THE IMPACT OF THE GLOBAL FINANCIAL AND ECONOMIC CRISIS ON THE EGYPTIAN AGRICULTURAL FOREIGN TRADE WITH THE EUROPEAN UNION | ||
| Fayoum Journal of Agricultural Research and Development | ||
| Article 35, Volume 23, Issue 2, July 2009, Pages 108-123 PDF (445.03 K) | ||
| Document Type: Research articles. | ||
| DOI: 10.21608/fjard.2009.197106 | ||
| Author | ||
| Rania Abd ElFatah Elshaer | ||
| Res. Agricultural Economics Res. Instit., Agric.Res.Center | ||
| Abstract | ||
| This research aims mainly to identify the implications of the global financial and economic crisis on the Egyptian foreign trade and agricultural foreign trade with the European Union in general and the major Egyptian agricultural exports to the EU in particular. The research indicates that the coverage rate of exports to imports has declined to about 46.2% in 2008 and so the deficit in Egyptian trade balance has increased by approximately 59.3% to almost 16.5 billion euros in the same year. It indicates also that the coverage rate of agricultural exports to agricultural imports has declined to approximately 26.5% in 2008 and so the deficit in Egyptian agricultural trade balance has increased by approximately 74.4% to about 4.32 billion euros in the same year. The research shows that the coverage rate of exports to imports with the EU has declined to about 63.6% in 2008 and so the deficit in Egyptian trade balance with the EU has increased by about 62.2% to about 4.64 billion euros in the same year. It shows also that the coverage rate of agricultural exports to agricultural imports with the EU has declined to about 12% in 2008 and so the deficit in Egyptian agricultural trade balance with the EU has increased by approximately 93.9% to reach nearly 218 million euros in the same year, which reflects the negative impact of the global financial and economic crisis on the Egyptian trade balance and agricultural trade balance with world as well as with the EU. The research refers to increase the amounts and the values of the Egyptian exports of potatoes, grapes and oranges after the global financial and economic crisis, which reflects the absence of a negative effect of it on those exports. The research results show that there is no negative effect of the global financial and economic crisis on the comparative advantage of Egypt's export of potatoes, grapes and oranges to the EU where the value of the Export Specialization Index of each of those exports is more than the unit before the crisis and after it. They show also the increase of the market share of Egyptian exports of potatoes in the EU despite the global financial and economic crisis, which reduces the negative impact of the crisis on those exports which is the decrease of external demand for the European Union on potatoes reflected in the decrease of the amount of Egyptian potatoes exports to the European Union. The research shows increasing of the amounts and the values of the Egyptian exports of grapes and oranges to the EU, after the crisis, as well as growing market shares of those exports in the European Union during the periods having the Egyptian crop of those exports. The study recommends the need to adapt an agricultural economic policy include mechanisms and measures to address the economic crises when they occur in order to take prompt action to mitigate the effects and consequences of this crisis, as well as the need to reduce the geographic and commodity concentration for Egyptian agricultural exports which result in instability of the returns of those exports and its vulnerability to economic crises, and the need to strengthen the competitiveness of Egyptian agricultural exports and create new market opportunities in foreign markets, as well as the need to provide technical support to farmers to produce crops in conformity with the health and environmental standards to facilitate the penetration of global markets , in addition to that Egypt must negotiate with the EU on increasing the tariff quotas for the major Egyptian agricultural exports as well as modifying their export seasons to be consistent with their productive seasons in Egypt . | ||
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