The Egyptian production of woven Apparel destined for exports are manufactured from fabrics which are sourced from India, Pakistan and China. During the free-quota-era between Egypt and USA, the attraction of Asian Investments to Egypt was evident and located within the Egyptian Free Zone areas; not only taking the advantages of the Free Quota between Egypt and USA, but in the meantime, making a very good use of the low cost of manufacturing (C&. in Egypt. .
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After the quotas are lifted in January 2005, it is expected that the woven apparel exports from Egypt to USA have no chance of survival, unless: .
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1. Egypt manages to sign a FTA with the USA before the quotas are lifted. .
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2. Using the locally manufactured fabrics from Egyptian cotton fiber instead of the imported fabrics .
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The Egyptian apparel exporters are striving to sign FTA with the USA which is similar to the FTA signed with Jordan and Morocco recently. The FTA agreement between Egypt and USA, will be based on sourcing at least 8-13% from the State of Israel, which in the past seemed to be unacceptable by Egyptian governmental officials due to the political tension in the State of Palestine.
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There are great chances to, soon, sign the FTA between Egypt and USA, or else called Qualified Industrial Zone (QIZ), which would save the future of the apparel exports from Egypt to USA and boost up the quantities for more than four times of the current figures.
Date:4/15/2004
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