Latest news with #EgyptianExportersAssociation
Zawya
30-04-2025
- Business
- Zawya
Egypt targets $145bln in exports by 2030: El-Khatib
Egypt is committed to scaling up exports to $145 billion by 2030, which requires maintaining annual growth exceeding 20%, Minister of Investment and Foreign Trade Hassan El-Khatib announced during the Egyptian Exporters Day celebration, organized by the Egyptian Exporters Association (ExpoLink). During the third edition of the event, which gathered key business figures, investors, and export sector representatives, El-Khatib said his participation aligns with the government's support for Expolink's Investment for Export initiative, launched early last year. He described investment and exports as the two main drivers of economic growth and sustainable development. This year's theme, 'Made in Egypt – From Local to Global,' reflects the country's goal of expanding its global footprint and achieving a qualitative leap in export performance, El-Khatib said. He noted that exports are central to the state's economic agenda, playing a critical role in boosting foreign currency reserves and narrowing the trade deficit. Highlighting progress made over the past decade, the Minister pointed to major infrastructure investments, including cities, ports, logistics hubs, and upgraded transport networks, as a strong base for boosting export capacity. He also said that monetary policy reforms since March 2024, notably the adoption of a flexible exchange rate, have helped enhance the competitiveness of Egyptian goods. On the fiscal front, the government continues to ease burdens on investors and improve the overall business climate. El-Khatib revealed that the ministry aims to reduce customs clearance time to just two days by the end of 2025, supported by extended working hours and 29 trade facilitation measures. Regarding export burden refunds, he confirmed the current program guarantees payment within 90 days. A new three-year refund scheme will soon be announced, developed in coordination with export councils and relevant agencies to align with Egypt's export ambitions. In terms of expanding African market access, El-Khatib outlined a strategy to establish five to six logistics centers across key countries in the continent. These hubs are expected to streamline supply chains and strengthen Egypt's trade presence in Africa. He concluded by stressing Egypt's strategic advantages, including location, resources, and human capital, and called for deeper public-private partnerships to support a manufacturing-led export model. For his part, Chairman of ExpoLink Mohamed Kassem said the association secured several partnership deals locally and internationally to support Egyptian exporters. He highlighted upcoming expansions into the American and Swiss markets through new representative offices and increased promotional efforts. Kassem also noted the association's collaboration with the African Export-Import Bank to reinforce Egypt's presence in African markets, adding that Egypt's favorable location and trade agreements offer a strong platform for exporters to scale globally. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
15-04-2025
- Business
- Zawya
Egypt's Trade in the Age of US Tariffs: Challenges and Opportunities
Arab Finance: The global trade landscape is undergoing seismic shifts as protectionist policies gain momentum, signaling profound implications for globalization and international commerce. US President Donald Trump's recent tariffs on imports from several countries, including Egypt, exemplify this trend. These measures not only challenge Egypt's export-driven industries but also highlight broader disruptions in global trade cohesion. As experts assess the immediate and long-term implications of these policies, they emphasize the delicate balance the country must strike: navigating the turbulent waters of international trade while adapting to the changing competitive landscape. The Future of Egyptian Trade in a Turbulent Global Market On April 2nd, the US imposed global tariffs ranging from 10% to 50% on its imports from any country worldwide. Egypt faces the lowest tier, a 10% tariff, unless specific goods are exempted or fall under higher tariff categories. This comes alongside existing 25% tariffs on imported steel. Following Trump's new tariffs, Chief Secretary to the Treasury Darren Jones declared the 'end' of globalization. This declaration coincides with a turbulent global trade scene after the announcement. However, it is not yet clear whether this will have a negative impact on Egypt. The President of the Egyptian Exporters Association, Mohamed Qasim, tells Arab Finance: 'Trump's decisions are indeed causing some turmoil in the markets, which could lead to problems in the long term. However, that is not the basis, as we must wait until things calm down and become clearer. For example, after Trump issued these new decisions, he suspended them for 90 days, so we have 90 days to consider the implications, and after that, it is yet to be known.' Meanwhile, Dina Samir ElWakkad, an economics instructor and economist, tells Arab Finance: 'The newly imposed tariffs by President Trump might disrupt global supply chains, leading to increased production costs and inflationary pressures worldwide. For Egypt, which relies heavily on imports for various raw materials and goods, this could exacerbate trade deficits and strain foreign currency reserves, potentially impacting the stability of the Egyptian pound.' When it comes to the 25% tariffs on steel, demand for Egyptian steel exports will not be significantly impacted. Qasim points out that "these tariffs are a burden for all steel-exporting countries; it will not matter from one country to another. If we were competitors without customs—meaning with normal customs—and high customs were imposed on everyone, our competitive position would remain the same and would not change.' However, when it comes to other exports from Egypt to the US, the situation is different. Qasim explains that 'Trump has imposed higher tariffs on others than he has on Egypt. Consequently, countries that compete with us in certain industries, including the apparel industry, which is Egypt's largest export item to the US, totaling $1.2 billion, find themselves in a more challenging position. Therefore, Egypt's competitive position is improving.' ElWakkad argues that 'higher tariffs on competitors could make Egyptian products more attractive in the U.S. market; however, capitalizing on this opportunity requires strategic action. Egypt can enhance its competitive position by investing in improving product quality, ensuring compliance with international standards, and streamlining supply chains to reduce costs.' 'Additionally, leveraging existing trade agreements, such as the Qualified Industrial Zones (QIZ) agreement, can provide tariff advantages. By strengthening partnerships with U.S. importers and focusing on sectors where Egypt has a comparative advantage, such as textiles and agricultural products, the country can increase its market share in the United States,' according to ElWakkad. A Hybrid Trade Strategy for Enhanced Economic Resilience Considering the recent changes and the challenges or opportunities they may offer, there are several measures that need to be implemented. According to Qasim, removing export barriers, improving customs, taxation, and port logistics, and creating a positive production and investment climate are key state actions that can catalyze greater competitiveness. Meanwhile, ElWakkad explains that 'Egypt can mitigate the impact of Western tariffs by strengthening its engagement with regional trade blocs like the African Continental Free Trade Area (AfCFTA) and the Common Market for Eastern and Southern Africa (COMESA). These platforms offer access to new markets and can help diversify export destinations, reducing reliance on Western economies.' ElWakkad continues, pointing out that 'the recent shift towards protectionist policies by major economies indicates a move away from multilateral globalization towards regionalism. In this context, adopting a hybrid approach that combines selective protectionism to safeguard key domestic industries with strategies aimed at export diversification can enhance economic resilience. This balanced strategy allows Egypt to protect its economic interests while exploring new growth opportunities.' The recent US tariff impositions serve as a stark reminder of the evolving and often unpredictable nature of international trade. For Egypt, the immediate aftermath presents a period of assessment and strategic planning. While the direct impact of the 10% tariff may be manageable, the broader implications for global supply chains and the potential for further protectionist measures demand vigilance.
