MercoPress. South Atlantic News Agency

Uruguayan exports in first quarter down 13% compared to a year ago

Minister Kreimerman admits that the over valuation of the Uruguayan currency has a negative impact on regional exports

Uruguayan exports of goods in March continued falling thus closing a discouraging first quarter, according to Uruguay XXI, the country’s agency responsible for promoting trade and investment in the country.

Industry and Energy minister Roberto Kreimerman addressing the Chamber of Food Industry, Ciali, admitted that the over valuation of the Uruguayan Peso is creating problems for Uruguayan exports to the region.

At current prices exports in March dropped 24.6% compared to the same month a year ago, from 813 million dollars to 613 million dollars, which means that in the first quarter of the year exports accumulated a loss of 13% compared to the previous year, from 1.998 to 1.739 million dollars.

Most of the lost ground was on sales to Nueva Palmira the Uruguayan port which re-exports much of the country’s produce. Sales to Nueva Palmira collapsed 41% and this was mainly because the sale of wheat was down 83%.

Minister Kreimerman addressing the Food industry chamber said that “we have to confront some regional problems such as the over-valuation of the Uruguayan Peso that is having (negative) impact on competitiveness”

Regarding export and import prices, they experienced a fall in the fourth quarter of last year according to Uruguay’s Chamber of Industries. However the drop was greater for Uruguay’s export prices, which means the terms of trade exchange have deteriorated.

In effect the Chamber of Industries Economic unit says the terms of exchange fell 3.5% in the last quarter of 2012 compared to the previous quarter, and 1.3% looking back twelve months.

Export prices fell particularly because deterioration in the values of textiles, dairy products and beverage. Likewise the slip in import prices refers mainly to the intermediate goods.