8 - 14 February 2001
Issue No.520
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Al-Ahram Weekly On-line 8 - 14 February 2001 Issue No.520 |
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Dialogue on exports
The promotion of Egyptian exports has become a "matter of life and death" since exports can make a substantial contribution to the economy's GNP. The government has exerted strenuous efforts to promote exports through the Higher Council for Exports (now replaced by the Commodity Councils) and the Bank for Export Promotion. However, not only have we not seen an increase in exports, but these may have actually declined.
We must address the key factors impeding our export performance. The first has been the poor quality of products. Our producers lack the state-of-the-art knowledge needed in the different stages of production, from processing raw materials to packaging. Our products are also more expensive than their foreign counterparts due to the high costs of raw materials, especially of imported production inputs and the high costs of financing investments.
Exporters sometimes do not adhere to the specifications stipulated in contracts, or they might fail to deliver commodities at their specified dates.
Transport presents another serious obstacle. Although Egypt is a member of the Common Market for Eastern and Southern Africa (COMESA), there is no direct maritime route to African countries. As for Europe, Egypt's major trade partner, the freight rates for Egyptian exports headed for European markets are no cheaper than those for goods coming from other countries.
These factors prevent our products from having a competitive edge in export markets. To make exports competitive, the private sector and the government should cooperate in establishing direct maritime lines to our key trading partners. Other important measures include offering exporters reasonable interest rates on loans, efficient maritime insurance schemes and guaranteeing the collection of exports' value through the Bank for Export Promotion and the Egyptian Company for Guarantee Against Export Risks.
I suggest that Al-Ahram Weekly initiate a frank and open discussion about the different aspects vital to the promotion of Egyptian exports. This dialogue should be among all those concerned: government officials, producers and exporters.
Sayed Moawad Ahmed is a researcher with the International Trade Policies Department (known as the Anti-dumping, Subsidy and Safeguard Department) affiliated with the Ministry of Economy and External Trade.
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