U.S. Chamber Applauds Report Calling for a Path Toward U.S.-Egypt FTA Negotiations

WASHINGTON, D.C.—The U.S. Chamber of Commerce today applauded the release of a report prepared by the Center for Strategic and International Studies (CSIS) with support from the Chamber-affiliated U.S.-Egypt Business Council calling for U.S. policy makers to work toward the goal of launching free trade agreement (FTA) negotiations with Egypt.

“As the United States continues to pursue its goal of doubling exports by 2014, it must look towards countries that will be integrating into the global economy,” said Lionel Johnson, vice president of Middle East and North Africa Affairs.  “This report is simple in its message: closer trade relations between the United States and Egypt can bring growth and jobs for both countries.”

Today’s report, entitled The Role of FTA Negotiations in the Future of U.S.-Egypt Relations, emphasized how a potential FTA with Egypt could create jobs in the United States and Egypt.  It noted that the United States has a history of providing economic aid to Egypt and has earmarked roughly $250 million each year since 1999 across a variety of trade, economic, health, and education activities.  This total is among the largest of all U.S. assistance programs.  As highlighted in the report, a FTA would be a budget neutral, economic approach to support a key strategic ally.

According to the Office of the United States Trade Representative, Egypt was the 33rd largest market for U.S. goods exports in 2010, and the growth trend in the commercial relationship is continuing.  U.S. goods exports to Egypt in 2010 were $6.8 billion, up 30.1% ($1.6 billion) from 2009, and up 140% from 1994.

“The American businesses that make up the U.S.-Egypt Business Council are put at a disadvantage because their competitors in the European Union enjoy the benefits of the EU-Egypt FTA,” said Khush Choksy, executive director of the U.S.-Egypt Business Council.  “U.S. engagement in FTA negotiations with Egypt not only makes sense for U.S. business interests, it will initiate a new economic dialogue between both countries.”