Taiwanese Businessman Sees Opportunity Amid U.S. Tariff Policies in Egypt
Lo He-chieh, a Taiwanese businessman in Egypt, sees hope in U.S. President Trump’s tariff policy, as Egypt’s lower import duties on textiles provide a competitive advantage over Taiwan. His company, EMC, benefits from the QIZ initiative that spurs growth in the textile sector, which is significant for Egypt’s economy. Encouraging Taiwanese investment, he emphasizes Egypt’s strategic location and labor force as assets for business operations.
A Taiwanese businessman, Lo He-chieh, who established Elite Merchandising Corp. (EMC) in Egypt, believes that the country’s economic landscape may mitigate the impacts of U.S. President Donald Trump’s tariff policies. Following Trump’s announcement of reciprocal tariffs, Lo’s factory received significant orders, as tariffs for goods from Egypt were comparatively lower at 10 percent, versus 32 percent for Taiwanese goods.
Lo credits the rise in sales to the location of his factory in Alexandria, which is part of the Qualifying Industrial Zones (QIZs) that provide tariff exemptions for certain textile goods. The QIZ protocol mandates that at least 11.7 percent of the value of these textile products must originate from Egypt. His factories produce garments with 10.5 percent of the fabric sourced from Israel and nearly 90 percent of materials from Asia.
According to trade data, U.S. import tariffs for textiles and apparel have fluctuated between 13 to 15 percent from 2010 to 2024. In contrast, the average tariff for all goods during this period remained at just 1 to 3 percent. The textile sector in Egypt plays a vital economic role, contributing approximately 12 to 15 percent of the country’s export value, making it the third-largest source of foreign exchange.
Lo has expanded EMC’s operations, establishing a new factory each year and claiming that EMC is now the largest automated garment manufacturer in Egypt. He attributes this success to the young and cost-effective labor force, along with Egypt’s strategic geographical position between Europe, Asia, and Africa.
Enthused by Egypt’s potential for business growth, Lo calls upon Taiwanese investors to consider opportunities in the region, lamenting the stagnation of Taiwanese firms in Egypt despite two decades of encouragement for the formation of a robust supply chain.
The insights provided by Lo He-chieh underscore the opportunities that Egypt presents as a strategic partner in light of recent U.S. tariff policies. The combination of favorable tariff rates and the advantages of the QIZ initiative has significantly benefited his business, while also highlighting the broader economic potential within Egypt’s textile industry. Lo’s call for increased Taiwanese investment reflects an optimistic outlook on long-term economic growth in Egypt, drawing attention to the region’s strategic importance.
Original Source: focustaiwan.tw
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