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Establishment of Technical Secretar

Establishment of Technical Secretariat for Committee of Preference of Egyptian Product
On 8 March 2016, the Ministry of Industry issued a decision whereby it established the Technical Secretariat for the Committee of Preference of Egyptian Product (hereinafter “the Committee”).[1] The Committee was established in October 2015, by virtue of the Law of Preference of Egyptian Product in Government Contracts (hereinafter “the Law”). The Establishment of the Technical Secretariat of the Committee constitutes another step to complement the administrative framework needed to carry the Law into effect.  
Background and Context
The President of Egypt had promulgated the Law on Preference of Egyptian Product in January 2015, as detailed in the February Issue of Egypt Legal Update. The Law held State institutions and authorities, e.g. ministries, local administrative authorities, bound to give preference to give Egyptian products while concluding two types of contracts: 1) purchase contracts, and 2) contracts for projects. The Law also obliged State Owned Enterprises to give preference to Egyptian products only in contracts for projects. The idea behind the Law, clearly, is to encourage local production. It, however, included certain criteria and circumstances where government authorities would have the possibility to conclude contracts without favouring Egyptian product. The Law therefore aims to encourage local production, without undermining the importance of securing good-quality goods, products and services for governmental bodies.  
Role of the Committee
The Law established the Committee to enhance competition and guarantee preference of Egyptian products. To these ends, the Law determined that the Committee should be responsible for matters such as: create a database of contracts, set rules for executing the Law, disclosing information related to such contracts, receiving and investigating complaints, and drafting quarterly reports to be submitted to the Prime Minister. The Prime Minister had established the Committee in October 2016, and determined its formation and organisation of sessions.[2] The latest Decision, however, established the Technical Secretariat. The Secretariat would observe the execution of the recommendation of the Committee, receive complaints regarding breaches of the Law, and also observe the governmental authorities’ execution of their obligations to announce and disclose the information related to their contracts.  
Free Trade and Egypt’s International Obligations
In the wake of the promulgation of the Law, some commentators argued that the Law was inconsistent with Egypt’s international obligations, especially those obligations stemming from Egypt’s membership of the World Trade Organisation (hereinafter “WTO”). The most important obligations in this regard are those established by 1) “Most-favoured-nation” principle, and 2) “National treatment” principle. Nevertheless, government purchases have a special status under the WTO regime. Indeed, such purchases are clearly exempt from the abovementioned obligations by virtue of Article 3 of the General Agreement on Tariffs and Trade (“GATT”) and Article 13 of the General Agreement and Tariffs and Services (“GATS”).  
Conclusion
The latest Decision constitutes a step to guarantee the execution of the Law of Preference of Egyptian Product. After the promulgation of Executive Regulations for the Law in September 2015 and the Decree Establishing the Committee in October 2015, this Decision comes as the third form of secondary legislation that aims to carry the Law into effect. This Law, however, is not the first attempt to encourage local production. Indeed, the government made other attempts, such as the stipulation of the Government Procurement Law that obliges administrative units of the State to favor Egyptian products if the price-difference between Egyptian and foreign products is less than 15%. [1] Decision of Minister of Industry No. 127 of 2016, Official Gazette, Issue No. 56, 8 Mar 2016. [2] Prime Minster Decree No. 2675 of 2015, Official Gazette, Issue No. 42 (bis)(c), 15 Oct 2015.
On 8 March 2016, the Ministry of Industry issued a decision whereby it established the Technical Secretariat for the Committee of Preference of Egyptian Product (hereinafter “the Committee”).[1] The Committee was established in October 2015, by virtue of the Law of Preference of Egyptian Product in Government Contracts (hereinafter “the Law”). The Establishment of the Technical Secretariat of the Committee constitutes another step to complement the administrative framework needed to carry the Law into effect.  
Background and Context
The President of Egypt had promulgated the Law on Preference of Egyptian Product in January 2015, as detailed in the February Issue of Egypt Legal Update. The Law held State institutions and authorities, e.g. ministries, local administrative authorities, bound to give preference to give Egyptian products while concluding two types of contracts: 1) purchase contracts, and 2) contracts for projects. The Law also obliged State Owned Enterprises to give preference to Egyptian products only in contracts for projects. The idea behind the Law, clearly, is to encourage local production. It, however, included certain criteria and circumstances where government authorities would have the possibility to conclude contracts without favouring Egyptian product. The Law therefore aims to encourage local production, without undermining the importance of securing good-quality goods, products and services for governmental bodies.  
Role of the Committee
The Law established the Committee to enhance competition and guarantee preference of Egyptian products. To these ends, the Law determined that the Committee should be responsible for matters such as: create a database of contracts, set rules for executing the Law, disclosing information related to such contracts, receiving and investigating complaints, and drafting quarterly reports to be submitted to the Prime Minister. The Prime Minister had established the Committee in October 2016, and determined its formation and organisation of sessions.[2] The latest Decision, however, established the Technical Secretariat. The Secretariat would observe the execution of the recommendation of the Committee, receive complaints regarding breaches of the Law, and also observe the governmental authorities’ execution of their obligations to announce and disclose the information related to their contracts.  
Free Trade and Egypt’s International Obligations
In the wake of the promulgation of the Law, some commentators argued that the Law was inconsistent with Egypt’s international obligations, especially those obligations stemming from Egypt’s membership of the World Trade Organisation (hereinafter “WTO”). The most important obligations in this regard are those established by 1) “Most-favoured-nation” principle, and 2) “National treatment” principle. Nevertheless, government purchases have a special status under the WTO regime. Indeed, such purchases are clearly exempt from the abovementioned obligations by virtue of Article 3 of the General Agreement on Tariffs and Trade (“GATT”) and Article 13 of the General Agreement and Tariffs and Services (“GATS”).  
Conclusion
The latest Decision constitutes a step to guarantee the execution of the Law of Preference of Egyptian Product. After the promulgation of Executive Regulations for the Law in September 2015 and the Decree Establishing the Committee in October 2015, this Decision comes as the third form of secondary legislation that aims to carry the Law into effect. This Law, however, is not the first attempt to encourage local production. Indeed, the government made other attempts, such as the stipulation of the Government Procurement Law that obliges administrative units of the State to favor Egyptian products if the price-difference between Egyptian and foreign products is less than 15%. [1] Decision of Minister of Industry No. 127 of 2016, Official Gazette, Issue No. 56, 8 Mar 2016. [2] Prime Minster Decree No. 2675 of 2015, Official Gazette, Issue No. 42 (bis)(c), 15 Oct 2015.