Egypt postpones reduction in car tariffs

CAIRO – 28 December 2017: "Egypt delayed a decision to reduce tariffs on imported cars from Europe in an attempt to support the local industry," Minister of Industry and Foreign Trade Tarek Kabil announced Thursday.

"The ministry has conducted a study on the conditions of local car manufacturing, and it resulted in the necessity of postponing a decision to reduce tariffs by 10 percent in 2018," Kabil said in a statement.

Kabil said his decision is in line with the EU-Egypt Association Agreement, which promises a gradual reduction of customs on European cars, where the ninth item allowed Egypt to delay the timetable of the agreement at no more than one year.

An 8 percent reduction in car tariffs was scheduled for 2018 to be fully eliminated by 2019.

Egyptian exports to European Union countries hiked 16.5 percent in the first half (H1) of 2017, recording $3.73 million, up from $2.63 million in H1 2016, according to official statistics.

The Egyptian imports from the EU went down 29 percent in that period to $8.15 million from $11.5 million in the corresponding period last year.

EU assistance to Egypt currently stands at more than €1.3 billion in ongoing grant commitments. Together with EU member states and European financial institutions' grants, loans and debt swaps, this figure amounts to a total of €11 billion, making the EU the biggest donor in Egypt.

The new EU-Egypt Single Support Framework 2017-2020 sets out the EU's priorities for bilateral assistance to Egypt under the European Neighborhood Instrument for the period 2017-2020. It foresees between €432 and €528 million for Egypt.