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Europe Daily Bulletin No. 8723
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GENERAL NEWS / (eu) eu/euromed/egypt

On 14 June, Association Council holds first meeting since agreement took effect

Brussels, 10/06/2004 (Agence Europe) - On Monday 14 June in Luxembourg, the EU and Egypt are to hold their first Association Council session. The association agreement signed on 25 June 2001 has been in force since 1 June 2004. One of the main steps to be taken by the Council will be that of adopting its internal rules of procedure providing for one annual session to be held, alternatively chaired by the two parties, and as many intermediary sessions as required.

In substance, the agenda of the session will allow initiation of the political dialogue that the EU plans to strengthen with all its partners in the region, in both bilateral and regional meetings, geared to a request to safeguard and strengthen citizens' freedoms and rule of law. The European Commission welcomes the willingness of Egypt, which has agreed to enter into specific "open" dialogue on this theme at an informal meeting on 10 May in Brussels.

In this way, the aim is to "encourage" Egypt, which is an "important partner" in the region, to make the "state of emergency" regime in force more flexible and to "release prisoners" detained under the regime. The EU also encourages Egypt to make progress regarding the rights of women and children as well as on cultural and religious tolerance and towards sexual leaning. Egypt, which is congratulated for its initiative to create a National Council on Human Rights (NCHR), is called on to sign up to the conventions in this connection like those on the fight against terrorism, against organised crime and against the proliferation of weapons of mass destruction (WMD). In the context of this political dialogue, the EU and Egypt plan, on Monday, to exchange their views and analysis of the situation in the region and neighbouring countries (Iraq, Libya, Agadir agreement, Sudan, Africa). Examination of recent developments concerning EuroMed dialogue, neighbourhood policy and the EU's overall project for partnership with the region is also foreseen.

Enlargement and its consequences form the backdrop to the exchange of views on economic, commercial and financial cooperation. This new EU enlargement must, according to the European Commission, provide an opportunity to strengthen the links with Egypt, a country that currently has economic growth of close to 4% (that Brussels suggests should be consolidated by greater flexibility in the exchange rate system). The EU hopes the association agreement will be well applied allowing the reform effort of the Egyptian economy to be supported in the best possible way. The Commission plans to direct its support programme along these lines and to help Egypt achieve its economic and social development programme. Good application of the association agreement should also allow trade to be intensified. The Commission notes that the EU currently covers nearly one third of this country's exports (EUR 6.190 million, essentially machines, transport equipment, chemicals and agricultural products), whereas the Egyptians stress the magnitude of their structural deficit with exports down by EUR 3.546 million compared to their purchases in Europe. The Commission promises an effort will be made to support the competitiveness of Egyptian exports to the Community market. Support is also promised in all the areas of trade facilitation (customs, standards, competition, etc.) and in order to support the rate of farm trade, mainly by adjusting the regime for access to the situation arising from enlargement. Further review of the situation is foreseen in 2007.

In order to support these commitments like those taken in the field of economic cooperation (energy, transport, infrastructure, environment, science and technology, etc), the EU is tabling on better use of the EUR 243 million programmed for the period 2002-2006 and on the EUR 509 million from the European Investment Bank.

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