MercoPress. South Atlantic News Agency

Uruguay targets USA

“We need a bilateral agreement with the United States”, said Uruguayan president Jorge Batlle during the opening of a regional forum on free trade in the Americas.

President Batlle added that he's convinced that Mercosur will be limited to a free trade area and given the current circumstances "we hope no one will become an obstacle" for each of the area's member's foreign policy and trade objectives. The carefully worded statement in crucial moments for Mercosur and the whole American continent, point to a new emphasis in Uruguay's foreign and trade policy following the Argentine crisis and Brazil's reluctance to speed a US sponsored free trade area from Alaska to Tierra del Fuego. Although Mr. Batlle said the country will remain faithful to the spirit of Mercosur, he seems inclined to push Uruguay in the Chilean path which has favored bilateral agreements with as many countries as possible while constantly reducing foreign tariffs. Uruguay that since the mid eighties opted for a more intense regional relation, has benefited from booming Argentine and Brazilian economies, but has also suffered immensely as a consequence of the boom-bust cycles of Mercosur's main partners. To overcome this last crisis Argentina has resorted to manipulating foreign tariffs, turning the incipient Mercosur customs union into a free trade area, while Brazil refuses to open its domestic market to the United States unless the Americans have a more liberal policy regarding agriculture. Faced with this situation Mr. Batlle believes the time has come for a bilateral trade talks with United States, and later on with Canada. "In a world of trade blocks it's difficult to sail on your own", argued Mr.Batlle adding neither Europe or Asia represent immediate options. President Batlle said the European Union is too absorbed by the former Soviet block and illegal immigration from north Africa, while Asia is too far for South Atlantic Uruguay. "Our next step is to contract Chilean and Mexican experts to help us in our trade talks with United States and Canada", anticipated Mr. Batlle.