Egypt, Libya to ban trade of non-Egypt-made drugs

Libyan and Egyptian authorities have reached an agreement to ban the trade of pharmaceutical drugs, other than Egyptian-made, in Libya, ‘Libya Observer’ reports.

The move came following a request by the Egyptian Customs Authority to the Libyan Finance ministry to allow only the entry of Egyptian-origin medicine through the Salloum border crossing with Libya.

The Libyan ministry has approved the request arguing that the step intends to deter customs violations as part of efforts to enhance trade exchange between the two countries. Egypt is facing a critical shortage of essential medical supplies because of a lack of dollars to clear imports held up at the nation’s ports.

Cairo Chamber of Commerce in April 2023 indicated that shipments of medical products, as well as materials needed for their manufacture locally, have been held up at various ports since January 2023.

Egypt’s economy has been hamstrung by a dollar shortage since last year after foreign investors pulled out almost $20 billion from the debt market. A rise in global food and energy prices, brought on by the war in Ukraine, pushed up import bills and depleted foreign reserves.

Mohamed Ismail, head of the chamber’s General Division for Medical Supplies, reportedly indicated back then that clearing imports of materials for local manufacturers of medical products and pharmaceuticals should also be given priority as this would help to reduce Egypt’s trade deficit.

Medical and pharmaceutical supplies accounted for 38.8 per cent of the country’s exports last year and brought in revenue of $968 million, per data from the country statistical agency.