* Brazil's plan to fund exports still being discussed
* Brazil says its firms not worried sanctions threat
(Adds quotes from minister, background)
By Shaiaa Fayed
CAIRO, April 14 (Reuters) - Brazil has not finalised a plan to fund exports to Iran, the Brazilian trade minister said on Wednesday referring to a move that would boost engagement with Tehran as Western states seek to tighten sanctions.
Brazil wants to increase exports to Iran, which reached $1.2 billion last year and included beef, steel, and car parts. Experts say the real figure is higher as many goods are shipped via Dubai.
Brazil's finance minister, Guido Mantega, said on Tuesday the government would finance exports of food to Iran.
"We are discussing the possibility to have a fund for financing exports from Brazil to Iran," Development, Industry and Trade Minister Miguel Jorge said in Cairo after holding talks in Tehran this week.
Asked if Brazil was concerned about sanctions on Iran, the minister told a news conference: "The question should be driven to the companies ... They are not worried about the possibilities of the sanctions."
Brazil said on Tuesday that United Nations sanctions against Iran over its nuclear programme could make the Islamic Republic more radical and cause its population to revolt.
Brasilia has urged continued dialogue with Iran even as Western powers push for a new round of sanctions in the U.N. Security Council over a programme they believe is aimed at developing nuclear bombs. Iran denies any such aims.
Jorge was in Cairo for talks with his Egyptian counterpart, Rachid Mohamed Rachid, that included discussion of a free trade agreement with the North African country, which is also the Arab world's most populous nation.
German carmaker Daimler said earlier on Wednesday it will almost entirely sever business ties to Iran, including halting a plan to export trucks, citing the policies of the current Iranian leadership.
For FACTBOX on Iran sanctions click on
For FACTBOX on companies severing ties with Iran see (Wwriting by Edmund Blair)