Egyptian-French Economic Relations .. Who Will Benefit?

Source: Egyptian Institute for Studies

Author(s): Mamdouh Al-Wali

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There are various forms of economic relations between Egypt and France, including commodity and service trade; presence of Egyptian labor in France and French labor in Egypt, and consequently provision of remittances in both directions; existence of branches for French companies in Egypt; and the ongoing activities of French infrastructure companies in Egypt; in addition to the passage fees of French ships in the Suez Canal, the French loans and grants to Egypt, and the French arms sales to Egypt.

However, the net outcome in these transactions between receipts and payments is in favor of France, with an increasing commodity trade surplus in its trade with Egypt over many years; securing operation areas for French companies in Egypt, especially in the transport and communications sectors; ensuring that the Egyptian authorities prevent illegal immigration to European countries across the Mediterranean Sea; and the diversified French arms sales to Egypt; in addition to allowing the French Navy to maintain training and existence in the Red Sea and the southern coast of the Mediterranean Sea.

The data disseminated by both the Egyptian and French sides emphasize the limited share of commodity and service in the trade of both countries, the limited tourism exchange and its fluctuation according to security stability in both countries, the limited French aid to Egypt, the decline in balances of French loans to Egypt in recent years, and the dwindling numbers of French ships passing through the Suez Canal, due to the increasing share of the France-European Union intra-trade.

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