Trade dispute slows the flow of FMCG exports from Egypt to Libya

Consignments of soft drinks and yoghurts are among the products that have refused entry by Libyan authorities at the Al-Salloum land border crossing with Egypt.

Several thousand cartons of Schweppes lemon and mint soft drink were rejected by the Libyans last week, on grounds that most had passed their expiry date.

A thousand cartons of Almarai strawberry yogurt suffered a similar fate on grounds that they contained a prohibited colour agent known as E120. The agent is legal in many countries, including EU states.

According to some commentators, the real reason is a tit-for-tat response to Egypt’s decision to raise entry fees for Libyans entering the country. Citizens of both countries regularly cross the borders because the have family and tribal ties on both sides.

“We can read the new hardline approach by Libyan authorities as an attempt to send a clear message to Egypt’s government about its feelings on the new border fees,” comments Trendtype, the London-based emerging markets consultancy.

“Libya is an important expansion target for Egyptian manufacturers, keen to develop a valuable export market for what is currently overcapacity in the FMCG manufacturing sector.”

Consignments of soft drinks and yoghurts are among the products that have refused entry by Libyan authorities at the Al-Salloum land border crossing with Egypt.

Several thousand cartons of Schweppes lemon and mint soft drink were rejected by the Libyans last week, on grounds that most had passed their expiry date.

A thousand cartons of Almarai strawberry yogurt suffered a similar fate on grounds that they contained a prohibited colour agent known as E120. The agent is legal in many countries, including EU states.

According to some commentators, the real reason is a tit-for-tat response to Egypt’s decision to raise entry fees for Libyans entering the country. Citizens of both countries regularly cross the borders because the have family and tribal ties on both sides.

“We can read the new hardline approach by Libyan authorities as an attempt to send a clear message to Egypt’s government about its feelings on the new border fees,” comments Trendtype, the London-based emerging markets consultancy.

“Libya is an important expansion target for Egyptian manufacturers, keen to develop a valuable export market for what is currently overcapacity in the FMCG manufacturing sector.”