{"id":587529,"date":"2023-05-29T00:00:00","date_gmt":"2023-05-29T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/29\/how-the-egypt-us-joint-economic-commission-could-deepen-economic-ties-spur-more-us-investment-in-egypt\/"},"modified":"2023-05-29T00:00:00","modified_gmt":"2023-05-29T00:00:00","slug":"how-the-egypt-us-joint-economic-commission-could-deepen-economic-ties-spur-more-us-investment-in-egypt","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/05\/29\/how-the-egypt-us-joint-economic-commission-could-deepen-economic-ties-spur-more-us-investment-in-egypt\/","title":{"rendered":"How the Egypt-US Joint Economic Commission could deepen economic ties + spur more US investment in Egypt"},"content":{"rendered":"

<\/span>EXCLUSIVE- What the Joint Economic Commission means for Egypt-US ties \u2014 and US<\/span> investment here:<\/span> The Egypt-US Joint Economic Commission (JEC) held its launch meeting in Cairo <\/span>earlier this month<\/a><\/span>, with a broad delegation of US government representatives and businesses discussing the expansion of economic and business ties between the two countries. The commission was first announced in <\/span>November 2021<\/a><\/span> as a working group to support Egypt\u2019s green transition, the economic empowerment of women, and the focus on infrastructure and ICT investments. <\/span><\/p>\n

Enterprise sat down with US Under Secretary of Commerce for International Trade Marisa<\/span> Lago<\/span> and <\/span>Principal Deputy Assistant Secretary for the Bureau of Economic and Business Affairs<\/span> at the US Department of State <\/span>Whitney Baird<\/span> to discuss the work of the joint commission and the next steps for the commercial relationship between Cairo and Washington. Edited excerpts from the conversation: <\/span><\/p>\n

ENTERPRISE:<\/span> Tell us about the JEC and its significance for Egypt and the US and the ties<\/span> between the two countries. <\/span><\/p>\n

MARISA LAGO:<\/span>The relationship between the US and Egypt is one that is a century old;<\/span> it\u2019s broad, and it\u2019s deep.<\/span> The US has been Egypt\u2019s largest bilateral donor for many years and we\u2019re very much invested in the wellbeing of the Egyptian people. What came through from previous strategic dialogues and discussions was just this hunger to build on the economic and business relationship between the two countries because there\u2019s already a tremendous business presence here from US companies and there\u2019s real interest in discussing how we can move that forward. <\/span><\/p>\n

There are already more than 1k US companies operating in Egypt and the US is one of<\/span> the largest sources of FDI in Egypt.<\/span> The JEC\u2019s work therefore isn\u2019t to start a commercial relationship, but rather to look for ways to position it for growth and for future success as the economy evolves. <\/span><\/p>\n

The JEC was set up by our heads of state, which shows the importance that they place<\/span> on the trade, the investment, and the commercial relationship<\/span> between Egypt and the US. This is yet another way that our two nations can work together \u2014 and at a very high level. What we\u2019re looking to do is to deepen the ties that we have in the economic trade and investment spheres to promote shared prosperity for the Egyptian people and for the American people. We want to prepare our economies for the future \u2014 not just succeeding today, but preparing for success in the future. And then we have to be realistic about the fact that we are experiencing global economic shocks and we will in the future, so we are looking to <\/span>build in resilience<\/span> to these shocks. <\/span><\/p>\n

E:<\/span> What were the key talking points during the JEC\u2019s launch meeting?<\/span><\/p>\n

ML: The JEC\u2019s inaugural meeting focused on the key economic and commercial issues of the<\/span> day:<\/span> Energy and the transition to a future clean energy environment; the digital space; information and communications; technology \u2014 particularly as Egypt is investing so much in building out its infrastructure; supply chain resiliency; and food security. I was also very pleased that we discussed at length the economic empowerment of women. These are the topics that are front of mind when you have a healthy, strong bilateral economic relationship. <\/span><\/p>\n

The JEC\u2019s first session was a very strategic discussion about what are the areas that are<\/span> priorities for Egypt<\/span> and where the US investment and trading community sees potential for collaboration and for US companies to come here right now. This isn\u2019t a country that\u2019s new to US businesses \u2014 many have been operating here successfully for years. But as the Egyptian government identifies priority sectors, we know that we have companies with cutting-edge solutions \u2014 frequently tech-driven \u2014 in areas where it would be mutually beneficial. So we discussed how to collaborate, how to make sure that the commercial environment in Egypt is as attractive as possible to bring in this additional investment.<\/span><\/p>\n

We recognize that there are challenges in the global economic environment, but there is<\/span> also a big opportunity, and our discussions are focused on the future.<\/span> For example, when people look at the clean energy transition, the focus has been on the need to address a challenge that is here now. But there is also a consideration for the potential jobs of the future.<\/span><\/p>\n

E:<\/span> For US companies looking at Egypt for potential investments, what are some of the driving<\/span> factors for that appetite?<\/span><\/p>\n

WHITNEY BAIRD:<\/span>US companies look to the commercial business-enabling environment<\/span> and they look to growth opportunities.<\/span> Let\u2019s take energy and the environment as a specific example. Egypt\u2019s presidency of COP27 was an indication of commitment to moving the economy towards the green transition, which is a globally shared goal and is absolutely top of mind in the Biden-Harris administration. So US companies seeing Egypt saying, \u201cThis is the direction we\u2019re headed\u201d is an indication for them that there\u2019s potential there for decarbonization solutions. <\/span><\/p>\n

What businesses are looking for is, primarily, a sense of opportunity.<\/span> And from what we\u2019ve<\/span> heard, US businesses see a lot of opportunity in Egypt, so we\u2019re pushing on a pretty open door. Egypt also has promising market dynamics and demographics: An increasingly tech savvy population that is English speaking, a youth dividend, and the benefit of geography as a gateway to Africa \u2014 which across the board has this youth dividend as well. <\/span><\/p>\n

ML:<\/span>Many of these companies aren\u2019t the multinational giants that are already present in<\/span> Egypt \u2014 they\u2019re the small and medium-sized enterprises<\/span> that are innovative and that grow out of our research universities. They\u2019re looking for where there is an alignment of Egyptian government interest and the tools and products that they have. <\/span><\/p>\n

E:<\/span> In terms of the tech space in Egypt, where do you see potential for US businesses to<\/span> introduce their innovative solutions?<\/span><\/p>\n

ML: I was really struck with how the Egyptian government has such a focus on the digital<\/span> transition.<\/span> Egypt is a country with a young population and there\u2019s this entire generation of digital natives coming up who will be in an excellent position to be part of that growth. It therefore wasn\u2019t unusual to see that focus, and we saw a lot of potential for mutual benefit \u2014 there are plenty of US companies with great solutions and some promising potential areas of application in Egypt. <\/span><\/p>\n

This focus on digitization was particularly evident in our discussions on financial<\/span> inclusion, particularly as it pertains to women in rural areas.<\/span> There\u2019s very detailed, intensive work happening on the ground to bring women in villages online and into the digital world in a way that removes some of the financial friction these groups face. It\u2019s a way to formalize their financial transactions and build trust in the government, and the specific focus on women in that regard is a testament to the Egyptian government\u2019s focus on empowering women. The empowerment of women is the ethical thing to do, but it\u2019s also the right economic thing to do for the economy to reach its potential. <\/span><\/p>\n

E:<\/span> What are the next steps for the JEC?<\/span><\/p>\n

ML: Now it\u2019s about driving work forward <\/span>into concrete<\/span> action plans.<\/span> We had constructive<\/span> discussions with the folks who did all of the preparatory work for a successful launch of the JEC, and now they\u2019re charged with putting these discussions into action plans. Our next JEC meeting next year will focus on initiatives that are already under way and setting a work plan for the future. With this focus on commercial trade and investment ties, we are positioning our two nations to succeed for the next 100 years.<\/span><\/p>\n

WB: Altogether, the launch of the JEC was an entirely positive outcome<\/span> \u2014 it sets us up to<\/span> have ongoing discussions over the year to lead to the next check next year in Washington.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The next meeting of the JEC is scheduled for next year in Washington, DC<\/p>\n","protected":false},"author":1,"featured_media":587530,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7279],"tags":[6552,72,125,10628,2073],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-587529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-spotlight","tag-egypt-us-relations","tag-enterpriseam","tag-investment-watch","tag-joint-economic-commission","tag-spotlight","wpautop","entry"],"acf":{"mongo_id":"b1b9f9d1-3fc3-4a19-a2f1-325d7154bfcc","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/5\/1040.jpg","photo_position":"above","homepage_title":"","full_issue_title":"How the Egypt-US Joint Economic Commission could deepen economic ties + spur more US investment in Egypt","related_issue":[587520],"teaser":"The next meeting of the JEC is scheduled for next year in Washington, DC","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/5\/.b5fd28db-d969-48e7-b31b-9a5bbde64057.mp3"},"yoast_head":"\nHow the Egypt-US Joint Economic Commission could deepen economic ties + spur more US investment in Egypt - 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