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Sharp drop in Suez Canal revenues adds to Egypt's woes

Sharp drop in Suez Canal revenues adds to Egypt's woes

Egypt's already considerable economic problems took a turn for the worse last month as revenues from transit of shipping through the Suez Canal dropped by half as a result of security problems in  the Red Sea and the Gulf of Aden. Attacks by Houthi rebels on commercial vessels forced major shipping companies to divert away from the key global trade artery. Income from the international strategic waterway last month dropped to $428 million, compared to $804 million in January 2023, Osama Rabie, chairman of the Suez Canal Authority, said in an interview with Egyptian television channel ON TV. The total number of ships through the Suez Canal last month fell to 1,362 vessels, down 36 per cent from the 2,155 vessels navigating the canal during January 2023, he said. Houthi militants in Yemen began attacking commercial vessels in October in solidarity with the Palestinians in the Israel-Gaza war, and show no signs of retreating despite the US and Western allies attempting to deter the Iran-backed group with air strikes, which began on January 12.  Many shipping companies have rerouted their vessels away from the Red Sea to avoid the attacks, opting instead for the longer and more expensive route around the Cape of Good Hope at the southern tip of Africa. The Suez Canal is the shortest sea route between Asia and Europe. With about 12 per cent of the world's shipping traffic passing through it, the waterway is a major facilitator of global trade. The canal is also a crucial source of foreign currency for Egypt. The North African economy, already grappling with record inflation and a heavy debt burden was further impacted by the Israel-Gaza war, which has slowed tourism and decreased shipping through the Suez Canal. Egypt is "particularly exposed" to the Red Sea shipping crisis as the country generates about 2.2 per cent of its gross domestic product in annual balance-of-payment receipts and 1.2 per cent of GDP in fiscal revenue from Suez Canal dues, the International Monetary Fund said in its regional economic outlook in January.
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Opinion: In the South Caucasus, connectivity should help build trust

Opinion: In the South Caucasus, connectivity should help build trust

All transport and communication lines in the South Caucasus remain closed. This failure can largely be attributed to the shift of connectivity from a concept intended to build trust to one tied up with security arrangements in the post-2020 era. "Instead of fostering closeness between the parties, concepts that were supposed to enhance cooperation were perceived as threats to territorial integrity and sovereignty", writes Shujaat Ahmadzada in this op-ed for commonspace.eu. "One should not overlook the fact that the November 10 statement and many of its components have been fundamentally and operationally Russia-centric, implying that the Armenian-Azerbaijani disagreements have to be settled around a third party – albeit not an ordinary one but one with hegemonic ambitions."

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Borrell addresses European Parliament on EU-China relations

Borrell addresses European Parliament on EU-China relations

The Vice-President of the European Commission and European Union High Representative for Foreign Affairs and Security Policy Josep Borrell addressed the European Parliament on Tuesday (18 April) on "The need for a coherent strategy for EU-China Relations”. Beginning by recognising that different member states have different interests vis-a-vis China, Borrell said, "if we want to define a coherent EU strategy towards China, it is necessary for each and every EU actor to exercise their respective roles and responsibilities in accordance with, and in full respect of, the Treaties. "The main focus of his address was on integrating "economic security" into wider "national security" strategies. "This concept of ‘national security’ - ‘economic security’ - will have a determining influence on the way we conceive our foreign relations," Borrell said, adding that the EU should aim to replicate the strategies of the USA and Japan in this regard. Borrell said the four key issues in the EU's relationship with China are "values, economic security, Taiwan, and Ukraine".
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Kazakhstan and Azerbaijan to deepen cooperation as Aliyev meets Tokayev in Astana

Kazakhstan and Azerbaijan to deepen cooperation as Aliyev meets Tokayev in Astana

Kazakhstan and Azerbaijan have agreed to significantly increase bilateral cooperation in a number of sectors after the President of Azerbaijan Ilham Aliyev met with his Kazakh counterpart Kassym-Jomart Tokayev in Astana on Monday (10 April). The meeting was comprehensive, focusing on strengthening political, trade, economic, transport and transit, as well as cultural and humanitarian cooperation between the two Caspian Sea states. The two presidents signed several memoranda of understanding on cooperation in sports, diaspora initiatives, science, telecommunications, business and culture. President Aliyev and President Tokayev also signed a joint statement and protocol on the establishment of a Supreme Interstate Council, "which is designed to serve the comprehensive strengthening of bilateral relations", according to Tokayev. He said, "The full deployment of the potential of the Trans-Caspian International Transport Route, the so-called Middle Corridor, is of particular importance." Meanwhile, Aliyev said that Azerbaijan is "truly determined to deepen and expand the multifaceted cooperation" with Kazakhstan.
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Opinion
Opinion: Armenia should be part of the South Caucasus-EU energy relationship

Opinion: Armenia should be part of the South Caucasus-EU energy relationship

Economic projects can help the normalisation Armenia-Azerbaijan relations, but this should also include co-operation at the regional level, says Benyamin Poghosyan in this op-ed for commonspace.eu. He adds, "Armenia has strong potential to become an exporter of renewable energy to the EU. The participation of Armenia in the Black Sea Energy submarine cable project will contribute to the country’s economic development. It will boost regional economic cooperation, which is much needed to foster stability and security in the South Caucasus. It will strengthen the EU’s position and role in the region and is fully in line with overall EU strategy toward the South Caucasus".