The Motorcycle Division at the Cairo Chamber of Commerce plans to submit a memorandum to the presidency and the cabinet, objecting to the Ministry of Industry and Trade’s decision to ban the import of two-stroke engines, says division head Gamal Abdel Mouti.
Within weeks following the announcement of the decision, market prices on the models and their parts increased by between 10-15% due to the limit of supply and monopolisation of existing models by merchants.
Abdel Mouti objected to the policy pursued by the ministry towards the market and for not consulting the division in their decision making.
He explained that the division previously filed a memorandum protesting the decision to ban the import of motorcycles and auto-rickshaws, but they have thus far not received a response or changes in the ministry’s policy. The division is now directing their petition directly towards the presidency in hopes of receiving positive amendments to the deal.
If the decision remains, Abdel Mouti expects the prices for motorcycles and their parts to increase an additional 10-15%.
He stressed that there is still a strong demand in the Egyptian market for the two-stroke motors because their prices are suitable for 90% of consumers, as most do not have the financial ability to afford the high prices of three and four stroke engines.
Saeed Abdallah, head of the Foreign Trade Agreements Sector at the Ministry of Industry and Trade, explained in a statement a few days ago that two-stroke engines models had previously been permitted to be imported to cover the needs of local markets for spare parts for motorcycles that were already in use. However, the emergence of developed sophisticated models caused a lack in the need for continuing the import of these types of engines.
The Ministry of Trade and Industry issued a decision this month to stop importing motorcycles with two-stroke engines in all its forms, types, and sizes and included them to the list of suspended imported goods.
The ministry explained that the decision was made to coincide with the Minister of Industry Resolution No. 85 that it passed in 2004, banning the production of two-stroke scooters in existing companies as of 31 October 2007. Halting the import of these engines serves to close the backdoor loophole that some manufactures of two-stroke bikes had exploited to resume production of the less sophisticated models.