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VIEWPOINT
TIME FOR FORESIGHT ON FREE TRADE
That the free exchange of goods and services leads to greater wealth is an enshrined component of economic thought. But despite progress in recent decades, the gap between theory and practice regarding free trade remains expansive – fully liberalized trade is still a long way off and protectionism continues to rear its ugly head.
Although the benefits of liberalized trade are generally accepted, there is often a temptation during difficult times for policymakers to shy away from hard choices in order to satisfy short-term political imperatives at the expense of long-term prosperity.
Unfortunately, the current global economic situation has created one of these moments – a potential stumbling block on the path to increasingly free global trade. Progress on the Doha Development Round of World Trade Organization (WTO) negotiations has been halting, and protectionism, in many ways, remains a stubborn obstacle.
We must not slide backward when the road forward holds so much promise. In fact, given the current rough economic environment, further progress toward instituting free trade policies globally – hence helping to boost trade and job creation – is an even more critical goal.
In this context, pushing for a successful completion of the Doha Round by the end of 2010 is a matter of enormous importance.
As one of the leading private sector organizations in Egypt, AmCham has labored tirelessly to advance the cause of free trade over the years. Faced with the current global situation, the Chamber must continue to strive to advance these ideals – and indeed we have.
Through the Trade-Related Assistance Center (TRAC), the Chamber has worked to inform both its membership and the Egyptian business community at large about the benefits of liberalizing trade. The recent decision to continue support for the center following the conclusion of its USAID funding is indicative of the importance we attach to this issue.
By pursuing this educational strategy, the Chamber has worked to create a more widespread understanding of the tangible benefits and advantages that free trade offers for both Egyptians and our trading partners. In continuing to spread awareness about the beneficial results of further reducing trade barriers, the private sector here in Egypt should work to increasingly engage its counterparts overseas on these issues.
Over the years, the Chamber has facilitated the creation of an enormous network of business-to-business contacts between Egypt and the US. This foundation can be used to drive greater private sector pressure on policymakers to further reduce trade barriers.
The spread of information on the benefits of liberalizing trade is a fundamental component of this effort, but the Chamber must also encourage its members to urge their business partners overseas – particularly in the United States, but also around the globe – to bring the appropriate pressure to bear on the relevant policymakers.
The prosperity of future generations will be determined by today’s decisions. Foresight must win out over expediency, and we have a role to play in making sure that it does.
M. GAMAL MOHARAM
President, AmCham Egypt
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