|
DOORKNOCK 2008
PARTNERSHIP FOR PEACE AND PROSPERITY
AmCham Egypt DoorKnock Mission to Washington, DC
April 7-11, 2008
In a tradition dating back over a quarter of a century, the American Chamber of Commerce in Egypt held its annual DoorKnock mission to Washington, DC on April 7-11. A delegation of 28 AmCham members traveled to the US capital to lobby on behalf of the Egyptian private sector, promoting Egypt as an investment destination and trade partner of the United States. This year’s mission involved some 90 meetings with members of the US House of Representatives, Senate, executive branch and think tanks.
BY RÉHAB EL-BAKRY
Washington, DC is a very interesting place. Initially designed to shock and awe foreign delegates, it is easy to be intimidated by the surroundings. Tension is always in the air. Small groups of demonstrators march on Capitol Hill carrying placards expressing their support for one issue or another. Anti-war demonstrators calling for an immediate troop withdrawal from Iraq square off against protestors voicing support for US policy in the region. And everyone you pass in the street here seems to be lobbying someone for something – men in Armani suits convey the interests of big industry to Congress, mothers in blue jeans and t-shirts lobby to revise the national school lunch program, and on this particular day in April, Miss America pageant contestants were in town to meet members of Congress.
Let’s face it, if you want to impact US policies in one way or another, you have to start here. But because of the endless traffic of special interest groups, securing meetings with policymakers can take a lot effort and time.
Of course AmCham Egypt has grown over the last quarter century into an organization whose name carries weight in DC. Fortunate indeed, as this year’s mission included some 90 meetings with various officials in branches of the US government and other decision-makers, including meetings with 37 members of the House of Representatives, five senators, 12 with various members of the executive branch of the US government, as well as more than a dozen with strategic think tanks. Securing all these meetings was particularly challenging given the timing of the DoorKnock and the overall atmosphere in Washington.
“This is an election year, so it’s not surprising that most people are focused on the election,” explains Curt Ferguson, Coca-Cola North & West Africa president and a member of AmCham’s DoorKnock delegation. “Despite that, we were able to meet with some very instrumental decision-makers and they took the time to hear what we have to say and to ask questions, which is always a good sign.”
The message the delegates conveyed to American policymakers was simple: Egypt can offer big business opportunities for US companies, either as an investment destination or as a trade partner. “Our mission was to share with [policymakers] the economic reforms that Egypt has undertaken over the past four years and the fact that they have had tremendous results for the private sector,” he says. “For us, as Coca-Cola, we are an American company, and I was able to share my firsthand experience with the positive impact of the economic reforms on our business. Also, because we attend the meetings in groups, we can share our various experiences in our own sectors to show that these reforms are having a positive impact across the board and not just in one or two sectors.”
AmCham president and chairman of Suez Cement Group, Omar Mohanna, echoes that same sentiment. He explains that the story of Egypt’s successful economic reforms is even more important four years into the process than ever before, simply because it illustrates the sustainability of the process. “This time around, the story of Egypt’s success was even bigger and better because we have [indicators] to support the success of the economic reforms. To go to someone and tell them that we have implemented reforms is one thing, but if you tell them that the World Bank has ranked Egypt as the number one country in terms of the pace and success of reforms, that’s another thing altogether.”
A team effort
The 2008 AmCham delegation consisted of 28 members from a variety of sectors in Egypt including textiles, cement, shipping, banking, telecoms, petroleum, pharmaceuticals and manufacturing. As is tradition, the delegation was divided into smaller groups of four or five that attended different meetings and briefed the other delegates at the end of each day. The groups were comprised of AmCham members from a variety of sectors in order to round off the knowledge base of every group. Each group has a team leader, usually a veteran of DoorKnock missions, as well as a few first-timers.
One of the strongest outcomes of DoorKnock missions is the sense of teamwork they build. AmCham board member Hala El Barkouky, managing partner of Allied Business Consultants, with six DoorKnocks under her belt, says she is continually impressed with the team spirit these missions generate. “There is a strong sense of teamwork that builds up when you go on these missions,” she says. “I think this has to do with the realization of the importance of the role that we are playing in the DoorKnock as representatives of the Egyptian private sector. There is also a sense of belonging to the Chamber that we as delegates feel when we are on these missions.”
The strength of the DoorKnock comes not just from the ability of its delegates to lobby on behalf of the Egyptian private sector, but also from the strong interpersonal contacts they develop during these visits. “There is this rule in business that you should visit your client once a year simply to maintain good relations, without having a specific agenda or expecting to get specific business outcomes,” she says. “The DoorKnock is similar to these meetings because they are designed to maintain friendship with the decision-makers, as well as to exchange information and dialogue. But they are not designed as business opportunities.”
The 2008 DoorKnock was the first for Ramy Zaki, associate director of external relations at Proctor & Gamble Egypt. “I like the format with the smaller groups because it was an opportunity for us to form a camaraderie that I believe will last long beyond the mission itself,” he says. “It gave us the opportunity to know one another better and to learn about each other’s sectors. That I think was one of the main outcomes for me.”
The opportunity to meet with a variety of US decision-makers was also a high note, and impressed on him a strong understanding of how the US political system operates. “I have been to DC before but not as part of the DoorKnock delegation, and I have to admit this is the first time for me to see it this way,” he says. “It was the first time for me to see the politics [at work].”
And it was a busy season. With the run-up to the US presidential election and congressional elections, campaigning was in full swing. The week of the mission also coincided with the congressional hearings on Iraq with General David Petraeus and the US ambassador to Iraq, Ryan Crocker, testifying before members of the House and Senate on what the US’s next move should be in Iraq. The war in Iraq and its impact on the US not only preoccupies decision-makers, but the average citizen as well. Also weighing heavily on both is the state of the US economy and a looming recession.
Despite these circumstances, doors remained open to the AmCham delegates. “It’s true the people were preoccupied with the elections and that might have impacted the kind of questions that we received during the meetings, but again, it didn’t really prevent us from getting any of the meetings we wanted to get,” explains AmCham executive vice president Anis Aclimandos, president of Transcentury Associates and a veteran DoorKnock participant. “We are still a long time away from the November elections and unlike what many people think, this doesn’t mean that nothing will get done between now and then. So does it have an impact – yes, but not as much as people would expect.”
In fact, for decision-makers to make time for the AmCham delegation during this busy period is a testament to the perception of Egypt and its significance in the region. “This year, we met with more members of the House and the Senate than any other year,” says Mohanna. “We also met with many new [decision-makers] with whom we have never met before. This illustrates that there is still a strong belief in Washington that Egypt is and will remain the US’s strategic partner in the region, especially in light of the significance the region has taken on in the past few years. On the AmCham level, it means that our mission is seen as credible in a way that is different from other missions from the country to Washington.”
Setting an agenda
As AmCham’s DoorKnock delegations do not represent the point of view of any government body, sector or individual business, the agenda with which the team works is always identified before the mission. This year’s agenda was straightforward – keep Egypt in the spotlight as the United States’ most strategic partner in the Arab world. Another key point on the agenda was to deepen the understanding of US policymakers of the economic reforms that the Egyptian government is continuing to make in order to further US investment in Egypt and increase bilateral trade. Last, but not least, was putting a framework for trade negotiations on the table, whether for a full-fledged free trade agreement (FTA) or sector-by-sector agreements.
“I think that there are a few reasons why DoorKnocks continue to be important for us,” says Aclimandos. “For one thing, no one should ever underestimate the importance of having continuous ties between the members of the Egyptian private sector, represented by AmCham, and the decision-makers in the US. Over the years, there have been [members of] Congress, senators and think tanks that we have met with who continue to meet with us in differing capacities. Some of them know us and the importance of the DoorKnock mission. There are others we meet for the first time and we never meet them again. But the point is, in DC it’s always great to have that [interpersonal] contact with people.” He adds, based on his many years as a member of the delegation, that he believes members of the private sector have a type of credibility with decision-makers that members of other bodies in Egypt may or may not have.
Ferguson agrees. He points out that there is a strong realization in Washington that government officials have their own agenda to promote and that this agenda may or may not be in line with that of the private sector. So hearing from the private sector itself is a great point of strength. “This is definitely a format that works,” he states. “There are questions we’re asked that could just as easily be asked to officials, but I believe that the perspective of the private sector will always be different because we are on the receiving end of the decisions made by government. And if we tell [policymakers] in the US that we had, [for instance], this set of problems and that decisions taken by the government of Egypt have solved these problems, they are more likely to believe us.”
Also important to establishing credibility is diversity. Ehab El-Zorba, vice president of Egypt Clothing Co., and at 27 years old the youngest member of the DoorKnock team, points out that the more diverse the team is in terms of sectors, age and backgrounds, the more they bring to the table. “I think that it’s great for decision-makers to hear from people from a variety of groups,” he says. “So, for instance, having people who are young [on the team] is a great way of illustrating that there is a new generation of business professionals that is up and coming in Egypt; having entrepreneurs along with people who work for multinationals, having Americans and Egyptians – all this goes to prove how strong and diverse the business community is in Egypt.”
While the delegates found US officials and think tanks whose focus is on the Middle East region to be very much aware of the reforms Egypt has undertaken, meetings with officials whose focus is on areas of policy that do not directly involve the region were somewhat less informed. “I think this is a reflection of a few things,” says Mohanna. “First, it shows that we should be placing emphasis on increasing our presence, as members of the private sector, in the US capital. I believe that this could be done by having more than one mission during the year and this is something that we are already doing. The other thing is that this year we met with a lot of officials with whom we have never met before. This means that the people we meet with will need us to [bring them up to speed] on the changes that have been taking place in the Egyptian economy.”
A key topic discussed during the mission’s meetings was the economic reforms implemented by the Egyptian government starting with the appointment of the Nazif government in July 2004. The sweeping measures, which included tax and customs reforms, restructuring of the banking sector, increased government support for industry and export development, the reactivation of the privatization program and the deregulation of several sectors were highlighted during the meetings.
It was important, according to Zaki, to point out that the reforms continue today; they have not lost momentum. “These reforms have boosted the performance of the Egyptian economy in terms of having an average of 7-percent GDP growth for three years in a row. Investments have been continuously increasing and there is no sign of them slowing down. And again, [the message] coming from us as members of the private sector [has] a different kind of credibility than coming from anyone else.”
Egypt’s ambassador to the US, Nabil Fahmy, agrees. AmCham’s annual missions have provided invaluable insights of the situation on the ground at home during his nine years in Washington. “I have come to rely on your annual missions to provide support for our work here in DC,” he told the delegates during a breakfast meeting in Washington. “Experience has proven that your meetings are a very strong tool for promoting Egypt’s image as a business destination in the US capital. We can, as the embassy team, discuss the reforms as often as we want, but simply, it sounds different coming from you as the private sector.”
Because of this, Fahmy feels the DoorKnock is an ideal vehicle for opening economic dialogue between Egypt and the US, particularly in the absence of formal free trade talks, which were scratched off the agenda in early 2005. “There were reasons on both sides that ended these negotiations,” Fahmy explained. “But the fact still remains that if the US ever hopes to have a serious impact on the economic agenda of the region, particularly with the regional FTA, it will need an FTA with Egypt because of the country’s historic, political and economic status within the region. You simply can’t have a regional FTA without the largest country and population base in the region.”
With the possibility of an Egypt-US FTA off the table, at least in the short term, due to the upcoming presidential election and the disagreement among members of Congress over the role of FTAs in the US economy, efforts are focused on other bilateral agreements. During this year’s mission, the delegation lobbied US policymakers to expand the Qualifying Industrial Zones (QIZ) Agreement, a trade agreement signed in December 2004 that permits Egyptian factories in designated zones to export their manufactured products to the US without quotas or duties provided the goods contain a required Israeli component. The agreement has been instrumental in expanding Egypt’s textile and ready-made garment exports to the US, boosting them from $580.4 million in 2004 to $875 million in 2007.
“There has been a request submitted by Egyptian and Israeli officials to expand the QIZs to Upper Egypt as a development tool for the area,” explains El-Zorba. “During our mission, one of our priorities was to generate support among decision-makers for the approval of this application. Several congressmen and senators have [voiced] their willingness to support this application.”
El-Zorba, whose clothing firm is a beneficiary of the QIZ agreement, says one of the most interesting meetings he attended during his visit to Washington was with the president of the National Council of Textile Organizations. “This was a key meeting for me because I had the chance to explain to them firsthand the nature of our industry as well as listen to their concerns about [special trading arrangements]. The simple outcome was that they would not oppose the expansion proposal as long as guarantees are put in place to ensure that the textile industry would not make up the bulk of industries in these new zones.”
Meetings with lobby groups and think tanks are an essential component of any DoorKnock mission and their value should not be underestimated. “No matter who wins in November, the think tanks will be involved,” explains Mohanna. “So right now, it’s important for us to meet with them and highlight Egypt as the US’s strategic partner in the region. We’re the only country in the region that has the diplomatic history and is capable of dialogue with all parties in all the different conflicts in the region and this should not be underestimated.”
Hot topics
During the visit, many policymakers and think tanks emphasized the importance of Egypt’s support in creating stability in the region, particularly pertaining to Iraq, Iran and the Palestinian-Israeli conflict. Regardless of their political affiliations, Iraq was high on the political agenda, and officials called for Egypt to help bolster regional support for the war-torn country. The Iraq War is costing the US over $200 million per day. Moreover, the mounting number of casualties among US troops has placed the Iraq War front and center in the upcoming elections.
“The Middle East as a whole is going to be very high on the election agenda this year,” predicts El Barkouky. “The events of September 11 raised the public’s awareness of the region and have also impacted the policies of the US towards the region. So Iraq, Iran and the Palestinian-Israeli conflict are going to be on the list of issues this election. Moreover, the increasing price of oil is also going to place the region in the spotlight. This is why we need to be there now; because everyone has questions and concerns about the region and we are the perfect [vehicle] to provide them with answers.”
Several officials urged Egypt to become more involved in stabilizing the civil conflict in Iraq, particularly because Iraqis tend to perceive the country as having little self-interest in the matter. Moreover, as a traditional leader in the region, Egypt has the ability to rally others in the region to provide more support to Iraq. “I don’t think that it was very surprising that many people we met highlighted the need for Egypt to work with the US and other countries in the region to bring stability to Iraq,” says Ferguson. “This is a very important issue right now for the US and [officials] voiced the need for Egypt to become further engaged in dialogue that could bring stability to the country.”
As usual, the Palestinian-Israeli conflict was a hot topic. Many officials praised the way Egypt handled the Gaza border breach in early 2008, as well as the country’s continued efforts to broker peace between the Israeli and Palestinian sides. The conflict, however, appears to have been overshadowed by concern over the war in Iraq and the nuclear ambitions of Iran.
In fact, Iran was a topic of many discussions during the mission, according to Aclimandos. “Officials in the US are concerned about the possibility of Iran becoming a nuclear power. Many see this as a potential destabilizing factor in the region.”
Iran and the US have been engaged in a war of rhetoric over assertions that Tehran is working to destabilize the region by supporting Shia militants in Iraq and Lebanon, as well as other militant groups in the region. Some officials suggested that the perceived warming of relations between Egypt and Iran could open a channel of dialogue. Others voiced opposing sentiments.
The fact remains that the Middle East is an area of high interest at the moment for the US. And according to Mohanna, many in Washington were more than eager to hear about developments in the region. “They wanted to ask questions about the area and they were very interested in hearing opinions from people who live and do business in it,” he says. “That’s why there were many issues that were discussed in order for them to get a [firsthand] understanding of the way [the region works].”
Charting the course
The power of the DoorKnock mission to sway opinion favorably has some members calling for an independent group to establish a permanent presence in Washington to lobby on behalf of Egypt and the region year-round. “It simply has to be done,” says Zaki. “The missions should continue but the fact remains that other groups, countries and regions have a permanent presence in the US capital and if we want to stay on the agenda as much as they are, then we need to be heard year-round. And this cannot be done by the government alone. We need a dedicated think tank that looks after our interests and lobbies for them.”
Mohanna disagrees. He believes that it’s more effective to have delegations visit Washington than to have a permanent mission stationed there. For one thing, he says, having the same people meet with officials day-in day-out eventually loses its effectiveness. “But the fact that we go every year especially for this mission in itself sends a message of dedication to officials in DC,” he says. “We really must have something important to say if we are going halfway around the world just for these meetings.”
But there is consensus that one mission a year is simply not enough to keep Egypt on the agenda. “There is a strong belief that a single mission is not enough, especially in light of the changes that are taking place both in the region and in the US,” explains Aclimandos. “That is why during 2007, we had another mission [to Houston] during the second half of the year. Ideally, we would be able to have more than one US mission a year in order for us to stay on the agenda.”
Ferguson believes that AmCham member companies, particularly those with head offices in the US, can do more to provide these annual missions with support. For example, this year, Coca-Cola set up several meetings with officials from Atlanta, where the company’s international headquarters are. This, he argues, gives strength and reassurance to US officials. “I believe that this was a very good thing because not only were [members of Congress] and senators hearing from the Egyptian [branches] of US-based multinationals, but [we] had the head offices in their own constituencies backing us up and almost proving that being in Egypt is good business. I think that this was very strong and we should do it more often.”
As far as the agenda itself goes, Zaki believes that more business-to-business meetings should be scheduled during the mission, not as a replacement for policy meetings, but as another way of promoting bilateral US-Egypt business. “I think this would, first, revamp the look of the DoorKnock and second, it would expand our lobby role on behalf of Egyptian business. I believe that as members of the business community, we shouldn’t be heavily involved in the politics, but more in the business. This could be done through meetings with sector-specific organizations or lobbying groups, even if this means that we add a few days at the end of the mission or have another mission that does that.”
But El Barkouky says this is not the point of the DoorKnock. She argues that while more business matchmaking opportunities are warranted, they should be arranged separately. “I think that the DoorKnock in its current structure should continue, but we as AmCham need to have systematic participation in business missions to the US simply because it’s estimated that of the 250,000 US companies that export outside of the US, only 2,000 deal with Egypt. We need to do more work on business matchmaking and business missions.”
Another focus she argues that AmCham should address is the media. She says the US and Egyptian publics are “hostages” of the media and its unbalanced coverage of the relationship of the two countries. Instead, she hopes that AmCham will facilitate opportunities for media on both sides to better understand the nature of the relationship and provide more balanced coverage. This could help the public understand why policymakers in Washington have expressed so much confidence in Egypt. And how businesses in both countries stand to gain from this close relationship.
Submit
your comment
Top
|
