The Brazilian Federal Senate has ratified the preferential Free Trade Agreement (FTA) with Egypt and the South American Common Market (Mercosur) member countries. The Mercosur is composed of four member countries Argentina, Brazil, Paraguay and Uruguay, who have signed the free trade agreement with Egypt during the Mercosur Summit in Argentina on August 3, 2010. Ambassador to Brazil Alaa Roshdy said the Brazilian Federal Senate's endorsement marks the final step to confirm the country's involvement in the pact. Egypt was the first Arab and African country to sign the agreement with Latin America countries, which will open up new markets for the Egyptian exports. At the same time, it will strengthen Egypt's exports competitiveness, especially in the markets of Argentina and Brazil, which are considered major rising economic powers in the world. The Mercosur agreement will open new horizons for the Egyptian products in the Latin American markets, minister Qabil added. The agreement is subject to ratification by the parliaments of Brazil, Argentina, Uruguay, and Paraguay, he noted. Mercosur is one of the most significant economic blocs in the world and also the most successful bloc in South America. It ranks fourth in terms of economic importance after the EU, the North American Free Trade Agreement (NAFTA), and the Association of Southeast Asian Nations (ASEAN). The Mercosur agreement is to allow preferential privileges for the Egyptian exports to enter the Latin American markets, and to reduce the cost of Egyptian imports from Latin American countries such as sugar, meat and soy oil. The FTA aims at cutting tariffs by more than 90% between Egypt and the Mercosur countries and cancelling customs duties on agricultural goods, along with finding solutions to the issues of the rules of origin and the preferential guarantees and promoting cooperation in the fields of investment, services and others. This FTA ensures that Egypt will have its needs of food commodities at the best prices on the long run. It will also work to increase the confidence of Latin America investors in Egypt, and will, therefore, lead to the increase of joint ventures. It contains guarantees that will prevent damage to the Egyptian industry, and it embodies the idea of deepening economic cooperation between the countries of the South. It will also open up new prospects for economic cooperation between the two continents of Africa and Latin America. The Egyptian government aims through this agreement at promoting foreign trade and diversifying export markets.
