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Tuesday, 14 January 2020

Export councils seek fundamental changes to export subsidies framework

Export councils seek fundamental changes to export subsidies framework: The export councils have called for fundamental changes to the new export subsidies framework during their meeting with new Trade and Industry Minister Nevine Gamea, the local press quoted unnamed sources as saying. The changes include amending the foreign exhibition financing, which the Finance Ministry has set at EGP 225 mn in the current fiscal year, as well as restructuring the export councils and giving them new jurisdiction when they are reformed in March, and establishing a supreme export council.

Background: Exporters are owed bns of overdue subsidies under the old subsidies framework. Settlements of the overdue payments have reportedly been moving forward since last September, in tandem with the launch of a new EGP 6 bn framework the Madbouly government had approved in June. The executive regulations for the new program were out in December and prompted a backlash from industry, which had objections to the mechanism through which the annual allocations would be paid out. Exporters are also concerned about how the fund plans to settle away bns in back due subsidies.

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