São Paulo- The free trade agreement signed last Tuesday (20th) in Montevideo by the Mercosur countries and Palestine may create new opportunities to the South American bloc’s members. Upon establishing themselves in the Arab country, Brazilian, Argentinean, Paraguayan and Uruguayan enterprises will have preferential access to the Arab, European and North American markets. So says Riyad Al-Malki, the Palestinian minister of Foreign Relations.
“Even though we are under occupation, we boast many advantages. We have free trade agreements with the European Union and the Arab countries, and free access to the United States market. All of these factors make it advantageous for enterprises to establish themselves in Palestinian free zones, because their products may then be exported as Palestinian goods, and thus benefit from these agreements,” said Al-Malki in an interview to ANBA, during a visit to the Arab Brazilian Chamber of Commerce.
Al-Malki was accompanied by the Palestinian ambassadors to Brazil and Spain, Ibrahim Alzebem and Musa Odeh. They were received by the Arab Brazilian Chamber CEO, Michel Alaby, and the vice president of International Relations, Helmi Nasr.
According to the minister, companies based in countries such as Germany, France and Turkey are already establishing themselves in Palestinian free zones. “I am hoping to discuss the matter with [Brazilian minister of foreign relations, Antônio] Patriota. If all goes well, the next step is to take Brazilian businessmen to Palestine.”
Al-Malki said he hopes the agreement will make trade between Palestine and Mercosur significant, as it is currently only symbolic, according to him. “It is important to begin implementing the agreement right away,” he said. Despite the urgency expressed by the minister, before it is put to work, the agreement has yet to be voted on by the parliaments of the four Mercosur countries. In Palestine, the treaty is pending approval by the Council of Government.
The Palestinian minister does not yet know which will be the first products to have their tariffs lowered for trade between the two parties. According to him, “products must be analysed before we can decide which ones will be included in the list.” Regarding the potential for a trade flow of US$ 200 million as a result of the agreement, according to Brazilian press reports, Al-Malki believes the potential may even stronger. “In all honesty, I believe we may exceed that figure in a short while, especially if we establish joint ventures and explore religious tourism,” he said. “We must bear in mind that Palestine has a high added value, we have the holiest places in the world and that can be explored to the maximum.”
He also underscored the importance of Brazil’s participation in the agreement. “Brazil is not only a leading country within the Mercosur, it is a leading country within the continent. Our first move following the signing of the agreement was to come to the country’s economic capital to speak to our partners and begin tapping into the full potential of this agreement,” he said. He also mentioned the support he expects to receive in the country. “We regard the Arab Brazilian Chamber as a partner which represents our best interest on implementing this agreement,” he said.
*Translated by Gabriel Pomerancblum
