US-Arab Chamber Hosts Libya’s Deputy Prime Minister

After Over 40 Years, Libya is “Open for Business” – Mustafa Abushagur

Tripoli, 6 . . .[restrict]June:

The National U.S.-Arab Chamber of Commerce   (NUSACC) hosted a business luncheon featuring Libya’s Deputy Prime Minister,   Mustafa Abushagur on June 4. The discussion drew a crowd of over 150 American   business and government leaders to the Four Seasons Hotel in Washington, DC.

“The National U.S.-Arab Chamber is eager to build on past successes and   to re-double our efforts to expand U.S.-Libya trade in the new environment of   political and economic freedom,” stated Hon. Don De Marino, NUSACC’s   Co-Chairman. “We look forward to helping build even stronger ties   between Libyan and American companies as we all move forward together.”

“It has been just nine months since the end of hostilities,” noted   Deputy Prime Minister Abushagur, “but we have made significant progress   on the most critical issues.” Dr. Abushagur went on to state that Libya   is: in the midst of “executing a plan to turn Libya into a stable,   democratic country; beginning to experience a renaissance of civil society   organizations and interest groups; making significant progress in stabilizing   and maintaining a functioning rule of law; continuing to reintegrate freedom   fighters and begun a process of reconciliation to heal the divisions caused   during the old regime’s reign of terror; and seeing Libya’s economy   revitalize and new opportunities emerge for even more Libyans.”

Dr. Abushagur specifically pointed to four key factors to ensuring Libya’s   prosperity:

Stability

Deputy Prime Minister Abushagur began by assuring the crowd that Libya is safe   and secure. Nevertheless, he added that plenty of work needs to be done to   ensure that Libya achieves sustainable security. In particular, he discussed   a detailed plan to bring former fighters — to whom all Libyans owe an   enormous debt, he said — into Libya’s government institutions.

Physical Infrastructure

Infrastructural needs present massive opportunities for U.S. business. Dr.   Abushagur stated, “As a result of four decades of neglect, there is an   urgent need to rebuild and modernize our critical infrastructure. Our roads,   airports, medical facilities, water & sewer systems outside of Tripoli   are largely underdeveloped. We are lucky to have some resources to fund these   projects, but we need an infusion of foreign investment and the involvement of   top firms to ensure that we develop our infrastructure in an efficient and   effective manner.” (When asked by a member of the audience when a master   plan for Libya’s development would be made available, Dr. Abushagur stated   that he expects it to be public within a year, after the transitional   government paves the way for a nationally elected government.)

Human Capital

In terms of human capital, Dr. Abushagur highlighted two trends. Libya, like   much of the Middle East and North Africa (MENA) region, has a wealth of   potential in its youth population, he suggested. In that spirit, Dr.   Abushagur noted, “We want to provide our youth and future generations of   Libyans the opportunity to pursue a world-class education at home and abroad   so that they can further develop their talents.” He also referenced   quality medical care as a core element of cultivating high-level human   capital, stating, “In order to modernize our healthcare system, we seek   to form partnerships with the world’s leading hospitals, many of which are located   in America.”

Business Environment

With regard to the commercial environment in Libya, Dr. Abushagur noted,   “Under Qaddafi, business deals were based largely on cronyism,   corruption was rampant, and Libya’s resources were misappropriated by those   in power.” He went on to say that Libya’s new leadership is   “committed to creating an open, transparent business environment. And in   order to accomplish this we must implement rule of law, adhere to global   standards for trade and investment, and reconstitute our financial systems   with an emphasis on transparency and accountability. The commercial   environment in America sets the gold-standard for openness and transparency,   and we could certainly benefit from the expertise of American firms to make   improvements in these areas.” In that context, he also mentioned Libya’s   dependence on oil, noting that the goal is to reduce dependence on oil from   around 70 percent of GDP before the war to 30-40 percent of GDP in the next   10 years.

The luncheon attracted numerous government leaders from both nations,   including but not limited to: H.E. Naeem Abdurrahman Gheriany, Libya’s   Minister of Higher Education; H.E. Ali Aujali, Libya’s Ambassador to the   United States; Hon. Leocadia Zak, Director of the U.S.-Trade and Development   Agency (USTDA); Hon. Larry Walther, Director of the Export-Import Bank of the   United States; Hon. Don De Amicis, General Counsel for the Overseas Private   Investment Corporation (OPIC); and Hon. Raymond Maxwell, Deputy Assistant   Secretary for Maghreb Affairs at the U.S. Department of State. Also present   was H.E. Mohammed Al-Hussaini Al-Sharif, Ambassador of the League of Arab   States to Washington.

H.E. Ali Aujali, Libya’s Ambassador to the United States, noted, “The   relationship between Libya and the United States has never been stronger. The   U.S. private sector has the opportunity to play a role in rebuilding Libya   and enabling us to meet our aspirations for peace, prosperity, and a high   quality of life.”

Dr. Abushagur’s visit to Washington follows the historic visit of Prime   Minister Abdurrahim El-Keib in March 2012, when a number of cooperative   agreements were signed with the United States. His visit also comes on the   heels of the historic Memorandum of Understanding (MOU) that was signed in   March between NUSACC and the Tripoli Chamber of Commerce, Industry, and   Agriculture. The MOU, the third such agreement between the two chambers, is   designed to promote trade and investment between Libya and the United States   and is the first of its kind since Libya’s revolution last year.

The MOU revolves around the creation of a new Libya – U.S. Joint Business   Council, which will provide a framework for strengthening economic relations   between the two nations. The new private sector entity will be dedicated to   promoting free enterprise, economic growth, job creation and, ultimately, a   better quality of life for both countries.

“NUSACC has been privileged to receive numerous high-level delegates   from Libya in recent months, and today’s visit by H.E. Dr. Mustafa A.G.   Abushagur represents a ‘high-water mark’ in the growing relationship between   Libya and the United States,” said David Hamod, President & CEO of   the National U.S.-Arab Chamber of Commerce. “As Dr. Abushagur’s speech   today suggested, government-to-government relations are key, but so are   business-to-business relations, which will help to create productive jobs in   the new Libya. Our Chamber, working hand-in-hand with our counterparts in   Libya, is proud to be part of this historic undertaking.”

As a part of this effort, NUSACC is   currently leading a “Greenfield Trade & Investment Mission” to   Libya and Tunisia. The delegation is comprised of representatives of more   than a dozen large, small, and medium-sized companies with revenues of more   than $250 billion last year. Delegates are set to arrive in Libya momentarily   to conduct meetings in Tripoli, Benghazi, and Misurata, and the group will   then travel to Tunisia for meetings in Sfax and Tunis.

Since the easing of U.S. sanctions in 2004, U.S. exports to Libya jumped from   $39 million to $665 million in 2010, an increase of 1,605 percent. As a   result of recent unrest in the country, however, 2011 exports to Libya fell   by 56.9 percent to $287.1 million, and U.S. imports in 2011 fell 69.5 percent   to $645 million. With greater stability and a new government in place,   exports both ways are expected to pick up in 2012.

For additional information regarding U.S.-Libya trade in goods, please click here. More   detailed information developed by NUSACC about the export of U.S. goods and   services through the year 2013 can be found here.   NUSACC will publish another forecast through 2015 in the coming months.

Sponsors of today’s NUSACC luncheon for Deputy Prime Minister Abushagur   included Black & Veatch (construction & engineering), Lockheed Martin   (defense & security), and Occidental Petroleum (energy).

H.E. Dr. Abushagur concluded, “The Libyans are a resilient,   entrepreneurial people who are accustomed to rising above the challenges   before them. Libya is now open for business. I invite you to come see for   yourself. I am confident that the involvement of American firms in Libya will   greatly benefit both of our countries for years to come.”