Egypt WT/TPR/S/150/Rev.1 
 Page 11 
 
 
II. TRADE AND INVESTMENT REGIMES 
(1) INSTITUTIONAL FRAMEWORK  
1. Egypt is a presidential republic.  In accord ance with the Constitution of 1971, executive 
authority is vested with the President, as Head of State.  Candidates for the position of President must 
be nominated by the People's Assembly and then re ferred to the people for an election.  To win the 
nomination, the candidate must be proposed by at le ast one third of the Assembly and gain two thirds 
of its votes.  The President's term of office is six years from the date of announcing the results of the plebiscite;  the incumbent may be re-elected for an  unlimited number of terms.  The next presidential 
plebiscite is scheduled for September 2005.   
2. The President of the Republic appoints the Cabine t or the Council of Ministers, consisting of 
the Prime Minister, ministers and their deputies.  The responsibilities of the Cabinet include formulating and implementing the policies of the State;  preparing draft laws and decrees; drafting the State Budget; and preparing the General Plan fo r Economic and Social Development.  Cabinet 
Ministers are not required to be members of th e Assembly.  The present Cabinet consists of 
34 ministers. 
3. At the regional level, Egypt is divided in to administrative units, including governorates, 
comprising cities and villages.  Local People's Councils are elected by the administrative units with the requirement that at least half of each Counc il comprises workers and farmers.  There are presently 
26 governorates and the City of Luxor.
1  The President appoints the governors and the Head of the 
High Council of the City of Luxor.   
4. The legislative branch of the Government is the unicameral People's Assembly 
(Majlis al-Sha'ab).  All government policies, laws , the State Budget, the General Plan for Economic 
and Social Development, and agre ements between Egypt and other c ountries must be approved by the 
Assembly.  In addition, at the beginning of the parliamentary session, the Cabinet submits its annual 
agenda to the Assembly for approval.  The number of members elected to the Assembly must be at 
least 350, of which half must be elected by direct ballot, plus up to ten members appointed by the 
President.  At present, the Assembly consists of 454 members, of which ten were appointed by the 
President.  The Constitution stipulates that at least ha lf of the members of the People's Assembly must 
be "farmers and workers".  The Assembly sits for five years from the date of its first meeting.  Dissolution of the Assembly may only be pronounced by the President upon confirmation by a referendum of the people.  The next legislative elections are scheduled for September 2005.  
5. The Assembly has 18 specialized committees to he lp it in its decision-making.  These are for 
constitutional and legislative affairs;  the genera l plan and budget;  econom ic affairs;  foreign 
relations;  Arab affairs;  defence, national secur ity and mobilization;  proposals and complaints;  
manpower;  industry and energy;  agriculture and irrigation;  education and scientific research;  
religious, and social affairs and "Waqfs";  culture, information and tourism;  health and environmental 
affairs;  transportation and telecommunications;  housing, public utilities and reconstruction;  local 
government and public organizations;  and youth. 
6. A Consultative Council (Shura) is referred to for constitutional amendments, drafts of the 
General Plan for Social and Economic Development,  all treaties affecting the State's territorial 
integrity or concerning sovereign rights;  peace treaties and alliances;  and draft laws and other 
                                                     
 
1 The 26 governorates are: Alexandria, Aswan, Asiut,  Beheira, Beni Suef, Cairo, Dakahliya, Damietta, 
Fayoum, Gharbiya, Giza, Ismailiya, Kafr El-Sheikh, Kalyobia, Kena, Matroh, Monofiya, Minia, New Valley, North Sinai, Port Said, Red Sea, Sharkiya, Sohag, South Sinai, and Suez. WT/TPR/S/150/Rev.1 Trade Policy Review 
Page 12 
 
 
matters referred to the Council by the President.  Pursuant to Article 195 of the Constitution, the 
Shura shall notify the President and the People's asse mbly of its recommendations.  Two thirds of the 
members of the Council are elected by universal suffrage ;  the others are appointed by the President.  
There are currently 264 members of the Council.  The term of the Council is six years;  half of the 
seats are rotated every three years.   
7. Egypt's judicial system has three components:  the Supreme Constitutional Court,  the 
Council of State, and the ordinary court system.  The Supreme Constitutional Court is vested with 
judicial control over the constitutionality of laws and regulations.  It may also rule on any judgements 
made by the Court of Appeals or other national c ourts, and on any conflict of law between the civil 
and administrative courts.  The Council of State is responsible for adjudicati ng administrative matters;  
it also reviews all draft legislation before it is cons idered by the Cabinet.  Egypt's ordinary courts 
consist of regular civil and criminal courts, and sp ecial courts such as the Court of Ethics and State 
Security Courts.   
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
8. Policies are generally formulated and implemen ted by means of legislation initiated by the 
relevant ministries;  proposals may also be submitted by members of the People's Assembly.  All bills 
must be introduced in, and passed by, the People's Assembly, by an absolute majority of members 
present.  Each bill is first referred to the Committe e for Constitutional and Legislative Affairs in the 
Assembly, and, if appropriate, to other specia lized committees, for recommendations.  Once approved 
by the Assembly, the bill is sent to the President for approval.  The President may withhold approval 
and refer back to the Assembly within thirty days.  Bills nevertheless become law if they are approved 
by a two-thirds majority of the Assembly.  La ws are proclaimed through publication in the 
National Gazette.   
9. Under exceptional circumstances, and upon authori zation by two thirds of the Assembly, the 
President may issue decrees having the force of law.   The decrees must be submitted for approval to 
the Assembly after the authorization period, which varies depending on the subject of the decree;  if 
they are not approved by the Assembly or not su bmitted to the Assembly after the authorization 
period, they cease to have the force of law.    
10. Responsibility for trade policy formulation is with the Ministry of Foreign Trade and 
Industry, in consultation with the Ministerial Ec onomic Group, chaired by the Prime Minister, which 
drafts legislation to be introdu ced in the Assembly. The Minister ial Economic Group is composed of 
representatives of the Central Bank and the Ministries of Finance;  Internal Trade and Supply;  
Planning;  International Cooperation;  Investment;  and Foreign Trade and Industry.  
11. Trade policy is implemented by the Ministry of Foreign Trade and Industry, established in 
July 2004 through a merger of the Ministry of Foreign Trade and the Ministry of Industry and Technological Development.  The Ministry coor dinates implementation with other state entities 
(where necessary), most notably, the Ministries of Agriculture and Finance (Table II.1).  
Inter-ministerial consultations are also carried out to assess the impact of major policy changes on 
various sectors of the economy.  Egypt WT/TPR/S/150/Rev.1 
 Page 13 
 
 
Table II.1 
Ministerial responsibility for trade-related issues 
Ministry/Agency Competence 
Ministry of Agriculture Agriculture, including phytosanitary standards 
Ministry of Communication and Informati on Technology E-commerce, postal services 
Ministry of Civil Aviation Air transport 
Ministry of Culture Copyright (books) 
Ministry of Electricity and Energy Energy 
Ministry of Finance Public procurement 
   Customs Authority Customs tari ff, valuation, rules of origin 
Ministry of Foreign Trade and Industry Trade polic y, foreign trade, contingency measures, export 
promotion 
   Egyptian Organization for Standardization and Quality  Standards 
   General Organization for Export and Import Control Import and export inspections, including quality control 
Ministry of Internal Trade and Supply Trade marks 
Ministry of Health  Sanitary standards 
Ministry of Higher Education and  Scientif ic Research  Research and development 
Ministry of Information Copyright (audio-visual) 
Ministry of Investment Foreign investment 
   General Authority for Invest ment and Free Zones Investment 
Ministry of Petroleum Petroleum and natural gas 
Ministry of Planning 5-year plan s, general expenditure planning 
   Egyptian Insurance Supervisory Authority Insurance 
Ministry of Public Enterprise Privatization 
   Egyptian Patent Office Patents 
Ministry of Tourism Tourism 
Ministry of Transport  Maritime transport, ports 
Source : Information provided by the Egyptian authorities. 
12. The ministries are assisted by autonomous and advisory bodies, such as the High Ministerial 
Economic Reform Committee (HMERC), the Cabinet Policy Committee, and the Economic Group of 
Ministers.  The HMERC, headed by the Prime Mini ster and with representation from the Ministries of 
Economy, Foreign Trade and Industry,  and Finance, relevant sectoral ministries, the Chairman of the 
Public Enterprise Office (PEO), and the Chairman of the High Official s Committee, is responsible for 
issues relating to the stabilization and reform pr ogramme, including trade liberalization. The HMERC 
is assisted by the High Officials Committee, made  up of high-level government officials, which 
prepares quarterly reports assessing the state of the economy and recommending further reforms to be 
undertaken.   
13. Informal consultations are carried out with academia and organized interest groups, including 
the General Federation of Chambers of Commerce, the Federation of Egyptian Industries (FEI), the 
Egyptian Businessmen's Association (EBA), and trade associations.   
(3) TRADE POLICY OBJECTIVES  
14. Egypt's national policy objectives are aimed at achieving private-sector led, outward-oriented 
economic growth, by maintaining a stable macro economic environment, creating a business friendly 
environment, attracting foreign direct inv estment, and developing capital markets.  
15. Egypt is seeking to liberalize its trade regi me, on an MFN basis through WTO negotiations 
and unilateral tariff reductions, and on a preferential basis through reciprocal agreements with trading 
partners of particular interest.  In agriculture, Egypt seeks meaningful multilate ral liberalization.  In WT/TPR/S/150/Rev.1 Trade Policy Review 
Page 14 
 
 
the services sector, Egypt supports greater multilateral trade liberalization, most notably in mode 4, 
and increased participation of developing countries in the multilateral trading system. 
(4) MAIN TRADE LAWS AND REGULATIONS  
16. Egyptian legislation is based on the general s ubordination of domestic law to international 
legal instruments.  Under Article 151 of the Constitu tion, any international agreement or convention, 
after being ratified by the Assembly and published in the National Gazette , becomes legal in Egypt 
and supersedes national legislation, notwithstanding constitutional provisions that may contradict it.  
International agreements thus re quire no further legislative implementation to be invoked before 
national courts.  However, for implementation purposes, revision/amendment/introduction of new 
legislation may be required to ha rmonize national laws with intern ational commitments.  Challenges 
of WTO-related decisions and rules may be  brought before the Council of State. 
17. The main legislation relating to internationa l trade is the Customs Law 66/1963 (amended by 
Laws 88/1976, 75/1980, and 158/1997), and Law 118/1975 on Import and Export (known, together 
with its executive regulations, as the Import and Export Regulations) (Table II.2).  Since its last Trade 
Policy Review, in 1999, Egypt has adopted new legi slation on intellectual property rights, customs 
valuation, and export promotion.  The Custom s Exemption Law 186/1986, as amended, and its 
executive regulations provide details  of the various tax exemptions granted to certain sectors of the 
economy.  Egypt's current applied customs tariff wa s issued by Presidential Decree 300/2004.  There 
is no specific legislation on foreign investment, but the Companies Law (159/1981) and the Law of Investment Guarantees and Incentives (8/1997) c ontain various provisions on foreign investment 
(section (5)).  
Table II.2 
Main trade-related laws 
Law Area 
Presidential Decree 300/2004 Customs tariff  
Customs Exemption Law (186/1986) as amended Tariff exemptions  
Customs Law (66/1993) as amended Customs procedures 
Decree 765/2001 on Determination of the Value of Goods for 
Customs Purposes Customs valuation 
Law 161/1998 Anti-dumping, counterva iling and safeguard measures  
Law on Investment Guarantees and Incentives (8/1997), and its 
Executive Statutes;  Companies Law (159/1981) Foreign investment  
Intellectual Property Law (82/2002) and its Execu tive Statutes Intellectual property rights  
Law 118/1975 on Import and Export as amended with Executive 
Regulations  Registration, levies and charges, barter and countertrade, labelling 
and quality control 
Export Promotion Law (155/2002) Export promotion   
Tenders Law (89/1998) Government procurement  
Standardization Law (2/1957) Standards   
Agricultural Law (53/1996); Pharmaceutical Law (14/1984) Sanitary and phytosanitary measures   
Source : Information provided by the Egyptian authorities. 
(5) INVESTMENT REGIME  
18. Three main laws govern investment:  the Companies Law (159/1981), the Investment 
Guarantees and Incentives Law (8/1997, amended by Laws 162/2000, 13/2002, and 13/2004), and the Egypt WT/TPR/S/150/Rev.1 
 Page 15 
 
 
Special Economic Zones Law (83/2002).2  There is no specific law on foreign investment.  Foreign 
investors may choose to invest in Egypt eith er under the Companies La w or the Investment 
Guarantees and Incentives Law , depending on the t ypes of incentive sought and the areas in which 
the investment is to be made.  The Companies Law supplements the Civil and Commercial Codes of 
Egypt and forms the basic Corporation Law.  Th e Companies Law provides a number of investment 
incentives, including exemptions from stamp duties and related fees, and tax exem ptions of up to 50% 
on income earned from stock exchange registered shares.   
19. The Investment Guarantees and Incentives Law,  passed in May 1997, allows investment 
through joint-ventures, limited liability compan ies, and partnerships, and governs "inland 
investments", essentially domestic investment projects, and investment in free zones, which are 
treated as outside the domestic economy for taxation, customs, and trade purposes.  Unlike the Companies Law, which applies to all investment , the Investment Guarantees and Incentives Law 
applies to investment (domestic or foreign) in certa in specified activities or sectors, subject to further 
amendments by the Cabinet (Table II.3).
3 
Table II.3 
Areas eligible for incentives under the Inve stment Guarantees and Incentives Law  
Air transportation and directly related services 
Animal, poultry and fish farming 
Financial leasing 
Hospital and medical centres offering 10% of  their service capacity free of charge 
Hotels, motels, boarding houses, tourist villa ges, tourist travel  and transportation 
Housing projects whose units are to be leas ed unfurnished for non-administrative purposes 
Industry and mining 
Infrastructure relating to drinking water, sewage , electricity, roads, and communications services 
Oil services in support of exploration a nd the transport and delivery of natural gas 
Overseas maritime transport 
Production of computer software and systems 
Projects funded by the Social Fund for Development 
Reclamation and cultivation of barren and/or desert lands 
Transport of goods in refrigerated vans;  refrigerators for the preservation of agricultural products, industrial products, and  foodstuffs; 
container depots and grain silos 
Underwriting subscriptions to securities 
Venture capital 
Source : Information provided by the Egyptian authorities. 
20. Investment incentives under the Investment  Guarantees and Incentives Law include tax 
holidays for company profits, personal income tax on dividends, and annual stamp duty on capital.  
Tax holidays are granted for five years for all invest ments;  up to ten years for companies established 
in the new industrial zones, new urban communities or  remote areas;  and up to 20 years from the date 
of establishment for investments outside the Ol d Valley.  Exemptions from stamp duty, and 
notarization and registration fees are provided for up to three years from registration in the 
Commercial Register.  In addition, all customs duties on capital imports by companies registered 
                                                      
2 Other laws of relevance to foreign investment include the Commercial Register Law (34/1976); the 
Income Tax Law (157/1981);  Industrial Licensing Law (21/1958);  the New Urban Communities Law (59/1979);  and the Industrial Shops Law (453/1954), as well as other laws affecting land ownership and 
registration. 
3 Article 1 of Law 8/1997 establishes that the Cabinet of Ministers may add other activities to those 
already mentioned. WT/TPR/S/150/Rev.1 Trade Policy Review 
Page 16 
 
 
under the Law are reduced to 5%.4  In addition to tax advantages, investors receive, inter alia , 
guarantees against confiscation;  immunity from ad ministrative sequestration;  assurance of no 
controls on prices or profits;  and the right to import and export inputs a nd final products without 
being required to use agents and export licences.  
21. The authorities indicate that new tax legislation is under consideration by the People's 
Assembly.  The bill provides for the reduction of  tax exemptions, including those available under 
Law 8/1997.  However, this reduction of exempti ons will apply only to companies established after 
the entry into force of the new tax law.  Additiona lly, the bill provides for a reduction of the standard 
corporate tax rate from 42% to 20%.  
22. With a view to attracting foreign investment, Egypt has been promoting the establishment of 
free zones (Chapter III(3)(v)).   Free zones may be established by the Council of Ministers under 
Article 29 of Law 8/1997.  Investors in the "public free zones" (currently seven), as well as in private 
free zones, are exempt from rules or customs pr ocedures for imports and exports.  They are also 
exempt from customs taxes, general sales tax an d any other taxes or duties for the duration of 
individual projects.  The draft tax law does not provide for a reduction of tax incentives in the free 
zones. 
23. General investment, including in free zones, whet her foreign or domestic, is managed by the 
General Authority for Foreign Investment and Free Zones (GAFI), established by Presidential 
Decree 284/1997.  The Board of Directors of GAFI comprises of GAFI's Chairman, three deputies, 
and nine investors.5   
24. GAFI's role has gradually shifted from an inv estment-regulating to an investment-promoting 
and facilitating institution.  La w 13/2004, amending Law 8/1997, is aimed at facilitating the 
establishment of new companies by making GAFI a one-stop office for investors.  The amendment 
also empowers GAFI to give temporary licences for project establishment, and to act on behalf of investors and government bodies throughout the life cycle of a project.  GAFI has been operating a one-stop office for investors since January 2005:  th e authorities indicated that the average time to 
register a company is now three days. 
25. An annual charge of 1% is payable to GAFI on the c.i.f. value of commodities entering a free 
zone for storage, and for manufactured and assembled items exiting a free zone.
6  Goods that transit a 
free zone are exempt from this charge, whereas th e charge for services activities, is 1% of total 
revenues realized.7  In addition, there is a service fee of 0.05% of the capital cost of projects, payable 
annually to GAFI.8 
26. There are no restrictions on repatriation of funds by companies, or rules requiring foreign 
companies to hold foreign currency accounts.  Land ownership by forei gners is governed by 
Law 15/1963, which forbids foreign ownership of agricultural land;  Law  230/1996, which allows 
non-Egyptians to own up to two private reside nces in Egypt (each of an area up to 4,000 m2) but these 
may not be sold within a minimum of five years of the date of purchase9;  and Law 143/1981, which 
requires that Egyptians have a majority shar e in any desert land, defined as land beyond two 
                                                      
4 Article 23 of Law 8/1997. 
5 Presidential Decree 316/2004. 
6 Law 8/1997, Section 3, Article 35. 
7 Law 8/1997, Section 3, Article 35. 
8 Law 8/1997 and its Executive Regulations, Part VII, Article 51.  The minimum and maximum 
amounts are LE 300 and LE 3,000, respectively. 
9 Exceptions to these two conditions may be granted by the Prime Minister. Egypt WT/TPR/S/150/Rev.1 
 Page 17 
 
 
kilometres from the border of a city.  Law 143/1981 has priority over Law 8/1997;  thus, a 
joint-venture company (formed under the latter) wish ing to pursue an activity requiring the ownership 
of desert land would require ma jority Egyptian ownership. 
27. Egypt has been very active in concluding bilatera l investment agreements;  by January 2005 it 
had concluded treaties with 43 countries.  The au thorities indicate, however, that not all of these 
treaties have yet entered into force, due to long ratif ication procedures.  Egypt is also a member of the 
World Bank's Multilateral Investment Guarantee Agency (MIGA).   
(6) TRADE AGREEMENTS  
(i) World Trade Organization 
28. A contracting party to the GATT since 1970 and a WTO Member since 30 June 1995, Egypt 
participates actively in the multilateral trading system .  It grants at least MFN treatment to all its 
WTO trading partners.  Egypt became party to  the Information Technology Agreement on 
24 April 2003;  it is also a signatory to the plur ilateral Agreement on Trade in Civil Aircraft.   
29. At the Seattle Ministerial Conference in 1999, Egypt argued that implementation issues 
should be addressed satisfactorily by Members.10  At the Ministerial Conferences in Doha (2001) and 
Cancún (2003), Egypt underlined its commitment to a new round of trade negotiations with a clear 
development profile.11  It called upon the WTO to truly address the needs of developing countries by, 
inter alia , further liberalizing the agriculture sector  and tackling issues such as implementation 
problems and special and differential treatment.   
30. Under the Doha Development Agenda, Egypt has,  either on its own or in conjunction with 
other Members, submitted proposals on agriculture12, non-agricultural market access13, special and 
differential treatment14, dispute settlement15, rules16, services17, and trade facilitation.18  Egypt seeks 
meaningful multilateral liberalization of the agricult ure sector.  It also supports a liberal market access 
for non-agricultural goods, but believes that concer ns should be accommodated for certain industries 
that have not yet taken hold in developing economies.  Egypt considers issues, such as implementation, special and differential treatment , and rules as essential to the integration of 
developing countries into the multilateral trading system.   
31. Notifications made by Egypt to the WTO since 1999 are listed in Table II.4. 
                                                     
 
10 WTO document WT/MIN(99)/ST/113, 2 December 2003. 
11 WTO documents WT/MIN(01)/ST/36, 10 November 2001, and WT/MIN(03)/ST/135, 
13 September 2003. 
12 WTO document TN/AG/GEN/9, 7 May 2004. 
13 WTO document TN/MA/W/31, 25 March 2003. 
14 WTO documents TN/CTD/W/2, 14 May 2002, and TN/CTD/W/24, 6 December 2002. 
15 WTO document TN/DS/W/47, 11 February 2003. 
16 WTO documents TN/RL/W/48/Rev.1, 5 February 2003; TN/RL/W/55-57, all 10 February 2003; 
TN/RL/W/79, 24 March 2003;  TN/RL/W/100-102, all 6 May 2003;  TN/RL/W/105, 8 May 2003; 
TN/RL/W/110, 23 May 2003; TN/RL/W/126, 17 June 2003;  TN/RL/W/128, 19 June 2003;  and TN/RL/W/140-141, 22 July 2003. 
17 WTO documents TN/S/W/14, 3 July 2003; TN/S/W/16, 25 July 2003;  and TN/S/W/19, 
31 March 2004.  
18 WTO document TN/TF/M/1, 6 December 2004. WT/TPR/S/150/Rev.1 Trade Policy Review 
Page 18 
 
 
Table II.4 
Egypt's notifications under the WTO Agreements, August 2004 
WTO Agreement Description of requireme nt/content WTO document and date  
Agreement on Agriculture   
Article 10 Export subsidies   G/AG/N/EGY/2, 7 May 1999 
Article 18.2 Domestic support  G/AG/N/EGY/1, 7 May 1999 
Agreement on Implementation of GATT Article VI (Anti-dumping)  
Article 16.4 Anti-dumping actions ta ken  G/ADP/N/114, 6 February 2004 
Article 16.4 Reports  G/ADP/N/121, 6 August 2004 
Article 16.4  Semi-Annual Report   G/ADP/N/119/EGY, 13 September 2004  
Article 16.4 Semi-Annual Report  G/ADP/N/126/EGY, 10 January 2005 
Article 16.4  Semi-Annual Report   G/ADP/N/126/, Add.1, 1 April 2005  
GATS     
Article III:3 Legislations related to supervisi on, and to insurance activity S/C/N/116, 31 March 2000 
Articles III:4 and 
IV:2 Contact and enquiry points S/ENQ/78/Rev.6, 25 May 2004. 
Market Access    
Article XXVIII:5  Notification of Sche dule LXIII  G/MA/85, 19 November 1999 
Agreement on Implementation of GATT Article VII (Customs Valuation)  
Annex III:1 Extension of the delay in the full app lication of the agreement G /VAL/W/56, 13 January 2000 
Annex III:1 Work programme for the implementation of  the agreement G/VAL/W/ 56/Add.1, 21 February 2000 
Annex III:1 Relevant information on sugar G/VAL/N/4/EGY, 2 August 2000 
Annex III:1 Status report on the work pr ogramme G/VAL/N/4/E GY/2, 19 January 2001 
Agreement on Safeguards    
Article 12.1(a) Notification of safeguard inves tigations G/SG/N/6/EGY/2/Suppl.1, 7 February 2001 
G/SG/N/6/EGY/3, 27 September 2000 G/SG/N/6/EGY/2, 24 September 1999 
Articles 12.1(b);  12.1(c);  and 12.4 Notification of safeguards G/SG/N /8/EGY/4, and G/SG/N/10/EGY/4, 
3 April 2001 G/SG/N/8/EGY/3, and G/SG/N/10/EGY/3 
28 February 2001 
G/SG/N/8/EGY/2/Suppl.1, and G/SG/N/10/EGY/2/Suppl.1, 13 April 2000 
G/SG/N/8/EGY/2, and G/SG/N/10/EGY/2, 
1 March 2000 G/SG/N/7/EGY/2/Corr.1, 6 November 2000 
G/SG/N/7/EGY/2, 26 September 2000 
Article 12.5 Notification of safegua rd measure on imports of powdered 
milk G/SG/N/12/EGY/1, 25 July 2001 
Agreement on Subsidies a nd Countervailing Measures   
Article 25 Notification of subsidies  G/SCM/N/38/EGY, 5 May 1999 
Article 25.11 Countervailing duty actions taken  G/SCM/N/106/A dd.1, 27 April 2004 
Article 25.11 Semi-Annual reports  G/SCM/N/113/Add.1, 25 October 2004 
Agreement on Textiles and Clothing   
Article 3.3 Changes made to consulta tion levels maintained by the EC 
vis-à-vis  Egypt G/TMB/N/424, 20 February 2002 
 
Article 2.8(b) and 
2.11 Stage III of the integration of tops and yarns, fabrics, clothing 
and made-up textile products G/TMB/N/435, 14 March 2002 
Agreement on Trade-Related Aspects of Intellectual Property Rights  
Article 63.2 Laws and regulations  IP/N/7/Rev.2/Add.4, 24 April 2001 
Article 63.2 Main dedicated intellectual prope rty laws and regulations IP/N/1/EGY/I/1 
Article 69 Notification of contact poi nt IP/N/3/Rev.6/Add.1, 24 July 2002 
Source: WTO documents. 
32. Since its last TPR, in 1999, Egypt has been a de fendant in one dispute and reserved its third 
party rights in another. The case involving Egypt as a defendant relates to definitive anti-dumping Egypt WT/TPR/S/150/Rev.1 
 Page 19 
 
 
measures on steel rebar from Turkey.  In June 2001,  after consultation between the two parties failed 
to find a solution, the DSB established a panel to ex amine the issue.  The Panel Report, adopted in 
August 2002, concluded that Egypt had acted incons istently with its obligations under Articles 3.4. 
and 6.8. of the WTO Agreement on Anti-dumping, but in line with other Articles of the Agreement.  
The Report recommended that Egypt bring its anti-dumping measure under question into full 
conformity with the Agreement.19  The case involving Egypt as a third party relates to anti-dumping 
duties imposed by the European Communities on imports of cotton-type bed linen from India.20 
33. Between July 1999 and December 2004, Egyp t participated in 132 WTO technical 
cooperation activities.  The projects and seminars covered a wide range of  WTO-related issues, 
including dispute settlement, competition policy, multila teral negotiation training, technical barriers to 
trade, and general training courses for government officials. 
(ii) Preferential trade agreements 
34. Since its last Review, Egypt has signed a number  of bilateral and regional trade agreements.  
Negotiations on a free-trade agreement are ongoing with EFTA and Turkey.  Egypt has not been 
involved in any trade dispute outside the WTO since 1999.  
(a) EU-Egypt Agreement 
35. The Agreement between Egypt and the European  Union entered into force on 1 June 2004, 
replacing the 1977 Cooperation Agreement.21  The trade and trade-related provisions of the agreement 
had entered into force on a provisional basis on 1 Ja nuary 2004 through an interim agreement.  This 
agreement is of particular importance for Egypt, as the European Union is its most important trading 
partner, its main source of FDI, and its princi pal bilateral donor.  The agreement also includes 
provisions on political, scientific, technological, and cultural cooperation.  It establishes an 
Association Council, which will meet at ministerial level once a year, and an Association Committee,  
which is responsible for the im plementation of the agreement. 
36. The agreement provides for the establishment of a free-trade area within 15 years.  
Quantitative restrictions and other measures having e quivalent effect on trade were abolished when 
the agreement entered into force.  With the exception of a number of products (including wool, cotton, 
hides and skins, various oils), imports into the EU, of products of HS chapters 25 to 97 originating in 
Egypt, are allowed free of customs duties.  Custom s duties on imports into Egypt originating in the 
EU are to be phased out over a maximum of 15 years,  depending on the product and according to four 
product lists annexed to the agreement.  For items of HS chapters 1 to 25, two positive lists mention 
the agreed tariff reduction.  The agreement also specifies that the EU and Egypt shall gradually 
liberalize a greater share of thei r trade in agricultural and fisheries products;  discussions in this 
context started in February 2005. 
37. Protocol 4 of the agreement defines "originati ng products" and lays down rules on bilateral 
cumulation and diagonal cumulation with materials or iginating in Algeria, Israel, Jordan, Lebanon, 
Morocco, Syria, Tunisia, Turkey, or the West bank and the Gaza strip.  The origin of one of the 
parties is applied to products who lly obtained from, or sufficiently worked or processed in it.  As a 
general rule, working or processing is deemed suffic ient if the product obtained is classified in a 
                                                      
19 WTO document WT/DS211/R, 8 August 2002  
20 WTO document WT/DS141/R, 30 October 2000. 
21 The agreement is available online in English:  http://europa.eu.int/comm/external_relations/ 
egypt/aa/06_aaa_en.pdf. WT/TPR/S/150/Rev.1 Trade Policy Review 
Page 20 
 
 
different heading from that of all the non-originatin g materials used in its ma nufacture.  Nevertheless, 
for a number of products, special criteria on work ing or processing are defined in the agreement. 
38. Both parties reaffirm their rights and obliga tions under the GATS and the WTO Agreements 
on Safeguards, Anti-Dumping, and Subsidies and Countervailing Measures.  With regard to trade in 
services, both parties agreed to consider extending  the Agreement to include its liberalization, 
including the right of establishment of companies of one party in the territory of the other.  This 
objective will be subject to examination at the latest  in 2009.  Furthermore, both parties will ensure 
the free circulation of capital for foreign direct inve stment and the repatriation of any profit stemming 
therefrom.  The agreement also covers the right of  establishment, technical barriers to trade, public 
procurement, competition rules, and intellectual property rights. 
(b) Agreement with Jordan, Morocco, and Tunisia 
39. On 25 February 2004, Egypt signed a free- trade agreement with Jordan, Morocco, and 
Tunisia.  The so-called Agadir Agreement commits the parties to removing substantially all tariffs on 
trade between them by 1 January 2005, and to in tensifying economic coope ration with regard to 
standards and customs procedures.  The agreement also covers government procurement, financial 
services, contingency measures, intellectual property, and dispute settlement.  The conclusion of this 
agreement is considered to be a major step to wards the objective of creating a Euro-Mediterranean 
free trade-zone in 2010, as it also contains rules on bilateral and diagonal cumulation.  However, as at 
April 2005, the agreement had not yet been implemented;  it had been ratified only by Egypt and Tunisia.  For this reason, Egypt's trade relations  with Jordan, Morocco, and Tunisia are still governed 
by bilateral agreements that have been in force since 1999. 
(c) Greater Arab free-trade area 
40. The Greater Arab free-trade area (GAFTA) programme, signed on 19 February 1997 to 
implement the Agreement on Facilitation and Development of Trade among Arab Countries
22, entered 
into force on 1 January 1998.  This agreement is considered to be the backbone of Arab economic 
integration.  It encompasses all the members of the Arab League23, and aims to create a vast Arab 
free-trade area by 2007 by dismantling customs ta riffs by 10 percentage points annually over a 
decade.  The principal entity responsible for impl ementing the programme is the Economic and Social 
Council of the Arab League.  In addition, the Uni on of Arab Chambers of Commerce has been tasked 
to produce a half-yearly report on the difficulti es encountered by traders with the customs 
administration and regulatory agencies of individual member countries.  Currently, 17 members are 
implementing the programme (Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libyan Arab 
Jamahiriya, Morocco, Oman, Palestinian Authority,  Qatar, Saudi Arabia, Sudan, Syrian Arab 
Republic, Tunisia, United Arab Emirates, and Yemen).   
(d) Common Market for Eastern and Southern Africa (COMESA) 
41. COMESA aims to deepen and expand the integration process for member countries by 
adopting general measures to liberalize trade.  Th ese include the removal of all tariff and non-tariff 
barriers and the adoption of a common external ta riff;  free movement of capital, labour and goods, 
and the right of establishment in the region;  the adoption of a common set of standards, technical 
regulations, quality control procedures, certific ation systems, and sanitary and phytosanitary 
                                                      
22 This agreement dates from 27 February 1981. 
23 The 22 members are:  Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, 
Libyan Arab Jamahiriya, Mauritania, Morocco, Oman, Palestinian Authority, Qatar, Saudi Arabia, Somalia, Sudan, Syrian Arab Republic, Tunisia, United Arab Emirates, and Yemen. Egypt WT/TPR/S/150/Rev.1 
 Page 21 
 
 
regulations;  tax harmonization (including VAT and excise duties), and provisions on industrial 
cooperation in spheres such as company law, intell ectual property, and investment;  implementation 
of a harmonized competition policy;  a nd the establishment of a monetary union.24  The COMESA has 
been notified to the WTO under the Enabling Clause. 
42. Egypt became a member of the 20-nation COMESA in June 1998.25  COMESA's Common 
External Tariff (CET) was to be in place by 2 004, with rates of 0%, 5%, 15% and 30%, on capital 
goods, raw materials, intermediate , and final goods, respectively.  However, by December 2004, the 
CET had not yet been implemented;  members states are conducting studies to reach a decision on the timing for its implementation.  On 31 October 2000, Eg ypt, together with eight other member states 
(Djibouti, Kenya, Madagascar, Malawi, Mauritius, S udan, Zambia, and Zimbabwe) eliminated tariffs 
on COMESA - originating products.  Burundi and Rwanda joined this free-trade area on 
1 January 2004. 
43. A monetary harmonization programme is to be  implemented in four stages between 1992 and 
2025.  The last stage should result in a full-fledge d monetary union in which there will be either 
permanently fixed exchange rates or a single currency;  full harmonization of the member states' 
economic, budgetary, and monetary polici es;  full integration of the financial structure;  a pooling of 
exchange reserves;  and the establishment of a single monetary authority.  A coordination body 
composed of experts from central banks and minist ries of finance in the region has been set up to 
oversee implementation of the measures and ensure that the harmonization process makes progress towards monetary union. 
(e) Agreements with Iraq, Lebanon, Libya, and Syria 
44. Egypt has bilateral trade agreem ents with Syria and Libya (entry into force in 1991), Lebanon 
(1999), and Iraq (2001).  The authorities indicate that preferences under these agreements will eventually be absorbed by GAFTA. 
(iii) Other arrangements 
45. In July 1999, Egypt and the United States signed a Trade and Investment Framework 
Agreement, a preliminary step toward a free-trad e agreement.  The agreement established a Council 
on Trade and Investment composed of representatives of both governments, and chaired by the USTR and Egypt’s Ministry of Economy and Foreign Trade.  The Council meets regularly to discuss specific trade and investment matters; working groups ha ve been established on customs administration and 
reform, government procurement, SPS issues, and agricultural tariff issues.   
46. Under the U.S. umbrella, Egypt signed a trade protocol with Israel on 14 December 2004.  
The protocol establishes what are ca lled "qualified industrial zones" in Egypt.  Products from these 
zones will enjoy duty-free access to the United States , provided that 35% of their components are the 
product of Israeli-Egyptian cooperation.   
47. Egypt benefits from non-reciprocal preferences under the Generalized System of Preferences 
(GSP) of Australia, Belarus, Bulgaria, Canada, Jap an, New Zealand, Norway, the Russian Federation, 
Switzerland, and the United States.  Egyptian exports  of products covered by the GSP are totally or 
partially exempt from customs tariffs in those countries. 
                                                     
 
24 COMESA online information.  Availabl e at:  http//:www.comesa.org/obj.htm. 
25 The other members are Angola, Burundi, Comoros, Democratic Republic of the Congo, Djibouti, 
Eritrea, Ethiopia, Kenya, Madagascar , Malawi, Mauritius, Namibia, Rwanda, Seychelles, Sudan, Swaziland, 
Uganda, Zambia, and Zimbabwe.  Lesotho, Mozambique, and Tanzania have withdrawn. WT/TPR/S/150/Rev.1 Trade Policy Review 
Page 22 
 
 
48. As a participant in the Global System of Trade Preferences (GSTP), Egypt grants tariff 
preferences to all the other GSTP signato ries on a range of specified products.  
49. Egypt participates in the framework agreem ent on the Trade Preferences System among 
Islamic Countries.  According to the authorities, ne gotiations for further tari ff reductions under this 
agreement are under way. 
50. Egypt is a member of the International Suga r Organization, and of other international 
agreements concerning cotton, jute, olive oil, tropical  timber, and wheat.  It is also a member of the 
International Textiles and Clothing Bureau.