11 Euro-Mediterranean Association Agreement
with Egypt
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| Draft Council Decision concerning the conclusion of an Euro-Mediterranean Agreement establishing an Association Agreement between the European Communities and their Member States and the Arab Republic of Egypt
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| Legal base | Article 300 (2), Article 300 (3) and Article 310 EC; consultation; unanimity
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| Department | Foreign and Commonwealth Office
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| Basis of consideration | EM of 7 April 2004
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| Previous Committee Report | None; but see (22378) 8089/01: HC 152-i (2001-02), para 39 (18 July 2001)
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| To be discussed in Council | 26 April 2004 GAERC
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
11.1 The Euro-Mediterranean Agreement establishing an Association
between the European Communities and their Member States, of the
one part, and the Arab Republic of Egypt, of the other part, was
signed in Luxembourg on 25 June 2001. It is another element of
the EU's Mediterranean policy, formally launched at the Barcelona
European Council in November 1995. The Agreement, which is for
an unlimited period, will consolidate existing ties between the
EU and Egypt by fostering a closer relationship based on reciprocity
and partnership. Respect for democratic principles and fundamental
human rights constitute an essential element of this relationship.
11.2 The EU-Egypt Association Agreement provides
for:
- a regular political dialogue,
in particular at Ministerial and senior official level;
- the progressive establishment over 12 years of
a free trade area, in accordance with WTO rules, including liberalisation
of trade in industrial products, and further liberalisation of
trade in agricultural products;
- a safeguard clause and an anti-dumping/countervailing
clause confirming the parties' right to take action in accordance
with the General Agreement on Tariffs and Trades (GATT);
- provision for the extension of the Agreement
to cover establishment of companies and trade in services, taking
account of obligations arising out of the General Agreement on
Trade in Services;
- further removal of restrictions on the movement
of capital between the Community and Egypt;
- the introduction of rules within five years of
the entry into force of the Agreement in relation to competition
within the free trade area;
- protection of intellectual, industrial and commercial
property;
- economic co-operation in a wide range of areas,
including education and training, science and technology, environment,
industry, investment, financial services, agriculture, transport,
telecommunications and information technology, energy, tourism,
customs, statistics, money laundering and drugs;
- co-operation for the prevention and control of
illegal immigration and other consular issues;
- a dialogue on social and cultural matters;
- financial co-operation, aimed at modernising
the Egyptian economy and promoting private investment;
- the establishment of an Association Council,
which will meet when both sides consider it necessary, at Ministerial
level to examine any issues arising within the framework of the
Agreement, assisted by an Association Committee of senior officials;
and
- appropriate measures by either party, including,
implicitly, suspension of the Agreement, if it considers the other
party has failed to fulfil its obligations under the Agreement.
The Government's view
11.3 The Minister for Europe (Mr Denis MacShane)
notes that "the main objectives of the Agreement are to provide
an appropriate framework for political dialogue, and to strengthen
co-operation between the Community and Egypt. In these cases,
action by the Community is necessary if the Agreement is to have
the desired effect."
11.4 The Minister further notes that the Agreement
"recognises the European Union's desire to deepen its partnership
with Egypt [and] provides a comprehensive framework for political
dialogue at all levels, and for the development of trade between
the EU and Egypt". He affirms that "the Agreement does
not impose any new burdens on business", and that there are
no financial implications arising from the conclusion of the Agreement.
Conclusion
11.5 After negotiations beginning in 1994, the
Agreement was signed by Member States on 25 June 2001. It then
required ratification, which for the UK was signified on 26 July
2003. The Council Decision, which constitutes the legislative
act authorising the Community to become party to the Agreement,
will conclude this lengthy process. We clear the document.
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