Egypt is actively engaged with Brazil to boost biliteral trade in various sectors including textiles. The free trade agreement (FTA) between Egypt and the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay), which entered into force in 2017, plays a pivotal role in promoting trade between Egypt and Brazil. Exports have jumped 3 times since the FTA.
There are distinguished investment opportunities for the Brazilian business community in the Egyptian market in the areas of the manufacture of textile, spare parts, pharmaceuticals, engineering, along with new and renewable energy, Egyptian Minister of trade and industry Nevine Gamea said at an event of Arab-Brazilian Economic Forum, which she attended virtually.
The FTA between Egypt and Mercosur countries contributed to increasing the competitiveness of Egyptian exports and enhancing its access not only to Brazil but to all Mercosur countries, given that the Brazilian market remains a focal point in the penetration and marketing of goods to neighbouring countries, the Minister added.
After the FTA entered into force, Egyptian exports to Brazil increased over three times from $155 mn in 2017 to $541 mn in 2021, as agreement provided access to many strategic goods at competitive prices.
The FTA also encouraged export of Egyptian apparel and home textile products to Brazil. Egypt’s apparel exports to Brazil were just $0.944 mn in 2017, which increased to $2.281 mn in 2020 and $2.249 mn in 2021, according to market insight tool TexPro.
