Drive for a Free Trade Agreement Gains Momentum

As the world watched events unfolding in Afghanistan in early November, government economists in countries around the world were locked in planning sessions on how to manage the repercussions of the war on terrorism on their domestic economies. Egypt’s forward-thinking former Minister of Economy and Foreign Trade, Dr.Youssef Boutros Ghali, was doing more than that: he was on a plane to the United States to discuss the possibility of a Free Trade Agreement [FTA], among other economic measures.

Following Boutros Ghali’s meeting with U.S. Trade Representative Robert Zoellick, State Department spokesman Richard Boucher said, "Department of State officials underlined the importance of the growing economic relationship between the U.S. and Egypt, and agreed that it is in the interest of both countries that U.S.-Egypt economic ties remain strong. In this regard, U.S. trade representative Zoellick expressed interest in the possibility of initiating discussions on the elements of a potential U.S.-Egypt Free Trade Agreement."

An FTA would allow the tariff and quota-free flow of goods between the U.S. and Egypt, and it is hoped, would boost Egyptian exports to the U.S. The trade imbalance between the two countries overwhelmingly favors the United States. In 2000, Egypt imported $3.313 billion in American goods, and exported $887 million to the U.S. The U.S. is Egypt’s second largest trading partner, while Egypt ranked 44th among U.S. trading partners in 1999. (continued)