A trade deal that allows Egyptian textile products to be exported duty-free to the US as long as they include some components from Israel, has been amended so that a lower Israeli input is required."
Two things here:1. these industrial free zones deals with israel came in the wake of the great peace plan. They are facing the same problems in Jordana nd Egypt: The plan was to make the arab cheap labor work with the israeli products and create a joint industry for export to the US. The arabs did not want to work and eventually the labor force ended up being asians kept in semi slavery. The products were still too expensive (israeli raw material i guess from the summary above), and the projects flopped.
2. I cant help thinking that's what would be in store for Lebanon if the US gets its way. Chilling.