São Paulo – To promote technological cooperation and stimulate bilateral trade between Brazil and Egypt, the Brazilian Association of Auto Parts Manufacturers (Sindipeças) and the Industrial Development Authority (IDA) signed a memorandum of understanding yesterday (3rd), at the offices of the Arab Brazilian Chamber of Commerce.
The document, whose main objective is promotion of the auto parts industries in both countries, forecasts the regular exchange of trade information for exploration of possibilities for greater trade and cooperation between both organisations.
"We are seeing the chance of future expansion of bilateral trade and also of opening the industries of Egypt under the system of joint ventures according to what is forecasted in the laws and regulations of both countries," said Ashraf Dowidar, head of the planning, marketing and information department at IDA.
The Sindipeças and the IDA are going to provide assistance to the visits of sector delegations in both countries, providing technical and commercial contacts. The document also forecasts that both organisations should provide assistance to each other during fairs, seminars, symposiums and conferences.
"This is the first agreement we have signed with an Arab country. This partnership should generate good results, mainly due to the affinity between Brazilians and Arabs," said the executive manager at the Sindipeças, William Mufarej.
The organisations should also provide assistance to the trade disputes that result from trade transactions between companies in the field in both countries, taking into consideration standards and international conventions. Apart from that, they should promote constant exchange of information and publications about technology, laws and regulations related to foreign trade and investment.
IDA and Sindipeças
IDA is responsible for the industrial development of Egypt, with objectives to be reached from 2005, when the current model was established, to 2011. The focus of the agency is mainly on the auto, textile, health and naval industry sectors, although incentives may also be provided to other sectors. Among the organisation’s targets are expanding the current rhythm of growth of Egyptian industry from the 5% of 2005 to 10% in 2011. In 2008, the percentage reached was 8%, with the creation of 1.5 million jobs.
Sindipeças is the class organisation that represents the auto parts industry in Brazil. The associates, located in several states, are responsible for around 95% of local production, turned to carmakers, to the replacement parts sector and to the foreign market. Apart from São Paulo, the organisation has regional offices in Minas Gerais, Rio de Janeiro, Paraná, Santa Catarina, Rio Grande do Sul and Bahia, as well as a representative office in Brazilian capital Brasília.
*Translated by Mark Ament
