13 - 19 September 2001
Issue No.551
|
Al-Ahram Weekly Online 13 - 19 September 2001 Issue No.551 |
||
| Published in Cairo by AL-AHRAM established in 1875 | Current issue | Previous issue | Site map | ||
Levantine charm
During a recent visit to Beirut, Gamal Essam El-Din discovered that economic relations between Egypt and Lebanon are increasing by leaps and bounds
Throughout its long civil war, Lebanon's economic relations with Egypt were hardly worth mentioning. Trade between the two countries was confined to a very limited list of agricultural products.
El-Khidry
However, a decade following the war's end, trade between Egypt and Lebanon is growing by leaps and bounds.
Adel El-Khidry, Egypt's ambassador to Lebanon, outlined the growth in economic and commercial relations between the two countries over the past five years in an exclusive interview with Al-Ahram Weekly.
In March 1996, said El-Khidry, the two countries turned a new page in their relations with the formation of the Higher Egyptian- Lebanese Joint Committee to institutionalise the promotion of bilateral trade relations. "Since this giant step, 35 commercial protocols and agreements have been signed and trade between Egypt and Lebanon has climbed from just under $20 million in 1995 to $110 million in 2000. By the end of this year trade is expected to increase by as much as 20 per cent compared to last year," El- Khidry boasted.
The above figures are evidence that Egypt's export-promotion programme in the Arab world is paying off, the ambassador asserted. During 2000 the balance of trade between Egypt and Lebanon was in Egypt's favour by $100 million -- representing an increase of 70 per cent over the past five years. But Lebanon has not fared too badly for itself either. Its exports amounted to $20 million in 2000, and it exports more to Egypt than any other country. The level of trade between the two countries makes it the biggest bilateral commercial relationship in the Arab world.
Egypt's exports have gone beyond agricultural products to include an array of manufactured goods, including equipment for power-generation stations. Lebanon's exports to Egypt are still primarily agricultural products.
The Higher Egyptian- Lebanese Joint Committee has discussed a wide range of matters pertaining to trade and each country's economy during its yearly meetings. And, as El- Khidry noted, the results are impressive. "Agreements for promoting and protecting investments in the two countries were signed, but the committee's major achievement was its decision in August 1997 to create a semi- free trade zone between the two countries."
Under this arrangement a long list of goods from each country are fully exempted from customs duties. "This list was lengthened in September 1998 and will be expanded next year to phase out completely duties on all Egyptian and Lebanese goods," El-Khidry revealed.
Egypt's economic and political, relations with Lebanon reached a turning point when President Hosni Mubarak visited Beirut in February 2000 -- the first visit to the Levantine country by an Egyptian president since 1959. During his visit, President Mubarak pledged that Egypt would rebuild two major electricity- generation stations in Lebanon; namely the Deir Nibouh and El- Jamhour stations. "The two stations, which were completely destroyed by Israeli air attacks, were reconstructed using an Egyptian grant contribution [covering materials, management and labour]. This gesture was highly appreciated by the Lebanese people and government, and private sector Egyptian companies soon saw many lucrative contracts come their way," El- Khidry said.
Elaborating, El-Khidry said that since Mubarak visited Lebanon in February 2000, six Egyptian private contractors have been awarded bids for several infrastructure projects in Lebanon. "The value of these infrastructure projects is estimated at $174 million. One of these projects, which is for building a new sewage system in Sidon, is currently being carried out by Egypt's Arab Contractors Company at a cost of $15 million," El-Khidry said. He added that additional Egyptian companies are submitting bids for establishing electricity stations designed to link the two countries' electrical grids.
Lebanon has reciprocated, having increased its investment in Egypt considerably during the past two years. "Investment, which is currently estimated at $500 million, is primarily concentrated in textiles and furniture manufacturing and in hotels. This boom is largely due to an 1996 agreement that protected each country's investments from tax duplication," El-Khidry said.
El-Khidry noted that Rafiq El-Hariri, Lebanon's top businessman and prime minister, does not have any private business in Egypt. "El-Hariri's perspective about Egypt is more cultural than commercial although he believes that Egypt's vast market should be attractive to all business and investors throughout the world," El-Khidry said.
Although El-Khidry's term as Egypt's ambassador to Lebanon was extended by President Mubarak for two years, he will vacate his post in few days. El-Khidry will be replaced by 44-year-old Hatem Seif El-Nasr, Egypt's current ambassador to Brazil and the younger brother of Justice Minister Farouk Seif El-Nasr.
© Copyright Al-Ahram Weekly. All rights reserved
 |
|
|||||||||||||||||
| ARCHIVES Letter from the Editor Editorial Board Subscription Advertise! |
WEEKLY ONLINE: www.ahram.org.eg/weekly Updated every Saturday at 11.00 GMT, 2pm local time weeklyweb@ahram.org.eg |
 Al-Ahram Organisation |
Recommend this page