On January 14th and 15th, our International Affiliate the Egypt Ready-Made Garments Export Council hosted a sourcing showcase and luncheon in New York City. Sourcing executives got a chance to meet with over two dozen Egyptian manufacturers and hear from Anne Patterson, the Assistant Secretary of State for Near Eastern Affairs and former U.S. Ambassador to Egypt, about what’s really going on in this important trade partner country.
Why Egypt?
This will be an important year for Egyptian politics, between the third anniversary of the January 25th revolution as well as the implementation of the “Road Map,” including the referendum on the constitution and parliamentary and presidential elections. Now, more than ever, says Mohamed Kassem, Chair of the RMGEC, it’s important for American businesses to continue to invest in and support the Egyptian economy. “Every garment you buy from Egypt is a vote for democracy,” he says in his message to attendees in the event program.
U.S. fashion brands and retailers meet with manufacturers from Egypt and the QIZ
“We Egyptian garment exporters are doing our national duty in contributing to both objectives very seriously,” he says. “With this road show, Egyptian garment exporters not only contribute to the activation of the economy but they also create jobs for young Egyptians who made all this political change possible. With jobs for Egyptian youth, foreign exchange earnings, and sectoral linkages, we will reach our healthy democratic state faster.”
What can you find in Egypt?
To help the U.S. fashion industry begin “making those votes for democracy,” RMGEC hosted a full-day sourcing showcase in New York, featuring 28 of the leading textile and apparel manufacturers in Egypt and the Qualified Industrial Zone (QIZ) areas where products made jointly in Egypt, Israel, and Jordan receive duty-free treatment into the United States.
One such manufacturer at the showcase was Swiss Garments Company, another International Affiliate of the United States Fashion Industry Association. The company is a subsidiary of Arafa Holding Co. (www.arafaholding.com), a manufacturer and retailer based in Egypt that serves top international brands and global retailers. Swiss Garments Company manufactures high-quality men’s suits and mix-and-match suit separates including jackets, pants, and shorts for brands like Ben Sherman, Massimo Dutti, and Zara. Swiss Garments Company, and all the Arafa brands, offer vertical integration of textiles, apparel/tailoring, and retail and distribution—and can come to the United States duty free.
A look by Swiss Garments Co.
Another manufacturer participating in the showcase for the first time was MAYTEX (or May For Textiles Manufacturing & Marketing Co.). The company is part of Nile Holding, which was founded in 1985. With the implementation of the QIZ, Nile’s business quickly increased and the company was able to grow capacity. Today, MAYTEX has the capacity to produce Egyptian woven cotton shirts, tops and bottoms for adults and children, and men’s suits with flexibility on order sizes, thanks to six factories as well as two in-house laundries and finishing capabilities. And yes, these products are all duty free to the United States, too.
We also enjoyed talking to the team behind Sweet Girl (www.sweetgirlegypt.com), another company at the showcase for the first time. Sweet Girl is a boutique operation founded 30 years ago as a retailer and now produces ladies’ knitwear, children’s fashions, and nightwear for its own labels as well as other brands. The company has the capacity to produce 100,000 units per month, but continues to grow. Sweet Girl is a highly efficient, competitive company—but also highly committed to innovation and global quality standards.
The Sweet Girl Team
(For profiles of more manufacturers, check out our coverage of the last sourcing showcase in May, too!)
Why Egypt…now?
In addition to duty-free exports, Egypt offers a wide variety of benefits: competitive pricing, quality garments produced by highly skilled labor, and shorter lead times to the United States than Egypt’s competitors with consistently on-time delivery. As the Sweet Girl team told us, “Things haven’t changed” for the industry despite the politics. It’s business as usual, especially in terms of capacity and delivery. “Perception is the issue.”
Kassem and Anne Patterson, Assistant Secretary of State for Near Eastern Affairs and former U.S. Ambassador to Egypt, echoed this sentiment at a luncheon the day after the sourcing showcase.
Kassem kicked off the luncheon by noting that the third such road show Egypt’s partners from the QIZ and Israel shows the country’s commitment to the American market and increasing business with U.S. fashion brands and retailers. The road show also occurred on a historic day—the day of the constitutional referendum in Egypt, which will “pave the way for the future of Egypt” as the next step in the Road Map. And business can help support Egypt in its new political chapter.
Sourcing and compliance executives from The Jones Group enjoy lunch with manufacturers from Egypt and the QIZ
Patterson, who Kassem said has shown an “unprecedented” level of support for the industry, agreed. She touted the importance of trade to create “interlocking networks” of people and countries, which is critical for both economic and political success in the United States and the Middle East. In fact, she said, trade and business between the United States and the Middle East leads to peace, economic growth, and jobs for all and especially for the Arab world, which has a large population of unemployed young men. In her new role at the State Department, she added, economic and trade issues are her “priority,” and the apparel industry can help both these goals come to fruition.
It’s especially important for the fashion industry to stay engaged, she noted. “Many businesses have pulled back, but Egypt’s political issues have not affected deliveries,” she said. “Clothes help build business relations between the United States, Egypt, and Israel—and strong ties lead to peace.”
Anne Patterson, Assistant Secretary of State for Near Eastern Affairs & Former U.S. Ambassador to Egypt
Additionally, Patterson urged companies that are still concerned to visit Egypt. The State Department has revised the language about the risk, and American companies are in fact encouraged to travel to many parts of the country. (The most up-to-date travel alert is available here.) She also invited U.S. fashion brands and retailers to call her office with any questions or concerns.
For photos of the event, visit our Facebook page. Apparel Magazine also covered the sourcing showcase.