If you are thinking about importing from Latin America, you probably don’t realize that Egypt holds a winning card that can save you thousands of dollars per shipment: the Egypt–Mercosur free-trade agreement. This guide explains what the agreement is, how it works, and most importantly — how you, as an importer, can make the most of it.
What is Mercosur?
Mercosur is the largest economic bloc in South America, with four founding members:
Brazil — Latin America’s biggest economy and one of the world’s largest food and industrial producers.
Argentina — a major agricultural and industrial power (grains, meat, by-products).
Uruguay.
Paraguay.
Together these countries form a huge market and an enormous manufacturing and supply base, and the agreement opens their door to you on preferential terms.
When was it signed and when did it take effect?
The agreement was signed in 2010 and entered into force on 1 September 2017 after ratification was completed. Since then it has been reshaping the trade map between Egypt and Latin America in the Egyptian importer’s favor.
How are tariffs cut? (the key idea)
The agreement aims to remove customs duties on more than 90% of traded goods, not all at once but through timelines split into "baskets" by product type:
Basket A: an immediate and full tariff exemption from day one.
Basket B: a 25% annual reduction until full exemption (completed September 2020).
Basket C: a 12.5% annual reduction through 2024.
Basket D: a gradual 10% annual reduction until full exemption.
In practice: many products from Brazil and Argentina have already reached zero or near-zero tariffs — a direct difference in your landed cost.
What does this mean for you as an Egyptian importer?
Simply: lower cost and stronger competitiveness. Imagine importing a product from Brazil that used to carry a 15% or 20% duty; under the agreement that rate may drop to zero. This saving:
Lowers the final landed cost per unit.
Gives you a wider profit margin or a more competitive selling price.
Makes Latin American products a serious, cheaper alternative to other sources.
Which products benefit most?
The agreement is broad, but the main beneficiary sectors include:
Agricultural and food products: soybeans and derivatives, sugar, meat, coffee, animal feed — many with large exemptions.
Industrial and intermediate goods: production inputs, raw materials, metal and chemical products.
Spare parts and equipment in some categories.
> Rule of thumb: before any deal, confirm your product’s HS Code and which "basket" it falls into — that determines the exemption you are actually entitled to.
A core condition: the Certificate of Origin
To benefit from the exemption, the goods must genuinely originate in a Mercosur country, and must arrive with a valid Certificate of Origin certified under the agreement’s rules. Without it you will not get preferential treatment, whatever the source.
The real-world impact
The numbers speak: Brazil’s exports to Egypt rose from about USD 1.7 billion before implementation to around USD 3.9 billion — reflecting the growing opportunity for Egyptian importers.
How Alto LATAM helps you
The agreement is a golden opportunity, but capturing it fully needs on-the-ground expertise:
Identifying the correct HS code and the exemption due.
Making sure the supplier issues a valid, certified Certificate of Origin.
Negotiation, sourcing, quality control, shipping and clearance — all the way to your warehouse door.
We handle all of this for you, turning the agreement from "information" into a real saving on your invoice. Contact us and start your first well-studied deal from Latin America.