Alexandre Rocha
São Paulo – "Strengthening Economic Relations between the Arab Countries and Latin America." This is the title of the study the Arab Brazilian Chamber of Commerce (CCAB) secretary general, Michel Alaby, has been invited to produce for the League of Arab Nations. The objective is to provide the organization, and secretary general Amr Mussa, with information and suggestions for the summit between Arab and South American heads of state, to take place in Brazil in December. Brazilian president Luiz Inácio Lula da Silva had the idea of organizing this summit.
The invitation to Alaby was made on March 24, in Cairo, Egypt, and delivery is scheduled for July 31.
Alaby stated that he is going to collect historical data about Arab immigration to Latin America, about Arab companies installed in the region, as well as researching information about commercial exchange between each country.
"I am going to collect information about the characteristics of trade between both countries, and am going to generate a table showing statistics of the trade volume in the last two or three years," declared the CCAB executive.
He also stated he will check what the commercial accords already in place between both regions are.
Proposals
As it is not simply just a study, but also includes suggestions, Alaby is also going to include ideas to increase trade and commercial relations between the Arabs and Latin Americans.
Among the possible suggestions are the signing of regional free trade agreements, maybe between the Mercosur and the Arabian Gulf. Talks about an agreement between the Mercosur and Egypt are already under way. A negotiation schedule should be presented in June.
Another proposal is to provide investment incentives through technologic cooperation, technology transfer, and tax agreements, so as to avoid, for example, double income tax over investment.
He should also suggest the elaboration of a business and cultural event program in the countries involved. "The organization, for example, of Latin American fairs in the Arab countries, and vice-versa," said Alaby. Another possible suggestion is the generation of other air and maritime transport lines between both regions.
Countries
Alaby stated that the Latin American countries with relations with the Arab countries are Argentina, Brazil, and Mexico. In the case of Argentina the main items exported are cattle and ram beef, wheat, and soy.
Although Brazil is the main Arab trade partner in Latin America, with total trade of almost US$ 5.5 billion in 2003, both export and import, Mexico, according to Alaby, is the most prominent. According to him, there are Mexican restaurants in practically all Arab countries and Mexican music is also very well known in the region. Apart from that, there are Mexican businessmen of Arab descent who are known worldwide, such as telephony executive Carlos Slim, owner of Telmex.
Apart from the economic study to be made by Alaby, the League is also going to produce another two reports about relations with Latin America, one in the cultural area, and another turned to policy.