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DOORKNOCk 2009
STRONGER TIES IN UNCERTAIN TIMES
AmCham Egypt DoorKnock Mission to Washington, DC
March 23-27, 2009
BY AMANDA RIGGS
The Capitol Building, a symbol not only of American government but also of the American people, is the heart of policy-making for Congress. The structure took 37 years to complete, incorporating details from a myriad of architects, policymakers and civil servants. The construction reflects the iterative process required to form legislation – a cornerstone of the American style of democracy. The White House, which lies at the western end of the National Mall from the Capitol Building, is strategically situated at almost the exact center of the District of Columbia and is the focal point of policy execution for the US administration. The two buildings at opposite ends of the mall signify the checks and balances between the two branches of government, the legislative and the executive.
Walking through the halls of the Senate office buildings conjures up powerful reminders of individual policymakers who have changed history and impacted the lives of Americans and those in the rest of the world. The second building received its name from the Senate majority leader from Illinois, Republican Everett McKinley Dirksen, famous for garnering votes to end a filibuster that effectively blocked the Civil Rights Act of 1964. Dirksen’s historical proclamation helped defeat the pro-segregation supporters in Congress led by Georgia Democrat Richard Russell, after whom the first Senate building was named. The history of the buildings inspires people around the globe, instilling in not only Americans but people of many countries the belief that they can affect US policy and have a profound and lasting effect on the quality of their lives.
The American Chamber of Commerce in Egypt (AmCham Egypt) traveled to Washington, DC on its annual DoorKnock mission, from March 23 to 27, to positively impact the US-Egypt partnership. To enhance the trade and investment environment, AmCham Egypt conveyed the business community’s policy priorities. The theme this year, “Stronger Ties in Uncertain Times,” embodies the objective of deepening business relations within the context of the global economic crisis in order to help shape US foreign trade policy towards Egypt.
DOORKNOCk OBJECTIVES
The overarching goal of the DoorKnock mission to the US is to strengthen US-Egypt relations and deepen commercial linkages between the two countries. More specifically, it demonstrates the success stories of globalized trade, either through examples of jobs created in Egypt by American companies or the quality of products and services exported to the US by Egyptian companies. The main goal is to exemplify that trade has benefited producers and consumers across borders where American and Egyptian families are now dependent upon that relationship for their jobs and livelihoods.
Preparation for the DoorKnock mission begins months in advance to create the publications that will be distributed in meetings. The schedule commences two months ahead of travel. AmCham’s board requests meetings and reaches out to AmCham Egypt’s contacts. AmCham’s advocacy messages are carefully detailed, trimmed and reworked through a variety of channels that involve AmCham board members and DoorKnock delegates and include input by a range of US policymakers familiar with Egypt as well Egyptian policymakers.
AmCham Egypt has sought face-to-face communication with policymakers in DC for 25 years, embarking on a total of 27 DoorKnocks. Over the years, interest from the Egyptian business community to travel to Washington has grown, illustrated by the number of people who volunteer to represent the Egyptian business community. The 2009 DoorKnock encompassed the largest delegation to date, with 50 AmCham members traveling to participate in the mission, a significant increase over 2008. The mission began with a working dinner the Sunday evening prior to the week in Washington to brief delegates on the goals of the mission, the code of conduct, and the policy environment in DC. AmCham delegates agree to a strict code of conduct, which stipulates that they attend all meetings, prepare statements in advance, speak only on behalf of the private sector, refrain from criticism of different views, and avoid promoting private businesses. In the following five days, AmCham delegates shuttle from office to office across the city with as many as eight meetings a day for each group.
The AmCham delegates were divided into seven groups prior to the mission. Groups were assembled to represent an array of demographics, including age, gender, religion and DoorKnock experience, as well as to reflect the Egyptian economy across sectors. AmCham delegates this year came from a range of sectors, including agriculture, banking and financial services, construction, consultancy, legal services, oil and gas, pharmaceuticals, telecommunications, tourism and textiles.
The schedule of the DoorKnock is pieced together to incorporate many actors that affect policy, including the Executive Branch, members of Congress and their staff, think tanks and business associations. This year, AmCham met with 10 members of the Executive Branch, including senior officials at the departments of Defense, Energy, Commerce, State, the Treasury, National Security Council and the Office of the US Trade Representative, as well as leaders at government agencies including the Export-Import Bank of the United States, Overseas Private Investment Corporation, US Agency for International Development and the US Trade & Development Agency.
AmCham also meets with the Legislative Branch – Congress, which is comprised of two chambers, the House of Representatives and the Senate – because the legislature is responsible for creating US law pertaining to Egypt, such as how much money Egypt receives in aid and the nature of its economic relationship. AmCham Egypt aims to meet with a wide range of congressional members across all committees, including freshmen members, since all major legislation is voted on by all elected officials. AmCham targets three sets of committees in both chambers, namely the Senate and the House Appropriations committees (responsible for appropriating US money to Egypt through foreign aid), the Senate and House Foreign Relations committees (responsible for the US foreign policy agenda towards Egypt), and the Senate Finance and House Ways & Means committees (responsible for US trade and economic programs with Egypt). This year, AmCham met with 63 representatives, 13 senators and numerous influential staff members in various leadership offices and at the committee level.
In addition, AmCham Egypt meets with influential and renowned think tanks and business associations as they seek to influence policy by representing the needs and interests of specific segments of society, including those working on foreign policy in the Middle East and international trade and business. This year, AmCham met with 22 senior officials at many of the leading think tanks and business associations.
Overall, the 2009 DoorKnock mission held a record-breaking number of meetings, nearly 130 over five business days. The surge in the number of delegates and meetings signifies not only AmCham members’ excitement that a new administration has taken office, but a fundamental recognition of the strategic importance of Egypt by US policymakers.
AMCHAM’S ADVOCACY PRIORITIES
Once in the door, delegates may have anywhere from a few minutes to over an hour to inform policymakers about the Egyptian business community’s priorities. It is estimated that a congressional office on average receives 400 business cards a day from constituents and visiting delegations. DoorKnock missions in general are a means for AmCham to set the stage for how policy dialogue will be viewed in coming years. Therefore, AmCham’s messages for this mission were kept broad and were aimed at shaping the relationship over the long term. With this in mind, AmCham delegation groups worked in concert to brief officials on five policy positions:
Egypt – A Regional Export Hub
This year’s DoorKnock groups promoted Egypt’s strategic geographic location as a regional export hub for American businesses. The delegates noted that Egypt is party to numerous trade agreements that facilitate business and trade with Europe, the Middle East and Africa. Specifically, AmCham delegates highlighted that: Egypt has a trade partnership through the Common Market for Eastern & Southern Africa (COMESA), which includes 19 countries (1994); Egypt is a signatory to the European-Mediterranean Partnership that grants it duty-free access to EU countries (1998); Egypt is afforded favorable treatment under the Greater Arab Free Trade Area (GAFTA), which connects it to 13 North African and Middle Eastern countries (2001); and Egypt has a free trade agreement with Turkey (2007).
Renewed Trade Dialogue
AmCham delegates advocated for a renewed dialogue between the US and Egypt to explore ways to expand the bilateral trade and investment relationship. The delegates stressed that opening new trade channels creates jobs in the US as well as Egypt, a particularly important interest of congressional members since many districts have recently encountered a large number of job losses. They also noted that trade with the US furthers Egypt’s economic reform process and allows the economy to grow.
Strategic Commercial Linkages
AmCham Egypt delegates accentuated the strategic nature of the commercial linkages that currently exist between the US and Egypt. The delegates said that the relationship has great potential to expand and that both American and Egyptian companies need to make more use of the current trade agreements. For instance, AmCham groups highlighted that with the addition of two new zones under the Qualifying Industrial Zones (QIZ) agreement, Upper Egypt is well positioned to attract new investment. AmCham delegates explained that to save American buyers money, Egypt can also export more products under the Generalized System of Preferences (GSP), a program that offers duty-free status on specific products entering the US market, thereby making Egyptian products more competitive. Since AmCham Egypt is a major representative of the two-way US-Egypt commercial relationship, the DoorKnock delegates stressed that the US and Egypt should not miss out on business opportunities afforded under the many initiatives.
A Force for Peace
DoorKnock delegates emphasized that the Egyptian business community has a vested interest in peace and stability in the region because they are conducive to growth in business and trade. The delegates highlighted that the US cannot achieve its aspirations in the Middle East without working in cooperation with its strategic partners, such as Egypt. They added that business and investment ties that are mutually beneficial for both countries will not prosper without stability in the region.
Focus on Newcomers
The DoorKnock mission sought to make a strong first impression by introducing 49 freshmen house representatives and five freshmen senators to key issues for Egypt, in addition to helping shape the country’s image before the new administration and newly appointed Cabinet members, which is key for AmCham in promoting the US-Egypt economic partnership.
US POLICY ENVIRONMENT
AmCham delegates seized the opportunity to highlight that without Camp David, the Middle East would be an extremely different region than it is today.
In order for AmCham’s DoorKnock mission to be effective, it takes into account the US policy environment prior to traveling. Effective policymakers in Washington are known for monitoring what’s being said in different policy spheres. It is vital for AmCham delegates to listen to the influential players and either complement their effect or correct any misconception with regard to Egypt. The mood in Washington this year was overshadowed by the economic crisis.
Populist Outrage
Characteristic of the policy process, issues will compete for dominance. The AmCham delegation expected that Congress, the administration, think tanks and business associations would ask how current events are affecting the Egyptian business community. For instance, AmCham delegates arrived in Washington when the American public was expressing populist outrage by picketing in front of congressional buildings to object to AIG handing out federal taxpayer money as bonuses to senior employees. In the next few days, AmCham encountered uproar over the government’s priorities in the stimulus package, how to spend the federal budget, and the size of the national debt. Policymakers’ attention is easily drawn in other directions. AmCham approached this apprehension by demonstrating that increased trade has created jobs, expanded businesses and helped grow both economies over the years.
Fear Over Trade Protectionism
Over the course of the week, some congressional members conveyed to AmCham delegates the pressure to enact protectionist measures in international trade policies to allay domestic fears that trade moves jobs outside the US. In a March 2009 report, the World Bank documented that collectively the G20 countries had imposed 47 new barriers to trade since the financial crisis began. The US issued a “Buy American” provision in February, inciting a new wave of fear around the world. AmCham delegates’ reaction was to demonstrate how encouraging people to “buy local” will in turn hurt global trade if prolonged. AmCham delegates rose to the challenge of countering domestic US fears by illustrating how many jobs are directly tied to trade between Egypt and the US, and how creating trade barriers would, on the contrary, fuel job losses. Delegates furthermore highlighted how Egypt was one of the few countries to reduce tariffs since the onset of the financial crisis, which it did on 250 goods in January 2009, thus continuing its economic reform process despite the current circumstances.
30 Years Since Camp David
During the mission, March 26 marked the 30th anniversary of the peace agreement Egypt signed with Israel following the Camp David Accords. The anniversary fell on a Thursday, which was one of the busiest days for the mission and the most heavily packed with meetings with Congress. AmCham delegates seized the opportunity to highlight that without Camp David, the Middle East would be an extremely different region than it is today. They stressed that Egypt stands as a pillar for stability by setting an example of peaceful relations with Israel. The celebration resonated with congressional members, which helped AmCham convey its message.
TWO-WAY DIALOGUE
In response to AmCham Egypt’s policy priorities, several common themes emerged from the Executive Branch, Congress and think tanks. Many in Congress noted that President Barack Obama and his cabinet will want to reshape US trade policy to refashion how the US interacts with the rest of the world. Several analysts in both branches expressed that trade policy, originating within the administration but supported by Congress, will reshape how the US does business by reexamining trade agreements, initiatives and programs to evaluate their benefits, progress and shortcomings. Policymakers that focus on trade said that they are looking for new ideas from around the world for what works within the US trade policy as well as for suggestions on how it can be improved. The US administration stressed that it wants to create a new way to trade that will most likely have an emphasis on environmental, labor and social standards.
The feedback to AmCham delegates from all directions in Washington is that the strategic importance of Egypt to the US has been strong over the years and will continue to shape the partnership. Both Congress and the administration noted the value in strengthening the diplomatic and economic relationship between the US and Egypt and resolving past differences. In all policy circles, Egypt is viewed as a leader in the Arab world. They understand the complexities Egypt deals with in a region fraught with conflict on all fronts, and they believe that it holds tremendous weight to help solve the issues the Middle East faces. Most policymakers asserted that the US-Egypt partnership will focus on common interests and respect differences.
DOORKNOCK LOOKING AHEAD
The delegates remarked that they were proud to be a part of the larger policy process and felt a sense of national pride to represent the Egyptian business community in the US.
AmCham Egypt delegates expanded their contacts in Washington, DC and furthered the dialogue with longtime friends. According to veterans of the mission, this was one of the most successful DoorKnocks, as evidenced by the number and caliber of meetings and the quality of the dialogue between delegates and policymakers. Many new AmCham delegates stated that they were in awe of the policy process in the US and that they had learned a great deal from participating in the mission. The delegates agreed that they were proud to be a part of the larger policy process and felt a sense of national pride to represent the Egyptian business community in the US. Looking ahead, the contacts made during this DoorKnock mission have laid the foundation for future two-way trade missions and economic linkages with numerous states, which is essential to deepening trade, business and investment between Egypt and the United States.
2009 TRADE POLICY AGENDA
President Barack Obama released the 2009 Trade Policy Agenda and 2008 Annual Report of the United States on the Trade Agreements Program in early March 2009.
“Making Trade Work for American Families”
The president’s plan targets economic recovery to improve the living standards of American families and reorient the US economy to address the challenges of energy, the environment and global competitiveness.
Priorities:
- Support a rules-based trading system within the World Trade Organization (WTO)
- Advance the social accountability and political transparency of trade policy
- Make trade an important policy tool for achieving progress on national energy and environmental goals
- Make sure that trade agreements are addressing the major unresolved issues that are responsible for trade frictions
- Build on existing Free Trade Agreements and Bilateral Investment Treaties in a responsible and transparent manner
- Uphold our commitment to be a strong partner to developing countries, especially the poorest developing countries
US-EGYPT SPECIAL LUNCHEON EVENTS
In parallel to the 2009 DoorKnock Mission, AmCham Egypt hosted two separate luncheon events to bolster US-Egypt relations and deepen economic ties.
Egypt: An Emerging Market in a Global Downturn
On March 20, AmCham Egypt and the Bank of New York Mellon held a luncheon at the Waldorf Astoria Hotel in New York with guest speakers Mahmoud Mohieldin, Egypt’s minister of investment; Robert P. Kelly, chairman and CEO, the Bank of New York Mellon; Richard B. Hoey, chief economist, the Bank of New York Mellon and the Dreyfus Corporation; and Alexander Ghiso, senior managing director, Ripplewood Holdings LLC.
The in-depth discussion, attended by more than 270 US financial experts, highlighted the current investment environment in Egypt and why the country continues to represent an attractive opportunity for global investors.
The event was sponsored by Commercial International Bank, the Egyptian Exchange and the Export Development Bank of Egypt.
Egypt: Opportunities Amid Challenges
On March 24, AmCham Egypt and the Business Council for International Understanding held a luncheon at the Ritz-Carlton Hotel in Washington, DC, with guest speaker Mohamed Mansour, Egypt’s minister of transport, who addressed the topic of “Egypt: opportunities amid challenges.”
The event was attended by 250 people, including American corporate executives, government representatives, policymakers and heads of associations. The premier host of the event was the Coca-Cola Company, with Alkan Consult and Electro-Motive Diesels as co-hosts.
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