EGYPT 2010 NATIONAL TRADE ESTIMATE

UNCLAS CAIRO 002237

SIPDIS

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DEPT PLEASE PASS TO USTR/GBLUE

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TAGS: ECON EINV EFIN ETRD ENRG PGOV EG
SUBJECT: EGYPT 2010 NATIONAL TRADE ESTIMATE

REF: STATE 105978


1. (U) Per reftel, below is the text of Embassy Cairo's 2010
National Trade Estimate for Egypt, also emailed as requested to USTR
in a Microsoft Word document.


2. (U) Begin text:

EGYPT

TRADE SUMMARY

The U.S. goods trade surplus with Egypt was $3.6 billion in 2008, an
increase of $690 million from 2007. U.S. goods exports in 2008 were
$6.0 billion, up 12.8 percent from the previous year. Corresponding
U.S. imports from Egypt were $2.4 billion, down 0.3 percent. Egypt
is currently the 36th largest export market for U.S. goods.

The stock of U.S. foreign direct investment (FDI) in Egypt was $8.8
billion in 2008 (latest data available),up from $7.5 billion in

2007. U.S. FDI in Egypt is concentrated largely in the energy
sector.

IMPORT POLICIES

In recent years, the Egyptian government has gradually liberalized
its trade regime and economic policies, although the reform process
has been somewhat halting. Under the leadership of Prime Minister
Ahmed Nazif and a ministerial economic team in place since 2004, the
government has adopted a wide range of significant reform measures.
However, the government needs to continue to reduce corruption,
reform the cumbersome bureaucracy, and eliminate non-science based
health and safety standards.

Tariffs

In 2004, the Egyptian government reduced the number of ad valorem
tariff bands from 27 to 6, and later down to 5. The government also
dismantled tariff inconsistencies, rationalized national
sub-headings above the six-digit level of the Harmonized System
(HS),and eliminated services fees and import surcharges ranging
from 1 percent to 4 percent. The government reduced its 13,000 line
tariff structure to less than 6,000 tariff lines. These and other
changes have significantly reduced requests for customs arbitration
over the past five years.

Over the past three years, Egypt has significantly reduced overall
tariff rates. In February 2007, a presidential decree reduced import
tariffs on 1,114 items, including foodstuffs, cloth, raw materials,
and intermediate and final goods. The government also adopted the
World Customs Organization (WCO) HS-2007 for classifying
commodities.

In April 2008, Presidential Decree 103 further reduced customs
tariffs on several items including processed foods, agricultural
goods, paper products, and some durable household goods, and
eliminated completely tariffs on steel rebar, cement (portland,
aluminous, hydraulic, and white),toilet paper, and similar paper
items.

As part of the government's stimulus package in February 2009,
Presidential Decree 51/2009 amended the customs tariff schedule for
250 items, lowering import duties on many items and removing
entirely duties on some raw materials and capital and intermediate
goods such as inputs for spinning and weaving products. While
Decree 51 generally lowered tariffs, it increased tariff rates on
some basic chemicals, rubber and bamboo manufacturing products, some
basic machinery, and medical equipment. The changes in the tariff
schedule in Decree 51 have been described by the Egyptian government
as temporary stimulus measures, and may be reversed in the future.


The reforms of the past three years reduced overall weighted tariff
average from 14.6 percent to 5.5 percent. Tariffs on the vast
majority of goods entering Egypt are below 15 percent. Vehicles,
alcohol, and tobacco are the only items on which tariffs are still
40 percent or greater. Passenger cars with engines under 1,600 cc
are taxed at 40 percent; cars with engines over 1,600 cc at 135
percent. In addition, cars with engines over 2,000 cc are subject
to an escalating sales tax of up to 45 percent. Clothing also faces
relatively high tariffs, although the 2007 decree reduced the rate
from 40 percent to 30 percent.

The 2007 decree also reduced tariffs on several agricultural
commodities and food products. Among the reductions were those for
most varieties of fresh fruit, which dropped from 40 percent to 20
percent. Fruit represents less than 1 percent of U.S. agricultural
exports to Egypt. In the 2007 tariff reduction, Egypt lowered four
tariff lines to make them consistent with Egypt's WTO bound tariff
rates. In 2008, Egypt lowered and eliminated most duties on various
dairy products, rice, and soybean oil. Most key U.S. agricultural
product exports to Egypt now enter at duties of 5 percent or lower;
however, a number of processed food products face tariff rates
ranging from 20 to 30 percent. The value of total U.S. agricultural
product exports to Egypt in 2008 was $2.1 billion.

Significant barriers to trade for U.S. agricultural products remain,
particularly for those of animal origin. In addition, the
government continues to make abrupt import regime changes without
notification or opportunity for comment. In 2006, the tariff rate
on poultry was reduced from 32 percent to zero, but in 2007, the
government re-imposed a 30 percent tariff, which remains in place
today. There is a 300 percent duty on alcoholic beverages for use
in the tourism sector, including hotels, plus a 40 percent sales
tax. The general tariff for alcoholic beverages ranges from 1200
percent on beer to 1800 percent on wine to 3000 percent on sparkling
wine and spirits.

Foreign movies are subject to duties and import taxes amounting to
46 percent, and are subject to sales taxes and box offices taxes
higher than those for domestic films.

Customs Procedures

The Ministry of Finance has committed to a comprehensive reform of
Egypt's customs administration, reorganizing the Customs Authority
to meet international standards. Modern customs centers are being
established at major ports to test new procedures, such as risk
management, and new information technology systems are being
implemented to facilitate communications among ports and airports.
These systems were supposed to become fully operational in 2009, but
were delayed and are now estimated to be completed by April 2010.
The Ministry of Finance in August 2008 finalized the draft of a new
customs law to streamline procedures and facilitate trade, but the
proposed legislation has yet to be submitted to parliament for
consideration, and it is unlikely that the legislation will be
introduced in the near future.

Egypt joined the International Convention on the Simplification and
Harmonization of Customs Procedures (Kyoto Convention),completing
its accession in 2007, upon ratification by the Egyptian parliament.
Joining the convention requires participating governments to
harmonize all customs procedures with those of the WCO standard to
reduce barriers to trade and commerce. In complying with the
convention, the Egyptian Customs Authority is adopting measures and
procedures and re-organizing portions of the organization.

Import Bans and Barriers

Passenger vehicles may only be imported into Egypt by their original
owners, and the owner must have purchased the car within the first
12 months of its production for it to be eligible for importation.

The Egyptian Ministry of Health and Population (MOHP) prohibits the
importation of natural products, vitamins, and food supplements.
These items can only be marketed in Egypt by local companies that
manufacture them under license, or prepare and pack imported
ingredients and pre-mixes according to MOHP specifications. Only
local factories are allowed to produce food supplements and to
import raw materials used in the manufacturing process.

The Nutrition Institute and the Drug Planning and Policy Center of
the MOHP register and approve all nutritional supplements and
dietary foods. The government attempts to complete the approval
process in 6 to 8 weeks, but some products face waiting periods of 4
to 12 months for approval. Importers must apply for a license for
dietary products, and annual renewal of the license costs
approximately $1,000. However, if a similar local dietary product
is available in the local market, registration for an imported
product will not be approved.

The MOHP must approve the importation of new, used, and refurbished
medical equipment and supplies to Egypt. This requirement does not
differentiate between the most complex computer-based imaging
equipment and basic supplies. The MOHP approval process entails a
number of demanding steps. Importers must submit a form requesting
the MOHP's approval to import, provide a safety certificate issued
by health authorities in the country of origin, and submit a
certificate of approval from the U.S. Food and Drug Administration
or the European Bureau of Standards. The importer must also present
an original certificate from the manufacturer indicating the
production year of the equipment and certifying that new equipment
is indeed new. All medical equipment must be tested in the country
of origin and proven safe. The importer must prove it has a service
center to provide after-sales support for the imported medical
equipment, including spare parts and technical maintenance.

The Egyptian government supports the production of agricultural
biotechnology. However, regulations exist for the review and
approval of biotechnology seed. In 2008, insect resistant (Bt) corn
was approved for cultivation, but in spring 2009, the permission to
import additional seed for planting was denied by the Ministry of
Agriculture due to political interference by a foreign country. The
Egyptian government maintains a general policy that allows
agricultural commodities, such as corn and soybeans, produced
through biotechnology to be imported, as long as the product
imported is also consumed in the country of origin.

STANDARDS, TESTING, LABELING, AND CERTIFICATION

The Egyptian Organization for Standards and Quality (EOS),which is
affiliated with the Ministry of Trade and Industry, issues standards
and technical regulations through a consultative process with other
ministries and the private sector. Verification of compliance with
standards and technical regulations for imported goods is the
responsibility of agencies including the EOS, the Ministry of Health
and Population, the Ministry of Agriculture and the General
Organization for Export and Import Control (GOEIC) in the Ministry
of Trade and Industry.

Of Egypt's 8,500 standards, compliance with 543 is mandatory. EOS
reports that it has harmonized such "mandatory standards" with
international standards and that about 80 percent of its mandatory
standards are based on standards issued by "international
institutions" such as the Geneva-based International Organization
for Standardization (ISO). In the absence of a mandatory Egyptian
standard, Ministerial Decree Number 180/1996 allows importers to
choose a relevant standard from seven "international systems"
including ISO, European, American, Japanese, British, German, and
for food, Codex. However, importers report that products that meet
international standards and display international marks are often
still subjected to standards testing upon arrival at the port of
entry. Product testing procedures are not uniform or transparent,
and inadequately staffed and poorly equipped laboratories often
yield faulty test results and cause lengthy delays. Procedures are
particularly cumbersome for products under the purview of the
Ministry of Health and Population.

The EOS also issues quality and conformity marks. The conformity
marks are mandatory for certain goods that may affect health and
safety. The quality mark is issued by the EOS upon request by a
producer and is valid for two years. However, goods carrying the
mark are still subject to random testing.

Import and export regulations put in place in 2005 increased
transparency and liberalized procedures to facilitate trade. These
regulations allowed importers to use certifications of conformity
from any internationally accredited laboratory inside or outside of
Egypt. However, all imported goods are subject to inspection by
GOEIC, which can be a lengthy process since samples are taken from
each container. The regulations also introduced a mechanism for
enforcing intellectual property rights at the border and extended
the preferential inspection treatment given to inputs for
manufacturing to include inputs for the service industry. While
these measures have improved Egypt's inspection regime, some
exporters to Egypt report that the regulations are not applied
consistently or uniformly. Garment exporters also report that
decrees such as 515 and 770, which require garments to include the
stitched name of the exporter, result in increased costs and
delivery delays.

Other U.S. agricultural products, particularly those of animal
origin, face barriers. The government of Egypt requires that
officials from the Ministry of Agriculture be present to observe
proper halal slaughter, even though the poultry industry in the
United States contracts with Egypt-approved Islamic Centers in the
United States to perform that service. This makes these products
more expensive and complicates poultry importation. The government
bans the import of poultry parts, such as leg quarters, to protect
the local industry. Also, the requirement of inserting a label,
which includes all product information, inside the vacuum bags
complicates the importation of meat products.

Imports may have to comply with labeling and packaging requirements
that some importers find burdensome. Arabic labeling is required on
all imported products. The Arabic language label must include the
contact information of the importer and exporter, date of production
and shelf life or expiration date, ingredients of the product, gross
and net weight. The label may be applied in either the country of
origin or in Egypt, but the product cannot be inspected and cleared
for release until the Arabic label is applied.

Although there is a list of permissible additives and colorants,
inconsistency at the ports of entry sometimes makes importation of
processed products risky.

SANITARY AND PHYTOSANITARY MEASURES

In recent years the Egyptian government has made great strides in
reducing the bureaucratic hurdles and time required for customs
clearance of agricultural products by taking a more scientific
approach to sanitary and phytosanitary (SPS) measures, which are
designed to keep the food supply safe. Despite these improvements,
importers of U.S. agricultural commodities continue to face
non-transparent and arbitrary treatment of imports in a number of
cases. For example, U.S. beef products are still subject to strict
import requirements that are not consistent with the World
Organization for Animal Health (OIE) guidelines for trading with a
"controlled" risk country. Eligible products only include boneless
beef, including livers, hearts and kidneys from cattle less than 30
months of age that originated in Mexico, Canada, or the United
States. In addition, meat products can only be imported directly
from the country of origin.

Pet food imports from the United States must be certified as being
free of ruminant material. This makes it difficult for importers to
supply a full range of U.S. product to the market.

Other food imports are sometimes subject to standards that appear to
lack technical and scientific justification.

The Ministry of Trade and Industry is working with the Ministries of
Agriculture and Health and Population, among others, to review SPS
standards and food product inspection procedures to ensure WTO
compliance and prevent duplicative inspection. Egypt is in the
process of strengthening the Technical Barriers to Trade (TBT) and
SPS enquiry points under the EOS and Ministry of Agriculture. A new
law establishing a food safety authority responsible for all food
safety issues including standards and inspections was drafted with
technical input from USAID in 2008 and approved by the Cabinet of
Ministers. The law was submitted to Parliament for review in 2008,
but has not yet been discussed. The law is on the agenda for the
parliamentary session that began in November 2009, but it is unclear
if it will be enacted.

Imports of U.S cotton must be from boll weevil-free areas.
Therefore, Egypt allows only U.S. cotton from Arizona and California
to be imported. In addition, cotton must be fumigated by methyl
bromide for 36 hours under vacuum.

Egypt remains one of the last large importers of seed potatoes in
the world to which the U.S. does not have market access. Egypt
requires that seed potato imports be free from brown rot despite its
existence in Egypt. Several U.S. states producing seed potato are
free of brown rot, and USDA and industry are working with Egyptian
authorities to open the market.

Recently, several shipments of imported grain and oilseeds from a
variety of countries have been temporarily detained by port
quarantine officials due to alleged excess amounts of weed seeds and
dead insects. Cargos are usually permitted to enter after cleaning.
Sampling and inspection procedures at the ports appear to be
inconsistent.

GOVERNMENT PROCUREMENT

Egypt is not a signatory to the WTO Agreement on Government
Procurement (GPA).

A 1998 law regulating government procurement requires that technical
factors, not just price, be considered in awarding contracts. A
preference is granted to parastatal companies where their bid is
within 15 percent of the price in other bids. In the 2004 Small and
Medium-Sized Enterprises (SMEs) Development Law, SMEs were given the
right to supply 10 percent of the goods and services in every
government procurement. Egyptian law grants suppliers certain
rights, such as speedy return of their bid bonds and an explanation
of why a competing supplier was awarded a contract. However,
concerns about transparency remain. For example, the Prime Minister
retains the authority to determine the terms, conditions, and rules
for procurement by specific entities.

In 2006, the executive regulations of the Tenders and Bids Law were
amended to streamline procurement procedures. The changes shorten
the period required between announcing tenders and the submission of
bids, reduce the cost for tender documents, require procuring
entities to hold pre-bid meetings to clarify items in tenders and
include model contract terms that set out the rights and obligations
of contractors. The amendments allow SMEs to obtain tender documents
at cost.

Egyptian Law 89/1998 forbids the use of direct purchasing except for
cases involving national security or national emergency, and a 2004
Prime Ministerial decree stipulates that all ministries must adhere
strictly to that law.

INTELLECTUAL PROPERTY RIGHTS (IPR) PROTECTION

Although Egypt has improved its IPR regime, the United States still
has significant concerns about IPR protection and enforcement in
Egypt. The Egyptian government has made progress in strengthening
some IPR laws and enforcement procedures, and engagement between the
United States and Egypt on IPR issues has remained strong.

The Egyptian Patent Office reports that it has completed its
technical examination of all applications filed in the "mailbox" for
pharmaceutical patents; however, the United States is monitoring the
situation to ensure the actual disposition of all applications filed
in the mailbox and appropriate notifications to patent applicants.

The United States was encouraged by the Egyptian government's
introduction in 2008 of a new 120 day streamlined drug registration
system for drugs carrying U.S. FDA or European approval, although
the United States continues to monitor the full implementation of
this system. The United States continues to seek written
clarification that Egypt's Ministry of Health and Population
provides adequate and effective protection against reliance on test
and other data submitted for marketing approval of pharmaceutical
products, and will continue to raise this issue in discussions with
Egyptian IPR officials.

The U.S. copyright industry continues to report high levels of
piracy of movies, sound recordings, printed material, and computer
software in Egypt, but significant improvements have been made. The
Information Technology Industries Development Authority (ITIDA)
under the Ministry of Telecommunications has improved protection of
computer software and taken steps to ensure that civilian government
departments and schools use legitimate software. The Egyptian
Center for Intellectual Property and Information Technology reports
that Egyptian authorities are increasingly willing to enforce
copyright protections related to information and communication
technology. The establishment in 2008 of special economic courts,
which handle IPR cases with specially-trained judges, has also been
a major reform. Consequently, a Business Software Alliance-IDC
Report found that Egypt reduced its software piracy rate from 69
percent to 59 percent from 2003 to 2008, bringing its rate to just
below the world average.

SERVICES BARRIERS

Egypt restricts foreign equity in construction and transport
services to 49 percent. In the computer services sector, larger
contributions of foreign equity may be permitted, such as when the
Ministry of Communication and Information Technology determines that
such services are an integral part of a larger business model and
will benefit the country. Egypt limits the employment of
non-nationals to 10 percent of an enterprise's general workforce and
in computer-related industries requires that 60 percent of top-level
management must be Egyptian within 3 years of the start-up date of
the venture.

Banking

No foreign bank seeking to establish a new bank in Egypt has been
able to obtain a license in the past 20 years, and in November 2009,
the Central Bank Governor reaffirmed that no new banks would be
given licenses.

Since banking reform began in 2004, the government has divested
itself from many joint venture banks, and privatized the fully
government-owned Bank of Alexandria in 2006. However, efforts to
restructure the remaining three state-owned banks have been mixed,
and the Central Bank rejected privatization for the three banks in
2009 on the grounds that market conditions were not right. The three
remaining state-owned banks still control at least 40 percent of the
banking sector's total assets. The banking reforms in the past five
years have succeeded in significantly reducing the share of
non-performing loans.

Telecommunications

Despite the passage of a February 2003 law to allow for new
telecommunications companies in accords with Egypt's WTO
commitments, Telecom Egypt continues to hold a de facto monopoly
since additional fixed-line licenses have not been issued by the
National Telecommunications Regulatory Authority (NTRA). The NTRA
postponed a plan to issue a second license in mid-2008, citing a
lack of interest in the international markets for fixed-line
service. However, in October 2009, the NTRA began accepting local
and international bids for licenses to establish so-called "triple
play" services of data, voice, and video in private residences, for
which greater international market interest exists. The licenses
for "triple-play" services are slated to be issued in 2010.
Compared to fixed-line service, mobile phone service in Egypt is a
more competitive sector, and three major private companies -
Etisalat, Mobinil, and Vodafone - dominate the market.
Transportation

The government is liberalizing maritime and air transportation
services. The government's monopoly on maritime transport ended
with the passage of Law 1 of 1998, and the private sector now
conducts most maritime activities including loading, supplying, ship
repair, and, increasingly, container handling. The Port of
Alexandria now handles about 60 to 65 percent of Egypt's trade.
Renovations underway at the Port of Alexandria, thus far at a cost
of about LE 750 million ($138 million) have increased handling
capacity to 44 million tons per year, up from 32 million tons per
year in 2004. The renovations included construction of deeper quays
to receive larger vessels; re-design of storage areas, warehouses,
and associated infrastructure; installation of new fiber optic
cables for data transmission; installation of a more automated cargo
management system; and renovation of the passenger cruise ship
terminal. These renovations have resulted in a smoother flow of
goods and services and have, combined with reforms in the Customs
Authority, produced a sharp decrease in customs clearance times from
three to four weeks in 2004 to about 3-5 days at present for the
Port of Alexandria, and just 1 day at the Port of Ain Sukhna.
However, when shipments are required to be approved by the General
Organization for Import and Export Control (GOIEC),customs
clearance may take between 2 to 20 days, depending on cargo type.
Egypt and the United States concluded an Air Transport Agreement in
1964, and the countries have modified the agreement only twice since
then, adding a security article in 1991, and in 1997 adding an
amended route schedule, a limited agreement on cooperative marketing
arrangements, and a safety article. The agreement remains very
restrictive and has no provisions on charter services. In the past,
private and foreign air carriers have not been able to operate
charter flights to and from Cairo without the approval of the
national carrier, Egypt Air. The United States remains interested
in replacing the restrictive 1964 agreement with an Open Skies air
services agreement. In June 2008, Delta Air Lines resumed operation
of non-stop service between Cairo International Airport and New
York's John F. Kennedy Airport. Egypt Air joined the Star Alliance
in July of 2008 and has entered into a code share agreement with
United Airlines.
Egypt is working with the U.S. on transportation security issues at
seaports and airports, and a bilateral memorandum of understanding
on the Container Security Initiative is expected soon.
Courier and Express Delivery Services
Private courier and express delivery service suppliers seeking to
operate in Egypt must receive special authorization from the
Egyptian National Postal Organization (ENPO). In addition, although
express delivery services constitute a separate for-profit, premium
delivery market, private express operators are required to pay ENPO
a "postal agency fee" of 10 percent of annual revenue from shipments
under 20 kilos. In 2009, the government of Egypt proposed a new
contract for private courier and express delivery companies, which
would grant ENPO even more extensive regulatory oversight over the
private express delivery sector by increasing considerably the fees
paid to ENPO and requiring private express delivery companies to
receive prior ENPO authorization for their prices and other polices.
Given that ENPO is not an independent regulator, there are strong
concerns that this new proposed contract will negatively impact
competition in the express delivery sector.

Other Services Barriers

Egypt maintains several other barriers to the provision of certain
services by U.S. and other foreign firms. Foreign motion pictures
are subject to a screen quota, and distributors may import only five
prints of any foreign film. According to the Egyptian labor law,
foreigners cannot be employed as export and import customs clearance
officers, or as tourist guides.

INVESTMENT BARRIERS

Under the 1986 United States-Egypt Bilateral Investment Treaty
(BIT),Egypt committed to maintaining an open investment regime.
The BIT requires Egypt to accord national and Most-Favored Nation
(MFN) treatment (with certain exceptions) to U.S. investors, to
allow investors to make financial transfers freely and promptly, and
to adhere to international standards for expropriation and
compensation. The BIT also provides for binding international
arbitration of certain disputes.

Based on a review of Egypt's investment policies, the OECD has
invited Egypt to adhere to the OECD Declaration on International
Investment and Multinational Enterprises. Egypt signed the

Declaration in 2007, becoming the first Arab and first African
country to join. During this process, Egypt agreed to review the
restrictions on investors identified in the OECD's 2007 Investment
Policy Review of Egypt, such as certain limits in the tourism sector
as well as the discriminatory treatment of foreign investors in
courier services.
ANTICOMPETITIVE PRACTICES

Under Egyptian competition law, a company holding 25 percent or more
market share of a given sector may be subject to investigation if
suspected of certain illegal or unfair market practices. The law is
implemented by the Egyptian Competition Authority, which reports to
the Minister of Trade and Industry. However, the law does not apply
to utilities and infrastructure projects, which are regulated by
other governmental entities.

In June 2008, Law 3/2005 on Protection of Competition and
Prohibition of Monopolistic Practices was amended and passed by the
People's Assembly under Law 190/2008. The amendment sets the minimum
fine for monopolistic business practices at LE 100,000 (US$18,380)
and the maximum at LE 300 million (US$55.15 million). It also
provides for doubling the penalty in cases where violations are
repeated. The first trial under both new laws involved a cement
cartel, which was convicted in 2008 and given a fine of LE200
million ($36.76 million),which was upheld on appeal.

ELECTRONIC COMMERCE

Egypt's Electronic Signature Law 15 of 2004 established the
Information Technology Industry Development Agency (ITIDA) to act as
the e-signature regulatory authority and to further develop the
information technology sector in Egypt. The Ministry of State for
Administrative Development (MSAD) is implementing an e-government
initiative to increase government efficiency, reduce services
provision time, establish new service delivery models, reduce
government expenses, and encourage e-procurement. For example, the
e-tender portal, established in August 2007, allows all government
tenders to be published online. In September 2009, the government
implemented the e-signature service, allowing public and private
companies to offer e-signature authentication. New legislative
proposals on information security, cyber crimes, and the right to
information have been in the drafting process for over a year, and
it is unclear if they will be implemented.

OTHER BARRIERS

Pharmaceutical Price Controls

The Egyptian government controls prices in the pharmaceutical sector
to ensure that drugs are affordable to the public. The government
does not have a transparent mechanism for pharmaceutical pricing.
The Pharmaceutical Committee in the Ministry of Health and
Population reviews prices of various pharmaceutical products and
negotiates with companies to adjust prices based on a cost-plus
formula. This method, however, does not allow price increases to
compensate for inflation and the pricing policy has failed to keep
pace with the rising cost of raw materials. In 2007, the government
granted price increases for selected pharmaceutical products, but
the approved increases were minimal.

About 85 percent of active pharmaceutical ingredients in Egypt are
imported. In 2004, the government reduced customs duties on most
imports of pharmaceutical inputs and products from 10 percent to 2
percent. In that same year, the MOHP lifted restrictions on
exporting pharmaceuticals to encourage pharmaceutical investment and
exports.

End Text.

TUELLER