Egypt Looks Forward to Arab Industrial Integration

The Egyptian Ministers of Industry, Supply and Finance during the inauguration of 13th Kuwait Week Exhibition in Egypt on Tuesday, December 20, 2022. (Asharq Al-Awsat) 
The Egyptian Ministers of Industry, Supply and Finance during the inauguration of 13th Kuwait Week Exhibition in Egypt on Tuesday, December 20, 2022. (Asharq Al-Awsat) 
TT
20

Egypt Looks Forward to Arab Industrial Integration

The Egyptian Ministers of Industry, Supply and Finance during the inauguration of 13th Kuwait Week Exhibition in Egypt on Tuesday, December 20, 2022. (Asharq Al-Awsat) 
The Egyptian Ministers of Industry, Supply and Finance during the inauguration of 13th Kuwait Week Exhibition in Egypt on Tuesday, December 20, 2022. (Asharq Al-Awsat) 

Egypt’s Minister of Trade and Industry Ahmed Samir inaugurated on Tuesday the 13th Kuwait Week Exhibition in Cairo. 

More than 60 major Egyptian and Kuwaiti companies have taken part in the two-day event, which is held under the theme “Kuwait in Egypt” and organized by the Kuwaiti embassy in Cairo and Jabriya Exhibition Group.

Ministers of supply, finance, civil aviation, immigration and public business sector also attended the opening ceremony.

Samir said Cairo is keen to bolster economic cooperation and integration among Arab states, which would contribute to achieving food security and launching an industrial system based on exchanging expertise, technologies, and production inputs to reach the level of Arab industrial integration.

“Egypt and Kuwait enjoy strong economic relations at the bilateral and multilateral levels, in line with the Greater Arab Free Trade Area (GAFTA) agreement,” Samir said, noting that the two countries also play an important role within the joint Arab action system.

He pointed to the investment opportunities available in Egypt for Kuwait’s business community in various productive and service sectors to provide the needs of the Egyptian market and export to foreign markets,

Samir indicated that the products manufactured in Egypt have free access to many markets and major economic blocs across the world thanks to the preferential free trade agreements signed between Egypt and these countries and blocs.

He said that the event represents an economic bridge that helps boost bilateral economic cooperation in various fields and at different levels.

“Both governments are keen to take advantage of the great potentials and capabilities enjoyed by Egypt and Kuwait and translate them into tangible cooperation projects that serve their people’s interests.”

He underlined the common visions between Kuwaiti and Egyptian officials that stress the importance of strengthening joint efforts to address the negative repercussions of the current global economic crisis resulting from the coronavirus pandemic and the Russian-Ukrainian crisis.

The volume of trade exchange between Egypt and Kuwait amounted to about $306 million in 2021, compared to about $252 million in 2020, up 21.4%.

Meanwhile, the volume of trade exchange between the two countries amounted to about $401 million during the first 11 months of 2022.

Kuwait's Ambassador to Egypt Ghanim al-Ghanim, for his part, said holding the event in Cairo underscored the importance of boosting joint cooperation in various fields and at various levels.

He said the event is an expo of Kuwaiti and Egyptian industry, trade, investment, banking, medicine, tourism, media, culture and communication businesses and government bodies.



Dollar Tumbles as Investors Seek Safe Havens after US Tariffs

US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
TT
20

Dollar Tumbles as Investors Seek Safe Havens after US Tariffs

US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar weakened broadly on Thursday, while the euro rallied after President Donald Trump announced harsher-than-expected tariffs on US trading partners, unsettling markets as investors flocked to safe havens such as the yen and Swiss franc.

The highly anticipated tariff announcement sent shockwaves through markets, with global stocks sinking and investors scrambling to the safety of bonds as well as gold.

Trump said he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country's biggest trading partners.

The new levies ratchet up a trade war that Trump kicked off on his return to the White House, rattling markets as fears grow that a full-blown trade war could trigger a sharp global economic slowdown and fuel inflation, Reuters reported.

The dollar index, which measures the US currency against six others, fell 1.6% to 102.03, its lowest since early October.

The euro, the largest component in the index, gained 1.5% to a six-month high of $1.1021.

Trump has already imposed tariffs on aluminium, steel and autos, and has increased duties on all goods from China.

"Eye-watering tariffs on a country-by-country basis scream 'negotiation tactic', which will keep markets on edge for the foreseeable future," said Adam Hetts, global head of multi-asset and portfolio manager at Janus Henderson Investors.

The risk-sensitive Australian dollar added 0.56% to $0.63365, while the New Zealand dollar climbed 0.9% to $0.5796.

The yen strengthened to a three-week high against the dollar and was last up 1.7% at 146.76 per dollar, while the Swiss franc touched its strongest level in five months at 0.86555 per dollar.

"Negotiations are now going to be front of mind. This is probably the other big part of why we're seeing some of these currencies outperform," said Nicholas Rees, Head Of Macro Research at Monex Europe.

"It's very difficult actually to see how other countries make concessions that would encourage the US to lift these tariffs. And I think that's a big underpriced risk."

Investors are worried that some US trading partners could retaliate with measures of their own, leading to higher prices.

EU chief Ursula von der Leyen described the tariffs as a major blow to the world economy and said the 27-member bloc was prepared to respond with countermeasures if talks with Washington failed.

Worries about a global trade war have intensified since Trump stepped into the White House in January, combining with a slew of weaker-than-expected US data to stoke recession fears and undermine the dollar.

The dollar index is down more than 5.7% this year.

"These tariffs have certainly significantly increased the risks to the downside for global growth, so on balance we think that will eventually start to become more supportive again for the dollar," said Lee Hardman, senior currency analyst at MUFG.

In Asia currencies, China's onshore yuan slid to its weakest level against the dollar since February 13. China's offshore yuan also hit a two-month low.

The Vietnamese dong slumped to a record low.

Elsewhere, the Mexican peso and Canadian dollar strengthened.

Canada and Mexico, the two largest US trading partners, already face 25% tariffs on many goods and will not face additional levies from Wednesday's announcement.