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Agreement with Mercosur opens business opportunities for Egypt in the Brazilian market

Free trade came into force in 2017. Egyptian exporters such as Delta Brothers and Oriental Fruits say that without it, it would be impossible to enter the Brazilian market and compete in price with other countries.

São Paulo—Since it came into force in 2017, the free trade agreement between Mercosur and Egypt has benefited mutual trade. At least two exhibitors from the Arab countries who participated in the Apas Show in São Paulo this week stated that this partnership has resulted in their sales and presence in the local market.

Partner of the company Delta Brothers, one of the leaders in the frozen food sector in Egypt, Mostafa Salah, said that Egypt has excellent knowledge in agriculture; after all, more than seven thousand years ago, it already developed the cultivation of different crops. In addition to its production capacity, Mostafa cites Mercosur as essential for frozen products from Egypt to reach Brazil at competitive prices. Chile and China, two major sellers to Brazil, he stated, no longer compete with the same strength as before in the Brazilian market due to the benefits that the Mercosur agreement provided to Egypt.

“There is more and more demand. French fries are in almost every dish. Sales of [frozen] strawberries from Egypt to Brazil double in volume every year. And 2025 will be the year of [frozen] vegetables,” she said.

Thanks to the agreement with Mercosur, sales doubled

General manager of Oriental Fruits, Wael Soliman, sees exports of his products to Brazil growing year after year. His first shipment to the country took place in 2022, after his participation in Apas. That year, 75 tons of garlic and 50 tons of frozen strawberries were shipped from Egypt to Brazil. In 2023, there were 700 tons of garlic and 300 tons of frozen strawberries. This year, by August, one thousand tons of frozen strawberries and between 700 tons and one thousand tons of garlic should arrive in Brazil from Soliman’s sales.

“This performance is due to the agreement with Mercosur. And because the Brazilian market is very large, with many consumers. We have a golden window with the garlic [product] because, with Mercosur, we can compete with China. Without Mercosur, it would be impossible,” he assessed. “This year, Apas is fuller, with more people and more space. I hope it also sells more,” he said.

The company Delta Brothers and Oriental Fruits are two of the companies that are at Apas at the stand organized by the Arab Brazilian Chamber of Commerce. Other companies from Egypt, as well as companies from Lebanon, Tunisia, Iraq and the United Arab Emirates were at two stands during the event.

 

Source: Comex do Brasil

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05.20.2024

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