The impact of non-tariff measures on trade between Egypt and EU : With application on chemicals sector / Ahmed Kamal Heiba ; Supervised Hanan Hussein Nazier

Thesis (Ph.D.) - Cairo University - Faculty of Economics and Political Science - Department of Economics

EU has been historically the largest trading partner for Egypt. Since the EU-Egypt Association Agreement entered into force, import tariffs have been declining significantly. In the meantime, Non-Tariff Measures NTMs have been raising trade concerns.This paper examines the impact of (NTMs) on trade in chemicals sector between Egypt and EU. It draws on information of NTMs notified to the WTO from the Integrated Trade Intelligence Portal (I-TIP). To assess whether NTMs facilitate or hinder trade, a gravity approach has been applied. The thesis has developed two models: one for Egypt chemicals imports from EU and the other for exports to EU.The results reveal that the effect of NTMs appears to be negative on Egypt chemicals imports from EU, but not vice versa.The empirical evidence in this study proves that NTMs are not protectionist in nature, but highlights the importance of regulatory harmonization and mutual recognition to facilitate trade.The current EU-Egypt AA provides for little regulatory integration. However, it opens the doors for negotiating deeper actions for integration based on assessments of costs, benefits, and trade opportunities. Decision makers, on both sides of Mediterranean, should negotiate main areas of technical cooperation, automation of customs procedures, and building capacities to foster trade. Meanwhile, researchers could study the supply chain in different sectors to determine policy reforms and prioritize needed actions for NTMs harmonization

Issued also as CD