Egypt Eliminates Import Tariffs

April 15, 2008According to anba: The government of Egypt has decided to cut import tariffs on a series of products. A decree signed early this month by the president of the country, Hosni Mubarak, determined the reduction or exemption of tariffs on goods ranging from foodstuffs to construction material, industrial inputs, parts, paper for several purposes, steel and cooling equipment, among others. To the president at the Arab Brazilian Chamber of Commerce, Antonio Sarkis Jr., the measure favours Brazilian exporters, as it includes a series of articles that are manufactured in Brazil. “And the remaining products, which are not currently sold to Egypt, may enter the market,” he stated. In terms of foodstuffs, for example, the decree sets a 5% tariff for butter in packages smaller than 10 kilograms and exempts other types of butter and cream cheese; also exempted are cheese in package smaller than 10 kilograms, several types of rice, soy oil, preparations for children’s foods, and some foods for medical diets. Sarkis called attention to the fact that Egypt has a population of more than 70 million and already is a steady partner with Brazilian agribusiness. The main products currently exported by Brazil to the Arab country include beef, sugar, soy oil and chicken. The Egyptian government should soon cut the 30% tariff on chicken imports as well. Many countries have been attempting to increase food supply in the domestic market and reduce inflationary pressure on these products. Others, as is the case with Argentina, have been imposing tariffs even on exports, so as to prevent depletion of local food resources. This reflects a worldwide rise in consumption and prices for several types of food. To the International Promotion director at the Ministry of Agricultural, Eduardo Sampaio Marques, this phenomenon is good for Brazil, as it leads to growth in the demand for Brazilian products given the fact that the country is still capable of a strong expansion in its agricultural and livestock production , increases profits for national farmers and, therefore, encourages them to produce more. He asserted, however, that there is a limit: prices cannot go too far up, to the point in which impoverished populations around the world are no longer able to buy food. “No one wants to see people starve”, he claimed, alluding mostly to countries of little agricultural tradition and that do not count on income transfer programmes. It is a complicated equation, as on the one hand, rising costs tend to benefit poor agricultural workers, but on the other hand they may harm those who do not have direct access to agricultural goods. But the Egyptian decree does not include foodstuffs only. It also lists products such as several types of cement (exempt), coal coke (5%), plastic for card manufacturing (exempt), several parts for machinery (5%), certain steel products (exempt), rods (exempt), refrigerators and freezers (30%), solar heaters (exempt), boot and shoe lasts (2%), life jackets and safety belts (5%), among others.

Originally published by Info-Prod Strategic Business Information.

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