Thursday 21 November 2019

Dr Michel Alaby, secretary general and CEO of ABCC

Mercosur, Egypt free trade deal comes into effect

CAIRO, October 16, 2017

The Arab-Brazilian Chamber of Commerce (ABCC) has announced that the Free Trade Agreement (FTA) signed between Mercosur bloc and Egypt has come into effect.

Mercosur is an economic and political bloc comprising Argentina, Brazil, Paraguay, and Uruguay, and Venezuela.

Signed in 2010, the agreement outlines bilateral trade between Egypt and Mercosur, through which 63 per cent of its exports will be covered immediately, becoming eligible for import tax exemption, said a statement.

Last year bilateral trade between Brazil and Egypt reached over $1.8 billion, of which 78 per cent was made up of products covered by the agreement. Over the next 10 years, a projected 99 per cent of trade between Mercosur and Egypt will fall under the agreement, it said.

Products exported from Brazil to Egypt that will reap the immediate benefits of this agreement include beef products, cereal, ores and inorganic chemical products, while Egyptian exports covered by the agreement will include both organic and inorganic fertilisers, vegetables, cotton and textiles.

Brazil exported over $1.35 billion worth of goods to Egypt from Q1 to Q3 of 2017, reflecting an increase of 13 per cent compared to the same period in 2016.

According to data published by the Ministry of Industry, Foreign Trade and Services (MDIC), Brazil imported $119.3 million worth of goods during the same period in 2017, reflecting an increase of 138.5 per cent in comparison to 2016.

The Mercosur-Egypt Free Trade Agreement will be discussed within training courses offered to Brazilian exporters across initiatives such as the National Export Culture Plan (PNCE), as well as in frequent talks with Brazilian companies. One of the Plan’s work fronts is the training of exporters in Brazil, it stated.

Dr Michel Alaby, secretary general and CEO of ABCC, said: “As the Free Trade Agreement signed between Mercosur and Egypt comes into effect, we can expect to witness a boost in trade as well as a strengthening of the partnership between Brazil and Egypt.”

“Egypt is an important trade partner of Brazil in Africa as it accounts for 23 per cent of the purchases of Brazilian products in the continent. The list of products covered by the agreement is extensive,” he said.

“Regarding Mercosur’s exports to Egypt, there are nearly 10,000 products included, with almost 63 per cent of exports to be covered immediately,” he added. – TradeArabia News Service

Tags: | Egypt | Trade |

More Industry, Logistics & Shipping Stories

calendarCalendar of Events