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Association Agreement
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Association Agreement
Introduction
The EU/Egypt Association Agreement entered into
force on 1 June 2004, after ratification by the
Egyptian People’s Assembly, the European Union
and the European Union Member States. The
Association Agreement reflects the approach of
the Barcelona Process, as it contains provisions
with respect to the three pillars of the
Euro-Mediterranean partnership, namely political
dialogue, trade and economic integration, and
social and cultural co-operation. It is
concluded for an unlimited period. Its overall
objective is to establish the appropriate
framework for co-operation and partnership,
within the larger regional context and building
on the significant development assistance
co-operation between Egypt and the European
Union. As stated in article 2, relations between
the parties shall be based on the respect of
democratic principles and fundamental human
rights, which constitutes an essential element
of the Agreement.
Pillar One: Political Dialogue
A regular political dialogue and co-operation
will be established between the parties to
develop better mutual understanding and increase
convergence of positions on international
issues, enhance regional security and stability,
and promote common initiatives. It will cover
subjects of common interest, namely peace,
democracy and regional development. The
political dimension of the Association Agreement
is one of its essential factors, whose objective
is a full-fledged partnership beyond trade and
development assistance co-operation.
The political dialogue will take place at
regular intervals at ministerial level, as well
as among senior officials and through all
diplomatic channels. A political dialogue
between the European Parliament and the Egyptian
People’s Assembly will also take place.
Pillar Two: Trade & Economic Integration
1. Trade Provisions in the Association Agreement
The establishment of a Free Trade Area between
the EU and Egypt implies reciprocal tariff
liberalisation for industrial and agricultural
goods, a well as provisions concerning other
areas. In order to speed up the implementation
of the trade part of the Association Agreement,
an exchange of letters was signed between Egypt
and the EU, allowing trade provisions of the
Association Agreement to enter into force
already as from 1 January 2004.
Industrial Products:
A complete dismantling of customs duties and
other charges having equivalent effect for
Egyptian industrial products is in force from 1
January 2004. No quantitative restrictions shall
apply.
Gradual abolition of customs duties for European
industrial products according to a schedule of
up to 10 years for the total elimination of
customs duties for some European products:
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25% reduction each year for
raw materials and industrial equipment starting
from January 2004 to January 2007 (Annex II of
the Association Agreement).
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10% reduction first year and
15% reduction each successive year for
industrial supplies, semi-manufactured goods and
construction materials starting from January
2007 to January 2013 (Annex III of the
Association Agreement).
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5% reduction first and second
year and 15% reduction each successive year for
clothes, electrical domestic appliances,
cosmetics, furniture and motor vehicles for the
transport of goods, starting from January 2009
to January 2016 (Annex IV of the Association
Agreement).
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10% reduction each year for
motor vehicles designed for the transport of
persons, starting from January 2010 to January
2019 (Annex V of the Association Agreement).
For industrial products,
Egypt may take exceptional measures of limited
duration to increase or re-introduce customs
duties to protect new and infant industries or
sectors under restructuring or experiencing
serious difficulties, particularly where those
difficulties entail severe social problems.
Agricultural Products:
Egypt and the European Commission shall
progressively establish a greater liberalisation
of their trade in agricultural, fishers and
processed agricultural products of interest to
both parties. During the third year of
implementation of the Association Agreement,
both Parties shall examine the situation in
order to determine what further liberalisation
measures can be applied.
Egyptian agricultural products (processed or
not): For almost all products on the list, the
Association Agreement grants a 100% reduction of
customs duties, in many cases up to certain
tariff quota, in other cases free, such as
grapes, watermelons, asparagus, etc. (Annex to
Protocol 1and Annex II to Protocol 3).
European agricultural products: Reduction of
customs duties between 25% and 100% for a list
of products, in some cases within the limit of a
tariff quota, such as dairy products, seeds,
etc. (Annex to Protocol 2).
European processed agricultural products:
gradual reduction depending on the commodity
from January 2006 to January 2008 (Annex I to
Protocol 3).
2. Other Provisions
The Association Agreement also includes chapters
on the right of establishment and supply of
services, payments and capital movements,
provisions on competition rules, protection of
intellectual property rights, transparency of
public aid, liberalisation of public
procurement, provisions on state monopolies of
commercial character (Title III and IV of the
Association Agreement).
Economic co-operation should be intensified
between the parties in a number of sectors, such
as education and training, science and
technology, environment, industrial
co-operation, investment promotion,
standardisation and conformity assessment,
approximation of laws, financial services,
agriculture and fisheries, transport,
information society and telecoms, energy,
tourism, customs statistics, money laundering,
fight against drugs and terrorism, consumer
protection and regional co-operation (Title V of
the Association Agreement).
Pillar Three: Social and Cultural Co-Operation
Co-operation is also foreseen under the third
pillar of the Barcelona Process, i.e. social and
cultural co-operation. A dialogue on social
matters will take place, in particular on the
movement of workers, migration issues,
intercultural dialogue and social integration of
Egyptian and Community nationals legally
residing in the territories of their host
countries. Co-operation is envisaged for the
prevention and control of illegal immigration
and other consular issues, whereby EU Member
States and Egypt agree to negotiate and conclude
bilateral agreements with each other, regulating
specific obligations for the readmission of
their nationals. Co-operation is equally
envisaged on cultural matters, audio-visual,
media and information.
A major tool within the Barcelona Process for
intensifying the “dialogue between cultures”
will be the Euro-Mediterranean Foundation for
Dialogue among Cultures, which will be
established in Alexandria, Egypt.
Institutional Structure of the Association
Agreement
An Association Council is set up at Ministerial
level to provide the political guidance, make
the main policy decisions and settle disputes on
the implementation of the Agreement.
An Association Committee will be responsible for
the implementation of the Association Agreement.
It can take binding decisions for the management
of the Agreement by consensus between the
parties.
Sub-committees and Working groups can be set up
by the Council, if appropriate.
Co-operation and contacts can equally be
established between the European Parliament and
the Egyptian People’s Assembly.
The Association Agreement objective is to
establish an ambitious co-operation framework
for a long-term partnership between the European
Union and Egypt. It also has a role in
supporting and encouraging domestic reform.
Smooth implementation of trade and economic
liberalisation could engender bilateral and
regional economic integration conducive to more
foreign investment. The Association Agreement,
thus, holds a great promise for a new level of
binding ties between Egypt and Europe.
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