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Al-Ahram Weekly 4 - 10 November 1999 Issue No. 454 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 4 - 10 November 1999 Issue No. 454
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Features Profile Travel Living Sports People Time Out Chronicles Cartoons Letters Doing business with Tehran
By Amira Howeidy
Munching shiny small pistachios and dried fruits with great relish, three Egyptian women asked the Iranian businessman who brought the goodies to Cairo if they could buy a few kilos. "No," he replied in English, "I'm just exhibiting these." This was last Monday, the first day of the First Solo Trade Exhibition of Iran, being held at Nasr City Fairground. In many ways, this is the first direct contact between Iranians and the Egyptian public in 20 years.
Preceded by exchanges of visits between Egyptian and Iranian business delegations during the past two years, this week's trade exhibition, attended by more than 300 Iranian businessmen representing more than 100 companies, marks a significant boost in business relations between the two countries. The exhibitors expressed their eagerness to enter and win popularity in the Egyptian market. "We are here with our goods and a strong desire to find our way to the Egyptian customer," said a representative of Shah Ruzi, a Persian carpet company. The products exhibited range from those famous for their Iranian affiliation, such as carpets and pistachios, to medical equipment, buses, tractors, chemicals, chinaware, bicycles and glassware.
In addition to the attendance of Mohamed Said Saleh, board chairman of the Egyptian General Organisation of Exhibitions and International Markets, the exhibition was inaugurated with the appearance of an unexpected party: the Mufti of the Republic, Dr Mohamed Farid Wassel. From the Iranian side, Khesro Tag, deputy minister of trade, was present, as was Akbar Ghassemi, head of the Interests Section of Iran in Egypt.
The first Iranian high-level business delegation visited Egypt in June 1997, headed by Ali Naghi Khamoushi, president of the Iran Chamber of Commerce, Industries and Mines. The delegation held extensive talks with their Egyptian counterparts and signed an economic cooperation protocol -- the first measure of its kind. Aimed at promoting Egyptian-Iranian relations, stipulating bilateral visits by economic delegations and organising trade fairs in both countries, the results of the protocol came into reality more than a year later with holding this week's exhibition.
Last September, 31 Egyptian companies attended a 10-day Tehran exhibition. However, Egypt is expected to organise its first exhibition in Tehran next March, Abdel-Mon'em Seoudi, head of the Egyptian Federation of Industries, told Al-Ahram Weekly.
Addressing an audience consisting of officials, businessmen and the press, Tag noted that the exhibition is the first event of its kind since the 1979 Islamic Revolution. Egyptian-Iranian relations soured quickly that same year when Egypt gave asylum to the Shah and then signed a peace agreement with Israel. The tensions escalated further in the '90s when Egypt accused Iran of sponsoring terrorist activities.
Since the 1997 election of Iran's President Mohamed Khatami, relations have improved significantly, but not up to the level of expectations. Both countries have exchanged signs of goodwill and pursued efforts to at least keep economic relations going.
Last June the issue of an Iranian street named after Khaled El-Islambouli, leader of the squad that assassinated President Anwar El-Sadat in 1981, surfaced when the speaker of the Iranian parliament expressed willingness to change the controversial name. But Iranian hard-liners objected to this, ultimately creating another diplomatic crisis. It cooled down, but was never resolved.
The continuation of the Egyptian-Iranian break throughout the years seems to stand in the way of any political progress, ultimately affecting economic ties as well. Tag explicitly addressed this issue in his remarks. "The political problems [between the two countries] left a gap that still exists till this day. But [by holding this exhibition] we are taking a step towards improving relations with Egypt." Dismissing the need to wait until political sensitivities are resolved, Tag suggested that there should be closer "cultural and economic" ties.
According to Tag, Egyptian authorities would not give the Iranians entry visas until Thursday. "This did not give many Iranian companies who wanted to attend enough time to come here. So we are under-represented [considering] the number of businessmen who wanted to come."
The annual volume of trade between Egypt and Iran hovers at around $75 million, which is a modest figure given the size of both populations and the mutual strategic interests involved in Egyptian-Iranian trade relations. Egypt is Iran's gateway to Africa and Iran is Egypt's gateway to central Asia.
In 1997, Egypt sold Iran $40 million worth of sugar, medicine and food products and bought $35 million worth of carpets, pistachios and spare parts for buses. Meanwhile, Iran has invested $68 million in Egypt towards the production of rugs and ready-to-wear goods, as well as banking activities.
Although investment in petrochemicals remains a priority on the agendas of the two oil-producing countries, this week's exhibition is expected to boost trade significantly in many other sectors. According to Tag, the two countries signed several trade agreements and negotiations are under way to manufacture the first Egyptian-Iranian car.
The exhibition is open to the public till next Sunday.
