Tag Egypt – USA

Bilateral Economic Relations

Total bilateral trade in goods between the United States and Egypt stood at $9.1 billion in 2021, the highest level ever. Egypt is the United States’ largest export market in Africa.

U.S. exports to Egypt include wheat and corn, mineral fuel and oil, machinery, aircraft, and iron and steel products.

U.S. imports from Egypt include apparel, natural gas and oil, fertilizers, textiles, and agricultural products. Under the Qualifying Industrial Zone agreement, the United States waives duties on imports from Egypt if the value includes 10.5% Israeli content; this program promotes stronger ties between the region’s peace partners.

In 2022, the U.S. had a goods trade surplus of $3.6 billion with Egypt, a 40.2 percent increase from 2021. U.S. goods imports from Egypt totaled $2.8 billion, down 15.3 percent from 2021. Egyptian exports to the U.S. were $3.2 billion, an increase of 35.5 percent from 2020. 

U.S. exports to Egypt include: Agricultural goods, Transportation equipment, Chemicals, Machinery, Computer and electronic products. 

Egypt’s top imports include: Refined petroleum, Wheat, Cars, Crude petroleum, Corn. 

Egypt imports mostly from: China, Saudi Arabia, the United States, Russia, and Turkey. 

Egypt’s top exports include: 

• Oil & mineral fuels
• Plastics
• Electrical machinery
• Iron & steel

Egypt and the United States signed a Bilateral Investment Treaty in 1986 to promote and facilitate investment between our countries. Egypt and the United States have signed a trade and investment framework agreement, a step toward creating freer trade and increasing investment flows.

American firms are active in most sectors of the Egyptian economy, including oil and gas exploration and production, renewable energy technologies, financial services, manufacturing, construction, telecommunications and information technology, and the restaurant and hospitality industry.

Flows of U.S. direct investment to Egypt stood at $1.5 billion in 2020, bringing the accumulated long-term stock of U.S. FDI to nearly $24 billion.

Egypt is positioning itself as a regional energy hub, rapidly boosting renewable energy production, further offering potential opportunities for U.S. firms.

In November 2022, Egypt will host the United Nations Conference of the Parties (COP-27) climate change conference in Sharm el-Sheikh.

Hottest Products to Import From Egypt in 2023

Below are the hottest products to export from Egypt, with large growth potential:

1. Cotton (forecast to rise by 7% 2023-2024)
2. Jewelry (up 46% to $1.529 billion in 2022, compared to 2021)
3. Plastics (US$2.61 Billion during 2022)
4. Fruits (US$539.86 Million during 2022,)
5. Ceramics (US$329.96 Million in 2022, a massive 112% increase from 2021)
6. Essential Oils, Perfumes and Cosmetics (US$620.99 Million in 2022)

A slew of positive export data has been released for 2021, showing huge demand for Egyptian products worldwide. An Egyptian-British trade agreement signed following Brexit has been significant for both countries so there are some excellent opportunities for a foreign importer.

Cotton Products

Egypt is famous for its highest quality cotton around the world. Turkey and India import cotton from Egypt to produce high-quality products made of 100% Egyptian Cotton for the worldwide demand.

Fabric production includes fine Egyptian cotton fabrics, shirting, fabrics for trousers/shorts, worsted wool fabrics, denim, fleece, jersey, flat/woolen knits, technical fabrics, and more. Apparel production includes active sportswear, outerwear, underwear, suits, socks, infant wear, etc. Production of made-ups includes a wide variety of bed, bath, and table linens, kitchen accessories, etc.

Perhaps one of the most in-demand products are luxury 100% Egyptian cotton bed sheets and bedware.

Egypt’s cotton industry is forecast to rise by 7% for the year beginning August 2023 to July 2024, the U.S. Agriculture Department said late Monday.

Egyptian Jewelry

Egypts jewelry market is exploding and the potential for excellent returns on investment for those willing to source good suppliers and export to buyers around the world are excellent.

There’s plenty of room in the UK market still and well worth exploring.

Egypt’s exports of gold, jewelry, and precious stones increased by 46% during the period from January to November 2022, to reach $1.529 billion, compared to $1.044 billion during the same period in 2021.

Plastics

Since the revolution in 2011 many sectors, especially tourism, have slowed down, however, this has not been the case with the plastics industry, which includes finished products.

Egypt’s Exports of plastics were US$2.61 Billion in 2022, according to the United Nations COMTRADE database on international trade. The plasticware industry has become an important part of Egypt’s local manufacturing over the past ten years as a result of relying on plastic materials instead of other items like glass and metals.

Fruits

Food imports to Europe are a golden opportunity for Egyptian food imports and remain one of the most stable markets offering the highest prices.

Egypt’s exports of vegetable, fruit, and nut food preparations were US$539.86 Million in 2022,

Europe needs products that are low in sugar and packaging for European standards should be considered. Europe is more interested in buying food products which are in glass containers and tetra packs.

It’s important to understand import requirements with food and fresh fruits as of course there will be a limited shelf life.

Ceramics

Egypt intends to turn itself into a regional hub for manufacturing and exporting ceramics, in light of the availability of energy sources, raw materials, and qualified labor.

Egypt’s Exports of ceramic products were US$329.96 Million during 2022 up from $92 million in 2021, a massive 112% increase.

Egypt has a rich history of manufacturing ceramics and it’s expected for this industry to grow significantly.

Essential Oils, Perfumes and Cosmetics

80% of the world’s natural jasmine products, come from Egypt, where specialists in this ancient art extract the aromatic oils from a profusion of flowers, leaves, roots, and herbs and export them to perfumers in Paris, London, New York, and even Moscow.

Perfumes are a huge export market still to be tapped and the use of essential oils is becoming a very, very popular natural alternative to traditional perfumes.

Egypt’s exports of essential oils, perfumes, cosmetics, and toiletries were US$620.99 Million in 2022, and is still a young market for anyone wanting to take advantage of what is sure to be lucrative with the right suppliers and buyer markets.

Egyptian Exports Reach Their Highest Level Ever in 2022

Egypt’s total exports surged 18.3% year-on-year (YoY) during 2022, with exports jumping to $51.6 billion in 2022, compared to $43.6 billion in 2021.

Last year’s figure marks the highest value ever in the history of Egyptian merchandise exports.

Turkey topped the list of countries importing Egyptian products with a value of $4 billion, followed by Spain with $3.7 billion, Italy with $3.4 billion, and Saudi Arabia with $2.5 billion.

Exports to the US reached $2.446 billion compared to $1.618 billion, yet another significant increase of 51%.

Egypt’s exports to the UK increased 46.2% year-on-year, taking advantage of the Egyptian-British trade agreement, signed by the two countries following Brexit.

Last Updated On: 03/05/2023)

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TRI CONSULTING KYOTO – TRI CK USA TEAM AND EGYPT

We have contributed directly to the Establishment and Development of Business Relationships and Trade Exchanges Between the United States, California, and Egypt with our Initiative and Engagement by Organizing Visits of Egyptian Officials and Business Leaders to California while we Facilitate their interactions and the Signing of several MOU and Agreements between Professional Representatives Entities and their Members.

Extensive work on Establishing Trade and Business Relationship Between California and Egypt

U.S. and Egypt Share a Strong Partnership

The U.S. established diplomatic relations with Egypt in 1922, following its independence from protectorate status under the United Kingdom. The U.S. and Egypt share a strong partnership based on mutual interest in Middle East peace and stability, economic opportunity, and regional security. Promoting a stable, prosperous Egypt, where the government protects the basic rights of its citizens and fulfills the aspirations of the Egyptian people, will continue to be a core objective of U.S. policy.

The United States and Egypt have a strategic relationship based on shared interests and values that span almost two centuries. The two countries are partners in counterterrorism, anti-trafficking, regional security, and economic opportunity. The U.S. has provided over $50 billion in military aid to Egypt since 1978, which has helped Egypt protect its borders and confront terrorism. The U.S. and Egypt also collaborate to expand commercial ties, increase foreign direct investment, and ensure safe transit through the Suez Canal.

The U.S. core policy objective is to promote a stable and prosperous Egypt that protects the rights of its citizens and meets the needs of its growing population. 

The United States and Egypt have a strategic economic and security partnership 

The two countries have a shared commitment to strengthening bilateral economic cooperation. This includes expanding trade, increasing private sector investments, and collaborating on clean energy and climate technology. 

Egypt is one of Africa’s industrial heavyweights. Transforming the country’s economy to sustain job-rich and sustainable growth are pivotal steps in its march towards prosperity. Today’s search for new development models, accelerated by the unfolding of the COVID-19 pandemic, calls for shifting up a gear in raising Egypt’s industrial capabilities to compete in an industry 4.0 and agro 4.0 landscape. The Production Transformation Policy Review (PTPR) of Egypt uses a forward-looking framework to assess the country’s readiness to embrace change. This includes an analysis of the game-changing potential of the African Continental Free Trade Area (AfCFTA) and perspectives on agro-food and electronics (i.e. what in Egypt is referred to as part of the engineering sector), as well as identifying priorities for future reforms.

The U.S. and Egypt also share interests across the Middle East. Both countries are aligned on Israel, Iran, and the regional effect of dysfunctional states such as Libya, Syria, Yemen, and Iraq. 

U.S. assistance has long played a central role in Egypt’s economic and military development. An estimated 250,000 first or second-generation Egyptians live in the United States, while nearly 60,000 U.S. citizens reside permanently in Egypt. 

The U.S. embassy is located in Cairo, and there is also a U.S. consulate in Alexandria. 

The U.S. and Egypt also have a Bilateral Investment Treaty, signed in 1986, to promote and facilitate investment between the two countries. The treaty was modified and entered into force in 1992. The U.S. and Egypt also have a trade and investment framework agreement, which is a step toward creating freer trade and increasing investment flows. In 1996, the U.S. Congress established the Qualifying Industrial Zone (QIZ) initiative to support the peace process in the Middle East. The QIZ initiative allows Egypt and Jordan to export products to the United States duty-free as long as such products contain inputs from Israel. 

The U.S. and Egypt have a Treaty on Mutual Legal Assistance in Criminal Matters, signed in 1998. The U.S. also has a long-running cooperation with the Egyptian military, including the BRIGHT STAR 2023 exercise, which focuses on regional security and cooperation. 

In 2022, the U.S. imported $2.8 billion in goods from Egypt and had a trade surplus of $3.6 billion. 

TRI CONSULTING KYOTO – TRI CK USA supports you in your trade and investment projects, whatever their form:

New sites, extensions, industrial or technological partnerships, acquisitions, or financial investments.

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