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Al-Ahram Weekly On-line 26 April - 2 May 2001 Issue No.531 |
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Talking tighter trade ties
A US congressional delegation visiting Cairo seeks agreement on free trade, writes Nevine Khalil
At an early working breakfast on Monday with a US congressional delegation, Egyptian President Hosni Mubarak discussed bilateral economic relations, US aid to Egypt and tensions in the region. The US delegation of eight congressmen was headed by Jim Kolbe, chairman of the House Appropriations Committee. The team of congressmen arrived in Cairo on the last leg of a regional tour which took in the West Bank, Jordan and Israel.
After the meeting, Kolbe said that violence between the Palestinians and Israelis must stop before negotiations could resume. The congressman also told reporters after the meeting that the two sides must first decide they need peace, before the US could step in and facilitate an agreement. He added that confidence-building measures were needed to ease tensions, and that a solution was only possible when leaders in the region talk to each other directly.
Since George Bush became US president in January, Washington has adopted a "hands off" approach to Middle East peacemaking, unlike the previous administration which was much involved in trying to clinch peace deals between Israel and its neighbours. Bush, however, is now expected to appoint a new Middle East envoy to replace Dennis Ross.
The congress delegation did express some concern with the peace process, however. At a dinner hosted by Egypt's International Economic Forum (EIEF) on Sunday evening, Kolbe said that reactivating the peace process is a priority for Washington. "The current impasse is affecting the strategic interests of the US and economic conditions in the region," Kolbe told an audience of around 100, including Minister for International Cooperation Ahmed El-Darsh, Maher Abaza, chairman of parliament's foreign relations committee, USAID Director for Egypt Willard Pearson, US Ambassador to Cairo Daniel Kurtzer and EIEF Chairman Shafik Gabr. "The US has an obligation to the peace process and will do whatever it can to break the impasse," Kolbe said. He voiced "disappointment" at the conditions he witnessed on his previous stops, and called on all those concerned to "stand up and insist that peace must prevail for the sake of the people in the region."
Peace was not the only item on the agenda of the congress representatives. The visiting delegation met several businessmen in Egypt on the premise that the private sector helps build bridges between Egypt and the United States. Trade between the two countries amounted to $4.2 billion last year, of which US exports totalled $3.3 billion, according to the US Chamber of Commerce. Egypt is also the recipient of the second largest amount of US aid after Israel. Egypt receives two billion US dollars a year, an amount slated to be reduced over 10 years.
At the EIEF dinner, Kolbe warmed to the trade theme. He told his audience of business people, officials and media representatives that Washington aims to establish a free trade area in the region, and that he backs an Egyptian-US Free Trade Agreement (FTA) whether within the framework of regional cooperation or the World Trade Organisation (WTO).
"I support the concept, but many steps (still) need to be taken by Egypt," he said, suggesting passing a patent rights law, improving the economic climate, complying with labour and environment standards and improving the services sector.
The same ideas were discussed during Mubarak's visit to Washington earlier this month. The chairman of the House Appropriations Committee noted that one of Bush's policies requires the Trade Promotion Authority to invigorate trade relations with other countries. But the US has only signed FTAs with Jordan and Israel in the Middle East. Kolbe said the US would seek an agreement with Egypt because its economy is far larger.
Kolbe finished with praise. He applauded economic progress made in Egypt since the USAID programme was launched 25 years ago. "We are committed to supporting Egypt's economy and an FTA is part of that," he concluded.
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