The UK and Egypt agreed to strengthen trade and political ties, adding to Britain's free-trade deals with dozens of countries as it seeks to secure its economic future after Brexit.
British businesses and consumers will continue to benefit from preferential access to North Africa's largest economy after the end of the Brexit transition period, the UK government said on Saturday.
"It will help provide both British and Egyptian businesses with new opportunities and provide them with the certainty they need to keep trading," said Liz Truss, the UK's international trade secretary.
Another trade deal signed: today the UK has signed a continuity trade agreement with Egypt 🇬🇧🇪🇬 - taking us up to 55 countries.
— Liz Truss (@trussliz) December 5, 2020
This continuity deal secures the £3.5bn of trade between our countries. pic.twitter.com/O42UCeDJgK
Last year, trade between the two countries was valued at £3.5 billion ($4.7bn), an amount which the UK government intends to increase.
Egypt is a major market for the UK, which exported goods worth £2.3bn to the country last year.
Its top exports during the period were metal ores, medicines and pharmaceutical goods while Egypt's main exports to the UK included intermediate electrical goods, vegetables and fruits.
The agreement with Egypt took the UK's free trade agreements with other countries to 55 in total, even as Britain and the European Union restart last-ditch talks on Sunday for a post-Brexit deal before the year-end deadline.
It provides a framework for co-operation and further development of political, economic, social and cultural links.
The deal will remove tariffs on industrial products and liberalise trade in agricultural products and fisheries, which will deliver “significant savings” to businesses in the UK and Egypt, the British government said.
“Stronger trade links and more investment will grow our economies and help both our countries build back better from the impact of the coronavirus pandemic,” said Dominic Raab, the UK’s foreign secretary.
The agreement will come into effect when the EU-Egypt Association Agreement ceases to apply to the UK following its departure from the bloc's single market and customs union on December 31.
British healthcare company GlaxoSmithKline welcomed the signing of the agreement.
“This important agreement will undoubtedly ensure the continuity of the strong business partnership between our two countries and allow British investors to continue to benefit from a strong and healthy investment environment in Egypt,” said Nabil Besri, general manager of GSK North Africa.
“We continue to be very optimistic about future development opportunities in Egypt and look forward to more growth under the terms of this agreement.”
The Egyptian economy exceeded expectations despite the Covid-19 pandemic as it grew by 3.6 per cent this year.
Growth is forecast to reach 2.8 per cent in 2021, according to the International Monetary Fund.
The Washington-based lender said last month that it reached a staff-level agreement with Egypt after the first review of the $5.2bn loan that was approved in June.
The IMF executive board is expected to approve the funding within weeks, and a $1.6bn tranche will be disbursed to the country.
Covid-19 had infected 118,014 people in Egypt and killed 6,750 as of Sunday, according to Worldometer. More than 103,000 had recovered.
There were more than 66.9 million infections worldwide and more than 1.53 million deaths on Sunday.
The resurgence of the virus has led governments around the world to impose lockdowns and new movement restrictions to curb the spread of the virus.
