Niveen Wahish reports on Egyptian Italian efforts to boost an already thriving trade Last year Egyptian exports to Italy reached Euros 1.2 billion, while imports from Italy hit Euros 1.6 billion, taking trade between the two countries to Euros 2.8 billion. 2005 also saw Italian investments in Egypt rise to LE1.1 billion, while around 800,000 Italian tourists visited the country. Italy is firmly established as one of Egypt's leading trading partners, though officials from both sides believe the figures can improve, to which end Minister of Trade Rachid Mohamed Rachid began a three-day visit yesterday -- his second in three months. During his stay Rachid will meet with Italy's Minister of Productive Activities Claudio Scajola to launch a joint ministerial council and set up the first Italian-Egyptian Business Council, representing entrepreneurs and business associations from both countries. The two officials last met in September when they agreed on a joint action plan aimed at increasing Italian-Egyptian cooperation. "The relationship holds great potential," Rachid told Al-Ahram Weekly. The business council in particular, Rachid believes, will help the two governments take the decisions necessary to increase trade. "Its members are the ones who have hands-on business experience," he said, adding that "as long as there is trade and movement there will be problems but this should not be seen as a threat. On the contrary, it is an opportunity, because by solving these problems the overall climate improves." Naguib Sawiris, chairman of Orascom Telecom Holding, a major investor in Italy's telecommunications sector, will head the Egyptian side of the joint business council. Carlo Pesenti, CEO of Telecementi, the fourth largest cement producing company in the world and a heavy investor in Egypt's cement sector, heads the Italian side. Mohamed Hani Barakat, advisor to the minister of trade for international cooperation, stresses the importance of Italy as Egypt's largest trading partner within the EU and, internationally, its second largest trading partner after the US. Italy, he said, is increasingly being seen as Egypt's gateway into the huge consumer market of the EU. The current visit, says Barakat, also aims to boost the transfer of technology to Egyptian industry in order to enhance competitiveness. This is already taking place through existing Italian-supported technology centres, including the Fashion Design Centre and the Plastic Technology Centre (PTC), established with joint Egyptian-Italian funding but intended eventually to be self-supporting. They provide training to Egyptian companies in addition to quality certification. This latter saves Egyptian producers time, money and the effort previously spent on sending samples of their products to Europe for certification. The Fashion Design Centre also organises fashion shows to market the designs of its trainees. "The technology centres help the Egyptian industry to face growing challenges and steers them in the right direction," said Marco Cortivo, head of the PTC. These existing centres are now eligible to become part of the European Technology Centres Network. Egypt is the only non-EU state that is member of the network which allows member centres to share information on available technologies. During Rachid's visit contracts for the Fashion and Plastic Centres will be renewed, and two new centres, covering technology transfer in the ceramic and jewellery manufacturing industries, will be established. The two sides are also working on a LE150 million project aimed at transferring the leather tanneries of old Cairo to Badr City, as well as schemes to improve transport infrastructure between the two countries by upgrading Egyptian ports and encouraging the private sector to set up new freight lines. Alongside businessmen, Rachid's delegation includes officials from Egypt's stock exchange who are due to sign an agreement with the Milan Stock Exchange encouraging Italian companies to be listed on the Cairo and Alexandria Stock Exchange and vice versa, and Investment Authority officials who will sign an agreement with the Milan Chamber of Commerce to attract investments both ways. Improved trade exchange, investments and technology transfer will, says Barakat, lead to improved movement of people, goods and capital. Egypt's trade relationship with Italy is governed by its Association Agreement with the EU. Exports include vegetables, fresh and frozen fruits, textiles, clothing, marble, furniture, leather, shoes, crude oil, cement, aluminum, iron and steel. From ItalyEgypt imports machinery, including electric engines, industrial inputs, cars and spare parts, and fabric. Italian investments in Egypt are directed mostly towards the metallurgical, oil and gas industries, while Egypt's most noticeable investment in Italy has been the acquisition by Naguib Sawiris's Weather Investments of 63 per cent of Wind, the Italian telecommunications company.
