Israel, US change terms for Egyptian exports to US
Minimum Israeli input required for Egyptian goods exported to the US to be reduced from 11.7% to 9.25 following Egyptian request
Israel and the United States have accepted Egypt's request to reduce the minimum Israeli input required for goods Egypt can export to the United States on preferential terms, Israel's ambassador to Egypt said on Monday.
Under a special trade agreement, designed to strengthen business ties and promote peace in the Middle East, US Duty and quota restrictions are waived on Egyptian goods containing at least the minimum percentage of Israeli components—for example buttons and zippings in clothing.
Ambassador Shlomo Cohen told reporters the minimum percentage would be 9.25%, instead of the 11.7% set when the three countries signed a Qualified Industrial Zones (QIZ) agreement in 2004.
The agreement applies only to factories in the specified industrial zones but the list of areas eligible has expanded over the years. Egypt's textile and clothing exports to the United States have risen sharply since the deal.
Egypt has been pressing for a reduction in the percentage so that producers find it easier to meet the conditions and do not need to buy so much from more expensive Israeli factories.
Israeli Trade and Industry Minister Eli Yishai will visit Egypt on Tuesday to sign an agreement on the percentage with Egyptian Trade and Industry Minister Rachid Mohamed Rachid. He is also expected to see President Hosni Mubarak.
Egypt became the first Arab country to sign a peace treaty with Israel in 1979.
