Egypt & Trade: Where does the problem lie?
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The World Economic Forum released its Global Enabling Trade Report 2014, in which Egypt ranked 97 in the world’s enabling trade index, among 138. Compared to 2012, Egypt dropped seven places, whereas in 2010, it stood at rank 76.
The index score is calculated according to market access, border administration, infrastructure and operating environment. Egypt’s scored least in border administration efficiency and transparency (Rank 109 out of 138) and operating environment (Rank 106). Domestic market access lay at rank 128, whereas foreign market access was at an astonishing rank of 39. Egypt’s infrastructure ranked 58th worldwide, with its strength at the availability and quality of transport infrastructure and the use of ICTs.
Egypt ranked as the country with the highest business costs of terrorism, in terms of its operating environment, and fourth before last for business costs of crime and violence.
But what are the country’s most problematic factors for exporting?
The biggest problem is identifying potential markets and buyers, which is followed by high cost or delays caused by domestic transportation.
Other problems include:
- Access to imported inputs at competitive prices
- Inappropriate production technology and skills
- Access to trade finance
- Rules of origin requirements abroad
- Corruption at foreign borders
- Difficulties in meeting quality/quantity requirements of buyers
- Burdensome procedures at foreign borders
- High cost or delays caused by international transportation
- Tariff barriers abroad
- Technical requirements and standards abroad
As for importing, another set of burdens exist:
- Burdensome import procedures
- Tariffs
- Crime and theft
- Corruption at the border
- High cost or delays caused by international transportation
- High cost or delays caused by domestic transportation
- Domestic technical requirements and standards
- Inappropriate telecommunications infrastructure
Image via Shutterstock.
The index score is calculated according to market access, border administration, infrastructure and operating environment. Egypt’s scored least in border administration efficiency and transparency (Rank 109 out of 138) and operating environment (Rank 106). Domestic market access lay at rank 128, whereas foreign market access was at an astonishing rank of 39. Egypt’s infrastructure ranked 58th worldwide, with its strength at the availability and quality of transport infrastructure and the use of ICTs.
Egypt ranked as the country with the highest business costs of terrorism, in terms of its operating environment, and fourth before last for business costs of crime and violence.
But what are the country’s most problematic factors for exporting?
The biggest problem is identifying potential markets and buyers, which is followed by high cost or delays caused by domestic transportation.
Other problems include:
- Access to imported inputs at competitive prices
- Inappropriate production technology and skills
- Access to trade finance
- Rules of origin requirements abroad
- Corruption at foreign borders
- Difficulties in meeting quality/quantity requirements of buyers
- Burdensome procedures at foreign borders
- High cost or delays caused by international transportation
- Tariff barriers abroad
- Technical requirements and standards abroad
As for importing, another set of burdens exist:
- Burdensome import procedures
- Tariffs
- Crime and theft
- Corruption at the border
- High cost or delays caused by international transportation
- High cost or delays caused by domestic transportation
- Domestic technical requirements and standards
- Inappropriate telecommunications infrastructure
Image via Shutterstock.