Kurtzer speaks in advance of DoorKnock

U.S. Ambassador Daniel Kurtzer, who has appeared several times as a distinguished guest speaker at AmCham Egypt events, opened his latest speech joking that he would "try to get it right this time." The ambassador was addressing a March luncheon meeting held at the Semiramis Inter-Continental Hotel as AmCham's DoorKnock 2001 delegation prepared for its trip to Washington, D.C.

While Kurtzer praised AmCham for its role in supporting Egyptian-U.S. business relations, he also stressed the importance of cultural relations between the two countries. In his three years as ambassador to Cairo, Kurtzer has stressed that Egyptian-American relations rest on four pillars: one military, one political, one economic, and one cultural. "The foundation of each of those pillars remains rock-solid," he said. "But neither of us is satisfied with simply remaining where we've been. We can and should do more."

In the economic sphere, Kurtzer noted, the last decade has been a good one. Egypt's inflation and budget deficit have fallen from around 20 percent of GDP at the start of the 1990s to "low digits" today. However, in terms of improving the policy environment, the picture is not so clear.

Turning to a key issue on AmCham's DoorKnock agenda, Kurtzer considered the arguments for and against an Egyptian-U.S. Free Trade Agreement. "Some argue that an FTA is necessary - that it will lead Egypt to take the necessary reform measures," he noted. But given that the new Bush administration in Washington is amenable to "fast-track" promotion of trade with key partners, Kurtzer argued, "Egypt should take the initiative to reform in advance of an FTA."

In particular, steps must be taken to improve protection of intellectual-property rights, reduce customs delays and red tape, overhaul the tax system, speed up the judicial system and move ahead with sales of state assets. "Privatization is seen worldwide as an indication of Egypt's seriousness," the ambassador said. "You need a high-profile privatization in the coming six months, and you need privatization of the financial industry in the next two years. Recognizing Egypt's need to attract foreign companies, Kurtzer argued that "the best ad for FDI is to solve the problems of current investors."

Turning next to political affairs, Kurtzer noted that "all parties in the region - along with the U.S. - are reviewing where they stand." Highlighting UN Resolutions 242 and 338 as "the bases for making peace," he added that "Madrid, Oslo and other agreements remain valid." Not only violence but also economic pressures are incompatible with negotiations, Kurtzer said, making an implicit criticism of recent Israeli actions. As an aside "between friends," however, he also expressed concern about recurring expressions of anti-American and anti-Jewish sentiment in the Egyptian media.

Turning to Iraq, Kurtzer emphasized that UN sanctions have contained the Iraqi regime's aggression. Unfortunately, though, "sanctions have become a tool for Saddam Hussein to use against his own people." Yet the need to target weapons of mass destruction remains.

In closing, the ambassador cited U.S. Secretary of State Colin Powell's adage that "perpetual optimism can be a force multiplier" and urged AmCham members to be optimistic about the DoorKnock mission. Returning to economic issues in the question period that followed, Kurtzer reminded the DoorKnock delegates in the audience: "You have a story to tell, and the numbers don't look all that bad."

The luncheon was followed by a closed meeting between U.S. embassy officials and the DoorKnock team.

Top