   
  
WT/COMTD/RTA10/2  
 
14 November 2019  
(19-7768) Page: 1/2 
Committee on Trade and Development  
Dedicated Session on Regional Trade Agreements  
 Original: English  
 
FREE TRADE AGREEMENT  BETWEEN SOUTHERN CO MMON MARKET (MERCOSU R) AND 
EGYPT (GOODS)  
QUESTIONS AND REPLIES  
 The following communication, received on 13 November  2019, is being circulated at the 
request of the Parties to the Free Trade Agreement between Southern Common Market (MERCOSUR) 
and Egypt . 
 
 The document reproduces the questions addressed  to the Parties and the replies submitted . 
 
_______________  
 
 
Question from the delegation of Thailand  
 
4. GENERAL PROVISIONS OF THE AGREEMENT  
 
4.8 Services and Investment  (page 26)  
 
4.23. While trade in services is not covered by the Agreement, the Parties shall aim at 
achieving the gradual liberalization and the opening of their markets for trade in services 
in accordance with the provisions of the GATS (Article 24 of Chapter I). To this end, the 
Parties will consider, in the Joint Committee, the possible modalities for opening 
negotiations on market access on tra de in services. The Parties communicated that there 
were no developments on the issue.  
 
4.24. The Parties also recognize the importance of promoting cross -border investment 
flows and technology transfer as a means for achieving economic growth and 
developm ent (Article 23 of Chapter I). To increase investment flows, the Parties may 
cooperate through the exchange of information, the support of investment promotion 
activities, the potential negotiation of bilateral investment promotion agreements and the 
devel opment of mechanisms for joint investment.  
 
• As indicated in the paragraphs, the Agreement does not cover liberalization of 
services and investment. Do the Parties currently plan to negotiate market access 
for services and investment in the near future? If so, when do the Parties expect 
to start negotiations and which services and investment sectors will be covered?  
 
Reply : Egypt and the MERCOSUR States have not yet agreed on launching negotiations on 
liberalization of services or investment. This possibility will be discussed in due course within the 
joint committee responsible for the administration of the agreement.  
 
Question from the delegation of the Dominican Republic  
 
With regard to  paragraph 4.32 on page 26: "There are no specific provisions on small and 
medium -size enterprises in the Agreement. However, Article 23 of Chapter I provides that, 
to increase investment flows, the Parties may cooperate on the development of 
mechanisms fo r joint investment, in particular with small and medium enterprises".  WT/COMTD/RTA10/2  
 
- 2 - 
 
   
• What mechanisms could be introduced and what steps could be taken for this 
purpose?  
 
Reply : The joint committee in charge of the administration of the agreement will discuss in due time  
possible mechanisms and steps to encourage joint investments, including with regard to SMEs.  
 
 
__________  