The Egyptian-Brazilian Business Council is seeking, through meetings with the Brazilian side, to attract new Brazilian investments in Egypt in the fields of car manufacturing, fertilizers, readymade garments, furnishings and paints, Head of the Egyptian side at the council Emad el-Sewedy said.
Sewedy said that Brazil’s high custom duties, amounting to 25 percent, hindered efforts to boost trade between Egypt and Brazil, however the Mercosur free trade agreement will add a competitive edge to Egypt’s trade with Brazil.
The Mercosur agreement is a free trade agreement signed in 2010 by Egypt and the Mercosur bloc, compromising Argentina, Brazil, Uruguay and Paraguay. The agreement came into force in September 2017.
Sewedy added that Egyptian companies should make use of the benefits of the agreement and that they should work on knowing the demands of the Brazilian market and consumers so that they can compete in the South American market.
He urged companied to pay visits to Brazil to study and understand the market there. Egypt is seeking to boost its trade with Brazil in light of a plan to develop the country’s foreign trade and investment relations to support the national economy.
Trade relations between Egypt and Brazil are expected to grow in light of the Mercosur agreement, which entails the immediate elimination of tariffs on a list of products for both sides, while a gradual reduction of customs duties will be applied to other products over the upcoming 10 years.
After this period, products will enjoy tariff-free movement among Mercosur countries and Egypt.
Egypt’s Export Development Authority has organized the first Egyptian trade mission to Brazil from April 2-5, 2018, within the framework of the Mercosur agreement.
Also in April, a Brazilian trade delegation arrived in Cairo to discuss ways of boosting commercial relations between Egypt and Brazil.
Egypt’s exports to Brazil increased by 64.7 percent year-on-year in 2017, to stand at $155.4 million, compared to $94.3 million in 2016. Brazilian investments in Egypt stand at $500 million.