Cairo is nervous about the prospect of dropping import tariffs on industrial exports from the EU, although the agreement specifies lengthy transitional periods to allow Egyptian industry to adapt. The EU enjoys an annual trade surplus with Egypt of more than euro 5.5 billion and the gap is expected to widen during the next few years. Ireland's trade surplus with the country, which amounted to euro 240 million in 1999, is almost entirely due to beef exports. Egypt suspended imports of Irish beef last November in response to the BSE crisis, although the ban will be reviewed in June. Irish beef exporters were in Cairo for a food fair last week in an attempt to maintain contacts.
Irish officials are in regular dialogue with the Egyptian authorities.
Alternative sources of supply have proved unsatisfactory and although live cattle are imported from Australia, high prices could persuade Egypt to listen more favourably to Ireland's request to reopen the market. After Egypt, the EU will sign a similar agreement with Jordan and negotiations are under way with Algeria, Syria and Lebanon. Although few EU officials will say so openly, many hope that this web of ties will boost another EU ambition - to become a more substantial political player on the world stage. The EU has been positioning itself discreetly to adopt a more prominent role in the Middle East peace process once it is revived. Should this come to pass, the economic leverage gained through trade agreements in the region could strengthen Europe's political hand considerably.