MercoPress. South Atlantic News Agency

Mercosur, Free Trade Area

Uruguayan former Economy Minister and international consultant, Alejandro Vegh Villegas suggested eliminating the Common External Tariff and turning Mercosur into “a free trade area” (instead of a customs union).

Talking during a conference in the Montevideo Chamber of Commerce Mr. Vegh Villegas underlined that "Uruguay has done its homework, but the fact the economy hasn't grown for the last three years is very much linked to the mal-functioning of Mercosur". Mr. Vegh Villegas said that it's essential to eliminate the Common External Tariff since Argentina and Brazil, Uruguay's main trade partners; are among the most closed economies in the world. "Mercosur as it's currently working now is useless, since the largest partners do not respect rules or the Common External Tariff, drilled by local interests and lobbies", said Mr. Vegh Villegas. "I believe we must create a free trade zone, avoid high tariffs, (influenced by Brazil) and give each Mercosur country the liberty to set its own tariffs with third countries, and eliminate regional ones", concluded the former Uruguayan Economy Minister.