Trade Facilitation Project Semi-Annual Report January - July 2015

The project aimed to support Egypt in fulfilling its commitments under the Strategic Economic Partnership with the United States. The ultimate objective of the TFP 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 Industry, Trade and Small and Medium Enterprises (MITSMEs), which was responsible for implementing the project's reforms. Other important counterparts included the Ministry of Finance, represented by the Egyptian Customs Authority (ECA), and the Ministry of Supply and Internal Trade, represented by the Internal Trade Development Authority (ITDA). The TFP was 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. In May 2014, USAID/Egypt authorized a no-cost extension of the contract for an additional year. The project's performance was reported in several key areas, including trade facilitation measures, domestic market strengthening, and gender. The contractor, Nathan Associates Inc., provided regular updates on the project's progress and results. The project's financial expenditures were also reported, with a total amount of $10,870,663 spent during the original contract base period. The TFP's results were expected to have a positive impact on Egypt's trade environment and economy. The project's success would depend on the effective implementation of its reforms and the support of the Egyptian government and other stakeholders. The project's outcomes would be closely monitored and evaluated to ensure that its objectives were met and its results were sustainable.