Egypt confirmed last week that Israel the United States and Egypt will sign on Tuesday an agreement on Qualified Industrial Zones.
According to the agreement,Egypt will gain tariff-free access to the U.S. market for some key goods under a joint Israeli deal widely seen as a result of warming ties between the two Mideast countries.
In a statement, the Ministry of Foreign Trade and Industry said that the agreement will enable Egypt to declare tariff-free zones around certain clusters of factories. The products would enjoy tariff-free access to the United States as long as 35 percent of their value had been added within the zones and as long as 11.7 percent had been made in Israel.
The agreement, which is expected to come into force in early 2005, will be signed on Tuesday by Israeli Deputy Prime Minister Mr.Ehud Olmert, U.S. trade representative Mr. Robert Zoellick and the minister of foreign trade and industry in Egypt, Mr. Rachid Mohammed Rachid.
According to Egyptian economists, Egypt could enjoy a 10 percent jump in its annual exports to USA, which are currently worth about $560 million.
