Mercosur: Uruguay backs trade deal with China

Marked by the absence of Brazil’s president Jair Bolsonaro and important announcements on July 20th, the 60th Summit of Heads of State of Mercosur and the Associated States was the scene for a clash between the presidents of Uruguay and Argentina over plans to conduct bilateral negotiations for a free trade deal with China. Since 2000, Mercosur rules have made it mandatory for member-states only to negotiate agreements of such nature jointly.

Uruguayan President Luis Lacalle Pou, who took over the bloc’s rotating presidency last week, recalled that the country recently completed the feasibility study to begin negotiations with China. “Indeed, we shall start the process soon. But, of course, when we finish this stage, the first thing we want to do is call all Mercosur partners to continue negotiating altogether,” he assured.

Even so, the Uruguayan president maintained that the country has the right to continue bilateral negotiations with the Asian giant. “It is of our collective interest since it is not only a demand from the current government but a demand of two or three past administrations as well. It is a national desire to head in this direction. If we can do so with our Mercosur partners, that’s better, but if not, we will move forward on our own. We have peace of mind that this does not fracture or break our organization,” he emphasized.

Talks with Turkey

Lacalle Pou added that, in addition to China, Uruguay plans to advance in bilateral negotiations with other blocs and countries, such as Turkey. “We will immediately inform Mercosur when there is progress, as we did with China. I do not doubt that the best way to protect my nation and my people is to go out into the world,” communicated the Uruguayan president.

Argentina in favor of further unity

On the other hand, Argentine President Alberto Fernández re-vowed to support bloc negotiations, citing the recently-announced trade agreement between Mercosur and Singapore. For him, keeping the group together is essential to face the economic and geopolitical challenges of the covid-19 pandemic and the war between Ukraine and Russia.

“The developed world’s primary concern is where they will acquire their food and energy. We can take advantage of this once-in-a-lifetime chance if we know how to agree. Also from an ethical standpoint, we must produce the food the world requires,” he argued. “Our continent has what the world is looking for, but if we are not more united than ever, we risk committing the worst mistakes,” warned him.

Fernández asked the other Mercosur countries, especially Uruguay, not to be fooled by the idea of seeking individual solutions to problems that affect everyone. “After the success of the agreement with Singapore, why don’t we jointly review the trade deal with China? Then, this arrangement will be much stronger. I won’t oppose analyzing whatever needs to be analyzed,” he concluded.

Source: Canal Rural

To read the full original article, please go to: https://www.canalrural.com.br/noticias/economia/mercosul-uruguai-defende-acordo-comercial-com-a-china/

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