Al-Ahram Weekly | Economy | Pressing ahead with the partnership

		7 - 13 November 2002 Issue No. 611 Economy	Current issue Previous issue Site map
Published in Cairo by AL-AHRAM established in 1875		Recommend this page

Pressing ahead with the partnership
Egypt and the European Union are trying to speed up the implementation process of a joint trade agreement signed a year ago

Prime Minister Atef Ebeid was in Brussels last week on the first visit by an Egyptian prime minister to the European Commission, Niveen Wahish reports.
Following an invitation by the President of the EU Commission Romano Prodi, the purpose of the prime minister's visit was to strengthen trade ties between Egypt and the EU -- and also to look into ways of speeding up the ratification of the Association Agreement between the two sides signed in June 2001. The agreement -- which establishes a free trade between Egypt and the EU in certain areas -- grants Egyptian industrial products unlimited access to European markets.
The European Parliament and Sweden have so far ratified the agreement and preparations are underway to present it to the Egyptian People's Assembly and the remaining 15 EU member states.
Ebeid expressed his commitment to press on with the ratification by presenting the agreement to the People's Assembly and the Shura Council during the upcoming parliamentary session scheduled for 16 November. Prodi also said he would do his best to accelerate the ratification process on his side of the Mediterranean.
The two sides also discussed the initiation of trade collaboration prior to ratification. The EU ambassador to Egypt, Ian Boag, said certain elements of the Association Agreement did not require ratification. While ratification would certainly provide a better framework, he added, the two sides could start building better economic ties and cultural exchanges. Representatives of the two sides will meet every three months to address any obstacles to the implementation of the agreement.
Ebeid witnessed the signing in Brussels of Part A of the Trade Enhancement Programme -- an assistance package unrelated to the Association Agreement -- by Egypt's Minister of Foreign Trade Youssef Boutros Ghali and Chris Patten, the EU external relations commissioner. The agreement -- worth 20 million euros -- will provide to the Egyptian Ministry of Foreign Trade technical assistance on developing trade management capacities. It will help Egypt strengthen its role in the World Trade Organisation.
This is the first project under MEDA II -- the EU assistance programme for the Mediterranean countries which are part of the Barcelona process -- to be signed with Egypt. Part B of the Trade Enhancement Programme involves budgetary support for reform of customs and foreign trade at a value of 40 million euros and is currently being discussed. The total figure for 2002-2004 funds for Egypt within MEDA II is 351 million euros.
The MEDA II assistance programme provides some 535 billion euros in assistance to the Mediterranean EU partners.
Discussions between Egypt and the EU have so far focused on speeding up the implementation of the Association Agreement and have not addressed the possibility of signing an interim agreement between the two sides. "There is no intention at the moment to have an interim agreement. If and when the agreement is ratified, this could come for discussion," Ambassador Boag said. The EU signed interim agreements with Tunisia and Israel.
Full implementation of the agreement signed with Egypt depends on the ratification of the remaining 15 EU members. Ambassador Gamal Bayoumi who headed the six-year long negotiations with the Europeans, says an interim agreement will allow Egypt to take advantage of the agricultural quotas as well as quotas on textiles and garments.
To reciprocate the European gesture, the Federation of Egyptian Industries has made a list of 65 products -- including raw materials and machinery -- on which the government could dismantle quotas. The losses to customs, according to Bayoumi, would not exceed LE100 million annually.

Send a letter to the Editor Recommend this page

ARCHIVES
Letter from the Editor
Editorial Board
Subscription
Advertise!

WEEKLY ONLINE: weekly.ahram.org.eg
Updated every Thursday at 20.00 GMT, 10 pm local time
weeklyweb@ahram.org.eg

Al-Ahram Organisation