About QIZ  > What is QIZ?

Qualifying Industrial Zones (QIZ) are geographically designated areas in Egypt determined by the Egyptian government and approved by the US government where industrial products originated in Egypt and satisfying agreed-upon Israeli content - as per predefined rules of origins mostly based on relevant WTO rules - are granted free entry into the U.S. customs territories.

QIZ was first introduced in 1996, when the U.S. Congress, aiming at reinforcing peace in the Middle East, issued decree 6955, which authorized duty-free entry into the U.S. for the industrial products manufactured jointly with Israel and originated in Egypt. Cumulative rules of origins may also apply to input from the U.S., Jordan, or the West Bank and Gaza Strip. In 1999, Jordan reached a protocol to enforce the above-mentioned decree.

Having observed the positive economic results of the QIZ protocol with Jordan and bracing for the phasing out of the quantitative quotas on textile (The WTO Agreement on Textile and Closing, ATC) that posed a great threat to the international competitiveness of the Egyptian textile and ready-made garment industry, the Egyptian Government decided to accommodate the concerns of the Egyptian producers and employees of the industry through negotiating a QIZ protocol to the best of Egypt's national interests including those of all other industries covered by the protocol. It is worth mentioning that the Egyptian textile industry amounts to a billion Egyptian pounds in assets, employs a million workers and contributes 30% of the Egyptian industrial exports.

While this protocol is a non-reciprocal arrangement between Egypt and the United States, it is expected to be a step towards a Free Trade Agreement (FTA) between the two countries.

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