meepas - Egypt country profile: Economy and Politics



Egypt - Trade and Diplomatic relations with the EU

Political Relations

Egypt has enjoyed a close political relationship with a number of EU member states, especially the UK (Egypt is an ex-British colony), France and Germany. As an entity, the EU's relationship has been co-operative on a number of issues such as democracy, human rights, economic development as well as security.

Agreements

EU-Egypt Association Agreement

The political relationship between the EU and Egypt is strengthened by the EU-Egypt Association Agreement which was signed in Luxembourg on June 25 2001 and finally ratified and came into force on June 1 2004.

According to the text of the agreement, the agreement focuses on areas such as:

• Principles of the United Nations Charter, in particular the observance of human rights democratic principles and economic freedom

• The need to strengthen the political stability and economic development of the region by encouraging regional co-operation;

• The need to open a regular political dialogue in bilateral and international contexts on issues of common interest;

• The need to maintain a dialogue on scientific, technological, cultural, audio-visual and social matters to the benefit of both parties.

According to the terms of the agreement, the agreed points will be put into force through political dialogue at ministerial and senior official levels, and at Parliamentary level through contacts between the European Parliament and the Egyptian Parliamentary institutions.

This agreement also has provisions on the freedom of establishment and the liberalisation of services, capital, competition rules, and strengthening economic co-operation.

Trade Relations

According to the EU External Relations sources, collectively the EU countries are Egypt's biggest trading partner and currently accounts for 40% of Egyptian exports and 34% of its imports, with the balance of trade still in the EU's favour.

Furthermore trade between the EU and Egypt has risen by more than 5% in the last five years to reach around 10 billion euro in 2003. In terms of single country trading, Germany is the EU's biggest trading partner with Egypt. According to German government for the year 2003 Egypt was Germany's third most important trading partner in the Arab world, whilst at the same time German imports from Egypt also rose.

Egypt's exports to the EU for the year 2003 were: energy (38%), textiles and clothing (15%), agricultural products (9%), and chemicals. Tourists from the EU (especially Germany and Italy) constituted some of the largest tourist numbers in Egypt.

Egypt's imports from the EU were power generating machinery (21%), chemicals (18%), transport equipment (11%), and food and agricultural products (10%).

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