Israel and Mercosur: 7th round ended with progress on free-trade agreement

The goal is to try to reach an agreement by the year-end. Mercosur is the largest trade bloc in Latin America, and includes Brazil, one of the world’s ten largest economies
 
Israel and Mercosur (Mercado Comun del Sur, the Common Market of the South, comprising Brazil, Argentina, Uruguay, and Paraguay) said last week, at the end of the 7th round of talks, that substantial progress had been made in negotiations for a free-trade agreement.
 
Mercosur and Israel representatives held intensive discussions during the week before last week in Jerusalem. The Israeli delegation included officials from the Ministry of Industry, Trade and Labor, Ministry of Agriculture, and custom
 
Mrs. Meirav Gonen , head of bilateral agreements at the Ministry of Trade & Industry said that the goal is to try to reach an agreement by the year-end. In negotiations to date, the parties have reached agreement on most issues, and mechanisms, including the settlement of disputes, guarantees, and rules of origin.
 
Mercosur is the largest trade bloc in Latin America, and includes Brazil, one of the world’s ten largest economies. Mercosur operates as a roof organization, under which member countries have maintained joint foreign economic relations for 15 years.
 
Ministry of Industry, Trade and Labor foreign trade administration director Boaz Hirsch said, “These are important negotiations with a bloc of countries, to which Israeli industry strongly wants to export. When negotiations end it will be the first trade pact outside Latin America. Hirsch added that "We see the potential for expanding exports to these countries after this agreement is signed.”
 
Israel’s trade with the Mercosur totaled US$1.1 billion in 2006 out of which US$550 was exports and US$550 million imports. Brazil was the largest trade partner with which trade was 65% of total trade with the trade bloc. Israel’s main exports are chemicals and communications equipment. Israel’s main imports from Mercosur are food and agricultural products, including meat, grains, soy beans and fruit concentrates.