Egypt and Turkey sign FTA

Egyptian President Hosni Mubarak and his Turkish counterpart Ahmet Necdet Sezer witnessed the signing of the agreement on the second day of Sezer’s two-day visit to Cairo, the Egyptian official news agency MENA reported.

The arrangement is to come into effect after ratification by the signatories’ parliaments.

Minister of Foreign Trade and Industry Rachid Mohammed Rachid and Turkish State Minister Kursad Tuzman, who signed yesterday on behalf of their countries, told a news conference on Monday that Egyptian manufactured goods would enjoy duty free entry into Turkey as soon as the agreement goes into effect. Turkish goods would see duties gradually reduced in four phases over 16 years.

Each state is to grant the agricultural products of the other favourable entry conditions.

Cairo is hoping that the arrangement will spur investment and job creation by attracting manufacturers who will draw on product components produced by Turkey’s more vigorous feeder industries.

Trade between Cairo and Ankara for 2005 was estimated at approximately $1 billion.