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Egypt

Egypt

The EU-Egypt Association Agreement is in force since 2004. It creates a free-trade area between the EU and Egypt by removing tariffs on industrial products and making agricultural products easier to trade.

Another agreement on agricultural, processed agricultural and fisheries products entered into force on 1 June 2010.

The EU and Egypt began talks about a Deep and Comprehensive Free Trade Agreement in June 2013. Negotiations on trade in services are currently on hold.

Trade picture

  • The Association Agreement improved trade conditions between the EU and Egypt. EU-Egypt trade has more than doubled from €11.8 billion in 2004 to €27.3 billion in 2016.
  • The EU is both Egypt's biggest import and export partner, covering 31.3% of Egypt's trade volume in 2016.
  • The EU's main imports of goods from Egypt in 2016 are fuel and mining products (€2.9 billion), chemicals (€0.8 billion) and textiles and clothing (€0.8 billion).
  • The EU's main exports to Egypt are machinery and transport equipment (€7.8 billion), chemicals (€3.2 billion), fuels and mining products (€2.6 billion) and agricultural products (€2.4 billion).
  • The EU's main service exports to Egypt are business services, while EU imports from Egypt consist mainly of travel services and transport.
  • In 2015 the EU exported €4.8 billion of services to Egypt, and imported €5.2 billion services from Egypt.

EU-Egypt: Trade in goods

Trade in goods 2014-2016, € billions
Year EU imports EU exports Balance
2014 8.6 16.9 8.3
2015 7.3 20.4 13.1
2016 6.7 20.6 14.0

EU-Egypt: Trade in services

Trade in services 2013-2015, € billions
Year EU imports EU exports Balance
2013 4.9 3.3 -1.6
2014 4.6 3.5 -1.1
2015 5.2 4.8 -0.3

EU-Egypt: Foreign direct investment

Foreign direct investment 2015, € billions
Year Inward stocks Outward stocks Balance
2015 0.1 41.5 41.4

Date of retrieval: 15/02/2017

More statistics on Egypt

EU and Egypt

Growing trade

In June 2013 the EU and Egypt began discussing how to deepen their trade and investment relations through a Deep and Comprehensive Free Trade Agreement (DCFTA).

A future DCFTA would aim to improve market access and the investment climate. It would also support Egyptian economic reforms.

It would extend beyond the Association Agreement to include trade in services, government procurement, competition, intellectual property rights, and investment protection.

The EU commissioned a Sustainability Impact Assessment (SIA) for a possible DCFTA with Egypt in 2014.

From January 2014, due to its Association Agreement with the EU, Egypt stopped benefitting from preferential access to the EU market under the Generalised Scheme of Preferences (GSP).

Financial support

The European Neighbourhood Policy provides political and financial assistance to Egypt.

In November 2010, the EU and Egypt signed a protocol creating a dispute settlement mechanism that applies to the trade parts of the association agreement. Egypt has not yet ratified the protocol.

As a response to the events across the Arab world in 2011, the EU has identified ways to develop and deepen our trade and investment relations with Southern Mediterranean partners:

Egypt in Euromed

Egypt is one of the partners of the Euro-Mediterranean Partnership (Euromed).

Euromed is an initiative of the European Neighbourhood Policy whereby the EU offers its neighbours a privileged relationship by building upon a commitment to common values (including democracy and human rights, rule of law, good governance, market economy principles and sustainable development).

In 2004, Egypt signed the Agadir Agreement with Jordan, Morocco, and Tunisia. This agreement removes all trade tariffs between them and harmonises their rules on product standards and customs.

The pan-Euro-Mediterranean cumulation and the PEM Convention on rules of origin

The pan-Euro-Mediterranean cumulation system of origin brings together the EU, Egypt, and other Mediterranean countries to support integration to create a common system of rules of origin.

The system was originally based on a network of free trade agreements having individual origin protocols. Individual origin protocols are being replaced by a reference to the regional convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention), which was established in 2011 to provide a more unified framework for origin protocols.

Egypt joined the regional convention in October 2013.

More information on Mediterranean preferential Rules of Origin

Trading with Egypt