General Agreement on Tariffs and Trade

GENERAL AGREEMENT ON RESTRICTED L/1816 TARIFFS AND TRADE 31 July 1962 Limited Distribution Original: English

Memorandum on the Commercial Policy of the united Arab Republic

At the meeting of the Coundil in May 1962 a Working Party was appointed which will meet on 15 October 1962 to examine the request of the Government of the United Arab Republic for accession to the General Agreement and to make recommendations to the CONTRACTING PARTIES at the twentieth session (document C/M/10). Meanwhile the United Arab Republic would submit a memorandum on all important aspects of its commercial policy.

The Government of the United Arab Republic has transmitted to the secretariat the following material, which is attached hereto:

A - Tables showing the foreign trade of the United Arab Republic B - A memorandum on export and import policy

C - A report on the structure of the customs tariff

D - A memorandum on the cotton textile industry and its problems of exports

E - The Agreement to facilitate Trade Exchange and to organize Transit between Arab League States

F - The agreements between the Casablanca Charter States: 1 - Treaty establishing the African Common Market* 2 - Agreement on theEstablishment of the African Payments Union*

Contracting parties wishing further particulars on the commercial policy of the United Arab Republic are invited to ask questions and make requests for supplementary information through the secretariat. These must reach the secretariat not later than 31 August 1962 so that they may be consolidated and transmitted to the Government of the United Arab Republic. A document containing these questions and the replies of the United Arab Republic will be circulated as soon as possible thereafter.

*The text of these agreements will be distributed shortly. L/1816 Page 2

FOREIGN TRADE OF THE UNITED ARAB REPUBLIC

Enclosed are tabled showing:

Main exports

Table I Main exports to GATT countries

Table III Main imports

Table IV Distribution of foreign trade and balance of trade with different groups and the percentage of each group

Table V Trade between the United Arab Republic and the GATT countries during the years 1952 - 1959 - 1960 - 1961

Table VI Trade balance during the years 1952 - 1961

Table VII Development of industrial production

Table VIII Relative importance of the United Arab Republic exports of industrial products compared with total exports Table IX Industrial production (value and index of main sectors). (Years 1952 - 1961) L/1816 Page 3

These tables show that:

1 - There has been a marked diversification in our exports, the percentage of the cotton exports to total exports has decreased from 85.5 per cent in 1952 to 62.5 per cent iml1961: Industrial.and other agricultural items are steadily finding their way in the foreign markets. In 1961 the value of mineral and industrial products amounted to 44 million pounds and other agricultural products to about 15 million pounds; the following table shows this trend:

EXPORTS OF THE UNITED ARAB REPUBLIC Value of exports (million pounds)

Agricultural Manufact. Petrol and Other. Year Cotton products products mineral products Total products 1952 126.4 3.6 10.6 3.7 3.7 147.9 1959 110.1 10.4 23.4 10.8 4.4 159.1 1960 134.7 19.2 30.2 9.1 3.3 196.5 1961 104.6 14.8 30.7 13.3 4.0 167.4 PERCENTAGE OF TOTAL EXPORTS

1952 85.5 2.4 7.2 2.5 2.4 100 1959 69.2 6.5 14.7 6.8 2.8 100 1960 68.5 9.8 15.4 4.6 1.7 100 1961 62.5 8.8 18.3 8.o 2.4 100 2 - The component of capital goods, foodstuffs and other materials necessary for the development plan or local consumption comprises the highest percentage of our imports as shown in the following table: IMPORTS OF UNITED ARAB REPUBLIC Value of imports in million pounds Capital Food and Other products Year goods supply (consumer goods) Total goods 1952 103.5 7;3.4 50.0 226.9 1959 135.9 56.0 30.3 222.2 1960 151.5 51.5. 29.5 232.5 1961 158.9 54.9 30.0 243.8 L/1816 Page 4

PERCENTAGE OF TOTAL IMPORTS

1952 45.6 32.4 22.0 100 1959 61.2 25.2 13.6 100 1960 65.2 22.2 12.6 100 1961 65.2 22.5 12.3 100 3 -Similar diversification has taken place in the export and import markets as shown in the annexed tables.

4 - Trade with the GATT countries as indicated in the annexed Table V shows that there has been marked diversification in the United Arab Republic trade among these counties; and in site of the Government policy to diversify trade among different areas and countries of the world, the trade with the GATT countries still constitutes a high percentage, 71 per cent for imports and 54 per cent for exports, the balance of trade with these countries showing a deficit. The general trend of the United Arab Republic trade with the GATT countries is downward on the export side and upward on the import side.

5- In order to facilitate the marketing of our products and to implement the diversification of markets, trade and payments agreements with a great number of countries have been concluded. These agreements are:

(a) Egyptiarn pound agreements

Austria - East Germany - Greece - Guinea - Lebanon - Mongolia - North Korea - Rumania - Sudan - Vietnam - USSR - (Suez Canal dues should. be paid in. convertible currency) .

(b) Free currencies agreements

Afghanistan - Belgium - Burma - Cambodia - Cameroon - Ceylon - Cuba - Cyprus - Ethiopia - France - Ghana - Hungary - Indonesia - Italy - Japan - Liberia - Libya - Malaya - Mali - Morocco - Netherlands - Pakistan - Portugal - Somalia - South Vietnam - Spain - Switzerland - Turkey - Western Germany - Yugoslavia - Niger - Dahomey.

Albania - Bulgaria - China - Czechoslovakia - Poland - Tunisia. (d) Other currencies

India - Iraq - Saudi Arabia (payments to Saudi Arabia should be effected in free currencies, while payments from Saudi Arabia should be settled in Egrptian pounds through Saudi account). L/1816 Page 5

EXPECTED TRENDS OF FOREIGN TRADE

1 - The foreign trade of the United Arab Republic constitutes a high proportion of its national income. The total value of exports end imports represents about 28 per cent of the national income. The development plan aims at doubling the national income in ten years and it is expected that there will be a built-in increase in the value of trade as a result of the increase in the national income of the country.

2 - Tables VII, VIII and IX show the increase in our production and exports in our manufactured goods and in other goods than cotton. This trend is expected to be accentuated since the Government is giving special care to industrialization and enlarging the existing industries and building up new ones. Export targets for different agricultural ard industrial goods are being set up.

3 - After the take-off period. of development and the consolidation of our economy the need for restrictions may decrease. The Balance of Trade and the Balance of Payments which have shown a deficit are expected to improve as a result of the increase of our export capacity and the production of some import substitutes.

4 - During the period of the development plan a continuous demand for equipment and machinery and other items necessary for this plan will take place, such goods which are important items of exports of the GATT countries.

5 - The stabilization programme with the International Monetary Fund and the credit facilities expected to be extended to the United Arab Republic by some highly developed countries in the GATT, as outlined in the separate memorandum on the stabilization programme, will result in an appreciable degree of liberalization of our foreign trade. EXPORTS OF THE UNITED ARAB RIPUPELIC TABLE/TABLEAU I During the Years 1952. 1959- 1960 1961

LES EXPOtRTATIONS DE IA REPUBLIQUE ARABE UNIE en 1952, 1959, 1960. 1961

Unit/ Value in thousand pounds/ A R T I C L E S Unites Valeur en millers de livres 1952 1959 1960 1961 1952 1959 1960 1961 Cotton/Coton 1000 Kantar 126,414 1,10154 134,745 014,610 5,408 6,357 7,483 5,904

Agricultural products/Produits agricoles 1000 tons/ tonnes ,548 10,376 19.202 1, 811 4 4

Tomatoes (fresh)/Tomates (fralohes) n 13 77 90 86 x 4 x Garlic (fresh)/Aulx (frais) 26 288 107 158 1 8 4 4 n Onions (fresh)/Oignons (frais) I 2,310 3,723 3,004 3 ,381 538 180 170 150 Potatoes/Pommes de terre n 211 1,897 2,186 1,1115 1.1 99 150 59 Vegetables and pot herbs/Légumres et planted potagères I 54 121 150 135 3 4 6 6 Fruits H 53 699 1,412 830 2 23 36 23 Rice/Riz n 859 1,957 10,833 8,120 16 149 308 229 Groundnuts/Arachide s n 12 1,477 1,283 779 x 12 13 8 Plants and seeds used in perfumery and pharmacy purposes/Plantes et graines utilisées en parfumerie et en Tonrs/tonrees pharmacie 3 57 54 90 25 137 2a3 353 Material for padding/Matiores de 1000 tons/ rembourrage tonnes 5 8o 83 87 x 5 5

Manufactured goods/Articles~~~~~~~~.-manufacturés 10.634 3,387 3 30.201 30.722 Fish/Poisson Tons/tonne 5 75 95 101 107 426 572 658 Shrimps/Crevettes . 61 115 282 372 -Tomatoes in powder/Tomates en poudre a 9 8 27 Dehydrated garlic/Aulx déshydrates 12 6 6 9 70 35 32 3 oni-ns/oignons déshydratés 1000 tons/' tonnes 287 881 598 720 2 7 6 Wheat/Blé 341 77 161 149 11 2 5 4 Oil of cotton seed/Huile de coton Tons/tornnes .5 136 160 33 -11559 1,759 439 Oils, fats and butter/Huiles, graisses et beurre IIn 2 4 22 46 9 31 218 450 Sugar; refined/Suce raffiné 1000 tons/ tones 20 225 1,638 2,428 6 48 68 Nelases (edible)/Mélasses (comestibles)s) 321 591 238 322 30 84 50 56 ConfectionerC/confiserie 226 147 67 159 1 1 x 1 Tomatoes(conserved)/Tomates en conserve Tons/tonnen 1 100 29 51 10 818 281 482 Dried leguminous ve/L. egumes secs 1000 tons/ tones 4 84 73 3.28 x 1 1 1 Water natural/Eaux naturelles Tons/tonnes x 169 166 *157 i 1,466 1 ,435 1,363 Alcohol,common, refined/Alcool ordinaire raffén6 1000 litres 75 115 22 38 3,031 2 825 600 1,244 Seed calces/Tourteaux tons/ tonnes 77 214 122 3 5 4 8 sc3idues of oil manufactureéR'sidus de tonnes l'extraction des huiles n 65 102 111 3 6 8 Cigarettes Tons/tonnes 57 35 22 40 40 28 18 29 Tobacco/Pabacs 63 54 52 63 59 40 46 514 Glycerine/Glycerine 38 100 90 83 223 704 645 715 Medicines and pharmace t.specialities/ M6dicaments at sp6cialites pharmaceutiques 26 87 60 59 37 124 101 82 PilnViims 178 167 40 250 20 17 3 12 Essential oils/Huiles essentielles 42 110 149 228 2 5 8 11 ! Perfumes/Parfums 114 120 61 75 268 322 166 188 Prepared products for fertilizing/ Engrais ér6pér6s 108 95 87 5 5 Hides, raw/Peaux brutes 1000tonds/ 36 166 174 330 112 347 247 492 Hides, tanned/Peaux taénees 57 1 53 87 149 141 168 125 198 Rubber tyres for cars/Pneumatiques en caoutchouc pour automobiles milliers 616 1,093 644 59 102 52 Inner tubes for cars/Chambres a air pour automobiles 42 45 39 68 36 L/1816 I-' 6/7-, \ Furniture/Meubles Tons/tonne s 148 2M2 190 183 554 849 597 586. Printings/Imprém6s 1000 tons/ tonnes 323 736 757 910 1 2 2 2 Newspapers/Jaurnaux Tons/tonne s 101 340 58 157 503 705 135 501 Threads of artificial sillc/Fils de sei8 artificielle n 35 526 282 672 80 1,318 696 1,587 Conserved shripps/Conserves de crevettes a 374 412 346 805 1,061 936 TABLE/TABLEAU (cont./sulte)

Unit/ Value in thousand pounds/ PageL/18168 A R T I C L E S Q Unités Valeur en milliers do livres 1952 1959 1960 1961 1952 1959 1960 1961

Artificial silk fabric/Tissus de soie artificielle Tons/ennes 1,976 3,688 1,320 1 ,250 732 1,305 1,555 1,542

Fibros " 21 65 55 67 176 504 464 480 Carpets/Tapis 13 57 60 104 14 67 81 115 Waste cotton/Déchets de coton 1000 tons/ tonnes 103 166 157 208 1 2 2 3 " Cotton yarn/Fils de coton 3,453 6,396 9,926 8,725 7 13 21 18 " Cotton textiles/Textiles de coton 915 5,637 7,877 7,340 1 7 14 11 Raw flax and hemp/Lin et chanvre brute 377 608 620 1,029 2 5 5 8 Articles of clothing and hosiery, of cotton/Articles d'habillement an bonneterie, de coton Tons/tonnes 30 305 130 176 35 350 157 219 Clothing and parts ready made/Articles d'hablllement et parties, de confection 149 62 16.5 109 131 65 168 104 Rags/Drilles et chiffons 1000 tolls/ tonnes 282 279 276 300 11 3.6 18 19 Shoes/Chaussures 1000 pairs/ paires 658 1,040 505 368 861 1,131 309 ' 398 Plate and tiles fibrocerment/Plaques 1000 tons/ et carreaux en fibrociment tones 107 409 584 3 12 17 3 .. . Iron and steel/Per et acier 621 523 22 17 Bars, ot,., iron and steel/Barres, e " en fer et aciar 55 610 605 1 12 12 Copper products/Produits en cuivre Tons/tonno 3 15 99 117 4 23 143 168 Air conditioning eq./Equipement de elimatisation n 36 73 80 53 166 150

Mineral and petroletum products/ Produits min6raux. et prodmts petroliers 3.741 o,828 _9.049 13.331

-Cement/Cimernt 1000 tons/ tonnes 100 1,717 1,441 2,856 19 426 353 689 " Gyp sur/Gypse 4 61 49 3 . . . 17 11

langanase/Mangancse " 746 1,345 947 1,077 168 162 209 240 Common salt/Sel commun 96 214 329 394 80 241 396 376

1 Phosphate/Phosphates 1,139 1,599 1,349 , 547 423 449 302 421 Crude oil/Pétrole brut 3,517 2,898 5,780, 1,081 868 1,809 613 1 105. 48 Benzine/Essence " 21 1,363 1,145 87 Kerosenq/Korosène x 614 :179 91 x 55 13 6 Ilazout, diesel and solar oils/Mazout, diesel oil et solar oil " 1,418 166 632 874 211 20 112 177 Arsihal. and Pitch/Asphalte et brai 187 293 68 50 11 18 5 5

Other products/Autres products 570 4,398 3.296 3,964

T 0 T A L 147,905 159,143 196,493 167,439 ge.9,

L/1-816 Page 9 MAW EXPORTSOFTHEUNITED ARAB REPUBLIC TO MAIN IMPORTING COUNTRIESOF THE GATT/ TABLE/TABELEU II PRINCIPALES EXPORTATIONS DE LA REPUBLIQUE ARABE UNIE VERS LES PRINCIPAUX PAYS IMPORATEURS MEMBRES DU GATT (Value in thou-sand L. E. (Years 1952, 1.960 and 1961)/(Ann6es 1952, 1960 et 1961) (Valeur en milliers de lIiv-res égyptiennes)

Fruits Onions(fresh)/Cignons(frais) Potatoes/Ponunes de terre Rice/Riz Cement/ciuaent I

C o u n treis / Pays 1952 1960 1961 1952 1960 1961 1952 1960 1961 1952 1960 961 1952 i96i 1961

Czechoslovakia/Tchécosiovaquie .. 30 3 95 . 9713 227 Yugoslavia/Yougosiavie 353 105 1.566 Sweden/suède x2 71 91 107 x x Norway/Norvege K 939 146 Aust')'ia/Autriehe 115 134 19 14 .38 113 United Kingdomn/Royaume-Uni x 8 27 835 689 8o8c 368 123 x 78 238 Itaii/Italie 6 .. 15 6 141 67' 8 1 .12 15 Belgium/Belgique 2 14 14 53 92 2 181 1 17 57 w. Germany/Allenagne occidentale 50 93 324 620 798 81 10 719 525 Switzerland/Suisse 5 21 146 103 1.54 9 2 6 France x 1143 70 230 10 x Netherlands/iPays.-Bas 16 36 77 1141 276 239 81 314 91 Ceylon/ceylarn 68 43 170 95 *.. 101 Japaln/3rapon .. .S*0.0 122 United States/Etats-Tlnis- x 6 1 .2 3. . 2 India/Inde ~~~~~~~~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~x952 295 .,3 S5..5

Total of GATT countries/ 2 1459 333 6148 2 CCG 26114 51 1 G87 . 3.17 ..14 8514 3 092 ..12 328 Total, pays mnembres du GATT

ether countries/Au&.res pays Total for all countries/Total, tous pays 31 1 143 831 2 31.0 3 005 3 381 211 2 186 1 146 859 IO 833 8 12C 100 1 1441 2 846 t Page 10 L/1816 Page 10 MAIN EXPORTS OF THE UNITED AFLB REPUELIC TO MAlN IMPORTINGCOUNTIRES OF THE GATT PRINCIPALES EXPORTATIONS DE DA REPMBLIQUE ARABE BNIE VERS IE PRINIPAUX, PAYS IMORTATEURSMEEMBERS DU GATT (cont./suite) 2, Z960 and 1961)/'(Azm es (Value i. thousand L.E.) (Ye)rs 19é2 f96and -1961Y/(Arn6'es 1952, 1960 ot 3961) (Valeur en milliers.Ade..livres 6gyptiennes)

...... Phosphates Crude cil/Pitrole brut Tyres for cars/Pneumatiques C-. - otton/boton -Ootton-yarn/1ls cl. oton. aOount" es/ s Iur automobiles 1952 1960 S963 1902 196o 1961 1952 196o 3961 1952 1960 1961 1952 196, 1961

fechoslovakia/Tchicosiovaquie @ 6 206 @ * 7 150 11 942 19 889 148 849 Yugoslavia/Yougoslavie 66 70 682 81 593 10 072 378 4 1 123 260

Sweden/Sukde @ @ e e 785 94 130 15 143 217

Norway/Norvtge * x x 264 198 169

Austria/Autriche * 1 100 2 227 2 577 141 56 1 United Klngdou;/Royaume Uni 2.7 * * 4 783 2 094 258 7 157 196

Italy/Italie 88 5 1 278 3 993 *0 15 361 5 o1 2 088 x

Bel1gungque* ...... 765 611 548 212 170 W. Germny/A11emzagae ocoidentale : 81 15 . . e 10 568 5 342 1 940 1 1 325 847

Switzerland/Suisse . * . 6 6 . . 6 6 * 4 001 1 351 1 264 41 11

Prance * 17 756 3 629 3 973 68

Netheirlands/Pays-Bas * 1 557 257 141 10 75 2 Ceylon/Ceylan 202 515 v * I 100 51 JaparVJapon 452 357 5 534 4 813 4 268

.. United States/Etats-UnIs 885 * 15 676 6 208 8 291 325 168 1 653 6 738 India/Inde 70 4.93 453 @ . @ 13 419

Total of GATT Gountries/ 893 580 1546 ... 2S4 4 878 682 81 98 849 63 354 53 485 383 3 923 3 063 t;!ota2l, p membres du- OAT- Other countries1Autres pays

Total for all countries/Total, tous pays 1 139 1 349 1 5447 2 898 5 780 3 1 093 645 126 414 134 745 104 6io 3 459 992 6 8 725 L/1816 Page 11 MYAIN MORTS OF THE UNITED ARAB REPUBLIC TO MAIN IMPORTING COUNTRIES OF THE GATT II PRINCIPALES EXPORTATIONS DE NA REPUBLIQUE ARABE UNIE VERS LES PRINCIPAUX PAYS IMPORTATEURS MEMBER DU GATT TABLE/TABLEAU (Value in thousand L.E.) (cont/suite) (Years 1952, i960 and 1961)/(Années 1952, 1960 et 1961) (Valeur en milliers de livres _gyptionnes)

Cotton textiles/Textiles de coton Other products/Autres produits T C T A L C o u n t r i e s / P a y s 1952 1960 1961 1952 i6c 3961 1°52 196o 1961

Czechoslovakia/Tc4i coslovaquie 36 699 1661 7 150 10 946 23 835 Yugoslavia/Yougoslavie x 50 103 17 528 105 614 13 511 1 032 Sweden/Suede 9 15 16 54 44 40 934 397 512 Norway/Norvege 1 4 4 12 51 34 296 292 253 Austria/Autriche 59 x 14 266 304 1 114 2 865 3 182 United KingdoinRoyaume-Uri 433 354 767 748 820 6 400 4 575 3 816 Italy/Italie 44 11 291 743 1 211 15 .546 7 208 7 501 Bel1giur./Belgique 15 90 343 233 910 1 475 015 W. Orermany/PJlemagne occidentale x 122 63 451 894 743 11 425 9 153 5 034 Switzo-rland/Suisse x 26 17 90 701 547 4 137 2 236 2 022 France ' 180 37 218 18 162 3 746 4 421 Netherland/kTethr1ands/Pays-Bas 229 152 252 894 728 1 886 1 820 1 58o an1ylo/cay1an 2 8 429 7 322 699 773 Japan/Japon 2 222 494 259 6 208 5 307 *o8 Vztcd States/Etats Unis 2 014 333 1 102 661 676 16 784 9 939 10 353 India/Inde a 5 5 13 522 13 446 8 148

Total orGATT countries/ 25 Total, pays mmembres du. GATT 3 047 1 157 3 559 7 537 7 591 105 410 87 615 78 485

Other countries/Autres-pays Total fcr all countries/Total, tcus pays 916 7 :17 7 340 12 !!55 1" 727 22 468 147 907 196 493 167 439

. .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ TABLE/TABLEAU III DISTRIBUTION OF PRINCIPAL ARTICLES FO IMPORTS ACCORDING TO THEIRUSE IN 1952,1959/1961 DISTRIBUTION DES PRINCIPAUX ARTICLED'IMPORTATION ENTRE LEURS DIVERS EMPLOIS.OIS, E521e2?-t 1959Z/1 p

Value in thousand LE./Valeur en milliers de Quantity/Quantites ARTICLES Unit6s livres Egyptiennes 1952 1959 1960 1961 1952 1959 0196o 1961 .-.4.- A. Capital goods and articles/Biens et articles d'eQuipement 1. Mineral products (other than kcerosene)/Produits mineraux (autres que le k6rosene) 11.531 LL845 .20q5 ?24..&4 Petroleum and mineral oils crude 1000 tons/ for refining/l'crf:l et huiles tonnes min6rales, bruts pour raffinage 496 9,846 11,149 14,141 96 1,539 2,077 3,211 Benzine/Essence 1 ,349 422 248 199 77 21. 13 10 Oils, mineral, lubricating/ Huiles nlin6rales lubrifiantes 1,558 1,753 1,647 2,073 11 53 Oils, mazout, diesel, solar/ Huiles de p6trole, mazout, diesel oil ct solar oil 11 5,753 4,668 4 ,318 2,043 632 607 269 Coal/Charbon 1,464 401 1,619 3 ,118 205 88 345 329 2. Chemical products (other than pharmaceuticalss. colours, varnishes, fertilizers/Produits chimiques (autres ciuc plarmaceu tiques), coulours, vernisnengrai 21.501 21,824 22 829 19.386 Chemical ptioducts, sodium and potassium compounds/Produits chhiques, composes du sodium et du potassium 4,164 8,687 4,643 4,809 125 1C6 Pertilizers/Engrais n 13,724 6,713 9,035 4,099 629 35 26 552 Extracts for colouring and tanning/I ' Extraits tinctoriaux et tannants I 1,787 4,456 4,044 2,695 i 17 Wood, cork, articles made of:/&Bis,| liege et ouvrages de ces matieresi 7.818 7L453 8 .5- 10 L2 Wood for building/Bois de construc- U 5,263 48845 6,563 8,498 152 189 238 tion Wood, veneering sheets, plywood/ Bois do placage et contreplaque i 298 1,012 11,063 1 ,141 c 14

Articles of stone, ceramic. glass and glasswaire/ouvr es en Pierre ou corai-Aiue. vcrre et ouvrafes en vcrre 3.178 a2a 2L21 Articles of stone/Ouvragos en pierre 678 714 672 609 lo 8 7 n Ceramic/c6amique 1 ,041 1,046 1,439 682 3. 17 9 Glass and t1sswr^ru/vurro et ouvrages ei verre 1,459 992 1 ,000 925 1; 11

Common metal and manufactures thereof/Meitaux conmuns et de ces ouvrages mcetaux 18aA88 225 3 A.3i42 Fig-iron and steel/Fonte et acier 12,564 14,057 18,030 18,502 1.9.1. 193 232 285 I Copper/Cuivre 1 ,169 1,151 1,582 1 ,185 3 4 7 Aliuminium 11 390 949 984 969 1 3 3 3 Tin/Etain tons/tonne s 566 531 295 699 664 690 362 8 Machinuer and auz~ajrpu and electric materials(other than consublers' 90odslI Machines et appare'.ls. matorie. electripue tautres des biens OD 2je as% de consommation) 22 .8Q 3 431 . 418o8 Engines, stationary, intern,0 combustion/Noteurs fixes a combustion interne ou a explosion 1000 units/

pieces 989 3. .IJ.02 ,029 1 ,712 5 6 5 TABLE/TABLEAUIII (cont./suite)

Value In thousand LE./Valeur en Uni/ millers de Quantity/quantités ARTICLES ivres Unités Eayptiennes 1952 1959 1960 1961.- 2 1959 1960 1961 k

Parts of engines-and pumps/Parties de. moteurs et pompes 1000 tons/ tonnes 1,010 1,690 1,347 1, 592 2 2 2 2 Tractors/Tracteurs 1000 Units/ pieces 794 1,248 2,623 1,907 2 2 2 2 Apparatus, lifting, and loading or unloading cranes and others/Appareils de levage, grues pour le chargement ou le 1000 tons/ le déchargement et autres tonnes 689 524 632 908 2 2 2 3 Machines and looms for weaving and parts /Machines et metiers a tisser et leurs parties 2,112 6,505 6 ,1417 4,794 5 14 13 9 Machinery and apparatus for industry or agriculture/ Machines et appareils pour industries ou l'agriculture 1,754 9,537 9 ,043 3,553 18 18 6 Parts of machinery and mech. and transmission apparatus/ Parties de machines et d'appareils mécaniqucs ou do transmission 2,259 2,4'5 3 .354 2,816 7 6 8 7 Generators, motors and transformers, electric/ Générateurs,moteurs et transformateurs, " électriques 993 1,244 1,142 1,500 2 2 2 3 Apparatus elect. and parts/ Appareils électriques et " leurs parties 1,788 3,439 3,527 2,868 3 5 5 5 Cable, elect. isolated/ Cables isolés pour l'électricite " 1,860 2,725 1,045 1 ,422 9 14 6 7 7. Means of transport other than motor -Cars/moyenis de transport autres aue les automobiles " 8.042 11,142 ..36 16,391 Wagons, railway roads and " parts/Wagons de chemins de for, et leurs parties 8393 1,522 1,031 4,076 6 11 6 12 Lorries/Camions 1000 Units/ pièces 1 927 58, 160 2,019 670 325 177 Lorries, chassis/Chàssis de " " canions 1 ,169 2 ,178 1 ,419 1,291 1,056 1,886 ,1248 1,605. Juses/Autobus et autocars " " 201 " 791 753 911 55 339 284 239 Buses, chassis/Chassis d'autobus et autocars 169 26 54 5 212 14 2 Parts and accessories for automobiles and motors/ Parties at accessoires pour automobiles et 1000 tons/ nioteurs tonnes 1,797 3,224 2,152 1,834 2 3 2 2 Aeroplanes and ships/Avions et navires 1 ,3118 1 ,920, 4,726 6,646 2 45 12 Tyros, rubber for automobiles and aeroplanes/ Pneumatiques en caoutchouc pour automobiles et 11000 units/ avions pices 1,563 471 172 167 104 38 14 10

8 Raw materials and paper/ Matiéros prenieres et paper 12,860 15.930 20.929 22.165 Tobacco and tombac leaves/ Tabacs et tombans en feuilles 1000 "ons/ tones 4,856 5,190 5,242 5,155 12 12 12 12 Pulp for paper making/Pate a

paper " 543 1,270 1,675 1,887 14 20 29 35 Paper wrapping/Papier d'emballage 1,011 1.149 1 ,802 1,637 10 15 25 22 816 .- ,. .

...... I i /.~~~~~~ TABLE/TABLEAUIII (conit./suite)

Value In thousand LE/valeur en milliers de Quantity/Quantites ARTICLES Unit/ livre 15 Units Egyptienneslivres Egpine Page 1952 1959 1960 1961 1952 1959 1960 1961 Paper, printing, writing/Papier 1000 tons/ d'imprimerie et papier a écrire tonnes 1,03k 1,749 3,095 2,889 29 35 49 Jute, raw or processed/Jute brut 1-4 ou ouvré 125 444 1 ,206 3,380 1 7 12 Jute woven fabrics/Tissus de Jute 24 756 182 811 4 2 Wool, raw/Lamne brute 690 7 5 1,675 3,101 4,014 3,265 1 3 4 Rubber, raw/Caoutchouc brut 3 58 596 1,383 1,056 x 3 6 Oils, fats and butters, animal 6 or vegetable etc. for industry/ Huiles,graisses et beurres, animaux et vegétaux, etc. pour l'industrie 1,601 2,092 2,490 2,160 16 30 36 33 Silk, artificial, yarn/Fils de soie artificielle tons/tonnes 1,201 157 211 46 1,674 292 237 49 TOTAL 103,483 135,906 151,500 158,873

B. Csuntion goods and foodstuffs/ Biens de consomnation at denrees alimentaires : Consunition goods/Bjlens de consommation O.,606 51 ,789 46.976 50.512LO Bovine species/Bovins 1000 heads/ t_tes 1,216 1, 595 1, 522 1,361 102 140 63 49 MIat/viande 1000 tolls/ tones 7 438 692 1,459 x Wheat/Ble " 3 5 11 " 32,597 16,885 13,458 14,569 710 631 661 Blour of wheat/Farine de b16 730 " 7 ,1 51 10,582 11,266 10,644 '124 Maize/baYs 7114 473 431 1,870 2,347 1,016 2,122 43 107 101 Dried leguminous vegetables/ 51 Legumes secs " 556 192 651 130 12 6 20 Sugar crude for refining/ 4 Sucre brut destiny au raffinage " 507 578 Cotfee/café 1,22° 15 22 41 L,'770 1,303 499 1,377 4 Tea/Thé 5 2 4 6,481 6,654 7,678 8,394 16 19 Oils, vegetable or animal, 20 23 edible/Huiles vegétales ou animales comeFtibleos " 2,343 881 538 3,014 18 8 Sugar refined/Sucre raffiné 4 30 584 27 1 5 1,072 11 1 32 Medicaments and pharmaceutical x products/Médicaments et products pharmaceutiques tons/tonnes 4,305 5,922 4,038 1,544 2,944 2,520 1,415 Kerosene/Kerosbne 1000 tons/ 477 tons 6,726 4,456 5,025 3,597 375 422 336 2. Foodstuffs/Dcnrces a1irowntaizas 7.831 4.220 4.502 4.366 Dairy products/Produits laitiers 1,713 570 599 590 2 Edible vegetables and plants/ 7 3 3 Légumes et plantes comestibles 1,284 798 1,018 Fruits 1,254 39 22 25 31 3,614 2,015 1,626 1,515 64 23 16 19 Preparations of meat and fish/ Preparations de viande et de poisson 1,220 837 1 ,259 1,007 8 8 6 " 5 TOTAL 73,437 55,971 51,478 54,878 TABLE/TABLEAU III (cont./suite)

A Unit/ Value in thousand en de ARTICIES | Uniths LE./valeurlives Sgyptiennes_milliers Quantity/Quantiths 1952 1959 1960 1961 1952 1959 1960 1961 _.. C . Other prineipal artiel-es/Autres| articles ipzortants:

1. Consumtion articles/Articles | do consommation 12_0085f35 5978lQ1 Wool rabrics/Tissus dc laine |tons/tonnes 5,638 239 152 61 1,201 48 46 12 Pure cottonfabric s/Tissus pur coton n 2,161 109 254 179 1,782 63 253 164 Ready made clothes/Vctements de confection U 2,828 2,492 3,652 2,857 11,120 18,159 30,428 16,951 otor cars/Automobiles 1000 units/ piees 2,492 2,3 1 8v86 1,328 5 4 Watchas/montres 54 5 3 889 161 43 88 343 79 22 48 2. Other articles/Autres articles L.7012 7.228 920S1 8,774 Paper,.printing, writing/Papier d'inprimerie et papier a 1000 tons/ 6crire tonnes 2,502 1,899 2,864 3,237 20 23 314 40 ,ielt and ropes/Feutre et 2 cordages 1,016 947 1,382 1,OV'7 2 2 2 3 scientific and od'tical and measuring appliances/ Ap)pareils scientifiques, d'optique et de mosure 1,632 2,481 2,087 2,754 1 2 2 2 Different articles and products/Divers articles et produits n 1,862 1,901 2,718 1,686 3 3 6 Other 2 articles/Autres articles .... 31,005 17,706 114,469 16,741 ..

TOTAL 50,025 30,289 29,498 30,028

KfL IMPORTS/IMPORTATIONS TOTALES 229,945 222,166 232,476 243,779 e16g PC-7.

DISTRIBUTION OF UNITEDARAB REPUBLIC FOREIGN FOREIGN TRADE DURING THE YEAR 1952,1959, 1960 AND 1961 VENTILATION DU COMMERCE EXTERIEUR DE LA REPUBLIQUE ARABE UNIE EN 1952, 1959, 1960 ET 1961 L/1816 TABLE/TABLEAU IV (Value in million Egyptian pounds)/(Valeur en millions de livres égyptiennes) Page 17

DISTRIBUTION (Regions)/ Value of exports (re-exports included)/Valeur Value of imports/Valeur - Balance of Trade/Balance des éch anges VENTIIATION (par region) des exportations (réexportations comprises) des importations 1952 1959 1960 1961 1952 1959 1960 1961 1952 1959 1960 1961

VALUE OF TRADEATALEUR DES ECHANGES Arab League Countries/Pays de la Ligze Arabe 8 .551 19.856 19.627 23,243 13.073 18.330 19,178 17.143 - 4.522 + 1.526 + o0449 + 6,100 United Stetes and important countries of Wistern Europe/ Etats-Unis et pays impor- tents de l'Europe occidentale 87.210 40.221 50, 214 47.006 118.266 128,254 126,510 - 55.099 - 78.045 - 78,040 - 79.504 Eastern Europe and China/ Europe orientale at Chine 25,403 79,328 85.013 72,692 22.469 63.861 56.073 57.868 + 2.534 + 15.467 + 28.940 + 14.824 Other countries/ Autres pays 29,008 21.048 42.903 25.995 4,094 1.709 28.971 42.258 - 20.086 - 0.661 - 13,932 - 16.263

Total 150.172 1160.453 197.757 l68.9-S6 226,39"451 222,166 232.476 2'.779 76.773 7-61.71- - 74.843 ====-_ ======-==-= -== - ----=- PERCENTAGE OF THE TOTAL/ ' C C POURCENTAGE DU TOTAL / % d Arab League Cozzatries/Pays

@, I de la Ligue Arabe 5.7 12.4 13.8 5,3 .2 7.0 cb aO . 0 United States and important countries of Western Europz/ Etats-Unis et pays important s

de . . l'Europe occidentale 58.1 25.1 25.4 27,8 62.7 53,2 55-2 51-.9 . . * * Eastern Europe and Cnina/ Europe orientale et Chine 16,9 49.4 43.0 43.0 9.9 28.7 24.1 23.8 Other countries/ Autras pays 19.3 13.1 21.7 21.6 9.8 12.5 17-3 *-S * . i p i i i I Total 100 100 100 100 100 100 100 ... . - .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-I =---==------TRADE(BETWEEN THE UNITED ARAB REPUBIC AND THE GATT COUNTRIES COMMERCE DE LA REPUB UNIE AVEC LES PAYS MEMBRES DU GATT TABLE/TABIEAU V (Value in thousand. Egyptian Pounds/Valeur en milliers de livres égyptiennes) EXPORTS/EXPORTATIONS IMPORTS/IMPORTATIONS VWalue/en valeur Value/en valeur COUNTRY/PAYS.. _ . : ; 1952 1959 1960 1961 1952 1959 1960 1961 3,France 18,4'1161 3,746 4,426 14,103 I4,437 5,770 5,888 Italy/Italie 15,655 7,305 7,2390 7,524 12,326 10,870 11,192 8,o89 Germany/A11emagne 11,649 7,638 9,280 5,224 12,244 27,898 32,130 26,824 Nethierlands/Pays-Bas: 1,955 3,093.: 1,8214 1,588 10,793 4,152 5,796 3,736 Belgium and) 1.iuemburg Belgique et Lu0embdrg 935 1,435: 1,497 1,G41 6,148 3,134 3,162 1,363 United Kingdom/Royaume-Uni 6,597 4,215: 4,635 4,001 21,649 15.,4'70 13,577. 17,689 D-nmark/banemarkand/Sark 323 416; 281 480 1,198 44474 1041,054 5303 Switzerland/Suiss 4,185 .3,794 2,240 2,043 3,282 5,202 4,182 4,417 S`.w7eden/Su 935 289 399 535 4,421 2,138 1,897 2,812 Norway/Norvbge 297 190 292 253 2,893 ' 557 312 467 APstria/Auriche F 1,114 2;719. * 2,868 3,182 2,031 , 2,25I 2,544 Portugal log10369 427 638 98 67 26 136 Czechoslovakia/pchncoslovaquie 7,152 16,212 12,954 23,837 6,466 8,075 8,036 5,959 Poland/Pologne 1,896 5,747' 7,709 3,399 1,221 2,683 2,857 2,812 Tunisia/runisie 29 22 20 39 69 .31. -- 5 Ghana . - 26 21 88 _ _ 58 4 93 Austra].i/Austrjie 594 37 328 1,544 210 486 3,876 Greece/Grbce 3563 1,068 977 1,276 1,209 1J353 573 693 Brazil/Br6sil 1 130 40 ... 982 ].243 42 8 Burma/Birmanie I .. 159. 81 .. ... 2 13 Canada 425 121 258 197 18,366 394 471 663 Ceylon/Ceylan 323 711 699 773 5,497 ,618 588 515 Chile/Chili. 897 221 Cuba 93 31 3,226 3,429 29 1 624 3,561 Finland/Finlande 312 294 358 75 2,181 1,444 1,711 2,241 India/Inde 13,526 6,831 13,475 8,148 4,432" 5,498 9,945 10,695 IndonesiaAndon6se 114 121 435 471 853 370 23 1 Japan/Japcn 6,208 4.,717 5,307. 5,020 1,018 2,970 3,977 8,243 Malaya/tMalaisie 446 266 371 231 917 131 1,323 883 New Zealandiouvelle-Z6lande | .. 1 2 *... * 118 179 Paklstan 1,828 2 1,344 125 170 . .446 1,203,)77 Turkey/Turquie 187 181 210 358 2,932 747 589 443 South Africa/Afrique du Sud 163 88 253 168 1,358 571 553 271 United States/Etats-Unis 16,880 2,061 . 9,957 10,359 35,981 29,959 39,967 46,725 Uruguay 298 94 ...... Yugoslavia/Yougoslavie 614 3,551 13,5L5 1,035 2,71.9 5,207 6,530 6,263

(1) Tot. of GATr oimritrvies/ Total, pays menmbreb du GATT 113,700 78,371 107,C42 91,067 180,339 46,65: 161,84o 1'72,515

(2) Total of' a.ll.cwUitries/ Total, tous pays !150,1!72 160, 45-5. 197,758 -168;936 226,945 222,166 232;3476 243,779

(1) to (2) (1) en pource.Itage de (2) 49% :'' 54% 5 4 80%.. 66% 70% 717 Page18

UNITED ARAB REPUBLIC DURING THE YEARS L/1816 BAEANTCE OF TRADE 1952-1961/BALANCE DES ECHANGES DE LA REPUBLIQUE ARABE UNIE DE 1952 A 1961 Page 19 (Value in thousand Egyptian pounds)/Valeur en milliers de livres égyptiennes)

Balance of Trade/ C:ange compared with previous year as Perceni tage of exports EXPORTS/EXPORTATIONS EORSEOTTOS Balance des regards/Différence par rapport à l'année to imort orts/Rapport YEARS/ Local exports/ Re-exports/ Imports/ changes Prec dente de,des eexportationssortationsauxaux ANNEES de Total Importations Value of ValueofValve of imports/imports! ations en pour Exportations Riexportations exports/ cent produits indigénes Valeur des exporta- Valeur des impota- tions tions- 1952 147,907 2,265 150,1.72 226,945 - 76,773 - 57, 170 - 18,41o 66.2 1953 141,072 1,482 142,5523 179,962 - 37,409 - 7,619 - 46,983 79.2 1954 142,293 1,566 143,859 164,523 - 20,664 + 1,3o6 - 15,439 87.5 1955 144,631 1,374 146,005 187,259 - 41,254 + 2,146 + 22,736 78.0 1956 14o,941 1,390 142,331 186,13 4 43,803 3, 674 - 1,125 76.4 1957 170,264 1,287 171,551 182,562 - 11,011 + 29,220 - 3,572 94.0 1958 165,098 1,201 166,299 240,170* - 73,371 - 5,252 + 57,608 69.2 1959 159,143 1,310 160,453 222. 166 - 61,713 - 5, 846 - 18,004 72.2 1960 196,493 1,2646 197,757 232,476 - '4,719 + 37,304 + 10,310 85.1 1961 167, 439 1,497 168,936 243,779 L - 7,843 - 28,821 + 11,303 69-3

*Including 7.9 million pounds9etroleum oil, crude and products)/products )/ Y compris les importations de pétrole brut et produits pétroliers, d'une valour de 7,9 millions de livres. INDUSTRIAL PRODUCCTION/PRODUCTION INDUSTRIELLE VII L/1816 TABLE/TABLEAU Page20 PRODUCTS/PRODUITS UNIT/UNITES 1952 1958 19611960 .1 i -- Cotton yarns/Fis de coton 1000 tonls/lO0O tCoflfes 56 91 105 lax( products) /Produits en lun toms/tonlacs 800 1400 980 11.00 1476 Knittings/tricots 1.0(W.C~ /1000 c7.ouz'aines 1649 75257 144oo 41840 6144 Jute yarn & n lot/IV~ils et 6toffes de Jute tons/toynnes 7800 10500 249,00' 44860 10 Raymade clothes/V'gtements de confection 1000 tons/OQ tomies 175 15 16, 206 Pasteurized milk/ILait pasteuris6 4700 5000 854,5 10749 Frozen shrximps/Crevettes congel6es tO rs/oIncm 500 881 1073 1116 Sauce, conserved vegetables & legumin./ totonc-OInnnc-s 1000 2560 75200 3419 Pauces, conserves do l1gurnes et l6gumes secs Vegetable fat/Graisse v~ge'tale 1000. 'tOn/1OOC tonnes 12 135 15- Sugar/Soucre 1000 torm/1000 tonnes 189 7506 7525 3559 -Botti. /millions de Mineral 'water/E~au min4rale do bouteilles 156 7550 7585 518. Asote fertilizers/Engrais azote's lOOC tons/1.000 tonnos 75. 7515.7 Pencils/Crayons 12 d,doz ./12 douzaines 60 98 106. Tyres for cars/Pneumatiques pour automobiles lOOC,1000/Milliior 200 295 4180 562.9Q Insecticides/Insecticides tons/tonines 1100 5000 5100 175517 Round bars and wires/Barros et fils metalliques de section circulaire lOOC 100tons/lOQO0 tones 50 107 1750 160:- 176 Passenger cars autobuses & carriages/ Voitures particulibres, autobus et voitures NumberNumber/pi~ecc3s 1107 1444 Bicycles/Bicyclettes NumbNumber/pie',ces 13896 Sewing machines/Machines à coudre NumbNumber/pi'eces 570 33720 4641 Stoves (kerosene)/Poeles (a' p6trole) lOOC1000/millier 110 1140 140 150' 150. Wireless sets/Re'cepteurs de radio lOOC1000/millier 28 64 102.8 Ellectric machines/M'achines h layer lOOC electriqueswashing 1000/millier 900 960 4696 71757 Ref'rigerators/R6frig~rateurs l00(1000/millier 3 4 15 21.9 Air conditioning sets/Groupes climatiseours NumbNumber/pieces 600 1681 1802 Cement/Ciment 100(1000 tons/10O0 tones 951 1510 1784 2047 2141 Cooking ranges/Cuis inieres tons/tornes 75700 12300 16000 20041 25300

..-. ... L.. .. I...... L....-.. TABLE/TABLEAU VIII REIATIVE IMPORTANCE OF U.A.R. EXPORTS OF INDUSTRIAL PRODUCTS COMPARED WITH TOTAL EXPORTS (%)/ IMPORTANCE REEATV DES EXPORTATIONS DE PRODUITS INDUSTRIEM DE LA R.A U.2 PAR RAPPORT AUX EXPORTATIONSTOTALES (en pour cent)

TOTAL EXPORTS L.E./ EXPORTS OF INDUSTRIAL PRODUCTS L.E./ RELATIVE IMPORTANCE %/ Y E A R/ EXPORTATIONS TOTAIES, EXPORTATIONS DE PRODUITS 4IORrANCE A INDUSTRIEES, RElATIVE, N N E E VAIBUR EN LIVRES VALEUR EN LIVRES EGYPTIENNES EN POUR CENT EGYPTIENNES .__. __ 1955 146004882 33533183 23 % 1956 1412330516 35925887 25 % 1957 171551535 41325172 2 % 1958 163777692 4673269D 29 % 1959 154258980 34884116 23 % 1960 191557556 47925361 25 %

roo\ INDUSTRIAL PRODUCTION/PRODUCTMIN INDUSTRIELIE L/1816 TABLE/TABLEAU IX Page

Value of production (Mil. LE.)/ PRODUCTS/EFRODUJITS | Valeur de la production, en millions INDE (1952 = 100)| de lives _gyptiennes INDICE- (1950100) 1952 1958 1959 1960 1961 1952 1958 1959 1960 1961

Manufacturing industry/ 266 423 558 598 100 178 210 225 Industrie manufacturibre 47.3 160 Mining industries/ 4 6 7 8 8 100 148 194 208 209 Industries extractives Petroleum i.ndustr.1 Industrieustrie petrolierepetrolibre. 34 61 58 66 74 100 179 168 194 218 Electric power/ Energie 6lectrique 18 21 29 37 100 181 212 292 .370 Total 314 508 559 661 717 100 J.62 178 211 228 _==a:--=-~_=a=.3-3 _= _===~__==--==r_=--=_i= L/1816 Page 23

EXPORT AND IMPORT POLICY A. Import Policv The import policy of the United Arab Republic is based on a foreign exchange budget the main features of which are the following:

1. Available foreign exchange is estimated according to the proceeds of exports, visible and invisible, especially the dues of the Suez Canal and the credit facilities which are contracted with other countries and organizations..

2. This available foreign exchange is bisected to convertible and non- convertible currencies. 3. Allocation of the available foreign exchange is carried out among the different sectors of the economy and among different projects according to an order of priority by which different goods are imported.

4. Beginning from July 1962 this allocation will be done on an annual basis (fiscal year July-June) and in a more comprehensive and detailed manner as far as possible according to custom tariff schedules. This will certainly facilitate trading with other countries since exporters will be put wise to the country's needs in the course of the year and they can easily refer to the specifications of these items.

5. Within the framework of the order of priority mentioned above, the principle of competitive prices- is followed with no discrimination among countries and with due regard to the availability of different kinds of foreign exchange available to the country.

6. High priority is given to the importation of capital goods, machinery, raw materials necessary for industry, spare parts, insecticides and some food supplies essential eitner for production or consumption and necessary to implement the development plan and to realize a balanced economic growth.

7. ln budgeting our foreign exchange, the necessary allocation is set aside to meet current obligations such as interest and installments due to foreigners.

Following these guiding principles imports are subject to licenses issued by the import department of the Ministry of Economy. If a certain item is locally produced in sufficient amounts to meet local consumption, the importation of this item is prohibited. On the other hand lictences are granted up to the amount necessary to meet wholly or partly the local requirements. Luxury goods are either prohibited or granted very limited foreign exchange. These measures are taken to protect the infant industries, to carry out the development plan and because of the pressure on the balance of payments which has been due not only to the expansion of imports but also to the great amounts which the country had to pay in foreign exchange to meet its foreign obligations of compensation and other payments. L/1816 Page 24

B. Export policy

The main features of this policy are the following:

1. All exports - with some exceptions to be mentioned later - are freely exported through the Customs Administration and the value is paid in the currency of the importing country without any restrictions concerning quantity, method of payment, or kind of currency.

2. Certain items are not allowed to be exported if they are essential for the local consumption requirements and are in short supply. Most of these items are foodstuffs. The level of restrictions on the exports of these goods varies according to the available supply. In some cases there is outright prohibition, in others a global quota for export is established taking into account domestic needs. 3. An item in policy is to encourage exports to convertible currency countries taking into consideration the need for diversifying the markets.

4. Marketing Boards are established for certain exports in which exporters, the Ministries concerned, the Exchange Control Department and the Exports Department are represented. They are responsible for the, general policy governing the individual export items. Minimum export prices, based on the prevailing international prices are fixed by the Boards with a view to preventing disguised capital flights, and preventing exporters from spoiling the market and dumping by charging unduly low prices. These Marketing Boards, together with the Organization for the Development of Exports are also concerned with various aspects of export promotion, namely improvement in quality, standardization, grading and better packaging.

5. Cotton yarns and cotton textiles enjoy a subsidy equivalent to the difference between the price of the cotton component in these two items and the price of other kinds of cotton used in their production in other exporting countries. (A separate memorandum is submitted on this point.) The problem arises, from the fact that high grade cotton is used in producing low quality yarn and textiles. The Government.has been giving serious attention to several ways of solving the problem by using imported cotton of cheaper variety, or producing cheaper cotton for domestic consumption or producing high quality textiles greatly in demand in some important foreign markets.

6. As regards cotton all its exports are required to be channelled through the Egyptian Cotton Cammission at prices based on international prices irrespective of destination. L/1816 Page 25

C. State-trading enterprise

1. The foreign trade of the United Arab Republic is virtually entrusted to fifteen foreign trade companies partially or wholly government-owned. All imports and a high proportion of the export's are State-nontrolled. To co-ordinatetheactivities ofcompaniesthe and to distribute business amogn them, a General Trade Organization, under the supervision of the Minister of Economy, has been established.

2. As regards cotton, a Cotton Organization was set up, under the supervision of the Minister of Economy, to co-ordinate and distribute the cotton trade among the different cotton companies. The Cotton Committee, a public organization. with an independent entity, has the function of carrying out the government policy which aims at the consolidation of the cotton market, the stabilization of prices and the marketing of the crop locally and abroad. The Committee is authorized to buy and sell cotton at appropriate prices which would facilitate its disposal, the opening of new markets and the providing of necessary requirements to local mills. 3. While these organizations and companies are supervised by the Ministry of Economy, yet they have a great deal of autonomy within the framework of the export-import policy. They are allowed to establish marketing offices abroad with a view of studying these markets and facilitating trade with different countries.

4. Important considerations for this structure of trade are that it is in line with the policy of planning development and with the setting up of a foreign exchange budget. The co-ordination of trade as outlined; the general specialization in trade among companies, the link between trading concerns and the Minister of Economy, will all enable. the:.Government to conduct the foreign trade in the most efficient manner. 5.. The guiding principle for these companies is to buy and sell in the foreign markets at canpetitive prices, a principle which is continuously ensured by the authorities.

6. The new structure of foreign trade also enables the Government to coordinate the importation and the exportation of different goods in the course of the year in such a way as to take into account seasonal variations in the production and the availability of different items of imports and exports. In this manner the best seasons of buying and selling different items are chosen.

7. It could be further noted that such structure facilitates the procedures of foreign trade as regards licensing formalities and State control. L/1816 Page 26

REPORT ON THE STRUCTURE OF CUSTOMS TARIFF IN THE UNITED ARAB REPUBLIC

In January 1962, a new tariff structure was introduced because of the following considerations:

1.. Many amendments had taken pace during the last thirty years which rendered the system of calculation very complicaeted. The Government had to sImpl.ify procedure. to secure efficiency in the administration.

2. To facilitate trade with other countries according to a standard nomenclature, the Brussels. nomenclature was introduced and the tariff structure had to be changed accordingly.

3. Since the Government is following the system of economic planning a new tariff structure in line with the development plan had to be introduced.

4. Tariff calculation was based mainly on specific rates, a system which was complicated, inequitable, discriminatory, not in accordance with the developmental requirements and which has been abandoned by most countries. That is why the new tariff structure is based mainly on an ad valorem rate bases. 5. A noticable change in the economic structure of the country has taken place, the industrial sector having gained more importance. A new tariff structure had to fit in the new structure of the economy.

6. Our foreign trade is gaining more and more importance not only in the volume of exports and imports, but also in the diversification of markets, This necessitated a tariff reform so that we may be able to carry cut our foreign trade policy. Exemptions and reduction in tariffs on important items were introduced, in our belief that this will increase the volume of our trade with other countries.

7. Important changes, not only in the pattern of production but also in the pattern of consumption, have taken place in the country with parallel changes in the import and export structure.

The main features of the new tariff, considering the principles mentioned above, can be summed up as follows:

1. The ad valorem rate is applied, with the exception of tobacco, tea and coffee so that the Government may guarantee the revenue received from these items.

A very limited number of the United Arab Republic Customs Tariff, January 1962, are available at the GATT secretariat. L/1816 Page 27

2. Supply goods necessary for the consumption requirements of the people, such as animals, meat, wheat and maize are -:.empted.

3. Equipment, machinery and raw materials necessary for development are either exempted or subject to a very reduced tariff (about 2 per cent).

4. Unassembled parts and semi-manufactured goods are subject to a relatively reduced tariff (from 5 per cent to 20 per cent).

5. A relatively higher tariff is imposed on goods substituted with locally produced goods (from 25 per cent to 35 per cent).

6. A high tariff is levied on goods considered unimportant or luxurious.

ELDnclosed is a schedule showing the latest available detailed statistics on our imports classified according to the Brussels nomenclature, in volume and value and the tariff rate on each item before and after the reform. This schedule shows the fo: lowing:

1. Imports the value of which amounts to about £66 million have enjoyed exemption or reduction in tariff.

2. Imports the value of which amounts to £98 million will provide the same revenue. Tobacco, the rate on which has not been changed, constitutes the main item. The revenge from tobacco comprises about half of the customs revenue.

3. Imports the velue of which is about £51 million are expected to provide more proceeds because of averaging or increasing the rate. It may be noted that these estimatesarebasedon the1960figurasfo trade and that the development in the structure of trade gives enough reason to Bpect greater import component of goods which enjoy tariff exemption or reduction. Besides the import duties, other duties are collected:

1. Statistical fee of 5 per cent on the value of imports.

2. Excise or consumption duties oil certain articles either imported or locally produced at the same rate. These articles are shown in table No. 1.

This tariff reform which was introduced just before our application, indicates that the United Arab Republic has already taken an important stepetoward the fulfillment of the GATT obligations.

Enclosed are: 1, A schedule of excise End consumption duties. 2. A table showing the previous and the new rates of import duties. 3. Distribution of goods according to tariff rates. L/1816 Page 28.

NO. 1

SCHEDULE OF EXCISE OPR CONSUMPTION DUTY 1. Cement: £E1,400 m/ms per 1000 kgs. 2. Ordinary wines of fresh or dried grapes: (a) Proportion of alcohol up to 13 degrees (12 m/ms per litre of liquid) (b) Proportion of alcohol more than 13 degrees (13 m/ms per litre of liquid + 440 m/ms per litre of pure alcohol over 13 degrees "in 15 degree centigrade") 3. Sweet wines: (Same duty mentioned in the above item "2/(a) and (b)") 4. Coffee:

(a) Not roasted = ZE7,700 m/ms per 100 K.N. (b) Roasted = £E10,000 m/ms per 100 KN. 50 Benzine: £E2,320.m/ms per 100 K.N. 6. Beer: (a) In bottles.: £E4,400 m/ms per 100 litres of liquid (b) Others: (1) Specific gravity not more than 1.055 degree = £E4,400 m/ms per 100 litres of liquid (2) Others: (Same duty as.the above item + 66 m/ms for each 1/1000 more in the specific gravity over 1.055 degree) 7. Lubrificating oil: C1 ,100 m/ms per 100 kgrms. 8. Sugar:' (a) Raw sugar for consumption = E3,360 rm/ms per 100 kgrms. (b) Raw, for reLininig (Same duty on refined sugar produced in a bonded refir. ery) (c) Suga r, candy = ZE1,870 mn/ms per 100 kgrms: 9. Lighters: of all kinds (100 w/crs per un:it) 10. Alcoho], denatured: (17.5 mn/ms per liire of liquid)

1Sugar (excluding candy) imported by the Government, exempted of dues. L/1816 Page 29

11. Alcohol, pure: (440 m/ms per litre pure) 12. Matches in boxes or other containers: (a) in booklets not exceeding 20 stems of a length not exceeding 5 cms. including the base.(88.m/ms per gross) (b) in boxes or others containing each: (1) 30 stems of a length not more than 4 cms. (132 m/ms per gross) (2) 40 stems of a length not more than 4 cms. (176 m/ms per gross) (3) 60 stems (264 m/ms per gross) (4) 100 stems (440 m/ms per gross) (5) 300 stems (£E1,320 m/ms per gross) (6) 400 stems (£E1,760 m/ms per gross) 13. White spirits: (175 m/ms per 100 kgrms.) 14. Playing cards: (400 m/ms per dozen) 15. Wheat flour, fine: (928 m/ms per 100 kgrms) 16. Lubricating greases: of a base of mineral oil, (900 m/ms per 100 K.N.) 17. Silk yarns: (300 m/ms per kilo) 18. Silk fibres: (60 m/ms per kilo)

ADDITIONAL EXCISE OR CONSUMPTION DUTY

1. Brandy and cognac: (150 m/ms per litre of liquid in 38 degrees, This duty is to be proportionally elevated for the degrees. more than 380) 2. Gin: (600 m/ms per litre of liquid; the alcohol not more than 440) 3. Whisky: (600 m/ms per litre of liquid; the alcohol not more then 44) 4. Additional 30 per cent of the excise or consumption duties on spirituous beverages 5. Beer: (12 m/ms per litre). L/1816 Page 30

NEW AND PREVIOUS RATES OF CUSTOMS DUTIES ON IMPORTANT ITEMS

Description of products Imports 1960 Previous New Tariff No. according to BN Value £E. Quant. tons rate rate

1.02 Live animals, bovine species 1,539,651 15,702 1.1 Free 2.01 Meat 565,786 4,293 1.1 Free 2.02 Dead poultry 126,464 507 13 15 3.02 Fish, salted 166,057 2,329 1.1 1 4.02 Milk and cream preserved 199,823 651 Free Free 4.04 Cheese 689,761 2,588 22 2727 25 7.01 Olives 214,340 1,757 20 20 7.01 Potatoes - sowing 459,834 18,090 8 Free 7.05 Dried leguminous vegetables 968,835 24,850 Free, 7 Free 8.05 Nuts 606,601 9,171 33 25 9.01 Coffee 497,525 2,298 15 15 9.02 Tea 7,678,326 20,339 56 50 9.04 Pepper 250,897 855 38" 35 10.01 Wheat 13,457,659 630,833 Free Free 10.0,3 Barley 423,897 21,648 Free Free 10.05 Maize 1,016,385 50,797 Free Free 10.06 Rice 457,452 1o0,66 43 40 11.01 Cereal flours 11,275,621 472,727 36 35 12.01 Oil seeds 412,453 6,698 1.1 1 12.07 Plants and parts 228,572 13,289 15 5 13.01 Vegetable for dyeing or tanning 274,645 3,335 10 5 15.02 Unrendered fats for industry 1,446,372 24,827 1.1 2 15. 2 Unrendered fats of bovines 490,445 6,559 1.1 2 15.07 Fixed vegetable oils (cotton) 11,750 111 1.1 2 15. 07 Coconut oil 133,920 903 1 .1 2 15.07 Coconut oil for industry 187,590 1,609 1.1 2 L/1816 Page 31

..__.._._...... _.._ w Description of products Import___'Prvius'''N-_"r-ts 1,6o Previous Tariff NoO according to BN Value ZE. Quant. tons rate rate ~.%._~ ~~~~% ..- 15.07 Olive oil for indYs8x 588-

15007 Oil others for industry 672,263 7,274 1.1 2 15.07 Oil for soap manufacture 212,052 2,997 1.~ 2

15.07 Oil others 409,055 40,098 1.1 2 16.02 Prepared or preserved meat 394,159 1,391 5 16.04 Prepared or preserved fish (sardine) 98,052 526 1.1 15 16.04 110,352 519 2

16.O4 Others 656,026 5,677 1.1

17.01 Sugar, raw 578,255 21,532 121 50

17.01 Sugar, refined 15,240 323 110 75

17.02 Sugar syrups 251,321 320 55 75. 18.01 Cocoa beans 113,828 430 14 15. 18.o6 Chocolate and other food 20,385 44 120 150 13.03 Vegetable extracts (for soft drinks) 205,158 235 27 25 22.09 Whisky 201,070 390,101 150 300 litres 22.09 Other spirituous beverages 61,387 366 30Q 24.ol Tobacco in leaves 5,025,350 11,204 £Eq 14.5 4.500 per KN. per KN.

24e0 Tombac 51,581 76 ditto ditto 2k. 0 Manufactured tobacco 65,829 89 £E. 67 6.500 6..500 per KN. per KN. 25.04 Asbestos 409,875 6,583 10

25.07 Clay 549,099 34,957 6 5

25.02 Pyrites 309,460 76,145 6 2 27.01 Coal 260,206 45,390 12 Free 27.04 Coke 1,357,099 129,825 1.1 Free L/1816 Page 32

Description of products Imports 1960 Previous New Tariff No. according to BN Value LE. Quant. tons rate rate

27.09 Petroleum oil crude 11,178,738 2,077,317 Free Free 27.10 Benzine 278,393 13,149 35 35 27.10 Kerosene 5,024,975 421,955 Free Free 27.10 Lubricating oil 1,646,544 40,575 26 25 27.10 Mazout 1,917,230 384,510 10 .15 27.10 Diesel oil 411,283 36,373 12 15 27.10 Solar 1,989,292 :86,572 14 15 27.10 Other oils 2,360,720 154,366 26 25 25.03 Sulphur 217,609 14,343 10 10 28.17 Caustic soda 1,168,549 36,118 15 15 28.42 Carbonate of sodium 342,018 21,363 10 10 28.42 Peroarbonate of sodium and potassium 338,517 3,976 10 10 30.03 Medicaments 3,7C3,073 1,280 21 10 38.11 Disinfectants 1,277,825 7,297 10 5 29. Chemical products 1,763,607 6,495 10 10 28 Chlorates 259,786 2,220 10 10 28.38 Sulphates 270,255 12,370 11 10 28.29 Other chemicals 1,515,041 84,905 10 10 37.01 Photographic plates 588,755 391 13 - 23 15 32.05 Dyestuffs 1,806,807 1,730 8 5 32.07 Lithcpone 306,913 5,331 49 1o 32.09 Prepared colours 417,897 1,483 27 28. 03 carbon. black 110,655 1,455 1.1 2 32.01,02 Tanning extracts 320,992 5,029 8 5 32.07 Other colouring matters 863,858 5,808 33 10 32.13 Printing ink 163,732 573 20 20 33.01 Essential oils 829,780 474 27 20 34.02 Organic surface-active agents 150,179 925 28 30 34.03 Lubricating preparations 108,980 1,381 18 20 L/1816 Page33

Description of products Imports 1960 Previous New Tariff No. according to BN Value LE. Quant. tons rate rate

n no Starches 1!y9i41. -5) ___ .. __ 31.02 - Fertilizers ,035,277 635,804 16 15 39.01 Artificial resins 545,739 2,549 9 5 41.01 Raw hides 594,096 3,423 9 5 42.o4 Articles of leather 100,130 82 22 10 40.01 Natural rubber .,532,837 5,633 1.6 2 40.10 Transmission, belts 674,624 1,039 22 15 4'0.11 Rubber tyres and tubes for cars 172,475 337 22 30 40.11 Rubber tyres and tubes for bicycles 61,10o 191 22 30 44.03 Wood in rough 478,014 21,311 8 10 44.04 Wood, roughly squared 399,497 10,800 15 10 44.05 Wood sawn lengthwise 5,804,380 164,523 18,5 :15. 44.14 Veneer sheets 10o,803 682 9 15 44.15 Plywood 800,927 11,646 24 25 44.26 Bobbins 211,725 383 13 25 44.28 Other articles of wood 365,227 9,144 27 30 47.01 Pulp (paper-making material) 1,675,070 29,344 7 5 48.cl Paper board 314,779 4,800 26 30 48..o Wrapping paper 1,800,200 24,513 26 30 48.01 Newsprint 2,095,160 11 Free 48.o0 Cigarette paper 255,750 578 20 20 48.ol Printing and writing paper 2,244,906 25,913 24 20 48..c Other paper 1,87T,459 14,839 26 30 49.ol Printed books 29o,946 526 Free Free 53.01 Wool 617,911 761 6 4 53.01 Dyed wool 297,726 412 6 6 53.05 Carded or combed wool 3,097,141 2,931 6 6 53.06 Yarn 157,929 95 39 40 53-06 Other wool and products 2,46o,877 2,304 39 40 57.03 Jute, raw 1,205,581 11,892 1.6 57.10. Woven fabrics of jute 976,204 8,602 15 35 L/18169 Page 34

Description of products Imports 1960 Previous New to BN accordingaccording Value £E. Quant.tons rate ratrate

59.17 Textile fabric for rubber tyre industry 639,392 1,126 1.6 0 59.17 Other fabrics for machinery 741,092 1,048 1.6 15 62.03 Sacks and bags-of jute 3,249,526 30,168 17 40 25.15 Marble 206,622 6,433 20 15 68.13 Fabricated asbestos 282,043 788 27 20 69-02 Refractory bricks 293,738 5,225 18 25 69.10 Sanitary articles 371,893 4,363 65 75 69.11 Tableware and other articles 688,319 6,235 98 100 70.06 Surface ground glass 313,620 748 65 125 70.10 Bottles 240,341 3,185 100 100 70.17 Laboratory glassware 575,983 3.384 27 25 73.01 Pig-iron 570,942 24,795 1.6 2 73.02 Ferro-alloys 137,042 2,082 1.6 2 73.10 Steel bars and profile 2,966,966 55,797 13 20 73.10 Hot rolled steel 355,348 6,341 13 20 73.16 Rails and sleepers 367,286 6,153 14 20 73.14 Black wire 314,632 5,407 12 20 73.14 Galvanized wire or coated 281,224 2,904 27 30 73.13 Common steel sheets and plates 1,384,259 19,168 9 10 73.13 Galvanized sheets 258,180 3,54.3 9 10 73.13 Tinplate 1,367,727 16,947 11 5 73.12 Baling hoops and strips 794,979. 8,500 9 10 73-15 Special steel 430,927 2,910 9 73.17 Cast iron pipes more than 6" 0 238,220 4,483 14 15 73.18 Steel pipes black 3,418,403 29,255 17 20 73.18 Steel pipes galvanized 744,451 9,325 20 20 73.21 Structure steel 1,266,750 8,035 24 40 74.01 Copper slabs 944,038 2,738 1 6 2 L/1816 Page 35

Tariff No. Description of products Imports 1960 Previous Newrat according to BN Value £E. Quant.tons

76.03 Aluminium sheets 326,502 1,135 11 25 76.04 Aluwminium foil 242,990 628 33 50

78.01 Lead slabs 400,093 4,718 6 2

84 Machinery and parts 32,946,119 72,702 1. 2 6 85.01 Electrical motors, generators 1,141,917 2,400 l.E 2 85-03 Primary cells 302,682 1,909 33 50 85.13 Telephonic and telegraphic apparatus 583,018 501 27 15 85.15 Ra'zis and parts 818,251 428 46 50 85.19 Electrical appliances 2,697,035 -3,960 1.6 22 5, 20 85.23 Electrical cables 869,134 5,388 17 30 87.04 Chassis for trucks 1,419,093 3,521 10 30 84.06 Engines for trucks 495,749 811 10 10 87.02 Passenger cars 1,874,794 4,108 66 70 87.02 Buses 753,113 1,193 13 50

87.02 Truck . 443,731 321 26 40

87.06 Parts of vehicles 1,652,247 1,535 27 15

Ships 2,247,446 3 ships 18 25 89.o3 Dredges 1,607,3t64 2,267 18 10 90 Measuring apparatus 2, o8, 397 1,735 27 10

. 48.01 Other writing paper 1,874,518 49 14,8839 24 20 L/1816 Page 36 EXEMPTED GOODS

Imports 1960 Tariff Description of Products Value LE. Quant. tons

1.02 Live animals, bovine species 1,539,651 15,702 2.01 Meat 565,786 4,293 4.02 Milk and cream processed 199,823 651 7.01 Potatoes, sowing 459,834 18,090 7.05 Dried leguminous vegetables 968,835 24,850 10.01 Wheat 13,457,659 630,833 10.03 Barley 423,897 21,648 10.05 Maize 1,016,385 50,797 27.01 Coal 260,206 45,390 27.04 Coke 1,357,099 19,825 27.09 Petroleum oil crude 11,178,738 2,077,317 27.10 Kerosene 5,024,,975 421,955 48.01 Newsprint 2 095,160 34,620 49.01 Printed books 290,946 526 11.01 Cereal flours 11,275,621 472,727 89.01 Ships 2,247,446 3 ships

52,362,061

* If imported by the Government

GOODS SUBJECT TO 1% IMPORT DUTY

3.02 Fish, salted, smoked 166,057 2,329 12.01 Oil seeds 412,453 6,698

578,510 L/1816 Purge 37

GOODS SUBJECT TO 2% IMPORT DUTIES

Imports 1960 Tariff Description of Products No.... Value LE. Quant. tons

15.02 Unrendered fats for industry - 1,446,372 24X827 15.02 Unrendered fats of bovine 490,445 6,559 15.07 Cotton seed oil 11,750. 111 Coconut oil 133,920 905 Coconut oil for industry 187,590 1,609. Olive oil for industry 84,220 588 Oil, others for industry 672,263 7,274 Oii. for soap manufacture 212,052 2,997 Other oils 409,055 40,098 16.04 Tunny fish 110,352 519 Other preserved fish 656,026 5,677 25.02 Pyrites 309,460 76,145 28.03 Carbon black 110,655 1,455 40.01 Natural rubber 1,382,837 5,633 57.03 Jute, raw . 5,2. 11,892 59.17 Textile fabric for tyre industry 639,392 1,126 73.01 Pig iron 570,942 2-,24,795 73.02 Ferro-alloys 137,042 2,082 74.01 Copper slabs - 944,038 2,738 78.01 Lead slabs - 400,093 4,7-18... 85.01 Electric motors and generators 1,141,917 .400 84 Mrachinery and parts 32,946,119 72,702

.E.. .I. 44:202,121

GOODS SUBJECT TO 4% IMPORT DUTIES

53.01 Wool raw 617,911 761 L/1816 Page 38

GOODS-SUBJECT TO- 5% IMPORT -DUTIES

Tariff DescriptionofPropducts Imports 1960 of Products No. .~~~~~~~~~Description Value £E. Quant. tons

12.07 Plants and parts 228,572 135,289 13.01 Vegetables for dyeir, or tannqing 274,645 3,335 16.02 Prepared or preserved meat 394,159 1,391 25.07 Clay 549,099 34,957 38.11 Disinfectants 1,277,825 7,297 stuffs Dye;t,,uf 1,806,807 1,730 32.01, 02 Tanning extracts 320,992 - 5,029 41.01 Raw hides 594,096 3,423 47.01 Pulp (paper making industry) 1,675,070 2a,344 73.13 Tinplate 1,367,727 16,947 73.17 Special steel 430,927 2,910 85.19 Electric appliances 2,697,035 3,960 39.01 Artificial resins 545,739 2,549

12,162,693

GOODS SUBJECT TO 6% IMPORT DUTIES

53.01 Dyed wool 297,726 412 53.05. Carded or combed. woo7 3,097,141 2,931 3,394,867 L/1816 Page 39

GOODS SUBJECT TO 10%IMPORT DUTIES

Imports 1960

No. Description of Products Value.....Vaue ...... Quant. tons

25.24 Asbestos 409,875 6,T58 25.03 Sulphur 217,609 14,511 28.42 Sodium carbonate 342,018 2iL,36 28.42 Bicarbonate of sod. and pot. 338,517 3,976 30.03 Medicamnents 708,073 1,280 29 Chemical products 1,531,208 6,267

29.38 P2r--itani nd viV;`.ni 232,399 228 28 Chlorates 259,786 2,220 28.38 Suiphates 270,255 12,370 28 & 29 Other chemicals 1,515,041 84,905 32.07 Lithoponc 306,913 5,331 32.07 Colouring matter 863,858 6,808 42.04 Articles of leather 100,130 82 44.o3 Wood in rough 478,014 21,311 44.04 Wood roughly squared 399,497 10,800 73.13 Common steel sheets and plates 1,384,259 19,168 73.13 Galvanized sheets 258, 180 3.,543 73.12 Baling hoops and strips 794,979 8,500 84i. .o.Envines for trucks 493, 749 811

89.03 Dredges 1,607 ,364 2,267 90 Measuring apparatus 2,080 397 1,735

17,594, 121

L/1816 Page 41

GOODS SUBJECT TO 20% IMIPORT DUTIES

Tariff' Imports 1960 No. Description of Products Value E. Quani tons

7.01 Olives 214,340 1,757 32.13 Printing ink 165,732 573 33.01 Essential oil 829,780 474 34.03 Lubricating preparations 108,980 1,381 48.01 Cigarette paper 255,750 578 68.13 Fabricated asbestos 282,043 788 73.10 Steel bars and profiles 2,966,966 55,797 73.10 Hot-rolled steel 355,348 6,341 73.17 Rails and sleepers 367,286 6,153 73.14 Black wire 514,632 5,407 73.18 Steel pipes, black 3,418,403 29,255 73.18 Steel pipes, galvanized 744,451 9,325 48.01 Printing and writing paper 4,119,565 40,752

14,141,076

GOODS SUBJECT TO 25% IMPORT DUTIES

4.04 Cheese 689,761 2,588 8.05 Nuts 606,601 9,171 13.03 Vegetables for the preparation of soft drinks 205,158 235 27.10 Lubricating oil 1,646,544 40,575 27.10 Other oils 2,360,720 154,366 44.15 Ply.wjood 800,927 11,646 44.26 Bobbins 211,725 383 69.02 Refractory bricks 293,738 5,225 70.17 Laboratory glassware 515,983 3,384 76.03 Alurnjiniwm sheets 326,502 1,135 7,657,659 L/1816 Page 42

GOODS SUBJECT TO 30% IMPORT DUTIES

Tarf .Timports 1960 of No. Description Products£ Value 9E. t Quant.u t-cons

32.08 Prepared colours 417,897 1,483 34.02 Organic surface agents 150,179 925 40.11 Rubber tyres and tubes for cars 172,475 335 40.11 Rubber tyres and tubes for bicycles 61,101 191 44.28 Other articles of wood 365,227 9,1i44 48.01 Paper board 314,779 4,800 48.01 Wrapping paper 1,800,200 24,513 48.01 Other paper 1,874,459 14,839 73.14 Galvanized or coated wire 281,224 2,904 85.23 Electric cables 869,134 5,388 87.04 Chassis for trucks 1,419,093 3,521

7,725,768

GOODS SUBJECT TO 35% IM4PORT DUTIES

9.04 Pepper 250,897 855 27.10 Benzine 278,393 13,149 57-10 Woven fabrics of jute 976,204 8,602

1,505,494 L/1816 Page 43

GOODS SUBJECT TO 40% IMPORT DUTIES

1960 Tariff TariffDescription of-Products . ~~~~~~~~~~Imports ,go ~~~~~~~~~~Value1-0E. Quant .Tons Rice- -io~~6- ~~~~~~457,452 10,166 513.06 Wool 'yarn 157,929 . 95 513.06 Other wool and products 2,460,877 2,1304 62.013 Sacks and bags of jute 13,249,526 130,1L68 713.21 Structure steel 1,266,750 8,0135 87.02 Trucks 4413,7131 321 8,0136,:265

GOODS SUBJECT TO 50% IMPORT DUTIES

9.02 Tea 7,678,1206 20,1339 17.01 Sugar, raw 578,255 21,5132 11.08 Starches 1319,914I 5,1351 76.04 Aluminium foils 242,990 628 85.03 Primary cells 1302,682 1,909 85.15 Radios and parts 818,251 428 87.02 Buses 7513,1113 1,1913 10,6913,5131

GOODS SUBJECT TO MORE THAN 50% IMPORT DUTIES 17.01 Suarfnd15,240 13213 17.02 Sugar syrups 251,1321 1320 18.06 Chocolates and other foods . 20,385 44 22.09 Whs.y2011,070 Lit. '300,10L1 22.09 Other spirituous beverages 61,1387 1366 69.10 Sanitary articles 1371,8913 4,13613 69.11 Tableware and other articles 688,319 6,2135 70.06 Surface ground glass 1313,020 748 70-10 Bottles 240,1341 13,185 87(.02 Passenger cars 1,874,794 4,108 4,0137,770 L/1816 Page 44

SPECIFIC DUTIES ON TOBACCO

Tariff Description of Products Imports 1960 No. Value £E. Quant. tons

24.01 Tobacco in leaves (£E 4.600 per k.n.) 5,076,931 11,280 24 .02 Manufactured tobacco (£E 6.500 per k.n.) 65,829 89

5,142,760 L/1816 Page 45

RECAPITUTATION OF TABLES

Rate of Import Duties IValue of Imports 1960

Exempted goods 52,362,261 1% 578,510 2% 44,202,121 4% 617,911 5% 12, 162,693 6% 3,394,867 10% 17,594,121 15% 26,090,824 20% 14,141,076 25% 7,657,659 30% 7,725,768 35% 1,505,494 40% 8,036,265 50% 10,693,531 More than 50% 4,037,770 Tobacco in leaves LIE 4.6.0 per kilo 5,076,931 Manufactured tobacco LIE 6,500 per kilo 65,829

215,943,631 L/1816 Page 46 D-n

CTON TEXTILE INDUSTRY IN THE UNITED ARAB REPUBLIC UJ D PROBLE,SOFEXPORTS ,'

1. During WorldarII and in thepostr2-war period, a boom resulted from the stoppage of foignimports,and thisfact encouragedtheEgyptian cotton textile industry - the leadingnational industry - to build up new mills or renew and modernize the existing ones.

Moreover, according tothegeneral policy, it was quite necessary to industrialize our raw cotton in order toavoid problem'; raised by raw cotton production and marketingOn tjeother the high density of population in Egypt necessitated to providewiderjoboppertunities.c ss.

2. Towards td of1949, theindustrywasaffectedz u:fby the foreign cotton fabrics which found thway block to thelocal:1a-arket,m and the industry began to suffer fromaccumulation of surpluswhich by the e n.e nd of'952, reached an extent thring theindustrysesriously./ycrly. 3. To overcome this cr-siz, the-e w!.as no other way but to export the increasing surolus tomarkets. Inthis . Tn th.respect, thie Eyptian cotton industry was not prepared to co:ipete on a torm;s -writh foreign textile industries as regards prices duie -vo tirie: fo 1' _ -Ying factors:

(a) In view of ti., e-.:-:ists£7:1sT - *. ^., trR Py hi.h price.; wi..h.eraees spinners abroad use other kinds of cotton o :-'io-.L:q . iv ..t rm,.c lowe5,r prices.

(b) Spinners ab-2ad pu'h-cL se ELy-t7` r,'n ' cotton at lower prices than those paid by local Sdr.:'.-s,d;v to the fast that importers of Egyptian cotton b from the promiums on convertibleonvc-tib currencies.

(c) Ipointinourpoliaysolve-tothesol. t Colve the problem of unemployment and this fact prompted t. Go-,-rnmeilt to resort - to rhe labou, -.ntensi;e system, although imbrey be r:^: costhe capitale 8Cpita intensive system. On the other hand, workers in Egyp- have n- so . :-. cv- technal standard of skill and this also contriraising cost.n c;t

4. To solve thems,Probleuthoritieslthori-ti decided to regulate the cotton industry by ing a Fundwith two objections:objectivs:

(1) To cestablishingsurveyasurveys. establishing ,laboratories, institutes for researaining cantres witha view to kee vt;.C keeping. abreast of technological trends.

(2) To pave the way for this industry to achieve feir competition in local as well as inmarkets. I.:.?Aet L/1816 Page 47

Egyptian mills have to finance this Fund by paying a certain percentage (6%) of the value of the cotton consumed.

5. According to its aims of enabling the industry to place on the world's textile markets products of good quality on the basis of fair competition, the Fund has to indemnify the local mills for the difference in raw cotton prices and to compensate them for the 6 per cent fee.This compensation does not exceed, on the average. 23 per cent of the prices f.o.b.

6. The Fund is careful to control the export prices in a way which guarantees the sales on the basis of prices prevailing in the foreign markets; in this regard, minimum prices are fixed for exports and exporting mills are prohibited to offer at prices below this level. These minima prices are revised regularly in the light of the evolution of the world textile market.

7. As a result of this survey, the Egyptian cotton products prices are always in line with world prices. Moreover, they-fails very. often, to compete in foreign markets as shown hereafter:

German market Egyptian prices: (per kilo c.i.f. Bremen)'

Cotton yarns carded (Ashmouni cotton) on ring tubes on cones

12/1 . . . . 3.82 DM 3.92 DM

16/. . . . . 4.00 " 4.14 " 20/1 . . . 4.18 " 14.36 24/1 ...... 4.461 .68 30/1.. 4.881 "? 5.16 56/1 .. . 5.30 5.646 t

46/1 .. . . 5.58 55.96

German prices: Cotton yarns on ring tubes 12/1 DM 3.85 - 3.95 20/1 14.20 24/1 " 4.70 30/1 " X.8o - 4.85 Owing to the present German market'. situation, the Egyptian spinners have to reduce their prices in order that they may compete with the prevailing prices on this market. PageL/1816 48

Concerning cotton poplins, prices for some articles in this market are as follows: (locally produced)

1/1 poplin 40/40 finished DM 1.55 1/2 " 60/35 " " 1.95 2/2 " 80/80 " " 2.55

Egyptian quotations for poplins are not competitive in the German market so that nearly no business is possible for the time being, since they are higher than those prevailing in this market.

Dutch market

Cotton yarns (locally produced)

Carded on ring tubes

12/1 ...... 3.52 DFL

616/1...... 3.62" 20/1 ...... 80

30/1 ...... 4.25" 40/1. . 4.80

On imported yarns there is a duty of 5.2 per cent-and ffrther.,DFL-0.06 for clearance and inland transport.

Deducting these from the above Drices, we get prices at which foreign suppliers should base themselves; these prices are:

3.29 - 3.39 - 3.56 - 3.98 - 4.56 respectively.

Our prices are not competitive, they are much higher.

Regarding the cotton. greycloths on this market, it is quite evident that our prices are higher than those of similar greycloths imported from Japan and Poland such as: 34" 20/20 Poland at DEL - 48 c.i.f. 38" 20/20 " " " -.53 c.i.f, 18" 50/316 Japan " " -.47 c.i.f. 50" 1/130 it IT It -.62 c.i.f. In view of this fact, Egyptian suppliers could not compete and they lost many million meters of orders this last half year. L/1816 Page 49

Belgian market

As far as the Egyptian cotton yarns are concerned, the substantial amounts exported to this market are mostly of counts 14/2, 16/2, 18/2.

The prevailing prices for these-counts. locally produced are: 14/2 . . .Fr.B. 45.- per kilo 16/2 . . . . 45.50 " 18/2 . . 46.50 Our minimum prices are higher as shown hereafter: 14/2 . . . Fr.B. 47.- per kilo 18/2 . . . " 409 -

International prices for poplins

In view of the fact that prices of Japanese poplins exported to the European markets are based on international prices, the following prices reflect quotations considered average by the majority of traders:

Cotton poplins (Fluorescent WIhite) exported from Osaka to France:

Prices c.i.f. Marseille per yard

40/40 1/1 ...... 23.50 - 24.50 0

60/60 2/2 ...... 35.75 - 37.75 "

80/80 2/2 ...... 41.00 - 42.00 U

100/100 2/2 ...... 49.50 It

120/120 2/2 ...... 59.50 "

Egyptian quotations for similar constructions are much higher, for example the official price list of an Egyptian exporting firm is: 40/40 1/1 . .16.12 0 per yard c. i. f . European port 60/60 2/2 . . . 40.23 ¢ " " " " " 80/80 2/2 . . . 52.35 0 " "Y " " 100/o00 2/2 . . . 59.21 0 It It t It It I 120/120 2/2 . . . 69,72.¢ " U It

However, we have to point out that the Egyptian firm has to adjust the above prices after receiving counter-prices from their customers to be more or less level with prevailing prices in the markets. L/1816 Page 50

THE AGREEMENT TO FACILITATE TRADE EXCHANGE AND TO ORGANIZE TRANSIT BETWEEN ARAB LEAGUE STATES

The main provisions of the agreement can be summed up as follows:

1. Agricultural products, animal products and natural resources listed in annex (A) are exempted from import duties provided that their origin is one of the contracting parties.

2. Industrial products listed in annex (B) are granted a tariff reduction of 25 per cent of the imposed duties - provided that their origin is one of the contracting parties.

3. All agricultural, animal and industrial products are subject to the same excise duties imposed on the similar goods produced in the importing country.

4. Industrial products listed in annex (C) are granted a tariff reduction of 50 per cent of the customs duties.

5. Assembly industries listed in annex (D) (will be submitted later on) are granted a tariff reduction of 20 per cent of the imposed. duties provided that the combined cost of local labour and raw materials would not be less than 20 per cent of the total cost of production.

6. The contracting parties undertake to facilitate the- transit of goods through their countries by all means of transport.

It may be noted that:,

1. The agreement could be considered as an exchange of tariff exemption ani reductions between the Arab League countries. The Arab Economic Council -which meets yearly approves new additions to the lists of exemptions or reductions which may be suggested by member States.

2. There are some reservations concerning certain items on the part of some States.

3. Even though no time limit is stipulated for an Arab Customs Union yet in the preamble of the agreement, it is stipulated that the target is to realize such a Union. Page 51

4. There are two concrete projects submitted to the Arab Economic Council still under consideration for the realization of an Arab Customs Union. Another project is under ratification by member States for an Arab Economic unity according to which the coordination of the different sectors of the economy of the Arab States as well as the free transfer of capital and labour and rationalization of development plans will take place.

5. The trade between the Arab countries has shown a marked increase since the agreement and is expected to increase further. However, this trade still comprises a small proportion of the foreign trade of these countries. Page 51

ANNEXES (A), (B) AND (C)

ANNEXED TO THE AGREEMENT TO FACILITATE TRADE BETWEEN ARAB LEAGUE STATESAND TO ORGANIZE TRANSIT TRADE

Annex (A)

Goods Exempted from Custom Duties

- Live animal and products - Vegetable products - Minerals

Goods Subject to a Reduction of 25 per Cent of the Normal Tariff

- Cereal flours - Starch, cereals - Starch - potatoes - Bran and residues derived from sifting - Cotton-seed oil ) - Sesame oil ) liquid or dehydrated - Linseed oil - Preparations of meat, of fish - Glucose - Molasses - Sugar confectionary - Chocolate (in condition that sugar used should be of Arabic origin) - Preparations of cereals (macaroni of all kinds) - Biscuits even with cocoa or fruits or sugar added - Preparations of vegetables, fruits or other parts of plants - Ethyl alcohol - Inedible molasses - Cement other than white or coloured - Rock salt even ground - Carbonic acid - Oxygen - Sulphuric acid - Glycerine - Medicament and pharmaceutical products - Exposed positive cinematograph film - Vernished even coloured L/1816Page52

- Paints and coloursprepared with oil - Essentialoil (extracted from plants of Arabic origin) - Aquecus solutions of essential oils - Commonsoap, blocks powderedor including carbonic soap

- Calcium mitrate and calcium phosphate -Tanned nides andakins - Patens leather andmetallizedleather - Dyed, propared- &.M*>'.leather - Articles of leather

- Inlaid wood woodand marquetry - Furniture of wood,of rattons, of bamboos _ Paper board, sheets or rolls (weight of M2 more than 3000 grs) - Wrapping paper - Priting papar - Exercise books paper of Arabic origin) - Yarm ofman-made continuous fibres - Yarn of man-made discontinuous fibres - Embroidery in silk -Trimmings of silk - Woven textile fabrics, wholly of silk or with other textile material Figured textile of man-made fibres - Embroidery of man-made fibres - Tapestories of man-made fibres - Trimmingsof man-made fibres - Woven textile fabrics of man-made fibres, wholly or with other textile material -Yarn of wool of all kinds - Carpets andmats of wool - Wovenfabries of wool (yarns of Arabic origin) - Carded woo! Cottonon,unglaixed

- Figuredtextileof cotton Embroidery of cotton - Narrow fabriesofcotton -Trimmingsof cotton - Cotton woven fabric - Cotton carded or combed - Cottonwool (for medical and surgical purposes) - knitted or crocheted fabric of all textile materials - Knitted or crocheted fabrics and articles thereof - Articlesof apparel and clothing accessories and of all textile materials Bed linen, table linen, toilet linen of all textile materials -Made-up textile articles (Arabic origin textile) Footwear (leather of Arabic origin) L/1816 Page 54

- Boots and top-boots of rubber - Umbrellas and sunshades - Articles of Arabic marble - Articles of cement, of concrete cement - Articles of asbestos cement - Refractory bricks - Ceramic tiles - Sanitary articles, pipes arid fittings - Artificial teeth - Articles of precious stones (of Yemen origin) - Heating and cooking units of steel (heated by mazoot) - Beds, tables, chairs and other furniture of steel - Structures of steel - Reservoirs and tanks of steel - Copper, taps and cocks - Printing types - Lift without motors - Liquid pumps without motors - Refrigerators, capacity 20 cubic feet and up - Electric lamps (glass bulb of Arabic origin) - Electric accumulators (parts should be of Arab origin) - Arms and munitions - Brushes (for clothes, shoes and paint) - Metal threads used in textile materials - Metallized yarn, being textile yarn spun with metal - Articles of artificial resins and plastic materials

Annex (C)

Goods Subject to Reduction of 50 per Cent of the Normal Tariff

- Butter, fresh or salted and "Masly" (cooked butter) - Cheese, white and Kach Kawal - Amar El Din (apricot paste) - Coffee of Yemen origin roasted, ground even canned - Dates - Clive oil - liquid or dehydrated - Onion and garlic - dried - Beet pulp, oil cakes, preparations of a kind used in animal feeding - Petroleum, bitumen and asphalt - Common soap made of olive oil - Furskins - Wooden articles and statuettes of olive tree - Yarn spun from silk waste - Woven fabric of jute - Twine cordage, ropes and cables of Arabic textile materials - Glass sheets of all kinds - Articles of glass - Glass bottles - Laboratory glassware - Table glassware - Glass bulbs (for Kerosene lamps) - Glass bulbs for electric lamps - Worked mother of pearl and articles thereof.