In compliance with the WTO agreement, consultation request has been presented by both the US Delegation and EU delegation in the WTO to the Egyptian government regarding reducing customs and tariffs on the importation of apparel and made-up textile products. The Egyptian President Hosni Mubarak issued Decree No.35 of the year 2004 for customs exemptions for textile machinery & dye stuff, and tariff reduction for fabric and textile industries, which came into force from 21/1/2004 in all ports and harbors in Egypt. .
The decree included applying 40% tariffs on the imports of the apparel, and 12% on imports of yarns, and 22% on imports of all kinds of fabrics, and 35% on the imports of home textiles which include blankets. Curtains, bed sheets and towels. Also, the Decree exempted the textile machinery and its spare parts, and chemicals and dye stuffs from customs. .
The decree is targeted to enhance domestic industries, promote foriegn direct investment and support the competitiveness capabilities of national products. .
Formerly, on January 6th, the Delegation of United States requested consultations with the Government of Egypt regarding the tariffs applied to textile and apparel products. Meanwhile, the EU Communities has requested joining the US Delegation in the consultations with the Egyptian Government on January 20th. The target from these consultations negotiating the Egyptian government to decrease the tariffs and customs on textile and apparel imports, as Egypt applied specific duties (i.e. in Egyptian pounds (L.E.) per piece of clothing).