The high-profile government and business delegation to Brazil, led by President Shimon Peres, is concluding its visit with two new agreements and ratification of a region-wide free trade agreement with Israel.
On Thursday, Brazil's lower legislative body, the Chamber of Deputies, ratified a free trade agreement (FTA) originally signed by Israel and the Southern Common Market (known as Mercosur or Mercosul) in 2007. Mercosur, modeled on the early stages of the European Union, includes Argentina, Brazil, Paraguay and Uruguay. It was founded in 1991 to promote free trade and the fluid movement of goods, people and currency among South American states. Venezuela, Colombia, 
The FTA will gradually eliminate tariffs on 90 percent of the trade between Israel and Mercosur.
Chile and Ecuador are currently in the process of integration into the regional common market, as well. The FTA with Israel was the first of its kind signed by Mercosur states with a third party.
Once fully implemented, the Israel-Mercosur FTA, already ratified by Uruguay and Paraguay, will have tremendous economic impact. Currently, Mercosur is seen to represent approximately 270 million people and a combined GDP of three trillion U.S. dollars. The FTA will gradually eliminate tariffs on 90 percent of the trade between Israel and Mercosur states, which totalled about two billion U.S. dollars in 2008.
The decision to ratify the FTA at this time was made in honor of the state visit of President Peres to the South American country. This vote rejected a recommendation by the Brazilian Parliamentary Commission on Foreign Relations and National Defense against ratification of the FTA until Israel accepted the establishment of a new Arab state in Judea and Samaria. The ratification has one more stage, at the Senate level of the Brazilian National Congress.
Argentina has yet to ratify the FTA with Israel, making it the only remaining member of Mercosur not to have done so. President Peres is due to visit Argentina on Sunday.
Bilateral Agreements Signed
Tourism Minister Stas Misezhnikov, who is currently visiting Brazil and Argentina along with President Peres, signed a bilateral tourism agreement with Brazil. The two sides hope to grow tourism traffic between the two countries, while expanding joint activities with wholesalers and upgrading the connections with new and existing airline companies. The addition of the Tel Aviv-Sao Paolo route by El Al in May 2009 contributed significantly to increased marketing capacity and tourism traffic from this corner of the world, according to Tourism Ministry officials.
"The Tourism Ministry sees great importance in strengthening ties with the South American countries, both in order to encourage tourism to Israel and to promote cooperation in various areas. The Tourism Ministry will increase its activities over the next few years with the major source countries for incoming tourism, while expanding activities in other countries including South America," said Minister Misezhnikov.
During his visit, the Tourism Minister is meeting with heads of the local tourism industry, high-profile personalities in the Brazilian Jewish, Catholic and Evangelical Christian communities, political leaders and journalists. This trip is the first working visit of an Israeli Tourism Minister to South America in a decade.
In addition to the bilateral tourism agreement, Misezhinikov also signed an extradition agreement with the government of Brazil.
Accompanying President Peres and other government officials on this official visit to South America are 40 Israeli business leaders.