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http://weekly.ahram.org.eg/2008/879/ec1.htm

READY MADE GARMENTS EXPORT COUNCIL

Top 15 Exporters for 2007
123456789101112131415Lotus Garment Co. Swiss Garments Company ( SGC ) Nile Clothing Company Sheeba Giza Spinning & Weaving Velocity Apparelz May Tex Suez Canal Company Alex Apparels for Ready Made Garments Delta Textiles Alexandria Clothing Co. Dice for Ready Made Garments Al Aalamia for Modern Textiles Dyetex (Egyptian International Co. for Knitting and Dyeing) Cairo Cotton Center

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RMGEC Session Minutes October 2007

Results of the October 2007 meeting of the RMGEC are summarized below.

Inside this issue Interview with... Sectors Snapshot Spotlight On...

EU cancels textiles quota As of January 1, 2008, the European Union (EU) will no longer apply the quota system on Chinese textile and Ready Made Garments exports which was in effect since June 2005. Egyptian textile exporters dislike the decision because they fear intense competition from extremely low-priced Chinese products. Chairman of the Ready Made Garments Export Council, Magdi Tolba, said that he expects Egyptian textile exports to drop as a result of the removal of the quota system. Tolba suggested that textiles exporters should begin overhauling their factories or merging with other entities to be able to face competition from the Chinese. http://weekly.ahram.org.eg/2008/879/ec1.htm

The committee afrmed the criteria

for potential fair participants, with an amendment to article six: Instead of any complaint against exporter, it shall now read, in case of any complaint from a foreign buyer against any exporter, this exporter will be deprived from participating in fairs for one year.

Latest News

Thank you letters to be sent to all Ministers

who signed the labor protocol for their support to the ready-made garment sector: H.E. Minister of Trade and Industry, H.E. Minister of Manpower, and H.E. Minister of Education. A separate letter to be sent to H.E. Minister of Manpower, Ms. Aesha Abdel Hadi to request a solution to the issue of the working hours, and the qualication certicate.

Source: Export Development Fund

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Councils News
Dr. Hany Barakat, First Undersecretary for the Ministry of Trade and Industry, and Eng. Magdi Tolba, Chairman of the Ready Made Garments Export Council, signed a Protocol of Cooperation among the: Ready Made Garments Export Council and Fashion Design Center; Textile & Clothing Business Center; Textile Technology Center; KIAZAN Center; and Cleaner Production Technology Center. The protocol creates a framework for project activities which supports the identied common goals of promoting business, capacity building and enhancing the competitiveness of the RMG Sector.

A conference will be held to celebrate the

end of the training program of the council and TEP-A, at which time the councils promotion program will be launched.

Classified

A study to be prepared on the effect

of the decrease in the dollars price on the exporting factories, taking into consideration the experiences of other countries.

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ECGE
Export Credit Guarantee Company of Egypt 10, Talaat Harb Street , Evergreen Bldg Post Code 11511 Cairo - Egypt Telephone: 00 202 25748320/1 25749306 - 012 3408952 Facsimile: 00 202 25749047 E-mail : [email protected] Website: www.ecgegypt.net For Sale or Rent Lingerie factory 1000m2, with (Machinery Trade name) Industrial zone Gesr El Suez area. Sindbad Road, Near DHL ofce, Heliopolis. For more information, please contact: Mr. Mohamed Zamzam 010 1171506 Ready Made Garments Export Council Address : Fairgrounds, Nasr City, Cairo Telephone: +202-24033985/24038972/ 24021169 Fax : +202-24017893 E-mail : [email protected]

Cotton Trade Updates

Cotton Egypt launches promotion activities in USA and Europe Cotton Egypt participated in the Heimtextile Fair in Frankfurt during 8-12 January 2008. Representatives also met in person with 16 other Licensees of the Egyptian Cotton Logo, and discussed developments in the Egyptian Cotton logo promotion campaign as well as the new monitoring system. Cotton Egypt is listed on the Product Pilot website, a frequently updated website for businesses which attracts thousands of visitors from many industries. The response to Cotton Egypt through the promotion letter of the Ready Made Garment Export Council has also been favorable. Several enquiries were sent to Cotton Egypt regarding the international campaign and the licensing procedures for logo use. Applications have been processed and are awaiting nal licensing.

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TEX WORLD
communications +202-22908842 communications +202-22908842

Upcoming Events
TEX WORLD The 10th International fair for Textile and Clothing. Location: Paris Le Bourget Date: 18/2/2008 - 20/2/2008 www.ahkmena.com ISPO SPORT & STYLE The new ISPO SPORT & STYLE offers suppliers from the sport sector the opportunity to present their products and collections outside their classical target groups to reach new circles of customers. Location: Munich Date: 29/6/2008 - 01/7/2008 www.ispo-sportandstyle.com

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READY MADE GARMENTS EXPORT COUNCIL

Interview with...
Ms. Ola Gadallah Chairman & Managing Director Export Credit Guarantee Company of Egypt (ECGE) ECGE is a joint stock company established in 1992 working under the administration of the Ministry of Trade & Industry with a strategic role to encourage and promote Egyptian exports through factoring and insurance against commercial economic & political risk. Ms. Ola Gadallah Chairman & Managing Director of Export Credit Guarantee Company of Egypt (ECGE) possesses 25 years of experience in the nancial sector with Commercial International Bank, Bank of America, and Export Development Bank of Egypt. Ms. Gadallah sees that the textile business is one of the major sectors supporting the Egyptian economy due to the competitive advantage Egypt has in this industry from availability of raw materials, skilled labor and a long history in exporting its products, but yet surprised that considerable niches of the sector are still exporting with letters of credit while the world is trading in textiles with open accounts. She mentioned that insisting on L/C dealings will deny Egypts competitive advantages. Ms. Gadallah added that EGCE do not see any effect of the Dollar problem on the short run USA will keep importing in its own currency while Europe will import a cheaper product due to the decrease in exchange rate of the dollar versus the Euro. Our future plans are to complete our package of products presented to our exporters as we are the rst export factor in Egypt and also the only export credit insurer as well. In 2008 we will be the rst company to present exclusively to our exporters domestic risk credit cover to protect them against their local buyers she said. Finally Ms. Gadallah highlighted that the Ready Made Garments Council is of great importance to the sector inviting importers to visit our exporters also providing them with new export opportunities and advise them to adopt more exible dealing patterns. And that she thinks that guiding the councils members through using open account dealings while ECGE provides post shipment protections, nance and collection will lead to considerable increase in Egyptian exports.

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Export Credit Guarantee Company of Egypt (ECGE) Export Credit Guarantee Company of Egypt provides a standard and complete package of services typical to those provided in Europe and USA. EGCE is the exclusive provider of these comprehensive services:

Export Insurance that protects exporters against non payment of their export proceeds either due to reasons related to the importer and/or their countries commercial and political risk this by issuing four different types of insurance policies: the comprehensive policy, the specic policy, the unconrmed letter of credit policy, and the export service policy. Factoring activity which assists the exporters to increase their volume of exports as it includes insurance against nonpayment, post shipment nancing and collection, which also helps improve the exporter's cash ow. Buyers' information reports is a new product which enables exporters to obtain information regarding their clients for proper future business planning and to avoid high risks. All this in turn leads to an increase in exports which will have a positive impact on the national economy. Debt recovery for uninsured debts this by establishing relations with networks of debit collectors to monitor and recover overdue accounts giving exporters new levels of efciency and control with overseas buyers through avoiding losses.

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www.masrawy.com

READY MADE GARMENTS EXPORT COUNCIL

Sectors Snapshot
It is estimated that RMG exports constitute the highest share of total Textiles and Clothing exports in 2007 representing 56%and accounting for 1.3 billion US Dollar.
(Million US$)

2007 Quarters 2005 Value of Exports 910 2006 1162 First 478 Second 287 Third 281 Forth 233 Total 1280

International News
Application of new customs procedures on imported garments New customs procedures on imported garments, spins and bers and apparels went into effect in mid-December 2007 in an attempt to decrease smuggling and collect the lawful customs duties for imported commodities. Smuggling of textiles is considered one of the most serious industrial crimes due to its harmful effects on the entire clothing and textile industry in Egypt. The problem of textile smuggling was intensied with the appearance of cheap goods labelled Made in Egypt which were actually from China and other parts of Asia. These fakeries were then re-exported to American and European markets, cheapening the image of Egyptian textiles and also negatively affecting the volume of real Egyptian exports to these markets. In their efforts to combat this phenomenon, both Ministry of Finance and Ministry of Trade and Industry identied four main ports for the entrance of imported garments, apparels, spins and berry: Cairo International Airport, Sokhna, Port Said and Alexandria. Mr. Magdi Tolba, Chairman of the Ready Made Garments Export Council, explained that there had been increasing demands from manufacturers to limit the importing ports, especially after the increase of smuggling operations. The smuggling operations had grown to such a proportion that the factories were threatened with closure, which when combined with lost customs duties, could contribute to an economic recession. www.masrawy.com

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Spotlight On
Fashion and Design Center (FDC) The Fashion and Design Center, is jointly afliated with the Ministry of Trade and Industry and one of the most important Italian fashion institutes in Milan, the Istituto di Moda Burgo. The aims of the Center are: - The development and modernization of the Ready-Made Garment industry. - Raising the standard of Egyptian products to international levels. - Introducing well-trained Egyptian Designers and Pattern Makers to the Egyptian Textile and Ready-Made Garment industry, in order to increase the exports percentage to the International market. The Center offers professional diplomas in three areas, available through a two year program, or a one-year intensive program: - Fashion Stylist - Fashion Design - Pattern Making In addition to the diploma, the Center offers a Production Management Course along with a wide variety of long and short special courses, many of which are specially tailored to meet the needs of students and the local industry. Upon successful completion of each course, students receive an internationally recognized diploma. As of Fall 2007, new courses include: - Fashion Design with computer CAD System. - Draping Technique course, with latest trends and techniques. The Centers activities are extended by the Style Studio, located at the premises of the FDC. The Style Studio offers the following services: - Production of collections for all types of garments. - Preparation of Pattern Making with size grading and samples (if required). - Organization of big events, such as, fashion shows and exhibitions. - Assistance and advice for new shops opening. - Technical Consultation. - Commercial services. FDC Textile Holding Co. Bldg 2nd Floor, El Taher St., Down Town Tel: +202-23960375 Fax: +202-23960376 E-mail: [email protected] 3

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www.ecgegypt.net

READY MADE GARMENTS EXPORT COUNCIL

Dun & Bradstreet
Businesses in international trade deal with cross border commercial risks. As a result, overseas businesses, banks & insurance companies seek advice on the ability of Egyptian companies to honor commitments from a credible source. Similarly, Egyptian companies also require information from a credible source on their suppliers and customers overseas so that they can make quick and protable decisions. D&B (NYSE:DNB) is the worlds leading source of business information and insight, enabling companies to decide with condence. For 165 years, D&B has owned and maintained the worlds largest and most comprehensive commercial database of 120 million business entities; D&B covers over 200 countries and its database is updated 1.5 million times every day. D&B service offerings in Egypt include: D&B D-U-N-S number: Wal-Mart, G.A.P, J.C. Penny and other 1000 global brands depend on this number for their outsourcing needs. Egyptian companies now can acquire this number easily on their company from D&B Egypt and become a part of D&Bs Global database. Export Marketing Solutions: Locating importers in U.S./U.K., tracking competitors & monitoring customers performance is now easy with D&Bs Export Marketing Solutions. Risk Management Solutions: Taking quick export marketing decisions without loosing money or customer is now easy with D&Bs Risk Management Services. Country Risk Analysis: Make more prots by exporting to risky countries however monitor their performance every month with D&Bs monthly Country Risk Analysis Dun & Bradstreet 28 Wadi El Nil Street 9th oor, Mohandseen Tel: +202-33469965 Fax: +202-33466134 Mobile: +2 016-5525742 PREMA Make your business more profitable The Egypt National Cleaner Production Center (ENCPC) in cooperation with the German Technical Cooperation (GTZ) offers Protable Environmental Management (PREMA) programmes. This is in line with the Ministry of Trade and Industrys work plan to develop industry and to introduce modern technology systems. PREMA can bring a triple win for participating companies: (i) enhancing economic performance and increasing prots by reducing production costs, (ii) enhancing the organisational capacities of the companies, and (iii) reducing the negative environmental impacts of production processes. PREMA is composed of 3 complementary elements which together lead to continuous improvement: Cost management involves calculating how much the enterprise can save by implementing appropriate measures. Environmental management means identifying where and why resources are wasted and implementing measures to minimize losses. Change management is concerned with encouraging and supporting staff to implement measures and develop approaches that lead to sustainable improvements. PREMA is a 6-month programme comprising four workshops, with 4 to 6 weeks in between for implementing proposals developed in the workshops. The programme is conducted by one international and one Egyptian trainer and includes site visits to evaluate the progress of the companies. In 2007, 11 companies working in the textile sector participated in this programme. So far, these companies have saved annual costs of EGP 120.000 on average. Most of the companies that are active in ready-made garment production could signicantly reduce their fabric losses at the cutting stage and thus generate an additional prot. Other improvements that were achieved by implementing PREMA include the reduction of water losses and energy consumption. Two programmes are to be implemented for the textile industry soon, one taking place in Alexandria and the other in Cairo. The participation fees per company (for up to 3 participants) are EGP 5000. ENCPC 26 A Sherif St., Downtown Fax: +202 23912154 +202 23925984 Mobile: +2 0101485732 e-mail: [email protected]

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