Letters of credit (L/Cs) may not be available for sales of Irish beef to Egypt as it mulls reopening this once very popular market.

Cairo is reportedly preparing to certify Irish beef and send a veterinary team to Ireland to inspect meat-processing plants to clear the way for a resumption of imports that have now been banned for more than ten years.

Market opportunities

Egypt suspended imports of beef from much of Europe over the bovine spongiform encephalopathy (BSE) crisis in November 2000 and subsequently banned imports completely.

Before Cairo imposed import restrictions, Egypt was the largest market for Irish beef worldwide.

L/C problems

While Irish beef exporters say they are confident that Cairo will lift its import ban, one source says that Irish banks might not accept L/Cs from Egyptian banks.

This means potential trades between Ireland and Egypt may have to be backed by export credit guarantees.

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