(MENAFN- Daily News Egypt) Repreentative from the United State Export and import bank (EXIM Bank) and the US International Development Finance Corporation (DFC) are expected to viit Egypt oon to explore future opportunitie of collaboration, Miniter Counellor for Economic Affair at the US embay in Cairo, Jim Boughner aid.
DFC, which ha over $1.7bn in active project and invetment in Egypt, ha already aited in financing US invetment in Egypt, including, mot recently, $430m in inurance for a major ga pipeline project and $84m to finance a wind energy project that will trengthen Egypt' energy ecurity, Boughner added.
'I can alo note that the USAID will oon award a new $38m technical aitance programme to upport Egyptian companie and boot US-Egypt bilateral trade,' Boughner noted,
Daily New Egypt interviewed Boughner to learn more about the update of the US-Egypt economic cooperation at the end of 2019 and 2020 plan that include trade, invetment, financial cooperation, and joint agreement, trancript of the interview i below, lightly edited for clarity;
US EXIM Bank i keen on booting it activitie in Egypt in the future through the US embay. What project are you preparing for Egypt in 2020?
In November, Judith Pryor, a board member of EXIM Bank, viited Egypt a part of a delegation led by US Department of Commerce Aitant Secretary Ian Steff. While here, Pryor met with Egyptian public and private ector entitie to dicu potential way to increae bilateral trade, including opportunitie for the Bank to upport the export of US good and ervice to Egypt.
Alo, in November, Adam Boehler, CEO of our new development bank, DFC, participated in the Invetment for Africa Forum and met with Prime Miniter Madbouly.
Boehler reaffirmed the importance of the US' trong trategic partnerhip with Egypt and undercored DFC' commitment to expanding private ector invetment a a tabiliing force in the region. The DFC, which ha over $1.7bn in active project and invetment in Egypt, ha already aited in financing US invetment in Egypt, including mot recently $430m in inurance for a major ga pipeline project and $84m to finance a wind energy project that will trengthen Egypt' energy ecurity.
How doe the US embay help in implementing the Proper Africa Initiative? Can you pleae hed light on it future plan in 2020, epecially for Egypt?
Proper Africa Interim Coordinator Matt Ree viited Egypt in November. A he hared, during an American Chamber of Commerce program in Cairo, the US embay ha a 'Deal Team' in place that meet regularly to help the US private ector engage in buine in Egypt and elewhere in Africa.
Repreentative from USAID, the Department of Commerce, State, and Agriculture, and other agencie advocate on behalf of US commercial deal and invetment project.
I can alo note that USAID will oon award a new $38m technical aitance programme to upport Egyptian companie and boot US-Egypt bilateral trade. The embay alo upport Egypt' increaed ue of technology to improve the buine environment and facilitate invetment.
One example in thi area i the development of online platform that make it eay for invetor to apply for licence, which increae US company participation in the economy and foreign direct invetment.
How did the US embay upport Egyptian entrepreneur in 2019? What are your plan for 2020 in thi key area?
Supporting Egyptian entrepreneur i a top priority of the US government. USAID upport mall and medium-ized entrepreneur through a four-year programme valued at $22.6m. So far, the programme ha upported the development of 13 tartup incubator, ix one-top hoppe to regiter new buinee, and 13 buine development ervice (BDS) centre throughout Egypt.
Lat year thi programme helped formalie 6,900 enterprie and provided extenive technical aitance to 360 Egyptian mall and medium-ized buinee.
Thi booted revenue of the firm by $1.1m and reulted in 7,000 new or ignificantly improved job for Egyptian. Alo, USAID and the Egyptian Buine Women Aociation created the Women' Entrepreneurhip Network to provide mentorhip for women-owned buinee. Lat year, USAID alo upported the launch of the Tiye Angel invetor group, the firt women' angel invetor network in Egypt.
Our Public Affair ection alo upport entrepreneurhip in Egypt. Lat year we upported Egypt' delegation to the Global Entrepreneurhip Summit and alo held Global Entrepreneurhip Week event at the American Center and our American Corner in Maadi. We alo funded two important programme, StartUp Egypt and Meet Silicon Valley, both implemented by INJAZ Egypt, a local non-profit that empower young Egyptian with financial literacy and entrepreneurhip training.
In Alexandria, the embay launched IceAlex' 'Ladie Startup League,' to train 60 female entrepreneur in buine model development and marketing kill. And in Upper Egypt, at the econd annual 'StartupZ Fair' more than 800 entrepreneur attended 45 workhop on FinTech, angel inveting and pitching trategie.
We alo welcomed entrepreneur from Autin, Texa, who met with Egypt' creative economy community and erved a panellit during the annual RieUp Summit, the larget gathering of entrepreneur in the Middle Eat.
Are there expected viit from American companie or official during the firt half of 2020 to dicu invetment in Egypt? If o, pleae mention ome detail.
Nearly 1,400 American companie, large and mall, currently invet and operate in Egypt, and new companie viit Egypt regularly to explore opportunitie and eek out partner.
Thi reflect, in part, the ucce that Egypt ha had in the pat three year in implementing tructural reform related to it $12bn International Monetary Fund (IMF) programme.
A of the beginning of 2019, Egypt wa the econd-larget recipient of total US foreign direct invetment in Africa, and the fifth-larget recipient in the Middle Eat. We at the embay would love to ee Egypt take the number one poition by continuouly improving the buine environment.
What are the mot prominent area that American companie want to invet in Egypt in the coming period?
In line with Egypt' effort to becoming a regional energy hub, US companie have taken a keen interet in the energy ector, both oil and ga, a well a renewable.
Beide, American firm are active in nearly all economic ector in Egypt, including fat-moving conumer good, hotel and retaurant, manufacturing, information and communication technology, tranportation, contruction, financial ervice, health care, education, and agriculture.
What are ome incentive that American companie need to increae their invetment in Egypt?
US companie typically look at a range of parameter, uch a thoe meaured in the World Bank' Eae of Doing Buine Index. A table regulatory environment and a trong IPR regime, for example, are critical. Conolidating tep and reducing red tape for both importer and exporter i another important element.
Many invetor looking at Egypt ee the potential for an export hub and have encouraged the government to look at way to implify and expedite the cutom proce.
During a pat interview in 2018, you mentioned that 'there are ome trade barrier. The United State i till concerned about ome hortfall in the enforcement of intellectual property right, particularly with repect to the uage of pirated and counterfeit good, including oftware, muic, unlicened atellite TV broadcat, and video, which repreent barrier to U.S. export and invetment.'
Do you notice improvement to thi ituation now? Will you have meeting with Egyptian official to dicu thi iue?
We meet regularly with Egyptian official to dicu thee iue. We've een ome evidence of improvement in the IPR regime, epecially on the enforcement ide, and we continue to look for way to work together and make improvement in other area, particularly concerning pharmaceutical and medical device.
What i the volume of trade exchange between Egypt and the US according to the latet tatitic in 2019? What are your expectation for 2020?
Two-way trade between the US and Egypt had reached $7.6bn at the end of October 2019, which i higher than the total value from 2018 of $7.5bn. Thi i a 19% increae over the ame period in 2018.
Given the ucce of the Egyptian government thu far in implementing important tructural reform, and an improved invetment and 'Eae of Doing Buine' climate, there i greater interet on the part of US companie.
We are optimitic that the growth in trade a well a invetment will continue through 2020 and well into the future. Top US export to Egypt include heavy machinery, agricultural product, refined petroleum product, and medical equipment, while top Egyptian export to the United State conit of clothing and textile, crude oil, and fertilier.
Do you think that the trade tenion between US and China will continue in 2020?
The US eek a contructive, reult-oriented relationhip with China, which i the third-larget export market for US good, after Canada and Mexico. The United State i China' larget export market.
The US trade deficit in good with China grew to an unacceptable $419.2bn a of 2018. The US eek fair and reciprocal trade with China and work to protect American worker and buinee from unfair Chinee economic action, including market acce retriction, forced technology tranfer, and weak protection of intellectual property right.
Will Egypt, Irael, and America tart negotiation to include new indutrie within the cope of the QIZ agreement?
A common miperception i that the QIZ programme i limited to textile product and ready-made garment, when in fact almot any product manufactured within the QIZ that meet the programme' requirement, including content and value-added, are eligible for duty-free export to the United State.
Beide, Egyptian manufacturer outide the QIZ can take advantage of the US Generalized Sytem of Preference (GSP) programme, which provide for the duty-free export of over 3,500 product to the United State. Companie intereted in taking advantage of either program hould contact the Egyptian Minitry of Trade.
From your point of view, how can Egypt enhance it benefit from the QIZ agreement to increae it export to the US?
The QIZ and GSP programme are important part of our economic relationhip with Egypt, and enuring their ucce advance our common goal of growing Egypt' economy and promoting properity and tability.
There i a myriad of opportunitie under both programme for entering the U.S. market, and Egyptian companie that would like to take advantage of thee programme hould contact the Egyptian Minitry of Trade and Indutry.
What i the poition of the Egyptian-American dicuion on the Free Trade Agreement (FTA)?
We have no update on thi matter.
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