Egypt’s chemical exports drop 9% in May

Egypt’s chemical exports fell  9 percent to $376 million in May 2018, compared to $415 million in the same month of 2017, according the Chemicals & Fertilizers Export Council (CEC).

Chairman of the Council Khalid Abul Makarem said that the council aims at increasing its exports during 2018 by 20 -25 percent to record about $5.5 billion and become the largest export sector among the economic sectors.

“The exports of the first five months of the year marked positive indicators, as they increased 26 percent, recording $2.1 billion from January to May 2018, compared to $1.7 billion during the same period of 2017,” he added.

Abul Makarem noted that the target was to achieve $5.2 billion, pointing out that the targeted increase may exceed $5.5 billion by the end of the year.

In 2017, chemical exports increased 32 percent to reach $4.4 billion, up from $3.3 billion in 2016.

Generally, Egyptian goods became attractive to foreign markets after the flotation of the state’s currency in November 2016, losing 50 percent of its value, which is reflected on the increased exports.

Egypt also benefits from the trade agreement that came into action lately, reflecting on the rising volume of its exports. The state is involved in international trade deals such as the Mercosur Agreement, which is a free-trade agreement signed by Egypt and Mercosur countries in 2010, including the immediate customs clearance for 63 percent of the exports of Brazil, Argentina, Uruguay and Paraguay going to Egypt.

The Mercosur trade deal covers food, cars, auto parts and industrial supplies, and was signed by Egypt and Mercosur members in 2010, but only came into force in 2017.

Another trade agreement that Egypt is committed to is the deal with the Common Market for Eastern and Southern Africa (COMESA), which represents a free-trade area with 19 member states, stretching from Libya to Swaziland. COMESA was formed in December 1994 to replace the Preferential Trade Area, which had existed since 1981.