Thai goods win

THE BALANCE of trade between Egypt and Thailand has tilted sharply in favour of the latter, a recent Ministry of Foreign Trade report said. While Egyptian exports to Thailand dropped to $8.6 million in 2001 compared to $13 million in 2000, Thai exports to Egypt jumped to $143 million last year.

In order to protect its national industry, Thai authorities have taken a number of measures that have complicated the entry of exports into its markets.

The Egyptian commercial representation office in Bangkok is trying to lift the embargo imposed on Egyptian potatoes and citrus fruits to Thailand. A number of other products are now subject to higher tariffs, such as a 44 per cent tariff on wool and cotton textiles, a 30 per cent tariff on furniture and ceramics, a 100 per cent tariff on leather wear and a 60 per cent tariff on food and plastic products.

According to the report, Thailand has set certain health and environmental safety requirements that have to be met by the exported goods. In addition, because bilateral trade agreements have given Asian exports to Thailand the benefit of zero tariffs, Egyptian exports can hardly compete.

Thailand's exports to Egypt include canned tuna, ready-made garments, iron and steel, while Egypt's exports to Thailand include spinned cotton, glass and chemicals.

The report shows that Egyptian exporters have neither studied the demands of the Thai markets nor have they been active in participating in international trade fairs held there. However, many Egyptian products still stand a good chance, the report said, such as fresh fruits, carpets, pharmaceutical products and fertilisers.

Advancing mergers

AS PART of a strategy to encourage voluntary bank mergers, the Central Bank of Egypt (CBE) has approved the first voluntary merger among 17 Egyptian banks. The banks, all operating in the field of development and agricultural credit in various governorates, will be joined into six banks.

All owned by the Central Bank for Development and Agricultural Credit, the six banks are the Agricultural Development Bank for Middle Delta, the Agricultural Development Bank for East Delta, the Agricultural Development Bank for West Delta, the Agricultural Development Bank for Greater Cairo and Fayyoum, the Agricultural Development Bank for North of Upper Egypt and the Agricultural Development Bank for South of Upper Egypt.

CBE Deputy Governor Mahmoud Abdel-Aziz told Al Ahram-Weekly that the CBE approves voluntary mergers in response to the wishes of shareholders.

He said shareholders should carefully study the prospects of reducing administrative costs, increasing market share and raising competitiveness before making a merger decision.

WB brings DM to Egypt

EGYPT has been selected by the World Bank (WB) to be the first Middle Eastern country to participate in the Development Marketplace (DM) programme, a competition which hopes to address a host of urgent development challenges by finding innovative solutions.

"In reality, the DM is much more than a competition. It is a growing community of people and institutions who are exploring new ways of addressing some of the most pressing global challenges of our time," said Gamal El-Kibbi, WB deputy resident representative.

Organised with the co-operation of the NGO Service Centre, the proposals will be tailored to address specific themes, selected by the WB, that emphasise its development priorities. They will be assessed according to principles of fairness, diversity of views and transparency.

Applicants are expected to submit their proposals within the coming weeks. Proposals will be reviewed by a WB assessment panel. Winning participants will be granted a sum, ranging from LE50,000 to LE250,000 for the implementation of their proposals.

Launched by the WB in 1998, DM is an event that brings together corporations, non-governmental organisations, multilateral institutions, governmental agencies and civil society to help initiate new ideas, to provide technical assistance, and to access networks and financial support. The DM has invested over $12.5 million in a number of countries spread over more than 120 projects. These are aimed at addressing a range of development concerns, including education, health, the environment, social development, rural and urban issues and private sector development.