Egypt
After the WTO phased out quantitative quotas on textile in 2004 under the Agreement on Textile and Closing, ATC, Egyptian textile and garment producers feared that their industry would be threatened by global competition from China and India. The flood of similar articles from these two nations to the United States could edge out Egyptian exports, and possibly result in the loss of 150,000 job opportunities. This was estimated to cost some of the $3.2 billion in US foreign direct investment in Egypt. Further, Egypt was in search of sources for increased economic growth and trade to provide jobs for its rapidly growing labor force.
Positive results from the Jordanian led to the Government of Egypt negotiating a QIZ protocol in Cairo on 24 December 2004 that came into effect in February 2005. USTR has designated three QIZs in Egypt – the Greater Cairo Zone, the Alexandria Zone, and the Suez Canal Zone (69 CFR 78094). On 4 November 2005, the USTR designated a fourth zone in the Central Delta region and expanded the Greater Cairo and Suez Canal zones.
The protocol signed between the two nations is a non-reciprocal arrangement and is expected to be a step towards the establishment of a Free Trade Agreement (FTA) between the two countries. However negotiations toward a US–Egyptian free trade agreement have recently been suspended over human rights issues.
The results have been positive. Israeli exports to Egypt rose over 30% from USD 29 million in 2004 to USD 93.2 million and exceeded USD 125 million in 2006. As of 2008 ten QIZs have been set up in Egypt. Some estimate that approximately 20% of companies based in QIZs are wholly owned by Jordanians.
Read more about this topic: Qualifying Industrial Zone
Famous quotes containing the word egypt:
“There is no Champollion to decipher the Egypt of every man’s and every being’s face. Physiognomy, like every other human science, is but a passing fable.”
—Herman Melville (1819–1891)
“The LORD brought us out of Egypt with a mighty hand and an outstretched arm, with a terrifying display of power, and with signs and wonders; and he brought us into this place and gave us this land, a land flowing with milk and honey.”
—Bible: Hebrew, Deuteronomy 26:8.
“New York, you are an Egypt! But an Egypt turned inside out. For she erected pyramids of slavery to death, and you erect pyramids of democracy with the vertical organ-pipes of your skyscrapers all meeting at the point of infinity of liberty!”
—Salvador Dali (1904–1989)