The government awaits the presidency of Mercosur to advance an FTA with China

The government awaits the presidency of Mercosur to advance an FTA with China

Uruguay will assume the pro tempore presidency of the Mercosur during the second half of the year and one of the priorities that the government will have at the head of the management of the block will be to promote dialogue with China at regional level

Although the negotiations for the Free Trade Agreement (FTA) bilateral with China are still standing, the government no longer believes it will be able to sign the agreement before the change of management, and a few months ago it changed the strategy to achieve some progress in the direction of a greater commercial openingalso taking advantage to address the rigid structure of the regional bloc: negotiating from the Mercosur with the Asian giant.

The first time the president Luis Lacalle Pou proposed this was after returning from his diplomatic tour to Beijing, already requested Xi Jinping, in December of last year; and the idea was well received by the Argentine government given the little progress regarding the agreement with the European Union (EU).

“We are going to request a meeting of the heads of state of the Mercosur with the Chinese head of state. If not, let the technical services of the Mercosur meet with China, because there hasn’t been a meeting in a long time. And it is very important, China “He loves her,” Lacalle Pou said then, with the intention of “spreading the heat.”

However, the different national situations, both in the South American countries and in the Asian giant, delayed the progress of the talks.

An opportunity for dialogue and regional opening

Now the chancellor Omar Paganini confirmed to the weekly Busqueda that the Uruguayan government “is going to invite the Mercosur-China dialogue” when he assumes the pro tempore presidency of the bloc. “Evidently for him Mercosur It is more complex to reach an agreement with China what for Uruguay, alone we are much more complementary. But I hope this issue can move forward,” he said.

Likewise, he announced that it will be “one of the important flags” of the Uruguayan presidency that, for the moment, would assume on July 16 in Assumption, when Paraguay pass the semester position.

Paganini also highlighted the “changes” in the partners of the Mercosur regarding progress in other negotiations, in reference to Paraguay, Argentina and also Brazil. “There is a greater openness perspective. We already saw that she was signed with Singapore. With this European Union it has its own difficulties, but we have made efforts even as Mercosur moving forward,” he said, giving an account of what he considers an aspect that can positively influence the conversations with China.

For the chancellor, Uruguay this legally enabled to negotiate on their own, especially after the Mercosur has not taken steps to be a customs union. However, the government recognizes the Chinese intention – expressed on multiple occasions – to maintain good relations with Argentina and Brazil and, therefore, to prefer to advance as much as possible in a regional agreement.

Source: Ambito

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