Egypt – MERCOSUR Preferential Free Trade

Egypt – MERCOSURPreferential Free Trade

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Egypt – MERCOSUR Preferential Free Trade by Mind Map: Egypt – MERCOSUR  Preferential Free Trade

1. In August 2010, Egypt was interested in actively participate with Latin America to guarantee access to important privileges in the product lists.

1.1. The Framework Agreement highlighted the willingness of the parties to create more favorable conditions for sustainable development and economic cooperation in areas of common interest, on the basis of equality, mutual benefit, non-discrimination and international law.

2. In this treaty what are called original goods are handled, the idea of "original goods" means that this good could be the certificate of origin to be able to benefit from the tariff reduction. A good could be considered as originating from any signatory party under this agreement if it is included in the list of "Totally Obtained Assets"

2.1. A merchandise will be considered originated in one according to one of the following. The goods are produced or obtained in their entirety in the territory of the Signatory Party. The goods are not produced in their entirety in the territory of the Signatory Party, provided that said goods are "eligible" according to articles 3 and 5.

3. Article 3: CUMULATION OF ORIGIN -The goods originated in any of the Signatory Parties, when they are used as inputs for a finished product in the other Signatory Parties, shall be considered as originating in the latter. Article 5: WORK SUFFICIENTLY OR PROCESSED PRODUCTS -These are the conditions that grant the eligibility criteria to a similar Mineral, Cultivated plants and vegetables, Animals and their goods obtained by hunting, and others.

4. The specific ROO applied in this FTA addresses a number of industries that are crucial to the Egyptian economy; Textile, clothing, electronic devices, food, automobiles and metallurgical industries. These rules were established based on the cooperation meetings between representatives of the sector, the export councils, the businessmen and the chambers of the federations of industries; achieve a balance between reaching the MERCOSUR market and protecting national industries.

4.1. The specific ROOs are: food products, textiles and clothing items, electronic devices, metal industries and automobiles.

5. PREFERESIAL SAFEGUARDS • Protect domestic industries in Egypt against the increase in imports that have preferential treatment established in the agreement. • Allowing Egyptian industries to adapt to new competing imports that are treated preferentially and develop competitiveness.

5.1. • Preferential safeguards will apply when imports of a product under preferential terms have increased in such quantities, absolute or relative to domestic production, and under conditions that cause or threaten to cause serious harm to the domestic industry of the importing party or Signatory parties involved. • Preferential safeguard measures will be applied only to the extent necessary to prevent or repair serious injuries.

6. The positive effects of the Agreement on Egypt the MERCOSUR countries.

6.1. Free trade between both parties for a period of 10 years, taking into account that 47% of Egyptian exports will be immediately exempt from all customs duties once the agreement enters into force

6.2. Reducing the expenses of the Egyptian imports from the MERCOSUR countries.

6.3. Presence of an institutional mechanism to resolve the problems that cripple trade between the two parties; the annual joint committee meeting

6.4. Attracting more nvestments from the MERCOSUR in case they faced any obstacles during the transition period of liberating the imports from the MERCOSUR nations.

6.5. Protection of domestic industries against increased imports under preferential treatment that cause or threaten to harm it.

7. EGYPT & BRAZIL Prominent commercial areas meat, machinery and chemical products, cereals, plastics and vehicles. Brazil imported 5.3% of total Egyptian fertilizer exports. Brazilian meat contributed 53.5% of Egyptian meat imports in 2016. Egypt imported 8.2% of total cereal imports, 0.86% of total machinery imports and 0.62% of the vehicles imported from Brazil.

8. EGYP & PARAGUAY Prominent trade areas are oil, seeds, fodder, fertilizers, plastics, paper, pharmaceuticals and electrical machinery. Paraguay contributed USD 8,297 thousand of Egypt's imports in 2016. A value of USD 7027 of Egyptian imports of cereals in 2016 came from Paraguay. Imports of meat from Egypt in 2016 amounted to USD 1411738, Paraguay provided a value of USD 4497.

9. EGYP & ARGENTINA Prominent trade areas cereals, vehicles, plastics, meat, oilseeds, chemicals and fertilizers, Argentina serves as a market for minerals, plastics, machinery and cotton. Argentina contributed to Egyptian imports of fodder prepared in 2016 by 60.5%. In addition to its contribution to Egypt's cereal imports by 18.2%.

10. EGYP & URUGUAY Prominent business areas oilseeds, meat, wood, cereals, plastics, pharmaceuticals, clothing and textiles and electrical machinery, Uruguay imports USD 7584 worth of Egyptian fertilizers, almost the same proportion as Brazil. As well as imports machinery with a value of USD 804 thousand.