Egypt’s unique geographic position provides a perfect opportunity in terms of market accessibility, as well as different trade treaty incentives that companies functioning in Egypt can take advantage of.
Egypt’s many free trading deals give it entry to 1.5 billion customers, including 100 million Egyptians. Moreover, the Suez Canal connects creditors to existing and emerging markets, with the Suez Canal accounting for 8% of global trade. Shipment duration and price are faster and cheaper from Egypt, taking seven days shorter to reach the United States than from China and saving 50% over the UAE.
Trade agreements
- Agadir Free Trade Agreement
- Egypt-Efta free trade agreement
- Egypt-Turkey Free Trade Agreement
- Greater Arab Free Trade Agreement
- Qualified Industrial Zones
- Egypt-MERCOSUR Free Trade Agreement
- Common Market of Eastern and Southern Africa
Agadir Free Trade Agreement
The Agadir Agreement, which established a free trading zone between Jordan, Morocco, and Tunisia, was signed by Egypt in 2004 and 2006.
Many essential concerns are addressed in this contract, including import duties structures, guidelines of origin, state procurements, monetary dealings, protection initiatives, emerging markets, subsidy and dumping, copyrights, policies, and the establishment of a dispute resolution framework. One of the most significant elements mentioned in the Agadir Treaty is the laws of the origin, which will boost the potential European Access To markets for Party state goods, encouraging investments and increasing inter-country regional collaboration.
After adding ten additional member states, the Agadir Agreement has even greater advantages in growing the European Union’s markets.
Egypt-Efta Free Trade Agreement
In 2007, participating countries of the European Free Trade Association (EFTA) negotiated and ratified a free commerce deal with Egypt to facilitate and expand trade relations between Egypt and EFTA countries. The contract boosted economic ties into the Euro-Med Zone by liberalizing trading in manufacturing and processing farm commodities. As a result, Egyptian commercial exports have been liberalized, while Egyptian customs duties on manufacturing imports from EFTA countries have been steadily lowered.
Swiss firms have been given a chance to establish the export sector in Egypt to export their items to EFTA due to this agreement.
Egypt-Turkey Free Trade Agreement
Egypt and Turkey established a bilateral free trade agreement (FTA) in 2005, which went into effect in 2007. The deal set a free trade zone between the two nations for 12 years. This deal makes it easier for Egyptians to enter EU markets. Trade pacts between Egypt and Africa, such as COMESA, make it easier for Turkish investors to get into the country.
By combining Turkish and Egyptian companies and allowing Egyptian producers to gain from Turkey’s expertise in the EU, the Egypt–Turkey FTA is anticipated to assist exporters in meeting the EU’s stringent laws and requirements.
Greater Arab Free Trade Agreement
17 Arab League countries signed GAFTA in 1981, and its terms were agreed upon in 1997. This pact intends to improve and promote commerce between Arab countries. GAFTA pledged to abolish all non-tariff obstacles, comprising regulatory, fiscal, economic, and technical hurdles, and lower customs annually for the next ten years until they reached a free trade area in 2007. Nevertheless, the Arab Conference in 2002 determined to achieve zero tariffs among the Arab States in 2005 rather than in 2007 and to give favorable treatment to the undeveloped member countries.
Qualified Industrial Zones
Within Egypt, certain geographic zones are duty-free with the US. Businesses situated within such areas are permitted duty-free entry to US marketplaces if they meet pre-defined origin requirements that have been agreed upon. The advantages of Egypt’s QIZ are numerous, with the most notable being easy accessibility to US markets, free, limitless quotas, and freedom from tax and non-tariff restrictions.
Egypt-MERCOSUR Free Trade Agreement
Egypt inked a favorable Free Trade Agreement with the Trade Bloc of the South in 2010, allowing Egyptian exporters complimentary access to Latin American regions. The FTA intends to reduce duties between Egypt and Mercosur nations by more than 90% and eliminate import fees on farm products, as well as seek answers to concerns like rules of origin and good assurances, etc.
Common Market of Eastern Southern Africa
The COMESA Agreement began as a planned preferred trade zone to eventually develop a free trading region between member nations that would eventually expand into a customs alliance and, ultimately, a common market. Egypt, as a participant of COMESA, exempts commodities with COMESA certifications of origin from import duties. The goal of this agreement was to cut and harmonize foreign taxes in ten years starting in 2009 and concluding in 2018. By 2025, a monetary union is expected to be established.
