US ambassador in Cairo: Reducing aid to Egypt forms no problem in relations
Egypt-USA, Economics, 6/19/1999

The US ambassador in Cairo, Daniel Kurtzer, said in a press conference held yesterday at the inauguration of the Aid to Trade '99 conference, held under the patronage of the US Agency for International Development, that President Mubarak's expected visit to Washington forms a chance for the restoration of personal meetings between him and US President Bill Clinton after an absence that lasted for a long time.

Answering a question, concerning the outcome of the US decision to reduce the volume of aid presented to Egypt and its effect on trade and economic relations between the two countries, Kurtzer said that these reductions do not form any problem in relations between the two countries. He added that the Egyptian government is greatly concerned with considering this reduction as an expression of trust in Egypt's economy.

He indicated that the USAID sposors many programs in Egypt that demonstrate the transision from Aid to trade such as agriculture programs that have resulted in increased exports. He indicated that food processing presents an good opportunity in this regard.

Kurtzer highlighted the condition of the region saying "It is a startling fact and an unfortunate fact that the Middle East absorbs less than 1% of worldwide flows of foreign direct investment.  It is an equally unfortunate fact that the Middle East doesn't trade with itself.  Only 7% of all trade within this region is among countries of this region.  This contrasts with 20% of trade between this region and the Americas, 30% of trade between this region and Asia, and 60% with Europe.  Structural reforms, increased privatization, modernization of laws and institutions, greater transparency, elimination of tariff and non-tariff barriers--all of these measures have been and continue to be critical as Egypt reforms its own economy to participate in the world economy.  They are equally critical as Egypt reforms its own economy to participate in a burgeoning regional economy."

He added that Egypt's economic reform program has been a success, and that Egypt will be an example for others to emulate.

He also said Mubarak's visit comes at an important time in the level of coordination between Egypt and USA concerning the coming steps in the Middle East peace process, adding that everybody is currently waiting for the formation of the Israeli government, chaired by Ehud Barak, which allows a chance for strategic coordination between Cairo and Washington concerning means of moving the peace process forward.

Previous Stories:
  Moussa heads to the USA on Saturday   (6/17/1999)
  US ambassador in Cairo: US hopes to start final status negotiations on Palestinian track soon   (6/15/1999)
  US ambassador in Cairo refuses to exclude convening a broad summit in Washington   (6/14/1999)
  An Egyptian report confirms obstacles before export to America   (6/12/1999)

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