Egypt, region's key to commerce, investment, stability
Egypt-Regional-USA, Economics, 4/27/2000

The AmCham's 17th Door knock mission which represents the Egyptian private sector, has recently visited Washington on its own members' initiative without any governmental interference . Through a long time now, the Mission could establish strong relations in the American circles, working under the slogan of the "Interest of Egypt"; this year's slogan was: "Egypt, the Region¹s key to Commerce, investment and stability".

For this year, the Amcham's Door knock mission has realized an unprecedented success. An Egyptian statement said "We can, at first, introduce some indicators and remarks:

1 - The mission's works and activities came at a time prior to Mubarak's successful and historic US visit. Accordingly all its meetings were carried out in the context of a general American concern about all the Egyptian affairs and issues.

2 - A high grade of sincerity and commitment was shown by the mission's members all through their discussions, displaying Egypt's realities and future to all the personalities they met.

3 - There was no controversial issues between the Door Knock mission and the American personalities they convened with, equally in the Congress or the specialized research centers. Such controversial issues which constituted a "traditional" axis of debate have disappeared this year to be practically replaced by the slogan adopted by the mission; "Egypt, the Region¹s Key to Commerce, Investment and Stability" .

4 - The issues raised by the American parties found persuasive answers from the mission¹s side, such as: privatization of public banks, exchange rates, bilateral trade problems, deficiency of American investments in Egypt, attributing great significance towards the COMESA as a key to Africa, sub-industries, relations between the Egyptian private sector and sub-industries in some American States, oil prices and their increase, real estate mortgage law, tax reform, investment climate and copyright law.

5 - The AmCham's Door knock delegated yearly to the US is a continuously renewable group with new incoming elements who have proved their success and capability in performing the tasks entrusted to them in the US. These new elements, in fact, gain experience, talents and contacts, to return back to Egypt with news, ideas and relations beneficial to their homeland Egypt.

6 - This year's mission, as explained by the Chairman of the AmCham in Cairo acquired a particular significance as it coincided with President Mubarak's visit to the US. The mission was composed of 42 Egyptian and American businessmen. Talks were arranged through meetings with about 22 ministers and officials of the Egyptian government before the mission's departures to Washington. Several issues were coordinated with the Egyptian Ambassador to Washington, foremost of which the promotion of trade and investments in Egypt.

7 - The Chairman indicated that the AmCham contributed, in cooperation with the Egyptian Embassy, to the organization and promotion of a dinner given at the Library of Congress attended by the First Lady Suzanne Mubarak with the aim of raising a fund for financing the project of the Bibliotheca Alexandrina. The contributions of a number of American companies and Egyptian businessmen reached more than $600,000 . A number of American officials, including the Minister of Energy, Congress members and about 440 invitees also attended the dinner.

In the course of the mission¹s visit to Washington, several important issues on the Egyptian-American relations, were raised:

1- The mission conveyed a message on the continuing economic progress in Egypt whose market is currently classified as one of the main emerging market worldwide. Egypt has also succeeded to continue its economic development and reform, adding thus, a significant dimension. This message could include two important lateral points which should be emphasized:

A - The increasing importance of foreign investments in Egypt: In this respect, the mission submitted recent data on the most important American investments in Egypt, besides the projects in search for American financing, and the additional incentives decided by the Egyptian government for American and foreign investors.

B - The dynamism of the Egyptian bourse: The fast growth of the Egyptian bourse and the continuing use thereof by Egyptian and foreign companies to finance their activities, found a great interest in Washington- given that the increase in the bourse transactions constitutes an indicator of the success and stability of the Egyptian economy.

2 - Political and strategic partnership between Egypt and the US:     The military and strategic importance of Egypt was emphasized to the US by focusing on the importance of peace in the region and the presentation of facts as regards the reciprocal trade and investments between Egypt and Israel, and some aspects of the successful bilateral economic cooperation- besides the data on the proposed project of the gas pipeline between the two countries. The Congress members were reminded that the Israeli acts in Lebanon have a negative effect on the Egyptian public opinion towards cooperation with Israel.

3- Program of the USAID in Egypt:     The mission referred to the contribution of the USAID Program in the realization of economic growth in Egypt, and supporting the Egyptian private sector in developing and betterment of its performance. Accordingly, decreasing the American aid to Egypt, and stressing the transfer from the aid to the trade comes as a result of the success of the Egyptian economy.

4- The Egyptian viewpoint on a post-peace Middle East:     When the Door Knock mission was visiting the US, the Palestinian and Israeli negotiators have been undertaking talks, also in the US, on the Middle East peace process. The Congress members were interested to know the viewpoint of Egypt, specially the private sector, as regards the peace process both on the Palestinian and Syrian tracks, and the economic cooperation in the region when an agreement on a comprehensive peace is reached. Hence it was emphasized that Egypt constitutes the cornerstone in this process, because a permanent peace or any economic cooperation can not be reached in the Middle East without Egypt.

5-Religious freedom:     During the few occasions in which the religious freedom was evoked with the Congress members, the mission highlighted the religious freedom in Egypt, stressing that there is no difference between a Muslim and a Christian, because they are all Egyptians.

It is worth mentioning that the US, according to the official sources, is on the top of the States investing in Egypt. The General Authority for Investment and Free Zones estimates the volume of funds invested in 225 projects at about $868 million by the end of September 1999, clearly higher than the funds invested by the end of 1998 which were around $542 million- given that these figures represent the American investments in companies and projects subjected to the Law 203, and do not include the American investments in the oil sector. BP-Amoco is considered the biggest investor in Egypt, besides other giant American companies such as Mobil, Texaco etc.

On the other hand, and according to the IMF recent reports, the Egyptian exports to the US amounted to $635 million in 1998 i.e. 13% of the value of the Egyptian exports in the same year, whereas the Egyptian imports from the US amounted to about $3366 million i.e. about 15.2% of the value of the Egyptian imports in the same year.

The US is considered the most important individual commercial partner. But it is worth noting that the EU States, together, occupy an extremely important place as a commercial partner with Egypt- nevertheless none of its individual States can compete with the US as the first partner with Egypt in view of the great volume of the Egyptian imports from the US, some of which is, in fact, linked to the American aid to Egypt.

For their part, the American imports from Egypt, constitute only 0.1% of the total value of the American imports from the whole world in 1998- Egypt being no. 65 among the countries exporting to the US, and no. 35 among the countries importing from the US with a 0.5% of the total American exports to the whole world.

In fact, there is a severe commercial imbalance between Egypt and the US. According to the IMF surveys, the commercial deficit reached $2731 million in 1998 for the benefit of the US, compared to the accumulated 4-year deficit as from 1995 which reached $7842 million. This deficit is considered too huge for the Egyptian economy and the Egyptian foreign trade, and reflects an unfair imbalance in the trade between Egypt and the US.

Therefore, they is not logic to those quantitative restrictions imposed on the Egyptian exports to the US. The promotion of bilateral commercial relations has to begin by removing these restrictions in order to redress this severe commercial imbalance, the statement concluded."

Previous Stories:
  US congressional delegation visits Egypt   (4/20/2000)
  Moussa meets U.S Congressman Bill Archer on cooperation   (4/18/2000)
  Mubarak - Gore joint statement   (3/30/2000)

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