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Egyptian demonstrators burning the Israeli flag (library photo) |
The end of the year 2004 has witnessed the beginning of a new era defining relations between Egypt and Israel. While Egyptian citizens generally consider Israel as a dangerous enemy, the Egyptian government has taken steps to warm relations with its neighbor. A sign of cooperation between the two countries was highlighted on December 5, 2004 when Egypt returned an imprisoned Israeli spy-Azzam Azzam, who had been in an Egyptian prison since 1996-in exchange for six Egyptian students arrested in Israel several months ago on suspicion of attempting to commit terrorist attacks.
Dr. Gamal Abdel Gawwad-member of the ruling National Democratic Party’s Policies Committee and head of the public opinion department of Al-Ahram Center for Political and Strategic Studies-said that Egypt, among other Arab countries, should accommodate with the new world system. “Today the world is unipolar and is ruled by the market economy,” he said, adding that coping with today’s world includes making real peace with Israel.
Al-Naggar sees the agreement as the worst thing that has happened to Egypt since it signed the Camp David peace agreement in 1979.
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Warmed relations between Egypt and Israel were confirmed on December 14, when the Qualified Industrial Zones (QIZ) agreement was signed by Egyptian Industry and Foreign Trade Minister Muhammad Rashid Muhammad and his Israeli counterpart, Ehud Olmert, in the presence of US Trade Representative Robert Zoellick.
The agreement basically allows for Egyptian textile products to enter US markets free of customs and duties, thus giving them a competitive edge, on condition that 11.7% of the goods are manufactured in Israel. Three zones have been chosen-Greater Cairo, Alexandria, and the Suez Canal zone.
The QIZ program was established by the US in 1996 to encourage economic cooperation and closer ties between Israel and QIZ partners. Jordan entered the program way before Egypt, and in 1999, the US designated three qualified industrial zones in Jordan. According to Muhammad Rashid Muhammad, the successful experience of Jordan is what pushed Egypt to consider the protocol.
On the other hand, Essam Al-Aryan, a leading member of the Muslim Brotherhood, insisted that the agreement with Jordan did not boost the Jordanian economy, and that the protocol mainly served the Israelis. This, to him, was the first reason for taking a stance against the protocol.
“Regardless, economists have confirmed that the implementation of the GATT in the coming few days would have served the same purpose,” Al-Aryan said. “What Egypt needs to do is build its competitive potential.”
“A Political Agreement”
All opponents believe that the agreement has a political core. “Regardless of its economic framework, it is a political agreement,” Refaat Al-Saeed, head of the opposition Tagammu Party, said. “The government justifies it because of our retarded economic position. They are the ones who have created an economic crisis and now they are selling us by exhausting our economy further, and by taking serious steps to normalize relations with Israel, our enemy.”
“We will end up like Palestine.”
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Al-Aryan also sees a political connotation to the program. “This agreement allows Israel and the US to have influence in the region. The implications, therefore, are a weakened Egyptian role in the region and the deterioration of Egyptian sovereignty.”
Ahmed Al-Sayed Al-Naggar, senior economic reporter, sees the agreement as the worst thing that has happened to Egypt since it signed the Camp David peace agreement in 1979. “There is a reason for boycotting Israel,” he said. “Arab countries and Egypt found that normalization depended on several issues, including the independence of all Palestinian territories, the establishment of a Palestinian state with Jerusalem as its capital, and creating a region void of weapons of mass destruction.”
People on the streets of Cairo also feel resentment towards the agreement. “We should not contribute to anything that would benefit Israel,” Adel Hosny said. “We have been fighting Israel all our lives. Allowing them to enter our economy reminds me of the beginning of the crisis in Palestine,” said Mohammad Awad. “We will end up like Palestine,” he added.
A Step Towards Peace and Stability
Supporters of the protocol confirm that the Egyptian textile industry will benefit in both the short and long runs. They also deny the involvement of any political implications. Some supporters believe that the protocol is a huge step towards peace and stability in the region. “This is a step for Egypt’s interest, towards peace, and in Palestine’s interest,” Aly Salem, a famous Egyptian playwright, said. For him, creating mutual interests between countries in the region, including Israel, will create stability and will end the threat of war.
Dr. Abdel Gawwad did not deny that the QIZ program will benefit Israel, but he insisted that Egypt would definitely benefit. “This is an economic program, not a political one,” he commented.
“We have been fighting Israel all our lives.”
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In a statement made to the Shura Council on December 25, 2004, the minister of industry and foreign trade insisted that entering this program was the best choice Egypt had with the opening of all markets starting 2005.
In response to fears of this agreement being a compromise of Egyptian integrity to its Israeli enemy, he confirmed that the protocol did not change or affect the special relations Egypt has with Israel. “Since the peace treaty between Egypt and Israel, there has been trade between the two countries. The size of trade between us reached $50 million in the year 2003,” he said, addressing Shura Council members. “There is no way that this protocol has pushed Egypt to form new trade relations with Israel.”
An Emotional Issue
Some believe that entering this protocol was a result of US pressure on Egypt to normalize relations with Israel, especially that the presidential referendum in Egypt will be held in 2005. The minister, however, insisted that the only pressure Egypt faced was its own interests. “Two Hundred and Thirty One factories employing nearly 162 thousand laborers will benefit from this protocol,” he said, asserting that entering the program saved the Egyptian textile industry from an intensive competition that will start in 2005.
Ending his statement, Muhammad pointed out that he understands that the issue is an emotional one, but he calls upon the political elite to overcome their emotions for the sake of the Egyptian citizen.
For more than half a century, the Egyptian state has presented Israel to the Egyptian people as “the demon.” Many believe that this was an intentional policy aimed at diverting the attention of Egyptians from domestic issues. Questions are now being raised as to whether these serious steps to warm relations with Israel are signs of serious reforms within Egypt, especially that the “demon” is now becoming a friend.
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