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LETTER FROM THE EDITOR

Arecent paper by the UN Pop-ulation Division advises that some developed countries will have to start accepting larger numbers of immigrants to maintain current standards of living. Dec-lining birth rates threaten the income tax-base - and the pensions that workforces in those countries count on for retirement.

These ideas were raised by Population Division Director Joseph Chamie at the latest session of the UN Commission on Pop-ulation and Development, which met in New York last month. "For Japan and the countries of Europe, low fertility, combined with low mortality and increased longevity, [is] resulting in smaller and older populations," read a UN statement summarizing Chamie's remarks.

In the next 50 years, the paper argues, the only alternative Europe and Japan have to population decline - and consequently an inability to support their aged populations - is "replacement migration" of young people from developing countries. The US, whose population is growing, has less to worry about, although population and re-source allocation must concern everyone.

The paper follows up on ideas discussed at the 1994 Cairo conference. Critics have objected to the Population Division's "one-dimensional approach," which advocates replacement migration for developed countries "while not considering the negative effects of an exodus - or 'brain drain' - of working-age populations on developing countries."

Even so, the implications of the paper have caught the attention of the European media. On April 22, the BBC World Ser-vice aired a discussion about labor migration and its possible consequences. Western European industry already employs immigrant labor from Eastern Europe, the Mid-dle East, Asia and Africa. However, as one guest on the program suggested, the formation of an info-tech economy could leave Europe with a huge pool of low-skilled labor - and little use for it. A more efficient strategy, argued another guest, is to free capital rather than labor, thus allowing jobs to come to would-be migrants.

AmCham Egypt's annual Doorknock mission aims to help bring US capital to Egypt. And undoubtedly, most members of last month's delegation look forward to a US-Egypt free trade agreement.

The only countries that actually have such agreements now are Canada, Mexico and Israel. Free trade - simple in theory - is complex in practice, and cannot be separated from politics. In this edition, we look at Qualifying Industrial Zones - which al-low Arab "peace partners" to take advantage of Israel's FTA - and Egypt's reluctance to use them.

Political sensitivities differ from country to country, but they're always present. Canada - the United States' first FTA partner - didn't enter the pact without serious soul-searching. And Mexico's entrance, creating the North American Free Trade Ag-reement (NAFTA) in 1994, seemed to con-firm the worst fears of free-trade bashers.

We feared that jobs would migrate south of the US border, and young job-seekers in Canada - as I was at the time - were infuriated that NAFTA freed capital but not labor. To work in the States, I would have to apply for a green card like any other foreigner. Plus, many Canadians couldn't forget that in the nineteenth century, America actively plotted our annexation - in 1812, the US even invaded us.

This is my first appearance at Business Monthly, so I had to say something about myself. I wondered if people here at Am-Cham would think it strange to have a Canadian editing the American Chamber's journal. So far, no one seems to mind. I talk a bit like an American, and two years of journalism in Cairo have taught me to write like one, too. If anyone questions me about my nationality, maybe I can say I came with the NAFTA deal.

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