In 2012 the decree was replaced by new pricing decree 499 using the same referencing system, with an increase of the pharmacy and distribution margins deducted from the ex-factory prices. The decree remains in force, though MoHP only enforces the reference pricing elements of the decree but has not implemented pricing adjustments based on exchange rate fluctuations. Pharmaceutical companies have also not implemented the pharmacy or dealer compensation elements of the decree except for the products that enjoyed a price increase. Pharmaceutical companies are engaged with MoHP and seeking the revision of certain “reference pricing” elements of Decree 499.
Sanitary/Phytosanitary Standards
Egypt has a complex array of sanitary and phytosanitary (SPS) measures and quality standards regulating its food imports. Inspection and testing procedures are often non-transparent. Its SPS and TBT measures are frequently not in compliance with Egypt’s WTO obligations and impede market access. U.S. poultry parts and offal, beef and beef products, wheat, soybeans, seed potatoes, and feather meal exports are impacted.
Anticompetitive Practices
Under Egyptian competition law, a company holding 25 percent or more market share of a given sector may be subject to investigation if suspected of illegal or unfair market practices. The law is implemented by the Egyptian Competition Authority, which reports to the Ministry of Trade and Industry. However, the law does not apply to utilities and infrastructure projects, which are regulated by other governmental entities.
In 2008, Law 3 of 2005 on Protection of Competition and Prohibition of Monopolistic Practices was amended and passed by the People’s Assembly under Law 190 of 2008. The amendment sets the minimum fine for monopolistic business practices at EGP 100,000 (USD 5,500 and the maximum at EGP 300 million (USD 16 million). It also provides for doubling the penalty in cases where violations are repeated. The first trial under both new laws involved a cement company, which was convicted in 2008 and fined EGP 200 million (USD 11 million), which was upheld on appeal.