Egypt pact recognises present EU role in region

As every DJ in Cairo knows, there is one sure-fire way to fill a dance floor in the Egyptian capital's smartest clubs

As every DJ in Cairo knows, there is one sure-fire way to fill a dance floor in the Egyptian capital's smartest clubs. It is to play Shaaban Abdel-Rehim's hit I hate Israel; I love Amr Moussa.

The song, which refers to Egypt's outspoken foreign minister, has spent weeks at number one but there is no sign that audiences are tiring of it.

To keep the revellers happy, a DJ can spin a remix of Um Khaltoum, the great Arab diva who died in 1975. But sooner or later, he is likely to return to Eminem, Shaggy and the other familiar names that dominate European dance floors.

For all their patriotic fervour as they cheer Amr Moussa, most fashionable young people take their cultural cue from outside Egypt. And although the US remains a dominant influence, a growing number are looking towards Europe as the best hope for improving conditions within their impoverished country.

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As US aid to Egypt declines, the EU and its 15 member-states now provide more assistance to the country than anyone else. But EU officials complain that Egyptians are not sufficiently aware of Europe's largesse and that its financial and technical help has not translated into political influence.

This may start to change next month when the EU and Egypt sign an association agreement aimed at improving economic and political co-operation. The EU already has signed similar agreements with Tunisia, Morocco, Israel and the Palestinian Authority as part of a strategy of strengthening links throughout the entire Mediterranean region.

Egypt stands to gain from an economic development package worth more than €5 billion to the Mediterranean region and better access to European markets for its agricultural produce.

For its part, the EU is eager to gain tariff-free access to a market of more than 65 million people, half of whom are under 18. But a more important motivation is Europe's concern that the region should be politically and economically stable. Instability produces emigrants and refugees, many of whom view Europe as their closest safe haven.

Among the more difficult negotiating points in the agreement was a human rights clause that Cairo complained was tougher than that applied to its neighbours. The new clause was at the insistence of the European Parliament, which has become increasingly concerned that the EU should use trade and aid agreements to secure improvements in human rights.

In Egypt, concern centres on the government's treatment of civil society and restrictions on the freedom of assembly and expression. EU officials were outraged last year when the government attempted to exercise control over non-governmental organisations, many of which receive EU funding.

Cairo is nervous about the prospect of dropping import tariffs on industrial exports from the EU, although the agreement specifies lengthy transitional periods to allow Egyptian industry to adapt. The EU enjoys an annual trade surplus with Egypt of more than €5.5 billion and the gap is expected to widen during the next few years. Ireland's trade surplus with the country, which amounted to €240 million in 1999, is almost entirely due to beef exports.

Egypt suspended imports of Irish beef last November in response to the BSE crisis, although the ban will be reviewed in June. Irish beef exporters were in Cairo for a food fair last week in an attempt to maintain contacts. Irish officials are in regular dialogue with the Egyptian authorities.

Alternative sources of supply have proved unsatisfactory and although live cattle are imported from Australia, high prices could persuade Egypt to listen more favourably to Ireland's request to reopen the market.

After Egypt, the EU will sign a similar agreement with Jordan and negotiations are under way with Algeria, Syria and Lebanon. Although few EU officials will say so openly, many hope that this web of ties will boost another EU ambition - to become a more substantial political player on the world stage.

The EU has been positioning itself discreetly to adopt a more prominent role in the Middle East peace process once it is revived. Should this come to pass, the economic leverage gained through trade agreements in the region could strengthen Europe's political hand considerably.

And the young clubbers of Cairo might even learn to dance to a more harmonious tune.

Denis Staunton

Denis Staunton

Denis Staunton is China Correspondent of The Irish Times