Egyptian Commercial Office Embassy of Egypt So Paulo Brazil

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Egyptian Commercial OfficeEmbassy of
Egypt São Paulo Brazil
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Egyptian Brazilian Cooperation in the
field of cotton and cotton products
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Egyptian Brazilian Cooperation in the field of
cotton and cotton products

• 1- Overview of Egyptian raw cotton (production
  and exports)
• 2- Overview of Egyptian 100 cotton products
  exports
• 3- Trade and economic relations between Egypt and
  Brazil
• 4- Egyptian import tariff on cotton and cotton
  products
• 5- Doing business with Egypt
• 6- Proposals for cooperation between ABIT and
  Egyptian chamber for textile industry.

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1- Overview of Egyptian cotton (production and
exports)

• Production and level of productivity
• Exports.

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Production and level of productivity

• COMPARISON BETWEEN PRODUCTION AND PRODUCTIVITY IN
  2005/2006 SEASON AND THAT OF 2004/2005 FOR ALL
  VARIETIES PLANTED IN METRIC.TON AS FOLLOWS
• 
  
  
• (AVERAGE PRODUCTIVITY IN KGM)

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Production and level of productivity

• LS VARIETIES
• Lint cantar 50 Kg.

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Production and level of productivity

• Shows share Egypt compared to international
  production for E L S cotton during the period
  from 2001 till 2006 according to I C A C data

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Exports

• THE FOLLOWING IS THE STATISTICAL SITUATION OF
  2005/2006 SEASON AND PREDICTIONS FOR 2006/2007,
  COMPARED WITH EARILER SEASONS, AS FOLLOWS

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Exports

• QUANTITY OF EXPORTED COTTON DURING THE SEASON
  05/2006 COMPARING IT WITH THAT OF PREVIOUS YEARS

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2- Overview of Egyptian 100 cotton products
exports

• Cotton yarn
• Cotton fabrics
• Cotton tricot products
• Cotton hair products
• Cotton ready made garments.

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2- Overview of Egyptian 100 cotton products
exports

• Cotton yarn / Cotton yarn exports
• Geographical Distribution of cotton yarn and
  exports
• 
  Value in Million USD

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2- Overview of Egyptian 100 cotton products
exports

• Cotton Fabrics / Cotton Fabrics Exports
• Geographical Distribution of Cotton fabrics
  Exports
• 
  Value in Million USD

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2- Overview of Egyptian 100 cotton products
exports

• Cotton tricot products exports
• Geographical Distribution of Exports
• 
  Value in Million USD

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2- Overview of Egyptian 100 cotton products
exports

• Cotton hair products Exports
• Geographical Distribuction of Exports
• 
  Value in Million USD

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2- Overview of Egyptian 100 cotton products
exports

• Cotton ready made garment
• Geographical distribution of exports
• 
  Value in Million USD

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Egyptian Cotton logo
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3- Trade and Economic relations between Egypt and
Brazil

• Trade volume between Egypt and Brazil
• Egyptian Exports to Brazil
• Brazilian Exports to Egypt.

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Trade volume between Egypt and Brazil

• Trade flow during the period (2002-2005,
  January-may2006)
• US million

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Egyptian exports to Brazil

• Top 10 Egyptian Exports to Brazil
• US million

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Brazilian Exports to Egypt

• Top 10 Egyptian Imports from Brazil
• US million

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Egyptian imports of short and medium staple cotton

• Egyptian imports of short and medium staple cotton

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4- Egyptian import tariff on cotton and cotton
products
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5- Doing business with Egypt

• a) Investment incentives in Egypt
• b) Free zone investments in Egypt
• c) Egyptian network of preferential trade
  agreements

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a) Investment incentives in Egypt

• Investment Incentives Law no.8
• Generous incentives to invest in Egypts private
  sector have been approved by the Government
  through the offering of a series of Investment
  Laws revolving around tax incentives, customs
  exemptions, and many new investor protections and
  guarantees.
• Law 230 and its update by the 1997 Investment and
  Incentives Guarantee Law No  8, offer investors
• A project could be wholly owned by foreigners.
• Guarantees against nationalization and
  expropriation of the project.
• Output of the project is not subject to price
  control.
• Projects are allowed to repatriate their capital
  and profits.
• Foreign experts salaries are exempt from income
  tax if their stay in Egypt is for less than one
  year.
• Imported capital assets and construction
  materials required to establish an approved
  project are subject to a unified import duty rate
  of 5.

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b) Free zone investments in Egypt

• What are Free Zones?
• The Free Zone is a part of the national
  Territory of Egypt, but it is considered outside
  customs boundaries, imports, monetary and duties
  issues of the country. This imparts much more
  freedom on transactions and exchanges, aimed at
  increasing economic growth and attracting foreign
  direct investment.

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b) Free zone investments in Egypt

• Privileges and Guarantees available to investors
  in Free Zones
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• Advantages
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• Freedom of transferring the invested capital and
  profits of the project abroad.
• Freedom of choosing the investment field and the
  legal formula of the projects.
• Freedom of pricing the products and profit
  margin.
• Non-existence of lower or higher limits for the
  invested capital
• Non-existence of limits on the capital
  nationality so that any investor can invest or
  participate with a percentage in the investment.
• Freedom of working for or to others credit in
  order to exploit the project energies and support
  the background links with the market.
• Freedom of importing from the local market with
  some simplified procedures.
• Treat the local exports to the free zones equally
  with exports coming from abroad.

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b) Free zone investments in Egypt

• Guarantees and exemptions
•   A legal action against the projects in terms
  of the breaches of the customs, finance, and tax
  laws without a reference to the authority may not
  be taken.
• The nationalization or confiscation of the
  projects and establishments may not be applied.
• Custody on the projects or distress or
  capturing or desertion, solidification or
  confiscating may not applied administratively but
  legally.
•  
• Exempting all capital assets and production
  requisites necessary for practicing the project
  (except for vehicles) from any customs duties
  or taxes on sales or other kinds of taxes during
  the project activity even if the nature of the
  activity necessitates their temporary existence
  outside the free zone.
• Exempting the imports and exports of the
  project to and from the country from any sales
  taxes or any other kinds of taxes or duties
  applied in the country.
• Non-submission of the project and its profits
  to any taxes or customs laws applied in the
  country during practicing the project activity.
• Non-submission of the imports and exports of
  the projects to any normal customs procedures or
  exporting rules applied in the country.
• Exempting the imports of the project from the
  local market from any sale taxes.
• Exempting the specifically directed transit
  goods from any duties chargeable on the entering
  and exiting goods.
• Exempting all the local components of the
  products. Produced in the free zones projects
  from any customs duties in the case of their
  selling to the local market (inside the country).
  
• Exempting contracts, loans from the tax stamp
  registration fees for 5 years.
• Exempting the private free zone's land
  registration fees from the tax stamp.

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c) Egyptian network of preferential trade
agreements

• EU PARTNERSHIP AGREEMENT
• Common Market for Eastern and Southern Africa
  (COMESA)
• GREATER ARAB FREE TRADE AREA
• QUALIFYING INDUSTRIAL ZONES (QIZs) with the
  U.S.A.
• MERCOSUL

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c) Egyptian network of preferential trade
agreements

• EU PARTNERSHIP AGRREMENT
• The agreement with European Partnership has two
  main objectives, firstly to encourage a regional
  cooperation based on peaceful coexistence and
  economic and political stability. This objective
  is realized by providing the appropriate
  framework for political dialogue to debate such
  issues. Secondly, it aims at establishing the
  appropriate conditions for liberalization and
  wider access to markets, while maintaining social
  cohesion. The second objective is achieved
  through the inextricable trade relations as well
  as the extensive cooperation program existing and
  implemented with the EU.

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c) Egyptian network of preferential trade
agreements

• Common Market for Eastern and Southern Africa
  (COMESA)
• The COMESA (Common Market for Eastern and
  Southern Africa) agreement was signed on 8
  December 1994, to replace the PTA Agreement
  (Preferential Trade Area) of  21 December 1981
  and came into force on 30 September 1982. Egypt
  became a member in July 1998.
• The aims and objectives of the COMESA agreement
  are
• to facilitate the removal of the structural and
  institutional weaknesses of member States so that
  they are able to attain collective and sustained
  development
• to create and maintain
• a Free Trade Area guaranteeing the free movement
  of goods and services produced within COMESA and
  the removal of all tariffs and non-tariff
  barriers
• a Customs Union with a common external tariff
  under which goods and services imported from
  non-COMESA countries will attract an agreed
  single tariff in all COMESA states
• to create and maintain
• free movement of capital and investment supported
  by the adoption of common investment practices so
  as to create a more favorable investment climate
  a common investment area for the COMESA
  region.
• a gradual establishment of a payments union and
  the eventual establishment of a monetary union
  with a common currency and the adoption of
  common visa arrangements, including the right of
  establishment leading eventually to the free
  movement of bona fide persons.

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c) Egyptian network of preferential trade
agreements

• GREATER ARAB FREE TRADE AREA
• Egypt is also determined to foster closer
  economic links with its Arab neighbors via the
  conclusion of the Greater Arab Free Trade Area
  (GAFTA) which has been concluded with several
  Arab countries ) that will breath new life into
  regional integration projects. (300 million
  Inhabitants). GAFTA is signed and implemented by
  12 Arab countries ( Egypt, Bahrain, Iraq, Jordan,
  Kuwait, Lebanon, Libya, Mauritania, Morocco,
  Oman, Qatar, Saudi Arabia Emirates).

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c) Egyptian network of preferential trade
agreements

• QUALIFYING INDUSTRIAL ZONES (QIZs) with the
  U.S.A.
• Overview
• The QIZ protocol is a trade arrangement between
  Egypt and the US granting all products
  manufactured by public or private, small or large
  factories, located within the seven designated
  qualifying industrial zones in Egypt, and
  satisfying the required rules of origin, an
  immediate free access to the US market without
  any custom duties or quota restrictions. The QIZ
  protocol was signed in December 2004 and its
  implementation phase started in February 2005.
• There are currently 7 QIZs located within 3
  geographical areas namely- Greater Cairo (South
  Giza, Nasr City, 10th of Ramadan City, 15th of
  May City)- Alexandria (Alamreya Borg
  Alarab)- Port-Said.
• For a product to qualify for such preferential
  agreement, the project must be located within the
  7 designated qualified zones and 35 of its final
  product must be produced locally. Any project
  located within these 7 designated zones may or
  may not export to the US under this protocol
  depending on the owners' preference. QIZs are
  expected to drive further an already robust
  textile and garment industry and to encourage its
  feeding sectors.
• Protocol Advantages
• Duty free access to the US Market - Simple
  requirements to benefit from the free access -
  All products benefit from the free access -
  Flexible application of the requirements - No
  quotas on exported products - Open ended validity
  of the protocol.
• While this protocol is a non-reciprocal
  arrangement between Egypt and the United States,
  it is expected to be a step towards a Free Trade
  Agreement (FTA) between the two countries.
• For more details, you may refer to
  www.qizegypt.gov.eg

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c) Egyptian network of preferential trade
agreements

• MERCOSUL
• - Negotiation to establish free trade area

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Propasals for cooperation between ABIT and The
Egyptian Side

• Signing a cooperation agreement between ABIT and
  the Egyptian chamber for textiles
• Participation of Abit in the cairo International
  fair.