U.S.-Arab Chamber hosts Egypt's new ambassador to the United States

H.E. Sameh Shoukry, in his first public appearance since presenting his credentials to U.S. President George W. Bush, noted that Egypt

"values our special ties with the United States, and we will work to strengthen them further -- economically as well as politically. The mutual interests and objectives of both countries will continue to motivate us to engage each other well into the future."

David Hamod, President & CEO of the U.S.-Arab Chamber, noted the Chamber's long tradition of introducing new ambassadors to the U.S. business community.

"President-Elect Barack Obama has highlighted the importance of what he calls 'economic diplomats,' and we are especially proud today to welcome someone who is precisely that, Ambassador Sameh Shoukry," said Hamod.

"Egypt is one of the top three export destinations in the Arab world for U.S. goods, and the potential for growing the commercial, educational, and cultural relationship is enormous."

The luncheon was sponsored by five prominent Chamber members: Boeing, ExxonMobil, Federal Express, Lockheed Martin, and Northrop Grumman.

Economic growth is a high priority for Egypt, noted Ambassador Shoukry.

"Egypt needs to create 750,000 new jobs a year, so it has become imperative to engage and interface with the world marketplace," he said.

"The United States is and will remain a major player in these areas. The U.S. is already the largest direct investor in petroleum in Egypt and the second largest non-petroleum, non-Arab direct investor."

According to the Government of Egypt, domestic investments in Egypt increased from $37bn in 2003 to $135bn in 2007.

Foreign Direct Investments performed even better, surging from $400m to $13bn during the same period.

A proposed bilateral Free Trade Agreement (FTA) - seen by Egypt as an important vehicle to create value-added jobs - was put on hold two years ago by the U.S. Government for political reasons, much to the chagrin of the U.S. business community.

Ambassador Shoukry said, "All I can tell you is that it wasn't for lack of interest or commitment on our part. We attach importance to such an agreement -- but we also strongly believe that contractual arrangements should be approached purely on their economic and trade merits."

Even without an FTA, said the ambassador, bilateral trade has expanded considerably, in part because of Egypt's Qualified Industrial Zones (QIZ).

Egyptian exports to the USA grew 387 percent in the past seven years, from $888m in 2000 to $2.3bn in 2007.

QIZ exports alone grew from $266.3m in 2005 to $688.9m in 2007, representing a 260% increase in trade volume.

With regard to economic reform, said Ambassador Shoukry, it "started in 1974 with the 'open door policy,' which attempted to convert an economy characterized by a huge public sector to an economy that is more private sector-friendly with export-oriented policies at its core. What is new since 2004, however, is that the scope and depth of reform are different."

Specifically, he said,

"the most important point about the economic reform process is that it's about changing attitudes as well as institutions and legal frameworks. This factor was embedded in our tax reform, the competition law, the new investment regulations and procedures, and many other areas -- especially the successful privatization program that attempts to change the mindset of those operating the public sector."

In a Question & Answer session that followed the ambassador's formal remarks, a question was asked about how the U.S. business community might help to get Free Trade Agreement talks back on track.

Ambassador Shoukry responded, tongue-in-cheek, "Call your Congressman! If anyone is in a position to present a strong and effective economic argument, it is the business community. Egypt has many friends on Capitol Hill who recognize that a strong and prosperous Egypt - with this close relationship with the United States - can only be reinforced by this very practical dimension of trade and commerce."