With this agreement, the Egyptian government aims to promote foreign trade and diversify export markets. It also expects to double the volume of trade between Egypt and Mercosur countries, which currently stands at $7.2 billion. The volume of trade between Egypt and Mercosur had increased by 58.7 per cent between 2004 and 2009 to $2.1 billion, and Egypt looked forward to strengthening its cooperation with Mercosur in various economic sectors such as industry, technology and tourism. It should be noted that the signing of the free trade agreement between Egypt and the Mercosur countries came after six rounds of negotiations in which Egypt sought to cooperate actively with Latin American countries to ensure access to important privileges in commodity schedules. The agreement also provides for the establishment of a joint committee between Egypt and Mercosur to evaluate the trade liberalization process that has been put in place and to conduct the survey on the evolution of trade between the two parties. The annual meetings of the Committee are seen as an important mechanism for consultation between the two sides in order to resolve the problems that their trade may face. “What we`re asking for is a revision of this agreement to include more products and get closer to what we call total free trade,” Panzini said of the possibility. He recalled that it had taken a long time for the agreement to enter into force, which was why he believed that the timetable for reductions should be revised. It was signed in 2010, but it took seven years for all Mercosur members to approve it in their parliaments – Argentina was the last. Egypt approved it in 2013. Egypt is considered the first Arab and African country to sign this important agreement with Latin American countries, which will open new markets for Egyptian exports. At the same time, it will strengthen Egypt`s export competitiveness, especially in the markets of Argentina and Brazil, which are considered the main emerging economic powers in the world. A framework agreement was signed on 7 July 2004 between Mercosur and Egypt, Argentina The Egypt-MERCOSUR Free Trade Agreement (FTA) is expected to facilitate the doubling of international trade between the Arab Republic of Egypt and the MERCOSUR member countries (Argentina, Brazil, Uruguay and Paraguay).
The Mercosur-Egypt Free Trade Agreement entered into force on 1 September. September 2017, after all parties completed their internal procedures to ratify the agreement. • Establish clear rules for the future to promote the development of mutual trade and investment between Egypt and the four Mercosur countries, Argentina, Brazil, Paraguay and Uruguay. About Mercosur It was founded in 1991 by the Treaty of Asunción, which was later amended and updated by the Treaty of Ouro Preto of 1994. Its purpose is to promote free trade and the free movement of goods, people and foreign exchange. Describes the bilateral and multilateral trade agreements to which this country has acceded, including with the United States. The agreement provides for a progressive exemption over several years, resulting in a complete exemption from customs duties levied on 90% of goods traded between the two parties, according to several schedules annexed to the agreement. Ahmed Maghawry, head of the Trade Representation Authority, said Egyptian exports to Mercosur countries have seen a significant increase since the agreement was introduced.
The MERCOSUR agreement supports the current tendency of the state to increase exports and open new markets, explains Nevine Gamea The head of international integration policy of the CNI confirms that these requests have already been made by the CNI at treaty meetings at other times and will be raised again. Panzini believes that the Egyptians will also bring their demands to the meeting, which he considers natural. If they have nothing to gain, they probably won`t accept these demands from us,” he says. The INC does not attend the meeting, but government officials do. The animal protein sector, mainly poultry, wants an increase in quotas that can be imported into Egypt with a tariff advantage. When the quantity indicated in the reduced customs agreement is reached, Brazil will have to export the product to the Egyptians at a high price. The sector says it delivers the tonnage, which is very low, very quickly, and there is a market, there is a demand from Egypt for this chicken meat to sell more,” Panzini explains. CNI represents the private sector in discussions with the Brazilian government on issues of international trade agreements. According to Panzini, the requests will be systematically sent to the government for the next meeting of the Joint Committee of the Mercosur-Egypt Free Trade Agreement. Brazil holds the pro-tempo presidency of the South American bloc and, according to the Brazilian Foreign Ministry, both sides intend to schedule the meeting for mid-September. CAIRO – September 1, 2021: Egyptian exports to Mercosur countries have increased by 115 percent since the agreement entered into force in 2017, according to Ibrahim El-Sigini, deputy economy minister for trade and industry and supervisor of the foreign trade sector and trade agreements.
Egypt is a signatory to several multilateral trade agreements: the exception is part of the free trade agreement signed between Egypt and these countries, including Brazil, Argentina, Uruguay and Paraguay. Gamea noted that among the most important elements on List B of the agreement are cement, citrus fruits, mineral oils and natural gas. Economic and trade relations between Egypt and mercosur countries have seen remarkable developments over the past four years, especially since the conclusion of the free trade agreement between the two sides and its entry into force on 1 September 2017. “The proposals for the meeting program are still being evaluated by the parties and could include discussions on revising points in the tariff reductions of the agreement,” the ministry informed ANBA when asked about the possibility of discussing the anticipation of reductions. Reductions occur when tariffs on products destined to enter countries are lifted, as provided for in the free trade agreement. In 2010, MERCOSUR (Southern Common Market) signed a free trade agreement (FTA) with the Arab Republic of Egypt. In 2010, Egypt signed a free trade agreement with the MERCOSUR countries, Brazil, Argentina, Uruguay and Paraguay, which will enter into force on 1 September 2017. The agreement provides for a gradual exemption over several years. It will eventually lead to a complete exemption from customs duties levied on 90% of the goods traded between the two parties, according to several schedules annexed to the agreement. In addition to tariff reductions, agreements often cover other areas relevant to international trade, such as .
B rules of origin. Brazilian industry wants to renegotiate the original provisions of the Mercosur-Egypt agreement for the auto and auto parts sectors. These regulations specify, for example, the number of domestic components that a product must have to benefit from the tariff reduction of a trade agreement. The executive points out that Egypt, as one of Africa`s largest economies, is an important market for Brazil and one of the few countries with which Mercosur has reached an agreement outside of South America. There is an exciting market for Brazil in industrial and food products for the agricultural industry,” Panzini says of Egypt. For this reason, Brazilian companies want agility in retail. 7- The Mercosur Trade Commission (TCM) The CCM consults the ERM on trade issues, on the creation of new mechanisms for the common commercial policy and on the unification of customs authorities. The ERM also monitors developments in Member States` trade policy issues. The free trade agreement with Mercosur offers Egypt many privileges: it is seen as a tool to give Egyptian exports better access to Mercosur markets. There will be trade liberalization between the two sides over a period of 10 years, bearing in mind that about 47% of Egyptian exports to Mercosur countries will be exempt from tariffs after the entry into force of the agreement. The most important export goods are chemicals, mechanical engineering products and textiles. • Obligation to promote international trade regimes in accordance with the rules of the World Trade Organization.
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