MercoPress. South Atlantic News Agency

US/Uruguay free trade accord “not in the agenda”

Uruguay's Foreign Affairs minister Reinaldo Gargano said Uruguay totally discards any possibility of a free trade agreement with United States which could endanger Mercosur.

"The position of the Uruguayan government is based on the policies laid out in the ruling coalition program which says no treaties will be considered which might infringe in our negotiating capacity with Mercosur", remarked Mr. Gargano following a meeting Friday in Brasilia with his Brazilian counterpart Celso Amorim.

This policy is based on the "Uruguayan Constitution and the Broad Front (ruling coalition) program" he added, emphasizing that Uruguay's stance is not "ideological" but rather founded on "convenience" since President's Bush Congressional mandate for negotiating free trade agreements "excludes 300 sensitive products, among which most of those we export".

Uruguayan Economy minister Danilo Astori last month and again this week said he favoured a free trade agreement with United States and proposed the issue be discussed inside the ruling coalition.

Gargano made it a point to stress that his was the Uruguayan government official line and when asked about Mr. Astori's remarks to the contrary he replied: "Ask Astori about it. I am talking for the government, which recently ratified in a cabinet meeting what I as Foreign Affairs minister am officially saying". "We have two bibles: the Broad Front program and the Constitution", he highlighted.

However next April Astori, the minister of Industry Jorge Lepra and other officials from the economic area are scheduled to travel to Washington to explore the possibilities of advancing in a free trade understanding with United States which is one of Uruguay's main trade partners.

Last month presidents Nestor Kirchner and Lula da Silva from Argentina and Brazil acknowledged the validity of the growing complaints from the smaller Mercosur members, Uruguay and Paraguay, who consider they have collected limited benefits from the block.

Mr. Gargano further on said Uruguay "applauds" the agreement signed Monday between Argentina and Brazil which entitles any side to impose safeguards to garner protection from an "invasion" of the other partner's products. "We expect the same willingness to solve asymmetries involving Uruguay's trade relations with both Mercosur members"

Celso Amorim insisted that Mercosur must do much more for the smaller economies and underlined that "it's essential to ensure Mercosur unity, because that's where our strength lies". However he admitted that in the short term "it can be tempting to begin talks for some form of agreement with third parties".

Gargano also visited President Lula da Silva and announced Uruguayan president Tabare Vazquez would be visiting Brazil next March.

A joint communiqué states the importance of Brazilian investments in Uruguay "to promote the country's exports and generate jobs.