Stuck in Stitches: Egypt's Apparel Industry and the Middle-Income Trap
Egyptian textiles and apparel industry The Egyptian Textiles and Apparel (T&A) sector, historically regulated and dominated by public enterprises, has undergone remarkable transformations. This shift from focusing on exporting high-quality Egyptian cotton and catering to the local market to a more liberalized and privatized entity was initiated in the post-1990s era. Economic reforms, including the lifting of import bans on textile and clothing in line with WTO rules, marked Egypt's integration into the global value chain. However, this integration led to an increased reliance on imported cotton and textiles, negatively impacting the trade balance. The T&A trade balance saw a significant downturn, reaching a deficit of US$1.15 billion in 2015. In a positive turn, the balance improved, achieving a surplus of US$0.33 billion in 2021 and further increasing to US$0.97 billion in 2022, indicating a robust recovery. By 2019, the T&A sector accounted for approximatel...