Missions To The U.S.   DoorKnock-April 2008 Houston Business Mission 2007 DoorKnock-March 2007 DoorKnock- 2006-1996

AmCham Egypt Mission to Washington, D.C., March 1997

This year’s delegation carried Egypt’s success story to more American legislators, policymakers and business leaders than ever before. They got an earful, and now they’re back armed with business leads and policy recommendations.

Sitting in a plush Capitol Hill office in late February, Dr. Ahmed Shawki took one look at Mike Van Deusen and knew things in Washington had really changed.
As Shawki tells it, when he and half-a-dozen Egyptian businessmen embarked on AmCham’s first DoorKnock mission to Washington, D.C., in 1984, they literally went door-to-door begging for meetings with legislators and policymakers. Van Deusen, the charismatic chief of staff on the House International Relations Committee with a fondness for loud neckties, was one of the few who agreed to speak with them. Over the years, the AmCham delegation grew in size and clout, and senators no longer asked "Why should I meet with you?," but one thing never changed: Van Deusen’s neckwear. His canary yellow tie even became a mutual joke. So this year, when he strode in wearing a drab one, Shawki had to laugh. The Egyptian economy has changed so much that Mike Van Deusen even toned down his tie.

This wasn’t the only signal from Washington that Egypt has emerged. Just look at the schedule of the DoorKnock delegation, 39 members strong this year, as it fanned across the American capital for a week: 14 meetings with Clinton administration officials, and 68 with members of Congress and senior staff; visits to such heavyweight institutions as the World Bank, the IMF, the Nixon Center, the Washington Institute for Near East Policy, AIPAC and the Brookings Institution; a luncheon at the U.S. Chamber of Commerce; and a reception at the Tony Metropolitan Club.

American officials had plenty to say, and the message from Washington was loud and clear: Foreign aid is not assured, and Egypt’s future will grow even more dependent upon the private sector. Characteristically, members of Congress were most concerned about promoting commercial relationships at the state level and creating business opportunities for their own constituents. Legislators invited AmCham to target businesses and industries in their congressional districts and offered to arrange introductions to local chambers of commerce. Whether in Alabama medical research, North Carolina wood products or Illinois computer software, the delegation received dozens of leads. According to Judith Barnett, a senior Department of Commerce official, Egypt could even go a step farther and establish a permanent presence in the states. Individual
American states, she said, have representatives in Jerusalem to promote business between the state and Israel, and Egypt should be similarly proactive. Indeed, the official DoorKnock report, which was presented to the Egyptian government last month, flags relations between Egypt and individual states as the highest priority.

The message resounded through meetings with Clinton administration officials and policymakers as well. Egypt’s private sector is moving ahead, but Leon Fuerth, national security adviser to Vice President Gore, thinks the government is lagging behind. Meanwhile, officials at the U.S. Department of Labor told of their unsuccessful attempts to work with the Egyptian Ministry of Labor on retraining workers in newly privatized companies. The department is willing, however, to work with the private sector, and the DoorKnock report recommends nurturing this relationship.

Over and over again, U.S. officials warned that continued foreign aid to Egypt is not a sure thing. Some, like Rep. Joe Knollenberg (R-MI), thought that parity of aid for Egypt and Israel will be maintained, but that there will be changes in allocation and pressure to drop the level of aid. Rep. Sonny Callahan (R-AL) was even more blunt. Funding for OPIC and the ExIm Bank will be cut, he said, and there may not be enough support in the House of Representatives to prevent it. Meanwhile, even though the Clinton administration was said to back the Middle East Development Bank and Rep. Henry Waxman (D-CA) has pledged to promote it, the outlook remained uncertain. Likewise for the Free Trade Agreement for Egypt, though Rep. Charles Rangel (D-NY), who calls his efforts the "Sadat Bill," said he plans to push for it. The delegation fought these misgivings by reminding its hosts that Egyptian-U.S. relations are based on a three-legged stool: Egypt’s role in the peace process, Egypt’s position as a strategic partner and growing economic ties between the two nations.

Regarding Egyptian policy, the delegation faced questions about the slow pace of economic reform in certain sectors and the enforcement or lack of intellectual-property rights. In response, the delegation proposed an IPR training program, and Assistant Secretary of State Toni Verstandig offered support in obtaining cooperation from the U.S. trade representative. Foreign policy was raised as well, particularly on Capitol Hill, where queries ranged from Egypt’s role in the Hebron Agreement to the cold peace with Israel. Some members of Congress, the delegation heard, believe that Egypt was less than helpful during the Hebron negotiations and have speculated that the country should be punished accordingly. Delegation members responded vigorously and unanimously that Egypt was committed to the deal, and many contacts appeared to have come around to Egypt’s position.

Washington wasn’t the only stop on the AmCham tour. A "pioneer" mission to New York netted meetings with leaders in the ready-made garment, maritime equipment, electronics and real-estate industries. Egypt’s burgeoning capital markets were highlighted during sessions with leading financial institutions like ING Barings, Salomon Brothers and Morgan Stanley, along with the Securities & Exchange Commission and the rating firm Standard & Poor’s. The Bank of New York, the Commercial International Investment Co., EFG-Hermes and the Egyptian Advisory House teamed up at the Plaza Hotel to back "Egypt: Management of Success," a conference promoting investment in Egypt. Foreign Minister Amr Moussa delivered the keynote address, and AmCham president Shafik Gabr and U.S. ambassador to Egypt Edward S. Walker, Jr., were among the featured speakers.

The DoorKnock mission has come a long way since 1984. Thirteen years later, delegation chairman Shawki and his team are no longer begging for meetings. Everywhere, they say, access was excellent and receptions were positive. The MENA conference, the recent investment-grade rating from Standard & Poor’s and ongoing economic reforms have certainly helped put Egypt on the map. "The economic story is getting across," says Geoffrey Cardinal, chairman and managing director of Mobil Oil Egypt and a DoorKnock team leader. "No question." It seems that more has changed than Van Deusen’s yellow tie.

Conclusion

• Egypt is becoming a player among newly emerging markets and its economic message is getting through, but American political and business leaders still want to see an overall vision of reform and a time frame for action articulated and scheduled
  
• Recent events in the region have focused attention on political issues, which is detrimental to luring investment, and Egypt still has much to do to promote its successes and comparative advantages for business. The private sector must play a vital role
  
• A number of strong voices in Congress support continued aid funding, but the future of foreign aid is not assured. At the same time, the outlook for the Free Trade Agreement and Middle East Development Bank was not as encouraging as had been hoped
  

Recommendations

• The U.S. government may no longer focus its foreign-relations energies on the Middle East, so it is even more urgent for the government of Egypt to take a leadership role
  
• The government of Egypt should pursue a strategy of engagement with U.S. businesses on the state level and open the way for American companies to invest here. This is especially critical because the future of foreign aid is uncertain
  
• The government should launch a comprehensive appeal to highlight the social benefits of aid programs and their positive impact on regional security and the U.S. economy
  
• Lax enforcement of pharmaceutical patents and intellectual property rights laws discourage potential investors, so the government should work with U.S. agencies to initiate enforcement and training programs. The U.S. State Department has pledged to help establish a cooperative team with the U.S. trade representative and the Egyptian government
  
• Egypt’s political and business leaders should engage American think-tanks, universities, journalists and business organizations to better promote the country. Officials at the U.S. Information Agency were receptive and enthusiastic to the idea of a media exchange program, and a special endowment fund has already been discussed

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