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. It is hoped, however, that Egypt will finalize negotiations with EFTA soon. Hopefully, EFTA will agree to a transitional period before their products are allowed to enter Egypt tariff and quota free. It is expected that cooperation with EFTA members will also result in the transfer of technology from these countries to the 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. It imported almost LE1,200 million worth of products in the same year from EFTA member countries, including fish, paper, potato seed 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. In doing so, EFTA is targeting the same countries as the EU under its Euro-Mediterranean policy. Egypt is also looking to set up a free trade zone with Turkey, and a delegation from the Ministry of Trade was in Ankara recently to conduct the first round of negotiations.