Political Economy of Egypt’s Regional Trade Integration Policy: The Case of Joining the Tripartite Free Trade Agreement

The paper argues that Egypt's decision to join the TFTA is driven by a combination of geopolitical interests, a long-term shift toward trade liberalisation, and a desire to maintain influence in Africa. While static economic gains may be modest due to existing COMESA memberships and structural barriers, the author suggests that the TFTA offers a more consistent policy path than joining a customs union, potentially enhancing Egypt's role as an investment hub and improving relations with other African states.

• Egypt's trade policy has shifted from import substitution to export promotion since the 1990s, characterized by a general trend toward liberalisation on unilateral, regional, and multilateral levels.
• The Egyptian government has historically used preferential trade agreements (PTAs) to signal political interest and buy time when faced with contradictory obligations, such as the simultaneous pursuit of customs unions with both the Pan Arab Free Trade Area (PAFTA) and the Common Market for Eastern and Southern Africa (COMESA).
• Egypt's experience with COMESA has yielded modest trade gains, with the share of trade with member states remaining low (2.8% in 2012) and growth largely attributed to Libya's accession in 2005.
• Structural and institutional barriers, including non-tariff measures (NTMs), poor infrastructure, and a lack of transparent trade-remedy mechanisms, have hindered Egypt's ability to fully exploit COMESA.
• Joining the TFTA is viewed as a strategic geopolitical move to reduce political frictions, particularly regarding Nile River water disputes, by increasing economic interdependence with African nations.
• The TFTA is considered more consistent with Egypt's trade policy than a customs union, as the latter would restrict Egypt's flexibility in designing its own tariff structures and could force withdrawal from other PTAs.
• Competition between Egypt and South Africa within the TFTA is expected to be minimal because their African trade is segmented by geographical proximity and historical ties, and they possess complementary export structures.
• The actual economic benefits for Egypt from the TFTA will depend heavily on the design of the rules of origin (RoO) and the potential for cumulation of value chains, particularly with South Africa.

APA

Ghoneim, A. F. (2013). Political Economy of Egypt’s Regional Trade Integration Policy: The Case of Joining the Tripartite Free Trade Agreement. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/12/Occasional-Paper-169.pdf

Chicago

Ghoneim, Ahmed Farouk. Political Economy of Egypt’s Regional Trade Integration Policy: The Case of Joining the Tripartite Free Trade Agreement. South African Institute of International Affairs, 2013. https://saiia.org.za/wp-content/uploads/2013/12/Occasional-Paper-169.pdf.

Wikipedia

{{cite report |last1=Ghoneim |first1=Ahmed Farouk |title=Political Economy of Egypt’s Regional Trade Integration Policy: The Case of Joining the Tripartite Free Trade Agreement |publisher=South African Institute of International Affairs |date=December 2013 |url=https://saiia.org.za/wp-content/uploads/2013/12/Occasional-Paper-169.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ghoneim2013political, author = {Ghoneim, Ahmed Farouk}, title = {{Political Economy of Egypt’s Regional Trade Integration Policy: The Case of Joining the Tripartite Free Trade Agreement}}, institution = {South African Institute of International Affairs}, year = {2013}, month = dec, url = {https://saiia.org.za/wp-content/uploads/2013/12/Occasional-Paper-169.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }