Mercosur Agreement Egypt

Rubem Mendes de Oliveira, a ministerial adviser to the Brazilian embassy in Cairo, said Brazil`s sales to Egypt were important before the agreement, but that this had not been the case. „In three years, exports from Egypt have increased by more than 200%. Why so many? Because the basis of comparison was weak, but I don`t think many other countries in the world have increased their trade with a particular partner in three years. Egypt signed a free trade agreement with Mercosur countries Brazil, Argentina, Uruguay and Paraguay in 2010, which will come into force on September 1, 2017. The agreement provides for a phased exemption over several years. It will eventually result in a total exemption from customs duties, imposed on 90% of goods exchanged between the two parties, in accordance with several lists attached to the agreement. In January 2004, MERCOSUR received a proposal from Egypt to negotiate a free trade agreement based on discussions at the G20 meeting in November 2003. At the regular meeting of the „MerCOSUR“ Council within the framework of the MERCOSUR common market, a framework agreement was signed between MERCOSUR (composed of Argentina, Brazil, Paraguay and Uruguay) and the Arab Republic of Egypt. This decision was adopted by MERCOSUR as a 16/04 decision of the Common Market Council. This agreement provides for the negotiation of a free trade agreement with a first phase, created by the negotiation of a fixed preferential agreement.

The agreement had its third anniversary on September 1, 2020. More than 2,000 items were produced duty-free in trade with Mercosur-Egypt. As of this month, tariffs on 463 items, from Egypt to Mercosur, and on 719 Mercosur items to Egypt will be abolished. The agreement will allow preferential treatment for Egyptian products entering Latin American markets and reduce the cost of Egyptian imports for the most important products, such as sugar, meat and soybean oil. Ahmed Maghawry, head of trade representation, said that Egyptian exports to the countries of merCOSUR had increased considerably since the introduction of the agreement.