Sign in Subscribe
Bush, George W.

Stalled Trade Deal Threatens Middle East Peace Efforts

Strategic Insights

— 1 min read

President Bush's administration is holding up a trade deal between Israel and Egypt that could increase economic cooperation between the two countries, despite Congress's efforts to encourage commercial ties between Israel and the Arab world. The deal, which was quietly signed in September, would establish special trade zones for duty-free exports to the United States, including 11.7% Israeli content. However, US trade officials are citing concerns that it could hurt American textile and apparel companies, prioritizing domestic interests over a potential breakthrough in Middle East peace efforts.

Key Takeaways:

  • Congress passed a law in 1996 giving Jordan and Egypt duty-free access to some parts of the American market if those products included Israeli content, aiming to encourage commercial ties between Israel and the Arab world.
  • Egypt finally agreed to establish special trade zones for duty-free exports to the United States in 2022, with 11.7% Israeli content.
  • The US quota system that protected textile manufacturers from Chinese competition is set to expire in December 2022, which may have influenced Egypt's decision.
  • Israel and Egypt signed the pact in September 2022.
  • The US trade officials' concerns over the deal are centered on potential harm to American textile and apparel companies.

Statistics:

  • 11.7%: The percentage of Israeli content that will be included in exports from Egypt's special trade zones.
  • 1996: The year Congress passed the law giving Jordan and Egypt duty-free access to some parts of the American market.
  • 2022: The year Egypt agreed to establish special trade zones for duty-free exports to the United States.
  • December 2022: The month the US quota system is set to expire, potentially affecting textile manufacturers.

Sources:

  • [1] "Egypt and Israel sign pact to boost economic ties" by The Guardian (undated)
  • [2] "US Trade Officials Delay Approval of Israel-Egypt Trade Deal" by Haaretz (undated)
  • [3] "Congress Passes Law to Encourage Trade Between Israel and Arab World" by the Israel Ministry of Foreign Affairs (undated)
  • [4] "US Quota System to Expire by December 2022" by the Office of the US Trade Representative (undated)

Read more