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Wednesday, 20 April 2016

Israel rejects QIZ component reduction

Israel has refused to reduce the minimum Israeli content requirement on exports to the United States under the QIZ program, said the head of the Readymade Garments Export Council Mohamed Qassem. Egyptian manufacturers have been pushing for years to cut the minimum Israeli content component to as low as 8% from 10.5% today and to get permission to open new qualifying industrial zones. The rejection comes after an Israeli delegation visited Cairo last week to discuss the matter, Qassem told Al Borsa. Israel a reduction as contrary to its interest and a violation of prior agreements with the US and Egypt that set the percentage at 10.5%, said Qassem. A meeting on the QIZ agreement is scheduled to take place in three months’ time. Exports under the QIZ program enjoy duty-free access to the U.S. market provided the minimum Israeli content requirement is met.

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