IN AN ATTEMPT to open up new horizons and strengthen Egypt's position in the global economy, the government started to spearhead initiatives to build trade with both China and Russia. The Ministry of Trade and Industry announced a new strategy which aims at opening new markets and investment opportunities for Egypt by shifting its emphasis from traditional focus on Western economic partners to the Eastern countries. President Mubarak's visit to Russia, China as well as Kazakhstan, in November 2006 reflects Egypt's extensive efforts to create and explore new trade and investment opportunities with Egypt's long standing partners in the East. The visit aimed at laying down the groundwork for the economy and Egyptian companies to work in a healthy and economically sound framework. Rachid Mohamed Rachid, minister of trade and industry, justified the government's great and sudden interest to boost trade relations with China and Russia that Egypt should cope with the changes which occurred in the world's economic map. Egypt can be Russia's gateway to the Middle East and North Africa. However, the current volume of trade between Egypt and Russia is modest and in favour of Russia. Egypt's imports from Russia currently stand at $1.1 billion while Egyptian exports to Russia are estimated at $77 million. These figures do not reflect the full economic potential of the bilateral relationship. Egypt's goal is to increase bilateral trade with Russia to $2.5 billion by 2010. Russia is also considering investing heavily in Egypt and is expected to offer assistance for Egypt's proposed nuclear programme. Moreover, negotiations are currently ongoing to establish a free trade area with Russia. Egypt's move to boost the trade relations with Eastern countries includes China the world's largest and most dynamic economy. However, Egypt's share of China's trade with the region is tiny. The two countries exchanged just $2.3 billion in goods and services last year but officials in both countries say that is not the actual figures that count at this juncture. Chinese exports to Egypt rose by 39 per cent to reach over $1.9 billion while Egypt's sales to China climbed 12 per cent to more than $211 million. The average growth in the volume of Egyptian Chinese trade proves that in the coming 10 years, China will be Egypt's primary trade partner. At this stage, Rachid said that the role of the government is to establish the economic framework for this cooperation. In October 2006, Rachid signed a protocol with his Chinese counterpart which sipulated the establishment of a series of projects in Egypt with Chinese technology, including a cement factory at the value of $2 million. Approved as well were projects funded by the Chinese government such as the establishment of a big industrial zone for small and medium enterprises worth $1.1 billion and a Fair ground at $500 million. The protocol included $600 million to support the Egyptian exports to China particularly the agricultural products and $600 million for technical cooperation to promote the marbles and textiles industries.
