Under U.S. law, Egypt and Israel can establish Qualified Industrial Zones or "QIZs” and export products manufactured in these zones to the United States duty-free
A high ranking Egyptian delegation visited Israel last week to participate in the quarterly bilateral meetings.
The Egyptian delegation was headed by Mr. Sayed–el–Buss, top aid to the minister of trade and co-chairman of the bilateral QIZ committee.
Under U.S. law, Egypt and Israel can establish Qualified Industrial Zones or "QIZs” and export products manufactured in these zones to the United States duty-free. In order for a QIZ article to gain duty-free entry, QIZ factories must add at least 35% to the value of the article. This 35% minimum content figure can include costs incurred in Israel, Egypt, or the United States. By agreement between Egypt and Israel, Egypt and israel must each contribute at least one-third (11.7%) of the 35% minimum content requirement.
Mr. Gabbi Bar head of the Mid-East desk and head of the Israeli delegation noted that since the QIZ agreement came into force bilateral trade with Egypt had improved dramatically. In 2004 Israeli exports to Egypt totaled us$29 million, in 2005 exports totaled US$93 million, up 300% and in 2006 exports were US$126 million.
Israel imported US$77millions of goods from Egypt in 2006 compared to US$49 in the parallel and US$29 million in 2004.
