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Sunday, 10 July 2016

Automotive directive heading back to Cabinet

The Trade and Industry Ministry finalized an amended automotive directive last week and has supposedly sent this to the cabinet for approval, according to Minister Tarek Kabil just before the Eid holiday, Al Borsa reports. In this latest draft of the strategy, the domestic component minimum for a vehicle to be considered manufactured in Egypt has been set at 60%, said Kabil. The strategy will also set a quota of Egyptian components slated for export by domestic assemblers. Last we heard the cabinet had approved the a previous draft of the directive which was sent to Ittihadiya for review, which would imply this latest draft included input from the presidency. The automotive directive would provide domestic assemblers with tax and other incentives to go further up the value chain into manufacturing, creating jobs and sustaining an industry that claims it is threatened by unfair competition from Turkish, Moroccan and European Union imports.

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