Egypt signs Qualified Industrial Zones agreement with Israel, the USA

Egypt,US and Israel sign today the Qualified Industrial Zones (QIZ) protocol. Egypt's Foreign Trade and Industry Minister Rasheed Mohammed Rasheed will sign for Egypt, US Trade Representative Robert Zoellick for US and Israeli Deputy Premier Ehud Olmert for Israel.

An agreement has been concluded with the US to establish seven Qualified Industrial Zones (QIZs)in Egypt in an initial phase to export Egyptian products to the US, Minister Rasheed said.

Other QIZs could be chosen after nine months, he added during a meeting of the Egyptian -British Business Association late Sunday.

He denied media reports that an agreement to be signed Tuesday with the US and Israel would be confined to the establishment of only one QIZ.

At the beginning, he said, the US had insisted that only one or two industrial zones to be covered by the proposed protocol.

However, under Egyptian insistence to widen the scope of the agreement, the US agreed to set up seven zones, he added.

Joining the new industrial zones by Egyptian factories will be optional, Rasheed said, adding that no factory would be forced to export its products to the US through the QIZ mechanism.

Israeli components in Egyptian products to the US market will not be less than 11.7 per cent, the Minister said.

The agreement will increase US and other foreign investments in Egypt and Egyptian exports to US markets, he added.

Egypt will not backtrack on its commitment to merge into the global market and build a strong economy to cope with the 21st century, he said.

Meanwhile, the Egyptian protection policy had not helped exports which represent only eight per cent of the gross domestic product of the country.

"The era of protection has passed.

The protection policy has never been helpful at any time," he said.

Maximum benefit from international global trade agreement will be sought besides reform measures to promote Egypt's economy, the Minister said.

Global agreements encourage the open-door policy which helps eliminate obstacles facing the promotion of Egyptian products to compete in the world markets, he added.

The application of the GATT agreement will help Egypt defend its interests as a food-importing country, Rasheed said.

Merging into the world economy is a must dictated by Egypt's interests to increase the growth rates and job opportunities and improve the standard of living, he concluded.