REG177/3  
26 June 2012 
 (12-3395) 
Committee on Regional Trade Agreements  
  
 
 
 
FACTUAL PRESENTATION 
 
Euro-Mediterranean Association  
Agreement between  
the European Union and Egypt 
(Goods) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the considera tion of the Euro-Mediterranean Association 
Agreement between the European Union a nd Egypt has been drawn up by the WTO 
Secretariat on its own responsibility and in full consultation with the Parties.  The 
report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mech anism for Regional Trade Agreements 
(WT/L/671).  
 
Any technical questions arising from this report may be addressed to Ms. Jo-Ann Crawford (tel: +41 22 739 5422).  WT/REG177/3 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
  Page 
 
I.  TRADE ENVIRONMENT 1  
A.  MERCHANDISE TRADE  1  
II.  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 4  
A.  BACKGROUND INFORMATION  4  
III.  NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE 
AGREEMENT 5 
A.  IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  5  
1.  General provisions 5  
2.  Liberalization of trade and tariff lines 6  
3.  Liberalization by the EU 7  
4.  Liberalization by Egypt 8  
5.  New Concessions granted in 2010 9  
6.  Tariff-rate quotas 11  
B.  RULES OF ORIGIN  12  
C.  EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  14  
D.  REGULATORY PROVISIONS OF THE AGREEMENT  14  
1.  Standards 14  
2.  Safeguard mechanisms 14  
(a)  Global safeguards 14  
(b)  Bilateral safeguards 14  
(c)  Protection of infant industries 15  
(d)  Balance of Payments Measures 15  
3.  Anti-dumping and countervailing measures 15  
4.  Subsidies and Countervailing Measures 15  
5.  Other regulations 15  
(a)  Customs-related procedures 15  
(b)  Competition policy 16  
(c)  State monopolies 16  
(d)  Government Procurement 17  
(e)  Intellectual Property 17  
(f)  Cooperation 17  
(g)  Trade in Services 18  
E.  SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  18  
IV.  GENERAL PROVISIONS OF THE AGREEMENT 18  
A.  CURRENT PAYMENTS AND CAPITAL MOVEMENTS  18  
B.  EXCEPTIONS  18  
C.  ACCESSION AND TERMINATION  18  
D.  INSTITUTIONAL FRAMEWORK  19  
E.  DISPUTE SETTLEMENT  19  
F.  RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  19  
ANNEX I  21  
ANNEX II  25  
  WT/REG177/3 
 Page 1 
 
 
  Key Facts 
 
Parties to the Agreement:   
The European Union (Austria;  Belgium;  Bulgaria;  Cyprus;  
Czech Republic;  Denmark;  Estonia; Finland;  France;  Germany;  
Greece;  Hungary;  Ireland;  Italy;  Latvia;  Lithuania;  Luxembourg; 
Malta;  Netherlands;  Poland;  Portugal;  Romania;  Slovak Republic;  Slovenia;  Spain;  Sweden; United Kingdom), and Egypt. 
 
Date of Signature:  25 June 2001 
 
Date of Entry into Force:  1 June 2004 
 Date of Notification:   3 September 2004  
 
 
I. TRADE ENVIRONMENT 
A. MERCHANDISE TRADE  
1. The Euro-Mediterranean Association Agreemen t (hereafter "the Agreement") between the 
European Union (hereafter, the EU) and Egypt falls within the framework of the EuroMed Partnership, 
launched at the Barcelona Conference in 1995, whic h aimed to create a Euro-Mediterranean free trade 
area by 2010 liberalizing trade between both th e EU and Southern Mediterranean countries and 
among Southern Mediterranean countries themselves.  The original objective was to conclude a free 
trade area covering essentially trade in goods, but this has been expanded to include services and 
investment, public procurement and regulatory areas.1   
2. The EU is the world's largest exporter and importer of merchandise goods (16.2% of world 
exports and 17.4% of imports in 2009) and is also Egypt's largest trading partner accounting for 
27.1% of Egypt's imports and 35.4% of its globa l exports in 2009.  Egypt ranked in 2009 as the 
world's 62nd largest exporter and 47th largest importer and is the EU's 21st largest trading partner in 
terms of exports (accounting for 1.1% of the EU's global exports) and its 36th largest trading partner in 
terms of imports (accounting for 0.5% of its imports in 2010).2   
3. Charts I.1 and I.2 show global and bilateral tre nds in merchandise trade of the Parties during 
the period surveyed.  The EU has been running a growing trade de ficit with the world since 2003 
(until 2008), but maintains a growing (excluding 20 06) trade surplus with Egypt.  Egypt has run a 
steady trade deficit with the world over the period with imports sharply rising in 2008.   
                                                      
1 According to the Parties, significant progress has been made towards this objective although the FTA 
is not yet complete in terms of both geographical coverage and scope.  In the case of South-South relations, four countries (Egypt, Jordan, Morocco and Tunisia) have concluded the Agadir Agreement, in force since 2007 and 
open to other Arab Mediterranean countries.  Turkey an d Israel have concluded free trade agreements with 
several Mediterranean countries.  The network of Association Agreements between the EU and Southern Mediterranean partners is expected to be completed so on.  These agreements cover mainly trade in goods and 
are currently being complemented w ith agreements to liberalize additional trade in agricultural products, 
processed agricultural products and fish and fishery products (bilateral agreements have been concluded with Egypt, Jordan, Morocco, Israel and the Palestinian Auth ority);  negotiations to liberalize trade in services 
(on-going negotiations with Egypt, Morocco, Tunisia and Israel);  protocols on the establishment of bilateral 
dispute settlement mechanisms for trade matters (with Tu nisia, Egypt, Lebanon and Morocco);  and the single 
regional Convention on the Pan-Euro-Mediterranean rules of origin.   
2 WTO Statistics Database, Trade Profiles. WT/REG177/3 
Page 2  
 
  4. Charts I.3a and I.3b show the Parties' structure of merchandise trade according to broad 
HS Sections for two time periods:  before the Ag reement entered into force (2001-2003);  and for the 
last three years for which data are available (2008-2010).   
5. Egypt's imports from the EU closely reflect th e pattern of the EU's global exports, with 
machinery, chemicals, and base metals forming th e main import categories in the two periods.  
Vehicles, the EU's second largest export category, ha s risen from an average of 3.3% (in 2001-2003) 
in Egypt's imports from the EU to 6.8% (in 2008-201 0).  The EU's three largest categories of imports 
from Egypt (minerals, base metals and textiles) accounted on average for 69.8% of its imports from 
Egypt in the three years prior to entry into force of the Agreement (2001-2003), rising to 70.6% in the 
latest period (2008-2010).  
0510152025
05001,0001,5002,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010€ billion € billionChart I.1 - EU: Merchandise imports from and exports to world and 
Egypt, 2000-2010
Note: Data for 2000-2003 is EU(15); 2004-2006 is EU(25); 2007-2010 is EU(27).
Source: Eurostat statistical database.Imports from Egypt
Exports to EgyptTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
 
 
01020304050
01020304050
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010€ billion € billionChart I.2 - Egypt: Merchandise imports from and exports to world and EU, 
2000-2010
Source : UNSD, Comtrade database.Imports from EU
Exports to EUTotal imports
Total exportsLeft hand scale: Right hand scale:
Note: Data for 2000-2003 is EU(15); 2004-2006 is EU(25); 2007-2008 is EU(27).
  WT/REG177/3 
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  42.2 
16.3 8.2 7.3 5.9 3.0 2.5 1.7 13.1 
32.1 
17.7 8.9 5.9 5.5 5.3 3.8 3.6 3.6 3.5 3.3 6.9 30.3 
15.5 
13.6 5.7 4.5 4.4 3.9 3.3 3.0 2.7 2.6 10.4 
26.7 
15.5 
9.6 7.2 7.1 5.4 4.2 3.3 2.9 2.7 2.6 2.5 10.2 
17.3 
14.7 
9.6 
9.0 6.4 5.8 4.9 4.4 4.2 3.0 2.5 2.2 2.1 13.7 42.2 
18.6 9.0 5.8 5.5 5.1 3.3 2.4 1.9 6.2 Chart I.3a
EU and Egypt: product composition of me rchandise trade, annual average (2001-2003)
EU's imports from Egypt
Egypt's imports from EUPer cent
Total:  € 3.2 billion
Total:  €3.4 billionTotal:  €1,003 billion
Total: €12.3 billionTotal:  €988 billion
Total:  €5.0 billionEU's global exports
Egypt's global exportsEU's global imports 
Egypt's global imports 
Animal products
Vegetables
Prepared foodsMineral products
Chemicals
Plastics, rubberRaw hides
Articles of 
wood
Wood pulpTextiles
Stone, cement
Precious stonesBase metals
Machinery
VehiclesOptical
Miscellaneous
Other
 
36.3 
10.5 
10.3 10.0 9.4 3.9 3.5 3.5 3.1 2.6 6.7 
28.7 
14.5 
13.6 9.0 6.8 4.8 4.8 4.0 3.4 2.1 2.1 6.1 29.1 
15.3 
13.9 7.2 6.1 4.6 3.9 3.4 2.7 2.5 2.1 9.3 
28.3 
21.9 
8.1 6.7 6.1 5.6 3.4 2.6 2.6 2.5 2.4 2.4 7.4 
18.0 
16.0 
13.3 
9.5 8.3 6.8 5.5 5.2 3.3 3.0 2.5 2.3 6.1 51.5 
10.6 9.4 8.5 6.9 4.2 2.2 6.7 Chart I.3b
EU and Egypt: product composition of m erchandise trade, annual average (2008-2010)
EU's imports from Egypt
Egypt's imports from EUPer cent
Total:  € 7 billion
Total:  €11 billionTotal:  € 1,428 billion
Total: €36 billionTotal:  €1,252 billion
Total:  €18 billionEU's global exports
Egypt's global exportsEU's global imports
Egypt's global imports
 WT/REG177/3 
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  II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. B
ACKGROUND INFORMATION  
6. The Agreement was signed on 25 June 2001 by the EU and Egypt3;  it entered into force on 
1 June 2004, although the trade provisions have been  applied on a provisional basis since 1 January 
2004.4  The Agreement replaced the 1977 Co-operation Agreement in force between the Parties and 
the Agreement between the European Coal and Steel Community and Egypt. 
7. The goods aspects of the Agreement were notified to the WTO by the Parties on 3 September 
2004 under Article XXIV of the GATT 1994 and th e Understanding on the Interpretation of 
Article XXIV of GATT 1994 (WT/REG226/N/1).  The te xt of the Agreement is available, together 
with its related schedules, annexes a nd protocols, on the following websites:5 
 http://eur-lex.europa.eu/LexUriServ/LexUr iServ.do?uri=OJ:L:2004:304:0039:0208:EN:PDF .   
 http://www.tas.gov.eg/English/EU%20P artnership/Agreement/Agreement  
8. The Agreement is composed of eight titles, six annexes, five protocols, eight joint 
declarations and an agreement in the fo rm of an exchange of letters, as follows6: 
Box II.1:  Table of Contents of the Agreement 
Title I  Political Dialogue 
Title II Free Movement of Goods 
Title III Right of Establishment and Supply of Services Title IV Capital Movements and Other Economic Matters 
Title V Economic Cooperation 
Title VI       Chapter 1  Dialogue and Co-operation on Social Matters 
     Chapter 2  Co-operation for the Prevention and Control of Illegal Immigration and other Consular Issues 
     Chapter 3  Co-operation in Cultural Matters, Audio-Visual Media and Information  Title VII Financial Cooperation 
Title VIII Institutional, General and Final Provisions 
Annex I Agricultural and processed agricultural products  Annex II Industrial products  
Annex III Industrial products 
Annex IV Industrial products Annex V Industrial products 
Annex VI Intellectual property rights  
Protocol 1 Imports into the EU of agricultural products originating in Egypt Protocol 2 Imports into Egypt of agricultural products originating in the EU 
Protocol 3 Arrangements applicable to processed agricultural products 
Protocol 4 "Originating products" and methods of administrative cooperation 
Protocol 5 Mutual assistance between administrative authorities in customs matters 
Joint Declaration on Article  3(2) of the Agreement 
Joint Declaration on Article 14 of the Agreement 
                                                      
3 The Member States of the EU at the time of the signature were Austria, Belgium, Denmark, Finland, 
France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spai n, Sweden and the United 
Kingdom. 
4 At the time of entry into force, ten new countrie s had joined the Agreement, as new members of the 
EU.  These countries are : Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the 
Slovak Republic and Slovenia.  On 1 January 2007, Bu lgaria and Romania also acceded the Agreement as new 
members of the EU. 
5 The text of the Agreement can also be found in WTO document WT/REG177/1. 
6 In addition the European Union has made unilateral declarations on Articles 11, 19, 21 and 34 of the 
Agreement.  WT/REG177/3 
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  Joint Declaration on Article 18 of the Agreement 
Joint Declaration on Article 34 of the Agreement 
Joint Declaration on Article 37 of , and Annex VI to, the Agreement 
Joint Declaration on Article 39 of the Agreement 
Joint Declaration on Title VI, Chapter 1, of the Agreement 
Joint Declaration on the protection of data 
Declaration by the EU on Article 11 of the Agreement 
Declaration by the EU on Article 19 of the Agreement 
Declaration by the EU on Article 21 of the Agreement 
Declaration by the EU on Ar ticle 34 of the Agreement. 
Exchange of Letters concerning imports into the EU of fresh cut flowers and flower buds  
Source:  Euro-Mediterranean Association Ag reement between the EU and Egypt. 
9. The Agreement provides for the Parties to establish a free trade area over a transition period 
of twelve years (Article 6).  However, in the case of Egypt, the Agreement provides for a phased elimination over a maximum period of 15 years fo r the import of certain industrial products.   
III. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE 
AGREEMENT 
A. I
MPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
10. Each Party accords national treatment to like pr oducts in respect of all measures or practices 
of an internal fiscal nature (Article 20).  Produc ts originating in Egypt cannot be accorded treatment 
more favourable than that accorded between the Me mber States of the EU themselves (Article 19). 
11. The Parties may not increase any existing, or adopt any new, customs duty on imports.  No 
new quantitative restrictions on imports may be intr oduced, and any existing quantitative restrictions 
are to be abolished from the date of  entry into force (Article 17).   
12. Tariff liberalization covers Chapters 1-97 of the Harmonized System (HS).  Market access 
provisions for the elimination of customs duties on in dustrial goods are contained in Articles 8 and 9.  
In the case of the EU, imports of industrial goods originating in Egypt (with the exception of the 
products listed in Annex I which are treated as agricultural products under the Agreement) are 
duty-free and free of quantitative restrictions from the Agreement's date of entry into force.   
13. In the case of Egypt, the elimination of duti es on industrial goods takes place in accordance 
with the lists contained in Annexes II-V, which prov ide for the progressive elimination of duties over 
three, nine, 12 and 15 years, respectively.  Cust oms duties on imports of industrial products not 
contained in Annexes II-V are to be abolished in acco rdance with the relevant schedule on the basis of 
a decision of the Association Committee (Article 9).7     
14. Article 9.6 provides that in the event of serious  difficulties for a given product, the relevant 
timetables for tariff liberalization may be reviewed by the Association Committee on the 
understanding that the schedule for the produc t concerned may not extend beyond the maximum 
transition period of fifteen years .  If the Association Committee h as not taken a decision within 
30 days of its application to revi ew the timetable, Egypt may suspend the timetable provisionally for a 
period that may not exceed one year.8 
                                                      
7 According to the Parties, this schedule has not yet been approved by the Association Committee. 
8 According to the Parties, this provision has not been invoked. WT/REG177/3 
Page 6  
 
  15. The base rates for the elimination of duties are the WTO bound rates or, if lower, the applied 
rates in force as of 1 January 1999.  In the event that a tariff reduction is applied on an erga omnes basis, the reduced rate applies (Article 18). 
16. Protocols 1 and 2 provide for the reduction or  elimination of duties on imports of non-
processed agricultural imports (for the most part w ithin tariff rate quotas) into the EU and Egypt, 
respectively.  Protocol 3 lays down the liberaliza tion provisions that apply to processed agricultural 
products.
9   The Parties agree to consider the further liberalization of trade in agricultural products 
from the beginning of the fourth year of implem entation, i.e. 1 June 2008 (Article 15).  Any 
modifications of concessions on agricultural produc ts are to be communicated to the Association 
Committee.  According to the Joint Declaration on Ar ticle 14, the Parties agreed to negotiate with a 
view to granting each other concessions in the trade of  fish and fishery products no later than one year 
after the signature of the Agreement. 
17. An agreement in the form of an Exchange of Letters between the Parties on reciprocal 
liberalization on agricultural, processed agricultura l and fish and fishery products was signed on 
28 October 2009 and entered into force on 1 June 2010.  The new agreement is based on a negative 
list approach:  everything is duty-free with the ex ception of a few sensitive products for which market 
access is granted in the form of TRQs and/or seas onal calendars.  Further details can be found in 
Section II.B.1(e) of this Report. 
2. Liberalization of trade and tariff lines  
18. Tariff and trade liberalization for both Parties is detailed in Tables II.1A and II.1B below.  In 
the case of the EU, liberalization shown in this section is based on the concessions in the FTA as 
originally negotiated, i.e. not including the concessi ons on processed agricultural and fish and fishery 
products in force since 2010 (which are described more  fully in Section II.B.1(e) of this Report).  In 
the case of Egypt, the concessions negotiated in 2010 are included in the tables and charts of Egypt in 
this section. 
19. In 2004, when the Agreement entered into for ce, 2,879 lines or around a quarter of the EU's 
tariff, were already subject to duty free treatment on an MFN basis.10  As a result of the Agreement an 
additional 7,115 lines (68.8% of the total), corres ponding to 51.3% of the EU's imports from Egypt 
during 2001-03, became duty free for imports from Egypt in 2004;  352 tariff lines, or 3.4% of the EU's tariff will continue to be subject to duty fo r imports from Egypt, corresponding to 4.7% of its 
imports from Egypt during 2001-03. 
Table II.1 
Tariff elimination commitments under the Agree ment and corresponding average trade values 
A. EU 
Duty phase-out period Number of 
lines % of total lines in EU's 
tariff schedule Value of EU's imports from 
Egypt (2001-2003) 
in million € % of EU's total imports 
from  
Egypt 2001-2003 
MFN duty free (2004) 2,879 27.8 1,363.4 44.0 
2004 7,115 68.8 1,588.9 51.3 
Remain dutiable 352 3.4 145.9 4.7 
Total 10,346 100.0 3,098.2 100.0 
Note: Based on the HS 2002 nomenclature. 
Source :  WTO estimates based on data provided by EU. 
                                                      
9 Protocol 3 was deleted in the framework of the new agreement for agriculture products (see 
Section II.B.1(e) of this Report). 
10 The EU's applied tariff in 2004 consisted of 10,2 76 lines at the HS 8-digit level.  Of these, 91% 
(9,353) were subject to ad valorem  rates.  Of the remaining 923 lines, 633 were subject to specific duties, 
217 compound duties and 73 mixed duties.  In addition, 70 lines are subject to other forms of duty.  For lines 
with mixed or compound duties, the Secretariat has used the ad valorem  part of the duty in its calculations.    WT/REG177/3 
 Page 7 
 
 
  20. When the Agreement entered into  force for Egypt in 2004, 3.7% or 283 lines were free of 
duties.11  Upon entry into force, Egypt removed duties on 223 tariff lines for imports from the EU 
corresponding to 3% of the tariff.  Further tariff lib eralization was due to take place on an annual basis 
up to 2011 and then roughly every two years until 2019 .  At the end of ten years of implementation 
(2013) Egypt will have removed du ties on 5,292 tariff lines (70.1% of  the tariff), corresponding to 
79.8% of its imports from the EU during 2006-08.  By the end of implementation, Egypt will have 
liberalized 7,342 tariff lines (97.3% of the tariff), corresponding to 99.9% of its imports from the EU 
during 2006-08. 
Table II.1 
Tariff elimination commitments under the Agree ment and corresponding average trade values 
B. Egypt 
Duty phase-out period Number of lines % of total lines in 
Egypt's tariff schedule Value of Egypt's 
imports from EU 
(2006-2008) 
in million € % of Egypt's total 
imports from  
EU 2006-2008 
MFN duty free (2004) 283 3.7 53.2 2.6 
2004 223 3.0 147.0 7.3 
2006 54 0.7 0.3 0.0 
2007 2,261 30.0 1,2465.5 61.7 
2008 6 0.1 0.0 0.0 
2009 3 0.0 0.0 0.0 
2010 745 9.9 0.3 0.0 
2011 206 2.7 0.0 0.0 
2013 1,511 20.0 166.5 8.2 
2015 1,869 24.8 404.7 20.0 
2016 161 2.1 1.9 0.1 
2019 20 0.3 0.0 0.0 
Remain dutiable 206 2.7 0.1 0.0 
Total 7,548 100.0 2,020.5 100.0 
Note: Based on the HS 2002 nomenclature. 
 
Source :  WTO estimates based on data provided by Egypt. 
 
3. Liberalization by the EU 
21. Further details of tariff liberalization by the EU under the Agreement according to HS Section 
are given in Table II.2.  Following implementation of the Agreement in 2004, the tariff lines which continue to remain dutiable are for the most part agricultural products in Sections I-IV.  Two products 
in HS Section VI – Chemicals and chemical products – also remain subject to duties. 
Table II.2 
EU: Tariff elimination under the Agreement, by HS section  
HS section and description  MFN 
average
%Total 
No of 
linesNumber of duty-free linesRemain 
dutiable  Avg. Final Tariff 
(Dutiable) 
% MFN 2004 
I Live animals and animal products 10.1 813 82 697 34 0 + EA 
II Vegetable products 6.4 548 140 285 123 10.2 
III Animal or vegetable fats and oils 6.0 128 21 97 10 7.7 
IV Prepared foods etc. 15.0 838 92 563 183 20.6 
V Minerals 0.9 256 168 88   
VI Chemicals and chemical products 4.1 1,309 364 943 2 0 + EA 
VII Plastics and rubber 4.5 375 84 291   
VIII Hides and skins 2.9 158 48 110   
IX Wood and articles 2.8 190 86 104   
X Pulp, paper etc. 0.0 257 257    
XI Textiles and textiles artic les 8.0 1,277 52 1,225   
XII Footwear, headgear 8.0 114 2 112   
XIII Articles of stone 3.8 258 38 220   
Table II.2 (Cont'd) 
                                                      
11 Egypt's applied tariff in 2004 contained 7,548 ta riff lines at the HS 8-digit level.  Of these, 
7,528 lines or 99.7% of the tariff was ad valorem , while 20 lines had specific duties. WT/REG177/3 
Page 8  
 
  HS section and description  MFN 
average
%Total 
No of 
linesNumber of duty-free linesRemain 
dutiable  Avg. Final Tariff 
(Dutiable) 
% MFN 2004 
XIV Precious stones, etc. 0.7 63 48 15   
XV Base metals and base metals products 1.7 1,117 622 495   
XVI Machinery 2.2 1,682 509 1,173   
XVII Transport equipment 4.6 293 44 249   
XVIII Precision equipment 2.3 396 137 259   
XIX Arms and ammunition 2.3 30 5 25   
XX Misc. manufactured articles 2.4 237 73 164   
XXI Works of art, etc. 0.0 7 7    
Total 4.9 10,346 2,879 7,115 352 15.9 
 
Note: Tariff lines subject to in-quota rates are excluded in the computation; for the calculation of averages, specific rates a re excluded 
and the ad valorem  part of alternate rates are included except for HS sections I and VI. 
 EA refers to the agricultural component of the duty. 
 Based on the HS 2002 nomenclature. 
 
Source : WTO estimates based on data provided by EU. 
 
22. Chart II.1 shows by HS Chapter the average of  dutiable rates remaining once implementation 
is complete.  The comparison is made with MFN duties corresponding to those lines with preferential 
rates of duty greater than zero.  Once implementati on is completed, the EU will maintain preferential 
tariffs for imports from Egypt in 14 HS Chapters.  In HS Chapters 7 and 8, the average preferential 
duty will be lower than the corresponding MFN aver age, while for Chapters 6, 10, 15 and 20 it 
remains the same.  For the remaining HS Ch apters, the preferential rates contain only non ad valorem  
duties for which ad valorem  equivalents were not available;  thus no comparison has been done.  
0 5 10 15 20 250406070810151718192021222933Chart II.1
EU: Average of dutiable rates, by HS Chapter
HS Chapter  
Average rate of duty (%
MFN Preferential
Note: For tariff lines with non ad valorem components, only the ad valorem part of alternate rates are included in the calculation; 
          The preferential rates of HS Chapters 4, 17, 18, 19, 21, 22, 29 and 33 contain only non ad valorem  duties.
Source :  WTO Secretariat estimates based on data provided by EU. 
 
4. Liberalization by Egypt 
23. Details of tariff liberalization by Egypt under the Agreement according to HS Section is given 
in Table II.3 below.  At the end of implementation in 2019, the 206 tariff lines that are to remain dutiable are spread across almost all HS Sections.  WT/REG177/3 
 Page 9 
 
 
  Table II.3 
Egypt: Tariff elimination under th e Agreement, by HS section 
HS 
section  MFN  
avg. 
% Total 
No. of 
lines  Number of duty-free lines  
Remain dutiable  
Avg. Final Tariff 
(Dutiable)%  MFN 
2004 
2004 
2006 
2007 
2008 
2009 
2010 
2011 
2013 
2015 
2016 
2019 
I 10.4 339  21 14 52  2 200 33     17 24.9 
II 7.2 453 5 74 4 28   289 53       
III 7.9 95  4 12 11 5  48 11     4 10.0 
IV 173.
2 349  9 8 3   152 88     89 741.8 
V 3.8 225 4 8  154   2  36 17 2  2 2.0 
VI 9.0 1,089 11 49 10 690   23  197 88 7  14 143.9 
VII 9.6 377 2 27  104 1  2 4 163 72   2 2.0 
VIII 13.9 107    9   13  38 30 1  16 10.5 
IX 11.6 113    45     20 38 10    
X 12.2 205 1   48   1  98 41 7  9 5.5 
XI 23.3 1,044 64   18   4  215 675 62  6 6.2 
XII 28.8 73       1  1 65 6    
XIII 13.6 194 1   16     85 76 9  7 8.4 
XIV 12.0 81 4 3  20     31 20   3 5.7 
XV 11.3 777 18 19  204     196 322 7  11 12.7 
XVI 9.0 1,143 121 8  572  1 9 17 168 190 39  18 5.9 
XVII 18.7 282 18  6 74     95 62 4 20 3 71.7 
XVIII 10.8 339 28 1  160   1  101 44 1  3 12.3 
XIX 20.9 34 6        20 7 1    
XX 20.4 217    50     46 114 5  2 17.5 
XXI 24.4 12    3     1 8     
Total 19.6 7,548 283 223 54 2,261 6 3 745 206 1,511 1,869 161 20 206 293.2 
 
Note: Tariff lines subject to in-quota rates are excluded in the computation. 
Based on the HS 2002 nomenclature. 
 
Source : WTO estimates based on data provided by Egypt. 
 
24. Chart II.2 shows the average of dutiable rates remaining once implementation is completed by 
HS Chapter.  The comparison is made with MFN duties corresponding to those lines with preferential 
rates of duty.  For HS Chapters 1-24, at the e nd of implementation Egypt will maintain duties for 
imports from the EU for products in HS Chapters 2, 4, and 15-22 and 24.  For Chapter 21, the average 
preferential tariff of 3,000% is the same as the av erage MFN rate, while for the other chapters the 
average preferential duty is lower than the corr esponding MFN average with the greatest margins of 
preference found in Chapters 4 and 17-20.  For HS Chapters 25-97, Chapters 27, 38-39, 43, 47 and 50 
the average preferential rate is the same as the av erage MFN rate indicating that no liberalization of 
these lines has taken place.  For the othe rs a reduction in duties is foreseen. 
5. New Concessions granted in 2010 
25. As previously mentioned, an Exchange of Le tters between the Parties has led to further 
liberalization of agricultural products, processed agri cultural products and fi sh and fishery products 
which have been applied by the Parties since June 2010.12  
26. For the EU, all agricultural, pro cessed agricultural and fish and fi shery products originating in 
Egypt are duty free except those listed in Table II.4 belo w.  Preferential treatment in the form of tariff 
rate quotas is granted for most of these products.  These are described in Annex Table AII.1. 
                                                      
12 The full text can be found in the Official Journal of the European Union, L 106/41 dated 28.4.2010. WT/REG177/3 
Page 10  
 
  Table II.4  Imports from Egypt not subject to dut y-free treatment in the EU under the 2010 agreement 
CN Code Description 
0702 00 00 Tomatoes, fresh or chilled 
0703 20 00 Garlic, fresh or chilled 
0707 00 05 Cucumbers, fresh or chilled 
0709 90 70 Courgettes, fresh or chilled 
0709 90 80 Globe artichoke s, fresh or chilled 
0806 10 10 Table grapes, fresh 
0810 10 00 Strawberries, fresh 
1006 Rice 
1604 13 Prepared or preserved sard ines, sardinella and brisling or sprats, whole or in pieces 
1604 14 Prepared or preserved tuna, skipjack and bonito ( Sarda  spp.), whole or in pieces 
1701 Cane or beet sugar and chemical ly pure sucrose, in solid form 
1702 
excluding 1702 90 10 Other sugars, including chemically pure lact ose, glucose and fructose, in solid form 
1702 50 00 Chemically pure fructose in solid form 
ex 1704 90 99 Other sugar confectionery , not containing cocoa, containing: 70 % or more by weight of sucrose 
ex 1806 10 30 Sweetened cacao powder, containing: 70 % or more but less than 80 % by weight of sucrose 
1806 10 90 Sweetened cacao powder, containi ng: 80 % or more by weight of sucrose 
ex 1806 20 95 Chocolate and other food preparations  containing cocoa, in blocks, slabs or bars  
1901 90 99 Other food preparations of flour, groats, meal, starch  or malt extract, not containing cocoa or containing less than  
40 % by weight of cocoa  
ex 2101 12 98 Preparations with a basis of coffee, cont aining: 70 % or more by weight of sucrose/isoglucose 
ex 2101 20 98 Preparations with a basis of tea or mate containing: 70 % or more by weight of sucrose/isoglucose 
ex 2106 90 59  Other flavoured or coloured sugar syrups (exc l. isoglucose, lactose, gluc ose and maltodextrine syrups) 
ex 2106 90 98 Other food preparations not elsewhere specified or included, of a kind used in drink industries, containing: 70 %  or 
more by weight of sucrose/isoglucose 
ex 3302 10 29 Other preparations of a kind used in the drink industries, containing all flavouring agents characterising a beve rage, of 
an actual alcoholic strength by vol ume not exceeding 0,5 %, containing:  70 % or more by weight of 
sucrose/isoglucose 
 
Source:  Information provided by the Parties. 
27. For Egypt, all agricultural, pro cessed agricultural and fish and fi shery products originating in 
the EU are duty free except those listed in Table II.5 below.13  Preferential treatment in the form of 
tariff rate quotas is granted for some of these produc ts.  These are described in Annex Table AII.2. 
Table II.5:  Imports from the EU not subject to duty-free treatment in Egypt under the 2010 agreement 
CN Code Description 
0203 Meat of swine, fr esh, chilled or frozen 
ex 0206 Edible offal of bovine animals, swine, sheep, goats, horses, asses, mule s or hinnies, fresh, chilled or frozen: 
0206 30 - of swine, fresh or chilled 
0206 41 - of swine livers, frozen 
0206 49 -- Other 
ex 0207 Meat and edible offal, of the poultr y of heading 0105, fresh, chilled or frozen: 
0207 11 -- Not cut in pieces, fresh or chilled 
0209 Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted 
Table II.5 (Cont'd)
                                                      
13 As mentioned above, the concessions granted in 2010 are already included in Egypt's tariff analysis.  WT/REG177/3 
 Page 11 
 
 
  CN Code Description 
ex 0210 Meat and edible meat offal, salted, in brine, dried or smoked 
0210 11 -- Hams, shoulders and cuts thereof, with bone in 
0210 12 -- Bellies (streaky) and cuts thereof 
0210 19 -- Other 
ex 0406 10 Fresh (unripened or uncured) cheese, in cluding whey cheese, and curd (less than 20 kg) 
1501 Pig fat (including lard) and poultry fat, other than that of heading 0209 or 1503 
ex 1602 Other prepared or preserved meat, meat offal or blood: 
1602 10 - homogenised preparations 
1602 20 - of liver of any animal 
 - of swine: 
1602 41 - Hams and cuts thereof 
1602 42 - Shoulders and cuts thereof 
1602 49 - Other, including mixtures, including preparations of blood of any animal 
1602 90 10 - of swine 
1704 Sugar confectionery (including wh ite chocolate), not containing cocoa 
1806 Chocolate and other food pr eparations containing cocoa 
1902 Pasta, whether or not cooked or stuf fed (with meat or other substances)  
1905 Bread, pastry, cakes, biscuits  and other bakers' wares, whet her or not containing cocoa;  
2004 Other vegetables prepared or  preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 
2006 
ex 2106 Food preparations not elsewhere specified or included: 
2106 90 20 -- Compound alcoholic preparations, other than those ba sed on odoriferous substances, of a kind used for the manufac ture 
of beverages 
2203 Beer made from malt 
2204 Wine of fresh grapes, including fortified wi nes; grape must other than of heading 2009 
2205 Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances 
2206 Other fermented beverages (for example,  cider, perry, mead); mixtures of ferm ented beverages and mixtures of fermented 
beverages and non-alcoholic beverages, not elsewhere specified or included 
2207 Undenatured ethyl alcohol of an alc oholic strength by volume of 80 % vol or higher; ethyl alcohol and other spirits, 
denatured, of any strength 
2208 Undenatured ethyl alcohol of an alc oholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous  
beverages 
2401 Unmanufactured tobacco; tobacco refuse 
2402 Cigars, cheroots, cigarillos and cigarette s, of tobacco or of  tobacco substitute 
2403 Other manufactured tobacco and manufactured tobacco subs titutes; "homogenised" or "re constituted" tobacco; tobacco 
extracts and essences 
ex 3302 Mixtures of odoriferous substances a nd mixtures (including alcoholic solutions)  
3302 10 10 Compound alcoholic preparations of  a kind used for manufacture of beverages 
 
Source:  Information provided by the Parties. 
28. The Parties agree to meet two years from the da te of entry into force (i.e. June 2012) to 
consider granting each other further concessions in  trade in these products.  Such meeting shall 
thereafter be held regularly every two years.  
6. Tariff-rate quotas 
29. The tariff-rate quotas described in this section ar e those in operation following the entry into 
force of the concessions negotiated in 2010.  The EU applies tariff rate quotas on imports from Egypt 
for a number of products including some fruit and vegetables,  rice, fructose, cacao powder, and WT/REG177/3 
Page 12  
 
  chocolate  and some food and drink preparations (w ith over 70% sugar content).  All goods subject to 
a TRQ have an in-quota duty rate of zero while out-of-quota rates are either the MFN duty or a 
reduction thereof.  For a number of these produc ts, principally fruit and vegetables, seasonal 
preferential tariffs apply (for instance, tomato imports into the EU from 1 November to 30 June face zero duties).  For the majority of products, tariff quota volumes are subject to an annual increase of 
3 to 10% (Annex Table AII.1 provides more detail on the EU's TRQs).  The TRQs provided for in the 
framework of the Agreement are in addi tion to those applied under MFN rules.  
30. Egypt applies tariff rate quotas on imports from the EU on meat and edible offal, and fresh 
cheese which  are subject to reduced in-quota tari ff rates and a limited annual quota volume;  and on 
certain products (sugar confectionery, chocolate and co coa preparations, pasta, bread and other bakers' 
wares, some preserved vegetables and alcoholic drink preparations) at reduced rates of 50% or 35% of 
the MFN rate within unlimited tariff quota volum es (Annex Table AII.2 provides more detail on 
Egypt's TRQs).  Egypt does not apply any TRQs on an MFN basis. 
B. R
ULES OF ORIGIN  
31. Disciplines regarding rules of origin are la id out in Protocol 4 to the Agreement.14  Protocol 4 
was amended on 17 February 2006 by the Associat ion Council to extend the system of cumulation 
under the Agreement to all countries participating in  the Euro-Mediterranean partnership, based on 
the Barcelona Declaration.15  The amended Protocol entered into force on 17 February 2006 and is 
applicable from 1 March 2006.  On the basis of Protocol  4, bilateral cumulation of origin is applicable 
between the EU and Egypt.  Furthermore, dia gonal cumulation applies between the EU, Egypt, 
Algeria, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia, Turkey, the West Bank and Gaza strip, the 
EFTA states and Faroe Islands.16 
32. The basic requirements for a product to be c onsidered originating (Article 2) are:  
(a) the product is wholly obtained in the EU or in  Egypt, within the meaning of Article 5; 
or 
(b) the non-originating materials incorporated  in a product have undergone "sufficient 
working or processing" in the EU or Egyp t, according to specific requirements laid 
down in Article 6;  or  
(c) the goods originate in the European Economic Area (EEA), in which case they are 
considered as originating in the EU, pr ovided a free trade agreement is in force 
between Egypt and Iceland, Norway and Liechtenstein.17 
33. Annex II to Protocol 4 lists the working or  processing required to be carried out on 
non-originating materials in order for the product to obtain originating status.  The rules are generally 
                                                      
14 For the remainder of this section, all references to specific articles and annexes relate to Protocol 4, 
unless otherwise stated. 
15 OJ L 73/1, 13.3.2006. 
16 In so far as there is an RTA in place within the meaning of GATT Art. XXIV between the countries 
involved and the rules of origin in such agreements are identical to the ones in this Agreement.  Currently, Egypt 
has FTAs in place with the EFTA Stat es, Jordan, Morocco, Tunisia and Tu rkey.  Jordan, Eg ypt, Morocco and 
Tunisia implement the Pan-Euro-Med system of cumulation of origin in the framework of the Agadir 
Agreement. 
17 This provision shall apply only provided an FTA is in force between Egypt and the EEA EFTA 
states:  Iceland, Norway and Liechte nstein.  An FTA between the EFTA States and Egypt entered into force on 
1 August 2007.  WT/REG177/3 
 Page 13 
 
 
  chapter-specific with exceptions at th e tariff heading level (CTH 4-digit).18  Origin is conferred 
according to four main criteria applied either indepe ndently or in combination with each other.  These 
are: the "wholly obtained" (WO) criterion requiring that "all the materials of the chapter are wholly obtained";  the "change of tariff heading" (CTH) criterion requiring non-originating materials to fall 
under headings other than that of the product;  the im port content test (MC) requiring the value of the 
non-originating materials not to exceed a given percen tage of the ex-works price of the product;  and 
the technical test rule (TR) which sets out the wo rk processes that non-originating materials have to 
undergo.  In some instances, a combination of different rules or choice between different rules is given. 
34. As indicated above,  Article 2.1(c) of Protocol  4 establishes that goods originating in the EEA 
are to be considered as originating in the EU, wh ich implies full cumulation between Norway, Iceland 
and Liechtenstein and the EU.
19  Further, paragraphs 1 and 2 of Articles 3 and 4 provide for diagonal 
cumulation with the participants of the Pan-Euro -Med cumulation system of origin.  Article 6 
(sufficiently worked and processed) provides for an "absorption principle" - i.e. when a 
non-originating material acquires originating status by meeting the corresponding processing 
requirement, this material is considered to be 10 0 per cent originating once incorporated into a final 
product. 
35. The "tolerance rule" in Article 6.2 provides that non-originating materials which would 
otherwise not be accepted may nevertheless be used , provided that (i) their value does not exceed 10% 
of the ex-works price of the product, and (ii) an y of the percentages provided for in Annex II to 
Protocol 4 are  not exceeded.  This rule applies to all products except textiles and clothing 
(HS Chapters 50-63).20 
36. Article 7 lays down an exhaustive list of insu fficient working or processing operations carried 
out in the territory of the EU and Egypt that do not confer origin, even if the product would meet the relevant rule.  Article 8 defines the unit of qualifi cation for the application of the provisions of the 
Protocol;  Articles 9-11 deal with how certain materials (accessories, spare parts or tools;  sets;  and 
neutral elements) are to be treated/valued when determining the origin of  the goods.  Article 12 
establishes that outward processing outside the Pa n-Euro-Med area is not allowed unless certain 
conditions are fulfilled.  The non-respect of those conditions will result in the loss of originating 
status.   
37. A no-drawback rule for customs duties is app lied to non-originating materials used in 
products benefiting from preferential treatment havi ng obtained originating status in any of the 
countries part of the Pan-Euro-Med area (Article 15).  The prohibition on drawback only applies when 
products have obtained originating status on th e basis of Pan-Euro-Med diagonal cumulation.  
Furthermore, Egypt is allowed partial drawback on non-originating materials used in non-agricultural 
products (HS Chapters 25-97) subject to the payment of a fixed percentage of customs duties.  This 
provision is applicable until 31 December 2009 and may be reviewed by common accord.
21   
                                                      
18 In Annex II to Protocol 4 most Chapters are preceded by an "ex" signifying that their corresponding 
rule(s) in columns three and four to the Annex apply to the Chapter "except for" the tariff headings as listed 
directly below the Chapter.  In the absence of an "e x" the rule applies to the Chapter without exceptions. 
19 Protocol 4 of the European Economic Agreement establishes that for origin purposes, EEA countries 
are treated as a single territory.  EEA members are the European Union countries, Norway, Iceland and 
Liechtenstein.  Ceuta and Melilla are excluded from th is provision;  special conditions regarding goods 
originating therein are deta iled in Articles 37 and 38. 
20 Special "tolerance rules" apply to certain textile products made of a mixture of materials (see notes 5 
and 6 of Annex I to Protocol 4). 
21 According to the Parties, this provision has be en extended until end 2012 (see EU Official Journal 
L249/5 dated 23.9.2010).  The applicable rates of customs duties that have to be retained have been reviewed as WT/REG177/3 
Page 14  
 
  C. E
XPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
38. In accordance with Article 17.3, the Parti es may not apply customs duties, quantitative 
restrictions, or charges having equivalent effect, to exports between themselves.  No new customs 
duties on exports or charges having equivalent e ffect may be introduced, nor may those already 
applied be increased in trade between the Par ties (Article 18.2).  Where compliance with the 
provisions of paragraph 17.3 leads to:  i) re-export towards third countries against which the exporting 
Party maintains quantitative export restrictions or  export duties for that product or;  ii) serious 
shortage, or threat thereof, of that product, and these situations give rise, or are likely to give rise, to 
major difficulties for the exporting Party, appropriate  measures to end such difficulties can be taken, 
following the conditions laid down in Article 25. 
D. REGULATORY PROVISIONS OF THE AGREEMENT  
1. Standards 
39. The Parties agree to aim to reduce differences in standardization and conformity assessment.  
Cooperation in this field focuses in particular on ru les in the field of standardization, metrology, 
quality standards, and recognition of conformity, in  particular as regards sanitary and phytosanitary 
standards for agricultural products and foodstuffs ;  upgrading the level of Egyptian conformity 
assessment bodies, with a view to the establishment of mutual recognition agreements in the area of 
conformity assessment;  and developing structures fo r the protection of intellectual, industrial and 
commercial property rights, for standardization and for setting quality standards (Article 47). 
40. As part of the Exchange of Letters between  the Parties on reciprocal liberalization on 
agricultural, processed agricultural and fish and fishery products which entered into force on 
1 June 2010, the Parties signed a Common Declaration on Sanitary and Phytosanitary or Technical 
Barriers to Trade Issues through whic h they agree to solve any problems relating to such issues which 
hinder the implementation of the Agreement by mean s of existing administrative arrangements.  The 
results shall then be reported to the Subcommitt ee for agriculture and fisheries, as well as to the 
Subcommittee of industry, trade, services and investment and to the Association Committee.  The 
Parties commit to examine and solve such  cases with the shortest possible delay. 
2. Safeguard mechanisms 
(a) Global safeguards 
41. There are no specific provisions in the Agre ement governing the application of global 
safeguards. 
(b) Bilateral safeguards 
42. The Parties reaffirm their rights and obliga tions under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards (Article 24).   
43. Before applying a safeguard measure, the Party intending to apply the measure should supply 
information to the Association Committee, which will examine the situation with a view to seeking a 
solution acceptable to the Parties.  If a solution is not found within 30 days from the initiation of 
                                                                                                                                                                     
follows:  a 4% rate of customs duties for products falling within HS Chapters 25 to 49 and 64 to 97, and 8% for 
products falling within HS Chapters 50 to 63.  Partial drawback can only be granted if diagonal cumulation has 
not been applied and a product has not been re-exported from a country of importation to any of the other 
countries of the zone.  WT/REG177/3 
 Page 15 
 
 
  consultations, the importing Party may impos e safeguard measures in accordance with 
GATT Article XIX and the WTO Agreement on Safeguards .  The Party imposing such measures 
should give priority to those measures that cause the least disturbance to the achievement of the 
objectives of the Agreement.  The measures are to be notified to the Association Committee, and 
reviewed periodically with a view to their abolition. 
(c) Protection of infant industries 
44. Under Article 11, Egypt may increase or re-int roduce customs duties on imports of industrial 
products in the case of new and infant industr ies or in sectors undergoing restructuring or 
experiencing serious difficulties, particularly where those difficulties entail severe social problems.  In 
such cases, the duty applied by Egypt cannot exceed 25% ad valorem  and must retain a preferential 
margin for products originating in the EU.22  Such measures may only be applied for a maximum 
period of five years, unless a longer duration is au thorized by the Association Committee, and not 
beyond the maximum transition period of 2019.  The Association Comm ittee may exceptionally 
extend the measures already taken by Egypt for a maximum period of four years beyond the 15 year 
transition period, i.e. until 2023.  Measures may not be  introduced for a given product if more than 
three years have elapsed since the abolition of duties on that product.  Egypt must inform the 
Association Committee of the measures it intends to adopt, agrees to hold consultations at the request 
of the EU, and will provide a schedule for th e abolition of the duties it intends to apply.23  
(d) Balance of Payments Measures 
45. In the event that one or several Member States of  the EU or Egypt face, or risk facing, serious 
difficulties concerning balance of payments, they may take restrictive measures with regard to current 
payments in accordance with the conditions laid down within the framework of the GATT and the 
relevant articles of the IMF (Article 33).  Such me asures are to be notified immediately to the other 
Party and a timetable for their removal is to be provided as soon as possible. 
3. Anti-dumping and countervailing measures 
46. The Parties may apply anti-dumping measures in conformity with the WTO Agreement on the 
Implementation of Article VI of the GATT 199 4 and internal legislation (Article 22).  
4. Subsidies and Countervailing Measures 
47. The WTO Agreement on Subsidies and Counterva iling Measures applies between the Parties 
(Article 23).   
5. Other regulations 
(a) Customs-related procedures 
48. The Parties agree to develop customs coopera tion in particular with regard to the 
simplification of controls and procedures concerni ng customs clearance of goods and the introduction 
                                                      
22 The total value of imports subj ect to these measures may not exceed 20% of total imports of 
industrial products from the EU during the last year for which statistics are available. 
23 The declaration by the EU on Article 11 provides that when consultations are requested as provided 
for in the last paragraph of Article 11, the EU will be  ready to hold consultations within 30 days of the 
exceptional measures being notified to the Association Committee by Egypt.  The purpose of such consultations is to ensure that the measures concerned are in accordan ce with the provisions of Article 11, and the EU will not 
oppose the adoption of the measures if these conditions are met. WT/REG177/3 
Page 16  
 
  of a single administrative document and a system to  link the EU's and Egypt's transit arrangements 
(Article 55).
24  
(b) Competition policy 
49. Three kinds of activities are defined as being contrary to the proper functioning of the 
Agreement: i) agreements between undertakings, decisions by associations of undertakings and 
concerted practices between undert akings which have as their object or effect, the prevention, 
restriction or distortion of competition;  ii) abuse by one or more undertakings of a dominant position 
in the territories of the EU or Egypt as a whole or in a substantial part thereof;  iii) any public aid 
which distorts or threatens to distort competiti on by favouring certain undertakings or the production 
of certain products25 (Article 34.1).  Within five years of the entry into force of th e Agreement, i.e. by 
June 2009, the Association Council will adopt the necessary rules for the implementation of 
competition policy between the Parties.26  Until such rules are adopted, the Parties reaffirm their rights 
and obligations on the relevant Articles of GA TT 1994 and the WTO Agreement on Subsidies and 
Countervailing Measures or related inte rnal legislation (Article 34.2). 
50. According to a joint declaration on Article 34,  Egypt will take into account the competition 
rules developed within the EU while drafting its co mpetition laws.  According to a declaration by the 
EU on Article 34, until the adoption by the Associ ation Council of the implementing rules on fair 
competition, Articles 81, 82 and 87 of the Treaty establishing the European Community, and for those 
products covered by the Treaty establishing the European Coal and Steel Community, by those contained in Articles 65 and 66 of that Treaty a nd the EU rules on state aids, including secondary 
legislation, are to be used as assessment tools for any incompatible competition practices.  The 
Declaration also states that, as re gards agricultural products, the EU will assess any practice contrary 
to paragraph (i) in accordance with the Articles 36 and 37 of the Treaty establishing the EU and in 
particular those established in Council Regulation No . 26/62 as amended, and any practice contrary to 
paragraph (iii) according to Articles 36 and 87 of the Treaty establishing the EU.  
51. The Parties agree to ensure transpar ency in the area of public aid, inter alia  by reporting 
annually to the other Party on the total amount and distribution of the aid given and by providing, 
upon request, information on aid schemes.  If the EU or  Egypt considers that a particular practice is 
incompatible with the Agreement and is not ade quately dealt with under the implementing rules 
adopted by the Association Council, or in the absen ce of such rules, and if the practice causes, or 
threatens to cause serious prejudice to the interest of the other Party or material injury to its domestic 
industry, including its services industry, it may take appropriate measures after consultation within the 
Association Committee or after thirty working da ys following a referral for such consultation. 
(c) State monopolies 
52. The Parties shall progressively adjust any Stat e monopolies of a commercial character to end 
discrimination between nationals of EU Member  States and Egypt concerning the conditions under 
which goods are procured and marketed by the end of the fifth year following the date of entry into 
                                                      
24 According to the Parties, a new Customs Law ha s been prepared in Egypt to further simplify 
procedures, facilitate trade and promote transparency.  The Law has to be approved and adopted by Parliament.  
A single administrative document has been prepared and will be introduced after developing a new information 
technology system.  Egypt does not belong to any of the EU's transit arrangements. 
25 The latter does not apply to agricultural, fisheries and processed agricultural products contained in 
HS Chapters 1-24.  The WTO Agreement on Agriculture and the relevant provisions of the WTO Agreement on 
Subsidies and Countervailing Duties apply with regard to these products. 
26 According to the Parties, no specific rules for the implementation of competition policy have been 
adopted by the Parties thus far.  WT/REG177/3 
 Page 17 
 
 
  force of the Agreement, i.e. by end 2009.27  The measures adopted to implement this objective must 
be notified to the Association Committee (Article 35). 
(d) Government Procurement 
53. The Parties agree on the objective of a progressive  liberalization of public procurement.  The 
Association Council will hold consu ltations on the implementation of  this objective (Article 38).28   
(e) Intellectual Property 
54. The Parties agree to grant and ensure adequa te and effective protection of intellectual 
property rights in accordance with prevailing international standards (Article 37).29  Annex VI lists a 
number of multilateral conventio ns to which Egypt must a dhere before 1 January 2008.30  T h e  
Association Council may decide whether Egypt mu st adhere to other multilateral conventions,31 and 
to which the Parties reaffirm their obligations.32  The implementation of intellectual property rights is 
to be reviewed regularly by the Parties.  Consu ltations are to be undertaken in the event of any 
problems in the area of intellectual property which affect trading conditions. 
(f) Cooperation 
55. The Parties agree to intensify economic cooperation in their mutual interest.  Economic 
cooperation is dealt with in Title V – Articles 39 to 61.  Its primary focus is to support sectors 
suffering from the liberalization of the Egyptian econom y, in particular from the liberalization with 
the EU through, inter alia , economic dialogue, transfer of expertise, and technical assistance.  
Articles 42-61 specify the particular form that econom ic cooperation is to take in different areas.  
                                                      
27 According to the Parties, this work remains to be done.  No implementing measures have yet been 
notified to the Association Committee. 
28 According to the Parties, Egypt is working on improving the process of public procurement and has 
worked with international organizations to prepare an assessment on its public procurement system.  Provisions for e-bidding and e-evaluation are u nder preparation and an analysis has been completed with a view to 
amending legislation. 
29 The Joint Declaration on Article 37 and Annex VI lists the following as intellectual property under 
the Agreement:  copyright, including copyright in computer programmes, and neighbouring rights, patents, 
industrial designs, geographical indications, including appellations of origin, trademarks and service marks, topographies of integrated circuits, as well as the pr otection against unfair competition as referred to in 
Article 10bis of the Paris Convention for the Protection of Industrial Property (Stockholm Act, 1967) and 
protection of undisclosed information on "know-how". 
30 The Convention for the Protection of Performers, Producers of Phonograms and Broadcasting 
Operations;  Budapest Treaty on International Recognitio n of the Deposit of Micro-organisms for the Purposes 
of Patent Procedure;  the Patent Corporation Treat y; the International Convention for Protection of New 
Varieties of Plants;  Nice Agreement Concerning the International Classification of Goods and Services for the 
Purpose of Registration of Marks;  and the Protocol to the Madrid Agreement Concerning the International 
Registration of Marks.  Egypt has alr eady acceded to three of the listed trea ties:  The Patent Co-operation Treaty 
(on 6 September 2003),  the Nice Agreement Concerning th e International Classification of Goods and Services 
for the Purpose of Registration of Marks (on 18 June 2005), and the Protocol to the Madrid Agreement 
Concerning the International Registration of Marks (on 3 September 2009).  Egypt is currently working on internal procedures in preparati on for accession to the other three. 
31 According to the Parties, no decision has been taken by the Association Council in this regard. 
32 The WTO Agreement on Trade Related Aspects of Intellectual Property Rights;  the Paris 
Convention for the Protection of Industrial Property;  the Berne Convention for the Protection of Literary and 
Artistic Works and;  the Madrid Agreement Concer ning the International Registration of Marks. WT/REG177/3 
Page 18  
 
  56. Article 72 provides for a financial cooperation p ackage to be made available to Egypt, which 
includes promoting reform designed to modernize the economy, promoting private investment and 
job-creating activities, and upgrading economic infra structure, enhancing Egypt's export capacity. 
(g) Trade in Services 
57. The Parties agree to consider extending the sc ope of the Agreement to include the rights of 
establishment of companies of one Party in the territo ry of another Party and the liberalization of the 
supply of services by companies of one Party to cons umers in another Party (Article 30).  The Parties 
agree to review this objective at the latest five years after the entry into force of  the Agreement, i.e. by 
June 2009.
33 
E. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
58. Fresh cut flowers and flower buds are subject to special conditions upon importation into the 
EU, as agreed in an exchange of letters between the Parties.  According to these letters, Egyptian 
roses and carnations imported into the EU will only be granted preferential treatment if their import 
price is at least 85% of the EU price level for th e same product over the same period, and calculated 
as detailed therein. 
IV. GENERAL PROVISIONS OF THE AGREEMENT 
A. CURRENT PAYMENTS AND CAPITAL MOVEMENTS  
59. The Parties agree to authorize any payments to the current account in fully convertible 
currency (Article 31).  The Parties agree to ensure , from the entry into for ce of the Agreement, the 
free circulation of capital for direct investment s and the liquidation or repatriation of these 
investments and of any profit.  They agree to hol d consultations with a view to facilitating the 
movement of capital between them and to achieve its complete liber alization as soon as conditions are 
met. 
B. EXCEPTIONS  
60. Article 26 lays out the general exceptions of the Agreement along the lines of those in 
Article XX of the GATT 1994.  Article 83 sets out general exceptions relating to security concerns 
similar to those found in Article XXI of the GATT 1994.   
C. ACCESSION AND TERMINATION  
61. No accession (of third parties, other than  candidate countries for accession to the 
European Union) provision per se  exists in the Agreement.  The Agreement may be terminated by 
either of the Parties by giving six months' notice (Article 89). 
 
 
                                                      
33 According to the Parties, the EU and Southern Me diterranean countries agreed to launch negotiations 
on the liberalisation of trade in services and the right of  establishment in 2006.  In  2007, discussions took place 
in the regional format with a view to  agree on horizontal provisions.  During these negotiations it appeared that 
convergence of positions would only be possible in bi lateral negotiations. Thus at the Trade Ministerial 
conference that took place in Lisbon  on October 2007, Ministers approved  the proposal to launch bilateral 
negotiations between the EU and its Southern Mediterran ean partners.  Bilateral negotiations between the EU 
and Egypt on the liberalisation of trade in services and the right of establishment were launched in 2008 and 
have not yet been concluded.  WT/REG177/3 
 Page 19 
 
 
  D. INSTITUTIONAL FRAMEWORK  
62. The Parties agree to establish an Association Counc il with the power to take decisions for the 
purpose of attaining the objectives of the Agreement (A rticle 74).  Either Party may refer any dispute 
relating to the application or interpretation of the Agreement to the Association Council which may 
settle it by means of a decision which is binding on the Parties. 
E. DISPUTE SETTLEMENT  
63. Any dispute relating to the application or inte rpretation of the Agreement may be referred by 
the Parties to the Association Council which may se ttle the dispute by means of a decision which is 
binding (Article 82).34  If the Association Council is unable to settle the dispute, either Party may 
notify the other of the appointment of an arbitrat or;  the other Party must then appoint a second 
arbitrator within two months.  A third arbitrator is  appointed by the Association Council.  Arbitrators' 
decisions are taken by majority vote.  Each Part y to the dispute must take the necessary steps to 
implement the decision of the arbitrators. 
F. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
64. Article 21 provides that the Agreement does not preclude the maintenance or establishment of 
customs unions, free trade areas or arrangements for frontier trade.  The Parties agree to consult 
within the Association Council concerning agreemen ts establishing customs unions or free trade areas 
and on other major issues related to their r espective trade policy with third countries. 
65. Table II.3 lists all other regional trade agreements  (RTAs) in force to which the EU and Egypt 
are party. 
Table II.3:  European Union and Egypt:  Participation in other RTAs (notified and non-notified in force), as of 12 June 2012  
Partner / Agreement Date of 
entry  
into force Type of agreement GATT/WTO Notification 
Year WTO Provision 
EUROPEAN UNION  
Rep. of Korea 01.07.11 Goods & Services 2011 GATT Art. XXIV & GATS Art. V
Papua New Guinea/Fiji 20.12.09 Goods 2011 GATT Art. XXIV 
Montenegro 01.05.10 
01.01.08 Services 
Goods 2010 
2008 GATS Art. V 
GATT Art. XXIV 
Serbia 01.02.10 Goods 2010 GATT Art. XXIV 
Cameroon 01.10.09 Goods 2009 GATT Art. XXIV 
Albania 
 01.04.09 
01.12.06 Services 
Goods 2009 
2007 GATS Art. V 
GATT Art. XXIV 
Côte d'Ivoire 01.01.09 Goods 2008 GATT Art. XXIV 
CARIFORUM States 01.11.08 Goods & Servi ces 2008 GATT Art. XXIV & GATS Art. V
Bosnia and Herzegovina 01.07.08 Goods 2008 GATT Art. XXIV 
Algeria 01.09.05 Goods 2006 GATT Art. XXIV 
  Table II.3 (Cont'd)
                                                      
34 On 11 November 2010 the EU and Egypt signed a Protocol on Dispute Settlement that would apply 
to trade disputes under the Association Agreement. The Protocol is not yet into force. The dispute settlement 
mechanism under the Protocol builds on WTO procedures a nd foresees rules on consultations, the possibility of 
mediation panel procedures and compliance procedures. It also includes rules of procedure and a code of conduct.  The text of the protocol can be found at:  
http://eur-lex.europa.eu/LexUriServ/LexU riServ.do?uri=COM:2010:0424:FIN:EN:PDF  WT/REG177/3 
Page 20  
 
  Partner / Agreement Date of 
entry  
into force Type of agreement GATT/WTO Notification 
Year WTO Provision 
Chile 01.03.05 
01.02.03 Services 
Goods 2005 
2004 GATS Art. V 
GATT Art. XXIV 
Croatia  01.02.05 
01.03.02 Services 
Goods 2009 
2002 GATS Art. V 
GATT Art. XXIV 
FYROM  01.04.04 
01.06.01 Services 
Goods 2009 
2001 GATS Art. V 
GATT Art. XXIV 
Lebanon 01.03.03 Goods 2003 GATT Art. XXIV 
Jordan 01.05.02 Goods 2002 GATT Art. XXIV 
San Marino 01.04.02 Goods 2010 GATT Art. XXIV 
Mexico 01.10.00 
01.07.00 Services 
Goods 2002 
2000 GATS Art. V 
GATT Art. XXIV 
Israel 01.06.00 Goods 2000 GATT Art. XXIV 
Morocco 01.03.00 Goods 2000 GATT Art. XXIV 
South Africa 01.01.00 Goods 2000 GATT Art. XXIV 
Tunisia 01.03.98 Goods 1999 GATT Art. XXIV 
Palestinian Authority 01.07.97 Goods 1997 GATT Art. XXIV 
Faeroe Islands 01.01.97 Goods 1997 GATT Art. XXIV 
Turkey 01.01.96 Goods 1995 GATT Art. XXIV 
European Economic Area 01.01.94 Services 1996 GATS Art. V 
Andorra 01.07.91 Goods 1998 GATT Art. XXIV 
Syria 01.07.77 Goods 1977 GATT Art. XXIV 
Norway 01.07.73 Goods 1973 GATT Art. XXIV 
Iceland 01.04.73 Goods 1972 GATT Art. XXIV 
Switzerland – Liechtenstein 01.01.73 Goods 1972 GATT Art. XXIV 
Overseas Countries and 
Territories 01.01.71 Goods 1970 GATT Art. XXIV 
EGYPT35 
Turkey 01.03.07 Goods 2007 Enabling Clause 
EFTA 01.08.07 Goods 2007 GATT Art. XXIV 
Pan-Arab Free Trade Area 01.01.98 Goods 2006 GATT Art. XXIV 
PTN 11.02.73 Goods 1971 Enabling Clause 
COMESA 08.12.94 Goods 1995 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
Agadir 16.07.06 Goods Not notified  
AEC  Goods Not notified  
CEN-SAD  Goods Not notified  
COMESA: Common Market for Ea stern and Southern Africa 
GSTP: Global System of Trade Preferences EFTA: European Free Trade Association. Members ar e Iceland, Liechtenstein, Norway, Switzerland. 
PTN: Protocol on Trade Negotiations 
AEC: African Economic Community EN-SAD: Community of Sahel-Saharan States. 
 
Source: WTO Secretariat.  
                                                      
35 According to Egypt, it is in coordination with othe r partners to prepare the respective notifications to 
the WTO.  WT/REG177/3 
 Page 21 
 
 
  ANNEX I 
 
 1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the overall rates applied by the EU and Egypt respectively, is shown in Tables AI.1 (EU) 
and AI.2 (Egypt), by total products, agricultural products and non-agricultural products.  In 2004 
when the Agreement entered into force, around a quart er of the EU tariff was already duty free on an 
MFN basis.  As a result of the Agreement, in 20 04 the share of duty free lines for imports from Egypt 
increased to 96.6% overall of which 100% for non-a gricultural products and 83% for agricultural 
products.  The average margin of preference for Egyp tian exporters to the EU as a result was 99.4% in 
2004 for all goods, of which 81.1% for agricu lture and 100% for non-agricultural products. 
Table AI.1 
EU: Indicators of MFN tariff rates and preferential rates for imports from Egypt 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2004 4.9 6.9 27.8 9.5 13.1 19.0 4.0 5.8 30.2 
 2010 4.9 6.6 24.7 8.9 12.1 18.0 4.2 5.7 99.2 
Egypt 2004 0.3 15.9 96.6 1.8 15.9 83.0 0.0 0.0 100.0 
 a WTO Definition. 
 
Note: Tariff lines subject to in-quota rates are excluded in the computation; for the calculation of averages, specific rates a re excluded 
and the ad valorem  part of alternate rates are included. 
Based on the HS 2002 nomenclature and HS 2007 nomenclature (for MFN 2010). 
 
Source : WTO Secretariat estimates based on data provided by EU. 
 
2. In 2004, when Egypt began to implement the Agreement, 3.7% of its overall tariff was duty 
free.  As a result of the Agreement, during the firs t year in which Egypt liberalized tariffs (2004) a 
further 3% of its tariff became duty free for imports  from the EU.  After 10 years of implementation 
in 2013, 70.1% of the tariff will be duty free for imports from the EU, of which 89.9% for agricultural 
products and 66.3% for non-agricultural products.  At the end of implementation in 2019, 97.3% of 
the tariff will be duty free for imports from the EU;  of this 90.2% will be duty free for agricultural 
imports and 98.6% for non-agricultu ral goods.  EU exporters to Egyp t will enjoy an average margin 
of preference of 63.3%, of which 19% in agriculture and 97% in non-agriculture. 
Table AI.2 
Egypt: Indicators of MFN tariff rates a nd preferential rates for imports from EU 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2004 19.6 20.4 3.7 53.3 55.3 3.4 13.2 13.7 3.8 
 2010 16.8 18.8 10.7 51.1 61.2 16.6 10.3 11.4 9.6 
EU 2004 17.1 18.3 6.7 52.0 59.4 12.2 10.4 11.1 5.6 
 2005 16.8 18.0 6.7 52.0 59.4 12.2 10.1 10.7 5.6 
 2006 16.5 17.8 7.4 51.8 61.9 16.1 9.8 10.4 5.7 
 2007 15.4 24.6 37.4 49.3 63.2 21.7 9.0 15.1 40.4 
 2008 15.1 24.1 37.5 49.1 63.3 22.1 8.6 14.4 40.4 
 2009 14.5 23.3 37.5 49.0 63.4 22.3 8.0 13.4 40.4 
 2010 13.2 25.1 47.4 44.7 175.0 73.2 7.2 12.5 42.4 
 2011 11.7 23.6 50.1 43.1 404.2 87.9 5.8 10.1 42.8 
 2012 10.7 21.5 50.1 43.1 404.1 87.9 4.5 8.0 42.8 
 2013 9.6 32.5 70.1 43.1 502.0 89.9 3.3 9.8 66.3 
Table AI.2 (Cont'd)WT/REG177/3 
Page 22  
 
  Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Average applied 
tariff Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
 2014 8.9 29.9 70.1 43.1 502.0 89.9 2.4 7.1 66.3 
 2015 7.4 152.6 94.9 43.0 517.0 90.2 0.7 16.2 95.8 
 2016 7.3 267.9 97.0 43.0 517.0 90.2 0.6 32.9 98.3 
 2017 7.3 266.9 97.0 43.0 517.0 90.2 0.5 30.9 98.3 
 2018 7.3 265.8 97.0 43.0 517.0 90.2 0.5 28.8 98.3 
 2019 7.2 293.2 97.3 43.0 517.0 90.2 0.4 33.0 98.6 
 a WTO Definition. Note: Tariff lines subject to in-quota rates are excluded in the computation. 
Based on the HS 2002 nomenclature a nd HS 2007nomenclature (for MFN 2010). 
 
Source : WTO Secretariat estimates based on data provided by Egypt. 
 
3. Tables AI.3 and AI.4 show market access opport unities respectively for Egypt's top 25 global 
exports in the EU and for the EU's top 25 global e xports in the Egyptian market.  Table AI.3 shows 
that of Egypt's top 25 export products to the EU market which accounted for 25.4% of its overall 
exports covered by 156 tariff lines at the HS 6- digit level, 72 were already duty free before the 
Agreement entered into force.  In 2004, when the Agreement entered into force all other tariff lines 
were liberalized. 
Table AI.3 – EU: Market access opportunities under th e agreement for Egypt's top 25 exports to the world 
Egypt's top export products in 2001-2003 Access Conditions to EU's import markets
MFN (2004)  
Duty-
free in 
2004 HS number and description of the product  Share in 
global 
exports (%)  Average 
MFN applied 
rate 
(%) Duty-
free Dutiable 
870323 Of a cylinder capacity exceeding 1,500 cc but not 
exceeding 3,000 cc 3.5 10.0  3 3 
300490 Other 3.0 0.0 4   
870324 Of a cylinder capacity exceeding 3,000 cc 1.9 10.0  2 2 
880240 Airplanes and other airc raft, of an unladen weight 
exceeding 15,000 kg 1.9 1.4 1 1 1 
852520 Transmission apparatu s incorporating reception 
apparatus 1.3 0.0 3   
847330 Parts and accessories of the machines of heading 
84.71 1.2 0.0 2   
854221 Digital 1.2 0.0 25   
870899 Other 1.1 3.5  6 6 
710231 Unworked or simply sawn, cleaved or bruted 1.1 0.0 1   
271019 Other 0.9 3.8  25 25 
841112 Of a thrust exceeding 25 kN 0.7 0.7 3 1 1 
841191 Of turbo-jets or turbo-propellers 0.7 1.4 1 1 1 
880230 Airplanes and other airc raft, of an unladen weight 
exceeding 2,000 kg but not exceeding 15,000 kg 0.7 1.4 1 1 1 
270900 Petroleum oils and oils obtained from bituminous 
minerals, crude. 0.6 0.0 2   
271011 Light oils and preparations 0.6 4.7  12 12 
711319 Of other precious metal, whether or not plated or 
clad with precious metal 0.5 2.5  1 1 
710239 Other 0.5 0.0 1   
852990 Other 0.5 2.3 2 5 5 
870332 Of a cylinder capacity exceeding 1,500 cc but not 
exceeding 2,500 cc 0.5 10.0  3 3 
847989 Other 0.5 0.7 6 4 4 
851790 Parts 0.5 0.0 4   
293499 Other 0.5 1.1 5 1 1 
Table AI.3 (Cont'd) WT/REG177/3 
 Page 23 
 
 
  Egypt's top export products in 2001-2003 Access Conditions to EU's import markets
MFN (2004)  
Duty-
free in 
2004 HS number and description of the product  Share in 
global 
exports (%)  Average 
MFN applied 
rate 
(%) Duty-
free Dutiable 
890110 Cruise ships, excursion boats and similar vessels 
principally designed for the transport of persons; 
ferry-boats of all kinds 0.4 0.9 1 1 1 
848180 Other appliances 0.4 2.2  17 17 
901890 Other instruments and appliances 0.4 0.0 10   
Total of above 25.4 72 84 84 
 
Note: Tariff lines subject to in-quota rates are excluded in the computation; for the calculation of averages, specific rates a re excluded 
and the ad valorem  part of alternate rates are included. 
Based on the HS 2002 nomenclature.  
Source : WTO estimates based on data provide d by EU and UNSD, Comtrade data. 
 
4. Table AI.4 shows market access opportunities for the EU's top 25 global exports in the 
Egyptian market which account for 25.4% of the EU 's global exports.  Before  the Agreement entered 
into force, 9 out of 98 tariff lines were already duty free for imports into Egypt.  As a result of the Agreement, by the end of the transition period in 2019, all but two lines in HS Chapters 85 and 87 
will become duty free.   
Table AI.4 – Egypt: Market access o pportunities under the agreement for EU's top 25 exports to the world 
EU's top export products in 2001-2003  Access Conditions to Egypt's import markets  
MFN (2004)
Duty-free in 
Remain Dutiable HS number and description 
of the product  Share in 
global 
exports 
(%) Avg. MFN 
applied 
rate 
(%) No. of tariff 
linesDuty-free 
Dutiable 
2004 
2006 
2007 
2013 
2015 
2016 
2019 
870323 Of a cylinder 
capacity exceeding 1,500 cc but not 
exceeding 3,000 cc 3.5 95.9  8    1  1 6  
300490 Other 3.0 4.0  3 1    2    
870324 Of a cylinder 
capacity exceeding 
3,000 cc 1.9 80.5  4    1  1 2  
880240 Airplanes and other 
aircraft, of an 
unladen weight exceeding 15,000 kg 1.9 5.0  1   1      
852520 Transmission 
apparatus incorporating 
reception apparatus 1.3 0.0 1          
847330 Parts and 
accessories of the 
machines of heading 
84.71 1.2 0.0 1          
854221 Digital 1.2 0.0 1          
870899 Other 1.1 10.3  6  1  5     
710231 Unworked or simply 
sawn, cleaved or bruted 1.1 2.0  1 1        
271019 Other 0.9 9.0  7   5 2     
841112 Of a thrust 
exceeding 25 kN 0.7 5.0  1   1      
841191 Of turbo-jets or 
turbo-propellers 0.7 5.0  1   1      
Table AI.4 (Cont'd)WT/REG177/3 
Page 24  
 
  EU's top export products in 2001-2003  Access Conditions to Egypt's import markets  
MFN (2004)
Duty-free in 
Remain Dutiable HS number and description 
of the product  Share in 
global 
exports 
(%) Avg. MFN 
applied 
rate 
(%) No. of tariff 
linesDuty-free 
Dutiable 
2004 
2006 
2007 
2013 
2015 
2016 
2019 
880230 Airplanes and other 
aircraft, of an 
unladen weight 
exceeding 2,000 kg but not exceeding 
15,000 kg 0.7 5.0  1   1      
270900 Petroleum oils and 
oils obtained from 
bituminous 
minerals, crude. 0.6 5.0  2   2      
271011 Light oils and 
preparations 0.6 6.4  5   4 1     
711319 Of other precious 
metal, whether or 
not plated or clad 
with precious metal 0.5 12.0  1     1    
710239 Other 0.5 12.0  1    1     
852990 Other 0.5 10.2 1 17   1  15   1
870332 Of a cylinder 
capacity exceeding 1,500 cc but not 
exceeding 2,500 cc 0.5 90.3  7    1  1 4 1
847989 Other 0.5 5.0  2 1  1      
851790 Parts 0.5 0.0 1          
293499 Other 0.5 2.0  2   2      
890110 Cruise ships, 
excursion boats and 
similar vessels 
principally designed for the transport of 
persons; ferry-boats 
of all kinds 0.4 0.7 4 2    2     
848180 Other appliances 0.4 10.4  5   3 1 1    
901890 Other instruments 
and appliances 0.4 4.8  12   12      
Total of above 25.4 9 89 3 1 34 15 19 3 12 2
 
Note: Tariff lines subject to in-quota rates are excluded in the computation. 
Based on the HS 2002 nomenclature.  
Source :  WTO estimates based on data provide d by Egypt and Eurostat database.  WT/REG177/3 
 Page 25 
 
 
  ANNEX II 
 
 1. Tariff rate quotas resulting from the new concessi ons on agricultural, processed agricultural 
and fish and fishery products ne gotiated between the Parties and in force since 1 June 2010 are 
described in Tables AII.1 and AII.2.  
Table AII.1   
EU:  Tariff-rate quotas for agricultu ral products originating in Egypt 
CN Code (description) TRQ as of June 2010 
Tariff quota volume in 
subsequent years (tons) Quantity 
(tons) Duty Rate 
In-
Quota Out-Quota 
0702 00 00  Tomatoes, fresh or chilled, from 1 November to 
30 June unlimited 0 MFN  
0703 20 00  Garlic, fresh or chille d, from 15 January to 
30 June 4,000 0 50% of 
MFN duty Increasing annually by 3% of 
volume of previous year 
0707 00  05 Cucumbers and gherkins,  fresh or chilled, from 
15 November to 15 May 3,000 0 MFN Increasing annually by 3% of 
volume of previous year 
0709 90 70  Courgettes, fresh or chilled, from 1 October to 
30 April unlimited 0 MFN  
0709 90 80 Globe artichokes, fresh or chilled, from 1 
November to 31 March unlimited 0 MFN  
0806 10  10 Table grapes, fresh, from 1 February to 31 July unlimited 0 MFN  
0810 10  00  Fresh strawberries, from 1 October to 30 April 10,000 0 MFN Increasing annually by 3% of 
volume of previous year over five years 
1006  20  Husked (brown) rice  20,000 0 MFN Increasing annually by 3% of 
volume of previous year over five years 
1006 30  Semi-milled or wholly milled rice, whether or not 
polished or glazed  70,000 0 MFN Increasing annually by 3% of 
volume of previous year over five years 
1006 40 00  Broken rice  80,000 0 MFN Increasing annually by 3% of 
volume of previous year over 
five years 
1702 50 00 Chemically pure fructose in solid form  1,000 0 0% + (EA-
70%)  
ex 1704 90 99  Other sugar confectionery, not containing 
cocoa, containing 70% or more by weight of sucrose  1,000 0 MFN Increasing annually by 10% of 
volume of previous year over 
five years 
ex 1806 10 30  Sweetened cacao powder, containing 70% or 
more but less than 80% of sucrose (sugar)  500 0 MFN Increasing annually by 5% of 
volume of previous year over 
five years 
1806 10 90  Sweetened cacao powder, containing 80% or 
more by weight of sucrose (sugar)  500 0 MFN Increasing annually by 5% of 
volume of previous year over 
five years 
ex 1806 20 95  Chocolate and other food preparations 
containing cocoa  500 0 MFN Increasing annually by 5% of 
volume of previous year over 
five years 
ex 1901 90 99  Other food preparations of flour, groats, 
meal, starch or malt extract, not containing cocoa or 
containing less than 40% by weight  1,000 0 MFN Increasing annually by 10% of 
volume of previous year over 
five years 
ex 2101 12 98  Preparations with a basis of coffee, 
containing 70% or more by we ight of sucrose/isoglucose  1,000 0 MFN Increasing annually by 10% of 
volume of previous year over 
five years 
ex 2101 20 98  Preparations with a basis of tea or mate, 
containing 70% or more by we ight of sucrose/isoglucose  500 0 MFN Increasing annually by 5% of 
volume of previous year over five years 
ex 2106 90 59  Other flavoured or coloured sugar syrups 
(excl. isoglucose, lactose, glucose and maltodextrine syrups), containing 70% or more by weight of 
sucrose/isoglucose  500 0 MFN Increasing annually by 5% of 
volume of previous year over five years 
Table AII.1 (Cont'd)WT/REG177/3 
Page 26  
 
  CN Code (description) TRQ as of June 2010 
Tariff quota volume in 
subsequent years (tons) Quantity (tons) Duty Rate 
In-
Quota Out-Quota 
ex 2106 90 98  Other food preparations not elsewhere 
specified or included, of a kind used in drink industries, containing 70% or more by we ight of sucrose/isoglucose  1,000 0 MFN Increasing annually by 10% of 
volume of previous year over five years 
ex 3302 10 29  Other preparations of a kind used in drink 
industries, containing all flavouring agents characterizing a beverage, of an actual alc oholic strength by volume not 
exceeding 0.5%, containing 70% or more by weight of 
sucrose/isoglucose  1,000 0 MFN Increasing annually by 10% of 
volume of previous year over five years 
 
Source: Information provided by the Parties. 
 
Table AII.2   
Egypt:  Tariff-rate quotas for agricultural products originating in the EU 
 
Egyptian Code (description) Quantity 
(tons) Duty Rate 
In-Quota Out-
Quota 
ex 0207  Live bovine animals, other  Meat and edible offal, of the poultry of heading 0105, 
fresh, chilled or frozen:  
- of fowls of the species Gallus domesticus: 
0207 11   -- Not cut in pieces, fresh or chilled 
0207 12   -- Not cut in pieces, frozen 5,000 65% of MFN MFN 
ex 0406 10   Fresh (unripened or uncured) cheese,  including whey cheese, and curd, (less 
than 20 kg)  1,000 50% of MFN MFN 
1704  Sugar confectionery (including white chocolate), not containing cocoa unlimited 50% of MFN MFN 
1806  Chocolate and other food preparations c ontaining cocoa unlimited 50% of MFN MFN 
1902  Pasta, whether or not cooked or stuffed (with m eat or other substances) unlimited 50% of MFN MFN 
1905  Bread, pastry, cakes, biscuits and other bakers' wares unlimited 50% of MFN MFN 
2004  Other vegetables prepared or preserved ot herwise than by vinegar or ascetic acid, 
frozen, other than products of heading 2006  unlimited 50% of MFN MFN 
Ex 3302 Mixtures of odoriferous substances and mixtures (including alcoholic solutions) 
with bases of one or more of these substances, of a kind used as raw materials in industry; 
other preparations based on odoriferous substa nces, of a kind used for the manufacture of 
beverages: - of a kind used in the food or drink industry: 
3302 10 10   -- compound alcoholic preparations of a kind used for manufacture of 
beverages  unlimited 35% of MFN MFN 
 
Source:  Information provided by the Parties.  
__________