The Qualified Industrial Zones agreement (QIZ - read ‘quizz’) is an Egypt-Israel-US agreement whereby industrial goods gain duty-free access to the
When it started 4 years ago it was heavily denounced as ‘forced normalisation’ by the
Government rag Al-Ahram had a happy and upbeat article (on Oct.15th) about the prêt-a-porter industry under the QIZ. Sure, it’s a government newspaper talking about a government-sponsored agreement so you can expect all praise, but still. The numbers are there:
Nearly 700 firms spread over 15 sites, large increases in exports (30 to 34% increases in linen exports, for instance). Etc etc.
The fun part is when someone complains that some companies are functioning at ‘only’ 80% of their capacity, and when another complains about the lack of manpower (huh?? in Egypt??): “there are only 35,000 workers in the General Free Zone and we need 6000 more…”
Let’s face it: this agreement, despite its obvious politics-shoved-down-your-throat aspect, is working. And I’m in favour of anything that increases competitiveness!
* A question to readers: (Israeli ones in particular): is the QIZ even remotely an issue in
Comments are open...
5 comments:
It's not an issue--most people seem to be aware of it (at least the folks who read the newspapers and keep up on what's going on--we do have our share of ostriches who don't know what's going on outside their own city limits).
Among those who are aware of it, there is almost universal approval--anything that improves trade, improves relations, makes things "more normal" if there is such a thing between us and our neighbors, is seen as a very positive thing. The Israeli take ranges from super-liberal "wow isn't this neat, see what peace can do, we can all get along to our mutual benefit" to the more conservative, cynical, "yeah, okay, it works, now what?"
My take? I think there is an economic benefit to Israel, but more importantly, I think the benefit is in keeping the door to trade open, keeping alive the possibility of "normalization" between our countries. It opens another avenue of discussion between people who might not otherwise talk to each other. I think the biggest benefit to Israelis is psychological--yes, there are agreements with Arab states which DO work, which means it IS possible to enter into mutually beneficial agreements, so let's not give up hope for peace and progress. The devil is in the details, as they say.
Jordan also has economic cooperation zones and plans for developing water resources, which IMHO Israel needs to expedite -- sometimes there is so much defensiveness here, so much focus on internal problems, that the government puts mutually beneficial neighborhood planning on the back burner.
Did you get my email?
I'm fairly certain there is an economic benefit for Israel, but it surely wasn't the main motive behind the agreement (nor is it the main gain, clearly).
The 'psychological' aspect of the thing never crossed my mind, though.. It always seemed to me that if there was one, it would be directed towards the egyptians - "see, you can do business with the Jooz, they won't bite!"
Interesting...
Interesting blog you got here. I'd like to read something more concerning that theme.
By the way check the design I've made myself Overnight escorts
I am a US-Israeli dual citizen who lived in Israel for four years and interacted across many of the more sophisticated parts of the economic spectrum (I have my MBA from the US but also did a semester in Israel where I got to take classes from senior Israelis execs). I now live in NY and move tightly in Israeli circles here. I've almost never met someone who's heard of the QIZ, although if you explain it to them there's usually a bit of recognition. For most people it's simply a non-issue. I think there's a sense that it most benefits Egypt, and that they use the minimal Israeli input possible, so it's really not doing anything for the Israeli economy, as @aliyah06 said. More of a psychological benefit, the inverse of the one you mention: "See, you can do business with the A-rabs, they won't bite!" :-)
Actually this is a subject that I'm very very interested in (the QIZ), so I'd be happy if you'd drop me a line to discuss offline.
An Israeli economist told me that QIZ is economically useful - for a number of sectors, most notably textiles. So let's not discard the economic effect in favour of the political quite yet.
Btw - don't trust them. Those A-rabs do bite. :)
Feel free to write me if you wish to continue this discussion!
Post a Comment