VZCZCXYZ0011
RR RUEHWEB
DE RUEHEG #1957 2871412
ZNR UUUUU ZZH
R 141412Z OCT 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 3884
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
UNCLAS CAIRO 001957
SIPDIS
STATE FOR NEA/ELA
E.O. 12958: N/A
TAGS: ECON EINV EFIN ETRD EAGR EPET PGOV EG
SUBJECT: EGYPT'S ECONOMY: OCTOBER 14 PRESS ROUND-UP
1.(U) The following are notable economic news stories that appeared over the past week in the Egyptian press:
--------------------------------------------- ----- High Court Considers Case on Gas Exports to Israel
--------------------------------------------- -----
2.(U) Egypt's Supreme Administrative Court began hearing arguments in a case on natural gas exports to Israel. Retired
Ambassador Ibrahim Youssri, who heads a group called the Popular Campaign to Stop Gas Exports to Israel, is asking the
court to overturn a lower court ruling that allowed gas exports to Israel to proceed. During the session, the judge
asked government lawyers to present all of the original documents related to the case, including the contract with East
Mediterranean Gas (EMG). In addition, the judge asked Ambassador Youssri to specify whether his complaint centers on the
allegedly below-market prices of the exports, or on the principle that gas should not be exported to Israel at all. The
case will resume hearings on November 7(Al Shorouk, 10/4/2009). ------------------------------------- Inflation Rises to
10.7% in September -------------------------------------
3.(U) According to the data released by the government statistics agency, the Central Agency for Public Mobilization and
Statistics (CAPMAS), annual urban headline inflation increased to 10.7% in September 2009, from 9% in August 2009. The
overall rise in inflation was largely driven by an annualized 17.4% increase in food prices, owing to increased
consumption during the month of Ramadan (Al Alam Al Youm, 10/11/2009). --------------------------------------------- --
Egypt Threatens to Regulate the Sugar Industry --------------------------------------------- --
4.(U) The Ministry of Trade and Industry is expected to issue a decree in the coming week to regulate the sugar
industry, following the unprecedented rise in local prices. Sources at the ministry accused traders of storing large
quantities of sugar to sell later at higher prices. Accordingly, the ministry is considering issuing a decree to prevent
sugar companies from supplying traders with quantities exceeding those which traders can sell, to prevent stockpiling
and market manipulation. The decree also aims at increasing the government's supervisory authority in the trading and
distribution of sugar in local markets. The threat of greater regulation follows the GOE's suspension of tariffs on
imported sugar this summer, a move also intended to increase local supply (Al Masry Al Youm, 10/4/2009). SCOBEY