CAIRO: The US is aiming to establish a Free Trade Agreement (FTA) which comprises the entire Middle East within seven years according, US Deputy Secretary of Commerce David A. Sampson said at a round table on Tuesday.
Sampson, visiting Egypt where he met government officials, had inaugurated the new US-Egypt Business Council USEBC a day earlier with Minister of Trade and Industry Rachid Mohammed Rachid.
The deputy secretary stressed that Egypt must be part of this Middle Eastern FTA, assuaging concerns over the stalled talks between the two countries concerning their trade agreement.
“A Middle East Free Trade Agreement in seven years is our vision. Egypt has to be part of it, Sampson said.
And to this goal, Sampson said that the US wants Egypt to be a very strong leader on economic and political reform. “I am leaving Egypt very encouraged about its economic future. I am very impressed at the level of reform, he said.
Concerning the FTA between the two countries, Sampson declared that numerous realities currently play a role – mainly that US President George Bush’s Trade Promotional Authority (his mandate for promoting trade abroad) is up for renewal by the US Congress at the end of June.
“We remain hopeful that the new Congress will see the importance of markets abroad. 95% of markets are outside the US and export-related jobs pay higher than others, he said.
In the meantime, there are alternatives to a comprehensive FTA, such as the presence of the Qualified Industrial Zones (QIZ).
“There are many avenues in which to expand trade with Egypt, like the QIZ, he said.
Egypt exported $583 million in goods to the US through the QIZ in the first eleven months of 2006, a 119 percent increase. Some 22 percent of Egypt’s exports to the US were directly from the QIZ.
But there are opponents to a FTA with the US who say that US protectionist policies particularly in regards to its agricultural products are a stumbling block to initiating free trade negotiations.
Sampson told The Daily Star Egypt that Bush stated in the UN General Assembly three years ago that trade distorting agricultural policies should be abolished, but “we put it on the table, and no one has come to us. We won’t negotiate against ourselves.
He added “we are currently reauthorizing the Farm Bill in the US. Commodity prices are extremely strong, American farmers are doing well, so now is a good time to talk about this.
In regards to the planned nuclear program in Egypt, Sampson believes such a venture could see a bilateral agreement with the US.
A US State Department delegation is expected to visit Egypt Feb. 3 to discuss possible nuclear cooperation between the two countries.
