Free Trade Agreement Between Mercosur And Egypt

Mercosur supports negotiations with the European Union for the implementation of the free trade agreement between the two sides. The group also welcomed the dialogue with EFTA (Switzerland, Norway, Liechtenstein and Iceland) in November 2004. Dialogue with the ERC (Australia and New Zealand) resumed in November 2004. There are contacts between Mercosur and the Community of Portuguese Countries (CPLP). About Mercosur It was founded in 1991 by the Treaty of Asuncion, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its aim is to promote free trade and the fluidity of the movement of goods, people and currencies. 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. The free trade agreement aims to reduce tariffs between Egypt and Mercosur countries by more than 90%, eliminate tariffs on agricultural products, find solutions to rules of origin and preferential guarantees, and promote cooperation in the areas of investment, services and others. The free trade agreement with Mercosur offers Egypt many privileges: it is seen as an instrument to offer Egyptian exports more opportunities for access to Mercosur markets. Trade liberalization between the two sides will take place over a ten-year period, taking into account the fact that about 47% of Egyptian exports to Mercosur countries will be exempt from tariffs after the agreement enters into force. The main exports are chemicals, technical products and textiles.

Establish clear rules for the future to promote the development of reciprocal trade and investment between Egypt and the four Mercosur countries, Argentina, Brazil, Paraguay and Uruguay. In 2010, MERCOSUR signed a free trade agreement with the Arab Republic of Egypt. It describes the bilateral and multilateral trade agreements to which that country belongs, including with the United States. The MERCOSUR-Egypt Free Trade Agreement entered into force on 1 September 2017, after all parties completed their internal procedures for ratifying the agreement. Section 25 of Chapter IV, Institutional Provisions, establishes a joint committee to manage and implement the agreement. The agreement will lead to lower prices for agricultural raw materials. In addition, Egypt has signed several bilateral agreements with Arab countries: Jordan (December 1999), Lebanon (March 1999), Libya (January 1991), Morocco (April 1999), Syria (December 1991) and Tunisia (March 1999). In addition, Egypt and China entered into a trade agreement in 1995. Egypt has also signed an economic treaty with Russia. In June 2001, Egypt signed an Association Agreement with the European Union (EU), which came into force on 1 June 2004. The agreement provided for immediate duty-free access of Egyptian products to EU markets, while duty-free access for EU products was phased in over a 12-year period. In 2010, Egypt and the EU concluded an agricultural annex to their free trade agreement and liberalized trade in more than 90% of agricultural goods.

The Egyptian Trade Service (ECS) organized a virtual symposium to maximize the benefits of the free trade agreement signed in 2017 between Egypt and Mercosur, in the presence of Fernando R. Royo, Uruguay`s ambassador to Cairo-Uruguay, who is the real president of the bloc. Egypt is a signatory to several multilateral trade agreements: Sao Paulo – A webiner on Sunday (20) discussed the free trade agreement between Egypt and Mercosur, which provides for a gradual easing of import tariffs on a number of goods and is currently in its fourth year. Host of the Federation of Egyptian Chambers of Commerce and the Department of Agreements and Foreign Trade of the Egyptian Ministry of Trade and Industry, the event saw Brazilian and Arab experts discuss the progress that has been made by the treaty.