Deputy prime Minister and Minister of Industry, Trade and Labor, Eli Yishai visited Cairo on October 9, 2007, and met with his Egyptian counterpart, Rachid Mohamed Rachid, with President Mubarak and with the Egyptian Intelligence Chief Omar Suleiman.

 

At the end of the meeting with president Mubarak, Deputy Prime Minister and Minister of Industry Trade and Labor, Eli Yishai said that "I consider the activity of President Mubarak a blessed activity which promotes the stability of peace in the entire region and especially his involvement in the negotiation and the peace between Israel and the Palestinians, in line of which he acts personally for the release of the soldier Gilad Shalit. In this matter, as well as in other matters I have delivered to the Honorable President a personal note from the respected Rabbi Ovadya Yossef, our spiritual leader who knows President Mubarak personally for many years.

 

Minister Yishai further said that the cooperation in all fields between Israel and Egypt constitutes the foundation for deepening the bilateral relations and is used as a cornerstone and an example for a peaceful coexistence between two neighboring countries with shared political, and economic interests.

 

Minister Yishai emphasized to the President the importance of the joint economic relations between Israel and Egypt and offered to jointly indicate to the business communities in Israel and Egypt that the Governments encourage the enhancing of the cooperation and the integrating of businesses and industries of both countries, for the purpose of joint production and commerce with third bodies, such as the United States and the European Union.

 

In a meeting Minister Yishai held with Minister Rachid Mohamed Rachid, an agreement was signed for the decreasing of the Israeli percentage according to the requirements of the QIZ agreement from 11.7% to 10.5%, and simultaneously a joint address to the American authorities was signed to add another 8 industrial areas in the south of Egypt and thus to tighten the cooperation between Israel and Egypt and to enhance the export of the QIZ areas to the United States. The areas are: El-Fayoum, Bani Sweif, Al-Minya, Asyut, Sohag, Qina, Luxor, Aswan.

 

Minister Yishai further added that:  "I have no doubt that adding the eight industrial areas in southern Egypt in line of the QIZ agreements, will increase the growth potential of the Israeli export in the Egyptian market, and this due to the necessity inherent in purchasing from Israel in the rate of at least 10.5% of every export made to the United States from these areas".

 

It should be noted that in the first seven months of 2007 there has been an increase of the Israeli export to Egypt, compared to the parallel period last year (app. 78 million dollars compared to app. 70 millions), with a slight increase recorded in the import as well (app. 45 million dollars in the first seven months of 2007, compared to app. 42 million dollars in the first seven months of 2006).

 

Considering the fact that the annual export of Israel to Egypt was set in 2004 on 29 million dollars, and that in 2006 the Israeli export to Egypt was set on app. 126 million dollars, then the success of the QIZ agreement and the potential entailed in it are given new validity.