Arab Republic of Egypt - Ministry of Trade and Industry Charles Julien Legal Counsel The Mediterranean and Globalisation: An Egyptian Perspective The Global.

Arab Republic of Egypt - Ministry of Trade and IndustryArab Republic of Egypt - Ministry of Trade and Industry

Charles JulienLegal Counsel

The Mediterranean and Globalisation:An Egyptian Perspective

The Global Market Revolution: The Impact of the World Trade Organization on Local Players

Naples, 24 November 2007


• The multilateral trading system – the WTO Agreements

▪ 151 MembersAll Euro-Mediterranean partners with the exception of Algeria, Lebanon, the Palestinian Authority and Syria

▪ Scope + Trade in goods+ Trade in services+ Trade-related aspects of intellectual property rights+ Integrated dispute settlement mechanism

▪ Regular re-negotiations: on-going Doha Development Agenda

1

Multilateral vs. regional trade agreements


• Most-favored nation (MFN) treatment: a founding principle of the multilateral trading system

WTO Members cannot discriminate between other WTO Members – equal treatment must be provided to all

2


• Regional trade agreements (RTAs): an exception to MFN treatment

▪ Parties to a RTA may remove or substantially reduce duties and trade barriers between themselves

▪ The establishment of a RTA should not impose additional restrictions on the Members not party to that RTA


• The “proliferation” of RTAs within the multilateral trading system

▪ 380 RTAs notified under the GATT/WTO250 RTAs in force

▪ Main characteristics+ Centerpiece of countries’ commercial policy + Increasing level of sophistication+ North-South RTAs gradually replace non-reciprocal

systems of preferences – South-South RTAs+ Expansion and integration of regional integration

3



• 37 trading partnersThe European Union and its 27 Member States; and 10 Mediterranean partners: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the Palestinian Authority, Syria, Tunisia and Turkey

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Economic and Trade Features of the Euro-Mediterranean (Euromed) Region

• 740 million citizens

• Growing trade relations▪ Mediterranean exports to the EU-27 have grown 10% yearly

over the period 2000-2006 (Egypt and Algeria: 17%)▪ EU exports to Mediterranean partners have grown 4% yearly▪ Relatively low integration: 5% of total EU-27 trade


• The Euro-Mediterranean Conference of Ministers of Foreign Affairs – Barcelona, 27-28/11/1995

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The Barcelona Declaration: the Foundation of the Euro-Mediterranean Partnership

• Objectives of the Euromed Partnership

▪ Political and security chapter: common area of peace through political and security dialogue

▪ Economic and financial chapter: economic and financial partnership and the establishment of a free trade

▪ Social, cultural and human chapter: exchanges between civil societies and better understanding of people

• A two-dimension process: bilateral and regional

Arab Republic of Egypt - Ministry of Trade and IndustryArab Republic of Egypt - Ministry of Trade and Industry 6

Bilateral Agreements within the Euromed Partnership

• Agreements between the EU and Mediterranean partners

▪ Cooperation agreements concluded in the 1970s

▪ Euromed Association Agreements – Main features:+ Establishment of a free-trade area by 2010+ Provisions relating to intellectual property,

services, public procurement and competition+ Economic cooperation+ Cooperation relating to social affairs and migration+ Cultural cooperation+ Political dialogue+ Respect for human rights and democracy



▪ The trade component of Euromed Association Agreements

+ Liberalization of the trade of manufactured goods- duty free access for imports of manufactured

goods from Mediterranean partners into the EU

- tariff dismantlement of tariffs for imports of manufactured goods from the EU into

Mediterranean partners into the EU

+ Asymmetric reciprocal preferences for agricultural products

+ Progressive liberalization of trade in services

+ Progressive liberalization of investment policies



• Agreements between the Egypt and Mediterranean partners

▪ Jordan – free-trade agreement - 21/12/1999

▪ Lebanon – executive program - 15/3/1999

▪ Morocco – free-trade agreement - 28/4/1999

▪ Syria – preferential trade agreement - 1/12/1991

▪ Tunisia – free-trade agreement - 26/4/2007

▪ Turkey – free-trade agreement - 1/3/2007


Regional Agreements within the Euromed Partnership

• The Agadir Agreement

▪ Concluded between Egypt, Morocco, Jordan and Tunisia on 22/2/2004

▪ Main features:+ Establishment of a free-trade – elimination of all tariff

and non-tariff barriers on industrial and agricultural products

+ Diagonal cumulation of origin

• The Arab Maghreb Union


Egypt and the Euromed Partnership EU

Agadir Agreement

Turkey

Syria

EFTA

Lebanon

JordanTunisia

Morocco Egypt

Maghreb Union

Libya

Algeria

MauritaniaUAE

Saudi Arabia

Qatar

Oman

Barhein

GCCIran

Iraq

GAFTA

Israel

Palestinian Authority


• Pan-Euromed system of cumulation of origin

▪ Harmonized rules of origin apply to the 40 Members of the Pan-Euromed system (Euromed partners + EFTA Members)▪ Allows economic operators to cumulate processing made in different Euromed partners and thus obtain preferential

treatment more easily

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Regional Integration within the Euromed Partnership

• Trade facilitation

▪ Actual cost of trade procedures: 5% of transactions▪ Action Plan on Trade and Investment Facilitation:

+ Simplification of customs procedures+ Accelerated customs clearance+ Use of the Harmonized System and international standards


• Convergence of legislation in the field of standards

▪ Identification of priority sectors▪ Approximation of EU rules and standards▪ EU-funded technical assistance and training programs –

Euromed Market and Euromed Quality

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Regional Integration within the Euromed Partnership

• Liberalization of services and investment – Core principles

▪ Compatibility with WTO rules▪ Regional integration▪ Development dimension


• Liberalization of services and establishment

▪ Bilateral negotiations▪ Transparency and regional cooperation▪ Expected to be concluded by 2010

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On-Going Negotiations within the Euromed Partnership: Towards a Euromed Free Trade Area

• Integrated dispute settlement mechanism

▪ Bilateral negotiations with regional consultations▪ Dispute settlement protocols to efficiently settle trade

disputes arising under the Association Agreements▪ Greatly inspired from the WTO Dispute Settlement

Understanding


• Deepening agriculture liberalization – The Rabat Euromed Roadmap for Agriculture

▪ Negotiations with Egypt, Israel and Morocco▪ Liberalization of agricultural, processed and fisheries

products

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On-Going Negotiations within the Euromed Partnership: Towards a Euromed Free Trade Area

• Regulatory convergence on industrial products

▪ Negotiations of an agreement on conformity assessment and accreditation

▪ Further implementation of EU legislation and standards


Future Steps towards a Euromed Free Trade Area

• The 6th Euromed Ministerial Conference – Lisbon, 21/10/2207

▪ Confirmation of the overall objective: establishment of a Euromed Free Trade Area by 2010

▪ Senior Officials Working Group to consider:+ Non-tariff barriers+ Intellectual property rights+ Competition+ Public procurement

▪ Important contributions of the business community – first meeting to take place in Egypt in early 2008


Towards Greater Regional Integration

• The European Neighborhood Policy (ENP)

▪ EU’s framework for its relations with Mediterranean and East European partners (Maghreb, Mashrek, Israel,

Ukraine and Moldova)

▪ Country-specific action plans

• The Greater Arab Free Trade Area (GAFTA)

▪ Participate to the establishment of a Common Arab Market

• Free trade agreement between Egypt and EFTA states

Arab Republic of Egypt - Ministry of Trade and Industry Charles Julien Legal Counsel The Mediterranean and Globalisation: An Egyptian Perspective The Global.

Documents

ministry of trade

trade slide

trade features

trade barriers

free trade social

freetrade area

freetrade elimination

tunisia freetrade agreement