Mubarak Jr. backs food subsidy system

The Egyptian Gazette, 28 August 2010--The son of Egypt's President said late Thursday that food subsidies were easing the burden of rising prices in an interview on state television. That boosted his public profile ahead of a 2011 presidential election. President Hosni Mubarak, in power since 1981, has not said if he will seek a new six-year term. If he does not, most Egyptians believe the ruling National Democratic Party (NDP) will name his 46-year-old son Gamal as its candidate.
Gamal Mubarak has edged into the public sphere in the past two years as head of the NDP's policy committee, touring the Arab world's most populous country to meet locals, with state media often present to document the events.
He defended the Government's record in shielding Egypt’s poor from volatile food prices and said the NDP would continue backing a system under which a large portion of the population receives subsidised consumer goods.
Speculation of a Gamal candidacy has grown given the increasing signs of backing for the Western-educated son of the President. On Thursday, a large banner was hoisted over one of the capital's busiest thoroughfares, bearing the words "In Gamal We Trust".
The state television programme cut into scenes of the younger Mubarak visiting the Northern governorate of Beheira along with several ministers as they shared a meal with citizens during the holy Muslim month of Ramadan.
Many business leaders might welcome a Gamal bid. They credit him with free-market reforms that began when his allies took cabinet portfolios in 2004 and which helped accelerate economic growth. However, critics of the reforms say they have only served to widen the gap between rich and poor in Egypt, a country of almost 80 million people, a fifth of whom live on less than a dollar a day according to the United Nations.

Egypt tenders for food oil

Egyptiam Mail, 24 August 2010--Egyptian company Meditrade has issued an international tender to purchase up to 15,000 tonnes of crude sunflower oil, the oil was for arrival during the second half of September and / or the first half of October. Any origin would be accepted. Bidding deadline was yesterday. The privately – owned Meditrade generally tenders on the global market to buy vegetable oil on behalf of Egypt’s state-owned General Authority for Supply Commodities (GASC)

30,000 tonnes of food oils sought

The Egyptian Gazette, 13 August 2010--Egypt’s state-owned food Industries Holding Company (FIHC) has issued an international tender to purchase up to 15,000 tonnes of soybean oil and 15,000 tonnes of sunflower oil. The soybean oil was for delivery in the second half of September if imported and between September 15-October 7 if from local Egyptian production. The sunflower oil was all for second half of September delivery. Bidding deadline was august 18.

Egypt gets 380m euros for power facility

The Egyptian Gazette, 13 August 2010--Egypt’s Minister of International Cooperation signed yesterday with a European Investment Bank, German Development Bank, the European commission and the French Development Agency, an agreement to finance a power project.
According to the agreement, Egypt will get 380 million eruos to fund the national High-Voltage Electric Grid, which is expected to cost 762 million euros. Egypt will contribute 232 million euros to the project, which is designed to boost the country’s socio-economic development through overhauling the national electricity network.

Inflation steady, monthly rate jumps

The Egyptian Gazette, 11 August 2010--Urban consumer inflation in Egypt was steady at 10.7 percent in the 12 months to July. The Urban consumer price index Egypt’s most closely watched indicator of price – was 151.2 versus 136.6 a year ago.
Analysts pointed to inflation of 2.3 percent in July month-on-month based on the June consumer price index of 147.1. That was the highest month-on-month rise since August 2008 and compares to a 0.7 percent rise for June. Analysts had expected a price surge in July with strong consumption in the summer and before Ramadan, the Muslim holy month when many Egyptians break their daily fast with big evening meals with family and friends.
The month-on-month inflation rate rose after a sales tax was imposed on tobacco. Tobacco prices jumped 29.2 percent in July compared to a year earlier, after 10 months on zero growth. The annual inflation rate has broadly been on a downtrend since peaking at 23.6 percent on August 2008. So far this year, it has dipped since starting 2010 at 13.6 percent in January. Some analysts have said a declining inflation rate indicates the Central Bank will keep interest rates steady in 2010.
The Central Bank was keeping its key overnight interest rates on hold for a seventh successive time, a day after the government announced economic growth had accelerated to an annual 5.9 percent. The next meeting of the Central Bank’s monetary policy committee is September 16. Growth would likely accelerate to 6.5 percent in 2010/11 as the economy rebounded from the global downturn.

Going Latin

Al-Ahram Weekly, 05-11 August 2010--A new trade pact between Egypt and Mercosur has been hailed as a one-of-a-kind breakthrough, but sceptics are not optimistic, Niveen Wahish reports.
On Tuesday, Egypt signed a free trade agreement (FTA) with Mercosur, the South American trade bloc that includes Brazil, Argentina, Uruguay and Paraguay. The bloc's associate members include Bolivia, Chile, Colombia, Ecuador and Peru. The trade pact is part of the government's strategy to boost exports to LE200 billion (around $35 billion) by 2013. The agreement grants preferential treatment for Egyptian products entering the markets of Latin America.

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Mercosur bloc signs deal with Egypt

The Egyptian Gazette, 04 August 2010--Mercosur, a South American trade bloc that groups big agricultural exporters Brazil and Argentina, signed a free trade deal with Egypt on Monday. The agreement opens up a market of 76 million consumers to the trade bloc, which also includes Paraguay and Uruguay. Mercosur’s member states also export cars and auto parts.
The trade bloc is also negotiating trade pacts with Jordan, Morocco and Gulf Cp-operation Council (GCC), which groups Gulf States including Saudi Arabia and Qatar. The deal with Egypt took six tears to wrap up.
Egypt is the world’s biggest importer of wheat and Argentina is among the leading global exporters of the grain, although it did not export wheat to the North African country last year. The North African country is a significant buyer of Argentina corn and soy products.
Egypt’s exports to Brazil, the largest economy in Latin America, totaled $87.7 million in 2009, while its imports came to $1.53 billion.

Mercosur, Egypt to sign trade deal

The Egyptian Gazette, 02 August 2010--Mercosur, a South American trade bloc that groups big agricultural exporters Brazil and Argentina, will sign a free-trade deal with Egypt next week.
 Egypt is the world’s biggest importer of wheat and Argentina is among the leading global exporters of the grain, although it did not export wheat to the North African country last year. Mercosur’s  other full members are Uruguay and Paraguay, large exporters of beef and soybeans, respectively.
Egypt is an important buyer of corn from Argentina, the world’s No 2 exporter of the grain. Egypt’s exports to Brazil, the largest economy in Latin America, totaled $87.7 million in 2009, while its imports came to $1.53 billion. Trade between the two countries covers the industrial, transportation, textiles, agriculture and fishing sectors.