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Montevideo, November 14th 2018 - 13:21 UTC

Uruguay praises Mercosur as the “main buyer” of the country's exports

Friday, November 28th 2014 - 06:30 UTC
Full article 3 comments
Almagro highlighted that ”Mercosur allows Uruguay to diversify its exports and to sell products with more value added, which generates more jobs”. Almagro highlighted that ”Mercosur allows Uruguay to diversify its exports and to sell products with more value added, which generates more jobs”.
Despite repeated differences with Cristina Fernandez, the administration of Uruguayan President José Mujica has remained committed to Mercosur. Despite repeated differences with Cristina Fernandez, the administration of Uruguayan President José Mujica has remained committed to Mercosur.

Uruguay’s Foreign Minister Luis Almagro highlighted that Mercosur is the “main buyer” of Uruguayan exports and strongly defended the country's presence in the regional group, a controversial issue since much of the country's political system and most of the business community want a more dynamic, open trade block.

 Almagro underlined that “three out of Uruguay’s four main trade partners belong to the bloc,” referring to Brazil, Argentina and Venezuela. The foreign minister made the statement during the presentation of a book about his four years as chancellor.

The minister highlighted that Uruguay sells most of its manufactured exports to the bloc. ”Mercosur allows Uruguay to diversify its exports and to sell products with more value added, which generates more jobs,” he said.

According to the report he presented, Uruguay’s exports grew from 2.9 billion in 2004 to 9.15 billion in 2013.

Despite repeated differences with the Argentine government of Cristina Fernandez, the administration of Uruguayan President José Mujica has remained committed to Mercosur.

It is also expected that Tabare Vazquez, who most probably will be confirmed on Sunday as Uruguay's next president will likely continue to work in that direction, prioritizing regional integration.

However Uruguay has followed the lead of Brazil in demanding a more flexible Mercosur particularly regarding trade agreements with third countries, and finding ways around the consensus clause which means all five full members must coincide on any major decision, precisely on sensitive issues as expanding trade partners and tariffs.

Argentina's policies of defending its own domestic market, jobs and promoting manufacturing have led to repeated clashes inside Mercosur. Likewise many complaints refer to the fact that Mercosur has lost its original purpose of promoting trade and has become a highly political group.

Furthermore the option of the Pacific Alliance, (Chile. Peru, Mexico and Colombia) which promotes open markets, free trade, foreign investment and has agreed on drastic tariff reductions as a means of competing in the Pacific-Asia basin has become an increasing magnet in the region.

Uruguay and Paraguay already have observer status in the Alliance and several of the most dynamic economies in the region such as Panama, Costa Rica and even Canada are considering joining the group.

Meanwhile on the Mercosur side, Bolivia has applied to become full member as have Suriname and Guyana.

Top Comments

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  • ChrisR

    Tossers United as far as I can tell.

    BTW Argentina have STILL to pay anything towards the electricity they have used from Uruguay, also they don't pay their export invoices in a timely fashion, if at all.

    And the Argie Rent Boy Almagro thinks Mercosur is good for us? Good for him he means.

    Nov 28th, 2014 - 12:57 pm 0
  • ilsen

    They need to escape from the cold dead chains of MercoSur and make their own free-market deals elsewhere. The current administration is too scared to 'go it alone', but with the support of the Pacific Alliance they could break free from the useless MercoSur.
    Unfortunately the ideological bullshit of the old 1970 leftists is holding it back for now.
    I hope Uruguay can one day overcome this.
    It has the potential to become the Sweden of South America, but will this happen?

    Nov 29th, 2014 - 02:56 am 0
  • ChrisR

    @ 2 ilsen
    “It has the potential to become the Sweden of South America, but will this happen?”

    Not in my lifetime! :o)

    The main problems in Uruguay are that it is infested with stupid lazy people who really do think that the government should look after them coupled with unions which have the power reminiscent of pre-The Blessed Margaret times in the UK. AND don’t start me on the dead hand of government.

    Such a shame, this beautiful country could do so much better if it got rid of the Marxists and communists, in other words the entire government.

    Nov 29th, 2014 - 06:08 pm 0
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