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Working Paper 05-8

Egypt after the Multi-Fiber Arrangement: Global Apparel and Textile Supply Chains as a Route for Industrial Upgrading

by Dan Magder

August 2005

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In the highly competitive textile and apparel trade that is emerging with the demise of the Multi-Fiber Arrangement, Egypt must compete against countries such as China. On the positive side, Egypt competes well with its textile exports, can deliver to European markets quickly, and enjoys European and US trade preferences. On the negative side, the business and investment environment that would enable Egypt to compete in global apparel lags key comparator countries. The Egyptian government is working to address these problems with its recent trade policy reforms. Additionally, supply chain model analysis suggests that focusing on cutting lead times, particularly for products with highly variable demand and short selling seasons, can enhance profits.


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