The Israeli-US-Mubarak QIZ partnership struck in 2005 was in effect a milestone in the normalization process between Egypt and the Zionist state, which was marketed by the neo-liberals as offering:
…investors significant long-term advantages over other preferential trade agreements due to its ongoing commitment with no expiration date and no reduction in tariff schedules.
The benefits of Egypt’s QIZ are various; ease of access to US markets being the most important, with open, unlimited quota as well as exemption of tariff and non-tariff barriers. Other benefits include: low factor costs as well as a huge supply of labor force. Enhanced by the added benefits of trade agreements with other markets, Egypt is ideally-suited to provide countless economic benefits to industries located within these zones. The positive economic impact of the QIZ to date has been such that foreign investors and Egyptian companies alike are continually seeking to locate and qualify their businesses within these zones in order to increase their competitiveness and profitability.
Exports from Egypt have greatly risen since QIZ began, with the bulk of these exports going to US markets. Furthermore, companies exporting under the QIZ have enjoyed higher profits as a result of their unrestricted duty-free access.
As QIZ companies continually expand to keep up with this growth, Egypt is benefiting through a decreasing unemployment and a strengthening economy which would eventually strengthen Egypt’s position on the world economic map.
The truth is work conditions in the QIZones are APPALLING mega-sweatshops, where businessmen can run amok with no accountability. Moreover, they receive the blessing of Washington and Tel Aviv as some free trade warriors and peace seekers.
They talk about “growth, positive impact and strengthening Egypt’s position on the world economic map.” Tell that to 24-year-old Alaa Gameel, the worker I interviewed for Al-Masry Al-Youm. He had joined the factory as a 14 year old minor, never given a contract, works 12 hours a day for a daily wage of LE11 (US$2), and had to already sign a resignation with a blank date so that the owner could fire him at any moment, doesn’t have health insurance, doesn’t have retirement funds, and hasn’t gotten paid for three months.
That’s free trade for you.