US partnership progam grows
Egypt-USA, Economics, 3/27/2000

Minister of Finance Medhat Hassanein said Saturday night that the Egyptian-US partnership is a sustained process that covers economic, trade, development, finance and funding areas.

He added that since 1994, and within the partnership agreement known as Mubarak-Gore initiative, four committees were formed.

"These are the committees for finance and investment, education, technology and environment," he said.

The annual meetings of these committees discuss means and ways of encouraging Egyptian-US cooperation in the different fields.

The committee of finance and investment raises different issues pertaining to financing, economic issues end means of encouraging the inflow to Egypt of US capital.

"It also discusses difficulties hindering tax and customs affairs," he said.

He added that the US side has expressed appreciation vis-a-vis the Egyptian efforts to reform programs of economy, customs taxation and management of debts.

International foundations and institutions also hailed the Egyptian efforts and the Egyptian economy is now placed on the map of international investment.

Minister of Finance said that the finance and investment committee considers that new US direct investments in Egypt offsets the cutting down on the US aid to Egypt.

"Reduction of the US aid by 10 per cent annually by virtue of a Congress decision was a natural development and Egypt has been preparing itself to this step," he said.

Inflow of direct US investments into Egypt comes as a result of cooperation between the Egyptian and private sectors and not as a result of governmental measures only. Thus the missions of "knocking of doors" staged by the Egyptian businessmen are important especially as those businessmen are involved in the sectors of banking, investment, industrial and trade firms and also companies working in the money market.

He told Middle East News Agency (MENA) that the US investments in any foreign country start with investment in the money market and the stock exchange.

"If the economy of this foreign country proved to be remarkably growing then US investments would be directed to resident ventures and projects," he said.

Minister of Finance said US investments ranked first among all foreign investments in Egypt. "In Egypt we depend highly on private sector investment and we also depend on encouraging the national investment," he added.

"This latter plays a pivotal role in luring foreign investments into Egypt now that the role of state in the economic activity has been curtailed," he expounded.

"The Egyptian private sector is invited to invest in the fields of building roads, ports electricity generating stations and water. Foreign investments prefer to engage in successful projects instead of setting up new ones," he further added.

"Expediting the implementation of the privatization program encourages foreign investors," he said.

"The role of the government is to prepare the good projects for privatization," he said, adding that the Egyptian government is trying to reconsider the entire taxation system.

He voiced hope that soon this system will be equal to other taxation system in developed countries.

He further said that, during his current visit in Washington, he held talks with several officials and that all the meetings dealt with ties between the Egyptian Ministry of Finance and the Department of Treasury and the role of the bank for exports and imports in activating bilateral trade.

Previous Stories:
  Decrease in commercial exchange between Egypt and USA   (3/25/2000)
  US experts stress importance of technological file in Egyptian-US talks   (3/25/2000)
  Cooperation with American states stressed   (3/25/2000)

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