Cairo – Mubasher: The Arab-Brazilian Chamber of Commerce (ABCC) on Monday posted that the Free Trade Agreement (FTA) signed in 2010 between Mercosur and Egypt came into effect.
This agreement tackles bilateral trade between Egypt and Mercosur’s members, including Brazil, Argentina, Uruguay, and Paraguay, according to a statement.
The statement added that about 63% of both parties exports will be covered immediately upon the agreement, becoming “eligible for import tax exemption”.
Bilateral trade between Brazil and Egypt stood at $1.8 billion in 2016, of which 78% was made up of products covered by the agreement.
As per the agreement, Mercosur and Egypt are forecasted to make up 99% of Brazil-Egypt trade’s products over the next ten years.
Brazil exports to Egypt upon this agreement include beef products, cereal, ores and inorganic chemical products.
Meanwhile, Egypt exports include both organic and inorganic fertilizers, vegetables, cotton, and textiles.
Brazil exports to Egypt increased 13% to $1.35 billion in the first nine months of 2017, compared to the same period in 2016.
Brazil imports leaped 138.55% to $119.3 million during the nine-month period, compared to the prior-year period of 2016, according to data published by Brazil’s Ministry of Industry, Foreign Trade and Services (MDIC).
Commenting on the agreement, secretary general and CEO of ABCC Michel Alaby said: “As the FTA 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% of the purchases of Brazilian products in the continent,” Alaby added.
“The list of products covered by the agreement is extensive. 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 concluded.
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.
