São Paulo – The Egyptian minister of Industry and Trade, Rachid Mohamed Rachid, said this Wednesday (4th), in an exclusive interview to ANBA, that after the signing of the free trade agreement between the Mercosur and his country, trade relations between Egyptians and Brazilians may more than double within a short time span.
“I expect the figure to reach US$ 4 billion in three to five years, I can see it happening,” said Rachid, after meeting with the board of the Arab Brazilian Chamber of Commerce, in São Paulo.
He added that Egypt already imports several Brazilian products, and that there are opportunities for introducing more Egyptian goods in Brazil, such as fertilizers, chemicals and pharmaceutical products. “Egypt is the leading market in the Middle East, and the first Arab country to sign a free trade treaty with Brazil. I believe that should give us quite an advantage,” he declared.
Rachid arrived in Brazil this Wednesday, after attending the Mercosur Summit, in Argentina, where the agreement was signed. He is being accompanied by a business delegation that will engage in business matchmaking rounds with Brazilian enterprises at the Arab Brazilian Chamber. Read below the main stretches of the interview and watch a video with the minister at the end of the page:
ANBA – After the signing of the free trade agreement with the Mercosur, what are your perspectives regarding trade relations between Brazil and Egypt?
Rachid Mohamed Rachid – This is obviously a historic event for relations between Egypt and Brazil. The agreement will definitely take trade to a new level. Presently, trade between the two countries amounts to US$ 1.7 billion, consisting mainly of products exported from Brazil to Egypt – and we are glad to receive goods from Brazil –, but I am certain that in the next three or four years we will see this figure more than double. I expect it to reach US$ 4 billion within three to five years, I can see it happening. There will be companies involved on both sides. We import many agricultural products from Brazil, but that is not all, we buy aircraft, equipment and we are expanding our relations. On the Egyptian side, we have started and will continue exporting fertilizers, chemicals, pharmaceuticals, textiles. There are many possibilities. I also hope that the services sector will grow, and the same applies to tourism.
Which Egyptian products may be better accepted in Brazil, are they those whose inclusion in the agreement was regarded with greater interest?
Well, fertilizers are one [of the products]. Brazil is one of the leading fertilizer importers and Egypt is one of the main exporters, so we must build on this relation. Auto parts is a sector that we are discussing as well, and we are going to receive a Brazilian delegation [in Egypt] to focus on this segment. We are looking into the chemicals and textiles fields in general, and there are possibilities in furniture and foodstuffs as well. Brazil is going to expand its market and there will be a demand for products from different parts of the world, and I think Egypt will have a share. Egypt is the largest market in the Middle East, and it is the first Arab country to sign a free trade agreement with Brazil. I believe that this will give us quite an advantage.
Do you believe that, as a result of the agreement, Egypt should be a natural hub for South American products and vice versa?
Of course. I see Brazil as a gateway for Egyptian products into Latin American markets. You have a good logistics system, a good distribution system and, of course, you are also the largest market, therefore you will attract most of the people seeking trade and investment. The holds true of Egypt. The country is the largest market in the Middle East and located in the middle of it, so it will be a gateway for Brazilian companies into Arab, African and Mediterranean countries. I believe that there are many synergies and common interests that may be tapped into.
You are going to meet with your counterpart in Brasília (the Brazilian capital). What do you intend to discuss with minister Miguel Jorge and other ministers?
Yes, I am going to meet with the ministers of Agriculture, of Trade, of Transport and of Foreign Relations. What we are going to discuss is: now that we have the agreement, what must we – the governments of Brazil and Egypt – do in order to build on the agreement? This is a major event for us, this is a new reality, now we have a real foundation on which to build, and we need to engage the entrepreneurial community more and more. Thus, I am going to discuss all of the possibilities in fieds such as agribusiness, logistics, transports, navitgation, [exchange of] business delegations, commercial promotion, in other words, an overview of bilateral relations. I tell my people: “The problem between Egypt and Brazil has always been the distance. Now, after the signing of the treaty, the distance has been cut in half.” We are expecting things to evolve swiftly.
In this respect, how may the Arab Brazilian Chamber be of assistance?
The Chamber plays a very important role, because the agreement depends on the business community to be activated. At the Arab Brazilian Chamber, we discussed a few practical steps, such as establishing an office of the Chamber in Egypt, and an Egyptian office at the Chamber. We are also going to increase the funding on both sides. The government is going to command the Egyptian Export Development Bank, the Egyptian Chambers of Commerce and the Brazil-Egypt Business Council. They are going to discuss. I have given them 48 hours. By the end of Friday (6th) I need a plan, deadlines and goals (members of the aforementioned organizations are part of the delegation of the minister, who will return to Egypt on Saturday). I believe that within the next three years, the Chamber will have a much greater role to play.
*Translated by Gabriel Pomerancblum
