Garments export crisis exacerbated as EgyptAir suspends shipping on passenger flights
EgyptAir's decision to suspend the shipping of commercial cargo on passenger flights bound for New York and Canada created a crisis in the export of Egypt's spinning, weaving and garments sector, with Qualified Industrial Zones (QIZ) exporters being the hardest hit by the decision.
EgyptAir said in a statement on Thursday, that the decision to suspend the transfer of goods on passenger flights is based on recommendations by the U.S. transportation safety delegation, which visited Egypt last week, in the aftermath of the Russian jet crash on Oct. 31.
The airliner is believed to have been downed by a "terrorist act", according to statements by the Kremlin. An Egypt-led international investigation is yet to announce its findings.
The textile, garments and furniture sectors top the list of Egypt's exports to the U.S.
According to statements by the ministry of industry and foreign trade, Egyptian exports to the U.S. between January and August 2015 totalled $974 million, of which $446 million are textiles and cotton products.
Mohamed Qassem, chairman of the Readymade Garment Export Council, said that EgyptAir's decision will have a "negative impact" on exporting garments to North America and "will give the impression to our customers that Egypt is not safe".