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-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. (Reporting by Peter Frontini; Editing by Gabriel Araujo)