Not QIZ time yet EGYPTIAN Industry and Foreign Trade Minister Rasheed Mohamed Rasheed told Al- Ahram 's Washington correspondent recently that Egypt would not forfeit any of its demands regarding the establishment of Qualified Industrial Zones (QIZs), "even [if that meant] not reaching an agreement at all". While one of the contentious issues is thought to be the number of QIZs that Egypt can establish, agreement on the number of zones may not be too far off. Gregory Sullivan, press spokesman of the Bureau of Near Eastern Affairs at the US State Department, told Al- Ahram Weekly that the discussions with Rasheed were productive. Sullivan said that both the US and the Egyptian sides are closer on the number of QIZs than they were before the minister's visit. "We have a better understanding of what the Egyptians are looking for, and we're looking seriously at what they've proposed." QIZs are industrial parks that can be set up in Egypt, Israel or Jordan, from which goods can be exported duty-free to the US. Because the goods produced in these zones would contain a minimum percentage of Israeli content, they would thus be eligible for the same treatment as Israeli products -- which, according to the US-Israeli Free Trade Agreement (FTA), would allow them duty-free entry to the US. The US Congress launched the QIZ initiative in 1996 to support the Middle East peace process. Egypt had rejected the idea for years, arguing that it was too politically sensitive. In Washington, Rasheed reasserted Egypt's current willingness to reach an agreement on establishing the zones in Egypt, as long as suitable conditions that fit Egypt's interests are met. He said that the US is a major stakeholder in the agreement because it is the US market that Egypt is targeting. "We have to be completely sure that this agreement will be for the benefit of Egyptian industry and exports," Rasheed said. The minister also said that he sensed a positive change on the part of the US administration towards initiating Free Trade Area (FTA) negotiations with Egypt. "We hope that these negotiations begin next year," he said. The two sides are expected to meet in two months time in Cairo, according to Rasheed, to set a time frame for moving on to negotiations. The minister said the most important thing was that the US side places Egypt among the priority countries it wants to reach an agreement with. Good neighbours INCREASED EU financial assistance may be coming Egypt's way in the framework of the European neighbourhood policy. David Lipman, director for resources and information at the European Commission's directorate general for external relations, told a press gathering last week that some 15 billion euros are being proposed by the European commission to finance the EU's neighbourhood partners for the seven- year period between 2007-2013. Should this proposal go through, assistance would increase substantially, said Oliver Nette, acting head of the EU delegation in Cairo. That could mean a doubling of current assistance to the region's countries, Nette said. The EU provides 50 per cent of the world's development aid. Some 600 million euros have been allocated in grant assistance for Egypt for the period between 2002-2006. The neighbourhood policy, Lipman said, would be the main thrust of future EU policy. In fact, the EU Commission has renamed its commissioner for external relations; the position is now called commissioner for external relations and neighbourhood policy. "It is not just about aid and trade, but about bringing neighbours as close as possible without joining," he explained. The European Neighbourhood Policy addresses the EU's neighbours south and east of the Mediterranean, namely Morocco, Algeria, Tunisia, Libya, Egypt, Israel, Jordan, Lebanon, Syria and the Palestinian Authority, as well as its neighbours to the east -- Belarus, Ukraine, and Moldova -- and the Southern Caucasus countries Georgia, Armenia, and Azerbaijan. It does not cover countries that are candidates or potential candidates for EU membership. The EU has yet to work with these countries individually to come up with action plans setting out priorities, whose fulfilment will bring them closer to the European Union. These priorities include a number of key areas for specific action such as political dialogue and reform, trade, and measures preparing partners for gradually obtaining a stake in the EU's internal market, social policy and people-to-people contacts. The European Neighbourhood Policy also builds on existing instruments. For example, in its relationship with Mediterranean countries, it will build on what has been started by the Barcelona Process. Siemens in Talkha LAST TUESDAY, a contract was signed between Siemens Power Generation (SPG), the Egyptian Electricity Holding Company (EEHC), and the Egyptian East Delta Electricity Production Company (EDEPC). SPG will supply the new Talkha Combined Cycle Power Plant in the Delta area, near Talkha city, with two gas turbines. Serving the Talkha and Mansoura industrial area, the 250-megawatt turbines will cost 84 million euros, in addition to a ten per cent provisional fee of the total contract price. Financed by the Arab Fund for Economic and Social Development, the Kuwaiti Fund for Development, and the European Investment Bank, the project has already gone into implementation and is to be completed by the summer of 2006. Siemens will also provide the plant with electrical and mechanical equipment. Global ceramics EGYPTIAN ceramic tiles and sanitary ware company, Lecico, became the nineth Egyptian firm to register its shares at the London Stock Exchange (LSE) as Global Depository receipts. The move took place through a capital increase from LE84 million to LE100 million distributed over 3.2 million shares, at a par value of LE5. An equal amount of GDRs have been listed on the LSE. The capital increase was offered through a private placement and was fully subscribed by the Bank of New York as a depository bank. Lecico produces 16 million square metres of tiles and four million pieces of sanitary ware a year. Fifty-five per cent of the company's production is exported to more than 35 countries worldwide.
