Egypt Daily News – Egypt is taking significant steps to ease the entry of American cars and dairy products into its market, in a move that could enhance trade with the world’s largest economy and the Arab world’s most populous country.
During the Egypt-U.S. Business Forum held in Cairo, Prime Minister Mostafa Madbouly announced that there is “growing interest from American car manufacturers to enter the Egyptian market.” He confirmed that a decree issued earlier this month eliminates prior requirements for importing U.S.-made vehicles. “Our market is now open to vehicles manufactured in the United States,” he said, adding that the World Trade Organization has been formally notified of the updated regulations.
Industry and Transport Minister Kamel El-Wazir reinforced this announcement, saying:
“The issues surrounding the import of American-made cars have been resolved, and Egypt is ready to receive them starting today. We have also lifted all restrictions on U.S. auto parts, while preparing the groundwork to begin manufacturing American vehicles locally in the near future.”
Dairy Products Exempt from Halal Certification
Madbouly also revealed a “historic” decision to permanently exempt U.S. dairy products and derivatives from the requirement of halal certification when exported to Egypt.
“Until the end of 2025, U.S. dairy products can be exported to Egypt without a halal certificate or related fees. Starting in 2026, a fee of $1,500 per container will apply,” he noted.
Speaking to more than 150 U.S. business executives, Madbouly also said Egypt and the U.S. are in the final stages of concluding a mutual customs cooperation agreement, which would streamline trade processes further. He noted that over 1,800 American companies are operating in Egypt with cumulative investments exceeding $47 billion over the past two decades.
U.S. Tariffs and Egypt’s Golden Licenses
Earlier in April, former President Trump imposed new U.S. tariffs ranging between 10% and 50% on goods from 185 countries—including Egypt, Saudi Arabia, the UAE, and Morocco. Egypt faces a flat 10% tariff under the new rules.
In response, Egypt is seeking to attract more American investment. Hossam Heiba, CEO of Egypt’s General Authority for Investment and Free Zones, told Asharq that Egypt plans to issue golden licenses to American firms, prioritizing industries like manufacturing, healthcare, logistics, tourism, and information technology.
Heiba said incentive packages are being prepared for sectors such as automotive, tourism, green hydrogen, and waste management, acknowledging that American investment in Egypt has not yet reached its full potential.
Omar Mohanna, chairman of the Egyptian-American Business Council, confirmed that halal certification will now apply only to meat products, not dairy, to boost competitiveness and improve services for consumers.
He added that U.S. specifications are now accepted for vehicle manufacturing in Egypt, opening the door for American carmakers and related industries to access the local market.
Trade Performance and Challenges
Egypt aims to increase its exports to the U.S. by 10% in 2025, targeting $2.47 billion. However, given the current U.S. tariff landscape and global economic conditions, officials expect limited growth.
The 10% U.S. tariff on Egyptian goods raised concerns among some about its potential impact. While some see it as an opportunity to attract more U.S. investment, others warn it may hurt Egyptian exports and strain global trade relations, affecting capital flows to emerging markets, including Egypt.
In 2024, the U.S. accounted for 5% of Egypt’s total exports, valued at $2.2 billion. Total bilateral trade surged by 37.4% to $9.81 billion, according to Egypt’s Central Agency for Public Mobilization and Statistics.
However, the trade deficit widened sharply, with Egypt’s deficit with the U.S. rising 68.5% to $5.315 billion by the end of last year.
Top Egyptian exports to the U.S. include apparel, iron and steel, carpets, vegetables, fruits, and cement, while imports from the U.S. mainly include fuels and mineral oils, grains, medical plants and animal feed, aircraft and space equipment, and machinery.
In Q1 2025, Egyptian exports to the U.S. fell by 1.5% year-on-year to $568 million, while imports rose by 7.5% to $984 million.
Egypt has had a Qualifying Industrial Zone (QIZ) agreement in place with the U.S. and Israel since 2004, allowing Egyptian goods to enter the U.S. duty-free if they include at least 10.5% Israeli input
