Back to the complete issue
Tuesday, 28 February 2017

European car makers are not happy with the automotive directive

Shockingly, European car makers and local importers of their wares are not in love with the so-called “automotive directive,” which would give tax breaks to local manufacturers and protect them against unfair advantages now enjoyed by EU, Turkish and Moroccan imports. The automotive directive will not only harm European exports to Egypt but also violates the terms of free trade agreements with the EU, the companies complained in a letter to the European Commission picked up by Al Borsa.

Trying to keep the Masry gravy train rolling, EU-based manufacturers argue that the bill offers tax breaks and incentives to local manufacturers that could prove harmful to exporters in the long run. Then came the not-so-veiled threat: The directive — which grants incentives along the value chain to encourage local manufacturing — will affect future European investments in Egypt’s auto industry. Members of the Federation of Egyptian Industries said it was unlikely that the government would take the European concerns into account, maintaining that the directive does not violate trade agreements. The bill is presently before the House Industry Committee.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.