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### Viewing cable 10CAIRO245, UPDATE ON U.S.-EGYPT STRATEGIC ECONOMIC DIALOGUE

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
10CAIRO245 | 2010-02-25 11:57 | 2011-02-16 21:00 | UNCLASSIFIED | Embassy Cairo

`

    VZCZCXYZ0000
    RR RUEHWEB

    DE RUEHEG #0245/01 0561157
    ZNR UUUUU ZZH
    R 251157Z FEB 10
    FM AMEMBASSY CAIRO
    TO RUEHC/SECSTATE WASHDC 0417
    INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
    RUEHEG/AMEMBASSY CAIRO
    RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC

` `

    UNCLAS CAIRO 000245

    SIPDIS
    DEPT FOR NEA/ELA
    DEPT PLEASE PASS TO USTR/SFRANCESKI

    E.O. 12958: N/A
    TAGS: ECON ETRD EG EAID EAGR EINV
    SUBJECT: UPDATE ON U.S.-EGYPT STRATEGIC ECONOMIC DIALOGUE

    REF: 10CAIRO68; 09CAIRO2172

    ¶1. (SBU) Key points:

    -The U.S.-Egypt Strategic Economic Dialogue was launched in 2009,
    and the USG will have to overcome weak GOE inter-ministerial
    cooperation to move forward on the dialogue's goals in 2010.

    -The key U.S. objectives in its economic relationship with Egypt
    are deepening bilateral trade and investment, helping Egypt to
    improve its domestic and international commerce, increasing U.S.
    exports to Egypt, supporting the Qualifying Industrial Zones (QIZ)
    program, and helping Egypt to improve its IPR climate and reduce
    non-tariff trade barriers, particularly in agricultural products.

    -The U.S. interagency strategy to meet its objectives includes
    gathering key GOE stakeholders, offering technical assistance where
    appropriate, and leveraging visits by high-level USG officials and
    by working-level officials from the US and the region to move the
    process forward.

    Overview of Strategic Economic Partnership

    ¶2. (SBU) The dialogue with the GOE is built upon the Plan for a
    Strategic Economic Partnership on Trade-Related and Investment
    Issues signed by United States Trade Representative (USTR) Ron Kirk
    and Egypt's Minister of Trade and Industry (MOTI) Rachid M. Rachid
    in Washington in May 2009. In November 2009, U.S. and Egyptian
    private companies agreed upon the creation of a Business Leaders'
    Forum endorsed by Min. Rachid and Commerce Secretary Locke, and
    Min. Rachid and USTR Kirk finalized a work plan for a Joint Forum
    on Trade and Investment.

    ¶3. (SBU) Since finalizing the work plan, progress has been slow,
    largely because of the weak inter-ministerial cooperation on the
    part of the GOE. For this reason, the USG will have to take the
    lead in moving forward to advance our key objectives in our
    bilateral economic relationship with Egypt, which are as follows:

    Deepening the Bilateral Trade and Investment Relationship

    ¶4. (SBU) In our engagement with Egypt in a strategic economic
    dialogue, we seek to deepen bilateral trade and investment. Amidst
    the economic crisis in 2009, U.S.-Egypt bilateral trade fell to
    $7.3 billion, a decrease from $8.4 billion in 2008. There have,
    however, been a few strategic commercial successes, including the
    recent $650 million Boeing contract for the purchase of eight 737
    aircraft and the $50 million Hill International contract to manage
    the construction of the new Egyptian Grand Museum.

    ¶5. (SBU) We seek to expand our exports to Egypt, and to work with
    Egypt where appropriate to help it achieve its own ambitious goals
    of doubling exports and improving domestic commerce in the coming
    years. We also hope to achieve expanded trade in services,
    including promoting the development of Egypt's logistics and
    distribution, while liberalizing trade in U.S. services, including
    franchising.  We are also looking to improve labor and
    environmental standards in Egypt.

    Improving IPR

    ¶6. (SBU) Building on recent successes in improving the intellectual
    property rights (IPR) climate in Egypt, it is important that we
    identify and address remaining areas of concern. Egypt remains on
    the Special 301 Watch List as much remains to be done to improve
    copyright protection for US music, film and books in Egypt.
    Copyright is an area of mutual interest as Egypt - historically a
    center of culture in the Middle East -- has experienced economic
    losses due to IPR infringement. We should focus on building on this
    mutual interest, and be sure to acknowledge the fact that the GOE
    has been working with IPR stakeholders in copyright and publishing,

    and we should encourage the GOE to do more.

    ¶7. (SBU) We will continue to work with  Egypt on PTO and USAID
    training and capacity-building programs. These include economic
    court judges training, assistance in finalizing a new Border
    Measures Law, and best practices workshops and visits with
    enforcement officials to improve Egypt's border measures against
    counterfeit goods, its patent and trademark implementation, its
    pharmaceutical registry, and its enforcement of laws against
    pirated books, music, and film.

    Increasing Agricultural Trade

    ¶8. (SBU) Another major goal is increasing U.S. agricultural
    exports, by seeking Egypt's cooperation in liberalizing imports of
    beef products, seed potatoes and poultry parts. The US is also
    seeking Egypt's cooperation in ending 100% inspection and testing
    of agricultural containerized shipments. Finally, the US is
    encouraging Egypt to pass a new bio-safety law that takes a
    science-based approach to agricultural bio-technology.

    QIZ

    ¶9. (SBU) During AUSTR Gail Strickler's December 2009 visit to
    Cairo, she energized both MOTI and the private sector when she
    reiterated our commitment to the QIZ program and raised the
    possibility of including additional areas and factories.  Post
    would like to aggressively move beyond the current impasse over
    fairly modest technical issues (ref. A) to embrace the original
    goals of the QIZ program: Strengthening the Egyptian-Israeli
    political relationship through closer economic ties and promoting
    stability within Egypt through the creation of jobs and economic
    opportunity. To this end, we would like to explore ways to quickly
    work with the GOE to improve this valuable preference program,
    while ensuring that proper oversight of the program continues.

    USG Strategy

    ¶10. (SBU) With an interagency process led by USTR and including
    USAID and the Departments of State, Commerce, and Agriculture, we
    will work with  MOTI to help overcome the GOE's weak
    inter-ministerial cooperation by bring key GOE stakeholders
    together to move forward on our main objectives. Where necessary,
    we will also offer technical assistance to Egypt through existing
    USAID, Patent and Trademark Office (PTO) and other USG programs to
    support specific goals.

    ¶11. (SBU) We understand that USTR Kirk is planning a visit to Cairo
    in March for meetings. We recommend that USTR Kirk use the visit to
    advance the goals outlined above in high-level meetings with the
    GOE. Following his trip, we suggest that USTR build on the momentum
    gained in our economic dialogue to send working-level experts and
    tap into existing USG in-country officials to make progress on our
    key objectives with inter-ministerial GOE decision-makers.
    SCOBEY

`