Tariff reductions under the seventh stage of Egypt-Mercosur Free Trade agreement

The Central Department of International Cooperation, affiliated with the Egyptian Customs Authority, recently issued Decision No. 41/2023. This decision enforces the seventh stage of tariff reductions under the Egypt-Mercosur Free Trade Agreement and reduces tariffs on specific goods imported to Egypt from Mercosur countries. This decision references the text of Article (11) of the Protocol to the Free Trade Agreement (FTA) signed between Egypt and the Common Market of the South (Mercosur). This agreement has been in force since September 1, 2017. The Mercosur countries that are signatories to the mentioned agreement include Argentina, Brazil, Uruguay, and Paraguay. The primary objective of this FTA is to lower tariffs between Egypt and the Mercosur countries by granting preferential treatment to Egyptian exports accessing the Mercosur market and by decreasing the cost of Egyptian imports from these countries.

The new customs reductions, designated for the seventh phase of goods imported to Egypt from Mercosur countries and effective from September 1, 2023, are as follows:

1. Schedule (C) products: 12.5% reduction (Tariff reduction percentage increases from 75% to 87.5%).
2. Schedule (D) products: 10% reduction (Tariff reduction percentage increases from 60% to 70%).