Brazil, Egypt Advance In Project At Suez Canal

(MENAFN- Brazil-Arab News Agency (ANBA)) São Paulo – The regional office of the Arab-Brazilian Chamber of Commerce (ABCC) in Cairo, Egypt, hosted the discussion session on the establishment of a Brazilian logistics structure in the Suez Canal Economic Zone. The idea is for it to supply Brazilian products such as sugar, corn, soybeans, and sesame sustainably to Egypt, and for these products to also be reexported to neighboring markets.

The meeting, which took place earlier this week, was attended by the Deputy Ambassador of the Brazilian Embassy in Cairo, Bernardo Henrique Penha Brasil, the Assistant Deputy Minister of Egyptian Foreign Affairs Egypt for Americas Affairs, Ambassador Ashraf Mounir, and the dean of the College of International Transport and Logistics at the Arab Academy in Alexandria, Sarah Al-Gazzar.

Also present were the regional director of the ABCC, Michael Gamal, the advisor to the head of the Suez Canal Economic Authority, Amani El-Essawy, and the assistant general manager of the Central Unit at the Suez Canal Economic Zone, Mohamed Abu El-Dahab. ABCC's Institutional Relations Coordinator Rania Mohamed Hagrass was also present.

Gamal (C) received representatives from Egypt and Brazil at the office

Gamal said that the project will be a turning point in the trade relations between the two countries and will contribute to increasing trade exchange to unprecedented rates. Speaking about the possibilities that will arise from this zone, from Brazil's trade with Egypt to re-exports to neighboring market, Director Gamal said the structure will meet the urgent needs of Arabs and Africans. He mentioned the supply of sesame to Arab countries, which used to e 90% from Sudan, and the need to find an alternative, with Brazil being the most suitable option.

Brasil stressed the importance of free trade agreements between Egypt and Brazil, which have not been optimally exploited since their signing in 2017, and the focus should be on value-added products, such as corn, soybeans and packaging materials, to maximize the benefit of these agreements.

Participants shared their views on the project

He stressed that there are directives from the Brazilian government to enhance economic, trade and investment relations with Egypt, and the Brazilian Embassy in Cairo will provide political and technical support for the success of this project. Additionally, a series of meetings will be held to learn more about the details of implementation and mutual benefit for the two countries.

Mounir said the relations between Egypt and Brazil are historical, and there is continuous coordination between the two countries in all international forums.“We're constantly working to strengthen them at all social, cultural and economic levels,” stressing that Brazilian President Luiz Inácio Lula da Silva has played a major role in the rapprochement between the Arab peoples and Brazil.

“We're working to restore that spirit once again, especially since Brazil isn't just an important trading partner for Egypt but also adopts Arab issues in various international forums,” said Mouni.

El-Dahab stressed the need for the logistics zone project not to be limited to storage and redistribution only but include value-added activities, such as manufacturing, which will double the economic return for Brazilian companies.“Transforming raw materials such as coal, corn and soybeans into finished products, such as animal feed and fish feed, will achieve great economic benefits for Egypt,” adding that this project is in line with Egypt's national goals of achieving self-sufficiency in basic products.

Essawy also stressed the welcoming of establishing the Brazilian logistics zone as a first stage that can be built upon to establish value-added industries, especially since the Suez Canal Economic Zone has already attracted investments from many countries. She also stressed the importance of building partnerships with the specialized Brazilian business community and that this matter will be included on the agenda of the visit of the Chairman of the Authority to Brazil during the coming period.

Re-export

Al-Gazzar said that the project represents a strategic alliance between the two countries, and not just import and export. She added that the Egyptian government has a strategy to raise its exports to USD 100 billion annually, which requires adopting the concept of“re-export” by establishing logistics centers to import raw materials, add value to them and re-export them.

Finally, it was agreed to exchange trade data and the maritime routes for the trade of the targeted Arab and African countries, and it was also agreed to formulate a detailed presentation in this regard to be discussed with the Brazilian side at the earliest opportunity.

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Translated by Guilherme Miranda

SCZoneArab-Brazilian ChamberArab-Brazilian Chamber

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