EU-EGYPT ASSOCIATION AGREEMENT
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Transcript EU-EGYPT ASSOCIATION AGREEMENT
THE EU - EGYPT ASSOCIATION
AGREEMENT AND
AGRICULTURAL PRODUCTS
17/07/2015
EU Commission Delegation Cairo
www.eu-delegation.org.eg
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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.
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EU Commission Delegation Cairo
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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
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EU Commission Delegation Cairo
www.eu-delegation.org.eg
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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....)
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EU Commission Delegation Cairo
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EU-Domestic Support
35
30
25
20
Market Measures
Area/Animal Payments
Single Farm Payment
15
10
5
0
1993
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2000
2008
EU Commission Delegation Cairo
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US-Domestic Support
30
25
billion US dollars
20
15
10
5
0
1996
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1997
1998
1999
2000e
Market Price Support
Loan Program Support
Other Product Support
Insurance subsidies
Disaster payments
Market Loss Assistance
Non-product support
AMS ceiling
EU Commission Delegation Cairo
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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
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EU Commission Delegation Cairo
www.eu-delegation.org.eg
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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
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EU Commission Delegation Cairo
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Overall Objective of the AA
Establish an appropriate framework for cooperation 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…)
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EU Commission Delegation Cairo
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Core of the AA =
Establishment of an FTA
between Egypt and the EU
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EU Commission Delegation Cairo
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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
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EU Commission Delegation Cairo
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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
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EU Commission Delegation Cairo
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LOWER TARIFF
RATES
INCREASED QUOTAS
FOR CERTAIN
PRODUCTS
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EU Commission Delegation Cairo
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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
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EU Commission Delegation Cairo
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In Practice
Examples (Egyptian agricultural products):
Product
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)
100%
130,000
60%
Pears
100%
500
-
Tomatoes (1/11 to 31/03)
100%
Free quota
100%
Watermelons (1/02 to 30/04)
100%
Free quota
100%
Carrots (1/01 to 30/04)
100%
500
-
Sweet Potatoes
100%
3,000
-
Grapefruit (1/02 to 14/07)
100%
Free quota
100%
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EU Commission Delegation Cairo
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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…
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EU Commission Delegation Cairo
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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
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EU Commission Delegation Cairo
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In Practice
Examples (EU agricultural products)
Product
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)
25%
500
Cherries
25%
500
Soya beans
100%
Free Quota
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EU Commission Delegation Cairo
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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)
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EU Commission Delegation Cairo
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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)
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EU Commission Delegation Cairo
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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
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EU Commission Delegation Cairo
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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: [email protected]
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
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EU Commission Delegation Cairo
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BUT:
Are existing Export opportunities to the EU
really used by Egypt?
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EU Commission Delegation Cairo
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Export opportunities used?
Are AA quotas really filled ?
Cabbage, cauliflower (0%), carrots (13%), lettuce(21%),
melons (23%), cut flowers (24%), garlic (64%),...
Fish
Potatoes
...
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EU Commission Delegation Cairo
www.eu-delegation.org.eg
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THE EU - EGYPT ASSOCIATION
AGREEMENT AND
AGRICULTURAL PRODUCTS
17/07/2015
EU Commission Delegation Cairo
www.eu-delegation.org.eg
25