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Mercosur Agreement
International Marketing – Dr. Ramy Khodier

Name: Ali Abdallah Ali Hassan El-Keshawy.

Student No. S – 8374.
Group No. Spring 19193.
Campus Location: Heliopolis, Egypt.

Ali El-Keshawy
a.elkeshawy@ezzsteel.com
Mercosur Agreement.
Preface
This report aims to summarize the Mercosur agreement and its effect on the Egyptian economy.

The agreement.
Item Mercosur Agreement

Negotiations Date July 7, 2004

signing Date August 3, 2010.

Effective Date September 1, 2017

Type Free Trade Agreement

Member Countries Argentina, Brazil, Uruguay, Paraguay, and Egypt

Benefits Cutting tariffs by +90%, duty-free Mercosur items include meat, fish preparations,
vegetables, fruits, nuts preparations, petroleum jelly and fertilizers. Duty-free
Egyptian items include vegetables, mineral fuels, machinery, and medicinal products.

Current tariffs cut 31%, full implementation in 10 years

Total population 357.1 million inhabitants in 2018

Total GDP 3.1 $ trillion

Member countries should express their willingness to:

1- Increase and enhance their economic co-operation to raise the living standards of their
populations;
2- Eliminate difficulties and restrictions on trade in goods, including agricultural goods;
3- Promote through the expansion of reciprocal trade, the harmonious development of their
economic relations;
4- Provide fair conditions of trade competition;
5- Create conditions for further encouragement of investments particularly for the development of
joint investments; and,
6- Promote trade and co-operation between them in third country markets.
Impact on Egyptian Economy
Mercosur-Egypt exports were down 23% in 2018 from 2017 to USD 2.9 billion, with Egypt-Mercosur
exports going up 72% to USD 308.7 million.

Exports to (million USD) 2015 2016 2017 2018

Brazil 95 99 139 262
Paraguay 1 1 1 1
Uruguay 3 7 23 26
Argentina 4 7 16 20
Total 102 113 179 309

Imports from (million USD) 2015 2016 2017 2018

Brazil 2700 1800 2700 3100
Paraguay 84 35 44 38
Uruguay 64 62 58 72
Argentina 1390 1450 1420 970
Total 4238 3347 4222 4180

Balance (million USD) 2015 2016 2017 2018

Imports 4,238 3,347 4,222 4,180
Exports 102 113 179 309
Difference (4,135) (3,234) (4,043) (3,871)

Egypt Exports in million USD

300 30
Year of Implementation
250 25

200 20
Others
Brazil

150 15

100 10

50 5

0 0
2015 2016 2017 2018

Brazil Paraguay Uruguay Argentina

 Egypt Imports in million USD
3500 90
Year of Implementation
3000 80
70

Paraguay, Uruguay
Brazil, Argentina

2500
60
2000 50
1500 40
30
1000
20
500 10
0 0
2015 2016 2017 2018

Brazil Argentina Paraguay Uruguay

Balance
2015 2016 2017 2018
-
(500)
(1,000)
(1,500)
(2,000)
(2,500)
(3,000)
(3,500)
(4,000)
(4,500)

References
1- Azza Kamal, Potential Impacts of Mercosur-Egypt Free Trade Agreement, October University for
Modern Sciences and Arts, Business and Economic Research ISSN 2162-4860 2017, Vol. 7, No. 2
2- Dina Dargham, Mercosur-Egypt trade could be bigger in wake of agreement, Embassy of Egypt,
Economic and Commercial office in Brazil, May 18, 2019.
3- Egypt-Mercosur Free Trade Agreement, State information Service.
4- Emanuel de Macedo, Agreement between Mercosur and Egypt completes two years,
Atlanticoonline, 27/05/2019.
5- Free Trade Agreement between Mercosur and the republic of Egypt.
6- Trading Economics.
7- Export Development Authority.
8- The global competitiveness report 2018, World Economic Forum.