Transcript Document

‫وزارة التجارة والصناعة‬
Ministry of Trade and Industry
Dr. Mona El Garf
Associate Professor, Faculty of Economics and Political Science,
Cairo University
Lead Economist, Minister’s Technical Office
‫جمهورية مصر العربية‬
‫وزارة التجارة والصناعة‬
Ministry of Trade and Industry
Regional Integration and Development:
A Possible Framework for the
Mediterranean Region
FCM Conference on
“Integration and Development in the
Mediterranean Region: the Role of the
Accountancy Profession”
Paris
28th of November 2008
Main Points
I. Facts
II. Why Deepening the Euro-Mediterranean
Relation is Important?
III. What is the Framework of Mediterranean –
EU Relationship?
IV. What are the Implications of Egypt-EU
Economic Relations in Figures?
V. What’s New?
VI. Where You Can Fit?
3
I. Facts
 Egypt and EU have long standing relationship.
 Egypt believes that there remains room for deepening
existing relations.
 The government cannot act alone. Other stakeholders
should be strongly involved.
 Hence, launching the FCM Conference reinforces this vision.
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II. Why Deepening Euro-Mediterranean Relation is
Important? It is a Win – Win Situation
From the European Side
 The
Mediterranean
frontier
poses
enormous
demographic
and
geostrategic advantages.
 This region has the potential to act as a nexus of cultural dialouge
between the East and the West.
 Europe's security and prosperity can only be assured if the countries
bordering the Mediterranean also enjoy security and prosperity.
 A healthy and prosperous Mediterranean will reinforce the position of
Europe in the world.
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II. Why Deepening Euro-Mediterranean Relation is
Important? It is a Win – Win Situation
From the Mediterranean Side
1. Importance of the EU on the global Market (27 members)
 28% of the world GDP;
 40% of the world merchandise and services trade;
 51% out of the world foreign direct investment outflows during 2006;
 Ranks 2nd after ASEAN bloc in terms of the population, with 7% out of the world
population;
 Different free trade agreements between the EU and other countries and blocs, 26 of
these agreements have entered into force
2. More than 50% of the Mediterranean countries’ trade is with the EU, 70% of the
exports of some Mediterranean countries are directed to the EU.
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III. What is the Framework of the Mediterranean – EU
Relationship? Egypt Case (From Shallow to Deep Integration)
1. Cooperation Agreement 1977
2. Barcelona Process 1995
 Association Agreement: entered into force 2004
 European Neighborhood Policy: March 6th 2007, adopting Egypt-EU
Action Plan
 Union for the Mediterranean 2008
1995
Barcelona
Process
1977
Cooperation
Agreement
2008
Union For
Mediterranean
2007
ENP
2004
Association
Agreement
7
III. What is the Framework of the Mediterranean – EU
Relationship? Egypt Case (From Shallow to Deep Integration)
1. Cooperation Agreement (1977-2004)
 Economic co-operation between the parties;
 Non-reciprocal trade liberalisation and market access for industrial goods.
 Partial preferential treatment for some specific agricultural exports.
 Four financial Protocols (EC funding for programmes and projects in Egypt - 661 million
euros).
2. Barcelona Process (1995)
 Objective: creating an area of dialogue, exchange and co-operation guaranteeing
peace, stability and prosperity.
 Two instruments:


Bilateral level (the Association Agreement);
Regional level (the Euro-Mediterranean conferences at the Ministerial Level).
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III. What is the Framework of the Mediterranean – EU
Relationship? Egypt Case (From Shallow to Deep Integration)
 Association Agreement - AA (2004 - present)
 Objective: establishing a Free Trade Area for industrial goods
in 12 years with some exceptions.
 January 2004, the Trade Component entered into force
The AA has three main pillars:
the Political and Security pillar;
the Economic and Financial
pillar and the Social and
Cultural pillar.
 June 2004, Social, Political and Security components entered
into force.
Why Liberalizing the
Services Sector with the EU?
 Liberalization of Trade in Services and Right

• Built in agenda in AA, article 30,
of Establishment
• Goal of the Barcelona Process,
July 2003, the Istanbul protocol paved the way towards
• Istanbul & Marrakech Ministerial
the liberalization of trade in services.
 March 2006, Regional Euro-Med negotiations launched.
Declaration,
• ENP Action Plan,
• Egypt’s National Strategy
 In 2008, Bilateral negotiations launched between the EU
and Egypt, Morocco and Tunisia as well.
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III. What is the Framework of the Mediterranean – EU
Relationship? Egypt Case (From Shallow to Deep Integration)
 Euro-Mediterranean Road Map for Agriculture


In 2004, the Roadmap for liberalizing trade in agriculture, processed agriculture and fishery products was
formulated.
In 2008, Egypt-EU finalized their agreement to fully liberalize agricultural products, with very short list of
sensitive products.
 Dispute Settlement Mechanism (DSM)

Since 2006, negotiations was launched on the establishment of a DSM.
 European Neighborhood Policy (ENP)

In 2004, the ENP is based on sharing common values such as
democracy and human rights, rule of law, good governance, market
economy principles and sustainable development.

The ENP compliments the Barcelona Process (free trade
Euro-Med area by 2010).

On March 6th, 2007, Egypt adopted the Action Plan which
reflects Egypt’s reform agenda during the period 2007-2010.
ENP Members
The ENP covers 16 countries;
the 10 Mediterranean countries
Algeria, Egypt, Israel, Jordan,
Lebanon, Libya, Morocco, the
Palestinian Authority, Syria and
Tunisia. In addition to Armenia,
Azerbaijan, Belarus, Georgia,
Moldova and Ukraine.
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However…………
 It is no secret that the European Union’s policies toward the
Mediterranean basin are not dynamic enough to instigate
development.
 The Barcelona process did not achieve expected results in
addition that the private sector and the region’s populace
were not engaged in it.
 Problematic areas of cooperation such as immigration,
energy, security and political stability were not properly
addressed.
 Mediterranean countries
cooperation from EU.
expect
more
constructive
Calls for other alternatives or strategies soon
emerged from within Europe Itself
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III. What is the Framework of the Mediterranean – EU
Relationship? Egypt Case (From Shallow to Deep Integration)
 Barcelona Process: The Union for the Mediterranean
 Launched by Nicolas Sarkozy during his Presidential campaign in 2007.
 On 3 March 2008: Franco-German agreement paved the way for the European
agreement on the Union for the Mediterranean.
 On the 13/14 March 2008: The European Council approved the principle of a
Union for the Mediterranean and invited the Commission to present proposals
defining the modalities of what will be called “Barcelona Process: Union for the
Mediterranean.
 On July 13 2008 (Paris Summit for the Mediterranean – Heads of State):
The first summit took place in Paris under the co-presidency of The President
of France AND The President of Egypt.
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III. What is the Framework of the Mediterranean – EU
Relationship? Egypt Case (From Shallow to Deep Integration)
 Barcelona Process: Union for the Mediterranean as agreed upon in the
10th Euro-Med Ministerial Conference of Ministers of Foreign Affairs (Marseilles
3-4 Nov.)
Objective: build on and reinforce the successful elements of the existing
Barcelona Process based on the following:
 Enhance multilateral relations,
 Increase co-ownership of the process,
 Set governance on the basis of equal footing and translate it into concrete
projects, more visible to citizens.
Members:
 27 Member States of the European Union,
 10 Mediterranean countries which are members of the Barcelona Process
 Other six countries bordering the Mediterranean (Albania, Croatia, Bosnia and
Herzegovina, Montenegro, Monaco and Turkey).
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III. What is the Framework of the Mediterranean – EU
Relationship? Egypt Case (From Shallow to Deep Integration)
Barcelona Process: Union for the Mediterranean (Cont’d)
Co-Presidency
 2 directors (one from EU and one from the
Med. countries).
Apply to Summits, all Ministerial meetings,
Senior Officials meetings, the Joint Permanent
Committee.
Institutional Framework
1. Joint Secretariat (Barcelona)
2. Joint Permanent Committee (Brussels)
3. Senior Officials
Biennial summits of Heads of
Government will be held. The 1st summit
took place in Paris on 13 July 2008.
Ministers reached a unanimous agreement on the participation of the
Arab League at all the meetings and at all levels of the Union for the
Mediterranean.

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III. What is the Framework of the Mediterranean – EU
Relationship? Egypt Case (From Shallow to Deep Integration)
Projects: The Summit on 13 July 2008 has identified 6 areas for cooperation:

De-pollution of the Mediterranean;
2.
Maritime and Land Highways;
3.
Civil Protection,
4.
Alternative Energies - Mediterranean Solar Energy Plan;
5.
Higher Education and Research;
6.
The Mediterranean Business Development Initiative;
Funding
 Funding for regional projects and activities should come mainly from the EU and its Member
States; private sector; contributions from Mediterranean partners; International financial
institutions; regional banks; FEMIP; ENPI
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III. What is the Framework of the Mediterranean – EU
Relationship? Egypt Case (From Shallow to Deep Integration)
Agreed Upon Issues in the Conference of the Ministers for Industry of
the Barcelona Process: Union for the Mediterranean (Nice, 5 and 6
November 2008)
“Ministers welcomed the initiative of the Egyptian and French coPresidents and the European Investment Bank to convene a high level
meeting of Arab, European and Mediterranean financial institutions in
Cairo in January 2009 to discuss ways and means to ensure the
availability of funds for the UpM projects, notably in the field of
energy preservation, solar energy, transportation, vocational training,
as well as promoting SMEs.”
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IV. What are the Implications of Egypt-EU
Economic Relations in Figures?
The Importance of EU to Egypt in 2007/08
 EU is considered Egypt’s main trading partner, constituting
33.7 % of Egypt’s total trade volume.
 EU is a main source for Egypt’s FDI inflows reaching 5.1
billion$
 EU is considered one of the main sources for financial and
technical aid to Egypt.
 EU is a main source for tourism inflows in Egypt. In 2007,
49.7% of the incoming tourism came from EU
Source: Central Bank of Egypt
Ministry of Tourism
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IV. What are the Implications of Egypt-EU
Economic Relations in Figures?
Total Trade between Egypt and EU
EU represents 33.7 % of
Egypt’s total trade volume
Total Exports and Imports between
Egypt and EU
20000
18007
18000
16000
27816
30000
14000
20446
Million $
20000
18237
15000
10000
12993
7906
9458
5000
0
Million $
25000
13006
12000
11289
9808
10000
7849
8000
6000
4000
5109
2797
5923
5144
6948
7441
3535
2000
0
2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Egypt's Exports
Source: Central Bank of Egypt
Egypt's Imports
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IV. What are the Implications of Egypt-EU
Economic Relations in Figures?
The Evolution of Net FDI Inflows
from EU
Number of EU visitors to Egypt
6000
5114
6
4.6
5000
5
4061
Million of tourists
Million $
4000
2954
3000
2000
1000
0
5.5
5.4
813
584
4
3
1.3
2
1.6
1
43
0
2002/03
2003/04
2004/05
Source: Central Bank of Egypt
2005/06
2006/07
2007/08
2005
2006
2007
Jan.-March 07
Jan.-March 08
Source: Ministry of Tourism
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IV. What are the Implications of Egypt-EU
Economic Relations in Figures?
EU Financial and Technical Assistance Instruments
1. Financial Instruments
 European Neighborhood
and Partnership Instrument
(ENPI)
 Facility for EuroMediterranean Investment
and Partnership (FEMIP)
 Neighborhood Investment
Fund
2. Technical Assistance
Instruments
 Technical Assistance &
Information Exchange (TAIEX)
 Twinning Mechanism
 Competitive and Innovation
Program (CIP)
 7th Research Framework Program
– (FP7)
20
IV. What are the Implications of Egypt-EU
Economic Relations in Figures?
Ministry of Trade and Industry-EU Cooperation Programs
Summary Overview of Major Technical Assistance & International Cooperation Programs
Status as of 20 November, 2008
Project /Intervention
Title
Policy
Area
Value
Start
Date
End
Date
Instrument and Status
Technical Assistance to Support the
Implementation of the Action Plan (TASIAP)
Trade, Internal
Market and Industry
€ 74,000,000 TBD
(20% from GoE)
TBD –
Q2/2010
TBD –
Q4/2013
Technical Assistance
Technical Vocational and Educational
Training (TVET)
Industry
€ 66,000,000
(50% from GoE)
01.07.05
30.06.11
Technical Assistance
ONGOING
Building the Capacity of the Egyptian
Accreditation Council to Deliver
Accreditation Services (EGAC)
Industry
TBD
€ 1,300,000
01.09.08
31.08.10
Twinning
Awarded to UK 04.08
ONGOING
Building Capacity of the Egyptian Consumer
Protection Agency (ECPA)
Industry
TBD
TBD –
Q1/2010
TBD –
Q4/2012
Twinning
Building the Capacity of the EOS to Award
the “CE” Mark (EOS)
Industry
TBD
TBD –
Q2/2010
TBD –
Q1/2013
Twinning
Special Workshops on EU Acquis for Trade
in Services
Trade
TBD – NA
TBD
TBD
TAIEX
Source: Ministry of Trade and Industry
TBD: To Be Determined
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On the Other Hand,
The Mediterranean
 EU Trade with Mediterranean Partners in 2007 represents 1.6% of total EU trade
 The annual growth of total Mediterranean trade of goods with the EU during 2000-2007
represents 4%
 Trade in Services between Mediterranean Countries and EU represents 5% of the EU

total services trade.
EU investment flows into the Mediterranean region represents 2.3% of EU’s total FDI in
2005.
Egypt
 EU Trade with Egypt in 2007 represents 0.67% of total EU trade
 Trade in Services between Egypt and EU represents 1.2% of the EU total services trade.

Egypt ranked the 34th among the main Merchandise trading partners with the EU in 2007
There is room to enhance and deepen the relation
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V. What Is New?
Step Forward: EU-Med Roadmap up to 2010 and Beyond

During the 7th Euro-Med Trade Ministerial meeting held in Marseille on July
2008, the Euro-Med Ministers reiterated the importance of establishing a
Euro-Med Free Trade Area at the horizon of 2010.
 Trade Ministers instructed the Senior Officials Working Group (SWOG) to
work on finalizing a Euro-Med Trade Roadmap up to 2010 and beyond at the
2009 Trade Ministerial meeting.
 The main objectives of the Trade Roadmap are:
 Diversify and enhance trade,
 Encourage industrial integration
 Increase European investments in the Mediterranean countries.
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V. What Is New?
Step Forward: EU-Med Roadmap up to 2010 and Beyond
 EU Proposed Areas for Deep Integration (Convergence and
Approximation):
 Non Tariff Barriers (NTBs)
 Investment
 Trade facilitation
 Public Procurement (PP)
 Intellectual Property Rights (IPR)
 Competition policy
 Sustainable Development concerns
 Technical Barriers to Trade (TBT) - technical regulation on industrial products
 SPS
 Standards & Conformity Assessment - expand the ACAA process to areas which are
not covered by the ACAA
 Rules of Origin (ROO)
 Dispute Settlement Mechanism
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VI. Where Do You Fit?
 Investment
 Convergence
 Mutual Recognition
 Facilitating Accountants’ Movement
 Liberalizing Accounting Services
25
Thank you
26