Working Papers

Egypt and the Partnership Agreement with the EU: The Road to Maximum Benefits

Publication Number: ECESWP3-E&A

August, 1996

Author : Ahmed Galal and Bernard Hoekman

Type : Working Papers

The agreement under negotiation between Egypt and the EU will affect the industrial sector and the rest of the Egyptian economy in a significant way. It will entail phasing out tariffs on Egyptian imports from the EU—from which Egypt imports about half of its total imports—to zero over a 12-year period. The paper explores the nature and magnitude of the agreement’s impact on the Egyptian economy and discusses how Egypt can maximize the benefits of the agreement by using it as one component of a coherent growth strategy. It further outlines the key elements of a strategy that aims to achieve a sustainable growth rate of 7 percent per annum.