The Mercosur Summit (South American Common Market) adopted the free trade agreement with the State of Palestine, which it had submitted on April 30, after Brazil had submitted it to Paraguay, the bloc’s rotating president.
- The agreement shall be valid for 30 days from the date of its ratification.
- The agreement deals with opening markets for goods.
- The agreement opens the possibility of future understandings on access to services markets and investments.
“We are proud to be the first country in the bloc to sign a free trade agreement with Palestine, but I cannot help but feel sorry, because this is happening in a context in which the Palestinian people are suffering the consequences of an absolutely irrational war,” Brazilian President Luiz Inacio Lula da Silva said in his address to the assembled leaders.
pending agreements
The head of the Palestine-Brazil Institute (Ibrasbal), Dr. Ahmed Shehadeh, said that the signing of the trade agreement was among 4 agreements that were signed by the presidency of Brazil and the State of Palestine, but they have not entered into force until today, and some of them remained stuck in the Brazilian parliament, and some of them have passed all stages of voting and ratification in parliament.
Shahada added in a statement to Al Jazeera Net that there are four agreements awaiting ratification by the Brazilian presidency. After the Palestine-Brazil Institute contacted the Brazilian embassy in Ramallah, and specifically Ambassador Alessandro Candias, we were asked to contact the new government in Brazil after Lula da Silva assumed the presidency last year, and to seek ratification of these agreements that have been awaiting ratification for many years.
He pointed out that 3 agreements were signed during Lula da Silva’s visit to Ramallah in 2010, while the fourth free trade agreement was signed in Uruguay in late 2011.
He added that the pending agreements include agreements related to educational, cultural and technical cooperation, expressing his hope that they would be ratified as soon as possible.
Political and commercial gains
Brazilian Federal Congressman Joao Daniel says the recent activation of the trade agreement symbolizes international recognition of Palestine as a legitimate trading partner, which will strengthen Palestine’s political, diplomatic and economic position.
Daniel added in a statement to Al Jazeera Net that the agreement could strengthen the Palestinian economy by providing trade opportunities with Mercosur countries, which would create job opportunities and stimulate growth.
He pointed out that the agreement will help dismantle trade dependence on Israel and will facilitate the access of Palestinian products to the vast Mercosur markets and vice versa, in addition to transferring knowledge and technologies and exchanging expertise.
Shehadeh stressed that the importance of the agreement comes from its timing, as the Palestinian situation is currently characterised by limited commercial and financial independence under the occupation. However, he pointed out that Palestinian exports and imports with Mercosur now, and under this agreement, will be exempt from taxes, but there is a political dimension that appears in establishing recognition of the State of Palestine.
Easing restrictions
Daniel says the agreement will stimulate bilateral trade between the two sides, and will help ease Israel’s restrictions on customs privileges and trade protection mechanisms, and eliminate or reduce customs tariffs.
Shehadeh says that no party in Brazil or Palestine has accurate figures for the volume of trade exchange, but he hopes that trade exchange will increase after the signing of the free trade agreement. He also hopes that Palestinian exports will be able to compete in the future, especially products looted from settlements and occupied territories that reach Brazil, especially agricultural products such as dates.
