AmCham held its 24th Annual General Meeting on May 31 with keynote speaker Francis Ricciardone, the US ambassador to Egypt, who highlighted the different aspects of Egypt-US relations and the progress of Egypt’s reforms.

AmCham executive director Hisham Fahmy began the event by reflecting on AmCham Egypt’s 24 years of services to its members and the Egyptian business community. He said the coming year, with AmCham marking its quarter-century mark, would undoubtedly be a time to reflect on how the dynamics of Egyptian society, economy and politics have evolved.

Following Fahmy’s brief introduction, Tarek Mansour, country senior partner of Mansour & Co. PricewaterhouseCoopers, gave an overview of AmCham’s Financial Statement, pointing out that not only were all the finances in great shape, but the year ended with a healthy surplus. He explained that this was particularly significant as USAID’s financial support for AmCham ended in 2004.

With the finances in order, AmCham president Taher Helmy gave an overview of the achievements that took place over the past 12 months, highlighting the impressive list of guest speakers that have shared their insight with members throughout the year. AmCham reached a new milestone with more than 1,200 active members and has expanded with the establishment of the Trade Related Assistance Center (TRAC), which will provide the local business community with accurate, up-to-date information about the trade potential for Egyptian manufacturers and industry. Helmy also related the success of the annual DoorKnock mission to Washington DC.

Upon taking the podium, Ricciardone said he was particularly excited to speak to the 500 local business leaders attending this AmCham luncheon because he would be traveling to Washington in the coming few hours. “I will follow the example there set by intrepid AmCham DoorKnock members and will do a little door knocking myself,” he said. “And perhaps even a little door slamming.”

Ricciardone reflected on his first nine months as US ambassador. He said that while Egypt has undergone several economic, social and political changes over the years, he is particularly glad to know that the warmth, generosity and hospitality that he had come to associate with its people during his two previous assignments in the country have not changed. Another thing that has not changed is the significant and strategic role that Egypt has and will continue to play in the Middle East. “The changes that you are working on here in trade and investment, democracy and education are going to set the new standard for others across the Arab world. You are the example,” he said.

The Egyptian cabinet and business community have a new mindset, one that indicates that Egypt is open for business, competition, challenges, growth and change, he said in reference to banners placed during the World Economic Forum (WEF) conference in Sharm Al Sheikh in May. “I have found a dynamism and energy among Egyptians, in the private sector and in the government, which are just starting to be released through the process of reforms.”

However, negative headlines, which only reflect a certain aspect of reality in Egypt, often overshadow the good aspects of change unfolding in the country. “Unfortunately we are seeing some serious resistance to reforms that favor Egypt’s opening to competition and change and challenge and growth, as proclaimed on those banners in Sharm, and as reaffirmed in the speeches there at Sharm, and back here in Cairo, by Prime Minister [Ahmed] Nazif and by President Hosni Mubarak himself,” he said. “And I find that the very fact that we are seeing serious resistance to reforms tells me that the process has become meaningful enough to provoke such reaction from some who may fear change.”

Ricciardone pointed out that while change is inevitable, progress is not. Yet in the case of Egypt, he is confident that “both political and economic reform ultimately will prevail in Egypt – simply because it must prevail. The take-home message that I’ll offer today may be as mundane as it is important, and that is that relations between the US and Egypt are a strategic asset to both partners, and those relations are solidly on track.”

To illustrate his argument, Ricciardone pointed out that since he arrived in Egypt nine months ago, a number of high-profile US officials have visited, including: Vice President Dick Cheney, four cabinet members, three agency chiefs, 29 members of Congress, countless important executive branch officers, congressional staffers and distinguished private American educators, artists and scientists. He said the US and Egypt have a long history of cooperation and are committed to the common goals of peace, democracy and prosperity. “ Egypt and America have worked together for three decades to bring peace to all the Middle East,” he said. “And we remain as resolute as ever, as new challenges and opportunities emerge.”

To illustrate his point, he referred to the meeting between Israeli foreign minister Tzipi Livni and Palestinian Authority president Mahmoud Abbas, which took place during the WEF meeting in Sharm Al Sheikh in May. It was the first meeting between the two sides in 11 months. “Who else in this region could bring together these historic enemies as prospective partners for peace? Nobody – only Egypt could do this.”

On the democracy front, Ricciardone pointed out that the meetings that took place during the WEF conference focused the world’s attention on the challenges associated with building democracy in Egypt and the region as a whole. Quoting in Arabic excerpts from Mubarak’s opening speech at the WEF conference, Ricciardone explained that the commitment to democratic core values on the part of the Egyptian government is one the US both applauds and supports. “The Middle East is passing through a critical period on the path to economic and social reform and we will complete the crucial economic and political reforms in Egypt based on a gradual approach that ensures sustainability... Pluralism and democratic practices are necessary to strengthening collective peace and security,” he quoted Mubarak as saying.

The ambassador pointed out that Mubarak’s reform agenda includes: “strengthening the electoral systems and political parties, strengthening the judiciary and its independence; replacing the emergency law with a modern counter-terrorism statute that also protects individual freedoms; protecting and expanding freedom of speech; empowering local councils and decentralizing governance; limiting the state’s authority to hold people without charge; and shifting more authority and responsibility to the parliament.”

He stressed that this is not the US administration’s program for Egypt, it is “the program laid out by the president, by the prime minister, by the Hizb Al Watani [National Democratic Party] – a program developed by Egyptians for Egyptians. America supports and encourages not only the Government of Egypt, but also those independent forces and voices of opposition who champion these goals.”

In terms of prosperity, Ricciardone pointed out that there is no doubt that the Egyptian government has made strides towards securing greater prosperity for its people. He said that Egypt has seized the opportunity for constructive economic reform and made “painstaking” reforms since the appointment of the Nazif cabinet in July 2004. He enumerated some of the government’s achievements, including cutting income taxes, tackling subsidies while protecting Egypt’s most vulnerable citizens, increasing the transparency of the budget, invigorating its privatization program, overhauling the management of the Central Bank and stabilizing the Egyptian pound.

Ricciardone used the latest US Department of Commerce statistics to illustrate. He pointed out that US imports from Egypt rose 57 percent last year, while American exports to Egypt rose just 2 percent. He said new American investment in Egypt increased 16 percent in 2005, reaching $764 million – this is on top of existing American investments that totaled $3 billion in 2004.

Quoting Egyptian government statistics, he pointed out that Egypt’s qualifying industrial zones (QIZs) have increased the country’s exports of textiles and garments to the US. “In just three months, we reached $118 million worth of textile and apparel exports to the United States whereas last year in six months we reached $288 million,” he said. “We’re going at double the [pace] of last year. Egyptian officials estimate that the QIZ agreement not only saved the jobs of 150,000 private sector textile workers, but also could create an additional 250,000 jobs with a boost in exports to the United States by a number of £E 4 billion – almost $700 million by 2010.”

Meanwhile, Ricciardone explained, USAID has provided more than $1 billion in local-currency loans to over 250,000 micro entrepreneurs in Egypt. Its $200 million annual Private Sector Commodity Import Program has provided over 1,700 of Egypt’s most dynamic companies with access to US equipment and expertise, which he said would be used to continue the increase in trade and investment.

In conclusion, the ambassador pointed out that if everyone keeps an open mind, Egypt will achieve its goals. “No one is more innovative, more open-minded, than the members of the American Chamber of Commerce in Egypt. I salute you. And I encourage you to make Egypt ever more: Open for Business; Open for Competition; Open for Challenge; Open for Growth; and especially, Open for Change.”