CAIRO: Trade exchange between the United States and Egypt could reach $16 billion by 2013, bolstered by closer economic cooperation between the two countries, Egyptian Minister of Trade and Industry Rachid Mohamed Rachid said Monday.
“The US ranks first on the list of world economies. Egypt is seeking to tap the US markets and attract more US investments through cooperation with the United States in several domains, Rachid said of the importance of strengthening trade ties with the US.
“Currently, Egypt’s trade exchange with the US accounts for 20 percent of total Egyptian trade and Egypt will work to increase trade exchange over the coming four years, he continued.
Rachid’s statement followed a series of successful economic discussions undertaken by President Hosni Mubarak during a recent visit to the United States.
“President Mubarak’s visit marked a reengagement with the United States, and prompted a refocusing on economic and trade issues from both sides, American Chamber of Commerce in Egypt executive director Hisham Fahmy told Daily News Egypt.
“This visit is a big push forward and a message for US companies that it’s good to trade with and invest in Egypt, he continued.
Mubarak’s visit cemented plans for stronger economic ties between the US and Egypt into the future, according to Egypt’s state information service website.
“The visit made it clear that the United States Administration was willing to help the Egyptian industry to have a large presence inside the United States, particularly through the Qualified Industrial Zones (QIZ), read a statement published on the site.
An increase in the number QIZ-affiliated manufacturing zones and factories is already on the agenda, prompting predictions of an increase in Egyptian exports to the US market in the near future.
Last year, despite pressure put on the export market by the recession, the value of Egyptian exports to the United States totaled over $6 billion.
QIZ-affiliated exports totaled $775 million during the same period.
Though low Egyptian export numbers for this year to June, totaling $2.5 billion, belie promises of doubled trade volumes by 2013, increased economic cooperation could bolster a recovery by end of year.
Fahmy believes that the goal of doubling trade volumes by 2013 will be feasible, if not easy.
“A doubling of trade volume could happen; we’ve doubled trade before. The challenge is the recession. It’s not going to be easy, but it can happen. But Egypt has to do its part in making it easier for companies to trade and invest in Egypt, he said.
“Egypt has done a lot to improve the business climate so far, especially in the last five years, but there is still a lot to be done. The more Egypt is investment friendly the more trade will come in from all over the world, especially the United States, Fahmy continued.
According to Fahmy, Mubarak’s engagement with Obama over political issues has important implications for Egypt’s business climate into the future as well.
“The political aspect of President Mubarak’s talks with Obama were also important economically because when there’s a peace process going there is stability, and stability is positive for business, he said.
“We as the American Chamber have been engaging with the US for 25 years, and we know that when the political scene is positive, the trade and investment and economic relationship follow, Fahmy concluded.
