1. THE EU - EGYPT ASSOCIATION AGREEMENT AND AGRICULTURAL PRODUCTS
21/09/2018
EU Commission Delegation Cairo

2. 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

3. 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

4. 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

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

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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. INCREASED QUOTAS FOR CERTAIN PRODUCTS
LOWER TARIFF RATES
INCREASED QUOTAS FOR CERTAIN PRODUCTS
21/09/2018
EU Commission Delegation Cairo

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. EU Commission Delegation Cairo www.eu-delegation.org.eg
Useful Information
EU-Egypt Association Agreement (on EC Delegation’s Website):
Customs Website:
Ministry of Foreign Trade:
European Information Correspondence Centre (EICC):
Industrial Modernisation Centre, 1195 Cornish El Nil. Tel: , Fax:
Industrial Modernisation Programme:
EU Export Helpdesk for Developing Countries:
EU Standards:
World Customs Organisation:
21/09/2018
EU Commission Delegation Cairo

23. 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

24. 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

25. THE EU - EGYPT ASSOCIATION AGREEMENT AND AGRICULTURAL PRODUCTS
21/09/2018
EU Commission Delegation Cairo