Isaura Daniel
São Paulo – The Gulf Cooperation Council (GCC), the customs union which includes Saudi Arabia, Bahrain, the United Arab Emirates, Kuwait, Oman, and Qatar, sent a proposal to start negotiations for a free trade agreement with the Mercosur, the customs union between Argentina, Brazil, Paraguay, and Uruguay in February this year.
According to the head of the Brazilian Foreign Office (Itamaraty) European Union and Extra-regional Negotiation Division, Ronaldo Costa Filho, who provided this information to ANBA, interest was born after the visit Brazilian president Luiz Inácio Lula da Silva made to the region, at the end of last year. At the time, president Lula showed interest in expanding trade with the Middle East, which has really been happening (read another article about the matter on ANBA today).
The GCC proposal was sent to Argentina, the country presiding the bloc, through the Saudi embassy in the country, signed by Saudi Ministry of Foreign Relations deputy minister for Economic and Cultural Affairs, Youssef Sadun Al-Sadoun. According to Costa Filho, the four member countries of the Mercosur are being approached regarding interest in this treaty.
"Apart from already having a customs union, the Gulf countries will have a common currency in 2007. The countries are already experienced in integration," stated Arab Brazilian Chamber of Commerce (CCAB) secretary general Michel Alaby, who is also president of the Association of Brazilian Companies for Market Integration (Adebim), on commenting the advantages the South American bloc would have on closing an accord with the region.
Morocco and Egypt
The GCC is not the only group in the region interested in a free trade accord with the Mercosur. Another Arab nation, Morocco, also showed interest, during the visit the country minister of Foreign Relations and Cooperation, Mohamed Benaïssa, took to Brazil, in April this year, in establishing a free trade accord with the Mercosur. The Moroccans, however, have not yet sent a formal request.
Egypt will be signing tomorrow (7), on the first day of the Mercosur Summit, in Puerto Iguazú, in Argentina, a free trade accord with the bloc. The signing, to take place at Iguazú Gran Hotel, is going to mark the beginning of negotiations for the treaty, to be finished by the end of the year.
On the Egyptian side, the document is going to be signed by the country World Trade Organization (WTO) negotiator, Magdi Farahat. According to Costa Filho after the Summit a commission will be formed to meet and define the entire contents of the treaty.
Egypt is already a strong Brazilian trade partner. Last year, the country purchased US$ 462 million in Brazilian products. In the first half of 2004 alone, Brazil has already shipped a total of US$ 313 million to the Arab country. A free trade accord should expand these figures even more.
