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# **Box I**

**The Geographic Destination of Egyptian Exports:** 1965 to 1992.

While Table 1 provides information on the current destination<sup>of Egypt's exports one would also</sup> want to know how the relative importance of different<sup>markets has changed. If an important shift</sup> occurred more attention should be given to changes in<sup>access conditions for markets that were gaining</sup> in relative importance and less to those which were<sup>declining.</sup>

|||All|Destina<br>OECD ||tion of Egyp<br>North|tian Exports|All Non-|Eastern ||Middle|
|---|---|---|---|---|---|---|---|---|
|Year|World|<br>OECD<br>I|<br>Europe<br>|_|<br>America|Japan<br>||OECD<br>I|<br>Europe<br>I|<br> <br>East|
||||Value of ex<br>12586|ports in terms<br>16106|of US $ rnill<br>17904|ions<br>431335|267758|17834|
|1965-67|591,695<br>|160,360<br>|,9<br>|,<br>|.<br>|,<br>|,<br>|,<br>|
|1970-72<br>|792,066<br>|162,302<br>|123,127,4<br>|9,062<br>|29,990<br>|629,793<br>|448,612<br>|36,713<br>|
|1975-77<br>|1,543,977<br>|485,549<br>|12,171<br>|31,958<br>|41,336<br>|1,058,428<br>|760,255<br>|102,368<br>|
|1980-82<br>|3,132,778<br>|1,821,143<br>|1,538,343<br>|180,159<br>|102,559<br>|1,311,634<br>|343,701<br>|502,836<br>|
|1985-87|2,029,883|970,913<br>|830,608<br>|86,116<br>|53,570<br>|1,058,970<br>|447,741<br>|293,746<br>|
|1990-92|3,108,179|1,634,028|1,297,845|269,469|65,399|1,474,150|340,888|611,774|
||||Share<br>|of Total Egyp<br>|tian Exports<br>30|729|452|30|
|1965-67<br>|100.0<br>|27.1<br>|21.2<br>|2.7<br>|.<br>|.<br>|.<br>|.<br>|
|1970-72|100.0<br>|20.5<br>|15.5<br>|1.1<br>|3.8<br>|79.5<br>|56.6<br>|4.6<br>|
|1975-77|100.0|31.4<br>|26.7<br>|2.1<br>|2.7<br>|68.5<br>|49.2<br>|6.6<br>|
|1980-82<br>|100.0<br>|58.1<br>|49.1<br>|5.8<br>|3.3<br>|41.9<br>|10.9<br>|16.1<br>|
|1985-87<br>|100.0<br>|47.8<br>|40.9<br>|4.2<br>|2.7<br>|52.2<br>|22.1<br>|14.5<br>|
|1990-92|100.0|52.6|41.8|8.7|2.1|47.4|11.0|19.7|

The above statistics show the share of Egypt's exports<sup>destined for OECD and other markets for</sup> select intervals over 1965-67 to 1990-92. Two key<sup>trends are apparent. First, the growing relative</sup> importance of OECD markets is clear as the share of exports<sup>going to these destinations roughly doubled.</sup> Within the OECD, Europe was dominant absorbing 42 percent<sup>of Egypt's exports. Second, the above</sup> statistics show a major decline in exports destined for<sup>Eastern Europe -- a development that was</sup> accelerated by the break up of the former Soviet Union<sup>(in 1970-72 the FSU received 37 percent of</sup> Egypt's exports). Another noteworthy point concerns<sup>the rapid increase in Egypt's exports to other ME</sup> countries as this share increased more than six-fold over 1965-67<sup>to 1990-92.</sup> The importance of European markets for Egyptian trade prospects<sup>is clear. As such, developments</sup> relating to the formation of the EU, further regional integration<sup>arrangements (particularly with Eastern</sup> Europe), or the impact of the Unrguay Round on European<sup>trade barriers should receive priority</sup> attention. Since North America receives less than 10 percent of Egypt's<sup>total exports it is unlikely that</sup> NAFTA will have important direct implications for Egypt. However,<sup>the indirect effects could be</sup> important if countries which are displaced in North America attempt to<sup>shift these exports to Europe and</sup> increase competitive pressures on Egypt.

In 1992, 40 percent of Egypt's exports to the region went to Israel and 30<sup>percent went to Saudi</sup> Arabia. Crude petroleum accounted for about 95 percent of the shipments to<sup>Israel. About 40 percent of</sup> Egypt's exports to Saudi Arabia were live animals, fresh fruit, and fresh<sup>vegetables.</sup>