16 January 2018 07:22 PM

Economic Relations

Tuesday، 26 January 2016 12:00 AM

In 2012, overall bilateral trade reached 964.3 million USD, with Egyptian exports to Canada reaching 515.8 million USD, and Canadian exports to Egypt amounting to 448.5 million USD. The balance of trade which favours Egypt (67.3 million USD) is driven primarily by the increase in Egyptian exports of crude gold which alone constitutes 77.5% of total Egyptian exports to Canada.

Main Egyptian exports to Canada include, in addition to crude gold, chemical products, fertilizers, rugs and carpets, and petroleum derivatives.
Main Canadian exports to Egypt include metal and scrap metal, soya beans, wheat, dried pulses, airplanes, paper and cardboard, wood, and dairy products.

Both countries are party to a bilateral Foreign Investment Protection and Promotion Agreement which entered into force in 1997.

With respect to cooperation in fields of development, the Canadian Department of Foreign Affairs, Trade and Development (DFATD) funds a limited number of projects related to economic development, in areas which correspond with the national developmental priorities of Egypt. These projects include a program to provide technical assistance and capacity building to Egyptian small and medium enterprises, with a focus on those enterprises run by women and youth.

Besides, Egypt is in the forefront of countries benefiting from aid programs by the Canadian International Development Agency (CIDA).Where Egypt is ranked third on the list of beneficiaries of the Canadian Industrial Cooperation Program (INC) Canadian. The two countries are keen to push their cooperation to include other fields such as international trade talks and disarmament issues, education and the Organization of Francophone and cultural exchange.

Trade Exchange

  • Trade exchange between Egypt and Canada redoubled from US$154 million in 2002 to US$707 million in 2008; up 48 per cent.
  • Egyptian exports to Canada reached US$707 million in 2008 as against US$479 million in 2007; down 17 per cent. Imports from Canada increased 78 per cent to stand at US$581 million in 2008.
  • Egyptian exports to Canada include: urea, carbon electrodes, graphite, carpets, ready-made garments, foodstuff, agricultural produce, towels, and black carbon.
  • Egyptian imports from Canada include: production inputs and intermediary products, (e.g. chemicals, coal and iron waste) (35 per cent); staple commodities (wheat, lentils, and soya beans) (33 per cent); and tools and machinery (10 per cent).
  • The number of Canadian investment projects in Egypt is put at 329 with a capital of US$324 million. The figure does not cover oil, petrochemicals or investments in the free zones (Cairo and Alexandria not included).
  • Egypt is top on the list of countries eligible for assistance provided by the Canadian International Development Agency (CIDA).
  • Egypt is third on the list of countries for eligible Support under CIDA's Industrial Cooperation Program (CIDA-INC).

Contractual Framework

The following statement explains the most important economic agreements concluded between the two countries from 1982 until today:

Date of Accord

Details

May 1982

Nuclear Cooperation Accord which makes  the Alcando Reactor  obtainable before Egypt .

January 1983

The General Accord on Development between Egypt and Canada.

May 1983

Convention on the Prevention of Double Taxation between the two Countries.

December 1993

Accord on Cooperation between the Egyptian Exports Development Centre and the Canadian Trade Facilitation Office (TFO).

December 1994

Amending the Convention on the settlement of due debts to the Canadian Export Development Center (EDC) to devaluate the value of due debt from the debt service to reducing  the original debt

14 July 1996

Accord on the Restructuring of some Public Sector Companies in Egypt (especially food companies, paper, and mineral industries) with 4.2 million Canadian dollars for financing..

13 November 1996

Accord on the Protection and Promotion of Investments between Egypt and Canada.

18 November 1996

Memorandum of Understanding for the Implementation of the Administrative Reform Programme in Egypt, in coordination between the Ministry of Public Enterprise Sector in Egypt and the Canadian Treasury.

3 February 1999

Memorandum of Understanding between Egypt and the Canadian province of Manitoba in the field of Developing Trade in Canola cereals..

April 2000

Updating the Accord on Preventing Double Taxation between Egypt and Canada.

 

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