Recommendation No 1/2007 of the EU-Egypt Association Council of 6 March 2007 on the implementation of the EU-Egypt Action Plan
Date: 2007-03-06
Institutions: Association Council, Egypt, European Union
Subjects: Egypt, action programme, association agreement (EU), economic integration, political cooperation

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RECOMMENDATIONS

COUNCIL

RECOMMENDATION No 1/2007 OF THE EU-EGYPT ASSOCIATION COUNCIL

of 6 March 2007

on the implementation of the EU-Egypt Action Plan

(2008/688/EC)

THE EU-EGYPT ASSOCIATION COUNCIL,

Having regard to the Euro-Mediterranean Agreement establishing
an association between the European Communities and their
Member States, of the one part, and the Arab Republic of Egypt,
of the other part (1) (the Euro-Mediterranean Agreement), and in
particular Article 76 thereof,

(5)

Whereas:

Article 76 of the Euro-Mediterranean Agreement gives the
Association Council the power to make appropriate rec-
ommendations, for the purposes of attaining the objectives
of the Euro-Mediterranean Agreement.

In terms of Article 86 of the Euro-Mediterranean Agree-
ment, the Parties shall take any general or specific mea-
sures required to fulfil their obligations under the Euro-
Mediterranean Agreement and shall see to it that the
objectives set out in the Euro-Mediterranean Agreement
are attained.

elaboration and agreement between the Parties of concrete
steps which will provide practical guidance for such
implementation.

The Action Plan serves the dual purpose of setting out con-
crete steps in bringing about the fulfilment of the Parties’
obligations set out in the Euro-Mediterranean Agreement,
and of providing a broader framework for further strength-
ening EU-Egypt relations to involve a significant measure
of economic integration and a deepening of political coop-
eration, in accordance with the overall objectives of the
Euro-Mediterranean Agreement,

HAS ADOPTED THE FOLLOWING RECOMMENDATION:

Sole Article

The Association Council recommends that the Parties implement
the EU-Egypt Action Plan set out in the Annex, insofar as such
implementation is directed towards attainment of the objectives
of the Euro-Mediterranean Agreement.

The Parties to the Euro-Mediterranean Agreement have
agreed on the text of the EU-Egypt Action Plan.

Done at Brussels, 6 March 2007.

The EU-Egypt Action Plan should support the implemen-
tation of the Euro-Mediterranean Agreement through the

For the Association Council
The President
A. ABUL GHEIT

(1)

(2)

(3)

(4)

(1) OJ L 304, 30.9.2004, p. 39.

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ANNEX

EU/EGYPT ACTION PLAN

1.

Introduction

The Arab Republic of Egypt and the European Union as key partners and, near neighbours, reaffirm their commit-
ment to deepen their political, economic and social relations on the basis of their close cooperation and strategic
partnership that has developed in the last few decades and within the framework of the Euro-Mediterranean Part-
nership and the Association Agreement embodying the objectives and principles of the Barcelona Declaration, and
complementing its multilateral process.

The evolving regional and international context of Egypt-EU relations has fostered greater scope for cooperation. On
the one hand, the enlargement of the EU on 1 May 2004 which has brought a historical shift for the Union in politi-
cal, geographic and economic terms, paved the way for the European Neighbourhood Policy that aims to deepen the
EU’s relations with its neighbouring countries to the East and South. On the other hand, Egypt continues to pursue
its dynamic foreign policy aiming to strengthen its relations with its international partners in particular the EU, its
commitment to further integration with the global economy, and its efforts for further political and economic devel-
opment and modernisation. Thus, a major opportunity has evolved for Egypt and the EU to further develop their
strategic partnership through an increasingly close and enhanced relationship. This will involve a significant degree
of economic integration and deepening of political, cultural and social cooperation, aiming to promote peace, sta-
bility, security, growth, development and prosperity in the Euro-Mediterranean region as well as modernisation of
the Egyptian economy and society.

In this regard, the Action Plan between Egypt and the EU within the European Neighbourhood Policy sets ambitious
objectives based on joint ownership, common interests, reciprocal commitments, differentiation, shared values and
implementation of national plans and reform programmes, politically, economically, socially and institutionally.

Egypt and the EU agree, through the current Action Plan, to enter into intensified political, security, economic, trade,
investment, scientific, technological and cultural relations, and shared responsibility in establishing an area of peace
and stability including the prevention and settlement of conflicts in the region and to reinvigorate regional and sub-
regional cooperation.

The level of ambition of the EU-Egypt relationship, leading to continuing trade liberalisation including in agriculture
and services, a stake in the EU’s internal market, increased financial support and enhanced political cooperation, will
depend on the degree of commitment to common values as well as the implementation of jointly agreed priorities
to mutual benefits. The pace of progress of the relationship will acknowledge fully the efforts and concrete achieve-
ments in meeting those commitments.

Recognising Egypt’s efforts and reform priorities to further develop and modernise all sectors of the Egyptian society
and economy based on the respect of her identity, specificities and national priorities, the Action Plan aims to sup-
port such efforts and priorities as reflected in the National Development Plan 2002-2007, President Mubarak’s Elec-
toral Platform for 2005 and the Government’s statement to the parliament in January 2006.

These include national priorities aiming to: improve quality of life and standard of living; increase employment
opportunities and reduce unemployment; reduce poverty and expand the coverage of social security; eradicate illit-
eracy and develop education and higher education; consolidate the role of institutions, promote the protection of
human rights and fundamental freedoms; continue maintaining and ensuring judiciary independence; expand the
participation in political life; enhance human resources and institutional capacity building; increase rates of eco-
nomic growth and investments; increase female participation in development; achieve a significant expansion in the
production and exports capacities; improve industrial potentials; promote innovation, scientific research and tech-
nological development and preserve the environment.

This Action Plan is a first step in a process covering a timeframe of three to five years. Its implementation will help
fulfil the provisions and aims of the Association Agreement (AA) and will encourage and support Egypt’s national
development, modernisation and reform objectives. It will furthermore help to devise and implement policies and
measures to promote economic growth, employment and social cohesion, to reduce poverty and protect the envi-
ronment, thereby contributing to the long term objective of sustainable development. Implementation of the Action
Plan will also help, where appropriate, further integration into European Union economic, social and technological
structures and significantly increase the possibility to advance the approximation of Egyptian legislation, norms and
standards to those of the European Union in appropriate areas, thereby enhancing prospects for trade, investment
and growth.

The Action Plan will take into account the balance between the acceleration necessary for dynamic implementation
and modernisation of the Egyptian economy and the imperatives of a sustainable socioeconomic development.

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Egypt’s unique geographical position and its historical and strategic relations with the Arab and African countries,
and its key role for peace and stability in the Middle East, as well as the EU’s increasing role on the global arena and
its enhanced contribution to peace, security and economic development in the Mediterranean and the Middle East,
enable Egypt and EU, through this Action Plan to further develop their cooperation on regional and international
issues, particularly referring to the Middle East Peace Process, disarmament and arms control, non-proliferation of
weapons of mass destruction and their delivery systems in the Middle East and elsewhere, and the fight against ter-
rorism, to enhance and to promote dialogue between cultures and civilisations and to promote South-South trade
and cooperation.

In order to contribute to the accomplishment of the ambitious objectives of this Action Plan, the EU will provide
appropriate financial support through the different available financial instruments.

The AA is the legal framework governing the bilateral relations between Egypt and the EU.

New Partnership Perspectives

The European Neighbourhood Policy and Egypt’s policy to deepen its relationship with the EU open New Partner-
ship Perspectives:

— the perspective of moving beyond the existing relationship to a significant degree of economic integration
including through a stake in the EU’s Internal Market, which aims to promote the free movements of goods,
services, capitals and persons and the possibility for Egypt to participate progressively in key aspects of EU poli-
cies and programmes,

— an upgrade in the scope and intensity of political cooperation,

— deepening trade and economic relations through the continued reduction of trade barriers on both sides,
increased access to each others’ markets including in agriculture and services and continuous upgrading of eco-
nomic legislations. This will stimulate trade and foreign direct investment and accelerate economic growth
accompanied by a sufficient strengthening of the private sector and business conditions leading to a greater eco-
nomic integration between Egypt and the European Union,

— increased financial support: EU financial assistance for Egypt will be better targeted to support the implemen-
tation of the actions identified in the present document, as well as the implementation of the Association Agree-
ment and development, modernisation and reform agenda of the Government of Egypt, in particular developing
human resources and enhancing the business climate to increase investment and employment. The European
Commission is furthermore proposing a new European Neighbourhood and Partnership Instrument (ENPI) for
this purpose, also covering cross-border and transnational cooperation between Egypt and EU Member States.
There will also be support for infrastructure investment as well as for the development of the private sector and
partnership through the European Investment Bank and FEMIP,

— prospect of gradual opening of or reinforced cooperation in relevant European Community programmes, pro-

moting, inter alia, cultural, educational, environmental, technological and scientific links,

— support for meeting EU and international norms and standards and for modernisation efforts including through
technical assistance and twinning, as well as targeted support and advise for legislative approximation through
mechanisms such as TAIEX,

— enhanced direct cooperation between administrations based on the bodies set up by the Association Agree-

ment in particular institutionalised thematic sub-committees.

In light of the fulfilment of the objectives of this Action Plan and of the overall evolution of EU–Egypt relations, con-
sideration will be given to the possibility of a new contractual relationship.

Priorities for action

This Action Plan sets out a comprehensive set of priorities in areas within the scope of the Association Agreement.
Among these priorities, all of which are important, particular attention should be given to:

— enhance political dialogue and cooperation, based on shared values, including on issues such as continued com-
mitment and efforts to achieve a just, comprehensive and lasting settlement to the Middle East conflict based
on relevant UNSC resolutions and the terms of reference of the Madrid Conference and the principle of ‘land
for peace’,

— enhance dialogue on security issues such as disarmament and arms control; non-proliferation of weapons of
mass destruction and their delivery systems, including the objective of establishing a zone free of WMD and
their delivery systems in the Middle East; strengthening the fight against terrorism; peacekeeping,

— enhance the effectiveness of institutions entrusted with strengthening democracy and the rule of law and con-

solidate the independent and effective administration of justice,

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— promote the protection of human rights in all its aspects; improve the dialogue between cultures and religions,
cooperate in the fight against intolerance, discrimination, racism and xenophobia and in the promotion of
respect for religions and cultures. Such priorities would be pursued based on the principles of respect, under-
standing and equality,

— increase economic integration with the EU, particularly by taking steps to the gradual liberalisation of trade in
services and on the right of establishment and to liberalise trade in agriculture, processed agricultural products
and fisheries, and enhance Egypt’s export potential to the EU market by upgrading the quality of Egypt’s agri-
cultural production through improving sanitary and phytosanitary standards and rural development,

— improve macroeconomic governance, reforme the financial sector, strengthen the role of the private sector,
enhance the business climate, in particular for SMEs, eliminate institutional, regulatory and administrative
obstacles with a view to attract increasing national and foreign investments and to create job opportunities, con-
sequently alleviating poverty,

— boost industrial development and enterprises capabilities and competitiveness through improved skills, better
access to finance, promotion of new technologies, encouraging entrepreneurship and innovation, and devel-
opment of efficient business support services and increase labour-force productivity,

— deepen and enhance the existing economic dialogue and identify areas suitable for gradual regulatory upgrad-
ing and approximation with EU technical legislation, standards and conformity assessment procedures,

— proceed in reforming the tax system, improving public finance management, and upgrading public institutions,

— promote south-south trade, through encouraging FDI participation in regional projects such as: infrastructure,

trade facilitation, energy and transport,

— strengthen cooperation on poverty reduction and social development, in particular in the areas of combating
illiteracy, education reforms, upgrading the vocational training, training systems, quality assurance, as well as
better socio-economic inclusion and social insurance and developing the health sector reform, with a particular
focus on increasing the level of health security, health information and knowledge. Reforms of the education
and higher education systems aim among other issues at enhancing overall quality and relevance to the labour
market,

— promote cooperation in the area of science and technology, develop national capabilities of technical, scientific
and technological research and innovation, the development of R & D and transfer of technology, promote links
in scientific research, strengthen efforts to implement the EU-Egypt Agreement on Scientific and Technological
cooperation, strengthen links between higher research institutes and education institutions,

— promote cooperation in the area of information technology and communications through promoting infor-
mation society and its sustainability, including the use of ICT in development, the development of the ICT indus-
try, innovation, in addition to the use of new technologies and electronics means of communications by
businesses, government and citizens, as well as strengthening scientific and business links,

— strengthen cooperation on migration-related issues, including the effective joint management of migration
flows, legal and illegal migration, readmission, facilitation of the legal movement of individuals, equal treat-
ment and social integration for legal migrants, and asylum issues,

— promote cooperation on fight against organised crime, including trafficking in human beings, fight against

drugs, fight against money laundering, and police and judicial cooperation,

— promote cooperation in the transport field, in particular on developing infrastructure policies, implementing
the sector reform programme aiming at separating regulatory, management and operation tasks; promoting the
involvement of the private sector in transport projects and services; applying air, maritime, and road safety mea-
sures, and developing a Civil Global Navigation Satellite System (GALILEO),

— enhance cooperation in the energy sector, in particular through energy policy exchanges, the gradual conver-
gence towards the principles of the EU internal electricity and gas markets, the development of energy net-
works including facilitation of natural gas transportation between Egypt and the EU via the Arab gas pipeline,
regional cooperation, and enhancing energy efficiency and the use of renewable energy as well as cooperation
in the oil and gas industry,

— strengthen the environmental dimension of public policy and EU-Egypt cooperation: promotion of sustainable
development policies and actions, including on climate change, desertification and air, soil and water pollution,

— strengthen links and cooperation in ‘people-to-people’ contacts in youth and sports, culture and audiovisual

areas and civil society.

Cooperation and actions under this Plan shall be consistent with national laws and legislations.

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Progress in meeting these priorities will be jointly evaluated in sub-committees established by the Association Agree-
ment. On this basis, the EU and Egypt will review the content of the Action Plan and decide on its adaptation and
renewal. After three years, Egypt and the EU will consider future prospect of the development of bilateral relations,
including the possibility of new contractual links.

2.

Actions

2.1.

Enhanced political dialogue, economic and social development and reform

2.1.1. Enhanced political dialogue and reform

(a) D e m o c r a c y a n d r u l e o f

l a w

Enhance the effectiveness of institutions entrusted with strengthening democracy and the rule of law:

— strengthen participation in political life, including the promotion of public awareness and participation in

elections,

— exchange experience in the field of elections and jointly develop cooperation in areas of shared interest

including through providing assistance on registering electors and capacity building,

— foster the role of civil society and enhance its capacity to contribute more effectively to the democratic
and political process as well as to the economic and social progress in accordance with national legislation,

— pursue and support the efforts Government of Egypt towards decentralisation and the reform of local

administration,

— enhance the ongoing political dialogue between the Egyptian and the European Parliaments,

— establish a formal and regular dialogue on Human Rights and Democracy in the framework of the Asso-

ciation Agreement in the context of the relevant sub-committee,

— pursue and support the Government of Egypt in the further modernisation and development of public ser-

vices rendered to citizens, promoting accountability, transparency and contestability.

Consolidate the independent and effective administration of justice and improve prison conditions:

— in the context of political and democratic reform, continue the ongoing process of strengthening, main-

taining and ensuring the independence of the judiciary,

— further develop measures to increase the capacity and efficiency of the justice administration (including
prison) and access to justice, including capacity building of bodies entrusted with the implementation of
the law,

— support Egyptian government policies and programmes aiming at improving places of detention and

prison conditions, especially the placement of minors.

(b) H u m a n r i g h t s a n d f u n d a m e n t a l

f r e e d o m s

— Support Egyptian government efforts to protect human rights and fundamental freedoms in line with
international conventions to which Egypt is party and to elaborate a human rights strategy in partnership
with the NCHR and with appropriate consultation of other relevant organisations,

— strengthen the culture of respect for human rights and fundamental freedoms in Egypt and in the EU,

— support Egyptian efforts to strengthen the capacity and effectiveness of competent Egyptian public insti-

tutions and councils,

— continue the review of respective national legislations to further align their laws and practices with inter-
national human rights instruments to which they are party and taking into account relevant UN
recommendations,

— examine the possibility of accession to the optional protocols to international human rights conventions

to which Egypt is a party,

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— continue and enhance cooperation with UN and African human rights treaty mechanisms, as well as with

the newly established UN Human Rights Council,

— examine the possibility for the EU Member States to sign the UN Convention on the Rights of Migrant

Workers and Members of their Families,

— promote dialogue on policies for physically and mentally disabled,

— promote a dialogue on Rome Statute of International Criminal Court,

— examine the relevant UN recommendations and the recommendations of the Egyptian National Council
for Human Rights pertaining to security, detention conditions and prison staff with a view to their prac-
tical implementation in order to protect the human rights and integrity of detainees and to fight impunity,

— initiate a review of laws and regulations dealing with pre-trial and administrative detention systems taking
into consideration the relevant UN recommendations, particularly in order to ensure the prompt access of
detainees to legal counsel and family,

— ensure the possibility of legal recourse against death sentences for all types of courts, in accordance with
the UN Safeguards guaranteeing protection of the rights of those facing the death penalty and taking into
account Article 4 and Article 6 of the International Covenant on Civil and Political Rights,

— engage in a dialogue on the death penalty,

— cooperate to promote the achievement of the right to development in bilateral and multilateral fora.

Rights of women and children

— Promote the enhancement of women’s participation in political, economic and social life as well as their
role in the political decision-making process by supporting the formulation and implementation of Egypt’s
government policies and programmes,

— support Egypt’s efforts to promote gender equality and reinforce the fight against discrimination and
gender-based violence, including strengthening the activities of the National Council for Women includ-
ing its periodic review of the relevant existing legislation and recommendations for new legislation,

— consolidate the rights of the child through the application of the relevant UN Convention on the Rights of
the Child and consider revising existing legislation taking into account the recommendations of the rel-
evant UN Committee,

— support the efforts of the Government of Egypt to eradicate the practice of female genital mutilation

including through appropriate legislative actions and the raising of public awareness.

Freedom of association and of expression and pluralism of the media

— Implement measures that promote the right of assembly and association in accordance with the Interna-

tional Covenant on Civil and Political Rights,

— assert freedom of expression and independence of the media by facilitating the work of independent infor-

mation providers including through appropriate legislative action,

— examine the possibility for developing specific legislation on the protection of private data,

— pursue the liberalisation process in the information sector and further increase access to information for

all citizens including by reviewing the legal and administrative frameworks,

— establish joint cooperation activities on media issues including capacity building.

Fight against discrimination, intolerance, racism and xenophobia

— Cooperate to combat all forms of discrimination, intolerance, racism and xenophobia and in particular
hate or defamatory discourse based on religion, beliefs, race or origin, inter alia, through exchange of best
practices and legislative action, as required,

— strengthen the role of media in combating xenophobia and discrimination on the grounds of religious

belief or culture and assume its responsibilities in this regard,

— promote efforts, in Egypt and the EU, towards increasing tolerance, understanding and respect of all reli-

gions and cultures.

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Fundamental social rights and core labour standards

— Develop a dialogue on fundamental social rights and core labour standards,

— support measures that enhance the development and independence of trade unions and their role in eco-

nomic and social life,

— enhance the effective implementation of core labour standards as defined in the 1998 ILO Declaration on

Fundamental Principles and Rights at Work and related ILO Conventions.

(c) C o o p e r a t i o n o n f o r e i g n a n d s e c u r i t y p o l i c y

Strengthen the political dialogue and cooperation on foreign and security policy:

— enhanced political dialogue and cooperation in jointly agreed areas of Common Foreign and Security
Policy (CFSP) and European Security and Defence Policy (ESDP) through the current frameworks or
through new mutually agreed frameworks,

— engage a dialogue through their respective missions in UN/multilateral institutions on issues of common
interest, including peacekeeping operations conducted within the framework of the UNSC resolutions, and
cooperate where appropriate,

— cooperation on promoting disarmament efforts, in particular, those aimed at enhancing regional stability
and on further coordinating their efforts in international fora to this end, in accordance with respective
membership of relevant international instruments, including working together in the fight against the illicit
trade of small arms and light weapons,

— dialogue and cooperation on regional issues (advancement of the Middle East Peace Process, the stability
and territorial integrity of Iraq and Sudan, other regional initiatives aimed at economic and social devel-
opment particularly in Africa, NEPAD, Nile Basin Initiative),

— cooperation aiming at strengthening the application of international law and of principles of the UN Char-
ter and cooperation for the promotion, dissemination and ensuring the respect of international humani-
tarian law at the regional and international levels,

— cooperation in conflict prevention and crisis management, including cooperating with the Cairo Centre
for Training on Conflict Prevention and Peacekeeping in Africa and within the framework of the Bridge
Project for the creation of Euro-Mediterranean system of mitigation, prevention and management of natu-
ral and man-made disasters,

— develop an Egyptian national strategy on disaster management and reduction,

— develop trilateral cooperation in areas of mutual interest taking into consideration their respective devel-

opment cooperation mechanisms.

(d) C o m b a t i n g t e r r o r i s m

— Ensure respect for human rights in the fight against terrorism in accordance with international law,

— work on elaborating appropriate legislation to address the phenomenon of terrorism serving as a legal sub-
stitute to the application of the current state of emergency taking into account Egyptian national security
considerations,

— strengthen EU-Egypt cooperation on preventing and combating terrorism, including implementing the
Code of Conduct on Countering Terrorism agreed at the Barcelona Summit in November 2005 as well as
the initiatives identified in this Action Plan which will be discussed in the relevant sub-committees,

— cooperate to reinforce the role of the UN in the fight against terrorism through the full implementation of
the UNSC resolution 1373 (2001) and through the ratification and implementation of the 13 UN con-
ventions and protocols on terrorism including the recently agreed Convention for the Suppression of Acts
of Nuclear Terrorism,

— pursue efforts to arrive at a Comprehensive UN Convention on International Terrorism and promote, fol-
lowing agreement on the Convention, President Mubarak’s initiative to hold an international conference
on terrorism,

— cooperate to ensure the implementation of the standards laid down in the FATF’s recommendations on

terrorist financing,

— exchange information on terrorist groups and their support networks in accordance with international and

national law,

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— exchange views on means and methods used to counter terrorism, including in technical fields and train-

ing, and by exchange of experiences in respect of terrorism prevention,

— foster international cooperation in the fight against and the prevention of terrorism by addressing all its

causes.

(e) N o n - p r o l i f e r a t i o n o f w e a p o n s o f m a s s d e s t r u c t i o n a n d t h e i r m e a n s o f d e l i v e r y

— Cooperate on non-proliferation of weapons of mass destruction as well as their means of delivery includ-
ing through implementing UNSC Resolution 1540/04, ensuring full compliance with and national imple-
mentation of existing international obligations and consider promoting the accession to and
implementation of other relevant international instruments,

— further develop cooperation in the prevention of and fight against the illicit trafficking of WMD-related

materials,

— cooperate on developing effective systems of national export control, controlling export and transit of
WMD-related materials, including WMD end-use control on dual use of technologies, and effective sanc-
tions for breaches of these export controls,

— improve overall coordination in the non-proliferation area and examine specific threats related to WMD

which undermine regional security and the scope of cooperation in addressing them,

— promote the relevant provisions on the political and security partnership of the Barcelona Declaration with
the objective to pursue a mutually and effectively verifiable Middle East zone free of weapons of mass
destruction and their delivery systems in consonance both with President Mubarak’s initiative in this regard
and the principles of the EU Strategy against the proliferation of WMD.

2.1.2. Economic development and reform

(a) M o n e t a r y , e x c h a n g e r a t e a n d f i s c a l p o l i c i e s

Consolidate progress made with a view to improving macroeconomic stability and to promoting growth and
employment.

— Continue to pursue macroeconomic stability by reducing the inflation rate and gradually achieving price

stability,

— complete the preparations for the new monetary policy strategy based on inflation targeting and repre-
sentative price indicators and further strengthen central bank independence. Continue efforts to achieve
sustainable public finances by reducing the central government deficit and the consolidated public deficit.
Examine the scope for an increase of public investment in key budget areas — such as education and key
infrastructure projects — through further rationalisation of current government spending,

— continue efforts for further progress in transparency and accountability of government finances, by pub-
lishing complete and timely information on the budget, fiscal outcomes and audit reports. Improve fur-
ther the public finance management system, in particular by ensuring the comprehensiveness of the
budget, by introducing a medium-term budget planning and a single treasury account.

(b)

F u n c t i o n i n g o f m a r k e t e c o n o m y

— Increase the capacity to create sustainable growth and employment by further improving the conditions
of private sector development, enhancing the investment climate, and accelerating the privatisation pro-
gramme. These measures should be accompanied by improving education and training including through
EU support,

— work to reduce gradually economic distortions as well as to better target subsidies to eligible groups of the

population and upgrade the social safety net,

— accelerate the reform of the financial sector, the restructuring and the privatisation of state banks and the

introduction of strong financial market supervision,

— improve the efficiency of public services and accelerate and streamline the procedures which are neces-

sary to set up a new company,

— reduce and accelerate judicial procedures which are necessary to enforce contracts,

— develop cooperation in promoting and developing dispute resolution and exchange of expertise in the arbi-

tration of commercial disputes.

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(c)

S u s t a i n a b l e d e v e l o p m e n t

Promotion of sustainable development

— Take steps to prepare a comprehensive national sustainable development strategy and to complete admin-
istrative structures and procedures to ensure strategic planning of sustainable development at the central
level, as coordinated by the Ministry of Environment including through EU support where appropriate,

— take steps to strengthen and develop the institutional setup for the integration of sustainable development
considerations into other sectoral policies and plans, such as industry, energy, transport, regional devel-
opment and agriculture,

— share experiences between the Commission and Egypt about sustainable development strategies.

(d) A g r i c u l t u r e a n d f i s h e r i e s

Pursue the modernisation and restructuring of agriculture and fisheries

Agriculture

— Cooperate in the implementation of the reforms in sectoral agricultural policies in line with the provi-

sions of Article 50 of the Association Agreement,

— identify and adopt accompanying measures providing for the structural, institutional, legal and adminis-
trative support necessary in order to ease access to export markets, inter alia, by approximation of tech-
nical legislation; and in particular increase cooperation in the field of international marketing standards
for all agricultural and processed agricultural products,

— identify and adopt measures in the sector of rural development, and at the level of the development of
quality production (local products, food safety, organic products, geographical indications, etc, within the
scope of the national rules), which would encourage the diversification of activity and the creation of new
remunerative and sustainable trade flows and enhance the efficiency of water use,

— identify and develop measures to create a framework to encourage private investment,

— exchange expertise to strengthen the administrative capacity of the Land cadastre,

— strengthen the role of agricultural research centres in improving the productivity, food safety and quality
of agricultural products, and promote cooperation with European Research Centres, particularly in the
areas of genetic engineering and biotechnology,

— promote the use of modern technology in the agricultural sector and in different production phases,

— promote the distribution and exchange of information on the agricultural policies and contribute to the

transfer of expertise and experiences.

Fisheries

— Reinforce the cooperation in order to implement the actions identified in the Declaration of the Ministe-
rial Conference for the Sustainable Development of Fishery in the Mediterranean (Venice, 25-26 Novem-
ber 2003) in the framework of the relevant international instruments,

— take steps to promote further the creation of fishermen associations with a view of implementing respon-
sible fisheries and improve their capacity to be represented into international and multilateral
organisations,

— increase the scientific and technical capacity to monitoring fisheries and evaluate the state of the exploited

marine resources and marine environment,

— improve scientific cooperation with the Regional Fisheries Body and in particular the GFCM with a view
to strengthening a concerted and regional approach suited to the needs of sustainable fisheries and based
on dialogue and coordination,

— undertake necessary marketing infrastructure upgrading to cope with market demands and standards.

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(e) M i n e r a l r e s o u r c e s

— Encourage cooperation between EU Member States and Egypt to develop the mineral resources sector
including through the establishment of a database on mineral resources, promoting relevant investment
in Egypt and building human resources capacity.

2.1.3. Social development

(a)

S o c i a l s i t u a t i o n , e m p l o y m e n t a n d p o v e r t y r e d u c t i o n

Enhance Social development in particular through dialogue and cooperation

— Strengthen measures for poverty alleviation through the Poverty Reduction Strategy and the anti-poverty

action plan,

— engage in a dialogue on employment and social issues including the social consequences of economic
reforms with a view to develop a joint analysis of the situation and identify possible measures in this field,

— develop and implement market driven strategies for addressing the problem of unemployment; modern-

ise the Public Employment Services,

— support the implementation of the new labour code including through institutional capacity building. Con-

tinue the adoption of implementing regulations and build enforcement capacity,

— strengthen the social dialogue at all levels (tripartite and bipartite),

— ensure and develop the institutional capacity building of the social partners to take the suitable measures

according to the International Labour conventions,

— implement the relevant International Labour Conventions to which both Egypt and the EU Member States

are parties,

— strengthen the efficiency, targeting and coverage of social expenditures with a particular attention to the

enlargement of the base of the targeted groups and to the improvement of social statistics,

— engage in a dialogue on programmes and initiatives aimed at fostering social inclusion on the basis of the
principle of non discrimination, with particular attention to the integration of disadvantaged, the disabled
groups, the marginalised groups and people with special needs,

— ensure equal opportunities for women and men, including in the field of employment. Further enhance

the role of women in economic and social progress,

— enhance protection of rights of the children at risk, particularly working children, street children and chil-

dren with disabilities, and intensify efforts to progressively eliminate child labour,

— engage in a dialogue with a view to promote equal treatment of Egyptian and Community nationals who

are legally residing and working in the territory of the Community or Egypt,

— promote exchanges of experiences, dialogue and cooperation on matters of social security, notably on
issues such as the reform of pension systems, the introduction of new instruments and the extension of
the coverage of social protection and the improvement and enforcement of social security institutions.

Strengthening socio-economic cohesion of Egyptians regions

— Strengthen the regional development management structures. Implement the decentralisation of pro-

gramme of services delivery and management at governorates level,

— support the reduction of regional disparities in social and economic development, in particular in rural

areas,

— support policies that aim at ensuring access to basic health, education and social services for all.

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(b)

E d u c a t i o n a n d t r a i n i n g

Support and enhance cooperation in reforming and upgrading the education and training systems and work
within the framework of Egyptian plans towards convergence with EU and international standards and practice.

— Combat illiteracy and achieve education for all, especially for women and girls, by continuing the reform

of the education systems, and pre-school education aiming at early childhood development,

— continue and enhance a policy dialogue between EU and Egyptian authorities in the field of education and

training,

— continue to reform primary and secondary education to improve quality, especially through continuing
decentralisation and community involvement and human resources development for teachers and pro-
fessors, as well as technical vocational education and training (TVET) to make it more responsive to mar-
ket needs in the context of the Egyptian national educational standards,

— reform higher education in line with the principles of Bologna process to improve internal and external
efficiency. Foster the development of human resources and human capital, and promote the reform of
higher education through the Tempus programme; ensure the integration of the social dimension in edu-
cational planning and programmes,

— promote the use of ICT in education,

— enhance the quality and the capacity of institutions and organisations involved in the quality assurance of
education and training provision, in particular Egyptian Agency for Quality Assurance and Accreditation,

— take steps to increase the involvement of civil society stakeholders and social partners in higher and adult

education and TVET reform,

— encourage participation in the Tempus programme,

— encourage participation in the Erasmus Mundus programme,

— encourage the participation of Egyptian students in the forthcoming EC scholarship programme and in

similar schemes of EU Member States.

(c)

P u b l i c h e a l t h

Support and cooperate in the development of health sector reform

— Continue the development of the health sector through:

— implement re-organisation and decentralisation of the health sector,

— improve accessibility and affordability including in rural areas and with a focus on women/children

including those with disabilities,

— elaborate a system for Social Health Insurance covering the whole population,

— ensure the efficiency of institutions including laboratories,

— enhance human resources capacity,

— enhance health security and epidemiological safety,

— strengthen family health models, including maternal mortality and reproductive health issues.

Increase the level of health security, health information and knowledge

— Exchange of information and know-how on health indicators and data collection,

— invite Egypt as observer in the meetings of the Network of Competent Authorities.

Communicable Disease Surveillance and Health Security (Epidemiological Surveillance and Control)

— Participation in Communicable Disease Networks and dedicated surveillance networks,

— enhance response to infectious diseases, such as HIV/AIDS and hepatitis C.

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2.2.

Trade related issues, market and regulatory reform

2.2.1. Movement of goods

(a) T r a d e r e l a t i o n s

— Identify areas with export potential to the EU and further enhance Egypt’s export capability by increasing

quality of Egyptian products and their competitiveness on international markets,

— reduce substantially non-tariff barriers of a regulatory and bureaucratic nature to trade and investments,

— strengthen the capacity building in the Egyptian administration on international trade relations,

— enhance Egypt’s participation in and capacity to benefit from regional and sub regional trade arrange-

ments including conclusion and implementation of Free Trade Agreements,

— establish rules of procedure to ensure the effective implementation of dispute settlement provisions under
the Association Agreement on economic/trade matters based on the principles of the dispute settlement
understanding of the WTO,

— continue liberalisation of trade in agricultural, processed agricultural and fishery products as developed in
the agricultural roadmap taking into account the conclusions of the Luxembourg Ministerial Meeting of
May 2005.

(b) C u s t o m s

— Further modernisation of the customs administration and simplification of customs legislation and pro-
cedures, including computerisation; rolling out of Egyptians pilot projects on model tax and customs cen-
tres and ports’ automated one-stop-shop procedures,

— develop an Integrated Border Management Strategy by strengthening cooperation between customs and
other agencies working at the border and by implementing a single-window approach at all entry points,

— adopt and implement the new protocol on Pan-Euro-Mediterranean cumulation of origin and exchange
experience and information on the smooth implementation of the new protocol and consult on the future
development of rules of origin, including systems of cumulation,

— strengthen the capacity building of the customs administration by providing further training to customs

officials, including in the areas of origin and custom valuation,

— increase transparency of customs rules and tariffs and promote further public access to customs-related

information and complaint procedures,

— exchange experience and know-how with a view to strengthening measures against pirated or counterfeit

goods through the reinforcement of customs controls,

— strengthen administrative cooperation with the EU to combat irregularities and fraud in customs and

related matters,

— develop EU-Egypt cooperation with regard to risk based customs control ensuring safety and security of
goods imported, exported or in transit, and define standards for certification of operators (exporters
and transporters) intervening in commercial exchanges,

— examine the possibility of further convergence of customs related legislation,

— take steps to adopt and implement a Customs Ethics Policy.

(c)

S t a n d a r d s a n d c o n f o r m i t y a s s e s s m e n t

( E U h a r m o n i s e d a r e a s )

— Continuation of work on the implementation of the Palermo Action Plan for the Free Movement of Indus-
trial Products approved by the July 2003 Euro-Mediterranean Conference of Trade Ministers. Take the nec-
essary steps, with the support of continuing assistance, to complete and upgrade the quality infrastructure
and to start negotiating an Agreement on Conformity Assessment and Acceptance of Industrial Products
(ACAA),

— adapt the Egyptian institutions in charge of implementing product legislation and train the various

stakeholders,

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— harmonise the remaining national standards with European and international standards for industrial

products,

— cooperation in the field of legislation on liability for defective products and general product safety, includ-

ing market surveillance,

— explore the scope for cooperation between EU and Egyptian accreditation bodies.

(d) R e s t r i c t i o n s a n d s t r e a m l i n e d a d m i n i s t r a t i o n ( E U n o n - h a r m o n i s e d a r e a s )

— Analyse legislation and administrative procedures with a view to identifying and progressively removing

discrimination and restrictions against imported products,

— strengthen and upgrade the performance of the central contact point to facilitate information flows and

cooperation with economic operators.

(e)

S a n i t a r y a n d p h y t o s a n i t a r y i s s u e s

Increase food safety for Egyptian and European consumers. Reforms and modernisation of the sanitary and phy-
tosanitary sectors.

— Pursue efforts towards full implementation of the WTO Agreement on the application of Sanitary and Phy-
tosanitary measures and active participation in relevant international bodies such as OIE, IPPC, Codex
Alimentarius,

— enhance cooperation between Egypt and the EU in the field of sanitary and phytosanitary issues and
explore possible areas of cooperation (e.g. legislation, implementing practices), while taking into account
the different conditions prevailing on both sides,

— develop an Egyptian policy on food safety and an action plan,

— cooperate on modalities to develop animal and plant identification and traceability systems in Egypt.

2.2.2. Right of establishment, Company law and services

(a)

E s t a b l i s h m e n t a n d c o m p a n y l a w

— Cooperate to facilitate the establishment of companies and foreign investment and progressively remove

obstacles to establishment,

— improve the environment for business operation, e.g. adopt and implement effectively bankruptcy

legislation,

— work towards the adoption of key principles of international accounting standards for listed companies

and consolidated accounts,

— establish a qualified and independent audit profession and work towards the adoption of international

standards on auditing for all statutory audits,

— implement a code of corporate governance.

(b)

S e r v i c e s

— Facilitate the supply of services according to the parties’ commitments under GATS including by the devel-

opment of the necessary administrative structures and the removal of identified barriers,

— prepare for negotiating progressive liberalisation of trade in services and right of establishment taking into
account the Euromed Framework Protocol adopted in Istanbul in 2004 and the Marrakech declaration of
March 2006,

— develop a strategy to enhance the competitiveness of the Egyptian services sector including regulatory sim-

plification and administrative facilitation,

— establish a list of EU Member States contact points on services to provide information to the Egyptian ser-

vices suppliers/providers who seek to access the European market.

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Financial services

— Full implementation of the Financial Sector Reform Program (FSRP),

— enhance the prudential regulatory framework for financial services,

— develop the capacity building of independent authorities to ensure effective supervision including through

training.

2.2.3. Regional cooperation

— Further develop existing regional cooperation arrangements and support the development of new initiatives and
policies promoting regional integration and cooperation, based on the priorities of the relevant regional
partners,

— develop south-south trade including support for the implementation of the Agadir Agreement, and promote

trade and investment among the regional partners.

2.2.4. Other key areas

(a) T a x a t i o n

— Support tax strategy for the modernisation and simplification of the tax administration. Define the nec-
essary administrative structures and procedures, including a fiscal control strategy, audit and investigation
methods, cooperation with the tax payers and tax compliance. Identify all objectives in terms of financial,
human, logistic and IT resources,

— support ongoing efforts to complete the network of bilateral agreements between Egypt and EU Member
States on avoidance of double taxation including the improvement of transparency and the exchange of
information in accordance with international standards,

— support the Egyptian efforts to modernise and improve the general sales tax system currently in force with
a view to moving, in the medium term, towards a standard VAT system. Initiate a dialogue on interna-
tional and EU tax standard including the principles related to transparency and exchange of information
for tax purposes and to OECD principles on harmful tax practices.

(b) C o m p e t i t i o n p o l i c y a n d S t a t e A i d

— Adoption of implementing rules on competition (Association Agreement, Article 34.2), for which the

deadline is five years after the entry into force of the Association Agreement (1/6/2009).

Antitrust

— Enforce the competition law in line with that of the EU and establish an independent and adequately-

resourced competition authority.

State aids

— Agree on a definition of state aid and develop a national mechanism for collecting information on state
aid in order to ensure implementation of Article 34.3 of the Association Agreement by exchanging with
the EU an annual report on the total amount and distribution of State aid (1),

— exchange experience and know-how at the appropriate time on the conditions to be met with reference to

state aid control regimes in order to prepare Egypt’s participation in the internal market.

(c)

I n t e l l e c t u a l p r o p e r t y r i g h t s

— Accede to the conventions within the timeframe stipulated in the Association Agreement and apply the
standards of protection stated in such conventions or other conventions and agreements to which Egypt
is party. Strengthen enforcements of IPR legislation within TRIPS requirements,

— reinforce the fight against piracy and counterfeiting and promote cooperation between the authorities
involved, police, judiciary and customs. Significantly reduce circulation and trafficking of counterfeit/
pirated goods,

(1) For any sectors which should participate in the internal market, there would have to be in force a State aids control regime and legislation
meeting the requirements of the EU acquis, including a system of prohibition and ex-ante control of State aids which distort trade between
the EU and Egypt.

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— increase awareness at both public and private level and encourage the establishment and effective func-

tioning of associations of rights holders and consumers,

— explore the possibility of enhanced interaction with other Euromed partners,

— initiate a policy dialogue covering all aspects of IPR, including further legal/administrative improvements

and possible membership of additional relevant conventions, etc.

(d)

S t a t i s t i c s

Adoption of statistical methods compatible with European and international standards in relevant statistical
areas.

— elaborate a short and middle term development strategy for harmonisation with European and interna-

tional standards in the relevant statistical areas covered by this Action Plan,

— ensure that legislation on official statistics is based on the fundamental UN principles,

— first steps to develop economic, environmental and social statistics in conformity with European and inter-

national standards,

— adoption of an Egyptian National Statistical Master Plan.

(e)

P u b l i c p r o c u r e m e n t

— Initiate a process of gradual approximation with, and implementation of key international principles,
transparency, competition and access to legal recourse. In order to help enhance access to each other’s
public procurement markets, and to ensure effective communication, task the relevant sub-committee to
identify obstacles hindering public procurement access, inter alia, through dialogue with relevant opera-
tors and authorities,

— improve the functioning of the current system through increased transparency, information and training,

— improve information and awareness among contracting authorities and the business community about

public procurement procedures,

— strengthen the administrative capacity of the Central Complaints Resolution Office at the Ministry of

Finance.

(f)

E n t e r p r i s e p o l i c y

— Support Small and Medium enterprises (SMEs) (encouraging investment climate, enhancing the activity of
the Social Fund for Development, contributing to improve access to finance for SMEs, promoting youth
and women entrepreneurship, enhancing productivity and competitiveness including through a better
access to market),

— adapt the priorities of the Industrial Modernisation Programme (IMP) to the Objectives of the Egyptian

strategy for Industrial Modernisation and Competitiveness and of the Euro-Med Charter for Enterprise,

— modernise and improve the competitiveness of Egyptian industry including through the implementation

of the Egyptian strategy for Industrial modernisation and competitiveness,

— improve the business environment including through the implementation of the Euro-Mediterranean Char-

ter for Enterprise,

— work towards implementation of the October 2004 Euro-Mediterranean Work Programme on Industrial

Cooperation,

— create a dialogue between business, administration and academic institutions for the identification of pri-

ority actions for business improvement and the exchange of best practice.

(g)

P u b l i c I n t e r n a l F i n a n c i a l C o n t r o l a n d r e l a t e d i s s u e s

— Exchange of information on the concepts and legislative framework for public internal financial control

in Egypt and EU Member States, taking into account EU best practices,

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— cooperate in view of establishing, and implementing a policy for upgrading the Public Internal Financial
Control system on the basis of a gap analysis of the current internal control systems as compared to the
relevant internationally agreed standards and best EU practice,

— exchange of expertise and cooperation in order to upgrade the institutional capacity of the public internal
control system to internationally agreed standards and methodologies as well as EU best practices in the
area of internal control and internal audit, covering all income, expenditure, assets and liabilities, of the
general Government and budget entities and economic authorities,

— ensure effective cooperation with the relevant EU Institutions and bodies in the case of on-the-spot checks,

audits and investigations related to the management and control of EU funds.

2.3.

Transport, energy and environment

(a) T r a n s p o r t

Cooperation in the transport sector (maritime, aviation, road, rail and inland waterway)

Implement a national transport strategy, including transport infrastructure development and transport sector
reforming.

— Support the development and implementation of the national sustainable transport policy for the devel-
opment of all modes of transport and related infrastructure, focusing in particular on strengthening safety
and security; integration of environmental considerations in transport; as well as intermodality,

— develop procedures to identify and help implement priority infrastructure projects. Such procedures
should address financing strategies focusing on activating and promoting the participation of the private
sector in transport projects; capacity constraints;
lack of inter-modal equipment and missing link
infrastructure,

— continue the development of a comprehensive regulatory framework,

— continue with the reform of the transport sector including institutional building, organisational restruc-
turing; capacity building; Strengthen and if necessary establish strategic planning units and develop better
asset management procedures for different sectors,

— promote the use of intelligent transport systems and information technology in managing and operating

all modes of transport as well as supporting intermodality,

— take steps to negotiate a cooperation agreement between EU and Egypt on the development of a Civil Glo-

bal Navigation Satellite System (Galileo).

Regional element

— Participate in the regional transport planning activities, including the Euro-Med cooperation aimed at pro-
posing an action plan for transport in the Mediterranean region, as well as a basic regional infrastructure
network and interconnection of this network with the trans-European transport network,

— continue participation in the development of Global Navigation Satellite System (Galileo) in the Mediter-
ranean region, in particular by giving an active role to the Galileo Euromed Cooperation Office based in
Cairo; take part in particular in the new regional cooperation activities on satellite navigation systems.

Implement selected measures and reforms in the road and rail transport sectors

— Introduce a transparent regulatory process for the issuing of freight and passenger transport licences and

for granting access to the profession,

— implement the relevant international conventions, notably on dangerous goods transport,

— develop an integrated action plan on road safety including the technical control/road worthiness testing

of vehicles,

— develop and implement the railway sector restructuring policy and reorganise the administration to sepa-

rate regulatory responsibilities from operational interests,

— improve efficiency of rail freight transport services which might eventually lead the Egyptian rail system

to be utilised as a gateway to Africa,

— develop intermodality and multi-modal services, address issues of interoperability.

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Regional element

— Explore the benefits of regional cooperation in order to improve the safety, speed and effectiveness

(interoperability) of rail services.

Implement selected measures and reforms in the maritime and inland water transport sectors

— Develop and implement the existing comprehensive national maritime policy aiming at promoting and
developing the maritime industry increasing its competitiveness and promoting the participation of pri-
vate sector in all aspects of maritime industry, including ports and port activities; strengthen maritime
safety and develop the fleet; continue to implement the relevant international conventions; and when pos-
sible approximate standards,

— continue reform of the ports sector with a view to introduction of an independent port authority respon-
sible for regulation and control and adoption of the ‘Land Lord’ management system. Ensure, in the con-
text of the up-coming negotiations on liberalisation of trade in services, on the basis of the Marrakech
ministerial declaration in March 2006, the elimination of discriminatory treatment to Community vessels
in Egyptian Ports,

— assess and examine the possibility of extending VTMIS to the Mediterranean,

— effectively enforce maritime safety standards and ensure effective enforcement in the areas of Port State
Control and Flag State implementation. Step up cooperation on maritime security with a view to com-
bating terrorism, in the context of implementing the SOLAS/ISPS code,

— speed up the phasing-out of single-hull oil tankers and apply the changes recently agreed in the IMO Mar-
pol Convention taking into consideration the relevant recommendation of the High Level Group on the
extension of the trans-European transport network to neighbouring countries and regions,

— establish an infrastructure and services development policies and strategies to activate the inland water
transport role in freight transport as potential cheaper and environmentally friendlier mode of transport
that could provide access to other African countries.

Regional element

— Maritime safety and security: take part in improving the Euromed framework for cooperation within the

IMO; take part in regional cooperation on maritime safety (SAFEMED),

— take part in regional cooperation on maritime policy, ports and short-sea shipping.

Implement selected measures and reforms in the aviation sector

— Implement the existing national aviation policy including as regards the development of the airports and
further reinforce administrative capacity (including the foreseen separation of regulatory and management
functions of the ECAA),

— explore the possibility of extending to all airports open competition in ground-handling services,

— assess the possibility of extending to all airports the liberalisation of charter flights and examine the spe-

cific situation of Cairo airport,

— negotiate a horizontal aviation agreement with the EC. Exchange of information on the possibility of devel-

oping a Euro-Mediterranean Aviation agreement,

— enhance administrative and technical capacity to fully implement jointly agreed JAA standards. Explore
possibilities to involve Egypt in the work of EASA and for involvement in the Single European Sky,

— cooperate on aviation security matters (common rules to combat international terrorism) in accordance

with international conventions to which Egypt and the EU Member States are party,

— explore the possibilities of cooperation in establishing a Safety Management System Programmer.

Regional element

— Take part in regional cooperation on safety, security and air traffic management.

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(b)

E n e r g y

Cooperate in the development of an overall long term energy strategy converging towards EU energy policy
objectives.

— Take steps to prepare (under the auspices of the Ministry of Petroleum and the Ministry of Electricity
and Energy) an overall Egyptian energy strategy converging towards EU energy policy objectives (security
of supply, competitiveness and environmental protection) and covering, inter alia, all subsectors, the
strengthening of institutions and financing,

— enhance energy policy cooperation through information exchange (e.g. workshops on general energy
policy; energy statistics, data mining and forecast systems; energy investments; energy technologies trans-
fer and industrial cooperation; and electricity and gas markets and interconnections,

— adoption and start of implementation of energy strategy documents,

— continue energy policy cooperation.

Cooperation on electricity and gas markets

— Explore possibilities for gradual legal and regulatory convergence towards the principles of the EU inter-

nal electricity and gas markets,

— further develop energy pricing methodologies and exchange of views on gas pricing and transit gas fee

policies in view of the relevant EU experience,

— cooperate to build the capacity of the Electric Utilities and Consumer Protection Regulatory Agency includ-

ing its development towards an electricity regulator independent from market operators,

— cooperate to develop an oil and gas Regulatory Agency,

— cooperate to study the different models of electricity markets for establishing a local and regional elec-

tricity market and setting the rules and procedures in cooperation with the electricity sector,

— continue sector restructuring; to explore possibilities for gradual convergence towards the principles of

the EU internal electricity and gas markets and the Euro-Mashrek-Maghreb gas cooperation.

Regional element

— Cooperate, in the context of the Declaration of Intent of 2 December 2003 on the Euro-Mashrek coop-
eration in the field of natural gas including as regards the development of a regional Gas Master Plan
expected to facilitate the transportation of natural gas in particular between Egypt and the EU,

— cooperate in the field of the EU-Mashrek-Maghreb electricity market.

Progress on energy networks

— Reduce electricity network losses,

— further develop regional energy infrastructures including upgrading the electricity link with Jordan and

Libya,

— improve the safety and security of energy infrastructure,

— further develop electricity networks in rural areas.

Progress on energy efficiency and the use of renewable energy sources

— Take steps to develop an Action Plan including a financial plan for improving energy efficiency and

enhancing the use of renewable energy,

— reinforce the institutions dealing with energy efficiency and renewable energy sources,

— cooperate to develop mechanisms for effective introduction of renewable energy into the Egyptian Elec-

tricity Market and promote technology transfer and know-how in this area,

— pursue measures in energy efficiency and renewable energy sources,

— progress to reach Egypt’s target to ensure that 3 % of the electric energy needs are covered by the year 2010

by renewable energy sources.

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(c)

E n v i r o n m e n t

Improve environmental performance and enhance good environmental governance

— Implement national priorities in the field of environment protection as specified in the national environ-
mental action plan 2002-2017, with particular attention to the establishment of administrative structures
and procedures to ensure strategic planning of environment issues by the Ministry of State for Environ-
mental Affairs; to the environmental policy implementation framework and to coordination between rel-
evant actors,

— enhance coordination with line ministries through development of Policy Implementation Framework (an
initiative to assess adopted environmental policies; prioritisation for their integration into sectoral policies
and activate their implementation),

— establish procedures regarding access to environmental information and public participation,

— reinforce structures and procedures to carry out environmental impact assessments,

— exchange of experiences in the implementation of strategic environmental impact assessment,

— improve cooperation between different Ministries to implement the national strategies on cleaner produc-

tion and air quality,

— implement the environmental communication strategy,

— support civil society actors and local authorities, in order to implement the decentralised environmental

management policy.

Take active action for prevention of deterioration of the environment, protection of human health, and achieve-
ment of rational use of natural resources, in line with the Johannesburg Plan of Implementation

— Implement national priorities in the field of environment protection with particular attention to legisla-

tion and its implementation as specified in the national environmental action plan 2002-2017,

— take steps towards adoption of plans and programmes related to air quality, water quality and biodiversity,

— implement the national plan for combating desertification,

— exchange of experience on protection of biological diversity and rural landscape, with special attention to

the relevant migratory species,

— carry out strategic environmental impact assessment of industrial and tourist facilities.

Enhance cooperation on environmental issues

— Develop modalities for cooperation with the EU to implement multilateral environmental agreements with

particular emphasis on climate change, desertification, biodiversity and waste management,

— enhance cooperation to achieve the commitments by the parties with regard provisions under the Kyoto

Protocol and the UN Framework Convention on Climate Change,

— complete the ratification process of the new Emergency Protocol and the amendments to the Land-Based

Sources Protocol of Barcelona Convention,

— possible participation in selected European Environment Agency activities,

— identify possibilities to enhance regional cooperation in the field of environment,

— initiate actions which will contribute to the implementation of the objectives of the De-pollution Initiative

for the Mediterranean Sea (Horizon 2020), and promote Egyptian efforts in this regard,

— promote technology transfer and know-how in the following areas: waste management, including recy-

cling and treatment of industrial and agricultural wastes,

— enhance cooperation between Egypt and EU for protecting marine environment through the adoption of
specific actions, and taking into consideration activities within the Mediterranean Action Plan (MAP),

— enhance Euromed cooperation regarding the integrated coastal zone management.

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2.4. Migration, social integration, justice and security

Further develop cooperation between Egypt and EU Member States judicial and law enforcement authorities

(a)

J u d i c i a l c o o p e r a t i o n i n c r i m i n a l a n d c i v i l m a t t e r s

— Exchange information on ratification as well as implementation of relevant international conventions

related to cooperation in criminal and civil matters to which either side is a party,

— develop further judicial cooperation on criminal, commercial and civil matters,

— facilitate solutions to problems arising from mixed marriage disputes and child custody cases and encour-
age cooperation in accordance with the principles of the UN convention of 1989 on the Rights of the Child
and national legislation (1),

— promote judicial cooperation through strengthening the capacity of law enforcement and assistant bodies

as well as through the training of judges and prosecutors.

(b)

L a w e n f o r c e m e n t c o o p e r a t i o n

— Explore the possibilities for cooperation between Egyptian and EU law enforcement agencies, in particular

Europol and Eurojust,

— establish a network of contact points with EU Member States law enforcement authorities with a view to

exchange technical, strategic and operational information,

— promote cooperation between law enforcement agencies of the EU Member States and Egypt.

(c)

P r o m o t i n g t r a n s p a r e n c y

Exchange information on ratification and implementation of the UN Convention against Corruption and other
relevant international instruments to which either side is party.

— Develop dialogue, exchange information and strengthen cooperation between law enforcement agencies
on fighting corruption and further promote transparency, including exchanges on best practices, methods
and standards in these areas,

— strengthen measures against corruption through preventive anti-corruption policies and practices in accor-

dance with the UN Convention against Corruption.

(d) B o r d e r m a n a g e m e n t

Enhance border management cooperation between Egypt and the EU Member States.

— Develop cooperation between relevant law enforcement bodies in Egypt and in the EU, and initiate appro-

priate technical contacts with Frontex (European Border Agency),

— cooperation in reinforcing organisational capacities of controlling and surveillance of entry and exit points,

including ad hoc training.

(e) M i g r a t i o n i s s u e s ( l e g a l a n d i l l e g a l m i g r a t i o n , r e a d m i s s i o n , v i s a , a s y l u m )

— Develop a comprehensive and balanced dialogue with Egypt on various migration-related issues, includ-
ing legal migration, seasonal migration, status of Egyptian migrants and workers residing legally in Europe,
brain drain, asylum, movement of people, control of illegal migration and return, visa,

— monitoring and analysis of the migration phenomenon: synergy with the Euro-Med initiatives on research
on migration and the Consortium on Applied Research on International Migration (CARIM) in particular,

— promote the possibilities of Egypt to benefit from the Community programs and the AENEAS program
aimed at providing technical and financial assistance to third countries in the areas of migration and asy-
lum in particular,

— promote the discussion between Egypt and the EU and its Member States on the economic, political, social

and cultural dimensions of the migration issues, in addition to its security dimension.

(1) This indent should not be interpreted in a way that may imply interferences in cases before courts.

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Ensure an effective management of migration flows

— Exchange of information and experiences on legal migration, entry and stay, integration, reunification of

family, inventory of existing routes and commitments made by Member States,

— enhance cooperation to facilitate the legal movement of people between Egypt and the EU through
strengthening of the concerned institutions dealing with the promotion of employment, capacity build-
ing, as well as providing information about the employment opportunities for labour migrants in the EU,
risks of smuggling and trafficking of migrants; ensuring fair treatment of legal Egyptian migrants, and
facilitate the flow of remittance transfers,

— exchange of information and promotion of cooperation on transit migration.

Cooperate in combating illegal immigration into Egypt and the European Union

— Exchange of information and experiences on migratory movements, illegal migration including the scale

of illegal immigration into and via Egypt,

— pursue and support effort to prevent and counter illegal migration into Egypt and the European Union,

— develop a dialogue and cooperation to curb illegal migration flows, including in the regional context.

Improve cooperation regarding readmission

— Develop the cooperation between Egypt and EU on readmission, including negotiating readmission agree-
ments between the parties, building on Article 69 of the Association Agreement, taking into account the
human dimension, socioeconomic aspects and accompanying measures,

— cooperation on consular affairs and issuing of travel documents.

Facilitate the movement of persons

— Cooperate in the field of improving the movement of persons, including to facilitate the uniform visa issu-
ing procedures for certain agreed categories of persons as stated in the Association Agreement and in
accordance with the acquis,

— cooperate to improve security of travel documents and visa in conformity with ICAO standards.

Asylum issues

— Exchange information and best practices in the field of asylum policy, refugee status determination, and

legislation, and cooperate on the inter-linkages between migration and asylum.

(f)

F i g h t a g a i n s t o r g a n i s e d c r i m e ( i n c l u d i n g t r a f f i c k i n g i n h u m a n b e i n g s )

Enhance international cooperation in accordance with the UN Convention against trans-national organised
crime and its protocols on smuggling of migrants and trafficking in persons and on illicit manufacturing and
trafficking of firearms.

— Implementation of the UN Convention against Trans-national Organised Crime and its Protocols,

— exchange expertise and experiences, also through appropriate training on best practices in combating orga-

nised crime, including security and legal aspects.

Cooperate in the fight against cyber crime

— Work together to fight cyber crime.

Reinforce the fight against trafficking in human beings, especially women and children, and smuggling of ille-
gal migrants, as well as activities to prevent trafficking in human beings and to reintegrate victims.

— Promote cooperation between relevant law enforcement bodies in Egypt and in the EU on this issue,

— develop legal, social and psychological support to victims aiming at their reintegration.

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(g)

F i g h t a g a i n s t d r u g s

Continue the fight against drug trafficking, including the trafficking of essential chemicals and precursors, and
against drug abuse in particular through prevention and rehabilitation, in accordance with the 1988 UN Con-
vention on Illicit Traffic of Narcotic and Psychotropic Substances and with Article 58 of the AA.

— Develop international cooperation in fight against trafficking narcotics and drug addiction, in particular

prevention of drugs abuse, treatment and rehabilitation of drug addicts,

— cooperate in the implementation of the relevant UN Conventions,

— support national efforts in the fight against trafficking and smuggling of narcotics and drug addiction as
well as enhancing the capacity of the Egyptian Fund for the control and treatment of addiction, and sup-
porting civil society organisations in this field.

(h)

F i g h t a g a i n s t m o n e y l a u n d e r i n g ,

f i n a n c i a l a n d e c o n o m i c c r i m e

Strengthen efforts and cooperation in the fight against money laundering, financial and economic crime.

— Intensify cooperation and promote exchange of information among law enforcement agencies and coop-
eration between Egypt and international organisations, such as FATF, as well as with corresponding ser-
vices of EU Member States,

— exchange information on the existing European structures (Financial Intelligence Unit (FIU)) and the exist-

ing system in Egypt as regards money laundering,

— strengthen Egypt’s system of financial and security information,

— identify administrative/technical support and training requirements especially for the Egyptian Unit on

combating money laundering.

(i)

F i g h t a g a i n s t

t e r r o r i s m

In the framework of the counter-terrorism related UN resolutions and conventions

— Strengthen cooperation on measures to tackle the financing of terrorism,

— develop cooperation between Egypt and EU Member States counter-terrorism and law enforcement agen-
cies including through effective measures to preclude the access of terrorist elements to Egypt and EU
Member States,

— develop judicial cooperation on combating terrorism,

— work together to fight cyber crime and to fight the use of the Internet for terrorist purposes,

— cooperate in the fight against terrorist crimes in conformity with national legislation,

— support the institutional capacity building and the development of human resources and technological

capabilities of law enforcement institutions.

2.5.

Science and technology, research and development, information society and audiovisual cooperation

(a)

Science and technology, research and development

Accelerate the integration of Egypt into the European Research Area and the Community Framework
Programme

— Start implementation of the agreement on Scientific and Technological Cooperation,

— put into place and ensure the well-functioning of a network of national contact points for the 6/7th Frame-
work programme and link them up with the national RDT and innovation operators as well as with other
EU Science and Technology activities,

— pursue EU-Egypt cooperation in RDT-I, identifying the priority sectors of mutual interest, the instruments
and means of cooperation and implementation policies and strategies, including the promotion of links
between centers of excellence on both sides,

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— disseminate research results to all potential users, develop a ‘patent culture’ and set up intellectual prop-
erty offices in technology parks and universities, including support for the introduction of a doctoral level
programme in intellectual property law in the framework of the Agreement on Scientific and Technologi-
cal Cooperation.

Develop the scientific and technological capacity with a focus on the use of RTD results by the industrial and
SME sector

— Strengthen human, material and institutional resources in order to improve the capacities of RDT-I opera-

tors, including quality evaluation and management processes,

— adopt a strategy for regional technopoles with a view to organising a dialogue between all those involved
in research and end-users (industry, SMEs) and implementing interaction mechanisms between research
and industry, public-private sector,

— explore possibilities for EU support in the setting up and running of a National Fund for Scientific Research

and Development.

Promote the integration of Egypt into scientific high-level exchanges

— Reinforce Egypt’s participation in international exchange and mobility programmes, in particular the Marie

Curie scholarships; foresee appropriate mechanisms for return and integration to Egypt,

— reinforce the exchange of personnel in the joint projects and Centres of Excellence as well as promote and

facilitate the participation of Egyptian scientists in international scientific debates and fora,

— promote the access of Egyptian scientists to European scientific databases,

— promote the participation of Egyptian scientists in European research groups also in the field of innovation.

(b)

I n f o r m a t i o n s o c i e t y

Further progress in electronic communications policy and regulation

— Pursue and support the implementation of the national policy on the development of the information soci-

ety sector,

— pursue and support the development of a comprehensive regulatory framework that would fulfil effec-
tively all aspects of its mandate. Areas of interest would include: number portability, privacy protection
and information security, a state-of-art cost accounting system and subsequent cost-orientation of tariffs,
users’ rights, and universal service obligations and management,

— liberalise the fixed telephony market and continue the liberalisation of the mobile telephony market

according to national priorities,

— improve the efficiency of the National Telecommunications Regulatory Authority by providing capacity
building in areas of competition and regulation to ensure fair competition in a de-regulated market.

Further progress in the development and use of Information Society applications

— Promote the use of new technologies and electronic means of communications by businesses, govern-
ment and citizens in areas such as e-Business, e-Government, e-Health, e-Learning, e-Culture and e-content,

— cooperate in regional eStrategies such as EUMEDIS, New Approaches on telecommunications Policies

(NATP) and similar programs,

— adopt a specific plan to promote the participation of Egypt in the IST part of the Framework Programmes

as well as other EU science and technology activities,

— continue broadband development in order to increase Internet penetration,

— reinforce the skills of citizens and their access to ICT in order to overcome the digital divide,

— encourage the different stakeholders to contribute efficiently to the implementation of the Information

Society in Egypt,

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— exchange experience and cooperate on Information Society policies of global relevance, such as Internet
Governance, information security and combat against cyber crime, convergence between electronic com-
munications and media,

— promote the transfer of know-how in the introduction of Information Society networks and services,

— improve connectivity between Egypt and Europe.

(c) A u d i o v i s u a l c o o p e r a t i o n

Create conditions for an environment favouring cooperation in the audiovisual area

Work towards the development of a transparent, efficient and predictable regulatory system including through
the establishment of an independent regulatory authority in the audiovisual sector.

— Promote an exchange of views on audiovisual policy,

— encourage the exchange of information and experience with regard to regulatory aspects of the audiovi-

sual sector,

— strengthen human resource capacities and exchange of experience in the domains of audiovisual.

2.6.

People-to-people contacts

(a) C u l t u r e

Enhance cultural cooperation between Egypt and EU and its Member States

— Enhance cooperation through exchange of information, experience and expertise, in cultural sectors in line
with Article 71 of the AA, in particular as regards the protection of historic monuments and cultural heri-
tage, promotion of translations as well as capacity building and communication skills development,

— enhance Egypt’s participation in the relevant EC cultural cooperation programmes of the Euro-Med part-

nership, inter alia, by developing appropriate structures.

Dialogue between cultures

— Enhance dialogue between cultures, taking into consideration the principles embodied in the Action Pro-
gramme for the Dialogue between Cultures and Civilisations, adopted by the Valencia Ministerial Meeting
in April 2002 and taking advantage of Egypt’s hosting Anna Lindh Euro-Mediterranean Foundation for
the dialogue between cultures,

— exchange views on the Unesco Convention on the protection and promotion of the diversity of cultural
expressions including its development aspects, and promote its ratification and cooperate in its
implementation,

— promote initiatives aiming at bringing closer cultures and civilisations.

(b) Y o u t h a n d s p o r t

i s s u e s

Enhance cooperation in the field of youth and sport

— Enhance youth exchanges and cooperation in the field of non-formal education and intercultural dialogue,

— promote mutual knowledge among Egyptian and European youths of their respective cultures and foster-

ing tolerance,

— provide the best practices in establishing national councils for youth in EU Member States and on drafting

youth policies,

— promote a dialogue between EU and Egypt on sport issues,

— exchange of experience with the EU Member States on the management of various sports sectors,

— ensure the continued successful implementation of the Euro-Med Youth programme by developing an

effective national management structure.

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(c) C i v i l s o c i e t y c o o p e r a t i o n

— Examine the scope for further improving the legal and administrative framework for the operation of civil

society organisations,

— support the Egyptian Non-Governmental Organisations in contributing effectively in the economic, politi-

cal and social development process in accordance with national legislation.

3.

Joint monitoring

The Action Plan will be submitted for formal adoption to the EU-Egypt Association Council.

The Action Plan will give orientation for the cooperation between the EU and Egypt.

The joint bodies established under the Association Agreement will advance and monitor the implementation of the
Action Plan on the basis of regular reports on its implementation.

A first review of the implementation of the Action Plan will be undertaken within two years of its adoption.

The Action Plan can be regularly amended and/or updated jointly to reflect progress in addressing the priorities.

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GLOSSARY

EASA:

ECAA:

European Aviation Safety Agency

Egyptian Civil Aviation Authority

EUMEDIS:

Euro-Mediterranean Information Society

FATF:

FDI:

FEMIP:

GATS:

GFCM:

ICAO:

ICT:

IPPC:

ILO:

IMO:

IPR:

ISPS:

IST:

JAA:

Financial Action Task Force on Money Laundering

Foreign Direct Investments

Facility for Euro-Mediterranean Investment and Partnership

General Agreement on Trade in Services

General Fisheries Commission for the Mediterranean

International Civil Aviation Organisation

Information and Communication Technology

International Plant Protection Convention

International Labour Organisation

International Maritime Organisation

Intellectual Property Rights

International Ship and Port Facility Security

Information Society Technologies

Joint Aviation Authorities

MARPOL:

International Convention for the Prevention of Marine Pollution from Ships

NCHR:

NEPAD:

OECD:

OIE:

R&D:

RDT-I:

SME:

SOLAS:

TAIEX:

TRIPS:

TVET:

UNSC:

VTMIS:

WMD:

WTO:

National Council for Human Rights

New Partnership for Africa’s Development

Organisation for Economic Cooperation and Development

Organisation Mondiale de la Santé Animale

Research and Development

Research, Technological Development and Innovation

Small and Medium Enterprises

International Convention for the Safety of Life at Sea

Technical Assistance Information Exchange

Trade-Related aspects of Intellectual Property rights

Technical Vocational Education and Training

United Nations Security Council

Vessel Traffic Management and Information Systems

Weapons of Mass Destruction

World Trade Organisation