Egyptian-Turkish trade agreement comes under fire
A member of the Egyptian parliament called for the need to reconsider the free trade agreement between Egypt and Turkey signed 15 years ago, claiming that it harms Egyptian interests and favors Turkish exporters.
CAIRO — In the presence of Egyptian Minister of Trade and Industry Nevin Gamea during a parliament session Feb. 2, Hafez Omran, a member of the parliamentary Industry Committee, called for the need to reconsider the free trade agreement between Egypt and Turkey, stating that such an agreement is to the detriment rather than in the interest of Egypt.
“Turkish goods enter Egypt as per the 'zero customs' agreement. Turkish exporters to Egypt are granted export subsidies from Turkey of about 19%, with the aim of exporting products to the Egyptian market at prices less than the manufacturing cost, which affects the Egyptian industry in terms of its competitiveness,” Omran said.
Turkey and Egypt signed the free trade agreement on Dec. 27, 2005, which entered into force on March 1, 2007. The agreement aimed at establishing a free trade area between the two countries within a period not exceeding 12 years from the entry into force.
According to the government-run State Information Service website, the agreement provided, among other items, for the increase and strengthening of economic cooperation between the two parties, removal of obstacles and restrictions on commodity trade, and consolidation of Turkish investors’ confidence in the Egyptian economy, which encourage them as well as Turkish businessmen to direct their investments toward Egypt. In addition, the agreement allows Egyptian goods to enter Turkey and European markets.
