He said Egypt wants to include agricultural goods in the overall agreement, while EFTA members want to negotiate the terms for these products on an individual basis. The issue of agricultural products is also a sticking point in free trade negotiations between Egypt and the European Union. Selim, however, is optimistic that Egypt will finalise negotiations with EFTA soon. He is also confident that EFTA will agree to a transitional period before their products are allowed to enter Egypt tariff and quota free. He said he hoped cooperation with EFTA members would also result in the transfer of technology from these countries to Egyptian industry.
EFTA members are major producers of machinery, chemicals and electronics.
Norway and Iceland are also noted for their fisheries and fish processing industries. Selim said Egypt seeks to increase its non-traditional exports to these countries. Egypt exported LE31 million worth of goods to EFTA in 1996, including agricultural products, perfumes, fertilisers and organic and non-organic chemicals. It imported almost LE1,200 million worth of products in the same year from EFTA member countries, including fish, paper, potato seeds and semi-processed goods. EFTA already has trade agreements with Morocco and the Palestinian Authority, and is negotiating similar arrangements with other Mediterranean countries, including Tunisia, Jordan and Lebanon.