Weekly Report - 20 July 2017 (WR-17-28)

ARGENTINA | Ratifying Mercosur’s FTA with Egypt. On 19 July, the Argentine government led by President Mauricio Macri signed the free trade agreement (FTA) between Egypt and Southern Common Market (Mercosur) regional trade bloc – that comprising Argentina, Brazil, Paraguay, Uruguay, and Venezuela (currently suspended) – and Egypt. The agreement had been signed in 2010 by all Mercosur member countries bar Argentina. The FTA eliminates tariffs on 60% of all goods traded with Egypt including food (cereals, olives, meat, fruits, vegetables), cars, machinery for hydrocarbons extraction and chemical products, among others. The deal also stipulates that 100% of all goods will be traded tariff free within ten years. The announcement followed a recent visit to Egypt by Argentina’s Vice-president Gabriela Michetti, who highlighted the importance of strengthening Argentina-Egypt trade and boosting economic cooperation. A statement issued by Argentina’s foreign ministry notes that Egypt is currently the seventh-main destination for Argentine exports, which totalled US$1.8bn in 2016.