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AMERICA AND EGYPT: A GREATER UNDERSTANDING
President Mubarak is a trusted ally in Washington and has played a pivotal role in the Middle East peace process.
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Presidents Clinton and Mubarak are allies of
long standing.
Both men are committed
to pursuing peace and stability in the Middle East. Yet, when they meet on July 1, there will be more on the agenda than politics. With U.S. exports to Egypt outweighing those of
Egypt to America by more than five times, redressing the deficit in the trade balance is a key concern of the Egyptian delegation.
Egypt is vying for free
trade with the U.S. and looks set to sign a Trade and Investment Framework Agreement (TIFA)
in the near future.
The benefits are clear on both sides: for Egypt, the transfer of technology will accelerate not only its economic goals, but also
its social agenda.
For the U.S., there is a new and fast-growing market with which to do business.
Infocus examines what is
at stake both for peace
and the future prosperity
of the region as a whole.
When the President of Egypt, Hosni Mubarak, sits down to talk with President Bill Clinton tomorrow, it will be as a friend and an ally.
Warm relations have been reflected in glowing praise from Washington for Egypt's key regional role and its economic achievements.
The words have been backed up by deeds, such as a series of deals, worth more than $3 billion this year alone, to re-equip Egypt's defense forces.
The talks, which aim to promote bilateral links and deal with regional concerns including the Middle East peace process, will be nothing if not cordial. Long an ally in the Middle East, Egypt under Mubarak is seen by the U.S. as an island of stability in a volatile area.
On the political front, Mubarak's meeting tomorrow with Clinton is certainly significant. The election of Ehud Barak as Israeli prime minister could give the Middle East peace process new momentum. With the recent death of Jordan's King Hussein, there is no Middle Eastern leader with a greater breadth of experience and involvement in the peace process than Hosni Mubarak.
In office for 18 years, and facing another election in September, Mubarak is all too aware of the regional turmoil around him and has worked hard to broker numerous peace deals over the years.
Washington knows that Mubarak will have a significant role in future initiatives as a man America trusts in its discussions over the future of the region.
But there is more to this visit than political issues. The White House and the U.S. business community see Egypt as a regional economic powerhouse in the making, working to introduce liberalizing initiatives with strong private-sector involvement, such as a planned pan-Arab trade zone involving more than 15 countries.
The turnaround achieved in the last two decades by a country whose population has risen by nearly two-thirds in the same period, is one of the few around the world for which the tag "economic miracle" is more than mere hyperbole.
As President Mubarak himself put it when speaking to the U.S. Council on Foreign Relations in New York earlier this month: "At the dawn of the 21st century, Egypt has recovered its vigor. It has restored its strength and has today the environment that will create prosperity for its people."
The prospects look good for further progress on trade arrangements drawn up by President Mubarak and U.S. Vice President Al Gore under the U.S.-Egypt Partnership for Economic Growth and Development.
The Gore-Mubarak initiative was set up in 1994 with the aim of enhancing bilateral trade through high-level government contacts, speeding up Egyptian economic reforms and bringing business leaders from the two nations together.
Also under discussion is a possible Trade and Investment Framework Agreement (TIFA) with America, which would open the door to much freer trade between the two countries. America has so far only entered TIFA talks with countries adopting what it considers suitably liberalized economic regimes - South Africa was the first to sign - so successful negotiations on such a deal in the near-future would be the biggest vote of confidence from America that Egypt could hope for.
Not that Egypt is short of suitors, with negotiations over a free-trade agreement with the European Union already well underway.
The burgeoning Egyptian private sector is eager to take advantage of greater bilateral trade with America and Europe. To prove the point, Mubarak is being accompanied on his U.S. visit by a team of Egyptian businesspeople eager to make contact with their American counterparts.
But it is not just Egyptian business which stands to benefit from the dynamic, fast-changing Egyptian economic scene.
These days foreign investors are increasingly finding that the legislation to match the rhetoric is in place, thus enabling inroads to be made in Egyptian industry without the shadow of state interference hanging over them.
"Egypt must attract foreign investment," was the message stated by President Mubarak to the American Council on Foreign Relations.
"For its spending, for its technology and for its access to the world economy, foreign investment is a full partner in our progress. Our institutions welcome it, our regulations encourage it and we listen to it in our reforms and progress."
President Mubarak's meeting tomorrow with his counterpart in the White House can only strengthen the already cordial relationship which exists between the two men.
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