Global Arab Network | Trade liberalization helps Egypt to export $ 2 billion agricultural goods to EU

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Trade liberalization helps Egypt to export $ 2 billion agricultural goods to EU

Global Arab Network - - Gamal Ragay

Sunday, 25 April 2010 10:56

Egypt_vegetable_and_fruit_Egyptian_agriculture

Egyptian President Mubarak ratified the document which finalizes the agreement of trade liberalization of agricultural products, processed agricultural products and fish products with the European Union (EU) provided that the deal will come into force on June.

In this regard, Egyptian Minister of Trade and Industry Rasheed Mohamed Rasheed said that the agreement aims at opening up new vistas for increasing the Egyptian exports of agricultural goods to the EU by more than 2 billion dollars.

Under the deal, the Egyptian agricultural products will be exempted from customs duties and enter European markets around the year, according to Rasheed.

The previous deal with the European Union stipulated quotas and schedule for the export of most of Egypt ’s agricultural products.

Rasheed added it took three years to reach the new deal with the European Union. We kept in mind the need to open European markets without defining quotas or exports seasons in order to export the surplus of agricultural products, Rasheed added.

Egypt's total exports to the EU amounted to 8 billion euros in 2008, including agricultural exports estimated at 554 million euros. The volume of Egyptian agricultural exports is expected to increase after the deal comes into force.

On the other hand, Egypt has issued $1.5 billion of 10-year and 30-year international bonds, and received a large number of orders that exceeded the notes available, Egyptian Finance Minister Youssef Boutros Ghali said.

Egypt raised $ 1 billion of 30-year dollar-denominated bonds to yield about 6.9 percent, receiving orders worth ten times the value of these notes maturing in 2040, Ghali told Egyptian reporters in Washington .

Egypt also issued a 10-year $500 million tranche at 5.75 percent that received orders worth six times the value of the notes, the Minister added.

Such strong demand reflected the international markets' trust in the Egyptian economy, the Minister said.

Ghali said that the low interest rate and long term bonds signaled the trust of the international markets and investors in the Egyptian economy, while Greece, an EU member, did not manage to get loans at less than 7.5 percent interest.

The move came to help redress Egypt's budget deficit which stands at EGP 100 billion, and estimated to rise to EGP 106 billion next year, the Minister noted.

Ghali stressed he embarked on a tour in seven US cities to tout for the notes, while Investment Minister Dr Mahmoud Mohieddin traveled to London for the same purpose.

Global Arab Network

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