Chinese FM favors free trade deal with Uruguay

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A possible free trade agreement with Uruguay is at the top of the “to-do” list for Chinese Foreign Minister Wang Yi on his visit to Uruguay. So far, only minor agreements have been signed.

It’s been 30 years since China and Uruguay established diplomatic ties. Few capital cities are further away geographically from Beijing, but Montevideo hopes to have an even greater role in China’s future.

Chinese Foreign Minister Wang Yi first met with Uruguayan President Tabarez Vazquez.

Vazquez said bilateral ties are at their best levels since Uruguay and China established diplomatic ties 30 years ago.

“Uruguay is willing to push for the free trade agreement with China and deepen cooperation in areas such as trade, cultural exchanges and technology,” said the president.

Chinese Foreign Minister Wang Yi meets with Uruguayan President Tabarez Vazquez in Montevideo, Jan. 24, 2018. /MOFA Photo

Vazquez also spoke highly of the Belt and Road Initiative and is willing to join it proactively.

Wang, for his part, said China-Uruguay ties have witnessed steady development in the past thirty years and China is willing to boost cooperation with Uruguay in trade and cultural exchanges.

Wang later sat down with his Uruguayan counterpart, Rodolfo Nin Novoa. The ministers signed an agreement to ease business visas, but the overriding question was when the two countries will shake on a proposed free trade agreement.

“Signing the Free Trade Agreement with China will bring greater opportunities for Uruguay’s development,” Wang said. “Once signed, China will have access to a market of 3.5 million consumers, but Uruguay will have access to a market of 1.3 billion. It is a straight forward calculation, everyone knows the answer.”

Chinese Foreign Minister Wang Yi meets with his Uruguayan counterpart Rodolfo Nin Novoa in Montevideo, Jan.24, 2018. /MOFA Photo‍

Three decades ago, Uruguay began exporting wool to China. Now, according to government agencies, more than 20 percent of exports go to China with soy and beef being the main products. The head of the Exporters Union said Uruguay’s government and private sector want the agreement signed.

“Our competitors in beef exports like Australia and New Zealand have [free trade] agreements with China, they pay fewer taxes, they also have the advantage which is that they are closer,” explained Teresa Aishemberg, director of the Uruguay Exporters Union.

On Wednesday, Uruguay’s foreign minister talked about the stumbling block – the need to convince fellow Mercosur trade members, Argentina and Brazil, who prefer to negotiate any deal as a bloc.

While negotiations continue, there are also talks in Montevideo over Uruguay’s ambition to become a South Atlantic transportation hub in the region, forming an integral part of China’s Belt and Road Initiative.

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