Three former presidents admit Mercosur has failed and has Uruguay ‘trapped’
Three former Uruguayan presidents recommended the current administration that without abandoning Mercosur, it should look at major trade blocks associations but at the same time a strong self criticism is needed because maybe the problem is not in Mercosur but in Uruguay.
The absence of conditions in the Uruguayan economy to compete for markets and investments, the wrong energy and foreign policies and the infinite tolerance with the bilateral mechanism imposed by Argentina and Brazil in the region are the main causes by which Mercosur has seen its rules and institutions erode and most probably leading it to a major failure.
The three leaders are Julio Maria Sanguinetti (1985/1990 and 1995/2000); Luis Alberto Lacalle (1990/1995) and Jorge Batlle (2000/2005). The only living president missing at the conference was Tabare Vasquez (2000/2005), who belongs to the current ruling coalition.
“We need powerful friends and partners but distant” said Lacalle who suggested Uruguay should reach trade agreements similar to the one with Mexico, with China, United States, Canada, South Korea and other countries more stable for Uruguayan production.
“Mercosur was an ideal, but 21 years later we have to face reality: it has failed” said Batlle who recalled that in the midst of one of the worst European crisis in memory, country members have agreed to keep markets and economies “as open as possible”.
Batlle also invited to leave aside Mercosur and think if the problem is not Uruguay since “we are not competitive at world level”. He added that Uruguay has not taken advantage of the extraordinary conditions since 2004: “we have high inflation; excessive fiscal pressure; hyper regulation in all markets; public utilities rates out of touch with the world; we’re cut off from communications technology; a dreadful education system; weakened infrastructure and huge domestic costs”.
So even if Mercosur was working wonderfully, “we would have deep serious problems of competitiveness, and I anticipate serious energy shortages if we don’t address the issue now” insisted Batlle.
Lacalle bitterly criticized the foreign policy of “following” on the tracks of Argentina which “does not benefit us in investments terms or that we are a safe, sound, reliable and responsible financial hub”.
Mercosur was conceived as a trade block but has become totally political and Uruguay is seen begging pan in hand for its rights which are theoretically ensured in the charter. “Simply, Mercosur is not working and, things are not for ever” added Lacalle.
“If Mercosur is empty of that for which we created it and full of political commitments for which it was not planned, it’s anything but Mercosur”.
Finally Lacalle warned that if Uruguay follows on Argentina’s path of elevating the common external tariff, “it means we are jailed in Mercosur for life”. Hopefully President Jose Mujica and Foreign minister Luis Almagro will react and say Uruguay does not support the initiative.
Former president Sanguinetti said he did not recommend abandoning Mercosur although he admitted a serious erosion of rules, codes and institutions which means there has been a slackening of the project “and gives us the liberty to look for free markets”.
Sanguinetti recalled that the government administration of former president Tabare Vazquez let pass by “a gigantic historic opportunity” when the US proposed to Uruguay a free trade agreement.
“Unfortunately the political party to which Vazquez belongs ignores that the Berlin Wall has long fallen and said no, leaving us locked in this situation and submitted to the pressure we are suffering”, added Sanguinetti.
One of the questions from the auditorium referred to the optical fibre system which the Mujica administration wants to be exclusively managed by Uruguay’s telephone company, Antel.
“We’ll be back to the time of messenger pigeons if that happens” said Battle who insisted our path is to follow the US, China, Chile, India, “those are the markets”.
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No he doesn't. EU for European Union and it's a failure. Even if would confuse the EU with the Euro...it's a failure and it was designed to fail...you make more money out of chaos.
EU, NAFTA, CAFTA, Mercosul/Mercosur are failures. After all, nations do not have friends, they have interests and their own interests comes first. The “bogus” free trade era is over and there will be no FTA/FTAA...its finished.
letting argentina and CFK interfear with it .
correct !
Lucky, lucky, lucky little Uruguay!
That trio of Presidents are the ones that drove the country into its misery 2002, very few in Uruguay pays attention to what they have to say as they have no credability left whatsoever, maybe you should do the same. I mean, if you feel the need to put a Bordaberry in charge of the party you represent, it's a major indication that you've messed up :) They all represent the unofficial “Partido Rosado” :)
Uruguay needs to get away from so much financial ties with Brazil and Argentina if it wants to survive. Being so dependent on those to countries will bring nothing but stagnation and depression as their economies continue to behave erratically.
I live in a fantasy world? Wake up and face reality...
You think that old commie has been good for Uruguay think again...
Boom.
You think it is bad here? It's nothing compared to what you are going to see shortly.
In fact where I live the economy is tremendous! Financially I have had the best 2 years of my life. Although I expect it to get even better when we get a new Prez.
“You think it is bad here? It's nothing compared to what you are going to see shortly.”
No, se te va a hinchar mucho mas :)
In my own experience in industry UTE the national monopoly for the supply of electricity is bereft of anyone at the top of the business having an intellect comensurate with the function they are supposed to be doing.
And the economics guy in government thought it great that UTE put it's prices up 'to get rid of excess costs'. I cannot say how much I am frustrated by these goons.
The cost of electricity in Uruguay is obscene and a national disgrace. How working people with families can cope with this is utterley beyond me.
And, like all national monopolies the world over the workforce couldn't give a damn. And given the management, why should they?
The cost of electricity is skyrocketing all over the world, as a result of our abuse of the world's resources, don't use Uruguay as an example. That said, I might agree with your analysis on UTE :)
Do you know nothing about the USA? Have you ever been here? Did you get sent home by ICE? is that why you are so bitter and jealous?
No, we got visited by the CIA here teaching our military how to use electricity to torture their own people. Actually, we got one of the bastards, Dan Mitrione :)
How can you be so opinionated about a place you have never seen? Most people that come to visit from SA love it and a lot stay even if they have to be illegal.
Seems dis-ingeniousness to bash my country without having first hand knowledge of it!
Regrettably someone has stolen my alias and been posting under false pretences. Trying to pass themselves off as me, as it is evident from “my” posts above, this imposter lacks my ability to think critically, so please disregard all the misguided drivel posted above.
yanqui
You are right, what can I say. I think my dislike of your country is inherited...
But still you have made naught to proove me wrong yet...
“Its all the western worlds fault we elect corrupt officials!!!!!”
Uruguay should follow Chile's lead.
What do you base that fact upon? Maybe you asked “most” of the inhabitants of the world? Or is it a personal conviction? The case of Suarez is a typical case of western arrogance, taking a foreign word (negro) and translate into something racist. All fine you translate our words, but don't force your prejudices upon us. By the way, Evra said something to Suarez about his sisters genitals, check the FA report. Finally, the FA is no judging instance, and without any proofs, they chose to believe Evra's statement ahead of Suarez', stating he was “more reliable”. All in all, a British farce, just look at Terry :)
You are wrong on so many levels... First off, Suarez admitted to have said “negro”, in spanish. In that language, it means black; “un gato negro” = “a black cat”, not “a nigger cat”. “Un sofa negro” = “A black sofa”, not “a nigger sofa”. Fair enough you've made every word related to Latin's Niger to something racist, but that is not the case with the rest of the world, again, don't project your prejudices on anyone but yourself. And before you mention it, yes, they were speaking spanish, Suarez AND Evra, well, according to Evra they were...
You really need proofs to what Terry said? Just read his lips :)
First phrase he said was this:“Porque tu eres negro”, meaning “Because
you are black”.
Second one was this: Mr Suarez replied “No hablo con los negros”, meaning “I don't speak to blacks”.
This shows that he was in fact using this in a racist manner towards Evra.
Didn't Evra get banned by the French Football Association for leading the players revolt against Domenech? Pretty active for a man that never complains about anything, don't you think?
As I said he never complains unless it's serious, and it was serious at the time.
Finally, I'll just say that Suarez is in the wrong because he came to the UK knowing that he can't use the word negro as it is deemed racist, or offensive. He deserves to be punished for calling him a negro, end of.
uruguaybr.wordpress.com/2012/05/25/uruguayan-government-believes-raising-mercosur-tariff-on-imports-is-not-ideal-for-uruguay/
Guzz a great historical recount of how the white settlers (of which you are obviously one of the descendants of) trashed the local inhabitants of SA and stole there land?! that is what your talking about is it not?
One thing however IS crystal clear. Uruguay needs to get from under the skirts of The Mad Bitch of Argentina asap. We do not need the collateral fall-out when she finally manages to crash the economy big-time.
What we don't need is to sell the cow cheap and buy expensive meat...
We need to get our own production going, and take control of our own natural resources. Finally, we need to stop complaining and bloody start working.
I totally agree but would add that the fiscal drag caused by the plethora of 'civil' servants (who do their best to ignore you - much like the UK ones under New Labour) needs to be addressed.
There should be an immediate stop to the government employees who only turn up one day a week or when they are 'phoned at home but collect a full wage. Even though I have only been here 12 months even I know of one personally at a very high level in the Intendencia. I am informed that this is endemic.
Then, there should be a strict review of whether the job is necessary or can they be made redundant.
THEN these people need retraining to actually do useful, productive work. The money saved by termination should be ring fenced and offered to small businesses to encourage them to grow or come to Uruguay to start a business thus employing the now productive ex-civil servants.
These people then pay taxes and the goverment is in a win-win situation.
BEFORE ANY LATAM PERSON SAYS THEY PAY TAXES ANWAY: yes they do, but who ACTUALLY pays for them, who fronts the money up? Think about it: clue 1 - it's NOT the civil servant! WHERE does the governments money come from: clue 2 - see clue 1.
it is Mercosur,
and - specifically - Argentina's anarchic behaviour within Mercosur which is destroying it ... and consciously destroying Uruguay (and Paraguay) along the way.
I notice you have not answered the question though. If you knew the answer you would not have posted the drivel that you have.
The civil service 'work' for their money (what a joke) but they do not EARN the money, so in effect when they go to the shops as you put it they are spending OTHER PEOPLES MONEY.
That was another clue.
I would have thought better of your post if you had pointed out that my suggestion is conditional on timing. Otherwise, yes, there would be people out of work looking for a job or on the training courses necessary to enable them to do real PRODUCTIVE work and it is THESE PEOPLE WHO NEED THE SUPPORT, not the hangers on.
You just cannot move further forward than your Old Labour nonsense can you?
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