CAIRO: The Federation of Egyptian Industries (FEI) will meet Thursday with Minister of Industry Mounir Fakhry Abdel Nour to lay the final foundations for a new Local Production Protection Law, Youm7 reported FEI head Mohamed al Suwaidi said, Youm7 reported Tuesday.
“The new law will promote our national industry and reduce the illegal parallel market,” Suwaidi said.
Youm7 quoted Nour as saying the FEI began preparing the draft of the law in May. He added that the new law obliges governmental authorities to buy local products instead of imported products.
“According to the law, the government would purchase any local industry provided that the proportion of local components in the product is at least 40 percent,” stated Nour, who confirmed that this percentage could be amended before the law is adopted.
Magdy al-Manzalawy, a member of the FEI’s board of directors, welcomed the new law. “It encourages the local industrial sector to increase production and gives local products priority in purchases paid by the government provided that the quality and price are acceptable for the state’s authorities,” he said.
Manzalawy told The Cairo Post Wednesday that there should be sanctions and penalties for those who violate the law and called on the government to take urgent measures to protect local industry from imported and smuggled products.
“The Egyptian market is now full of imported low-price products including clothes, shoes, bags, automobiles, motorcycles, cigarettes and children’s toys, so the government should give local industry a fair chance rather than encouraging imported products,” he added.
”All measures should be taken to protect Egyptian-made products as well as to protect consumers from poor quality products,” He said. “We are in dire need of new legislation to fight indiscriminate importing as well as to protect our local production.”
Additional Reporting by Selim Aly.