THE EU - EGYPT ASSOCIATION AGREEMENT AND AGRICULTURAL PRODUCTS 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg Context AA and Agriculture Context: Multi-functionalilty of agriculture for the EU: sui generis (national security, landscape, biological farming,...) BUT: Efforts => CAP reform, adopted in June 2003. 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg Context Main principles of the CAP reform : Move from price support towards direct Income support for indiv. farmers decoupled from production, linked to env., food safety and health standards designed to help small farmers (landscape), reduction in direct payments for bigger farms 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg Context With CAP reform, EU is now more in line with WTO, (you can see shift from product to producer support (less distorting), as opposed to the US....) 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg EU-Domestic Support 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg US-Domestic Support 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg Context WTO - EU has made recent offer, concerning Agric. this contains: Very substantial cuts in trade-distorting subsidies (CAP reform) Sharp tariff cuts to improve market access, but with flexibility EU is ready to put on the table all export subsidies (no a priori exclusions) IF: acceptable outcome on market access, domestic support and non-trade concerns, and we get strict parallelism for all forms of export subsidisation 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg EU - EGYPT AA The Association Agreement entered into force on 1 June 2004, the trade part (incl. agric. goods) is in force already since 1 January 2004 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

Overall Objective of the AA Establish an appropriate framework for co-operation and partnership which will contribute to the economic and social development of Egypt Not only trade and economics (also includes a regular political dialogue, co-operation and social matters, migration, co-operation in cultural, audio-visual, media, information…) 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

Establishment of an FTA between Egypt and the EU Core of the AA = Establishment of an FTA between Egypt and the EU 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg Industrial Goods: - for Egyptian ind.prod. to the EU: immediate free access - for EU ind.prod. into Egypt: gradual dismantling - 4 lists of products with different time schedules, (max. transitional period: 15 years) Agricultural Goods: both the EU and Egypt significantly improve access for agricultural products ---------------------------------------------------------------------- 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

AA-Agricultural Chapter Chapter 2 of Association Agreement (articles 12 to 16) Agricultural products and processed agricultural products listed in Protocols 1, 2 and 3 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

INCREASED QUOTAS FOR CERTAIN PRODUCTS LOWER TARIFF RATES INCREASED QUOTAS FOR CERTAIN PRODUCTS 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg In Practice For Egyptian Products into the EU: 100% customs duties reduction for a list of agricultural and processed agricultural products (Annex to Protocol 1 and Annex II to Protocol 3) Higher quotas 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

In Practice Examples (Egyptian agricultural products): Duty Reduction Tariff Quota 2004 Duty Reduction Beyond Quota Onions (1/02 to 15/06) 100% 15,000 60% Potatoes (1/01 to 31/03) 130,000 Pears 500 - Tomatoes (1/11 to 31/03) Free quota Watermelons (1/02 to 30/04) Carrots (1/01 to 30/04) Sweet Potatoes 3,000 Grapefruit (1/02 to 14/07) 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg In Practice Egyptian processed agricultural products: 100% customs duty reduction (Examples): Sugar confectionery Tomato sauces Soups and broths Waters Beer Cigars and cigarettes Mango chutney, coffee preparations… 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg In Practice For EU Products: Reduction of customs duties between 25% to 100% for a list of products, in some cases within the limit of a quota Gradual tariffs reduction for processed agricultural products 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

In Practice Examples (EU agricultural products) Duty Reduction Tariff Quota Milk powder 100% Free Quota Cream 25% 500 Cheese and Curd 50% 2,000 Apples (from 1/01 to 29/02) Cherries Soya beans 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

In Practice EU processed agricultural products (Examples): Natural sponges, cocoa paste and preparations for infant use: on 1/01/2006 (Table 1 of Protocol 3) (100% reduction) Yoghourt, margarine, tomato ketchup, soups: from 1/01/2006 to 1/01/2008 (Table 2 of Protocol 3) (from 5% first year to 15% final reduction) 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

In Practice EU processed agricultural products (Examples): Sweet corn, pasta, chocolate, waters: from 1/01/2006 to 1/01/2008 (Table 3 of Protocol 3) (from 5% first year to 25% final reduction) 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

Agricultural Products In 2006, the EU and Egypt shall examine the situation in order to determine the measures to be applied to establish a greater liberalisation of their trade in agricultural, fisheries and processed agricultural products ----------------------------------------------------------- 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg Useful Information EU-Egypt Association Agreement (on EC Delegation’s Website): www.eu-delegation.org.eg/en/eu_and_country/association.htm Customs Website: www.customs.gov.eg Ministry of Foreign Trade: www.moft.gov.eg/English/ftrade/index.stm European Information Correspondence Centre (EICC): Industrial Modernisation Centre, 1195 Cornish El Nil. Tel:+202 5770090, Fax:+202 5772870 E-mail: info@eicc.org.eg Industrial Modernisation Programme: www.imc-egypt.org.eg EU Export Helpdesk for Developing Countries: http://export-help.cec.eu.int EU Standards: www.newapproach.org World Customs Organisation: www.wcoomd.org 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

EU Commission Delegation Cairo www.eu-delegation.org.eg BUT: Are existing Export opportunities to the EU really used by Egypt? 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

Export opportunities used? Are AA quotas really filled ? Cabbage, cauliflower (0%), carrots (13%), lettuce(21%), melons (23%), cut flowers (24%), garlic (64%),... Fish Potatoes ... ----------------------------------------------------- 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg

THE EU - EGYPT ASSOCIATION AGREEMENT AND AGRICULTURAL PRODUCTS 21/09/2018 EU Commission Delegation Cairo www.eu-delegation.org.eg