Duration

Valid until terminated by either party  by notification to the other party. The Agreement shall cease to function after the elapse of  12 calendar months from date of notification.  

Establishment of the Agreement

Egypt started negotiations with EU for concluding a partnership agreement in 1995. Its initial signature was made on January, 26th 2001 in preparation for the final signature that was effected on June, 25th  2001. 
According to the Agreement, a FTA will be established during a 12-year transitional period, from the date the Agreement enters into force.
During the third year both parties will decide upon the procedures - to be implemented on the following year - to further liberalize their trade in agricultural products, maritime products and processed agricultural products. 
The Agreement permits Egypt to take certain exceptional measures for specific periods during the transitional stage, if and when certain domestic industries face a threat as a result of liberalization of imports of similar goods from the EU.
The Agreement includes implementation of WTO and GATT regulations against anti-dumping, subsidy and safeguard measures. The Agreement allows each party to enjoy Most Favorite Nation treatment from the other party in trading services. 
The Agreement aims at increasing the flow of foreign capital, expertise and technology to Egypt.
Egyptian exports of manufactured goods to the EU will be exempted from tariffs once the Agreement enters into force, meanwhile, EU exports of manufactured goods to Egypt shall be tariff-exempted  according to the lists and time frame specified in the Agreement.
Agricultural goods and agricultural processed goods shall not be tariff exempted but shall be treated according to the rules stipulated in the agreement which defines certain quotas for specific goods with tariff privileges and certain market windows for exportation.

Entry Into Force

Upon ratification of  the People's Assembly in Egypt and the Parliaments of the EU- member states (The 15 member countries) 

Objectives of the Agreement

1. Establishing an adequate framework for a political dialogue to develop close political ties between the parties.
2. Paving the way for continuous liberalization of trade in goods, services and capital.
3. Developing balanced economic and social relations through mutual cooperation.
4. Contributing to the process of economic and social development in Egypt.
5. Encouraging regional cooperation to promote peaceful coexistence and economic and political stability.
6. Promoting cooperation in other fields of mutual interest.

Establishment of FTA between Egypt and the EU

Manufactured Products

According to the Agreement both parties will enjoy trade liberalization from all barriers of quantity and tariffs based on the time frame and the specific lists incorporated within the Agreement.

Exempted EU Exports 

Manufactured goods exported from the EU to Egypt are to be exempted from all quantity, tariffs and any other barriers having the same effect according to the following time frame:
Goods in List(1): Tariffs are to be gradually eliminated over 3 years. A reduction of 25% is to be applied on the date the Agreement enters into force and then there will be an annual reduction of 25%. (For a detailed list of these products refer to the table p. 83*)

Goods in List (2):   Tariffs will be reduced gradually in the following manner: 10% after 3 years from the date the Agreement enters into force to be followed by an annual tariff reduction of 15% over 6 years until tariffs are fully eliminated (For a detailed list of these products refer to the table p. 125*)

Goods in List (3):  Tariffs will be reduced gradually in the following manner: 5% after 5 years from the date the Agreement enters into force to be followed by a 10% reduction on the following year,  followed by a reduction of 15% annually for 5 years and 10% reduction in the final year (For a detailed list of these products refer to the table p. 194*)

Goods in List (4):  Tariffs will be gradually reduced by 10 % annually after the elapse of 6 years from the date the Agreement enters  into force, until tariffs are fully eliminated (For a detailed list of these products refer to the table p.259*). Those goods include certain types of vehicles. 

Exempted Egyptian Exports 

Egyptian exports of manufactured goods to the EU shall be exempted from tariffs or any other fees of similar effect once the Agreement enters into force. 

* These tables are displayed in a publication titled "Trade Liberlalization in the Egyptian-EU Partnership Agreement (2)", published by the Ministry of Foreign Trade, July 2002
 

Liberalization of Trade In Agricultural Commodities

Agricultural  Products

Egypt and the EU agreed on exempting certain quotas of agricultural products from custom duties and reducing the tariffs on exports that exceed these quotas.

Arrangements Applicable to Imports into the EU of the Egyptian Agricultural Products 

Products listed in the table (page 37)* with Egyptian origin may be imported into the EU according to the following conditions:
a) Tariffs are either eliminated or reduced as per column (a) of the table (page 37)

b) For products which the EU tariff system stipulates a value-based fee and a specific fee, reductions listed in coloumn (a) and (c) shall only apply to the value-based fee.

c) For specific products, tariffs will be eliminated within the quotas specified in column 
(b). Beyond the set quotas for quantities, either full tariffs are applied or a tariff reduction is implemented as per column (c).

d) Products under column (d) are liable to a 3% annual increase on tariffs listed in column (b) based on the volume of the preceding year.

e) As of December 1st and up to May 31st, the agreed upon entry price shall apply for fresh oranges within a tariff quota of 34000 tons, with regards to the preferential advantage of a value-based customs fee. The customs fee shall be reduced to a zero level, which was set at Euro 266/ton as of  Dec 1st, 1999 and up to May, 31st, 2000 and readjusted to Euro 264/ton afterwards for the same period.
 the shipment's entry price is less than 2%, 4%, 6%, or 8% of the agreed upon price, the fixed tariff  fee shall be equivalent to the 2%, 4%,6% or 8% percent of the agreed upon entry price. If the entry price is less than 92% of the agreed price, the fixed tariff rate set by the WTO shall then apply. As for the remaining quota of fresh orange ( 26000 tons), the value -based tariff rate shall be reduced by 60%.
f) Cut flowers have a quota of 3000 tons, under the following conditions:
The price level of the Egyptian exports to the EU must be at least equal to 85% of the EU price for the same type of product and during the same market window.
If Egypt's price level for any of these products is below 85% of the EU price level, preferential tariff shall cease to function, The EU shall reapply the preferential tariff, if and when the Egyptian price quotas exceed or equal 85% of the price level of the EU.

EU Agricultural Commodity Exports To Egypt

Tariffs on EU agricultural exports shall either be eliminated or reduced to the level defined in column (a) ( table on page 44)*.
For specific products, tariffs will be eliminated or reduced within quotas listed in column (b).

* These tables are displayed in a publication titled "Trade Liberalization in the Egyptian-EU Partnership Agreement (2)", published by the Ministry of Foreign Trade, July 2002

Processed Agricultural Products

A specific number of European processed agricultural products will be exempted from tariffs in Egypt after two years from the date the Agreement enters into force.

EU Treatment of Processed Agricultural Imports from Egypt

The agricultural products used in the production of agricultural commodities are subject to CAP (Common Agricultural Policies) to attain the domestic prices higher than those prevailing in the international markets (especially products like grains, sugar and dairy products). The EU imposes the following duties on its imports of processed agricultural commodities:
1) Relative custom fees (between 2% and 12%) are applicable based on the processing operations of those commodities. Egyptian exports will be exempted from this custom fee. (for a detailed list of these products refer to the table p. 49)*
2) A tariff fee on the agricultural components, equivalent to the difference between their international prices and domestic (EU) prices. A list of Egyptian processed agricultural products will be exempted from the relative custom fee while the tariff fee on the agricultural component will remain unchanged (for a complete list of these products see the table p. 58)*, whereas a number of other Egyptian processed agricultural products will enjoy a 30% exemption of the tariff fee on the agricultural component in addition to the complete exemption from the relative custom fee (for a detailed list of these products refer to the table p. 62)*.
3) An additional fee shall apply on commodities whose component includes ingredients of grains, rice, sugar or dairy products.

Treatment of EU Exports of Processed Agricultural Products to Egypt

EU exports of processed agricultural products to Egypt will be treated according to the following categories:
1. Products that will be exempted of all tariffs and other fees with a similar effect after two years from the date the Agreement enters into force. (for a detailed list of these products refer to the table p. 63)*.
2. Products whose tariffs and other similar fees will be reduced according to the following timetable:
A reduction of 5% of the basic fees after two years from the date the Agreement enters into force.
A reduction of 10% of the basic fees after three years from the date the Agreement enters into force.
A reduction of 15% of the basic fees after four years from the date the Agreement enters into force.
(for a detailed list of all these products refer to the table p. 67)*
3. Products whose tariffs and other similar fees will be reduced according the following timetable:
A reduction of 5% of the basic fees after two years from the date the Agreement enters into force.
A reduction of 10% of the basic fees after three years from the date the Agreement enters into force.
A reduction of 25% of the basic fees after four years from the date the Agreement enters into force.
(for a detailed list of all these products refer to the table p. 71)*

* These tables are displayed in a publication titled "Trade Liberalization in the Egyptian-EU Partnership Agreement (2)", published by the Ministry of Foreign Trade, July 2002