São Paulo – The Brazilian Senate approved this Thursday (8th) the free trade agreement signed between Mercosur and Egypt. Brazil is the second country to ratify the treaty after the Arab nation, which enacted it in 2013.
According to information from Brazil’s Foreign Relations Ministry (Itamaraty) released this Friday (9th), for the agreement to come into effect it needs to still be approved by the parliaments of Paraguay, Uruguay and Argentina, all part of Mercosur. According to the Ministry of Foreign Relations, the legislative decree should be published this Saturday (10th) on the Federal Official Gazette.
The treaty was signed with the goal to expand and strengthen economic cooperation between the signatories; to cut down barriers and restrictions to trade, including agribusiness products; to promote, through expansion and mutual trade, the development of economic relations; to offer fair conditions for commercial competition; to create conditions for the promotion of mutual and joint investment; and to promote cooperation among the signatories in markets beyond Mercosur.
Egypt is the main buyer of Brazil in Africa and the thirdest among Arab countries, according to data from the Ministry of Development, Industry and Foreign Trade (MDIC).
In 2014, Brazilian exports to the country totaled US$ 2.3 billion, an increase of 5.1% over 2013. The main products exported were beef and sugar. In turn, Brazil imported US$ 145.9 million from Egypt in the same period, or 47.7% less than in 2013. Fertilizers were the main product shipped to Brazil by Egypt.
The agreement was signed by the members of Mercosur and Egypt in the city of San Juan, Argentina, in July 2010. According to the Itamaraty, Venezuela, which is also part of Mercosur, doesn’t need to ratify the agreement since it entered the bloc after its approval. When it comes into effect, the treaty will not be valid for Venezuela, since the country wasn’t part of negotiations. If it wants to join the treaty, Venezuela needs to negotiate its accession.
*Translated by Sérgio Kakitani
