After US Tariffs, Egypt Seeks to Amend the QIZ Agreement

Egypt is seeking to amend the QIZ agreement with the United States and Israel following President Trump's imposition of tariffs on the country. This was stated by Magdy Tolba, Chairperson of the Apparel Export Council of Egypt, in an interview in the program “Weekend Cairo,” as reported by Asharq Business.

US President Donald Trump introduced tariffs on 185 countries, ranging from 10% to a maximum of 50%. The tariffs included Egypt, Saudi Arabia, the UAE, and Morocco, each facing 10%. These tariffs went into effect on April 5th, 2025. 

Egypt signed the Qualifying Industrial Zone (QIZ) agreement in 2004 with the U.S. and Israel. Furthermore, it allows Egyptian products to enter U.S. markets tariff- and quota-free, provided they include a set percentage of Israeli input. This input is currently 10.5% of the final product.

 Previously, Yahya Elwathik Bellah A. Nabih, Head of the Egyptian Commercial Service (ECS) at the Ministry of Investment and Foreign Trade, revealed that Egypt’s QIZ exports are subject to Trump’s 10% tariff on Egypt. 

Tolba emphasized the need to review and modify all free trade agreements between Egypt and other countries. This includes partnerships with the European Union, Turkey, and South America. He further pointed out that Egypt benefits the least from all the agreements.