Title
Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part
Preamble
THE KINGDOM OF BELGIUM,
THE KINGDOM OF DENMARK,
THE FEDERAL REPUBLIC OF GERMANY,
THE HELLENIC REPUBLIC,
THE KINGDOM OF SPAIN,
THE FRENCH REPUBLIC,
IRELAND,
THE ITALIAN REPUBLIC,
THE GRAND DUCHY OF LUXEMBOURG,
THE KINGDOM OF THE NETHERLANDS,
THE AUSTRIAN REPUBLIC,
THE PORTUGUESE REPUBLIC,
THE FINNISH REPUBLIC,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties to the Treaty establishing the EUROPEAN COMMUNITY and the Treaty establishing the EUROPEAN COAL AND STEEL COMMUNITY, hereinafter referred to as the ‘Member States’, and
the EUROPEAN COMMUNITY, and the EUROPEAN COAL AND STEEL COMMUNITY, hereinafter referred to as ‘the Community’,
of the one part, and
THE ARAB REPUBLIC OF EGYPT, hereinafter referred to as ‘Egypt’,
of the other part,
CONSIDERING the importance of the existing traditional links between the Community, its Member States and Egypt, and the common values that they share,
CONSIDERING that the Community, its Member States and Egypt wish to strengthen those links and to establish lasting relations based on partnership and reciprocity,
CONSIDERING the importance which the Parties attach to the principles of the United Nations Charter, particularly the observance of human rights, democratic principles and political and economic freedoms which form the very basis of the Association,
DESIROUS of establishing and developing regular political dialogue on bilateral and international issues of mutual interest,
CONSIDERING the difference in economic and social development existing between Egypt and the Community and the need to strengthen the process of economic and social development in Egypt,
DESIROUS of enhancing their economic relations and, in particular, the development of trade, investment and technological cooperation, supported by a regular dialogue, on economic, scientific, technological, cultural, audiovisual and social matters with a view to improving mutual knowledge and understanding,
CONSIDERING the commitment of the Community and Egypt to free trade, and in particular to compliance with the rights and obligations arising out of the provisions of the General Agreement on Tariffs and Trade of 1994 and of the other multilateral agreements annexed to the agreement establishing the World Trade Organisation,
CONSCIOUS of the need to associate their efforts to strengthen political stability and economic development in the region through the encouragement of regional cooperation,
CONVINCED that the Association Agreement will create a new climate for their relations,
HAVE AGREED AS FOLLOWS:
Body
Article 1.
1. An Association is hereby established between the Community and its Member States of the one part and Egypt of the other part.
2. The aims of this Agreement are:
- to provide an appropriate framework for political dialogue, allowing the development of close political relations between the Parties,
- to establish conditions for the progressive liberalisation of trade in goods, services and capital,
- to foster the development of balanced economic and social relations between the Parties through dialogue and cooperation,
- to contribute to the economic and social development of Egypt,
- to encourage regional cooperation with a view to the consolidation of peaceful co-existence and economic and political stability,
- to promote cooperation in other areas which are of mutual interest.
Article 2.
Relations between the Parties, as well as all the provisions of the Agreement itself, shall be based on respect of democratic principles and fundamental human rights as set out in the Universal Declaration on Human Rights, which guides their internal and international policy and constitutes an essential element of this Agreement.
Title I. POLITICAL DIALOGUE
Article 3.
1. A regular political dialogue shall be established between the Parties. It shall strengthen their relations, contribute to the development of a lasting partnership and increase mutual understanding and solidarity.
2. The political dialogue and cooperation shall aim, in particular, to:
- develop better mutual understanding and an increasing convergence of positions on international issues, and in particular on those issues likely to have substantial effects on one or the other Party,
- enable each Party to consider the position and interests of the other,
- enhance regional security and stability,
- promote common initiatives.
Article 4.
The political dialogue shall cover all subjects of common interest, and, in particular peace, security, democracy and regional development.
Article 5.
1. The political dialogue shall take place at regular intervals and whenever necessary, in particular:
(a) at ministerial level, mainly in the framework of the Association Council;
(b) at senior official level of Egypt of the one part, and of the Presidency of the Council and of the Commission of the other;
(c) by taking full advantage of all diplomatic channels including regular briefings by officials, consultations on the occasion of international meetings and contacts between diplomatic representatives in third countries;
(d) by any other means which would make a useful contribution to consolidating, developing and stepping up this dialogue.
2. There shall be a political dialogue between the European Parliament and the Egyptian People's Assembly.
Title II. FREE MOVEMENT OF GOODS BASIC PRINCIPLES
Article 6.
The Community and Egypt shall gradually establish a free trade area over a transitional period not exceeding 12 years from the entry into force of this Agreement, according to the modalities set out in this Title and in conformity with the provisions of the General Agreement on Tariffs and Trade of 1994 and of the other multilateral agreements on trade in goods annexed to the Agreement establishing the World Trade Organisation (WTO), hereinafter referred to as the GATT.
Chapter 1. Industrial Products
Article 7.
The provisions of this Chapter shall apply to products originating in the Community and Egypt falling within Chapters 25 to 97 of the Combined Nomenclature and of the Egyptian Customs tariff with the exception of the products listed in Annex I.
Article 8.
Imports into the Community of products originating in Egypt shall be allowed free of customs duties and of any other charge having equivalent effect and free of quantitative restrictions and of any other restriction having equivalent effect.
Article 9.
1. Customs duties and charges having equivalent effect applicable on import into Egypt of products originating in the Community listed in Annex II shall be gradually abolished in accordance with the following schedule:
- on the date of entry into force of this Agreement each duty and charge shall be reduced to 75 % of the basic duty,
- one year after the date of entry into force of this Agreement each duty and charge shall be reduced to 50 % of the basic duty,
- two years after the date of entry into force of this Agreement each duty and charge shall be reduced to 25 % of the basic duty,
- three years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished.
2. Customs duties and charges having equivalent effect applicable on import into Egypt of the products originating in the Community listed in Annex III shall be gradually abolished in accordance with the following schedule:
- three years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90 % of the basic duty,
- four years after the date of entry into force of this Agreement each duty and charge shall be reduced to 75 % of the basic duty,
- five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty,
- six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 45 % of the basic duty,
- seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30 % of the basic duty,
- eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 15 % of the basic duty,
- nine years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished.
3. Customs duties and charges having equivalent effect applicable on import into Egypt of the products originating in the Community listed in Annex IV shall be gradually abolished in accordance with the following schedule:
- five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 95 % of the basic duty,
- six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90 % of the basic duty,
- seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 75 % of the basic duty,
- eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty,
- nine years after the date of entry into force of this Agreement each duty and charge shall be reduced to 45 % of the basic duty,
- 10 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30 % of the basic duty,
- 11 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 15 % of the basic duty,
- 12 years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished.
4. Customs duties and charges having equivalent effect applicable on import into Egypt of the products originating in the Community listed in Annex V shall be gradually abolished in accordance with the following schedule:
- six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90 % of the basic duty,
- seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 80 % of the basic duty,
- eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 70 % of the basic duty,
- nine years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty,
- 10 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 50 % of the basic duty,
- 11 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 40 % of the basic duty,
- 12 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30 % of the basic duty,
- 13 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 20 % of the basic duty,
- 14 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 10 % of the basic duty,
- 15 years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished.
5. Customs duties and charges having equivalent effect applicable to imports into Egypt of products originating in the Community, other than those in Annexes II, III, IV and V shall be abolished in accordance with the relevant schedule on the basis of a decision of the Association Committee.
6. In the event of serious difficulties for a given product, the relevant timetables in accordance with paragraphs 1, 2, 3 and 4 may be reviewed by the Association Committee by common accord on the understanding that the schedule for which the review has been requested may not be extended in respect of the product concerned beyond the maximum transitional period. If the Association Committee has not taken a decision within 30 days of its application to review the timetable, Egypt may suspend the timetable provisionally for a period that may not exceed one year.
7. For each product concerned, the basic duty to be gradually reduced as provided for in paragraphs 1, 2, 3 and 4 shall be the rates referred to in Article 18.
Article 10.
The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.
Article 11.
1. By way of derogation from the provisions of Article 9, Egypt may take exceptional measures of limited duration to increase or re-introduce customs duties.
2. Such measures may only apply to new and infant industries or to sectors undergoing restructuring or experiencing serious difficulties, particularly where those difficulties entail severe social problems.
3. Customs duties on import into Egypt of products originating in the Community that are introduced by such exceptional measures may not exceed 25 % ad valorem, and must retain a preferential margin for products originating in the Community. The total value of imports of the products subjected to such measures may not exceed 20 % of total imports of industrial products from the Community during the last year for which statistics are available.
4. Such measures shall be applied for no longer than five years, except where a longer duration is authorised by the Association Committee. They shall cease to apply at the latest on expiry of the maximum transitional period.
5. Such measures may not be introduced for a given product if more than three years have elapsed since the abolition of all duties, quantitative restrictions and charges and measures having equivalent effect on the product concerned.
6. Egypt shall inform the Association Committee of any exceptional measures it intends to adopt and, at the Community's request, consultations shall be held on the measures and sectors concerned before they are implemented. When adopting such measures, Egypt shall provide the Committee with a schedule for the abolition of the customs duties introduced pursuant to this Article. Such schedule shall provide for the phasing out of the duties concerned by equal annual instalments, starting no later than the end of the second year following their introduction. The Association Committee may decide on a different schedule.
7. By way of derogation from the provisions of paragraph 4, the Association Committee may exceptionally, in order to take into account the difficulties involved in setting up new industries, endorse the measures already taken by Egypt pursuant to paragraph 1 for a maximum period of four years beyond the 12 years transitional period.
Chapter 2. Agricultural, Fisheries and Processed Agricultural Products
Article 12.
The provisions of this Chapter shall apply to products originating in the Community and Egypt falling within Chapters 1 to 24 of the Combined Nomenclature and of the Egyptian Customs tariff and to the products listed in Annex I.
Article 13.
The Community and Egypt shall progressively establish a greater liberalisation of their trade in agricultural, fisheries and processed agricultural products of interest to both parties.
Article 14.
1. Agricultural products originating in Egypt listed in Protocol 1 on importation into the Community shall be subject to the arrangements set out in that Protocol.
2. Agricultural products originating in the Community listed in Protocol 2 on importation into Egypt shall be subject to the arrangements set out in that Protocol.
3. Trade for processed agricultural products falling under this chapter shall be subject to the arrangements set out in Protocol 3.
Article 15.
1. During the third year of implementation of the Agreement, the Community and Egypt shall examine the situation in order to determine the measures to be applied by the Community and Egypt from the beginning of the fourth year after the entry into force of the Agreement, in accordance with the objective set out in Article 13.
2. Without prejudice to the provisions of paragraph 1 and taking account of the volume of trade in agricultural, fisheries and processed agricultural products between them and of their particular sensitivity, the Community and Egypt shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the possibility of granting each other further concessions.
Article 16.
1. In the event of specific rules being introduced as a result of the implementation of its agricultural policy or of any alteration of the current rules or in the event of any alteration or extension of the provisions relating to the implementation of its agricultural policy, the Party concerned may amend the arrangements resulting from the Agreement in respect of the products concerned.
2. In such cases, the Party concerned shall inform the Association Committee. At the request of the other Party, the Association Committee shall meet to take due account of the interests of the other Party.
3. If the Community or Egypt, in applying paragraph 1, modifies the arrangements made by this Agreement for agricultural products, they shall accord imports originating in the other Party an advantage comparable to that provided for in this Agreement.
4. The application of this Article should be the subject of consultations in the Association Council.
Chapter 3. Common Provisions
Article 17.
1. No new quantitative restrictions on imports or any other restriction having equivalent effect shall be introduced in trade between the Community and Egypt.
2. Quantitative restrictions on imports and any other restriction having equivalent effect in trade between the Community and Egypt shall be abolished from the entry into force of this Agreement.
3. The Community and Egypt shall not apply to exports between themselves either customs duties or charges having equivalent effect, or quantitative restrictions or measures having equivalent effect.
Article 18.
1. The applicable rates for imports between the Parties shall be the WTO bound rate or lower applied rate enforced as of 1 January 1999 . If, after 1 January 1999 , a tariff reduction is applied on an erga omnes basis, the reduced rate shall apply.
2. No new customs duties on imports or exports, or charges having equivalent effect, shall be introduced, nor shall those already applied be increased, in trade between the Community and Egypt, unless this Agreement provides otherwise.
3. The Parties shall communicate to each other their respective applied rates on 1 January 1999 .
Article 19.
1. Products originating in Egypt shall not, on importation into the Community, be accorded a treatment more favourable than that which the Member States apply among themselves.
2. Application of the provisions of this Agreement shall be without prejudice to the special provisions for the application of the Community law to the Canary Islands.
Article 20.
1. The Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Party and like products originating in the territory of the other Party.
2. Products exported to the territory of one of the Parties may not benefit from repayment of indirect internal taxation in excess of the amount of indirect taxation imposed on them either directly or indirectly.