Egypt's policy of promoting its international relations in all fields is based on several basic pivots, salient of which are:

 

1-     Enhance the integration of Egyptian economy into the global economy, through promoting dealings with regional and international economic blocs in addition to properly utilizing cooperation agreements concluded between Egypt and other countries and economic blocs.

2-     Activate the role of institutional export structures on top of which comes the Supreme Export Council that sets out plans, policies and programmes to develop exports.

3-     Enhance the competitiveness of Egyptian products by making an essential leap based on total quality and international standard concepts, using state-of-the-art technologies, allowing interaction of market mechanism.

4-     Attend to the marketing of Egyptian products abroad and solve transport problems to facilitate export operations.

5-     Employ Egypt's political weight to confront attempts to impede access of Egyptian exports to developed country markets.

 

 

1-     Euro-Egyptian Association Agreement In 1995, Egypt started talks with the European Union (EU) on an association agreement, which was finally signed on June 25, 2002. By virtue of this agreement, a free-trade zone was set up for an interim period of 12 years, starting the effective date of agreement. The objectives of this agreement are to promote balanced economic and social relations between both parties and provide a convenient framework of dialogue to enhance strong political ties.

 

2-     Free Trade and COMESA Countries Agreement On August 12, 1994, the Common Market for Eastern and Southern Africa (COMESA) was established, and was accessed by Egypt in May 1998. The main objectives of COMESA are to realize sustainable growth and development in member-states via encouraging a balanced production and marketing framework for countries and to push forward joint development in all fields of economic activity. COMESA comprises twenty African countries.

 

3-     Free and Preferential Trade Agreement between Egypt and Arab Countries

 

Egypt signed a free and preferential trade agreement with many Arab countries of which the agreements with Libya went into effect on June 28, 1991, with Lebanon on March 15, 1999, with Syria on December 1, 1991, with Morocco on April 28, 1999, and with Jordan on December 21, 1999. Egypt has always endeavoured to accelerate the creation of the Arab free-trade organization and the revival of Arab common market. It has also activated the role of the Group of Fifteen Developing Countries and the Group of Eight Islamic Countries. It also signed a partnership agreement with USA, let alone cooperation agreements with some Asian countries as China, Japan, India and South Korea.

 

 

In the framework of Egypt's cooperation with European countries, many international agreements were signed, salient of which are:

 

1-     On June 6, 2002 Egypt signed two agreements with France for cooperation in communication at an investment of 428 million Euro. The agreements include transferring technology, developing software and establishing a regional training centre. In addition, on May 23, 2003 an agreement was signed to establish an Egyptian-French company for marketing garments and developing spinning and weaving industry.

 

2-     On October 16, 2003 a memorandum of understanding was signed between the Egyptian and Russian central banks to exchange experts, information and expertise.

 

3-     On August 15, 2002 Egypt and Germany signed a contract to establish a German University in Cairo. Moreover, two cooperation agreements were signed on September 10, 2002 for cooperation between EgyptTelecom and Siemens of Germany for modernizing and upgrading telecommunication infrastructure in Egypt.

 

In the framework of Egypt's cooperation with EU, Egypt signed many agreements with EU institutions, involving supporting and activating cooperation in different fields, salient of which are the following:

 

1-     In the framework of the EU Meda II Programme to support Mediterranean countries, including Egypt, Algeria, Tunisia, Morocco, Syria and Jordan, the EU granted Egypt a sum of 351 million Euro out of the European commission budget for developing trade, training and activating infrastructure development processes in transport, power and communication, in addition to encouraging integration and cooperation in environment, education and training.

 

2-     On July 4, 2002 the European Investment Bank Board of Directors agreed to co-finance the construction of Al-Nubaria power generator plant at a cost of 150 million Euro, in addition to modernizing 5,000 industrial establishment.

 

3-     On September 19, 2002 the European Commission approved the 2003 financing plans which comprised earmarking a sum of 104 million Euro to Egypt to be used in improving trade, development programmes for technical and vocational education, development of fiscal system and exports and enhancing tertiary education.

 

4-     On January 15, 2003, Egypt signed phase II agreement to facilitate trade measures with Egypt at a financing cost of 48 million Euro, the object is to modernize the customs sector, upgrade management level and remove obstacles to the outflow of Egyptian exports to foreign markets and inflow of imports to local markets.

 

5-     On February 5, 2003, the EU extended a sum of 64 million Euro to finance regional development programme in Southern Sinai.

6-     On March 16, 2003, the EU extended a sum of 65 million Euro to finance 19 projects related to information, health and culture in Egypt.

 

 

Egypt seeks to enhance its relations with Asian countries in different fields. Exports to and imports from these countries account for a high percentage of the trade balance. Salient agreements signed with Asian countries in 2002/03 are:

 

1-     On December 23, 2002 Egypt signed with Japan an agreement to provide environment monitoring equipment. In this connection, Japan offered a grant of about 548 million Yen to provide these equipment in Hurghada, Aswan and Assiut, in addition to establishing an environmental research and technical training centre. This centre serves as it is a nucleus for a regional research centre in the Middle East. Moreover, on April 15, 2003, a grant of 968 million Yen was extended to increase the productivity of wheat in Al-Gharbiya and Al-Monofia governorates. On June 18, 2003, a loan of 6 billion Yen was offered to finance a Cairo-Alexandria linkage line project.

 

2-     On July 4, 2002, an agreement was signed with China whereby Egypt would export 1,250 cars manufactured in Egypt to China at a cost of 48 million Euro. Moreover, on October 22, 2002, two agreements were signed to establish two cultural centres and a free export development zone. Cooperation with USA

 

USA is Egypt's first trade partner. On September 30, 2002, Egypt signed an agreement with the USA for a grant to participate in economic reform. Moreover, Egypt signed an agreement related to the first amendment to a grant agreement and an agreement on environment and health