Paraguay’s export potential to Egyptian market reaches US$30.4 million

RIO DE JANEIRO, BRAZIL – The Joint Committee of the Free Trade Agreement (FTA) signed between MERCOSUR and the Arab Republic of Egypt could translate into substantial benefits, as Paraguay’s exports to that market amount to approximately US$30.4 million.

The agreement has been in force since September 2017, 4 years ago, and was enacted by National Law No. 5563/2016.

The committee is in charge of managing the agreement and ensuring its adequate implementation, as well as determining the means to deepen its scope and the cooperation between the parties.

During the 2nd Meeting, the methodology for the exchange of trade data between the parties and the updating of the codification and nomenclature of the lists of offers of goods affected by the FTA was defined, in order to proceed to negotiate products that are currently excluded from the agreement.

Other issues discussed were related to the simplification of rules of origin, industrial cooperation through Egypt’s offer to establish a MERCOSUR industrial zone in the country, health issues and trade promotion through business communities and chambers of commerce.

Egypt’s share in Paraguay’s total trade has much potential for improvement. According to the models used by the Integration Directorate and highlighted in the report entitled Economic and Commercial Profile of Egypt, Paraguay’s export potential to that market stands at around US$30.4 million.

As of August this year, Paraguay posted a trade surplus with Egypt of US$67.5 million, the main exports being beef, soybean oil, corn, cane sugar and animal fat. The country imports mineral and chemical fertilizers, plastics and medical instruments and equipment.