Jan-June 2014 Semi-Annual Progress Report for the Trade Facilitation Project in Egypt

The project aimed to support Egypt in fulfilling its commitments under the Strategic Economic Partnership with the United States. The ultimate objective of the activity was to promote economic growth and job creation, and reduce poverty through improvements in the trade environment. Improvements in trade facilitation were expected to contribute to Egypt's economic development objectives in several ways. The reduction in barriers to trade and the creation of more efficient internal and external trading systems would help streamline and expedite the flow of goods across and within Egypt's borders. These improvements would reduce the transaction costs of trade, thereby lowering overall cost of production and increasing the potential for reductions in wholesale and retail prices. The project results were categorized broadly into two major results: 1) external trade made more efficient and consistent with international standards, and 2) internal trade processes improved and strengthened. The main government counterpart for the project was the Ministry of Trade and Industry, which later changed its name to the Ministry of Industry, Trade and Small and Medium Enterprises. Other important counterparts included the Ministry of Finance, represented by the Egyptian Customs Authority, and the Ministry of Supply and Internal Trade, represented by the Internal Trade Development Authority. The Trade Facilitation Project was covered by Amendment 8 to the USAID Assistance Agreement No 263-0289 between the Arab Republic of Egypt and the United States, signed on September 16, 2010. USAID awarded contract no. AID-263-C-1-0003 to Nathan Associates Inc. of Arlington, VA on June 1, 2011, for a total amount of $10,870,663. The contract's original base period ran from June 1, 2011 to May 31, 2014, but was extended for two months until July 31, 2014. The project's implementation involved assisting the Government of Egypt in implementing reforms that enhance trade and relate directly to the US-Egypt strategic economic partnership. The contractor, Nathan Associates Inc., was responsible for assisting the GOE in implementing these reforms. The project's results were expected to contribute to Egypt's economic development objectives, including promoting economic growth and job creation, and reducing poverty through improvements in the trade environment.