Obama's Trip to Egypt - Paving the Way for Increased Commerce

President Obama arrived in Egypt 5 days ago on June 4 to deliver a much anticipated speech on global trade between the US and Middle East. Fostering bilateral trade and investment could benefit both nations and help stabilize political relations.

Egypt is striving to become a trade hub in the Middle East on the strength of its favorable geographic location, purchasing power, and consumer culture. The United States is stuck in the worst recession since the 1930's, worsened by sluggish consumer spending.

Put the two together and benefits will flow. "Egypt can offer US companies many advantages, including a large domestic market of almost 80 million consumers and Egypt's many bilateral trade agreements with almost all major world markets," said Rachid Mohamed Rachid, Egyptian minister of trade and industry.

Egypt is the 36th-largest export market for U.S. goods, totaling $6 billion in 2008, up from $5.3 billion in 2007. U.S. imports from Egypt were down 0.3% last year to $2.4 billion.

Secretary of State Hillary Clinton promised strong US backing to promote economic opportunity in Egypt. "I want to stress economic opportunity because out of it comes confidence, comes a recognition that people can chart their own future," she said.

To read the full article, please visit the Los Angeles Times.

Export Control Reform Examined in Context of Economic Recovery

Export control reform has been an item of interest for a number of U.S. industries for several years, and a congressional hearing this week suggests that lawmakers may be ready to seriously consider it. Witnesses at a February 25 hearing of the House Science and Technology Committee said that the current system puts U.S. companies at a disadvantage in the global marketplace and that reforms could play an important role in government efforts to promote economic recovery.

In the post 9/11 environment, Congress has had little appetite for taking any action that could be construed as a liberalization of export controls. In opening the hearing, however, Committee Chairman Bart Gordon asserted that “it is time for Congress to take another look at the nation’s export controls regime to ensure that it is working effectively and without unintended adverse impacts.” As part of that review, Gordon stated, “we want to understand any negative effects that the current export controls regime may be having on our efforts to stimulate the economy and promote long-term growth through investments in science and technology.” Both Gordon and Space and Aviation Subcommittee Chair, Gabrielle Giffords, expressed hope that the House Armed Services and Foreign Affairs committees will review this issue as well.

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