Uruguay accuses Argentina and Brazil of hindering Free Trade Agreement with China

Photo: Wikimedia Commons.

In a statement during the opening of legislative sessions of the Uruguayan parliament, Uruguay’s President, Luis Lacalle Pou, blamed Argentina and Brazil for hindering the country’s negotiations for a Free Trade Agreement (FTA) with China, a key goal of his administration. Lacalle Pou accused the neighboring countries of expressing diplomatic opposition, impeding the progress of the trade deal.

The Uruguayan president did not rule out the possibility of signing an FTA with China before the end of his term in 2025, emphasizing that it could be achieved even without the support of Mercosur, the trade bloc comprising Uruguay, Brazil, Argentina, Paraguay, and Bolivia.

In September 2021, Lacalle Pou announced the start of talks with China, challenging the prevailing stance in Mercosur, which requires approval from all members to negotiate with third parties. This approach caused tensions within the regional bloc.

On July 13, 2022, the president reported the conclusion of feasibility studies for the possible FTA with China, thus initiating a formal dialogue over the matter. In November 2023, during Lacalle Pou’s State visit to Beijing, Uruguay upgraded its diplomatic ties with China to a commercial partnership, marking a milestone in bilateral relations.

During the latest Mercosur summit in December 2023 in Rio de Janeiro, Lacalle Pou urged member countries to be transparent about their positions on the FTA with China. While Brazil reaffirmed its ties with China, former Argentine President Alberto Fernández admitted to contacting China to halt the FTA negotiations.

Lacalle Pou reiterated his frustration at the beginning of legislative sessions, stating that “Brazil and Argentina blocked” Uruguay’s negotiations. Despite the obstacles, the Uruguayan president highlighted progress in opening to international markets, particularly in the agricultural sector.

Emphasizing the need for Mercosur to open up to the world, Lacalle Pou reiterated his stance to his Mercosur bloc partners: “If we all open up, we are stronger, and if not, we go alone, and we are strong enough to stand on our own in the world.”

China stands as Uruguay’s largest trading partner, and President Lacalle Pou remains determined to overcome diplomatic obstacles to strengthen commercial ties with China.