02/02/1998
Al-Ahram Al-Ektsady Magazine 1998/FEBRUARY /02
Internal and external challenges are affecting the aspirations of industry in Egypt. International politics and economic variables challenge Egypt externally while taxes and customs, lack of international quality standards, slow growth rate of industrial exports privatization and smuggling affect it internally. There is a need to give special consideration to stimulating investments and production to gain a competitive edge.(Available in Arabic – German in PDF )
The aspirations of industry are confronted by internal and external challenges. These challenges include the GATT, the European partnership agreement, tax and custom burdens and the privatization program. External challenges are caused by international politics and economic variables. Powerful economic blocs could put Egypt at the forefront of countries affected. The GATT is considered most important in activating free trade and removing traditional barriers and obstacles to the movement of commodities. The possibility of invading the market, dumping, or filling markets with non-Egyptian commodities is a negative impact. The partnership between Egypt and the European Union is considered strategic. This depends on how capable Egyptian industry is at developing its competitive edge. Lack of international quality standards, slow growth rate of industrial exports, taxes and customs, privatization, smuggling and failure to develop human resources are some of the most critical challenges facing domestic Egyptian industry. The People’s Assembly’s Committee on Industry and Energy stressed the need to give special care to stimulate investments and production in some sectors in order for them to gain a competitive edge after following the full application of international trade liberalization deals.