Beginning in the first quarter of 2011, Nissan will supply the Egyptian market with new models manufactured in England.

The step aims to benefit from the bilateral free trade agreement (Association Agreement) between Egypt and the European Union, said Alaa Sabaa, a member of the board of directors of the General Division of Cars at the Industries Federations.

Implementation of the agreement began in 2010, with a partial reduction of personal vehicle tariffs. Another 10 per cent tariff cut will take effect in January 2011, lowering customs to 109.5 per cent for big cars and 32.4 per cent for middle class ones.

Other Korean and Japanese carmakers are expected to follow Nissan's lead and take advantage of the agreement, according to Al-Masry Al-Youm private newspaper.

The Association Agreement with the EU, which came into effect in 2004, sets up bilateral Free Trade Agreement provisions, according to which,  the complete abolishment of personal vehicle tariffs is scheduled for January 2019.