Since the Brazilian and Israeli economies complement each other and do not compete with each other, there is still much potential to be exploited. The Israeli economy is entirely based on international trade – it imports and exports a lot and, with this scenario, Brazil can benefit from a qualified market.

For the Brazilian exporter, the good news is that Israel imports a lot and from several countries. Many items that are widely exported by Brazil, such as pulp and paper, furniture, plastics and footwear, among others, are imported by Israel. However, little of these Brazilian items are intended for the Israeli market. As soon as the Mercosur-Israel Free Trade Agreement was effective, 90% of the products that Mercosur exports to Israel had immediate elimination of import tax, therefore ensuring a greater competitiveness in the Israeli market for Brazilian products and from other Mercosur countries. The remaining 10% will undergo gradual reductions until the total elimination of the import tax.

For the Israeli exporter, the good news is that much of the Brazilian demand can be met by the Israeli industry, and we highlight the ICT, medical-pharmaceutical, agro-technology, water and sanitation, and security sectors. Of the products that Israel exports to Mercosur, 50% had immediate elimination of import taxes, and the others will undergo gradual reductions.

Another advantage that the Mercosur-Israel Free Trade Agreement presents is that the base rate for gradual reductions in import taxes is that of TEC 2007. This means that, although changes may occur in the political and economic scenario of the countries, the taxes were previously established, indicating predictability for the exporter. In addition, currently, almost 100% of the products already have a zero rate for import tax.

Brazil is a strategic country for Israel and, in view of this, we encourage both the Brazilian and Israeli exporters to further strengthen this trade relationship and further exploit the advantages of the Mercosur-Israel Free Trade Agreement. As highlighted, this agreement removes barriers to the goods trade, facilitating their movement and substantially diversifying trade opportunities between countries. In addition, it generates economic growth, increases technological and R&D cooperation, and strengthens cultural, political and social ties.

Source: https://www.israel-brasil.org/acordo