“In addition both countries have agreed to explore adding other industrial sectors to the QIZ framework in which Israeli-Egyptian collaboration would have a competitive advantage, such as food and plastics, so that the agreement would contribute more to the Egyptian economy, to Israeli industry and peaceful relations between Israel and Egypt. Under the Qualifying Industrial Zone agreement, Egypt can export goods to the US duty-free if 10.5% of a product’s components are made in Israel” “Last year, Israel exported about US$105 million of raw material products to Egypt – which in turn used the Israeli components to produce and export about a billion dollars worth of goods to the US. The Israeli contribution last year provided about $105 million worth of inputs to the plants, including chemicals, packaging materials and zippers. They constitute three quarters of all Israeli exports to Egypt, so that doubling QIZ exports from Egypt would significantly add to Israeli-Egyptian trade as well”The purpose of this trade initiative has been to support the prosperity and stability in the Middle East by encouraging regional economic integration. There’s a growing recognition in Egypt that the QIZs can serve as a growth engine. The goal of doubling exports would be done through stepped-up marketing” “In Egypt, QIZ plants employ some 280,000 workers directly and thousands of others through sub-contractors and service providers. The QIZ framework, which went into effect in February 2005, is aimed at encouraging Israeli-Egyptian economic ties in order to bolster the two countries’ 1979 peace agreement. The United States recognizes 14 industrial zones with more than 150 textile plants in Egypt as QIZs”
Date:3/22/2015
Source:The Express Tribune, Pakistan