Egypt, U.S., Israel to hold QIZ tripartite meeting in July

Egypt, Israel, and the United States are expected to hold their period joint committee meeting next July to discuss rolling over existing Qualified Industrial Zones (QIZ) protocol.

“It is a periodic meeting for discussing any obstacles faced by the companies listed under the QIZ protocol and take necessary steps required,” sources with knowledge of the matter told Amwal Al Ghad, without disclosing where the meeting would take place.

“Egypt is still adamant on its demand that the Israeli input in products exported under the QIZ shall be reduced to 8 percent, from 10.5 percent, and that the protocol shall expand its reach to include some further industrial zones.” the sources added.

Signed in late 2004, the QIZ agreement granted Egyptian clothing manufacturers zero-tariff access to the U.S. market as long as their products contained at least 10.5 percent Israeli input.

QIZ agreement was established by the U.S. Congress in 1996 to build economic ties between Israel and its neighbours.

Since the agreement took effect in February 2005, it has allowed products jointly manufactured by Egypt and Israel duty-free entry into the U.S. Eligible products must have at least 35 percent of their value added by QIZ factories.

Under the agreement, Egypt must contribute at least one-third (11.7 percent) of this value add, while Israel must contribute 10.5 percent.

At the beginning of April 2017, Egypt’s government held talks demanding to lower the Israeli input requirement to 8 percent and to expand the reach of the QIZ agreement to include leather and some food products to export.

Qualifying Industrial Zones in Egypt are currently located in six regions; Cairo, Alexandria, Suez, Central Delta, Minya, and Beni Suef.