President Mohamed Morsi earlier this week ended his visit to Brazil, the first by an Egyptian head of state, which aimed at increasing investment and trade with Latin America's largest economy. “We want to increase trade between our two countries and want more Brazilian investors to invest in Egypt,” Morsi said after a meeting with Brazilian President Dilma Rousseff. The trade volume with Brazil in 2012 reached $3 billion, with imports from Brazil worth $2.71 billion against $251 million worth of Egyptian exports, according to Egyptian Ministry of Trade and Industry figures. There are currently only about $30 million invested by Brazil in 18 companies operating in Egypt in vehicles manufacturing, cement and chemicals. Six memorandum of understanding were signed during Morsi's visit: in agriculture, food security, health, social and environmental development, technical cooperation and cultural exchange. Despite expressing satisfaction with the dynamic growth of bilateral trade that reached almost $3 billion in 2012, compared to around $400 million in 2002, Morsi and Rousseff agreed that the entry into force of the MERCOSUR-Egypt free trade agreement with Brazil, Argentina, Uruguay and Paraguay, which was signed in August 2010, will help bolster trade relations between the two countries and allow for a more diversified exchange. A statement issued by the Egyptian presidency this week said both sides also agreed to open a direct air route as soon as possible between Cairo and Brasilia in order to foster tourist traffic. It added that both countries agreed to intensify the exchange of business delegations to encourage direct investments between the countries and allow for a balanced trade exchange. The president assured his Brazilian counterpart that the Egyptian government was taking steps to improve the investment climate. The presidency's statement said an agreement was reached during the visit, the first by any Egyptian president, to benefit from Brazilian expertise in fighting poverty. “Brazil could help Egypt achieve social justice,” Morsi said. The agreement also inked willingness by the two countries to cooperate in energy, waste recycling, scientific cooperation, manufacturing cars and aircraft as well as military industrialisation. “The visit to Brazil was very important because of the need to benefit from its experience in overcoming economic difficulties similar to Egypt's, and becoming currently one of the top 10 global economies,” said Mokhtar Al-Sherif, an economic expert. However, Al-Sherif added, the outcome of the visit will not be tangible at the moment. “But taking full advantage of enhancing cooperation with such a global economic power will be very beneficial to the Egyptian economy.” Egypt's minister of industry and foreign trade has been quoted as saying that the Brazilian market represents an excellent opportunity for several Egyptian exports including furniture, garments, construction and chemical materials and agricultural goods.
