Trade disputes between EU and Egypt persist over E. Coli outbreak

DNE
DNE
5 Min Read

CAIRO: The European Union has elected to cancel a mission of scientists to Egypt tasked with inspecting seed and vegetable production. This comes in response to last week’s announcement by the Federation of Egyptian Chambers of Commerce calling for a ban on EU agricultural imports.

Since July 5, the EU has elected to withdraw from the market, and temporarily ban the import of, certain types of seeds from Egypt. This verdict followed an account linking Egyptian seeds to the E. coli outbreaks in northern Germany and Bordeaux, France. The European Food Safety Authority (EFSA) reached this arrangement after deeming a batch fenugreek seeds imported from Egypt the most likely common link to the outbreak, although it cannot be excluded that other lots may be implicated.

The ban is to remain in effect until October 31, 2011 unless results from analytical tests and investigations carried out by the European member states renders Egyptian seeds secure for import.

When asked specifically about the impending ban Anca Radu, Trade Officer with the Delegation of the European Union to Egypt said, “The emergency measures taken by the EU concern only certain seeds and beans, in raw state, which are used for sprouting. Apart from these particular products, any vegetables and fruits can be exported to the EU.”

Egypt total exports to the EU grossed € 7.1 billion or $10.2 billion in 2010, 8.5 percent of which consisted of agricultural products.

“The estimated impact on EU-Egypt trade for the concerned period is about €5.6 million or $8.1 million, representing 0.88% of EU’s annual imports of agricultural products from Egypt,” confirmed Radu when asked of the impact on trade as a result to the halting of Egyptian seed and vegetable exports.

“At the heart of the matter is a serious concern related to health, which is a justified reason for temporarily suspend trading rights,” said Fredrik Erixon, director of European Centre for International Political Economy. “Yet the EU has not handled the process well, failing to treat Egypt as a respected trading partner that now is in desperate need of help.”

Article 3 of the Commission Implementing Decision of the trade ban, found in Official Journal of the European Union, specifies that EU scientists shall regularly reassess the measures of the ban while coordinating with the Egyptian government. In spite of this, the EU has failed to send personal to Egypt in order to confirm the previous conclusion as well as assess the current situation.

When asked of the pending inspection Mark Ballie, director of Risk Analysis for the AKE group said, "In five weeks the EU has not sent scientists to Egypt for tests and that is an unacceptable response to what is an emergency, for European consumers and for Egyptian producers.”

Ballie went on to add, “This is no minor bureaucratic trade dispute: it affects specific exports and indeed Egypt’s reputation just at a time when it is battered by world recession and its own fundamental changes."

Erixon offered insight into legal implications by saying, “The EU can easily defend its action under WTO rules or the EU-Egypt trade agreement. Retaliation from Egypt, however, would stand little chance to be upheld if such action would be taken to the WTO court.”

He went onto add, ““In the short term it is key for both parties to arrest potential slippage and avoid grandstanding or emotional reactions.”

A representative from the EU delegation to Egypt has confirmed there is no current date sent for a mission of scientists to evaluate the state of Egyptian agricultural exports to the EU.

 

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