23 September 2018 12:58 AM

Economic Relations

Thursday، 26 November 2015 12:00 AM

The Egyptian-Japanese economic and trade relations have recently reached an unprecedented phase as we witnessed positive progress in 2007/2008, where the trade volume reached an impressive milestone exceeding the level of US$ 3,45 billion in 2008 for the first time ever in our modern relations. Many Japanese companies and investments achieved a remarkable success in the Egyptian market. Among them are Toshiba, Nissan Motors, Mitsubishi, Mitsui, Otsuka, Sojitz, Sumitomo, Kobe Bussan and finally Unicharm; and new Egyptian products have been included in the trade balance such as processed food, building material, ceramics and others. The Egyptian exports to Japan climbed in 2008 to over US$ 1,6 billion, representing an impressive increase of more than 100% compared to what has been achieved during the previous year. This boom, however, suffered a decline, as expected, through 2009 and early 2010 due to the global financial crisis and its negative economic repercussions.

On the other hand, the overall volume of the accumulated direct Japanese investment in Egypt is still below expectations, despite recent upsurge. This volume is still below the Egyptian absorptive capacity which succeeded to attract more than US$ 13,2 billion new and fresh FDI in 2008, and US$ 8,1 billion in 2009 due to the implementation of economic reform policies and the participation in many multilateral or bilateral free trade or preferential trade arrangements in the Arab world, Africa, Third World, EU, USA, EFTA, Turkey, and most recently Latin America … etc.
Egypt is eager to further expand the Japanese investment flows as Japan can benefit from the economic expansion that is underway in Egypt, where annual GDP growth rate reached the average of 7,3% between 2004 and 2007, and even 4,2% in 2008, and 4,7% in 2009 despite the negative repercussions of the global financial crisis that affected the Egyptian economy.

Contractual Framework

• 2010: Agreement between the Government of and the Government of the on Co-operation in Science and Technology
• 2010: Loan Agreement for establishing wind power plant
• 2009: Agreement on increasing the direct flights between and and Kansai International Air port
• 2009: The agreement of establishing the for Science and Technology
• 2008: Loan agreements to finance the following projects:
• 2008: Additional loan to finance the Koraymat power plant.
• 2008: Loan to create a regional control station for electricity in Nagaa Hammadi
• 2008: Loan to the Social Development Fund to finance small and medium enterprises.
• 1999: Joint Statement (Japan-Egypt Partnership Program) Following President Mubarak’s visit
• 1995: Joint Communiqué (A Partnership Toward a Better Future)  Following President Mubarak’s visit
• 1995: General Agreement for the Dispatch of Overseas Cooperation Volunteers
• 1984: Agreement on Technical Cooperation between and the of
• 1978: Agreement between and the Arab Republic of Egypt concerning the Encouragement and Reciprocal Protection of Investment
• 1969: Convention between and the of for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Income Tax
• 1963 Agreement on Air Services
• 1958 Trade Agreement on Payment
• 1957: Cultural Agreement

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