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Egypt-U.S. Trade Relations
Foreign
trade is becoming an increasingly significant element in Egypt’s ongoing
program of economic reform and structural adjustment. Imports are crucial
growth supporters, while export expansion and diversification are
important for enhancing macroeconomic performance and, consequently,
achieving a more accelerated growth rate.
The United States, which has been
Egypt’s leading foreign trade and investment partner since the time of
Egypt’s Open Door Policy in the late 1970s, has become more and more
involved in the local economy. The signing of the U.S.-Egyptian Partnership
for Economic Growth & Development in 1994 was an important milestone in
the two countries’ relationship. Most recently, in July 1999, Egypt and
the United States signed the Trade & Investment Framework Agreement (TIFA) as a
preliminary step towards an Egypt-U.S. Free Trade Area agreement.
The strategy of enhancing
trade and investment relations makes good sense in Egypt’s current phase
of economic development. The concurrent aim of private sector-led,
export–oriented growth has already opened up lucrative opportunities for
both Egyptian and U.S. investors, and such opportunities are sure to
continue to arise for several years to come.
This report attempts to support trade enhancement between
the two countries by analyzing the structure of Egypt-U.S. trade
flows and providing a general guide for Egyptian companies intending
to export products to the United States. Particular attention is
given to exports of furniture and iron and steel, major non-traditional
Egyptian exports to the U.S. market. The report concludes with a
set of recommendations, directed primarily at the Egyptian government,
regarding ways to further advance the program of economic liberalization
and create opportunities for local and foreign entrepreneurs.
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