MercoPress. South Atlantic News Agency

Uruguay criticizes Mercosur trade barriers and integration delay

Foreign Affairs minister Gonzalo Fernandez signalled Argentina and Brazil

Uruguay criticized trade barriers imposed by Mercosur country members which, it said seriously threaten the integration process and represent a “severe reversal” for the original project.

“During the last decade and most intensely since the 2002 crisis, Mercosur not only has not advanced in key issues of the integration process, but has experienced a severe reversal in the economic-trade framework”, said on Thursday the Uruguayan delegation participating in the Mercosur summit in Paraguay.

The speech from Uruguay’s Foreign Affairs minister Gonzalo Fernandez was the only not to be transmitted to the press room of the Mercosur summit; nevertheless the Uruguayan delegation distributed a release with the main points of Uruguay’s position.

Uruguay underlined the lack of success in eliminating non tariff restrictions to trade inside the block which also includes Argentina, Brazil and Paraguay. In particular Uruguay criticized Argentina and Brazil’s non automatic import licences which among other items have severely restricted sales of dairy produce to Brazil and textiles to Argentina.

Uruguay also said it was disappointed because in the twenty years of Mercosur an only free trade agreement was signed with a third party, Israel.

“We have not advanced in other essential issues for the construction of a truly expanded market such as the elimination of the double common external tariff and adopting common disciplines involving incentive policies”, said Mr. Fernandez.

Uruguay also expressed concern about the “bilateral administration of trade issues which are natural to all Mercosur members”, in direct reference to the agreements between private sectors sponsored by Argentina and Brazil to regulate bilateral trade.

Finally Uruguay also complained about the delays in approving projects financed by the Structural Convergence Fund from Mercosur. Energy-short Uruguay is anxious to begin a power inter-connection system linked to Brazil, which remains stalled because of Argentine objections.