In January 2004 MERCOSUR received a proposal from Egypt to negotiate a free trade agreement, on the basis of discussions held at the G-20 meeting in November 2003. At the XXVI ordinary meeting of the MERCOSUR Common Market Council meeting a framework agreement was signed between MERCOSUR (composed of Argentina, Brazil, Paraguay and Uruguay) and the Arab Republic of Egypt. This was incorporated by MERCOSUR as Common Market Council Decision 16/04. This agreement anticipates the negotiation of a free trade agreement with an initial stage constituted by the negotiation of a fixed preference agreement.
The second round of negotiations was held in Montevideo, Uruguay in November 2009. The third round of negotiations took place in Cairo, Egypt on 09-11 March 2010.
On 02 August 2010, during the 39th Summit of
Heads of State of MERCOSUR and Associated States,
MERCOSUR signs free trade agreement with Egypt.