MercoPress. South Atlantic News Agency

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Uruguayan president Jorge Batlle in an official visit to Brazil warned that “times have changed” and this has forced Uruguay to look for other alternatives to Mercosur.

"Mercosur must be a project that benefits all of us, and Mercosur won't prosper if Uruguay disappears", said Mr. Batlle during a press conference in Brasilia sitting next to Brazilian president Fernando Henrique Cardoso. Mr.Batlle said that both presidents talked "about reality", and insisted Uruguay didn't come asking for special favors or conditions. "Mercosur for Uruguay now has become like the "corralito" (frozen bank assets) for the Argentines. We're locked in, our exports have dropped dramatically inside Mercosur, and this at the same impedes us from selling to other markets", stressed Mr. Batlle adding that "with Mercosur we targeted a free market, a customs union, but never have been able to harmonize macroeconomic policies". In the last few years Uruguayan exports to Brazil dropped 50% and to Argentina 70%, "that is the cold reality, and we can't keep fooling ourselves", pointed out Mr. Batlle. The Uruguayan president said that the country's problems began in January '99, when the Brazilian devaluation: "Uruguay then exported 900 million US dollars annually to Brazil and suddenly we dropped to 500 million". Given this scenario, Uruguay is anxiously working with Mexico and the United States on trade agreements, and given the fact that the 4 + 1, --Mercosur plus United States-- is stalled, "I've been forced to move bilaterally", said Mr. Batlle. Actually the Brazilian government is quiet upset with President Batlle. Since taking office in March 2000, Mr. Batlle preached for the rebuilding of the original "United Provinces of the River Plate", the former Spanish colonies that obviously leave Brazil out. Further more when Domingo Cavallo was Argentina's Economy Minister and was permanently bickering with the Brazilians over trade, Mr. Batlle openly took side with Argentina. In opting for bilateral agreements with NAFTA countries Mr. Batlle is weakening Brazil's plans for a strong Mercosur, and possibly South American block, preparing for crucial free trade negotiations vis a vis United States. "But the truth is, Uruguay has no time to waste", underlined Mr. Batlle. Closely linked to its neighbors fortunes, particularly Argentina, Uruguay has been in recession since early 1