MercoPress. South Atlantic News Agency

“Four plus one”

Uruguay, that currently holds the Mercosur chair, was encouraged by US State Department officials to promote “four plus one” trade negotiations between the South American block and the United States.

According to the Uruguayan press, during talks held in Washington with a top delegation of Uruguayan officials, Alan Larson, US Under-Secretary for Economic and Agriculture, mentioned the convenience of beginning trade talks with Mercosur.

Uruguay's Finance Minister, the president of the Central Bank and several advisors are currently in Washington meeting IMF, World Bank and Federal Reserve officials discussing a new financial program and agreement that contemplates the turbulent situation in the Mercosur area.

Apparently Uruguayan officials during a bilateral ministerial meeting with US representatives were promised support by the US delegation in the IMF, and later in the Federal Reserve were encouraged to continue with the current austerity program targeted to balance the budget.

Because of foot and mouth disease and the unstable situation in Argentina and Brazil, (that represent almost 45% of Uruguay's foreign trade), Uruguay expects zero growth in 2001, deepening a two years long recession with record 16% unemployment