Abstract:
This study analyzes how the escalating US-China trade conflict affects Egypt as a bystander country. It examines the trade war’s exacerbation of Egypt’s existing economic weaknesses and explores its impact on various sectors, with growth forecasts for Egypt from 2024 to 2029 under different global trade scenarios. The paper suggests that Egypt can mitigate the negative effects by diversifying trade partners, improving export competitiveness, and leveraging its geographical location. Policy reforms in trade facilitation and industrial strategy are key to turning these challenges into opportunities, particularly by enhancing Egypt’s role in global supply chains. In summary, the study offers insights and recommendations for policymakers, urging strategic adaptation and proactive engagement to navigate trade tensions and harness potential opportunities in the shifting global trade environment.
