A free trade agreement that will allow preferential privileges for the Egyptian exports to enter the Latin American markets has finally come into effect.
The Arab-Brazilian Chamber of Commerce (ABCC) has announced Monday that free trade agreement signed between the regional bloc Mercosur and Egypt came into effect.
Signed in 2010, the agreement outlines bilateral trade between Egypt and Mercosur, the bloc made up of Brazil, Argentina, Uruguay and Paraguay, through which 63 percent of its exports will be covered immediately, becoming eligible for import tax exemption.
In 2016, bilateral trade between Brazil and Egypt reached over $1.8 billion, of which 78 percent was made up of products covered by the agreement. Over the next 10 years, a projected 99 percent of trade between Mercosur and Egypt will fall under the agreement.
Products exported from Brazil to Egypt, which 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 fertilizers, vegetables, cotton, and textiles.
“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.” Michel Alaby, chief executive of the Arab-Brazilian Chamber of Commerce, said.
“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.” Alaby added.
As for Mercosur’s exports to Egypt, there are nearly 10,000 products included in the agreement, with almost 63 percent of exports to be covered immediately, he said.
The Mercosur-Egypt Free Trade Agreement will be discussed through 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, Alaby stated. One of the Plan’s work fronts is the training of exporters in Brazil.
