MercoPress. South Atlantic News Agency

Uruguayan president downplays the impact of Argentine imports’ restrictions

“You know, Peronists are a difficult bunch to challenge” admitted Mujica

The new trade barriers enforced by the Argentine government are “insignificant, nothing to worry about,” Uruguayan president José Mujíca said to a Montevideo newspaper insisting that the best path is ‘dialogue’ dismounting each obstacle ‘step by step’.

The new Argentine barriers on imports are “normal, because we’re dealing with such difficulties all the time. We get over them until they resurface once more. This is almost permanent” said the Uruguayan president in reference to the latest batch of Argentine restrictions which became effective February first.

Nevertheless a delegation with representatives from the Uruguayan government and private sector are expected to travel this week to Buenos Aires to address the issue with Argentine officials since the new scheme is already threatening several sectors such as textiles, auto parts and printing among others.

After Uruguayan business and opposition leaders complained strongly about the new Argentine legislation on imports, Mujíca said it is his job to “look into every matter and analyze trade, tourism and capital influx and how Argentine services, logistics, ports and real estate investments develop”.

The president considers that Argentine real estate investments in Uruguay are the most important aspect of the bilateral relationship, since they reached two billion dollars last year. “That is a lot more important than trade, although we not always notice that,” he explained.

Last Friday Mujica met with the head of the main opposition party Senator Luis Alberto Heber when it was agreed that the delegation that will travel to Buenos Aires also include representatives from the different private industrial sectors involved.

Mujica revealed that there are ongoing negotiations on several fronts and that as far as he knows difficulties have arisen “in two or three sectors, such as auto-parts, cars and clothing” and he was sure that the ministers involved “will do their best and go as far as possible”.

“You know my good friend Luis Alberto (Heber) it’s not easy dealing with the Peronists; they are a complicated bunch but if you challenge them it’s even worse”, Mujica admitted to the head of the opposition.

“We can’t change the course of reality, we will talk about the problems from our perspective, and at this point I can’t say we are pessimistic or optimistic, simply acting objectively”, admitted Mujica. “This means each time a difficulty surfaces we will have to try and find a way around it, and that’s it”.

Mujica insisted that he can’t push relations with Argentina because it could have a negative impact on other areas equally or more important such as tourism, real estate and construction. For Uruguay the most important issue are “Argentine real estate investments which last year ranged the 2 billion dollars”. He said the number was provided by the government office promoting investment s in Uruguay.

“My job is to see the whole picture, all the links we have with Argentina, if I only look at one aspect then it would be limited to a very poor chapter”, emphasized Mujica who has been increasingly criticized for his ‘yielding’ attitude towards the administration of President Cristina Fernandez.

Meanwhile from Asuncion the Ministry of Foreign Affairs from the other Mercosur junior full member, Paraguay, said that a mechanism had been agreed with Argentina that will avoid delays and other negative effects to the recently implemented import measures by the government of Cristina Fernandez.

“Authorities of both countries have agreed upon a mechanism for the exchange of information and data checking which will contribute to avoid unnecessary delays in the export of our products,” a communiqué stated.

The accord was reached during a bilateral meeting which took place in Buenos Aires last week.

Paraguayan businessmen and industry leaders had warned that the new Argentine trade regulations, which were enforced as of February affected their country negatively and had become a “real trade barrier.”

With the new trade regulations, Argentina demands that those who import have to present a sworn statement in advance. Government bureaucrats then decide whether to allow or not the operation.