VZCZCXYZ0000
RR RUEHWEB

DE RUEHEG #0418 0701418
ZNR UUUUU ZZH
R 111418Z MAR 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 1839
INFO RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS CAIRO 000418 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR USTR 
 
E.O. 12958:  N/A 
TAGS: ETRD ECON EINV PREL EG
SUBJECT:  RACHID REVIEWS UPCOMING TRIP TO WASHINGTON 
 
Sensitive but unclassified.  Please handle accordingly. 
 
¶1.  (SBU)  KEY ISSUES: 
 
-- Minister of Trade Rachid will spend March 22-25 in Washington 
with the goals of restarting a bilateral economic and trade dialogue 
and re-engaging with U.S. business. 
 
-- Rachid believes the Washington trip may be an occasion for a 
public roll-out of the recently agreed QIZ expansion to Beni Suef 
and Minya. 
 
-- The minister has asked for a range of meetings in Washington, but 
does not plan to go to the State Department or the NSC, apparently 
in deference to the recent visit of Gamal Mubarak. 
 
¶2.  (SBU) The Ambassador and Minister of Trade Rachid Rachid met 
March 8 to discuss his upcoming trip to the US, scheduled for March 
22-24.  Rachid said he understood that key economic positions in the 
new Administration have not yet been filled, so he will focus on 
restarting an economic and trade dialogue with the U.S. 
 
¶3.  (SBU) Rachid noted that another major goal for the trip is to 
re-engage US business.  He believes business has a role to play in 
the improving bilateral relationship, and thinks it is important 
that the dialogue not be just government to government, and not be 
focused just on political issues.  Egypt has business councils with 
Italy and France, for example, he said, and they play a useful role 
in broadening the discussion beyond Gaza and the Middle East peace 
process.  He commented that the American Chamber of Commerce in 
Egypt, although a very active and influential organization, does not 
have many U.S. business officials on its board.  Rachid noted that 
for example, Omar Mohanna, the current AmCham president, has no U.S. 
business interests at all.  (In 2008, Mohanna was fined $1.87 
million after being found guilty of price fixing, in a case brought 
by the Ministry of Trade.  His company, Suez Cement, was fined an 
additional $1.87 million.)  The minister said he has encouraged 
AmCham Egypt to recruit more Americans for its board, but that the 
need remains for another more U.S.-focused business group, such as 
the U.S. Egypt Business Council. 
 
¶4.  (SBU) The Ambassador also asked when the GOE might be ready to 
"roll out" the recent expansion of the QIZ in Egypt to the 
industrial zones of Beni Suef and Minya.  Rachid noted the timing of 
the original decision was awkward, during the Israeli military 
operations in Gaza, but suggested he might use the occasion of his 
upcoming visit to make a public announcement.  He also commented the 
announcement would be a good time to review the nature of the QIZ 
program in Egypt.  QIZ is an important program for Egypt, he said, 
there may be some misperception in the US about the size of the QIZs 
and their potential.  Rachid does not expect Egypt to turn into 
"another China or India," and does not expect major new investments 
in the next few years.  He believes it might be worth reminding 
interested parties in the US about the relatively small size of the 
operations in Egypt.  (According to Ministry of Trade QIZ officials, 
Egypt has been able to use the QIZ to maintain its textile exports 
to the U.S. after the end of the international textile agreement, 
but has not significantly expanded them.)  The Ambassador noted we 
are still working to verify the names of the companies covered by 
the expansion, explaining the list we received appears to have been 
somewhat out of date.  He promised to cooperate. 
 
¶5.  (SBU) COMMENT:  Last week, at the request of the Egyptian 
Embassy, FCS Counselor met with the heads of economic and commercial 
section at the Egyptian Embassy in Washington, D.C. to discuss 
Rachid's visit.  Egyptian officials confided that the Foreign 
Ministry did not want Rachid to hold any meetings at State or NSC. 
During the three day visit, Rachid hopes to meet with USTR Kirk, 
National Economic Council Chair Summers, Council of Economic 
Advisers Chair Romer, Congressional leaders including Rangel, 
McDermott, Waxman, Levin, Dodd, Baucus, Rockefeller, and Landrieu. 
 Rachid is also scheduled to meet with private sector 
representatives including heads of the National Association of 
Manufacturers, National Retail Federation, US Chamber, and the 
Center for American Progress, as well as the editorial board of 
Washington Post.  Rachid will not/not join AmCham members in their 
meetings in Washington.  However, he plans to attend a luncheon 
hosted by AmCham. 
SCOBEY