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Cabinet agrees to activate local Product Law - Daily News Egypt

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Cabinet agrees to activate local Product Law

The law is working to deepen industry, Al-Sewedy says


 Head of the Federation of Industries Mohamed Al-Sewedy said that cabinet has agreed to activate the law of local product preference. (AFP File Photo)
Head of the Federation of Industries Mohamed Al-Sewedy said that cabinet has agreed to activate the law of local product preference.
(AFP File Photo)

By Nihal Mounir and Mostafa Fahmy

The cabinet has agreed to activate the law of local product preference Mohamed Al-Sewedy, head of the Federation of Industries, said that this law works to support the industry by incorporating micro-industries into the system as partners in the development process, maintaining the corporate business sector and small and medium enterprises, promoting cooperation and integration between different sectors.

El-Sewedy added that the industrial sector was not represented in government tenders due to the lack of standardisation of specifications in Egypt as well as the industry lacking a real opportunity to prove itself.

El-Sewedy pointed out that the application of the local product preference law is a strong factor behind the positive development of industry, in addition to the process of integration and interdependence between different industries.

The federation requested two months ago that the cabinet amend some provisions to the law, in order to not have the “Made in Egypt” tag on products that are comprised of less than 40% local materials. They also requested that products be given incentives such as preference in government procurement tenders, export subsidies and access to customs exemptions offered by trade agreements.

He pointed out that this decision will lead to the increase in the number of labour and resources of the state in terms of foreign currency, in addition to attracting new foreign investments to Egypt.

Al-Sewedy emphasised that expanding industry will in turn lead to diverse job creation, all of which will lead to the beginning of a medium-sized economic system.

He explained that the 40% rule would be applied and a 15% price preference obtained in government tenders.

He added that the law will help companies to implement a culture of integration and cooperation with other private sector companies and factors as well as holding company factories that are currently out of operation and factories associated with the armed forces, which include advanced capabilities.

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https://wwww.dailynewssegypt.com/2014/09/09/cabinet-agrees-activate-local-product-law/
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