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Canada and Egypt in 2015 Factors Affecting Business Relations: Retrospection and Forecasting

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Executive Summary
This report reviews the status of the relationship between Canada and Egypt with particular emphasis on the factors that influence trade between them. The approach used is one of situational analysis by looking at how the relationship has been over the past ten years, the current situation, and what is expected in the next one decade.
Main problem were also analyzed in this report which includes cultural issues affecting trade, mutual interests, education and the fact that mutual respect plays a pivotal role in allowing the relationship to flourish. These changes are revised over time to enable the international relations not to be affected by adverse global developments.
Ensuring a stable state of political affairs in Egypt shall be imperative in ensuring the relations do not deteriorate. The training that Canada appropriates for Egyptian diplomats should be given more emphasis. Egyptian borders should be rendered impervious to the ISIS onslaught. Table of Contents
Introduction 4
Issues Affecting Business Relations between Canada and Egypt 4 Mutual Respect, Mutual Benefit 4 Common Interests 4
Changes over the Past Decade 5 Disarmament 5 La Francophonie 5 Other Areas of Cooperation 6
2025 Outlook 6 La Francophonie 6 Cultural Exchange 6
Recommendations 7 Political Stability 7 Middle East Tensions 7
Conclusion 7
References 8
Appendix 9 Introduction: How the Relationship between Canada and Egypt has developed, the Current Situation, and Expected further Developments (2005 – 2015)
International relations between Canada and Egypt were forged during the construction of the Suez Canal, when Canada intervened to help solve a crisis in 1956 (Government of Canada, 2012). Both countries sought to establish peace in the Middle East, ensuring that the region was secure, and the political atmosphere was stable. Presently, these sentiments still remain relevant for the two countries, but there have been some additional areas of mutual interest into which they have ventured.
This bilateral relationship is built on mutual respect, beneficial partnership, stability and peace and founded on a common interest of peace and security in the Middle East Areas of common interest in these two countries includes: International trade negotiations, disarmament issues, La Francophonie, cultural exchanges and education. (Government of Canada , 2015)
As both an Arab and Africa nation, Egypt can be said to be uniquely situated to facilitate its relationship with the North America nation in the Middle East and North Africa regions, a strategic dialogue was established August 2009 in Cairo by Canada former Foreign Minister Lawrence Cannon and both countries have benefitted significantly from this relationship.
Canada’s engagement with Egypt is prioritized on various ranges of global issues which includes, democratic governance development, pluralism and human right as well as citizenship promotion rights (women and girls empowerment) and freedom of expression and association.
Identified by the commercial section of the Canadian Embassy in Cairo, key trade priority sector includes; Agriculture, food and beverage, Clean-technology, Education, Information Communication Technology and life sciences. (Government of Canada , 2015)
Changes in political regimes, the threat of the proliferation of weapons of mass destruction, and the escalation of unrest in the Middle East region are bound to have an effect, albeit a positive one, on the international relations between Canada and Egypt.
The importance of this research lies in the study of past trends in the relationship to predict how the relationship shall be (strong or weak) in the future.

Mutual Respect and Mutual Benefit
According to the Government of Canada Fact Sheet on Bilateral Relations (2012), the relationship between the two countries is a partnership that holds mutual respect and mutual benefit in high esteem (Government of Canada, 2012). Apparently, without these two features, the relationship would not have remained intact since its inception, because if it were not the case, it would imply that one country would be benefiting from their relationship while the other country would be going at a loss (Jintao, 2011). Accordingly, it would be such that an imbalance existed between one country’s exports and imports such that the volume of imports exceeded the volume of exports. On the other hand, through the respect each country accords each other, it is possible for strategic mutual trust to be developed and sustained between them (Jintao, 2011).
Common Interests
Both Canada and Egypt value the idea that the Middle East needs to be made a peaceful region, contrary to the current situation of turmoil within the region (Government of Canada, 2012). Additionally, the two countries aim at cooperating in development processes, nurturing trade relations and sustaining understanding among their peoples, who represent different cultural backgrounds (Government of Canada, 2012).
There are several ways through which cultural differences can affect bilateral trade relations, including the purpose of two countries engaging in negotiations (Salacuse, 2005). Some countries may go into negotiations with other countries while aiming at signing a contract, hence a short-term relationship. Other countries, on the other hand, do not dwell on signing contracts but rather their negotiations may bring about the creation of relationships between them (Salacuse, 2005). In the words of the Chinese President, Hu Jintao (2011), this implies taking a long-term point of view.

Main issues affecting business relationships between Canada and Egypt
Disarmament
Disarmament has been mentioned as one of the issues into which both Canada and Egypt have ventured even as the Canadian-Egypt relationship continues (Government of Canada, 2012). Of particular note is the fact that the Egyptian Ambassador to the US, who has been in the foreign ministry of Egypt for more than three decades has been at the forefront of endeavoring to deal with problems of nonproliferation and compliance (Fahmy, 2008). As for Canada, a recent boycott protesting the participation of North Korea, a country that has been implicated in the development of weapons of mass destruction, in a disarmament conference is also worth taking into account (Brennan, 2011). The Canada-Egypt relationship, therefore, continues to flourish even as the two countries further similar causes (Government of Canada, 2012).
La Francophonie
Canada and Egypt belong to a group of countries that came together to promote the French language and its values (S.A.P., 2012). Whereas Canada is among the wealthiest Francophone countries, Egypt is a member country considered eligible for assistance from Canada through the so-called Official Development Assistance (Mason, 2015). It follows that Egypt is the beneficiary in the relationship based on the La Francophonie alliance. Nevertheless, they share common values through this forum, and they cooperate in technical fields like communications, training, education and culture (Mason, 2015).
Other Areas of Cooperation
Egypt and Canada continue to nurture their relations through several avenues including cultural exchanges, education and international trade negotiations (Government of Canada, 2012). In addition, they also promote international commerce by being the importers of each other’s exports, with annual figures of their exports experiencing significant growth each successive year (Government of Canada, 2012). According to Wise, Watts and Harris (2005), through cultural exchanges, individuals acquire cultural capital through which they can exclude other people or create a sense of belonging. Therefore, Egypt and Canada make their citizens feel that they are not alienated when they travel, either from Egypt to Canada and vice versa.
Changes over the Past Decade
Consumer Market/ Competitors: Increasing in demand and expansion of the food chains such as hotels, restaurants, resorts etc. in Egypt has created a bigger demand for imported goods and change in taste preference and more demand for North America &Europe food and beverage product has had an increasing demand in the import of goods and products from Canada, Canada still faces stiff competitors in the Egyptian food market as countries such as the US and other nations have already an established presence. Canadian food export account for 1% of the imported food market (Agriculture and Agri-Food Canada , 2015)Egypt has a strong trade relation with EU, despite competitors, Canada products still emerge as a good alternative to the Egyptian consumers and companies, with its agricultural products been considered of World high standard and highly valuable.
Economy: There has been lots of reforms and transformation in both countries economy over the past decade, the economy recession had a toll on both countries but different strategies such as the Egypt‘s tax and energy reforms and other measures have been adopted to salvage the situation and also has Canada also had various monetary measures to rescue its falling currency against the US standard.
Infrastructure: Major infrastructural developments in the transportation and communication in Egypt can be commended as this has opened up better channels of trade and investment in the country this can be somewhat significant in comparison with its trade counterpart Canada a development nation that has an efficient infrastructure system.
Political Environment: There has been political issues and both countries have experienced change in powers and government and looking at the impending terrorist issue it has had an impact such as the Canadian embassy in Cairo been shut down and other scarce of impending danger from affiliation terrorist groups that hides under the cover of Islamic countries.
Agricultural sector and Policies: Despite the large expanse of land there is limited growth of arable products and little rainfall makes the country dependence on techniques to increase yield. Well known for its agricultural sector which forms an integral part of its economy, the Egyptian government has been implementing policies to support research programs to facilitate the buoyancy of its Agricultural sector. And Canada has also working aggressively to better its agricultural sector by encouraging local farmers and putting their names in international market such as in Egypt

2025 Outlook
La Francophonie
It has been observed that whereas some countries embrace French and the values it embodies, the usage of English continues to flourish relative to French, and the trend has been that the population of English speakers continues to increase relative to French speakers (Mason, 2015). Nevertheless, as La Francophonie allows even non-French speaking nations to join them, it is likely that this will open more opportunities for interaction on a worldwide scale among countries which might have been at loggerheads earlier on. With the increased interactions, there are two possibilities with regard to the Canada-Egypt relations: on one hand, the relationship might be strengthened given the fact that it is through this alliance that Egypt got access to other business opportunities. On the other hand, as more countries enter the Francophonie movement, there is a likelihood that Egypt or Canada might forge relations with a country with whom Canada have a sour relationship or vice versa. This shall not bode well with the Canada-Egypt alliance.
Cultural Exchange
Having put in place the framework for inclusion of Egyptian students and scholars into the Canadian scholastic system (El Tanbouly, 2015), there is likelihood that a mass exodus or an increase in the number of immigrants into Canada shall be experienced in the future. The political situation having been drastically changed in the recent past notwithstanding, if there should be an extended state of unrest for the first part of the next decade, then the numbers of immigrants shall be relatively higher than when the situation has been brought under control.
Furthermore, both Egypt and Canada have members of their citizenry participating in peace missions (Government of Canada, 2012). The probability that more Canadians than Egyptians shall be involved in maintaining peace in Egypt is quite high.

Recommendations
Political Stability
Ensuring a stable political environment within Egypt shall confirm that the relationship it has with Canada does not suffer adverse effects of unrest such as the economic slump it is likely to bring. At the moment, Canada plays its role in training diplomats from Egypt, and it is expected that this move shall have a profound effect on Egypt’s political affairs. It is therefore recommended that both countries lay emphasis on the importance of this program, and expend more resources in revamping it.
Middle East Tensions
As an Arab speaking nation, many – if not most – of the Egyptian citizens are also Moslems, who might be drawn in by the ISIS movement and other sectarian movements at the expense of peace and infrastructural and economic development within the country. It is suggested that internal peace be the priority for both Canada and Egypt for their relations to remain secure. As members of the La Francophonie group of countries, the common values of upholding human rights might be abused through the involvement of radical Islamist groups especially in Egypt. Therefore, as an adjunct to maintaining internal peace, both countries should work together to ensure that Egyptian borders remain impervious to infiltration by such groups that would disturb the peace.

Conclusion
International relations between Egypt and Canada are quite enviable, given the cultural differences evident between the two countries. As times continue changing, with Egypt having ushered in a new regime that upholds democracy, it is expected that these relations shall be strengthened further through cultural understanding as well as the integration of former Egyptian citizens into the Canadian lifestyles. As the two countries keep maintaining a united front as far as their shared values are concerned, the fight against the proliferation of arms, for example, shall eventually be won. Bibliography
Agriculture and Agri-Food Canada . (2015, Dec 13). Retrieved from http://www5.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/ATS-SEA/PDF/3861-eng.pdf
Brennan, R. J. (2011, July 11). Canada boycotts disarmament conference to protest North Korea’s participation. The Star.
El Tanbouly, N. (2015). Cultural Bureau of Canada. Retrieved December 12, 2015, from Cultural Affairs and Missions Sector web site: http://mohe-casm.edu.eg/mkatb/
Fahmy, N. (2008, July 21). The Middle East and Nonproliferation: An Interview with Nabil Fahmy, Egypt’s Ambassador to the United States. (P. Crail, & M. A. Pomper, Interviewers)
Government of Canada . (2015, Dec 13). Retrieved from Google: http://www.canadainternational.gc.ca/egypt-egypte/bilateral_relations_bilaterales/index.aspx?lang=eng
Government of Canada. (2012, January 22). Canada-Egypt Relations. Retrieved December 12, 2015, from Government of Canada web site: http://www.canadainternational.gc.ca/egypt-egypte/bilateral_relations_bilaterales/index.aspx?lang=eng
Mason, M. K. (2015). La Francophonie: History, Structure, Organization, and Philosophical Underpinnings. Retrieved December 12, 2015, from Moya K web site: http://www.moyak.com/papers/history-francophonie.html
S.A.P. (2012, October 19). La Francophonie: The Ties that Bind. The Economist, p. n.p.
Salacuse, J. W. (2005, April). THE TOP TEN WAYS THAT CULTURE CAN AFFECT INTERNATIONAL NEGOTIATIONS. Retrieved December 12, 2015, from Ivey Business Journal web site: http://iveybusinessjournal.com/publication/the-top-ten-ways-that-culture-can-affect-international-negotiations/
Wise, M., Watts, V., & Harris, C. (2005). Cultural capital, habits and sense of belonging: The impact of ascribed and achieved status. Conference Papers -- American Sociological Association; 2005 Annual Meeting (pp. 1-19). Philadelphia: American Sociological Association.

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