The German Daimler Motor Company has announced withdrawal from the local assembly of its products in the Egyptian market, because of its fears of the Government's intention to further reductions on customs duties for the import of cars, especially after entering Egyptian-European partnership agreement into force, which will make customs on European cars to reach to zero% early in 2019.

So that Major General / Effat Abdulaaty Head of Auto Division at Cairo Chamber of Commerce has earned from forthcoming withdrawal of Korean, Chinese, and Japanese brand cars, especially luxury ones, which pay Customs exceed 135% in addition to the 45% sales tax. That's means they would be unable to compete with less cars in payment of Customs, which included in the decision to reduce customs.

Mr. / Alaa Alsabaa Board member of the Division also confirmed that this withdrawal was expected, indicating that the Daimler company was assembling cars "Mercedes in Egypt to avoid high tariffs, and is still wary of collapsing its sales, adding that the company is prepared for this withdrawal since the signing of the Egyptian-European partnership agreement.

For his part, Ambassador Ayman al-Kaffas, spokesman of the Ministry of Finance confirmed that the ministry is concerned with national industry and foreign investment alike, but at the same time upholding the nation and national interests of the industry.