Egypt, Turkey discuss using local currencies in bilateral trade

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Egypt and Türkiye are exploring the possibility of using local currencies in bilateral trade. This was discussed during a meeting on Saturday between Egypt’s Minister of Trade and Industry and his Turkish counterpart, Ömer Bolat.

The meeting, attended by officials from both countries’ ministries of trade and the Turkish ambassador to Cairo Salih Mutlu Şen, also included discussions on origin verification and the exchange of contact points between the central banks of both countries. A study was also proposed to assess the possibility of establishing branches of Egyptian banks in Türkiye and vice versa.

The meeting reviewed the results of the fifth session of the Egyptian-Turkish Joint Commercial Committee, which was held via video conference on October 24-25, 2023. The committee discussed a number of trade topics of mutual interest, including the importance of exchanging trade information, removing technical and administrative barriers to trade, and liberalizing agricultural goods under the Free Trade Agreement signed between the two countries.

The committee also agreed to coordinate on developing certain provisions of the Free Trade Agreement regarding technical barriers to trade, customs procedures and trade facilitation, investment facilitation, trade in services, and digital trade.

The two countries also agreed to study the possibility of establishing a RO-RO maritime transport line connecting the two countries and to enhance cooperation in the field of specifications and quality. They also agreed to identify points of contact among stakeholders in the field of food legislation and regulatory activities, as well as in the industrial field.

The meeting emphasized the importance of increasing Turkish investments in Egypt, where Türkiye is a leading investor. The Turkish side was invited to further invest in Egypt, especially in the Suez Canal Economic Zone, and to exploit Egypt’s advantages in accessing African markets through its trade agreements.

Furthermore, Egyptian Prime Minister Mostafa Madbouli met with Bolat to boost trade and investment ties. Madbouli welcomed Turkish investment and encouraged cooperation between Egyptian and Turkish businesses. During the meeting, the Turkish Minister of Trade said that he was accompanied by 170 representatives from Turkish private companies.

The trade exchange between Türkiye and Egypt stands at around $9.2bn, inclusive of energy. Without the energy, it stands at around $7 bn.