Arab Republic of Egypt

Bilateral relationship

The focus of the bilateral relationship is trade, which is heavily in New Zealand’s favour. In the year to December 2007, New Zealand exports to Egypt totalled NZ$175.5 million, making Egypt our fourth largest export market in the Middle East, behind Saudi Arabia, the United Arab Emirates and Algeria. Over the same period, New Zealand imported $6.7 million worth of goods from Egypt, mainly fertilisers, carpets, household linen products, and acrylic polymers.

Egypt is a significant dairy market for New Zealand. There is also potential for further growth in the services sector, in areas such as information and communications technology, airways, and tourism. The newly established New Zealand Embassy in Cairo will help to foster New Zealand’s links with this populous but challenging market.

In 1977 New Zealand and Egypt signed a "most favoured nation" (MFN) trade agreement which provides for a meeting of a Joint Trade Commission (JTC) "from time to time as deemed appropriate". These meetings form part of a regular programme of bilateral trade talks New Zealand holds with Egypt, aiming to identify and promote trade opportunities and other economic links. The fifth session of the JTC was held in Cairo in April 2002, and was co-chaired by then Minister for Trade Negotiations, Hon Jim Sutton. New Zealand is scheduled to host the next JTC meeting with Egypt.

New Zealand has participated in the Sinai Multinational Force and Observers (MFO) since its establishment on 25 April 1982. The MFO monitors compliance in the Sinai Peninsula region with the Treaty of Peace signed between Egypt and Israel in 1979. The New Zealand Defence Force contributes 26 personnel to the MFO, employed in training, transport, engineer and headquarters roles.

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Key facts

Geography/Demographics

Land Area - 997,739 sq km (only 4% is inhabited) - Population - 74 million (2005 estimate) - Capital City - Cairo - Religion - Muslim (94%); Christian and other (6%) - Official Language - Arabic (English and French widely spoken)

Political

Political system - Unitary Republic - National government - Council of Ministers headed by the Prime Minister. The President is responsible for appointing and dismissing Ministers. The People's Assembly can require a Minister to resign by passing a motion of no confidence. Should a motion of no confidence in the Prime Minister be passed against the President's wishes, the matter may be put to a referendum - National legislature - Unicameral People's Assembly (Majlis al-Shaab) of 444 directly elected members who serve a five-year term. Ten additional members nominated by the president. All candidates contesting elections run as individuals. The President may dissolve the assembly only if he gains the support of the people in a referendum - Last elections - September 2005 (presidential); November-December 2005 (legislative) - Next elections due - 2011 (presidential); 2010 (legislative) - Head of State - President Hosni Mubarak, re-elected for a fifth six-year term in Egypt's first multi-candidate elections in September 2005 - Head of Government - Prime Minister Ahmed Nazif

Economic¹

GDP - US$129.8 billion - Real GDP growth - 7.1% - Exports - US$25.7 billion - Imports - US$43.4 billion - Main exports (06/07) - Petroleum & products (US$9,925 million); Aluminium, iron & steel (US$605 million); Cotton yarn, textiles and garments (US$7125 million) - Current account balance - US$400 million - Inflation - 9.5% - Total external debt - US$30.2 billion

New Zealand Trade²

NZ Exports (FOB) - NZ$198.8 million - Main Exports - Butter (35%); whey (18%); milk powder (18%); cheese (17%) - NZ Imports (CIF) - NZ$10.3 million - Main Imports – Natural calcium phosphates (75%), Carpets (4%), Fertilisers (3%).

^{1 All figures from the Economist Intelligence Unit April 2008 Country Report.
2 Trade figures from Statistics New Zealand December 2008"Grey Book"}

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Visits

• The most recent high-level visit to Egypt from New Zealand was by the Prime Minister Rt Hon Helen Clark to officially open the New Zealand Embassy in Cairo, 28 – 30 November 2007.
• Hon Phil Goff, Minister of Trade and Defence, in December 2006.
• The Minister for Information and Communications Technology, Hon Paul Swain, visited Egypt as part of a wider regional visit in June 2004, accompanied by an information and communications technology delegation.
• The Prime Minister visited Egypt in October 2002, to attend the 60th anniversary of the Second Battle of El Alamein commemorations.
• The Minister for Trade Negotiations, Hon Jim Sutton, visited in April 2002 to co-chair the Fifth Session of the Joint Trade Commission.
• This visit followed January 2001 visit of the then Minister of Foreign Affairs and Trade, Hon Phil Goff, who visited Egypt and the New Zealand contingent in the Sinai MFO. It was the first visit by a New Zealand Foreign Minister since Don McKinnon visited Cairo for talks in 1992.
• There have been no Egyptian Ministerial visits to New Zealand in recent years.

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Representation

• Diplomatic relations with Egypt were established in 1974, through an accreditation from Rome. From 1985 to 29 October 2006, the New Zealand Ambassador in Riyadh was accredited to Cairo.
• In 1999, New Zealand appointed an Honorary Consul in Cairo, Mr El Hamy El Zayat. His role was ended with the opening of the new Embassy.
• New Zealand opened its Embassy in Cairo on 30 October 2006, and the New Zealand Ambassador is Rene Wilson.
• Egypt established a resident mission in Wellington in 1975 - the only Arab country ever to do so. The Embassy was closed in 1988.
• The Egyptian Ambassador is accredited to New Zealand from Canberra. The Economic and Commercial Office of the Consulate-General in Sydney is also accredited to New Zealand.

Travel advice

The Safetravel website provides a travel advisory for travellers to Egypt [external link].

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