1. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade, except in so far as they alter the trade arrangements provided for in this Agreement.
2. Consultation between the Parties shall take place within the Association Council concerning agreements establishing customs unions or free trade areas and, where requested, on other major issues related to their respective trade policy with third countries. In particular, in the event of a third country acceding to the Union, such consultation shall take place so as to ensure that account can be taken of the mutual interests of the Parties.
Article 22.
If one of the Parties finds that dumping is taking place in trade with the other Party within the meaning of the provisions of Article VI of the GATT 1994, it may take appropriate measures against this practice in accordance with the WTO Agreement on the Implementation of Article VI of the GATT 1994 and related internal legislation.
Article 23.
Without prejudice to Article 34, the WTO Agreement on Subsidies and Countervailing Measures shall apply between the Parties. Until the necessary rules referred to in Article 34(2) are adopted, if either Party finds that subsidy is taking place in trade with the other party within the meanings of Articles VI and XVI of the GATT 1994, it may invoke appropriate measures against this practice in accordance with the WTO Agreement on Subsidies and Countervailing Measures and related internal legislation.
Article 24.
1. The provisions of the Article XIX GATT 1994 and the WTO Agreement on Safeguards shall apply between the Parties.
2. Before applying safeguard measures pursuant to the provisions of the Article XIX GATT 1994 and the WTO Agreement on Safeguards, the Party intending to apply such measures shall supply the Association Committee with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties.
In order to find such a solution, the Parties shall immediately hold consultations within the Association Committee. If, as a result of the consultations, the Parties do not reach an agreement within 30 days of the initiation of the consultations on a solution to avoid the application of the safeguard measures, the Party intending to apply safeguard measures may apply the provisions of the Article XIX GATT 1994 and the WTO Agreement on Safeguards.
3. In the selection of safeguard measures pursuant to this Article, the Parties shall give priority to those which cause least disturbance to the achievement of the objectives of this Agreement.
4. Safeguard measures shall be notified immediately to the Association Committee and shall be the subject of periodic consultations within the Committee, particularly with a view to their abolition as soon as circumstances permit.
Article 25.
1. Where compliance with the provisions of Article 17(3) leads to:
(i) re-export towards a third country against which the exporting Party maintains, for the product concerned, quantitative export restrictions, export duties, or measures having equivalent effect, or
(ii) a serious shortage, or threat thereof, of a product essential to the exporting Party;
and where the situations referred to above give rise, or are likely to give rise, to major difficulties for the exporting Party, that Party may take appropriate measures, according to the procedures laid down in paragraph 2.
2. The difficulties arising from the situations referred to in paragraph 1 shall be submitted for examination to the Association Committee. The Committee may take any decision needed to put an end to the difficulties. If it has not taken such a decision within 30 days of the matter being referred to it, the exporting Party may apply appropriate measures on the exportation of the product concerned. The measures shall be non-discriminatory and be eliminated when conditions no longer justify their maintenance.
Article 26.
Nothing in this Agreement shall preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security, of the protection of health and life of humans, animals or plants, of the protection of national treasures possessing artistic, historic or archaeological value, of the protection of intellectual property or of regulations concerning gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.
Article 27.
The concept of «originating products» for the application of the provisions of this Title and the methods of administrative cooperation relating to them are set out in Protocol 4.
Article 28.
The Combined Nomenclature of goods shall be applied to the classification of goods for imports into the Community. The Egyptian customs tariff shall be applied to the classification of goods for imports into Egypt.
Title III. RIGHT OF ESTABLISHMENT AND SUPPLY OF SERVICES
Article 29.
1. The Parties reaffirm their respective commitments under the terms of the General Agreement on Trade in Services (GATS) annexed to the Agreement establishing the WTO, and in particular the commitment to accord each other most-favoured-nation treatment in trade in service sectors covered by these commitments.
2. In accordance with the GATS, this treatment shall not apply to:
(a) advantages accorded by either Party under the provisions of an agreement as defined in Article V of the GATS or under measures adopted on the basis of such an agreement;
(b) other advantages accorded pursuant to the list of most-favoured-nation exemptions annexed by either Party to the GATS.
Article 30.
1. The Parties will consider extending the scope of the Agreement to include the right of establishment of companies of one Party in the territory of another Party and the liberalisation of the supply of services by companies of one Party to service consumers in another Party.
2. The Association Council shall make the necessary recommendations for the implementation of the objective set out in paragraph 1. When formulating these recommendations, the Association Council shall take into account the experience gained by the implementation of the MFN treatment granted to each other by the Parties in accordance with their respective obligations under the GATS, and in particular Article V thereof.
3. The objective set out in paragraph 1 of this Article shall be subject to a first examination by the Association Council at the latest five years after the entry into force of this Agreement.
Title IV. CAPITAL MOVEMENTS AND OTHER ECONOMIC MATTERS
Chapter 1. Payments and Capital Movements
Article 31.
Subject to the provisions of Article 33, the Parties undertake to authorise, in fully convertible currency, any payments to the current account.
Article 32.
1. The Community and Egypt will ensure, from the entry into force of the Agreement, the free circulation of capital for direct investments made in companies formed in accordance with the laws of the host country, and the liquidation or repatriation of these investments and of any profit stemming therefrom.
2. The Parties will hold consultations with a view to facilitating the movement of capital between the Community and Egypt and achieve its complete liberalisation as soon as conditions are met.
Article 33.
Where one or several Member States of the Community or Egypt face, or risk facing, serious difficulties concerning balance of payments, the Community or Egypt respectively may, in conformity with the conditions laid down within the framework of the GATT and Articles VIII and XIV of the Statutes of the International Monetary Fund, take restrictive measures with regard to current payments if such measures are strictly necessary. The Community or Egypt, as appropriate, shall inform the other Party immediately thereof and shall provide as soon as possible a timetable for the removal of such measures.
Chapter 2. Competition and other Economic Matters
Article 34.
1. The following are incompatible with the proper functioning of the Agreement, in so far as they may affect trade between the Community and Egypt:
(i) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;
(ii) abuse by one or more undertakings of a dominant position in the territories of the Community or Egypt as a whole or in a substantial part thereof;
(iii) any public aid which distorts, or threatens to distort, competition by favouring certain undertakings or the production of certain goods.
2. The Association Council shall, within five years of the entry into force of the Agreement, adopt by decision the necessary rules for the implementation of paragraph 1.
Until these rules are adopted, the provisions of Article 23 shall be applied as regards the implementation of paragraph 1(iii).
3. Each Party shall ensure transparency in the area of public aid, inter alia, by reporting annually to the other Party on the total amount and the distribution of the aid given and by providing, upon request, information on aid schemes. Upon request by one Party, the other Party shall provide information on particular individual cases of public aid.
4. With regard to agricultural products referred to in Title II, Chapter 2, paragraph 1(iii) does not apply. The WTO Agreement on Agriculture and the relevant provisions on WTO Agreement on Subsidies and Countervailing Duties shall apply with regard to these products.
5. If the Community or Egypt considers that a particular practice is incompatible with the terms of paragraph 1, and:
- is not adequately dealt with under the implementing rules referred to in paragraph 2, or
- in the absence of such rules, and if such practice causes, or threatens to cause, serious prejudice to the interest of the other Party or material injury to its domestic industry, including its services industry.
It may take appropriate measures after consultation within the Association Committee or after 30 working days following referral for such consultation.
With reference to practices incompatible with paragraph 1(iii), such appropriate measures, when the WTO rules are applicable to them, may only be adopted in accordance with the procedures and under the conditions laid down by the WTO or by any other relevant instrument negotiated under its auspices and applicable to the Parties.
6. Notwithstanding any provisions to the contrary adopted in conformity with paragraph 2, the Parties shall exchange information taking into account the limitations imposed by the requirements of professional and business secrecy.
Article 35.
The Member States and Egypt shall progressively adjust, without prejudice to their commitments to the GATT, any State monopolies of a commercial character, so as to ensure that, by the end of the fifth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and Egypt. The Association Committee will be informed of the measures adopted to implement this objective.
Article 36.
With regard to public enterprises and enterprises to which special or exclusive rights have been granted, the Association Council shall ensure that, as from the fifth year following the date of entry into force of this Agreement, there is neither enacted nor maintained any measure distorting trade between the Community and Egypt contrary to the Parties' interests. This provision should not obstruct the performance in law or in fact of the particular tasks assigned to these enterprises.
Article 37.
1. Pursuant to the provisions of this Article and of Annex VI, the Parties shall grant and ensure adequate and effective protection of intellectual property rights in accordance with the prevailing international standards, including effective means of enforcing such rights.
2. The implementation of this Article and of Annex VI shall be regularly reviewed by the Parties. If problems in the area of intellectual property affecting trading conditions were to occur, urgent consultations shall be undertaken, at the request of either Party, with a view to reaching mutually satisfactory solutions.
Article 38.
The Parties agree on the objective of a progressive liberalisation of public procurement. The Association Council will hold consultations on the implementation of this objective.
Title V. ECONOMIC COOPERATION
Article 39. Objectives
1. The Parties undertake to intensify economic cooperation in their mutual interest.
2. The aim of economic cooperation shall be to: encourage the implementation of the overall objectives of this Agreement, promote balanced economic relations between the Parties, support Egypt's own efforts to achieve sustainable economic and social development.
Article 40. Scope
1. Cooperation shall focus primarily on sectors suffering from internal difficulties or affected by the overall process of liberalisation of the Egyptian economy, and in particular by the liberalisation of trade between Egypt and the Community.
2. Similarly, cooperation shall focus on areas likely to bring the economies of the Community and Egypt closer together, particularly those which will generate growth and employment.
3. Cooperation shall encourage the implementation of measures designed to develop intra-regional cooperation.
4. Conservation of the environment and ecological balance shall be taken into account in the implementation of the various sectors of economic cooperation to which it is relevant.
5. The Parties may agree to extend the economic cooperation to other sectors not covered by the provisions of this Title.
Article 41. Methods and Modalities
Economic cooperation shall be implemented in particular by:
(a) a regular economic dialogue between the Parties, which covers all areas of macroeconomic policy;
(b) regular exchange of information and ideas in every sector of cooperation including meetings of officials and experts;
(c) transfer of advice, expertise and training;
(d) implementation of joint actions such as seminars and workshops;
(e) technical, administrative and regulatory assistance.
Article 42. Education and Training
The Parties shall cooperate with the objective of identifying and employing the most effective means to improve significantly education and vocational training, in particular with regard to public and private enterprises, trade-related services, public administrations and authorities, technical agencies, standardisation and certification bodies and other relevant organisations. In this context, the access of women to higher education and training will receive special attention.
Cooperation shall also encourage the establishment of links between specialised bodies in the Community and in Egypt and shall promote the exchange of information and experience and the pooling of technical resources.
Article 43. Scientific and Technological Cooperation
Cooperation shall have the objective of:
(a) encouraging the establishment of durable links between the scientific communities of the Parties, notably through:
- the access of Egypt to Community R & D programmes, in conformity with existing provisions concerning the participation of third countries,
- the participation of Egypt in networks of decentralised cooperation,
- the promotion of synergy between training and research;
(b) strengthening research capacity in Egypt;
(c) stimulating technological innovation, transfer of new technologies, and dissemination of know-how.
Article 44. Environment
1. Cooperation shall aim at preventing deterioration of the environment, controlling pollution and ensuring the rational use of natural resources, with a view to ensuring sustainable development.
2. Cooperation shall focus, in particular, on:
- desertification,
- quality of Mediterranean water and the control and prevention of marine pollution,
- water resource management,
- energy management,
- waste management,
- salinisation,
- environmental management of sensitive coastal areas,
- the impact of industrial development and the safety of industrial plant in particular,
- the impact of agriculture on soil and water quality,
- environmental education and awareness.
Article 45. Industrial Cooperation
Cooperation shall promote and encourage in particular:
- the debate regarding industrial policy and competitiveness in an open economy,
- industrial cooperation between economic operators in the Community and in Egypt, including access for Egypt to the Community's networks for the rapprochement of businesses and to networks created in the context of decentralised cooperation,
- modernisation and restructuring of Egyptian industry,
- the establishment of an environment favourable to the development of private enterprise, in order to stimulate the growth and the diversification of industrial production,
- technology transfer, innovation and R & D,
- the enhancement of human resources,
- access to the capital market for the financing of productive investments.
Article 46. Investments and Promotion of Investments
Cooperation shall aim at increasing the flow of capital, expertise and technology to Egypt through, inter alia:
- appropriate means of identifying investment opportunities and information channels on investment regulations,
- providing information on European investment regimes (such as technical assistance, direct financial support, fiscal incentives and investment insurance) related to outward investments and enhancing the possibility for Egypt to benefit from them,
- a legal environment conducive to investment between the two Parties, where appropriate through the conclusion by the Member States and Egypt of investment protection agreements, and agreements to prevent double taxation,
- examining the creation of joint ventures, especially for SMEs and, when appropriate, the conclusion of agreements between the Member States and Egypt,
- establishing mechanisms for encouraging and promoting investments.
Cooperation may extend to the planning and implementation of projects demonstrating the effective acquisition and use of basic technologies, the use of standards, the development of human resources and the creation of jobs locally.
Article 47. Standardisation and Conformity Assessment
The Parties shall aim to reduce differences in standardisation and conformity assessment. Cooperation in this field shall focus in particular on:
(a) rules in the field of standardisation, metrology, quality standards, and recognition of conformity, in particular as regards sanitary and phytosanitary standards for agricultural products and foodstuffs;
(b) upgrading the level of Egyptian conformity assessment bodies, with a view to the establishment, in due time, of mutual recognition agreements in the area of conformity assessment;
(c) developing structures for the protection of intellectual, industrial and commercial property rights, for standardisation and for setting quality standards.
Article 48. Approximation of Laws
The Parties shall use their best endeavours to approximate their respective laws in order to facilitate the implementation of this Agreement.
Article 49. Financial Services
The Parties shall cooperate with a view to the rapprochement of their standards and rules, in particular:
(a) to encourage the strengthening and restructuring of the financial sector in Egypt;
(b) to improve accounting and supervisory and regulatory systems of banking, insurance and other parts of the financial sector in Egypt.
Article 50. Agriculture and Fisheries
Cooperation shall be aimed at:
(a) the modernisation and restructuring of agriculture and fisheries, including: the modernisation of infrastructures and of equipment; the development of packaging, storage and marketing techniques; the improvement of private distribution channels;
(b) the diversification of production and of external outlets, inter alia, through the encouragement of joint ventures in the agri-business sector;
(c) the promotion of cooperation in veterinary and phytosanitary matters and in growing techniques, with the objective of facilitating trade between the Parties. In this regard, the Parties shall exchange information.
Article 51. Transport
Cooperation shall be aimed at:
- the restructuring and modernisation of road, port and airport infrastructures linked to the main trans-European lines of communication of common interest,
- the establishment and enforcement of operating standards comparable to those prevailing in the Community,
- the upgrading of technical equipment for road/rail transport, container traffic and transhipment,
- the improvement of management of airports, railways and air traffic control, including cooperation between the relevant national bodies,
- the improvement of navigation aids.