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Reference ID	Created	Released	Classification	Origin
10CAIRO284	2010-02-10 13:01	2011-01-28 00:12	UNCLASSIFIED	Embassy Cairo

VZCZCXYZ0004
RR RUEHWEB

DE RUEHEG #0284/01 0411359
ZNR UUUUU ZZH
R 101358Z FEB 10
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 0212
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHC/DEPT OF AGRICULTURE WASHINGTON DC
RUEHEG/AMEMBASSY CAIRO

UNCLAS CAIRO 000284 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD SENV EG EAGR ENRG EFIN
SUBJECT: EGYPT'S ECONOMY: FEBRUARY 10 PRESS ROUND-UP 
 
¶1. (U) The following are notable economic news stories that 
appeared over the past week in the Egyptian press: 
 
 
 
--------------------------------------------- --- 
 
Egypt Opposes AU Stance on the Copenhagen Accord 
 
--------------------------------------------- --- 
 
 
 
¶2. (U) Mona Amr, the Assistant Minister for African Affairs in 
Egypt's Ministry of Foreign Affairs, indicated that the GOE opposes 
the decision of the recent African Union summit to endorse the 
Copenhagen Accord on climate change. Amr said that Egypt, which has 
declined to associate itself with the accord, bases its opposition 
on Egypt's support for developing nations (Al Ahram, 2/3/2010). 
 
 
 
------------------------------------- 
 
Sugar "Crisis" in the Egyptian Market 
 
------------------------------------- 
 
 
 
¶3. (U) Al Ahram newspaper labeled the recent rise in sugar prices a 
"crisis" for the Egyptian market, with prices reaching LE 6 
(US$1.10) per kilogram and the expectation that they will continue 
to rise. Al Ahram quoted unnamed market analysts who blamed 
monopolistic practices for the rise in sugar prices. (Al Ahram, 
2/4/2010). 
 
 
 
--------------------------------------------- ------- 
 
Nazif and Rachid Pledge Support for Egyptian Exports 
 
--------------------------------------------- ------- 
 
 
 
¶4. (U) Minister of Trade and Industry Rachid Mohamed Rachid held a 
meeting with the heads of export councils representing several 
economic sectors to discuss the plan of the Ministry to 
significantly increase Egyptian exports within four years. Prime 
Minister Ahmed Nazif has endorsed the plan, which calls for exports 
to grow to above LE 200 billion (US$36.4 billion), nearly twice the 
current value of Egypt's exports. Nazif described export growth as 
essential to restoring Egypt's high GDP growth rates, and said that 
the GOE will provide various incentives to exporters to help them 
overcome the impacts of the global economic crisis (Al Ahram, Al 
Alam Al Youm, Al Masry Al Youm 2/4/2010, 2/3/2010). 
 
 
 
------------------------------------- 
 
Shortage of Butane Gas Prompts Outcry 
 
------------------------------------- 
 
 
 
¶5. (U) Long lines and minor clashes were reported around Egypt as a 
result of a shortage of subsidized butane gas cylinders. The 
cylinders, which are used by many Egyptians for home energy needs, 
have been selling for up to LE 60 (US$10.94) on the black market, 
well above the official price of LE 4 (US$0.73). Several Members of 
Parliament have called for an investigation into the shortage, and 
have called upon the relevant ministries to act to alleviate it. 
The Ministry of Petroleum has pledged to increase the available 
number of cylinders by 100,000, out of an estimated 27-32 million 
cylinders currently in use. The Ministry of Social Solidarity has 
called for the cylinders to be distributed under an annual coupon 
system (Al Ahram, Al Masry Al Youm, Al Shorouk, 2/3/2010, 2/4/2010, 
2/8/2010). 
 
 
 
-------------------------------------------- 
 
Report Says Poverty, Child Labor on the Rise 
 
-------------------------------------------- 
 
 
 
¶6. (U) Al Masry Al Youm reports that a special committee formed by 
the Parliament has concluded that poverty and illiteracy rates are 
rising in Egypt. The Parliamentary committee warned that per capita 
incomes and education levels are declining in Egypt, while child 
labor is on the rise (Al Masry Al Youm, 2/8/2010). 
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Viewing cable 10CAIRO284, EGYPT'S ECONOMY: FEBRUARY 10 PRESS ROUND-UP