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European Union and Egypt strengthen their relations
The Association Agreement between the European Union (EU)
and the Arab Republic of Egypt enters into force today,
opening a new era in their relationship. Following
ratification by the two parties, all aspects of the
Agreement – political, economic, and social - are now
operational. The trade and trade related provisions of the
Agreement entered into force provisionally on 1 January
2004. The Agreement will be instrumental in bringing
Egyptian law more closely in line with EU legislation and
promoting economic reform.
It will also upgrade the current political dialogue with the
objective of developing shared political values. This is the
sixth Association Agreement to enter into force in the
Mediterranean region, bringing one step closer the
region-wide Free Trade Area which the Barcelona Process aims
to create by 2010.
Chris Patten, Commissioner for External Relations said: “I
am delighted that we are taking this significant step
forward in our relationship with Egypt, which is a country
of major importance in the region. This Agreement once again
demonstrates that there need be no deep divide between
Europe and the Arab world. We hold shared values and
ambitions, and I look forward to working even more closely
with Egypt to build peace and prosperity in the region and
beyond.”
EU Trade Commissioner Pascal Lamy added:”With the entry into
force of the EU-Egypt Association Agreement we are a step
closer to creating a large Euro-Mediterranean free trade
area to the benefit of 700 million people. Opening up trade
between all Mediterranean countries and with the EU has the
potential to contribute to growth and development. I now
look forward to working closely together with Egypt in the
implementation of the agreement”
The Association Agreement between the EU and Egypt was
signed on 25 June 2001 and replaces the 1977 Co-operation
Agreement. Its main goal is to establish a free trade area
between the EU and Egypt by 31 December 2015 at the latest
but it also covers the strengthening of bilateral relations
in many other fields such as transport, energy,
telecommunications, research, and migration.
The Agreement is designed to promote political and economic
reform in Egypt and to build a positive environment for the
private sector by encouraging the dismantling of tariffs and
economic deregulation.
Financial co-operation (grants) will accompany the
implementation of the Association Agreement. During the
period 2005-2006, Egypt will receive €243 millions, one of
the largest financial allocations in the Euro-Mediterranean
region.
Following the entry into force of the Agreement, the
inaugural meeting of the Association Council at Ministerial
level is scheduled for 14-15 June during the General Affairs
and External Relations Council in Luxembourg. This will be
followed by the first meeting of the Association Committee
at technical level before the end of this year.
Background:
The Association Agreements form the legal basis of relations
between the EU and the countries which take part in the
Barcelona Process. Five partner countries already have an
Agreement in force[1] the process of ratification of the
Agreement is on-going for two countries (Algeria and
Lebanon) and one country (Syria) has not yet concluded its
negotiations.
The EU is Egypt largest trading partner representing 36% of
its total trade. Main EU imports from Egypt include energy
(42%), textiles and clothing (16%), agricultural products
(10%) and chemical products 6%).
For further information on EU-Egypt relations:
The EU's relations with Egypt - Overview:
http://europa.eu.int/comm/external_relations/egypt/intro/index.htm
http://europa.eu.int/comm/trade/issues/bilateral/regions/euromed/index_en.htm
[1] Tunisia, Israel, the Palestinian Authority and Jordan
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