Egypt And Russia Schedule FTA Talks

by Lorys Charalambous, Tax-News.com, Cyprus

15 March 2010

It has been announced that the negotiations for a free trade agreement (FTA) between Egypt and Russia will be held during an official meeting between the two countries in July this year.

It is hoped that the conclusion of a bilateral FTA in as short a time as possible would provide a boost to what is already a significant trading relationship. For example, total trade between Egypt and Russia was reported as already reaching a total of over USD2bn annually, and is targeted to reach USD4bn. There are also a growing number of Russian tourists visiting Egypt.

In addition, Russia is said to be committed to investing further in Egypt. There are prospects for a free-trade industrial zone for Russian investors near Alexandria and for projects in the energy sector, including Russian tenders for the construction of Egypt’s first nuclear power plant.

Apart from nuclear technology, Egypt is also looking to increase imports of Russian wheat and heavy machinery. While there have been some problems with wheat imports in the past, the two countries are now examining a framework of prices, quality and shipping to support the trade.

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