The influential British business and politics magazine The Economist anticipates that following the latest decisions by Mercosur, the South American group has little if any future. The Economist argues that the mounting protectionism and the rule-breaking admission of Venezuela have fatally undermined a once-promising trade block.
Uruguay’s Economy minister Fernando Lorenzo expressed concern about the deteriorating indicators from the Argentine economy which could have a negative impact on the country’s activity.
Uruguayan dairy exports in the first half of this year increased 30% in volume and 20% in value over the same period a year ago totalling 346 million dollars, according to the latest release from the National Milk Institute, Inale.
Uruguayan Vice president Danilo Astori openly clashed with President Jose Mujica over the recent decision to incorporate Venezuela to Mercosur arguing it was “the deepest institutional injury” suffered by the block and questioned the concept that the juridical “has to be at the service of the political”.
Uruguayan president Jose Mujica proposed to its South American peers to blend Mercosur and Unasur into an only group, according to an interview with a Uruguayan weekly in which he also ratified his commitment with Venezuela (and its oil resources) to justify the incorporation of the fifth full member of Mercosur.
The European Commission has said it will continue negotiations on an association agreement with Mercosur even if Venezuela finally becomes a full member of the group and will address the issue on a “region to region” basis.
Uruguay’s flagship carrier Pluna said on Thursday that is was “suspending all flights indefinitely” and announced that 720 of the 900 staff would be sent on unemployment pay until a new associate for the company is found or the airline is definitively sold.
High prices was the main disapproval from cruise passengers visiting Uruguay this last summer 2011/12 despite the fact the number of calls was up 31% and expenditure 57% according to the final balance of the cruise season elaborated by the Ministry of Tourism.
With a marginal descent, Uruguay’s annual inflation in the twelve months to June reached 8% compared to May’s, 8.06%, but still two percentage points above the Central bank upper cap target.
Uruguay's central bank held its benchmark interest rate steady at 8.75% on Tuesday, citing reasonable economic growth and persistent concern about inflation expectations above target.