06/12/1993
Rozelyosf Magazine 1993/DECEMBER /06
Opening the gates for imports is the top challenge facing Egyptian industry today. Many industries are still growing and require protection. All sectors of industry need to concentrate on the quality and efficiency of all economic aspects. Protecting the Egyptian producer should not be done with high custom taxes and fees only but with the full coordination of economic policies.(Available in Arabic – German in PDF )
Egyptian Industry is facing huge challenges, the top of which is opening the gates for imports. Many of Egypt’s industries are still growing and require protection until they reach maturity. We must provide this protection by using narrow limits to keep Egypt’s industry from growing weak. Egyptians need to concentrate on quality and efficiency in all economic aspects, including human resources. There are two segments of local industry. The first segment is led by efficient industrialists who deal with issues on the basis of knowledge and experience using modern technology. The second segment involves those who have not reached or adopted scientific attitude. The spinning and textile sector is burdened with many problems. It has lowered productivity and has increased prices. It is now incapable of competing on a local or global level. The milk product sector is facing heavy competition with imported products due to subsidies awarded to foreign producers. The sugar industry is facing 20% taxation fees imposed on imported sugar. The importing of fruit has also strongly affected local production. Liberalization of the trade policy must correlate with a flexible exchange rate policy as exaggerated values only support imports at the expense of local production. Protecting the Egyptian producer should not be done with high custom taxes and fees only. Full coordination between all economic policies is fundamental.