Egypt: US designates new Qualifying Industrial Zone in Egypt

United States trade representative Rob Portman designated a new Qualifying Industrial Zone (QIZ) in Egypt and approved the expansion of two existing zones on October 31. QIZs, which Congress first designated in 1996 between Jordan and Israel and Egypt and Israel, give the two Arab nations the right to export products to the United States duty-free if the products contain inputs from Israel. Following the announcement, Israel and Egypt will create a new zone -the Central Delta QIZ - and expand the existing Greater Cairo QIZ and Suez Canal Zone QIZ. Portman’s announcement builds on the United States’ December 2004 designation of three zones in Egypt following an agreement between Egypt and Israel to cooperate in the establishment of the zones.