BDI: 70,000 Egyptians could lose jobs over poor Israeli relations

BDI Coface says that deteriorating relations with Israel could cost Egypt $1 billion dollars and 70,000 jobs.

BDI says, "Israeli-Egyptian trade is fairly small." Israeli exports to Egypt totaled $148 million in 2010, mainly chemicals for the textile industry, fertilizers, plastics, paper and carton, and cloth. Israeli imports totaled $355 million, 75% of which was natural gas.

BDI adds that Israeli exports to Egypt in January-July fell 18% from the corresponding months of 2010 to $78 million, and imports fell 16% to $137 million.

BDI says that Egypt is vulnerable to the 2004 qualified industrial zones (QIZ) agreement with Israel. The agreement gives Egyptian duty-free exports to the US of final products that include 10.5% Israeli inputs.

Egyptian exports under the QIZ program totaled $1 billion in 2010, and QIZ businesses employed 70,000 people.

BDI co-CEO Eyal Yanai saus, "I believe that most Israeli companies would survive even if trade with Egypt comes to a complete halt.

However, the Egyptian demonstrators who are trying by every means to end diplomatic and economic ties with Israel apparently don’t know about the loss of $1 billion income and the addition of 70,000 people to the unemployment lines, not to mention the loss of hundreds of millions of dollars in direct trade between Israel and Egypt."