European Union farmers could suffer losses ranking from one to three billion Euros if a trade agreement is finally agreed with Mercosur according to a European Commission evaluation paper on the impact.
Uruguay’s Central bank kept its benchmark interest rate unchanged as policymakers focus on bringing inflation back to target in anticipation of possible impacts from a global slowdown.
A Uruguayan government delegation will begin talks on Tuesday in Brazil to address the latest restrictions imposed by Mercosur largest member and which threaten several manufacturing sectors, particularly the auto industry, said Foreign Affairs minister Luis Almagro.
Uruguay is reconsidering the situation and links with Mercosur, given the recent trade obstacles and tariffs imposed by Mercosur senior partners Brazil and Argentina, announced President Jose Mujica in an interview.
Uruguayan president Jose Mujica admitted a certain ‘stinging feeling’ following the recent Brazilian decision to increase import taxes on vehicles by 30%, which could also have an impact on Mercosur partners.
Mercosur coordinators are holding meetings in Montevideo to decide on a mechanism for temporary increases of national tariffs besides those already implemented under the common external tariff for the group.
In twelve years Mercosur has consolidated as the leading region in soybean production with 52% of the world crop and the potential to further expand area and yields.
President Jose Mujica admitted to Uruguayan manufacturers and farmers that with recurrent Argentine and Brazilian obstacles to trade “it’s very hard to make Mercosur function” and good relations between presidents “are not enough”.
The Paraguayan delegation before Mercosur Parliament, Parlasur, accused Argentina of “systematically and permanently ignoring the Asuncion Treaty” (the founding charter of Mercosur).
Argentina is considering a temporary increase of tariffs on some imports, following on Brazil’s steps, but is also thinking of a formal proposal to its Mercosur partners.