Cairo- Careful, Egypt is awaiting the effects of the customs duties of US President Donald Trump on the Suez Canal and its exports, where the new fees are expected to slow down the supply and international trade chains.
The increase in customs duties on April 2 comes on imports coming from Cairo by 10%, among 180 countries in the world, chasing fees of 46%, amid talk about negative effects and hopes of important investment opportunities for Egypt, according to economists who spoke to “Al -Jazeera Net”.
At the forefront of the expected negative effects, the outcome of the Suez Canal fees, according to experts, is damaged, in light of the expected slowdown in international supply and trade chains after Trump’s decisions, which adds burdens on Cairo with the continued geopolitical developments in the Red Sea and its losses estimated at hundreds of millions of dollars per month, according to official data.
The Egyptian Council of Ministers has not announced a position yet, but the Information and Decision Movement Center reduced the impact of the American decision on the Arab countries in general, while the Ministry of Investment and Foreign Trade announced its studies of the repercussions of the decision informally, and some government media went to talk about the ability of the Egyptian economy to absorb shocks.
The commercial situation between Cairo and Washington
The Cairo and Investment Trade relationship with Washington has deepened since Egypt signed the peace treaty with Israel in March 1979, while the American Chamber of Commerce in Cairo was established in 1984, and developed into a commercial network linking more than 1900 Egyptian and American companies.
According to the commercial bulletin of the Central Agency for Public Mobilization and Statistics (Government Observatory), the value of trade between Egypt and the United States recorded a rise of 35.8% during January 2024, to reach 202 million and 357 thousand dollars, compared to 148 million and 971 thousand dollars, during the same month of 2023, and the Egyptian clothes, carpets, and Egyptian export covers were issued to America.
According to the data of the export council for ready -made clothes, the United States topped the receiving countries of Egyptian ready -made clothes, with a value of $ 105 million during last January, for $ 104 million in the same month last year.
According to the American Chamber of Commerce in Cairo, Egypt is entering the American markets through two initiatives: the American generalized system of preferences (GSP), a preferential commercial treatment program in which certain products are exempted from customs duties under specific conditions, and the initiative of qualified industrial zones (QIZ), a trade agreement between Egypt and Israel exempting its commodities manufactured in a common manner from American customs duties.
Raise the Suez Canal fees and benefit from the affected people
Professor of Finance Economics at the Faculty of Commerce of Cairo University, Hassan Al -Sadi, sees in his interview with “Al -Jazeera Net” the importance of forming the Supreme Export Council in Egypt, for an urgent work cell and calling for an emergency meeting for technically specialists, to draw a clear map to maximize potential gains and reduce any losses.
According to Resolution No. 142 in 2023, the Supreme Export Council is chaired by the President of the Republic or his representative, the membership of the Prime Minister, the Governor of the Central Bank, and more than 20 ministries and specialized body and representatives of exporters and experienced people, with the aim of encouraging and developing Egyptian exports.
Al -Sadi suggests raising traffic fees in the Suez Canal to replace what he believes in the occurrence of harmful slowdown in the global supply and trade chains that benefit from the Suez Canal, in light of his expectations for the decline in global trade as a whole, stressing that Egypt has the right to collect an appropriate share of its navigation artery fees in light of those American heights that harm the world.
The economist also calls on the Supreme Export Council to prepare clear and studied lists from countries that have been subjected to large customs duties from 20% or more, and its commercial share with the United States, to take advantage of its expected damage to Egypt’s entry into the American market with a competitive product, in light of the availability of the American market demands of food products, spinning and fabric, in Egypt.
The example is the export of Cairo to grapes to France and the countries of Europe, who in turn export it to America, calling for a study of its export directly from Egypt at competitive prices, according to American standards.
Al -Sadi notes that Egypt has a competitive advantage in the American market with the presence of the Koyes Agreement, where 17% customs duties were imposed on Israel, allowing Egypt to provide a product that matches American specifications at better prices than Israel and others.
Egypt and the experience of China in Mexico
Speaking to “Al -Jazeera Net”, the economic researcher and financial market expert, Ahmed Qutb, suggests the influence of companies working in the field of Egyptian exports to America negatively, with the same percentage of the new tariff (10%), especially textiles, clothes, and carpets, without the affected by the companies of the Quiz Protected Convention on various arrangements, confirming his expectation that the navigation artery of Egypt “The Suez Canal” from Trump’s decision to the same reasons is affected.
The economic analyst, Egypt’s success in avoiding negatives and exploiting Trump’s decision in its favor, comments on its success in marketing itself, attracting the investments of the countries affected by Trump’s definitions, by persuading them to tend to establish their factories in Egypt and use them as an alternative solution with less customs tariffs and export through it as a gate and arcad of America.
Ahmed Qutb notes that China had previously resorted to Mexico, and established several factories to produce its cars there and export it to America to exploit low taxes.
A massive tsunami must be exploited
The banking and economic researcher Raed Salama, a coordinator of the economic axis in the Egyptian national dialogue, goes to the importance of Cairo’s view of the expected risks of the decision as opportunities and not only negative challenges.
He explained to “Al -Jazeera Net” that the new Trump fees will cause a “huge tsunami”, not just an inflationary wave, which strikes the foundations of global trade exchange, and exacerbates the gap between supply and global demand, which ignites prices, especially with the acute shortage of foodstuffs, high rates of poverty, disease and destruction due to the war of Ukraine, genocide and massacres against humanity in Gaza.
The prominent banking and economic researcher believes that there are huge export capabilities for Egypt, especially in light of its low customs definition, in exchange for those affected countries in greater proportions, by offering their products in the American market at competitive prices with the availability of high quality standards.
And it stresses the importance of determining Egypt and quickly a package of products that other countries are subject to a high customs tariff to produce it, and to study the capabilities of its production in Egypt, whether material or human capabilities or natural resources, at competitive prices for exporting the American market and expanding Egypt’s share of it, away from its share of the “Al -Kuis” agreement.
Discussions in the money community and chambers of commerce
Discussions revolve around the American decision, in the community of money and businessmen and the Chamber of Commerce in Egypt, according to the interview of businessman Mohsen Al -Tajouri, a member of the Board of Directors of the Chamber of Commerce in the capital, Cairo, to “Al -Jazeera Net”, noting that the annoyance of European countries from the decision makes everyone awaiting what will result in the days.
Al -Tajouri explains that a number of meetings will be held in the room to discuss how to exploit the US president’s decision in favor of Egypt, noting that the initial discussions in the circles of the Chamber of Commerce stressed the importance of Egypt to take advantage of the decision to enhance its exports in light of its obtaining the least customary tariff between other countries.
But the businessman in the field of import and export and the former member of the Cairo Chamber’s Board of Directors, Osama Jaafar, expects in his speech to Al -Jazeera Net, Trump retracted his decisions as the world objected to it and his tendency to open the door for negotiation, believing that there is no point in any benefit or great harm to Egypt, in light of the weak American presence in the Egyptian market.
Meanwhile, the member of the General Federation of Chambers of Commerce, Egypt, Mustafa Al -Makkawi, calls on government agencies to increase the export support directed to the American markets, and to reconsider the value -added tax, to ensure the ability of Egyptian exports to adapt to the new commercial conditions.
