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Anchoring Reform with a US-Egypt Free Trade Agreement

Author

Listed:
  • Robert Z. Lawrence

    (Peterson Institute for International Economics)

  • Ahmed Galal

Abstract

The relationship between the United States and the Muslim/Arab world has deteriorated since September 11, 2001. The United States is widely perceived as targeting Arab nations for their oil, especially in the wake of the war in Iraq. Measures are needed on both sides to build a more peaceful, prosperous Middle East. A free trade agreement with Egypt could be an instrument toward achieving this goal. If the United States were to select its FTA partners based on relative political importance in their regions, Egypt would top the list among Arab states. This study considers the key economic and political characteristics of Egypt as a potential FTA partner. It examines the benefits and challenges in pursuing bilateral negotiations with Egypt, examines the Bush proposal for a regional arrangement, and assesses the impact of a prospective FTA on other trading partners, on the Middle East/Arab world, and on the multilateral trading system. If an FTA with Egypt materializes, the gains can be substantial to all parties involved.

Suggested Citation

  • Robert Z. Lawrence & Ahmed Galal, 2005. "Anchoring Reform with a US-Egypt Free Trade Agreement," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa74.
  • Handle: RePEc:iie:ppress:pa74
    Note: Policy Analyses in International Economics 74
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    Cited by:

    1. Lawrence, Robert Z., 2006. "Recent US Free Trade Initiatives in the Middle East: Opportunities but No Guarantees," Working Paper Series rwp06-050, Harvard University, John F. Kennedy School of Government.
    2. Dan Magder, 2005. "Egypt after the Multi-Fiber Arrangement: Global Apparel and Textile Supply Chains as a Route for Industrial Upgrading," Working Paper Series WP05-8, Peterson Institute for International Economics.
    3. Anja Zorob, 2007. "The Potential of Regional Integration Agreements (RIAs) in Enhancing the Credibility of Reform: The Case of the Syrian-European Association Agreement," GIGA Working Paper Series 51, GIGA German Institute of Global and Area Studies.

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