Buenos Aires–The South American trade bloc Mercosur will sign a free trade agreement with Egypt at a summit early next week, Egypt’s trade minister said on Friday.
Egypt is the world’s biggest importer of wheat and Argentina, a member of Mercosur, is among the leading global exporters of the grain. Mercosur’s other members are Brazil, Uruguay and Paraguay.
Last week, senior trade officials said that Egypt has asked for poultry products and other food commodities to be included in a list of sensitive products on which duties will not be reduced.
“An agreement has been reached with Mercosur on setting five categories for commodities and products,” an official at the Ministry of Trade and Industry told Al-Masry Al-Youm on condition of anonymity.
According to the official, the first category, which includes intermediate goods and raw materials, will be free of duties once the agreement enters into force. The second group will be freed over four years, the third group over eight years, and the fourth over ten years. There is still no agreed time period for the fifth group, which includes sensitive products, due to fears of negative effects on local industry.
He added that Egypt requested Mercosur to include textiles, clothes, construction materials, and engineering and chemical products among the first category.
Trade between Egypt and Morcosur reached US$1.4 bn in 2009. Egypt’s main exports were petroleum, aluminum, raw cotton and leather, whereas its main imports were poultry, oils, sugar, soybeans and meat.
Translated from the Arabic Edition.
