Uruguay’s economic-trade relations with Argentina at ‘their worst moment in a long time’
The economic-trade relations with Argentina are going through ‘their worst moment in a long time’, and the latest measures announced by the government of President Cristina Fernandez have a ‘very harmful effect’ on Uruguay, said Vice-president Danilo Astori on Friday.
This week the Argentine tax revenue office, AFIP increased from 15% to 20% the levy on overseas travel and expenditure, which also now includes tourism packages and transport in the visited countries, whether paid with credit or debit card and even cash.
“I don’t want to invade sovereignties but I want to stress that all this harms Uruguay considerably. We are in the worst moment of our economic-trade relations with Argentina in a long time”, said Astori.
Argentina had adopted an economic policy with a clearly different emphasis to Uruguay’s: extremely protectionist regarding international relations, very interventionist and excessively regulatory, which “does not anticipate good results”.
For Uruguay, Argentina is the main source of tourists and the latest package comes just a few hours before Holy Week when traditionally Argentines flock to de-stress in the neighbouring country.
To this must be added the trade restrictions imposed by Cristina Fernandez government, the dollar clamp which created parallel markets with a gap of 70% with the official exchange rate (5.10 and 8.75 Pesos).
Since Monday the dollar in the black and parallel market climbed 10% which becomes an impediment for trade and encourages further rejection of the Argentine Peso.
Astori recalled that this summer season Uruguay implemented some measures to counter Argentina’s restrictions and attract tourists, and “to a great extent it was successful; the number of Argentines crossing the River Plates did not suffer a dramatic fall, maybe they spent less, but the Argentines kept coming”.
Regarding trade and despite Mercosur Uruguay has been facing for several years restrictions to exports because of Argentina’s non automatic licences on imports and later the sworn statements before any overseas purchase is approved.
Uruguay’s Economy minister Fernando Lorenzo last September had warned exporters “to forget about Argentina” and look for new markets.
President Jose Mujica in one of this daily broadcasts said that the relation with Argentina had become an ‘impossible mission’, and according to Uruguay’s Executive sources making trade claims to Buenos Aires has fallen in the list of priorities, “best efforts are concentrated in reaching agreements with Brazil”.
Astori revealed that the government is betting on Brazil and has “a top level group is working on the issue and closer ties with the northern neighbour”. Uruguay is targeting the so called Pacific alliance made up of Chile, Peru and Colombia, which “have policies promoting open markets and foreign investment. We want to reach specific accords with this alliance”.
“We are also looking to Southeast Asia, Russia, India where we have detected promising potentials” added the Uruguayan Vice-president.
Likewise Uruguay’s Chamber of Tourism has requested the government to further extend the measures approved before the 2012/13 season to attract Argentine tourism which includes the reimbursement of 22% VAT on gastronomy and car rental expenses; 10.5% on rents, free shops and a 25 dollars fuel bonus for each car.
The benefits end of March 30 but the chamber is requesting its extension since this year Holy Week for the Argentines extends from Wednesday to April 2, or Malvinas Veterans Day
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28 comments Feed
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Prices are good and negotiable.
And, unlike the Government of AR, the Uruguayans are very nice to foreign investors.
How's the isolation going?
The Pacific Alliance is more a philosophy than a set of rules. To join you pretty much have to liberalise your economy, open it up and be willing to look beyond trade solely with other South American countries.
It is the exact opposite of Mercosur.
Uruguay has to find its niche. Singapore is surrounded by larger neighbours, both poorer and more unstable. And yet it managed to make itself rich, stable and successful in spite of this.
One by one, they grow as, argentina slips slowly below the waves,
Uruguay , brazil , who’s next.
.
My child,
Do not be bitter at the fact Argentina rejects your way of life and economic philosophy. This is what it comes down to isn't it, Argentina and argentines rejecting everything Europe, the USA, and the other Latin American nations hold so sacred.
Remember my child, only God is to be held sacred, not political or economic philosophies.
“ My child” indeed Have you got out of the womb yet? Or is your daddy beating a tattoo on your mummys tummy saying the Malvinas son Argentinas?
Respond???
To what??
Nothing was said.
'night all.
Yes, let us list those things:
Freedom of Speech
Economic growth
Low inflation
Responsible government
Pride
Countries in Europe, the USA and Latin America” might not have all these things, but at least they strive for them.
Argentina in the words of an Argentinean rejects these things. And the rest of the world is watching and almost laughing at the antics of their leader these days.
The prez is and old incompetent drunk commie and possibley scared of CFK.
I find him repulsive
I hope for the people's sake they see what is happening and make their gov't do something about it.
Or else they're doomed to CFK failures
WAKE UP URUGUAY! WAKE UP!
That statement alone shows that Argentina's latin america's own brothers are now giving up on dealing with Argentina. Brazil, the big latin brother has already started pulling out. Chile sees Argentina for what it is. Venezuela in no position to trade and struggling not to drown, there is no one to keep Argentina's self destructive policies from killing itself. Who is left to trade with? Who has good trade relations with Argentina....Syria? Iran? North Korea? Nigeria? Oh yeah, they will all bring wealth. Of course China is there to usurp all the natural resources it can to continue it's own expansive to meet the demands of the USA and Europe. Argentina is where Chavez was a year ago healthwise.
i am wondering what Briton will post now in response to #7
is 6 pm in the southwest of the usa ....and 2 am in Cornwall
,,,,,,,,,,,,,,,,,,,,,,,,
We don’t live in cornwall,
But no I was not in bed, one was watching reign of fire on dvd,
Cant spend all your,, life onhere,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Anyway,
Its ,20.00 pm, in herts England uk.
As you seem interested in time
My response to [7]
,,,,,,,,,,,,,,,
// Do not be bitter at the fact Argentina rejects your way of life and economic philosophy///
[ im not, just sad that the people suffer whilst its government screws everything up ]//
,,,,,,,,,,,,,,,,,,
// it comes down to, Argentina and argentines rejecting everything Europe, the USA,//
[not true, if you rejected all that you buy, trade received, you would be a 7th world nation, now, instead of a 3rd world nation,
,,,,,,,,,,,,,,,,,,,,,
// Remember my child, only God is to be held sacred, not political or economic philosophies.//
,,,
[remember my child, until you can prove that god actually exists,
[ then political economic and philosophies, that do exist, is all we have, until something better comes up.]]
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Boy, how you envy the British .lolol.
response to a nothing, is nothing responded too..
the removal of CFK , may well benifit all of south America,
perhaps a suggested holiday , non-return may help.
A camping holiday in Cumbria at the moment, in 16 foot snow drifts, a 2 man tent, CFK and Timmerman cuddling and burning Pesos to keep warm!
tinman and CFK,
freezing together .lol.
Oh, Sussie,
You're a “Royals Watcher”!!!
LOL!!
Boludo!
at the very least, if you wish to comunicate with me,
speak English,
or soddy offy plebby.
Sussie is like the 1/2 time show - he's here to entertain us by turning cartwheels and making an extravagant show while the real players take a break and get a 'pep talk' from their 'coach'.
Any time now, the other trolls will run onto the field and Sussie will be dragged off.
Meanwhile, we can watch the song and dance.
:-)
“Ok.....yes...I have been ordered to pay back the debt I defaulted on. My plan of action is to give the bondholders 30 cents on the dollar in NEW AND IMPROVED bonds over 25 years”
Yup....such a deal. Only the Argentine people are totally in the dark of the events that will begin to unfold over the next year. They can't even get LNG they need to get through the winter.
The thing with Sussie, she really has no idea how childish she is......or some of the others for that matter with the multiple names they take on.....lol.
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