Korea and Egypt Formalize Pursuit of Comprehensive Economic Partnership Agreement... Joint Statement Signed

Director General Yeohan Gu Signs Joint Statement in Egypt
"Investment Guidebook for Entering Egypt to Be Produced"

The government is pursuing the conclusion of a Comprehensive Economic Partnership Agreement (CEPA) with Egypt, which serves as a gateway to the North African market. CEPA is a type of Free Trade Agreement (FTA) that aims to not only open goods and services markets but also to strengthen comprehensive cooperation.

On the 18th (local time), the Ministry of Trade, Industry and Energy announced that Yeohan Gu, Director General for Trade Negotiations, visited Cairo, Egypt, and signed a "Joint Statement on the Promotion of the Korea-Egypt CEPA" with Hassan El Khatib, Minister of Investment and Trade of Egypt.

Yeohan Gu, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy (right), is shaking hands with Mohamed El Gawasaki, Deputy Minister for Investment and Trade of Egypt, ahead of their meeting last October at the Gqeberha Boardwalk Hotel in South Africa. Ministry of Trade, Industry and Energy

The Ministry of Trade, Industry and Energy signed a "Memorandum of Understanding (MOU) on Trade and Economic Partnership" with the Egyptian Ministry of Investment and Trade in 2022, and has since conducted a joint study on the economic feasibility of pursuing CEPA. At the Korea-Egypt summit in November last year, both countries agreed to pursue the conclusion of the CEPA.

During his meeting with Minister El Khatib, Director General Gu formalized both countries' intention to pursue the CEPA and specified the direction for negotiations. In addition, both countries reviewed the progress of their respective domestic procedures required to launch CEPA negotiations and agreed to cooperate to begin negotiations as soon as possible.

During this visit, Director General Gu also met with Gamal El Din, Chairman of the Suez Canal Economic Zone Authority, to discuss ways for Korean companies to enter the Suez Special Economic Zone. If the Qualified Industrial Zone (QIZ) agreement among the United States, Egypt, and Israel is utilized, products manufactured in the Suez Special Economic Zone can be exported to the United States under preferential conditions. This means that Korean companies could use the zone as a new production base for entering the U.S. market. To support the smooth entry of Korean companies into the Suez Special Economic Zone, Director General Gu proposed establishing a regular consultative body between the Korea Trade-Investment Promotion Agency (KOTRA) and the Suez Canal Economic Zone Authority to ensure ongoing cooperation.

While in Egypt, Director General Gu also visited the Sokhna Industrial Complex-the largest of the four industrial complexes within the Suez Special Economic Zone-and the Sokhna Port, together with Korean companies operating in Egypt, KOTRA, and the Korea Institute for International Economic Policy (KIEP), to assess the investment environment for Korean companies. He also held a dinner meeting with local Korean businesses to listen to their concerns and suggestions, such as the need for financial support and streamlined administrative procedures.

Director General Gu stated, "We will push forward with the Korea-Egypt CEPA negotiations from initiation to final conclusion with a sense of urgency," adding, "Based on the results of this visit to the Suez Special Economic Zone, we will produce an investment guidebook to provide Korean companies with the information they need to enter the Egyptian market."