US/Israel International Free Trade Agreement (ILFTA) – Egypt (QTZ)

Laws and Regulations for LFTZ Qualified Industrial Zones (QIZs) in Egypt

Introduction: Qualified Industrial Zones (QIZs) are designated areas in Egypt where goods produced by Israeli and Egyptian companies can be exported to the United States duty-free, provided that the goods contain a certain percentage of Israeli inputs. The LFTZ (Liaison Free Trade Zone) is a designated area in Egypt that is part of the QIZ program. The laws and regulations that govern the QIZs in Egypt provide the legal framework for the operation of the program, and help to ensure that it operates in a transparent, accountable, and responsible manner.

Laws and Regulations Governing QIZs in Egypt:

  1. The QIZ Protocol: The QIZ protocol is a framework agreement between the governments of the United States, Egypt, and Israel that outlines the rules and regulations for the QIZ program. The protocol sets out the requirements for the production and export of goods from the QIZs, including the minimum percentage of Israeli inputs that must be present in the goods.
  2. Customs Laws and Regulations: The QIZ program is subject to various customs laws and regulations, including the Tariff Act, the Import-Export Clause, and the Trade Facilitation and Enforcement Act. These laws ensure that the QIZ program operates in a transparent, accountable, and responsible manner, and prevents the illegal import and export of goods.
  3. Labor Laws and Regulations: The QIZ program is subject to various labor laws and regulations, including the Fair Labor Standards Act, the National Labor Relations Act, and the Occupational Safety and Health Act. These laws ensure that the QIZ program operates in a socially responsible manner, and protects the rights and well-being of workers.
  4. Environmental Laws and Regulations: The QIZ program is subject to various environmental laws and regulations, including the Clean Air Act, the Clean Water Act, and the National Environmental Policy Act. These laws ensure that the QIZ program operates in an environmentally responsible manner, and protects the environment and public health.
  5. Investment Laws and Regulations: The QIZ program is subject to various investment laws and regulations, including the Investment Incentives Law and the Free Zones Law. These laws promote investment in the QIZ program and provide incentives for companies to operate in the program.

Conclusion: The laws and regulations that govern the Qualified Industrial Zones (QIZs) in Egypt provide the legal framework for the operation of the program, and help to ensure that it operates in a transparent, accountable, and responsible manner. These laws and regulations promote economic growth, job creation, and regional integration, while ensuring sustainability, social equity, and respect for human rights and the environment. The QIZ program offers a unique opportunity for Israeli and Egyptian companies to export their goods to the United States duty-free, and can help to promote economic development and peace in the region.