US parliamentarians talks with Egypt on free trade area
Egypt-USA, Economics, 11/4/2000

Some 45 US representatives forwarded a letter to the US President Bill Clinton to open negotiations with Egypt on concluding a free trade area agreement between the two countries.

The representatives referred to the important regional role Egypt plays and the economic reform it adopts.

They described Egypt as one of the most important US allies. in the Arab region.

Egyptian Ambassador in Washington Nabil Fahmy said the letter sent to the White House Thursday night is a plus to another letter forwarded by 26 Senators on the same issue.

In statements to the Middle East News Agency (MENA) , Fahmi hoped that the letter would give momentum to start talks on free trade area between Egypt and the US after presidential elections.

"Such area would boost trade excahnge and encourage US investiments into Egypt, a common goal for those concerned with Egypt-US economic relations" he said.

The text of the letter follows: Dear Mr. President:

We write to urge that a free trade agreement be negotiable between the United States and Egypt. Egypt, one of America's most important Arab allies, is essential to our regional security interests. Egypt was the first Arab nation to conclude a peace agreement with Israel and is fundamental to moving peace negotiations forward between Israel, the Palestinians, and other Arab states.

Moreover, Egypt has one of the largest and fastest growing economies in the Arab world and is consequently, well situated to lead the region towards greater economic liberalization and cooperation. As many nations in the Middle East-North African regions are experiencing changes in their leadership, Egypt' s experience in assuring the stability of the region and its economic leadership is increasingly important.

The government of Egypt is currently undertaking significant economic reforms to further expand and liberalize the Egyptian economy in the area of private sector expansion, capital market development, and trade and investment.

In recognition of the opportunities Egypt holds for American business, Egypt and the United States concluded a Trade and Investment Framework Agreement in 1999 to provide a structure for the discussion and promotion of closer bilateral economic relations.

The next step in our bilateral relations is nego implementation of a free trade agreement.

A free trade agreement with Egypt would also support ten-year economic assistance negotiated with the United in 1998. The United States supports trade relations rather than a relationship centered on foreign assistance.

President Mubarak emphasized during his meetings in Washington, earlier this year, that Egypt is pursuingan economic relationship with the United States based on "trade, not aid."

A free trade agreement will greatly enhance the relationship America seeks with Egypt.

A US-Egypt free trade agreement, when combined trade arrangements with Israel, the Palestinians, and Jordan, would form the basis for a Middle East Free Trade Region with the essential peace partners.

Regional economic integration will be a key to lasting peace and stability in the region.

As part of its economic reform and liberalization process Egypt is considering signing an Association Agreement with the European Union (EU), similar to the agreements already signed by a number of other countries.

These Association Agreements provide for a Reciprocal extension of duty-free treatment for industrial products EU and signatory countries over a twelve-year period.

In light of the expected increased volume of trade as a result of these agreements, signatory countries may also increasingly adopt European product standards and positions on WTO issues that will disadvantage US products.

A free trade agreement between the United States and Egypt would enhance the competitiveness of our products on the market. Furthermore, it is in the United States interest to conclude such an agreement with Egypt which is about to conclude its with the EU.

Mr. President, we strongly urge you to commence negotiations with Egypt on a US-Egyptian free trade agreement. At the same time, we urge you to examine the WTO consistency and impact that EU Association Agreements are having on US exporters.

Previous Stories:
  Egypt to discuss in November a free trade zone with U.S.A   (10/6/2000)
  Egypt-US Symposium urged the need to a Free Trade Zone   (10/3/2000)
  Amr Moussa denies crisis in ties with US, outlines issues involved   (10/2/2000)

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