The USAID Trade Reform and Development Project (USAID TRADE) in Egypt is a five-year, $36.3 million contract implemented by Palladium and a consortium of other international and local subcontractors. USAID TRADE will increase Egypt���s international trade by increasing exports from SMEs, and in particular from the newly introduced concept of New and Expanding Export-Ready Enterprises (NEEREs). This will be achieved by addressing the constraints that impede the competitiveness of Small and Medium-sized Enterprises (SMEs). Over the life of the contract, the USAID TRADE will attain the following three Results:
Enhanced Export Capacity of SMEs, in particular NEEREs; Strengthened Public and Private Trade-Support Institutions; and, Improved Trade and Investment Policy, Regulatory and Institutional Environment.
Under Result 3, the USAID TRADE project aims to support trade and investment reform and development in Egypt, notably for NEEREs and SMEs in the six agreed sectors (engineering, home appliances, chemicals, building material, ready-made garments, and home textiles). R3 contains five focus areas:
Trade Policy Framework Trade Facilitation Food Safety US Trade Discussions Foreign Direct Investment (FDI)
Objective of the Consultancy
A focus area of the USAID TRADE project is strengthening relations between Egypt and the United States. Egypt���s exports to the U.S., the largest world market, are modest compared to its potential and reducing barriers for Egyptian exporters would open opportunities for greater geographic and product diversification.  Trading with the U.S. on a larger scale will benefit both countries and help Egypt move toward greater value-added products.
Egypt has made its Automotive Strategy a national priority. The country has the potential to become another African success story in the automotive industry along with Morocco and South Africa, particularly as the automotive industry moves from Eastern Europe to North Africa. USAID TRADE is well positioned to spur closer cooperation in the automotive sector between Egypt and the U.S. while also helping to make the Egyptian auto industry more competitive, better integrated in GVCs, and better able to attract investment and create jobs, particularly in electric vehicles.
USAID TRADE will investigate, with various stakeholders in the public and private sectors, the long-standing challenges faced by exports of U.S. auto parts to Egypt. Imports of American auto parts became an issue in U.S.-Egypt trade relations when Egypt became a member of the 1958 UNECE Agreement for vehicles and automotive parts in 2013.Resolving this problem to the satisfaction of both countries is a fundamental interest for Egypt as it opens the opportunity to attract additional U.S. investment in the automotive sector.
In support of increased bilateral trade and investment between Egypt and the U.S., USAID TRADE will catalyze commercial partnerships between traders and investors in the two countries to identify and resolve policy obstacles. The project can provide policy best practices in the automotive sector and offer alternatives for government oversight and private sector competition. It is also imperative to devise a strategy that paves the way for more investment and skilled labor which includes backward integration with locally based SMEs as local suppliers.
The project will undertake an integrated study that identifies the reasons for Egypt���s current policy that results in blocking direct auto and auto part imports from the U.S., outlines the repercussions of this policy on Egypt���s exports, investment, and long-term growth, and identifies the winners and losers of the current framework. The study could be the foundation for USAID TRADE���s efforts to resolve the issues in US-Egypt auto parts trade while spurring growth and competitiveness in Egypt���s auto industry.
Period of Performance – This consultancy will take place from January 2022 to July 2022.
Level of Effort – Research Consultant [RC]: 15 Person Days
Tasks – Under this scope of work, the Consultant will work with the USAID TRADE���s R3 team under the supervision of the Senior Trade Expert to complete the following tasks:
Review existing literature about Egypt���s auto and auto parts industry���s strengths and weaknesses in global competitiveness, including challenges in attracting foreign direct investment and increasing exports. Review of Egyptian regulatory framework for the import of cars and auto parts. Review of U.S. regulatory framework for the import of cars and auto parts. Analyze whether and how other countries which are not UNECE members still manage to export to Egypt (e.g., Morocco, India and China). Investigate Morocco���s industrial standards policies and their role in helping the country establish a competitive auto industry by allowing countries to demonstrate that they meet technical regulations rather than imposing UNECE standards. Review other success stories, case studies in automotive and auto parts industry development and how they regulate conformity assessment and, where possible, impact of such policies on FDI, winners and losers, impact on supply chain and manufacturing of feeding industries, impact on skill levels, impact on logistics competitiveness, etc.
Qualification and Requirements:
The candidate should fulfil the following:
Relevant University degree Excellent command of English language Minimum 10 years experience in similar research activities Good knowledge of the Automotive sector in Egypt Experience in research , communication and reporting Good knowledge of the Egyptian regulatory framework for the import of cars and auto parts Knowledge of the international standards and conformity assessment structure is a plus
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