Israel, Mercosur nations negotiating free trade pact

A declaration of intent was signed last week by leaders of the Mercosur nations and Israel Ambassador to Argentina, Rafael Eldad, to begin negotiation for the setting up of a free trade pact between Israel and Brazil, Argentina, Uruguay, and Paraguay.
 
The declaration, signed in Asuncion, Paraguay, last week signals the first step Israel has ever made to tighten trade link with the four Mercosur nations. Exports to the Mercosur countries totaled $554 million, mostly agro-chemicals, machinery, communications equipment and plastics. Imports totaled $386 million, including plants, meat and poultry.
 
Ronit Kan deputy director-general, foreign trade administration at the Ministry of Industry, Trade and Labor said that the declaration was a significant breakthrough, since the Mercosur bloc was the third largest trading bloc after the North America Free Trade Agreement (NAFTA) and the European Union (EU).
 
According to Kan the agreement will expand Israel's export opportunities to South America, and improve Israel’s competitive position vis-א-vis Europe and the US, with which the Mercosur bloc is considering a trade agreement.
 
Kan noted that Customs duties in the Mercosur bloc average 11%, and are even higher on some Israeli exports.