European Union and Egypt strenghten their relations

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The Association Agreement between the European Union (EU) and the Arab Republic of Egypt enters into force today, opening a new era in their relationship. Following ratification by the two parties, all aspects of the Agreement - political, economic, and social - are now operational. The trade and trade related provisions of the Agreement entered into force provisionally on 1 January 2004. The Agreement will be instrumental in bringing Egyptian law more closely in line with EU legislation and promoting economic reform. It will also upgrade the current political dialogue with the objective of developing shared political values. This is the sixth Association Agreement to enter into force in the Mediterranean region, bringing one step closer the region-wide Free Trade Area which the Barcelona Process aims to create by 2010.

Chris Patten, Commissioner for External Relations said: "I am delighted that we are taking this significant step forward in our relationship with Egypt, which is a country of major importance in the region. This Agreement once again demonstrates that there need be no deep divide between Europe and the Arab world. We hold shared values and ambitions, and I look forward to working even more closely with Egypt to build peace and prosperity in the region and beyond."

EU Trade Commissioner Pascal Lamy added: "With the entry into force of the EU-Egypt Association Agreement we are a step closer to creating a large Euro-Mediterranean free trade area to the benefit of 700 million people. Opening up trade between all Mediterranean countries and with the EU has the potential to contribute to growth and development. I now look forward to working closely together with Egypt in the implementation of the agreement".

The Association Agreement between the EU and Egypt was signed on 25 June 2001 and replaces the 1977 Co-operation Agreement. Its main goal is to establish a free trade area between the EU and Egypt by 31 December 2015 at the latest but it also covers the strengthening of bilateral relations in many other fields such as transport, energy, telecommunications, research, and migration.

The Agreement is designed to promote political and economic reform in Egypt and to build a positive environment for the private sector by encouraging the dismantling of tariffs and economic deregulation.

Financial co-operation (grants) will accompany the implementation of the Association Agreement. During the period 2005-2006, Egypt will receive €243 millions, one of the largest financial allocations in the Euro-Mediterranean region.

Following the entry into force of the Agreement, the inaugural meeting of the Association Council at Ministerial level is scheduled for 14-15 June during the General Affairs and External Relations Council in Luxembourg. This will be followed by the first meeting of the Association Committee at technical level before the end of this year.

Background:

The Association Agreements form the legal basis of relations between the EU and the countries which take part in the Barcelona Process. Five partner countries already have an Agreement in force[1] the process of ratification of the Agreement is on-going for two countries (Algeria and Lebanon) and one country (Syria) has not yet concluded its negotiations.

The EU is Egypt largest trading partner representing 36% of its total trade. Main EU imports from Egypt include energy (42%), textiles and clothing (16%), agricultural products (10%) and chemical products 6%).


For further information on EU-Egypt relations:

The EU's relations with Egypt - Overview:

http://europa.eu.int/comm/external_relations/egypt/intro/index.htm

http://europa.eu.int/comm/trade/issues/bilateral/regions/euromed/index_en.htm


[1]Maroc, Tunisia, Israel, the Palestinian Authority and Jordan

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