وزارة التجارة والصناعة ministry of trade and industry dr. mona el garf associate...
TRANSCRIPT
والصناعة التجارة وزارةMinistry of Trade and Industry
Dr. Mona El GarfAssociate Professor, Faculty of Economics and
Political Science, Cairo UniversityLead Economist, Minister’s Technical Office
Regional Integration and Regional Integration and Development: A Possible Development: A Possible
Framework for the Framework for the Mediterranean RegionMediterranean Region
العربية مصر جمهوريةوالصناعة التجارة وزارة
Ministry of Trade and Industry
Paris 28th of November 2008
FCM Conference on “Integration and Development in the Mediterranean Region: the
Role of the Accountancy Profession”
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I. Facts
II. Why Deepening the Euro-Mediterranean Relation is Important?
III. What is the Framework of Mediterranean – EU Relationship?
IV. What are the Implications of Egypt-EU Economic Relations in Figures?
V. What’s New?
VI. Where You Can Fit?
Main Points
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I. Facts
Egypt and EU have long standing relationship.
Egypt believes that there remains room for
deepening existing relations.
The government cannot act alone. Other
stakeholders should be strongly involved.
Hence, launching the FCM Conference
reinforces this vision.
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II. Why Deepening Euro-Mediterranean Relation is Important? It is a Win – Win Situation
The Mediterranean frontier poses enormous
demographic and geostrategic advantages.
This region has the potential to act as a nexus of cultural
dialouge between the East and the West.
Europe's security and prosperity can only be assured if
the countries bordering the Mediterranean also enjoy
security and prosperity.
A healthy and prosperous Mediterranean will reinforce
the position of Europe in the world.
From the European Side
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1. Importance of the EU on the global Market (27 members)
28% of the world GDP;
40% of the world merchandise and services trade;
51% out of the world foreign direct investment outflows during
2006;
Ranks 2nd after ASEAN bloc in terms of the population, with 7% out
of the world population;
Different free trade agreements between the EU and other countries
and blocs, 26 of these agreements have entered into force
2. More than 50% of the Mediterranean countries’ trade is with
the EU, 70% of the exports of some Mediterranean countries
are directed to the EU.
From the Mediterranean Side
II. Why Deepening Euro-Mediterranean Relation is Important? It is a Win – Win Situation
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III. What is the Framework of the Mediterranean – EU Relationship? Egypt Case (From Shallow to Deep Integration)
1. Cooperation Agreement 1977
2. Barcelona Process 1995
Association Agreement: entered into force 2004
European Neighborhood Policy: March 6th 2007,
adopting Egypt-EU Action Plan
Union for the Mediterranean 2008
2007ENP
2008Union For
Mediterranean
1977Cooperation Agreement
1995Barcelona
Process
2004Association Agreement
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1. Cooperation Agreement (1977-2004) Economic co-operation between the parties;
Non-reciprocal trade liberalisation and market access for industrial goods.
Partial preferential treatment for some specific agricultural exports.
Four financial Protocols (EC funding for programmes and projects in
Egypt - 661 million euros).
2. Barcelona Process (1995) Objective: creating an area of dialogue, exchange and co-operation
guaranteeing peace, stability and prosperity. Two instruments:
Bilateral level (the Association Agreement); Regional level (the Euro-Mediterranean conferences at the Ministerial
Level).
III. What is the Framework of the Mediterranean – EU Relationship? Egypt Case (From Shallow to Deep Integration)
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Association Agreement - AA (2004 - present) Objective: establishing a Free Trade Area for industrial
goods in 12 years with some exceptions. January 2004, the Trade Component entered into force June 2004, Social, Political and Security components
entered into force.
Liberalization of Trade in Services and
Right of Establishment
July 2003, the Istanbul protocol paved the way
towards the liberalization of trade in services.
March 2006, Regional Euro-Med negotiations
launched.
In 2008, Bilateral negotiations launched
between the EU and Egypt, Morocco and Tunisia
as well.
The AA has three main pillars: the
Political and Security pillar; the Economic and Financial pillar and the Social and
Cultural pillar.
Why Liberalizing the Services Sector with the
EU? • Built in agenda in AA,
article 30,
• Goal of the Barcelona
Process,
• Istanbul & Marrakech
Ministerial
Declaration,
• ENP Action Plan,
• Egypt’s National Strategy
III. What is the Framework of the Mediterranean – EU Relationship? Egypt Case (From Shallow to Deep Integration)
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Euro-Mediterranean Road Map for Agriculture In 2004, the Roadmap for liberalizing trade in agriculture, processed agriculture and fishery products
was formulated. In 2008, Egypt-EU finalized their agreement to fully liberalize agricultural products, with very short list
of sensitive products.
Dispute Settlement Mechanism (DSM) Since 2006, negotiations was launched on the establishment of a
DSM.
European Neighborhood Policy (ENP) In 2004, the ENP is based on sharing common values
such as democracy and human rights, rule of law, good governance, market economy principles and sustainable development.
The ENP compliments the Barcelona Process (free trade Euro-Med area by 2010).
On March 6th, 2007, Egypt adopted the Action Plan which reflects Egypt’s reform agenda during the period 2007-2010.
ENP MembersThe ENP covers 16 countries; the 10
Mediterranean countries Algeria,
Egypt, Israel, Jordan, Lebanon, Libya,
Morocco, the Palestinian Authority, Syria and Tunisia. In addition to Armenia, Azerbaijan, Belarus,
Georgia, Moldova and Ukraine.
III. What is the Framework of the Mediterranean – EU Relationship? Egypt Case (From Shallow to Deep Integration)
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However………… It is no secret that the European Union’s
policies toward the Mediterranean basin are not dynamic enough to instigate development.
The Barcelona process did not achieve expected results in addition that the private sector and the region’s populace were not engaged in it.
Problematic areas of cooperation such as immigration, energy, security and political stability were not properly addressed.
Mediterranean countries expect more constructive cooperation from EU.
Calls for other alternatives or Calls for other alternatives or strategies soon emerged from within strategies soon emerged from within
Europe ItselfEurope Itself
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Launched by Nicolas Sarkozy during his Presidential campaign in
2007.
On 3 March 2008: Franco-German agreement paved the way for
the European agreement on the Union for the Mediterranean.
On the 13/14 March 2008: The European Council approved the
principle of a Union for the Mediterranean and invited the
Commission to present proposals defining the modalities of what will
be called “Barcelona Process: Union for the Mediterranean.
On July 13 2008 (Paris Summit for the Mediterranean – Heads
of State): The first summit took place in Paris under the co-
presidency of The President of France AND The President of Egypt.
Barcelona Process: The Union for the Mediterranean
III. What is the Framework of the Mediterranean – EU Relationship? Egypt Case (From Shallow to Deep Integration)
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Barcelona Process: Union for the Mediterranean as agreed upon in the 10th Euro-Med Ministerial Conference of Ministers of Foreign Affairs (Marseilles 3-4 Nov.)
Objective: build on and reinforce the successful elements of the existing Barcelona Process based on the following:
Enhance multilateral relations, Increase co-ownership of the process, Set governance on the basis of equal footing and translate it into
concrete projects, more visible to citizens.
Members: 27 Member States of the European Union,
10 Mediterranean countries which are members of the Barcelona Process
Other six countries bordering the Mediterranean (Albania, Croatia, Bosnia and Herzegovina, Montenegro, Monaco and Turkey).
III. What is the Framework of the Mediterranean – EU Relationship? Egypt Case (From Shallow to Deep Integration)
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Co-Presidency 2 directors (one from EU and one
from the Med. countries).
Apply to Summits, all Ministerial meetings, Senior Officials meetings, the Joint Permanent Committee.
Biennial summits of Heads of Government will be held. The 1st summit took place in Paris on 13 July 2008.
Barcelona Process: Union for the Mediterranean (Cont’d)
Institutional Framework
1. Joint Secretariat (Barcelona)
2. Joint Permanent Committee (Brussels)
3. Senior Officials
Ministers reached a unanimous agreement on the Ministers reached a unanimous agreement on the participation of the Arab Leagueparticipation of the Arab League at all the meetings and at all the meetings and at all levels of the Union for the Mediterraneanat all levels of the Union for the Mediterranean..
III. What is the Framework of the Mediterranean – EU Relationship? Egypt Case (From Shallow to Deep Integration)
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Projects: The Summit on 13 July 2008 has identified 6 areas for cooperation:
De-pollution of the Mediterranean; 2. Maritime and Land Highways; 3. Civil Protection, 4. Alternative Energies - Mediterranean Solar Energy Plan;
5. Higher Education and Research; 6. The Mediterranean Business Development Initiative;
Funding Funding for regional projects and activities should come mainly from the EU and
its Member States; private sector; contributions from Mediterranean partners; International financial institutions; regional banks; FEMIP; ENPI
III. What is the Framework of the Mediterranean – EU Relationship? Egypt Case (From Shallow to Deep Integration)
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Agreed Upon Issues in the Agreed Upon Issues in the Conference of the Conference of the Ministers for IndustryMinisters for Industry of the Barcelona Process: of the Barcelona Process: Union for the Mediterranean Union for the Mediterranean (Nice, 5 and 6 November 2008)“Ministers welcomed the initiative of the Egyptian and French co-Presidents and the
European Investment Bank to convene a high level meeting of Arab, European and
Mediterranean financial institutions in Cairo in January 2009 to discuss ways and means to
ensure the availability of funds for the UpM projects, notably in the field of energy
preservation, solar energy, transportation, vocational training, as well as promoting SMEs.”
III. What is the Framework of the Mediterranean – EU Relationship? Egypt Case (From Shallow to Deep Integration)
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IV. What are the Implications of Egypt-EU Economic Relations in Figures?
The Importance of EU to Egypt in 2007/08
EU is considered Egypt’s main trading partner, constituting 33.7 % of Egypt’s total trade volume.
EU is a main source for Egypt’s FDI inflows reaching 5.1 billion$
EU is considered one of the main sources for financial and technical aid to Egypt.
EU is a main source for tourism inflows in Egypt. In 2007, 49.7% of the incoming tourism came from EU
Source: Central Bank of Egypt Ministry of Tourism
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Total Trade between Egypt and EU
Source: Central Bank of Egypt
Total Exports and Imports between Egypt and EU
2797
5109
3535
59235144
78496948
11289
7441
13006
9808
18007
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Mil
lio
n $
2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Egypt's Exports Egypt's Imports
79069458
12993
1823720446
27816
0
5000
10000
15000
20000
25000
30000
Mil
lio
n $
2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
EU represents 33.7 % of Egypt’s total trade volume
IV. What are the Implications of Egypt-EU Economic Relations in Figures?
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584
43
813
2954
4061
5114
0
1000
2000
3000
4000
5000
6000
Milli
on $
2002/ 03 2003/ 04 2004/ 05 2005/ 06 2006/ 07 2007/ 08
The Evolution of Net FDI Inflows from EU
Source: Central Bank of Egypt
Number of EU visitors to Egypt
Source: Ministry of Tourism
IV. What are the Implications of Egypt-EU Economic Relations in Figures?
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1. Financial Instruments
European Neighborhood and Partnership Instrument (ENPI)
Facility for Euro-Mediterranean Investment and Partnership (FEMIP)
Neighborhood Investment Fund
2.Technical Assistance Instruments
Technical Assistance & Information Exchange
(TAIEX)
Twinning Mechanism
Competitive and Innovation Program (CIP)
7th Research Framework Program – (FP7)
EU Financial and Technical Assistance Instruments
IV. What are the Implications of Egypt-EU Economic Relations in Figures?
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Ministry of Trade and Industry-EU Cooperation Programs
Summary Overview of Major Technical Assistance & International Cooperation ProgramsStatus as of 20 November, 2008
Project /InterventionTitle
Policy Area
ValueStart Date
End Date
Instrument and Status
Technical Assistance to Support the Implementation of the Action Plan (TASIAP)
Trade, Internal Market and
Industry
€ 74,000,000 TBD
(20% from GoE)
TBD – Q2/2010
TBD – Q4/201
3Technical Assistance
Technical Vocational and Educational Training (TVET)
Industry€ 66,000,000 (50% from
GoE)01.07.05
30.06.11
Technical AssistanceONGOING
Building the Capacity of the Egyptian Accreditation Council to Deliver Accreditation Services (EGAC)
IndustryTBD
€ 1,300,000 01.09.08
31.08.10
TwinningAwarded to UK 04.08
ONGOING
Building Capacity of the Egyptian Consumer Protection Agency (ECPA)
IndustryTBDTBD –
Q1/2010
TBD –Q4/201
2Twinning
Building the Capacity of the EOS to Award the “CE” Mark (EOS)
IndustryTBDTBD –
Q2/2010
TBD – Q1/201
3Twinning
Special Workshops on EU Acquis for Trade in Services
TradeTBD – NATBDTBDTAIEX TBD: To Be Determined
Source: Ministry of Trade and Industry
IV. What are the Implications of Egypt-EU Economic Relations in Figures?
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On the Other Hand,
There is room to enhance and deepen the relation
EU Trade with Mediterranean Partners in 2007 represents 1.6% of
total EU trade
The annual growth of total Mediterranean trade of goods with the EU
during 2000-2007 represents 4%
Trade in Services between Mediterranean Countries and EU
represents 5% of the EU total services trade.
EU investment flows into the Mediterranean region represents 2.3%
of EU’s total FDI in 2005.
The Mediterranean
Egypt EU Trade with Egypt in 2007 represents 0.67% of total EU trade
Trade in Services between Egypt and EU represents 1.2% of the EU total services trade.
Egypt ranked the 34th among the main Merchandise trading partners with the EU in
2007
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V. What Is New? Step Forward: EU-Med Roadmap up to 2010 and Beyond
During the 7th Euro-Med Trade Ministerial meeting held in Marseille
on July 2008, the Euro-Med Ministers reiterated the importance of
establishing a Euro-Med Free Trade Area at the horizon of
2010.
Trade Ministers instructed the Senior Officials Working Group
(SWOG) to work on finalizing a Euro-Med Trade Roadmap up to 2010
and beyond at the 2009 Trade Ministerial meeting.
The main objectives of the Trade Roadmap are:
Diversify and enhance trade,
Encourage industrial integration
Increase European investments in the Mediterranean
countries.
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EU Proposed Areas for Deep Integration (Convergence and Approximation):
Non Tariff Barriers (NTBs) Investment Trade facilitation Public Procurement (PP) Intellectual Property Rights (IPR) Competition policy Sustainable Development concerns Technical Barriers to Trade (TBT) - technical regulation on industrial
products SPS Standards & Conformity Assessment - expand the ACAA process to
areas which are not covered by the ACAA Rules of Origin (ROO) Dispute Settlement Mechanism
V. What Is New? Step Forward: EU-Med Roadmap up to 2010 and Beyond
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Investment
Convergence
Mutual Recognition
Facilitating Accountants’
Movement
Liberalizing Accounting Services
VI. Where Do You Fit?
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Thank you