Prime Minister Jean Chrétien today announced the signing of three Canada-Egypt bilateral agreements, as well as the launching of a number of Canadian Government supported private sector initiatives in the environmental field, following his meeting with Egyptian Prime Minister Atef Ebeid in Cairo.

"The agreements signed today reinforce Canada’s commitment to strengthening bilateral trade and investment relations with Egypt", said Prime Minister Chrétien. "Canada is a world leader in environmental services. Our private sector looks forward to participating in projects that will showcase their expertise, while enhancing the living conditions of the people of Egypt."

The following agreements were witnessed by Prime Minister Chrétien and Prime Minister Ebeid:

A Memorandum of Understanding (MOU) on Environment Technology Cooperation will promote cooperation and trade in the field of environmental protection. It will lead to the creation of a joint steering committee to oversee joint projects beginning with methane gas recovery from landfills, retrofitting two-stroke motorcycle engines and incorporation of Egyptian environmental technologies on the Canadian Environmental Solutions CD-ROM. The agreement was signed by Canadian Ambassador Marie-Andrée Beauchemin, on behalf of Canada and, Dr. Nadia Makram Ebeid, Minister of State for Environmental Affairs, on behalf of the Government of Egypt.

A Memorandum of Understanding to support the Ministry of Economy and Foreign Trade in the development of policies, legislation and regulations supporting Micro-Small and Medium-Sized Enterprises (M/SME) development was signed by Canadian Ambassador Beauchemin and His Excellency Dr. Youssef Boutros Ghali, Egyptian Minister of Economy and Foreign Trade. The agreement provides for an advisory group to provide the Egyptian ministry with training, research and technical assistance on the development of the M/SME sector.

A Protocol for Shipments of Certified Seed Potatoes will reduce non-tariff barriers to the Egyptian market for Canadian certified seed potatoes. The Protocol was signed by Cameron Duff of the Canadian Food Inspection Agency and Dr. Youssuf Dawoudy, Head of the Central Administration for Agriculture Quarantine of Egypt.

The Canadian Prime Minister also congratulated SNC Lavalin, for the signature of a letter of intent on a $180 million investment with the Egyptian Ministry of Housing, Utilities and Urban Communities to build and operate a major water transportation treatment and distribution facility.

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BACKGROUNDER

The MOU on Environment Technology Cooperation between Industry Canada and the Ministry of State for the Environment will promote cooperation and trade between the two countries in the field of environmental protection, with respect to equipment, technologies, services and capacity building. The arrangement places a particular emphasis on private sector participation. A Joint Canada-Egypt Environment Technology Steering Committee will be created to supervise joint projects in the areas of clean technology, climate change, water quality and waste water treatment as well as solid and hazardous waste.

The signing of this new Memorandum demonstrates Canada’s continuing commitment to the development of Egypt’s environmental sector through the transfer of modern technologies and capacity building. The Memorandum succeeds the Letter of Understanding signed in October 1998 by Industry Canada and the Egyptian Environmental Affairs Agency. The Letter of Understanding set the groundwork for the establishment of a number of joint projects:

• Methane Gas Recovery from Landfills: Jointly delivered by R.J. Burnside International Ltd of Canada and the Egyptian company Ahmed Abdel Warith Consulting Engineers, this $1.74 million demonstration project will recover methane gas from landfills in Cairo. Industry Canada and the Technology Early Action Measures component of the Climate Change Action Fund have contributed $900,000 to this project, which is being done in partnership with the Egyptian Environmental Affairs Agency.

• Retrofitting Two-Stroke Motorcycle Engines: The Canadian Company Yugotech and the Egyptian Light Transportation Manufacturing Company (El TRAMCO) will deliver this $1.41 million project which will convert gasoline-fuelled motorcycles to operate on natural gas. Industry Canada, Environment Canada and the Technology Early Action Measures component of the Climate Change Action Fund have contributed $690,000 to this project, which is being done in partnership with the Egyptian Environmental Affairs Agency.
  
• Canadian Environmental Solutions CD-ROM: The Canadian Environmental Solutions CD-ROM, developed by Industry Canada, is a multimedia, interactive CD-ROM of environmental problems and their technological solutions. A two-phase $300,000 project will be undertaken to translate the CD-ROM into Arabic and build on the database to include Egyptian environmental technologies, services and companies. Canada’s contribution is $100,000.

Memorandum of Understanding to support the Ministry of Economy and Foreign Trade in the development of policies, legislation and regulations supporting Micro-Small and Medium-Sized Enterprises (M/SME) development provides for the establishment of an advisory group within MOEFT which, in addition to the above, will provide the Ministry with training and technical assistance, conduct research on related topics and network between the government and M/SME stakeholders.

Development of the M/SME sector is vitally important for the future of Egypt. The M/SME sector currently employs 65% of the labour force (a figure expected to rise to 75% within a few years). The Government of Egypt which has identified the development of the sector as a priority, expects it to create 325,000 new jobs annually to absorb new entrants into the work force.

The project, which is receiving funding of $4.36 million from the Canadian International Development Agency and $500 000 from the International Development Research Centre, begins in April and will last a maximum of 4 years.

The Protocol for Shipments of Certified Seed Potatoes signed by the Canadian Food Inspection Agency and the Egyptian Ministry of Agriculture and Land Reclamation will reduce non-tariff barriers to the Egyptian market for Canadian certified seed potatoes by eliminating unnecessary certifications and tests for diseases and parasites that do not exist in Canada. It will also harmonize examination methods for inspections of certified seed potatoes in Canada and Egypt. A three-year interim period will be in effect where Egyptian inspectors will visit Canada and approve shipments.

As a result of this Protocol, Canadians will enjoy greater access to the Egyptian seed potato market and Egyptians will enjoy lower prices for these products, due to increased competition.