Egyptian Exports Face Challenges Under EU's Carbon Border Adjustment Mechanism
Egypt's exports, particularly in the fertilizer, cement, and aluminum sectors, face significant challenges due to the EU's Carbon Border Adjustment Mechanism (CBAM).
Mohamed Kassem, head of the Foreign Trade Policies and Trade Remedies Committee at the Federation of Egyptian Industries and president of the Egyptian Exporters Association "Expolink," highlighted the European Union as Egypt's primary trade partner and largest importer of fertilizers and metals.
He noted that Egyptian products falling within the scope of the EU's Carbon Border Adjustment Mechanism (CBAM) account for 3.76% of Egypt's total exports and about 10% of its exports to the EU. The sectors most affected by CBAM decisions, contributing 0.3% to Egypt's GDP, include fertilizers and cement, with Egypt being among the top 10 exporters of these products to the EU in 2022.
Kassem emphasized the enormous challenges faced by the fertilizer, cement, and aluminum sectors in Egypt due to CBAM. Approximately 79% of Egypt's aluminum exports are directed towards the EU market, and the full implementation of CBAM poses a significant threat to these industries. However, he also pointed out Egypt's lower carbon emissions, at about 0.6% of global emissions, compared to other major countries.
Egypt's potential in renewable energy could enhance the competitiveness of its industries concerning greener exports, as Egyptian companies can manufacture cleaner products at lower costs and higher efficiency than their foreign counterparts. Kassem expressed hope for further fruitful cooperation in pursuing a greener economy, which would strengthen long-term trade and industrial partnerships.
Source: Ahl Masr News
