SAO PAULO, June 24 (Reuters) - Brazilian retailer

Magazine Luiza and Chinese e-commerce powerhouse

Aliexpress have entered into an agreement for both firms to list

and sell products on each other's platforms, the Brazilian firm

said on Monday.

Aliexpress will sell products from its premium shopping

service Choice on Magazine Luiza's marketplace, while Magalu -

as the retailer is also known - will sell products from its

first-party operation on the Chinese firm platform in Brazil.

E-commerce companies from China have been posing a

threat to their local competitors in Latin America's largest

economy in recent years, often offering a broad range of

products at lower prices.

In addition to Alibaba Group ( BABA )-owned Aliexpress,

Sea's Shopee and Shein have also gained a foothold in the

Brazilian market, while PDD's Temu has entered the

market more recently.

Products purchased from Aliexpress on Magalu's

marketplace will be imported through Brazil's tax benefit

program Remessa Conforme, "boosting Magalu's cross-border

operations," the Brazilian company said in a securities filing.