An annual exhibition taking place in Cairo this week came as the textile industry adjusts to the new quota-free era. Sherine Nasr reports This week, some 480 companies representing 31 countries met in Cairo at the ninth annual African-Arabian Exhibition for Textile, Embroidery and Sewing Machinery. Since the first such exhibition in 1996, it has become an important platform for manufacturers and suppliers across the Middle East and Africa to adopt the latest innovations and make direct business contacts. Over an area of 18,000 cubic metres, the latest in automation systems, finishing equipment, ironing and steaming, embroidery, accessories and fabrics were on display. "Egypt is expected to play a significant role as a trade point for textile machinery after removing all customs and tariffs on textile machines and accessories," said Nagui El- Fayoumi, advisor to the minister of foreign trade and industry. As the first textile industry trade fair since the elimination of the global quota system at the beginning of the year, the event focussed on the future of the textile business in the new quota- free era. In addition to the threat from an expanding Chinese share of the global market, Egyptian textile products are in fierce competition with some neighbouring countries such as Turkey and the United Arab of Emirates (UAE). In Dubai, for example, there are some 310 garment factories with total exports worth about $400 million per year, mainly to the US and Europe. "Quality production is the only way Egyptian textiles can compete effectively in the international market," El- Fayoumi said. This year's event is particularly significant, coming after Egypt's signature of a protocol with the US and Israel enabling it to establish Qualified Industrial Zones (QIZs). Goods produced within QIZs can be exported tariff free to the US. Some 42 per cent of Egyptian textile and clothing exports goes to the US market. "Exporting via production in QIZs will give Egyptian exports an edge over Chinese and Indian products," asserted Mohamed Qassem, a garment manufacturer and major exporter to the US. According to a US Department of State and US Foreign Commercial Service report, Egypt has more than 1,500 private sector apparel and intermediate manufacturers, the majority of which are constantly on the search for the latest machinery. In the period from 2002-2005, Egypt allocated $300 million to invest in machinery modernisation, $75 million of which was spent on upgrading knitting and spinning machines.
