Israel and Egypt want US administration to expand QIZ agreement

Egyptian Minister of Foreign Trade and Industry Minister of industry Rashid Mohamed Rashid and the Israeli Minister of Industry, Trade and Labor Ehud Olmert have both put forward a forma request to the US government to expand the qualifying industrial zone (QIZ) agreement for tax exemption on joint exports.
 
The two ministers approached United States Trade Representative Ambassador Rob Portman with a formal request that the US administration would approve additional three industrial zones in Egypt to the existing agreement.
 
Olmert believes that the addition of three new QIZs could lead to a substantial rise in Egyptian exports to the US.
 
A spokesman for the Israeli minister noted that Two of the three new zones that are the subject of the request are in the Greater Cairo area, and the third is in Ismalia.
 
Qualifying Industrial Zones (QIZ) are geographically designated areas in Egypt determined by the Egyptian government and approved by the US government where industrial products originated in Egypt and satisfying agreed-upon Israeli content - as per predefined rules of origins mostly based on relevant WTO rules - are granted free entry into the U.S. customs territories.
 
Selection of the geographical locations of the Qualifying Industrial Zones (QIZ) was based on three main criteria:
 - Actual export statistics of 2003,
 - Export potential in the future,
 - And number of employees in each zone.
 
Seven industrial zones have been identified as satisfying all three criteria: Greater Cairo (South Giza, Shubra Al Kheima, Nasr City, 10th Ramadan City and 15th May), Alexandria and Port Said.
 
These zones are designated QIZs, meaning as stipulated by the agreement that the products made in the zone contain at least 11.7% Israeli inputs.. Such products are exempt from taxes and duties when they enter the US.