Trade Facilitation Project Semi-Annual Progress Report July - December 2014

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 will 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 will help streamline and expedite the flow of goods across and within Egypt's borders. These improvements will 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 are 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 is the Ministry of Trade and Industry, which has undergone several name changes during the project's life. Other important counterparts include 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 is covered by Amendment 8 to the USAID Assistance Agreement No 263-0289 between the Arab Republic of Egypt and the United States of America. USAID awarded contract no. AID-263-C-1-0003 to Nathan Associates Inc. of Arlington, VA on June 1, 2011. The original contract base period ran three years from June 1, 2011 to May 31, 2014 for a total amount of $10,870,663. A no-cost extension of the base period was authorized for two months until July 31, 2014. The project's performance is reported in several key areas, including trade facilitation measures, domestic market strengthening, capacity building activities, gender, direct procurement to activities, media coverage, contractor assessment of current status, performance results and indicators, and financial expenditures. The project has organized several trade facilitation events, provided training to small and medium-sized enterprises, and supported the sales of these enterprises through trade shows. The project has also conducted capacity building activities, including training events and workshops, to support the development of trade facilitation skills in Egypt.