The US-Egypt Policy Leaders Forum kicked off with a promise of a new era of bilateral economic relations, with a new customs agreement between the two nations set to be announced soon. The agreement is in its “final stages,” US Ambassador Herro Mustafa Garg and Prime Minister Moustafa Madbouly said at the forum yesterday, attended by EnterpriseAM. The AmCham Egypt- and US Chamber of Commerce-hosted event saw the ambassador describe the coming agreement as a “significant milestone” in promoting bilateral trade and American investment in Egypt.

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Garg was keen to emphasise how “mutually beneficial trade and investment are a top priority” for the Trump administration, so “US companies have a level playing field, whether working with the private or the public sector.” And with this new trade relationship, she added that she’s hopeful that “even more American companies especially in the information and communications technology sector will enter and expand their presence in the Egyptian market.”

Changes to our auto import requirements helped get the agreement over the line, with Madbouly revealing that the country on 11 May decided to exempt American-made automobiles from the country’s mandatory production standards. Egypt is “ready from today” to receive US-made cars that meet US federal standards, opening up a sizable consumer base for American manufacturers that are losing market share elsewhere on the back of tariff showdowns with much of the world.

US dairy producers also now get easier access to the Egyptian market, following a decision to permanently exempt American-made dairy products and their derivatives from having to acquire halal certifications upon import — a long-standing request from the American dairy industry.

Alongside this is a push to increase the number of accredited halal certification bodies and to cut halal certification fees by 30-50% as part of a broader overhaul to boost competition and, in turn, bring down prices, Investment Minister Hassan El Khatib said at the conference.

El Khatib also announced that its in-the-works online unified licensing platform will be launched in “the coming days,” which will let investors apply for 389 licenses and services for investors online and in one place — simplifying the often overwhelming, confusing, and time-consuming process that has been a frequently complained about barrier to investment for as long as we can remember.

But this will be just the first phase of a larger platform covering the entire project lifecycle, El Khatib revealed. The ministry is hoping to contract out developing the project in June and is looking to complete setting up the new and expanded platform over a 12-month period. A survey of all non-tax burdens has been completed and the ministry’s attempts to build up a plan to reduce these and make these more transparent is underway, he added.

A new national trade policy is also slated for announcement by the end of next month, according to El Khatib. The document will lay out the ambitious goal of ranking among the top 50 in global trade competitiveness and cutting customs clearance times from 14 days to just two by the end of 2025, he said.

More transparency ahead: Next month, the Madbouly government will publish a report detailing its KPIs on fiscal resilience, FDI, industry, trade, workforce readiness, and the macro level, Planning Minister Rania Al Mashat said. “We are here to make sure that we are growing, creating more jobs, but more importantly, creating resilience in the face of the different shocks that we are facing,” she said.

And speaking of fiscal resilience: “We’re seeing recovery and we’re seeing very strong tax reform this year. We were able to deliver a very strong surplus of 3.1% of GDP in the first 10 months of the fiscal year — this is the highest ever primary surplus we’ve ever realized,” Finance Minister Ahmed Kouchouk said. “We were also able to bring down debt despite the high interest rate.”

Industry Minister Kamel El Wazir also took to the stage to announce a plan to support struggling factories, which will see the central bank support a fund that will help “restructure struggling factories and support industries targeted for export,” he said. Underpinning these ambitions is Egypt’s EGP 2 tn investment in transport infrastructure, which will include seven international logistics corridors designed to enhance connectivity and support the vision of Egypt as a regional trade and industrial hub. This includes the USD 550 bn already spent on infrastructure over the past decade, according to El Khatib.

DATA POINT- Egypt-bound FDI from the US totaled USD 3 bn in the previous fiscal year, marking the country as the second largest source of foreign investment. Trade between the two countries reached USD 8.6 bn in 2024.

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