Egypt’s exports to Brazil rise 64% YoY in 2017

CAIRO – 19 March 2018: 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, Brazil’s Ambassador to Cairo Roy Amarell said Monday.

During a seminar about the Mercosur agreement at the Business Association, Amarell said that Brazil’s exports to Egypt increased 41 percent in 2017, recording $2.4 billion, compared to $1.7 billion in 2016.

Brazil’s top exports to Egypt include live animals, prepared foodstuffs and beverages, vegetables, mineral products, sugar cane and frozen meat.

The Brazilian ambassador said that entering the Mercosur agreement into force will enhance trade and investment with Egypt, noting that Egypt is the main importer of Brazilian products in Africa.

The Mercosur agreement is a free trade agreement signed by Egypt and Mercosur countries in 2010, including immediate customs clearance for 63 percent of the exports of Brazil, Argentina, Uruguay and Paraguay to Egypt.

There are potential trade opportunities for Egypt and Brazil under the Mercosur agreement that include animal feed, wood, paper and iron and steel.

The South American Common Market (Mercosur) is an economic bloc compromising Argentina, Brazil, Uruguay and Paraguay.

The trade deal, which covers food, cars, auto parts and industrial supplies, was signed by Egypt and Mercosur members in 2010, but it only came into force in 2017.

Amarell said that Egypt is witnessing a stable economy nowadays, as foreign monetary reserves recorded $42 billion in accordance with the inflation’s decline.

Amarell expected inflation to decrease to 10 percent by the end of the year, in addition to the increase of foreign investments in Egypt and the decline in unemployment rate.

The implementation of the Mercosur deal 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.