Mubarak address economic issues at NDP Congress
Egypt, Economics, 5/10/1999

The whole spectrum of the export process was the focus of discussions between President Hosni Mubarak and the business community during an Economic Congress he opened yesterday.

Attending the inaugural session of the seventh Economic Congress of the Ruling National Democratic Party (NDP), Mubarak tackled an action plan to increase Egyptian exports and enhance their competitiveness at the foreign markets. He stressed the importance of keeping the export-import balance.

He, however, remarked that the state cannot incur the burdens of slashing freight costs to promote local exports this will mean heavy losses and run counter to the free trade concept," Information Minister Safwat Al-Sherif quoted Mubarak as telling the economic forum.

The Egyptian leader stressed the state's role in providing the favorable atmosphere for export promotion through forging "distinguished" ties with the outside world. In this regard, President Mubarak cited the economic groupings which Egypt has recently joined, including the Common Market for Eastern and Southern Africa (COMESA) and the developing Group of 15.

In addition, Egypt has sealed a host of bilateral agreements with several Arab states to set up free trade zones. Increasing Egypt's exports to the outside world dominates the agenda of the NDP Congress that runs for two days.

Sherif said that Mubarak had also highlighted the state's role in effecting "legislative stability" and providing incentives for investment and export activities. "All this lays the groundwork for Egyptian products to invade new markets," he added.

Mubarak moreover took up the role of the state in quality control and assurance so as to ensure the Egyptian items will keep a good name at local and foreign markets alike.

"The government has cleared the way for the flow of capital and has fulfilled economic reforms," said Mubarak. Egypt has pursued a successful economic reform program since the early 1990s underpinned by privatization and deregulation.

The state, he said, pays full attention to the small and feeding industries by providing the opportunity for young people to walk into the labor market through launching projects financed by the Social Fund for Development (SFD)." Mubarak urged an integrated export process by creating export-orientated products.

On tourism scene, the Egyptian leader demanded that marketing policies be well-conceived and far-sighted "to avoid a plunge in hotel accommodation prices". He called on owners of tourism schemes to draw lines which would not be crossed and that their competition be based on "economic feasibility and a future vision".

Egypt's tourism industry is showing signs of full recovery from the repercussions of the 1997 Luxor tragedy. Tax evasion was also another topic debated by President Mubarak with the participants in the conference. He cautioned against the toll taken by tax dodging on the state coffers' revenues.

"The countries that finance export risks have tax resources enabling them to support these policies" he said. Mubarak also directed the government to step up the creation of technological centers with Europe .

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