Turkey has officially begun talks to join the European Union on one side and is also close to the deal for a free-trade agreement with Egypt.
Egypt and Turkey are expected to close the deal with the goal of doubling bilateral trade to US $1 billion within a year.
Egyptian and Turkish bilateral trade rose to $725.8 million in the first eight months of 2005 and if this trend continues, it could soon eclipse the $1 billion target the FTA talks had set.
Egypt exported $254.2 million in goods to Turkey mainly cotton, rice, crude oil, iron, cement and steel while it imported $471.6 million from Turkey, mainly ready-made garments dried vegetables, dried and fresh fruits, marble, granite, automobiles and auto parts and electrical goods.
Turkey's main exports totaled $69.46 billion last year, include garments, foodstuffs, textiles, metal products and transport equipment whereas it imported $94.5 billion in goods, mainly in machinery, chemicals and fuels.
Textiles and clothing are the largest industrial sectors, but others including automobiles and electronics are also becoming more important.
Egypt exported mainly crude oil, cotton, textiles, metal products and chemicals whereas its imports totaled $19.21 billion, mainly in machinery, foodstuffs, chemicals, wood products and fuel.
Since Egypt imports more Turkish goods than it exports to Turkey, hence it has much more to gain by an open market policy than Egypt.
Cheaper Turkish imports including ready-made garments may push local goods manufacturers out of the market and the garment industry may not be able to compete with Turkish companies in the short term.
marketing@alchempro.com
