Sri Lanka can make use of an agreement between Egypt, Jordan, Israel and the US to gain access into the US ready-made apparels market, the Federation of Egyptian Chambers of Commerce (FECC) said today.
"The Qualified Industrial Zone Agreement between the US, Israel, Jordan and us (Egypt) was mooted by the US and created to promote peace in the Middle East by building bridges between the Arab world and Israel.
"According to the agreement, Egypt can export apparels to the US which will be exempt from duty provided that nine percent of production inputs come from Israel," Mohamed El Masry, Chairman, FECC said.
He said that this is important for Sri Lanka as the country could have access to the US, the biggest market for ready made apparels, through Egypt and urged that both Sri Lanka and Egypt should take tangible steps to establish the Sri Lanka-Egypt Joint Chamber Council (SLEJCC).
The Memorandum of Understanding to establish the SLECC was signed by El Masry and Prema Cooray, CEO, Ceylon Chamber of Commerce (CCC), today, in the presence of Foreign Affairs Minister, Rohitha Bogollagama.
Prema Cooray said that it would be worthwhile for Sri Lankan apparel manufacturers to explore the facilities of entering into Egypt in order to benefit from the Qualified Industrial Zone Agreement.
"We have been lobbying to enter the US market with little success, so this might be an interesting opportunity," Cooray said.
Cooray said that trade between the two countries was insignificant but since signing a MoU in 2003 to improve trade, exports had increased by almost 100 percent to US $19 million with tea, dessicated coconuts and rubber being the major contributors while imports from Egypt had increased by almost 300 percent to US $11million, the bulk of which is fertilizer, over the past five years.
The specific purpose of this MoU was to drive more trade between the two countries.
"Membership to the SLECC will not be limited to the CCC but any business wishing to establish trade links with Egypt may join the SLECC," Cooray said.
Cooray said that Egypt had a growing affluent middle-class market which can attract Sri Lankan exports while access to the Sues Canal will provide connectivity to the Middle East and European markets.
Establishing tourism links is another area both Egypt and Sri Lanka could benefit from but said that Egypt needed to provide better air connectivity.
El Masry stressed that both sides had to ensure that each side will only appoint those businesses who are genuinely interested in trade between the two countries to the SLECC so that that the joint council will have a speedy implementation and effective existence.
He was confident of Sri Lanka’s commitment to the joint council because the MoU was signed in the presence of the Foreign Affairs Minister, he said.
Bogollagama is in Egypt with a business delegation in a bid to strengthening political, economic and trade ties with the Mid-East region.
Dr. Sicille Kotelawala, Deputy Chairperson, Ceylinco Consolidated, and Dr. Chris Nonis, Chairman, Mackwoods Ltd met with members of the FECC at the occasion.
