Egyptians’ anti-Israel fervor could cost them tens of thousands of jobs. Israel can get along without trade to Egypt, says analyst. Tzvi Ben Gedalyahu – Israel National News
Egyptians’ anti-Israel fervor could cost them tens of thousands of jobs. Israel can get along without trade to Egypt, according to an Israeli business information service. “I believe that most Israeli companies would survive even if trade with Egypt comes to a complete halt,” said Eyal Yanai, CEO of BDI Coface, who was quoted by Globes. The firm is run by the international risk rating agency Coface. However, Egypt stands to lose approximately $1 billion in income and 70,000 jobs if it answers to opposition calls for a cut in diplomatic and trade relations with Israel. The jobs would be lost to workers of Israeli-Egyptian Qualifying Industrial Zones (QIZs), which, in order to promote good relations between the two countries, allow Egypt to export goods to the United States duty-free as long as the product contains at least 10 percent of input from Israel. Israeli exported to Egypt only $148 million in 2010, mainly chemicals, fertilizers, plastics, paper and carton, and cloth. The amount is a tiny fraction of Israel’s multi-billion export industry. Natural gas accounted for most of Israel’s $355 million imports last year. One of the complaints of Egyptians against the Mubarak regime was the agreement for exports of natural gas, which they claimed was sold at a lower than market price. Israel would face energy problems in the short run if the gas deal were cancelled, but its recent mammoth offshore gas discoveries are projected to turn Israel into an energy exporter in three years. Egypt also may face expensive lawsuits if it cancels the export agreement.
