São Paulo – The Arab Brazilian Chamber of Commerce has produced a study about the products to post the greatest growth in the trade basket between the Mercosur and Egypt, after the signing of the bilateral trade agreement, which took place on August 2nd, in San Juan, Argentina.
According to the secretary general at the organisation, Michel Alaby, the forecast is for the treaty to be enacted in the second half of 2011, after approval of the texts in the parliaments of the countries participating. It guarantees, for example, zero tariff at the end of the period for tax reductions, on 22 of the 25 main products exported by Brazil to Egypt.
Several Brazilian food products will have their import tariff zeroed immediately, and a special highlight is frozen, fresh or chilled beef, powdered milk, butter, green coffee in grain, soy in grain and rice in grain.
The list of industrialized Brazilian products to get tax breaks include machinery for preparation or manufacture of beverages, machinery for printing, machinery for preparation of textile fibres, telephones and mobile phones.
In the case of agricultural machinery, which is currently taxed between 2% and 5%, the fee should be zeroed in seven years. Other items to receive tariff incentives in future are chicken, auto parts, packaging and cosmetics.
Part of the study by the Arab Brazilian Chamber shows the Mercosur offer to Egypt, the products that will have their tariffs reduced by the South American block and that represent opportunities to Egyptian exporters, with special highlight to medical and pharmaceutical equipment, wooden furniture, air conditioners and sheet glass.
Air conditioners, for example, which currently have three levels of taxing – 14%, 18% and 20% -, will have their import fee zeroed in nine years. Wooden furniture, which is currently taxed at 18%, will also have the fee zeroed in nine years.
"The study is very important, as the signing of the agreement has already taken place, and all that is lacking is approval of the parliaments of each country. The target is to reach trade exchange of US$ 3 billion in three years," said Alaby. Last year, bilateral trade between Brazil and Egypt was little over US$ 1.5 billion, with Brazil exporting US$ 1.443 billion and importing US$ 87 million.
According to Alaby, the bloc of Arab countries is among the three main importers of food in the world and Egypt is a strategic gateway to these markets.
He recalled that, still this year, the Arab Brazilian Chamber is going to participate in the Mactech fair, in industrial machinery and equipment, which takes place in Cairo, the Egyptian capital.
View the full list of products with their respective categories and spans for tariff reduction on link http://www.mdic.gov.br//sitio/interna/interna.php?area=5&menu=2716&refr=405
*Translated by Mark Ament
