Cabinet agrees to activate local Product Law

The cabinet has agreed to activate the law of local product preference Mohamed Al-Sewedy, head of the Federation of Industries, said that this law works to support the industry by incorporating micro-industries into the system as partners in the development process, maintaining the corporate business sector and small and medium enterprises, promoting cooperation and integration between different sectors.

El-Sewedy added that the industrial sector was not represented in government tenders due to the lack of standardisation of specifications in Egypt as well as the industry lacking a real opportunity to prove itself.

El-Sewedy pointed out that the application of the local product preference law is a strong factor behind the positive development of industry, in addition to the process of integration and interdependence between different industries.

The federation requested two months ago that the cabinet amend some provisions to the law, in order to not have the “Made in Egypt” tag on products that are comprised of less than 40% local materials. They also requested that products be given incentives such as preference in government procurement tenders, export subsidies and access to customs exemptions offered by trade agreements.