CAIRO: The time is not right for the proposed Free Trade Agreement (FTA) between Egypt and the US because economic considerations are not yet ripe, Minister of Trade and Industry Rachid Mohammed Rachid said Monday at a press conference kick-starting a US-Egypt Business Council meeting.
“On the economic and trade fronts there is progress, but there are other internal considerations such as the US Congress, Rachid said, referring to the renewal of the investment promotional authority mandated to US President George Bush by Congress, which is up for renewal in June.
Rachid also stated that the volume of trade between the US and Egypt increased by 30 percent, reaching LE 34.3 billion in 2006. Currently, the US is Egypt’s biggest trade partner.
“Egypt is a historic partner in peace and trade and we value its leadership in the region. Egypt has continued its commitment to economic trade liberalization, said US Deputy Secretary of Commerce David A. Sampson.
Sampson added that the US government believes in the importance of the US-Egypt Business Council.
The US-Egypt Council was established to inform the respective governments of private sector views regarding business development in both countries, and also attempts to lay the groundwork for a free trade framework between the two countries. The council includes 15 business leaders from Egypt and 15 from the US.
Concerning the FTA, Sampson said “Discussions on free trade have reached a break, but we will explore every avenue to push this forward.
Rachid stated “The Free Trade Agreement between Egypt and the US is a means to an end, not an end in itself. There was a desire to follow up on this but talks stopped last year for political reasons. The FTA is not a gift to Egypt, but something from which both sides will benefit. We will seek this, but the time is not right.
Sampson added “We had a thorough discussion about the Free Trade Agreement with Egypt. We consider Egypt to be a vital component of free trade in the region.
Concerning US assistance to initiate Egypt’s peaceful nuclear program, Sampson said “There will be a delegation from the State Department visiting Egypt on Saturday to discuss nuclear energy and certainly we would be pleased to discuss a role for the private sector.
Additionally, Sampson emphasized that the arena of corporate responsibility is something in which significant cooperation can be achieved, adding that this is an area in which Egypt can still make headway.
The US-Egypt Business Council is under the auspices of both the US Department of Commerce and the Egyptian Ministry of Foreign Trade and Industry.
