MercoPress. South Atlantic News Agency

Uruguay claims Brazilian support in “fiscal haven” controversy with Sarkozy

Minister Almagro says President Sarkozy is wrong in his assessment of Uruguay

A top Uruguayan official said the country has the support of Brazil regarding the controversy triggered when President Nicholas Sarkozy as host and ‘rapporteur’ of the recent G20 summit named Uruguay in the list of the world’s most notorious fiscal havens.

“Brazil has fully supported Uruguay’s rejection of President Sarkozy’s statements regarding fiscal havens and the naming of Uruguay in the list”, said Foreign Affairs minister Luis Almagro.

He added that Brazil’s Deputy Foreign Secretary Ruy Nunes Pinto Nogueira confirmed that President Sarkozy’s mention of Uruguay “was not included in the final declaration from the recent G20 summit in Cannes, and must be taken as a personal opinion from the French leader”.

Almagro insisted that Uruguay’s current situation in the matter is far from that described by President Sarkozy, and that the final Cannes declaration in any case refers “to advances in Uruguay, in spite of the fact that there are some shortcomings”.

The official specifically mentioned Uruguay’s achievements in fiscal cooperation, the signing of agreements with several European countries, particularly with Germany that happens to be France’s main trade partner and the fact that there are ongoing negotiations for a similar arrangement with Paris.

However Almagro admitted that there is a deficit regarding agreements with Uruguay’s main trade partners (Brazil, Argentina, etc) and legislation regarding equity and shareholders in companies based in the country.

Almagro said that in spite of President Sarkozy’s statements Uruguay will not make adjustments to its course of action and strategy. He underlined that since Uruguay was included in the OECD “grey list”, it planned how to address the issue of tax and macroeconomic policies which is currently ongoing, “and will stick to that original blueprint”.

Regarding relations with neighbouring countries, Almagro strongly denied any pressures on the issue on Uruguay, and pointed out that “we have teams of experts working in cooperation agreements with both our neighbours (Argentina and Brazil)”.

Argentina and Brazil are members of G20 in representation of Latin America and members of the Uruguayan opposition claimed that both neighbours, particularly Argentina was behind Sarkozy’s statements given the “long time ongoing interest of the Argentine government in having access to Argentine residents’ bank deposits, assets, real estate and other investments in Uruguay”.

Almagro said this was not the case, confirming President Jose Mujica words that “in no way was Argentina involved in the Sarkozy statement referred to Uruguay as a fiscal haven”. Allegedly Mujica spoke with Argentine president Cristina Fernandez when she returned from her trip to the G20 in France.

Furthermore “we have taken immediate action by which we have signed understandings on banking and tax information exchanges which reveals the diplomatic efforts displayed by Uruguay”.

Argentines and lately to some extent Brazilians have traditionally held deposits and other investments in Uruguay’s financial system since contrary to its neighbours the country has a long undisputed record of respecting contracts and private property.