   
  
WT/COMTD/RTA16/2/Rev.1  
 
21 October  2020 
(20-7289) Page: 1/4 
Committee on Trade and Development  
Dedicated Session on Regional Trade Agreements  Original: English/Spanish  
 
 
ACCESSION OF EGYPT TO COMESA  
(GOODS)  
QUESTIONS AND REPLIES  
Revision  
 The following communication , received on 19 October  2020,  is being circulated at the request 
of the delegation of Egypt . 
 
 The document reproduces the questions addressed to the Parties and the responses 
submitted.  
 
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Questions from the delegation of Mexico  
 
Paragraph 4.18  
 
Question 1  
 
• Are there any cases in which a State party has invoked the inapplicability 
established in Article 55 with regard to agreements between economic agents 
that do not operate in strategic sectors or sectors of public interest?  
Reply from Egypt : There have been no cases  in COMESA.  
 
Question  2 
 
• What challenges  are faced by community competition policy with regard t o the 
digital economy? Is it felt that community instruments need updating to 
address these challenges?  
Reply from Egypt : The main challenges posed by digital markets relate to competition or digital 
monopolies . These include, but re not limited to monopol ization of markets thereby hampering 
competition and innovation, incentives to lock -in customers, negative impacts of get keeper positions 
by Internet Services Providers (ISPs) and issues related to privacy and data protection. Competition 
authorities and policy makers need to consider new business models when dealing with competition 
related issues in digital economies. In addition, p olicy action s should aim at 
developing/updating/reviewing existing legislations and regulations relating to competition, IPR s, 
copyrights and adapting data protection and privacy regulation s among others taking into account 
digital economies . 
 
Question  3 
 
• Would the Council observe the rule of reason, on a case -by-case basis, to 
assess consumer welfare against anti -competitive practices? Please provide 
the parameters , otherwise.  WT/COMTD/RTA16/2/Rev.1  
 
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  Reply from Egypt : The COMESA Competition Regulations are enforced by the COMESA Competition 
Commission, which has powers to 1) examine complaints from consumer groups, individual 
consumers and business and others; 2) investigate possible contraventions of the Regulations in 
conjunction with the relevant authorities of the member count ries concerned; 3) determine a 
resolution to the investigation, including the imposition of penalties and remedies. Decisions of the 
Commission may generally be appealed to the COMESA Competition Board and on constitutional 
matters to the COMESA Court of J ustice. Besides COMESA Competition Regulations is a regional law 
and only apply to conduct that affects regional trading.  
 
Paragraph 4.19   
 
Question  4 
 
• What are the main provisions established in the COMESA Competition 
Regulation? Has the Council established any other regulation to regulate 
competition , in addition to that of COMESA?  
Reply from Egypt : Article 55 of the COMESA Treaty prohibits any practice  which negates the 
objective of free and liberalised trade. The Council has since established the COMESA Competition 
Commission through the COMESA Official Gazette Vol. 9 No.2 as Decision No. 43 of Notice No 2 
of 2004. The Commission promotes and encourage s competition by preventing restrictive business 
practices and other restrictions that deter the efficient operation of markets, thereby enhancing the 
welfare of the consumers in the Common Market, and protecting consumers against offensive 
conduct by mark et actors.  
 
Questions  from the delegation of Thailand  
 
Question  1 
 
Section 4.11  
• Regarding  investment protection, does the Agreement include the Investor –
State Dispute Settlement (ISDS)?  
Reply from Egypt : Article 162 of the Treaty provides for multilateral agreements on investment 
dispute resolution and guarantee arrangements. Specifically, it  provides for Member States to accede 
to the international convention on settlement of investment disputes between states and nationals 
of other states; the convention establishing the Multilateral Investment Guarantee Agency and; any 
other multilateral ag reements designed to promote or promote investment.  
 
Question  2 
 
Paragraph 4.22  
 
• With reference  to the second sentence of paragraph 4.22 stating that "They 
agree to conclude a Protocol on the Free Movement of Persons, Labor, 
Services, Right of Establishme nt and Right of Residence. ", could Egypt share 
with members the details of the Protocol, including target date of conclusion 
and issue coverage?  
Reply from Egypt : The COMESA Protocol on the Free Movement of Persons, Labor, Services, the Right 
of Establishment and Residence was adopted in 2001 by the COMESA Authority of Heads of States 
and is in the process of being signed and ratified. The Free Movement Protocol was de veloped with a 
vision towards the operationalization of the COMESA Common Market and its objective is to remove 
all restrictions to the free movement of persons, labor, and services and provide for the right of 
establishment and right of residence.  
 
For more information in this regard kindly visit the following website:  
https://www.comesa.int/programme -activities -immigration -and-free-movement -of-persons  
 WT/COMTD/RTA16/2/Rev.1  
 
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  Question  3 
 
Section 4.16  
 
• Does COMESA  have plan to include "E-commerce " provision in the Agreement? 
Can Egypt have a bilateral FTA with other countries? If it is the case, does 
Egypt have  plan to include "E-commerce " in the future FTA?  
Reply from Egypt :  
 
• COMESA Member states are currently in the phase of implementing Digital FTA 
instruments that support the E -commerce amongst member states.  
• Yes, according to COMESA Treaty, all COMESA Member States including Egypt could 
engage in Bilateral FTAs.  
• Egypt is currently in the preparation phase to adjust its infrastructure for E -commerce, 
including Trade  information portal among others.  
Question  4 
 
Section 3.5.2  
 
• We would like to seek further clarifications on the event of "serious 
disturbances  in the economy " that a Party may take safeguard measures for a 
period of one year. Please  provide examples for e xplicit application.  
Reply from Egypt : Article 61 of the COMESA Treaty provides for invocation of Safeguard measures 
in the event of serious disturbances in the economy of a member state because of implementation 
treaty provisions. For instance, Kenya has  been applying safeguard measures on sugar imports from 
COMESA member states.   
 
Question  5 
 
Section 3.1.6  
 
• As the Parties agree to the gradual establishment of a common external tariff 
(CET)  within  10 years, after the Agreement enter into force in 1999, and Egypt 
is not yet implemented. When will Egypt plan to implement the CET?  
Reply from Egypt : Negotiations on COMESA Customs Union are still ongoing among Member States 
who face technical issues in migrating to COMESA Customs Union Instruments (CET, CTN, and CMR).  
 
Question  6 
 
Section 3.4.1  
 
• Refer to Section 3.4.1 stating that "The Parties agree to develop and apply 
common policies  on standardization … ". Does Egypt have to adjust any 
measures and procedures which are currently implemented in order to comply 
with the common standardization of COMESA?  
Reply from Egypt : Egypt measures and procedures are aligned with international standards . 
 
Question  7 
 
Section 3.1.6  
 
• Since certain Parties have difficulties committing to a Common External Tariff 
(CET) scheme , what are the procedures or measures (if any) to assist these 
Parties in implementing the CET scheme in the future?  WT/COMTD/RTA16/2/Rev.1  
 
- 4 - 
 
  Reply from Egypt : Secretariat is carrying out capacity building to assist Member States with 
challenges with migration to CTN, and CMR as well studies on socio -economic implications of the 
CET.  
 
Question  8 
 
Paragraph 3.25 
 
• Referring to Procedures Manual on the implementation of the Protocol on the 
Rules of Origin  for Products to be traded between the Member States of the 
COMESA version September 2002, Chapter 2.10 regarding "Processes not 
conferring origin " explained, "Produ cts resulting from these operations and 
processes retain their foreign origin and are thus not entitled to preferential 
tariff treatment ". Does it mean that production process stated in Chapter 2.10 
apply to imported material with all origin criterions as mentioned in paragraph 
3.25 in order to determine COMESA country origin?  
Reply from Egypt : Processes not conferring origin are contained  in Rule 5 of the Protocol on COMESA 
Rules of Origin. For goods that are produced from materials imported from non -COMES A countries 
to qualify as originating in a COMESA Member State they must undergo substantial transformation 
and meet any of the criteria specified in Rule 2(1)(b)(i) –(iii) or the criterion in Rule 2(c) of the 
Protocol on Rules of origin. This means that w here goods are produced from imported materials 
using any of the processes listed in Rule 5, such goods will not be considered as originating in a 
given COMESA Member State as explained in Chapter 2.10 of the Procedures Manual on the 
implementation of the Protocol on the Rules of Origin to be traded between the Member States of 
COMESA.  
 
Question  9 
 
Section 4.13 and Section 4.14  
 
• Question 9.1 : What are the differences between Article 4.14 “Environment” 
and Chapter 16 “The development of natural resources, environment, and 
wildlife” under Article  4.13, in terms of the enforcement on rules, regulations, 
and standards in the area of environment in COMESA?  
Reply from Egypt : Paragraph 4.14 and 4.13 in the factual report refers to article 124 in the COMESA 
treaty, which is a sub -section under chapter 16 in the treaty.  
 
• Question 9. 2: Since COMESA  agrees to adopt common environmental control 
regulations, incentives and standards, could Egypt share their experience on 
the harmonization  of each member states’ regulations on environment.  
Reply from Egypt : Article 124 of the COMESA Treaty provides for coopera tion of Member States in 
the management of the environment and accession to various international protocols. To this end, 
Egypt has adopted an environmental policy that seeks to achieve environmental protection through 
the establishment of proper instituti onal, economic, legislative and technical frameworks at the local, 
regional, national and international levels. This is expressed through the seven directives of the 
policy statement of the Egyptian M inistry  of Environment : 
• Strengthening partnerships at the national level.  
• Supporting bilateral and international partnerships in the environmental fields.  
• Enforcing Law 4 of 1994 for the protection of the environment, and Law 102 of 1983 for 
Natural Protectorates and all other environmental le gislation.  
• Supporting institutional strengthening and capacity building for the Egyptian Environmental 
Affairs Agency and Environmental Management Units (EMU's) of the governorates.  
• Supporting Integrated Environmental Management Systems.  
• Integrate the use of market -based instruments in the field of environmental protection.  
• Transfer and adaptation of environmentally friendly technologies.  
 
 
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