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Legal Alert 162

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The Egyptian Cotton Law
Act No. 140 of 2021

High quality cotton can be grown in some parts of the world, However Egyptian cotton has renowned competitive advantages, and is widely regarded as the highest quality cotton in the world.

Nationally, Egyptian Cotton has a significant economic impact with a reported 9 million people involved in the agriculture and cotton trade.

In order to protect Egyptian cotton against fraud and commercial exploitation by manufacturers; The Ministry of Industry has launched a brand for “Egyptian Cotton” to help consumers in various world markets distinguish between original and imitation Egyptian cotton.

Access to this brand is only attainable after the fulfillment of a number of stringent conditions to ensure compliance. Once licensed the Ministry’s “Egyptian cotton” logo can be placed on various products, which will continue to be tested at all stages of production to ensure quality. Thereafter, random, and periodic DNA samples will be taken of the manufactured fabric to ensure that the product is indeed made of 100% Egyptian cotton.

Recently, certain provisions regarding Egyptian cotton have been amended by Act No. 140 of 2021, Under these amendments, all cotton spinners must provide information on the quantities and types of cotton they have in their possession. In the event of violation, the cotton will be confiscated, and the legally prescribed penalties will be imposed, namely, imprisonment for a period not exceeding six months, a fine, and the state’s right to claim compensation.

The state’s control over the cotton market and the trade process has led to the restoration of manufacturer confidence in cotton and cotton blends, grown in Egypt. Already, this has led to an increase in demand for Egyptian cotton by more than 25% during 2020/2021.

To conclude, the Egyptian State is vigorously moving forward with developing the cotton trading system and combating the use of the wording ‘Egyptian cotton’ on imitation products. This will, in turn, result in an increase in the demand for Egyptian cotton and will directly improve farmers’ livelihoods and help achieve sustainable development.

To find out more, please fill the form or email us at: info@eg.andersen.com

Written By

Noor Mahdy - Attorney at Law

Copyright © 2020 Andersen Egypt, All rights reserved.

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