COMERCIO INFORMAL.

MPC countries have established trade relationships with several countries worldwide. Apart from multilateral agreements within the World Trade Organisation (WTO), each country has signed bilateral agreements with other trading partners. Such agreements are listed below.

Free Trade Agreement between Egypt and EFTA States: Norway and Switzerland were among the founding member states of EFTA in 1960. Iceland joined EFTA in 1970, followed by Liechtenstein in 1991. Norway, Iceland (from 1994) and Liechtenstein (from 1995) are also parties to the European Economic Area Agreement (EEA) with the European Union, while Switzerland has signed a set of bilateral agreements with the EU, (EU, EEAS, 2010. Although the four EFTA countries are small, they are world leaders in several sectors vital to the global economy. The two EFTA Alpine countries – Liechtenstein and Switzerland – are internationally renowned financial centers and hosts to major companies and multinationals. The two EFTA Nordic countries, Iceland and Norway, stand out in fish production, the metal industry, and maritime transport. Accordingly, to make FTA with Egypt would generate mutual benefits. The Egypt-EFTA agreement was signed in Davos in January 2007 and entered into force in August 2007, The Industrial products are treated as follows:

While the Egyptian exports to EFTA shall enjoy an immediate removal of all customs duties and other charges having equivalent effect, Egyptian imports from EFTA states, if they are originating in EFTA, shall be gradually abolished. This procedure occurs according to the schedules of four lists in which Egyptian tariffs are phased out differently over the years starting from the date of entry into force of the Agreement. The tariff reduction on Egyptian imports could be summarized as the following schedule:

List 1: includes the row materials that are important as inputs for most of industries, this list enjoys 75% reduction from the day of entry into force ,and it will be completely liberalized in the second year of entry into force (year 2008). The most important products included in this list are: Aluminum ores, sodium chloride, Sulfur, wood, parts of machines, aluminum oxide, cooper alloys.

List 2: includes the intermediate goods, the tariff phasing out will start in year 2008 and it will enjoy free access in year 2014. The most important products included in this list are: carbon, chemical preparations, papers, glasses, fibers, Tubes and pipes of vulcanized rubber, Insecticides, and Vacuum flask

List 3: includes the final goods, the liberalization of this list will be started in year 2010 and end in year 2017. The most important products are apparel, textiles, shoes, iron and steel, electrical equipments and machines.

List 4: includes mainly vehicles and some of the electrical engines and generators. This list will be liberalized in ten years (2011-2020).

It was agreed that the agriculture file would be dealt with on a bilateral basis. A List of agriculture exports to each EFTA member country was prepared, as well as lists of imports of agriculture products from member countries, in accordance with Egyptian interests. Both parties agreed on the list of Egyptian exports that is to be accorded preferential treatment by EFTA countries, equivalent to the preferential treatment accorded to EU countries for 5 years. This preferential treatment will not be reciprocal. Negotiation is to take place by the end of the 4th year to the effect that Egypt accords the same preferential treatment to goods of EFTA. An article was agreed upon regarding the protection of IPR according to the Egyptian interests and the annex regarding trade in fish was agreed upon, according to the Egyptian interests. Both parties of the agreement apply the PAN-EURO-MED rules of origin, which allows products produced from materials originating in any of the Euro-Med countries to enter the EU market with Pan-Euro –Med preferences. Therefore, Egypt and EFTA can benefit from the PAN EURO -MED by establishing originating integrative industries and export them into the EU market.

A certain country can enjoy this accumulation, if some pre-conditions are satisfied. These are: (a) All participating countries must conclude FTAs among each other (such as Egypt-Turkey FTA), (b) All participating countries must conclude FTAs or Association Agreement with EU (such as EU- Egypt Partnership Agreement and the custom union between Turkey and EU), (c) participating countries, must employ the Euro-Med rules of origin.

Lebanon is not a member, but it is still in the process of accession to the World Trade Organization (WTO). In 1999 Lebanon was granted the status of observer. The working party was established in 14 April 1999, then the Memorandum on the Foreign Trade Regime was circulated in 13 June 2001. The first meetings of the Working Party was in 14 October 2002 and the Seventh meeting of the Working Party was held in October 2009. Multilateral work is proceeding on the basis of a revised draft of Working Party Report and bilateral market access negotiations are conducted on the basis of revised offers on goods and services.

A number of areas where Lebanon has to bring its legislation into WTO compliance have been identified. Areas of concern included the lack of conformity with WTO requirements on sanitary and phytosanitary measures, technical barriers to trade, import licensing and intellectual property. Lebanon is among the most open countries in the region. It has less restrictive for trade than other countries in the region . At present, more than 84% of customs tariff lines have duties equal to 0 or 5%, and tariff peaks do not exceed 75%.

Lebanon also does not maintain any tariff quota system other than on potato seeds. However, Lebanon prohibits the importation of around 326 goods for various reasons (i.e., health, safety, and environment). It also regulates the importation of drugs, while it requires import licensing for around 79 tariff groups. As for export, only a few goods are subject to taxes, licenses or quotas. Exporters must simply comply with registration requirements.

Jordan: Within the context of its accession to the World Trade Organization (WTO), which came into effect on April 11, 2000, Jordan undertook several reforms to bring its economic policies and trade regime into compliance with the WTO agreements. Special legislations of intellectual property rights were amended and drafted. Laws of Standards and Metrology, Agriculture, National Production Protection, General Sales Tax, Customs, and Import and Export were amended, as well as non-Jordanians' Investments Regulations.

On the other hand, and because of joining WTO, Jordan liberalized its services sectors providing market access to foreign investors and service providers of WTO Members in accordance with Jordanian laws and regulations. Whereas in goods' trade, Jordan committed to reduce customs tariffs to reach 30% as a maximum in 2000, to be reduced to 25% in 2005, and to reach 20% in 2010 with the exclusion of a limited number of goods. Customs tariffs on some agricultural products, such as tomatoes, cucumbers, and olive oil are bound at 30%, while the maximum tariff on certain agricultural products such as citrus products, grapes, garlic, and figs, and would not exceed 50% in specific calendar months.

Jordan finished with success the first review of its trade policy within the framework of the World Trade Organization during the period 10-12/11/2008, which is first review since Jordan's accession to the WTO in 2000. In its statement addressed to the trade policy review body and the Member States Jordan shed the light on the importance of the role played by the review mechanism in promoting the principle of transparency and deepening the understanding of Member States of the policies exercised by the member under review. The revision was conducted for the reforms made by Jordan to promote its economy, assuming that the adoption of the economic liberalization leads to economic growth despite the various challenges facing the Jordanian economy. These challenges are mainly poverty, unemployment and inflation as well as the current global financial crisis. Jordan also highlighted its next steps to liberalize further the economy to ensure full integration in the world economy and stressed its commitment to fulfil all its obligations under the World Trade Organization, which have contributed positive results in terms of economic growth and increased exports.

Associated with opening economy policies of Jordan, several bilateral agreements were established with Asian, North, and South American countries. It seems that such agreements have promoted the Jordanian trade volume. E.g., In July 1997 Jordan signed an -Investment Promotion and Protection Agreement with USA. However, it was entered into application in June 2003. In October 2000, Jordan also signed a free trade agreement with the United States, and as a result, exports to the United States have risen rapidly. In 1999, Jordan provided US$13.1 million worth of exports to the United States, and in 2000, this figure had jumped to US$27 million.

Syria is seeking to join the WTO, which will lead to specific rights and obligations that will make it easier for Syria to enter into the international trading system. Most of the reforms undertaken in the recent years are in the direction of building trade policies that are more transparent and compatible with the international trade rules.

Syria first applied to join the WTO in October, 2001, and then “reaffirmed” its application in February, 2004. In 4 May 2010, the General Council formally accepted Syrian application for accession and Syria is now an observer country in the WTO waiting for the establishment of the Working Party for the country.

Actions Taken by Syria for Joining WTO: Principal lead and coordination responsibility for Syria’s

WTO accession goes to the Ministry of the Economy and Trade which is monitoring and overseeing the overall process. Preparations for joining the WTO started far before the acceptance of the application. Through which, the texts of the agreements included in the WTO was studied by

technical persons and all other activities and negotiations concerning agricultural issues were followed.

Moreover, Syria has the following bilateral trade agreements:

Ten agreements for promoting economic and investment cooperation between Syria and Cyprus were signed in 2005. One of the agreements is an executive program for an agricultural cooperation.

Syria and Germany reached an agreement in 2007 aiming at contributing in economic and social development in Syria included paying € 10 million to the Syrian part to enhance its economic and social reform. The agreement also included supporting institutional projects for water sector. Furthermore, Two agreements with Germany in 2009 to provide a grant by 3 million Euro to the Syrian association for small finance, which supports financing small, medium and too small family projects.

An agreement to encourage and protect mutual investments and avoid custom duplicity between Syria and Czech was signed in 2008.

Syria and Romania signed three agreements in 2008 for cooperation in protecting investments and avoiding custom duplicity. Another agreement with Romania signed in 2009 to encourage and protect investment.

An agreement with Italy in 2008 for cooperation in financial and technical fields through which a loan for Syria of 60 million Euro and a grant of 20 million Euro will be given for services and infrastructure projects

An agreement with France in 2009 to initiate a branch for the France development agency to encourage France investment in Syria and activate the Syrian –French Business Council in Paris.

Syria and Yemen signed an agreement about sea transportation between Syria and Yemen in 2005. The two countries signed several agreements and executive programs in 2007. One of the signed executive programs was dedicated to cooperation in environmental protection, and another was for cooperation in terms of fisheries. There was also another signed executive program for agricultural cooperation.

Syria and Oman in 2005 signed several agreements, including an agreement for prohibiting tax duplication. Other agreements about promoting investments and cooperating in terms of shipping and land-transportation were also signed.

Syria and Tajikistan signed in 2007 eight agreements and memorandums related to economic, scientific and technical cooperation, beside encouraging mutual investments. Syria and Russia signed in 2005 an agreement to encourage mutual investments. The agreement aimed at establishing the proper loyal conditions, and securing the needed guarantees for mutual economic activities.

The Syrian and Chinese governments signed in 2007 several agreements and accords. The agreements include activating the economy, cooperation in terms of investment and commercial, higher education, transport and communications. On the other hand, the two sides signed also a memorandum for cooperation in international meetings, in terms of economy and trade, and particularly in terms of supporting Syria's accession to the WTO. Syria and Malaysia signed in 2007 a memorandum related to sea and air shipment, and an accord with the Malaysian Industry Promotion Board that controls investments there for promoting and protecting mutual investments. The two parties also study the possibility of

initiating free trade area between the two countries. In addition, the two countries signed in 2009 two agreements for encouraging and protecting mutual investments and also a memorandum included a program for cooperation in terms of supporting setting up small and middle-size enterprises.

Syria and South Africa signed an agreement for avoiding custom duplicity in 2007. The two countries also reached several agreements about encouraging mutual investments, economic, commercial and technical cooperation.

An agricultural accord was signed by Syria and Bahrain first in 2002, and then in 2007 a letter of agreement on agricultural cooperation program was signed. The program comprises agricultural research about salinity and drought durable crops, plant production and grassland, protectorates, protecting plants, agricultural quarantine, exchanging information on pests, cooperation on animal production, encouraging and facilitating the exchange of animal drugs and vaccines, cooperation in extensions, and exchanging information on agricultural production and agricultural trade.

The Syrian - Armenian Committee for Economic, Trade, Scientific and Technical Cooperation agreed to establish two technical committees to study various issues. The committees are: the committee of trade, investment, finance and banks; the committee of economic, scientific and technical cooperation. The two countries signed in early 2007 three agreements for economic and commercial cooperation.

The Syrian and Iranian governments signed ten agreements and memorandums in 2008, including an executive program for 2008-2009 for cooperation in terms of environment's conservation, vaccines and animal drugs, specifications and standards. The preferential trade agreement between Syria and Iran was activated formally in 2009.

Syria and Ukraine signed 8 agreements and cooperation memorandums in 2008. The bilateral agreements include economic, trade, scientific and technical cooperation. There was a focus also on facilitating Syrian products’ accession to Ukraine in light of trade imbalance that is in favour of Ukraine. Thus a committee was established to study launching a free trade area between Syria and Ukraine in future.

An agreement with Venezuela in 2009 to set up a mutual fund with a capital amounted to US$100 million financed equally by the two countries to finance investment projects of public sectors in the two countries

An agreement with India in 2009 to establish information and technology training centre in Syria

Tunisia is a member of WTO almost since its creation (March 1995). As such, it adheres to the general spirit of market liberalization and trade promotion. As is well known, WTO agreements rest upon three basic principles: market access facilitation, reduction in internal support to the economy and the elimination of subsidies on exports. By and large Tunisia has been faithful to these principles, even though a formal WTO agreement on agricultural commodities has not been reached yet.

Among the challenging implications of the WTO agreements, as far as the Tunisian exports are concerned, is the increasing emphasis on norms and standards the tradable commodities need to increasingly conform to. One important difficulty with these norms is that they are constantly changing for a given destination. They are also variable from one destination to another.

Furthermore their implementation requires continuous adjustment costs that are not affordable by all traders.

Aside from the EU, Turkey has also signed a number of multilateral and bilateral agreements on free trade, defining preferential trade conditions with EFTA, Egypt, Israel, Morocco, Tunisia, Syria, Palestinian Authority, Bosnia and Herzegovina, Albania, Croatia, the former Yugoslav Republic of Macedonia, Georgia, Jordan, Chile, Serbia and Montenegro. In general, tariff preferences on agricultural products granted under Turkey’s trade agreements are subject to quotas. Turkey is also part of the Euro-Mediterranean Partnership (Barcelona Process) aimed at establishing a free- trade area in the region.