Clothing exports are expected to reach $1.5 billion this year.
Fadel Marzouk, head of the Egyptian Ready-Made Garments Export Council and member of the Cabinet's Export Development Committee, said that his country aims to increase its ready-made garment exports to the US market to $1.5 billion by the end of this year, compared to $1.19 billion in 2024, a growth of 26%.
Marzouk told Al Arabiya Business that Egypt aims to increase its ready-made garment export revenues to $3.5 billion by the end of this year, compared to $2.8 billion in 2024, a 25% increase.
The US market is the primary destination for Egyptian ready-made garments, accounting for approximately 42% of the sector's total annual exports, while Europe controls 25%.
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Ready-made garments are Egypt's most important export to the large US market, accounting for 53% of the country's total exports to Washington last year, which amounted to $2.24 billion, according to data from Egypt's Central Agency for Public Mobilization and Statistics.
Positive impact of Trump's tariffs
A member of the Egyptian Cabinet's Export Development Committee ruled out any impact on Egyptian ready-made garment exports from the countervailing tariffs imposed by US President Donald Trump a few days ago on more than 180 countries, ranging from a minimum of 10% to a maximum of 50%.
"The 10% tariff imposed on Egypt is a protective duty and will not affect Egyptian ready-made garment exports. On the contrary, it will give Egypt a competitive advantage and push exports to record levels over the next three years," Marzouk said.
He added, "The tariffs imposed on Egypt are negligible compared to those imposed on Egypt's main competitors in the US market. 46% were imposed on Vietnam, 36% on China, and 37% on Bangladesh. This places Egypt within a safe zone and gives it a significant competitive advantage."
Ambiguous position of QIZ exports
Marzouk said that Egypt has not yet been informed by the American Chambers of Commerce regarding the status of ready-made garment exports under the Qualified Industrial Zones (QIZ) agreement regarding the announced duties.
The QIZ agreement, signed in 2004, allows Egyptian products to enter the US market duty-free, provided that the Israeli component in these products contributes to a percentage currently reaching 10.5%.
"We still can't confirm whether the 10% rate on ready-made garment exports under the QIZ agreement, which allows Egyptian products to transit duty-free, will be applied. We don't know whether it will be raised to 10% or remain as it is. The matter is uncertain and unclear, but overall, Egypt is in a very good position compared to its competitors and will not be affected," according to Marzouk...