Isaura Daniel
São Paulo – Brazil has already shown that it is in favour of a trade agreement between the Mercosur (the customs unit between Brazil, Argentina, Paraguay, and Uruguay) and the Gulf Cooperation Council (GCC). In February this year, the GCC asked for the start of negotiations with regard to a free trade agreement with the South American bloc.
The GCC has not yet received an official answer from the Mercosur, but the Brazilian technical group in charge of the matter showed itself favourable to the subject during a meeting of the Common Market, the executive division of the Mercosur, which took place in Argentina, at the beginning of July.
The final answer, however, depends on a consensus between the four countries in the bloc, a fact that, according to the Brazilian Foreign Office European Union and Extra-regional Negotiations department, has not been reached yet.
According to a division advisor, the remaining countries have shown interest in a "lighter" accord instead of a free trade agreement. Interviewed by ANBA, Raúl Cano Ricciardi, Foreign Trade director for the Paraguayan Ministry of Foreign Relations, stated that the Mercosur has little capacity for negotiations due to the various accords being made in parallel.
The bloc may come to a more definite position with regard to the GCC at the meeting to take place in Brazilian capital Brasília on August 18 and 19. At the meeting, all accords the Mercosur is currently negotiating will be discussed. Apart from the GCC, other Arab countries are also interested in treaties with the South American bloc.
Egypt even signed, at the beginning of July, a document marking the beginning of official negotiations for a free trade agreement with the Mercosur, to be completed by the end of this year or the beginning of next year. Morocco has also asked to start discussing a free trade agreement with the group. At the meeting in Brasília, the continuation of these processes will be negotiated.
Trade potential
Egypt is already a great Brazilian trade partner and imported around US$ 382.8 million from the country up to June this year. Morocco purchased US$ 213 million in Brazilian products. The six GCC countries purchased US$ 977 million in the period.
In the region, Saudi Arabia and the United Arab Emirates have the greatest trade flow with Brazil. The Saudis imported a total of US$ 410 million in Brazilian products up to July, and exported a total of US$ 504 million, mostly oil. The United Arab Emirates purchased US$ 386 million from Brazil.
