|
Egypt FOREIGN TRADE
From 1840 to 1930, Egypt had a free trade system, based on the
conventions that were imposed by the European powers. The
conventions limited tariffs to 5 percent--later 8 percent--on most
imported goods. This system constituted a serious obstacle to the
country's industrialization. In 1930 Egyptian authorities, in their
quest to establish an industrial base, were able to determine their
own import duty levels, setting them at 6 to 8 percent for raw
materials and up to 15 percent for manufactured goods. Another step
toward more independent decision making in the foreign trade domain
occurred in 1947 when the government decided to leave the sterling
standard and move away from trade with Britain.
As with other aspects of the economy, foreign trade came under
government control gradually in the 1950s and then decisively in
1961. From that year until Sadat's infitah, all exports,
imports, prices, and payments were handled by public organizations
and enterprises. The government, however, did not have an entirely
free hand in running foreign trade. It had to operate within the
constraints of domestic supply and demand and under the compromises
reached with bilateral trading partners. The private sector also
could still export fruit and vegetables and a few other items.
The state monopoly on trade was eased in the 1970s. Initially,
private firms were permitted to import some commodities under
particular conditions. Then, in 1976 the government holding company
that had controlled foreign trade was abolished, and the private
sector was able to trade in most goods, with a few exceptions, such
as cotton. The government, especially under Mubarak, offered
investment incentives that included fewer restrictions on imports
and exports of commodities by the private sector. The government
also extended the multirate exchange system, in part to facilitate
foreign trade transactions. But the multiple exchange system
created statistical difficulties, and foreign trade accounts could
be more consistently examined if expressed in dollars or Special Drawing Rights
(SDRs--see Glossary) of the IMF.
Data as of December 1990
|
