New obstacles to the Jordanian exports to Egypt

13-Dec-2022

 

 

The Egyptian government finally surprised a large segment of Jordanian industrialists after activating a decision that requires every Jordanian factory to present a certificate of “conformity to the product” from a third party accredited by it in order for Jordanian products to enter its markets.


They considered that this decision is a complication that will limit the Kingdom's exports to this promising and important market.


They unanimously agreed that the new requirements imposed by the Egyptian government would increase financial burdens and lengthy procedures, which would weaken the competitiveness of the national product and threaten the loss of this important market, which is highly relied upon to increase national exports during the coming period.
It is noteworthy that the “product conformity” certificate, which the Egyptian government requires to be presented, can be obtained from an institution accredited by the Egyptian side to grant conformity certificates. The certificate of conformity means product quality and must be presented by a third party located in the same exporting country.
The Egyptian government issued a decision several years ago that requires a certificate of conformity for imported products from a third party approved by it. The decision was activated early this month, as confirmed by the Amman Chamber of Industry.
Industrialists called on the Jordanian government, represented by the Ministry of Industry, Trade and Supply, to communicate with the Egyptian side and to exclude Jordan from this procedure, especially since Egyptian products enter the Kingdom's markets without administrative complications or any similar procedures.
They stressed the need to implement the principle of reciprocity in the event that the Egyptian side continues to impose obstacles and administrative procedures on the entry of Jordanian products into its markets, stressing that the new measures will force many Jordanian exporters to stop exporting to Egypt due to high costs and the inability to compete.
It is noteworthy that the trade balance between the two countries is clearly in favor of Egypt, as national exports to Egypt during the first nine months of this year amounted to 126.3 million dinars, while the value of imports from it during the same period amounted to 438.1 million, with a deficit of 312 million dinars, according to the latest foreign trade figures. Issued by the Department of Statistics.
In turn, the head of the Amman and Jordan Chambers of Industry, M. Fathi Al-Jaghbir, said, "The Egyptian government has begun to implement new procedures related to requesting a certificate of conformity for the product from a third party approved by it, which constitutes an obstacle and additional costs when the Jordanian product enters the Egyptian market."
And Al-Jaghbir indicated that the Chamber received complaints from two sources in this regard, calling on government agencies to intervene and communicate with the Egyptian side in order to exclude Jordan from these new requirements, especially since trade exchange tends greatly in favor of Egypt.
He pointed out that these new requirements are in addition to a set of previous administrative procedures and complexities imposed by Egypt, the most important of which are the requirements set by Egypt in 2016 with regard to pre-registration of the Jordanian product before entering it, which requires complex procedures and a long time, in addition to procrastination in registering wide products, including medicines. In addition to administrative and technical procedures upon the arrival of Jordanian goods to the Egyptian borders, including the requirement to conduct laboratory tests again and issue certificates from Egypt, especially for food products, which requires a long time and carries large financial costs and burdens for the manufacturer.
Al-Jaghbir stressed the importance of applying the principle of reciprocity when Egyptian products enter the Jordanian market, in the event that the Egyptian side continues to implement the new procedures on Jordanian products, based on achieving justice and equity for the national industry.
Al-Jaghbir indicated that the industrial sector views Egypt as a trading partner in various fields, which requires overcoming and addressing all administrative and technical obstacles in trade exchanges between the two countries to reach economic integration.
The representative of the food industries sector at the Jordan Chamber of Industry, Muhammad Walid al-Jaitan, said, "The new procedures and requirements imposed by Egypt recently, represented in a product conformity certificate from another international party approved by it, constitute a great burden and challenge for Jordanian products to enter the Egyptian market."
Al-Jaitan, who holds the position of vice-president of the Jordan Chamber of Industry, said that the new requirements burden the Jordanian exporter with additional financial costs and burdens amounting to 1,500 dinars, depending on the type, in addition to delays and long procedures for obtaining them, which raises exporters' fears of losing the Egyptian market because of these procedures.
Al-Jitan was surprised that the Egyptian government imposed procedures and requirements on Jordanian products to enter its markets, despite the fact that Egyptian products enter the Kingdom's markets without any similar procedures and with ease, stressing the importance of applying the principle of reciprocity with the Kingdom's imports with Egypt.
Al-Jitan called on the government to intervene and address the Egyptian side in this regard in order to facilitate the entry of products into the Egyptian market, which is considered one of the important traditional markets and is highly relied upon to increase national exports.
The representative of the leather and knitted industries sector in the Jordan Chamber of Industry, Eng. Ehab Qadri said, “The industrial sector was finally surprised by a decision issued by the Egyptian government to request certificates of conformity for wide products from a third international party accredited to Egypt.”
Qadri stressed that the new Egyptian requirements increase costs and financial burdens on the Jordanian exporter, who is already suffering from high production costs, which weakens the competitiveness of national products within the Egyptian market.
Qadri considered the Egyptian procedures and administrative complications as obstacles to delaying the flow of Jordanian products into the Egyptian market, calling on the government to intervene and communicate with the Egyptian side to exclude Jordan from this procedure, in light of the fact that the trade balance between the two countries is highly tilted in favor of Egypt.
Qadri demanded the need to implement the principle of reciprocity in the event that the Egyptian side continues with these procedures, especially since Jordan does not impose any procedures and complications in front of the entry of Egyptian products into the local market.
Qadri pointed out that many countries have begun to put obstacles and non-tariff measures in front of their imports in order to protect their industries and increase the investments flowing to them.









Newsletter

Amman Chamber Location

Zahran Street - Jabal Amman - Amman - Jordan
Phone Number: 0096264643001
Mobile: 00962795202164
Fax: +96264647852
Email: aci@aci.org.jo
P.O.Box.: 1800 Amman 11118 Jordan

All Branches