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Tension in Mercosur: Uruguay and China begin to negotiate a free trade agreement

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Tension in Mercosur: Uruguay and China begin to negotiate a free trade agreement

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Luis Lacalle Pou announced that negotiations are starting with China to sign a free trade agreement. photo of the presidency.

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Uruguay and China will begin talks in the coming days to seal a ALS (FTA) outside Mercosur, after the “positive” completion of the feasibility study carried out by both countries.

This was stated this Wednesday by President Luis Lacalle Pou during a press conference held at the Executive Tower in Montevideo, from where he also assessed the position of “open up to the world“that the South American country has.

“You know well that since this government took office, despite the pandemic, we have had a policy of foreign relations of connection with the world with a clearly open vocation”, said the president.

And he continued: “The one that started in September 2021, which was the feasibility agreement in collaboration with the People’s Republic of China, has been concluded and, with satisfaction, we can say that this conclusion is positive, we have reached a win-win agreement for both countries and now yes, formally initiate negotiations for a Free Trade Agreement

The president of Uruguay, Luis Lacalle Pou, has had crossings with Alberto Fernández due to Mercosur's trade policies.  Photo PABLO PORCIUNCUL / AFP).

The president of Uruguay, Luis Lacalle Pou, has had crossings with Alberto Fernández due to Mercosur’s trade policies. Photo PABLO PORCIUNCUL / AFP).

“Agreements mean prosperity, opportunity and work. Our vigilance from the beginning of the government has been to try to sell, exchange the products, raw materials, industrialization and technology of our country “, she stressed.

The president of the River Plate country had made public in September 2021 that Uruguay and China intended to pursue an agreement of these characteristics, despite the Mercosur’s position not to allow countries to negotiate deals outside the bloc.

When questioned on this issue, Lacalle Pou said that the Minister of Foreign Affairs, Francisco Bustillo, has already communicated with the foreign ministers or accredited ambassadors of Argentina, Brazil and Paraguay.

“In every Mercosur summit and in every case that we have had, we reaffirm the Vocation of Uruguayan opening. This does not contravene or oppose membership of the bloc “, she stressed.

Luis Lacalle Pou detailed his negotiations with China outside Mercosur.  photo EFE.

Luis Lacalle Pou detailed his negotiations with China outside Mercosur. photo EFE.

In accordance with this, he added: “From our point of view and with the international regulations in force in Mercosur, we can go on. We have also always said that we do not want to advance alone, we all know the weight that Mercosur has in the demographic and economic dimensions to advance together. What Uruguay was unwilling to do was stay “.

Likewise, he said he had communicated the news to the leaders of all the parties that make up the ruling coalition and also to those of the opposition political forces.

Tension in the Mercosur

Uruguay’s intention to move forward in free trade agreements outside the bloc has been one of the major points of conflict in recent Mercosur meetings, especially Argentina, which insists that this type of negotiation requires consensus of partners.

At the end of 2021, after Lacalle Pou’s advance, the then Minister of Production, Matías Kulfas, complained: “It is clear that Uruguay is a sovereign country and can make the most convenient decision. It can make a bilateral agreement with the China outside Mercosur or you can continue to Mercosur“.

It was almost a warning and in the same tone with which Alberto Fernández responded to the Uruguayan president when the latter said he did not want the blockade to become a burden for the partners. Then the Argentine president said that whoever he wanted “abandon ship“Which he did, out of the desire of the Uruguayans to sign agreements with third countries.

With information from EFE.

IT

Source: Clarin

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