Business concerns over Uruguay’s decision to advance negotiations with China

Regarding Uruguay’s specific decision, Elizondo said there were different positions. “The traditional industrial sector is more favorable to protectionism, but the agro-industrial sector views it with more sympathy. 70% of Mercosur’s exports are agro-industrial, they clearly want improved access to foreign markets like Asia, where they have to pay double-digit tariffs on a continent which represents 32% of all world imports, while Latin America explains only 3%, ”he explained.

Examination

Thus, the concern of the agro-food sector does not go through the specific decision of Uruguay, which they endorse, but rather to carry it out outside the bloc. “For international organizations, in 2030, Mercosur could represent 50% of the world’s raw materials, any country will be afraid to negotiate with us, so we cannot stop opening up when we can be a power,” he said. he assured Ámbito Gustavo Idígoras, President of Argentina. chamber of the petroleum industry and member of the Agro-industrial Council.

For Idigores, The first step is to “close the current negotiations” with the European Union, Canada, Singapore and South Korea, then to open negotiations with other “markets of interest”, such as India, Russia, South Africa, Morocco, Central America and China. . “We need to have a more offensive attitude,” he stressed. On the impact that this greater openness could have, he explained: “We calculate 40 billion annual additional exports for the sector, including 15 billion for Argentina.

In the industrial sector, the situation is quite different. The Argentine Industrial Union (UIA) He said the aim should be to “strengthen” Mercosur. “As a whole we are going to function, because there are hegemonic powers which, if they do not make their rules of the game prevail,” declared the president of the UIA, Daniel Funes de Rioja, in an act of the industrialists of Buenos Areas. “Our challenge is to unite in a competitive and efficient model, there are plenty of Argentines if there is no industry,” he added.

About the decision Uruguay to move forward in trade agreements with China, of the metallurgical association Follow Favorite They said the concern is due to the weakening of Mercosur as a bloc, but also that the vigilance is due to possible goods that could enter Uruguay. “Argentina’s industrial exports have Brazil as the main destination, but in Uruguay there are also many items, which could be replaced by Chinese products, with other prices that are difficult to compete with. There could also be a triangulation of Chinese imports from Uruguay and to Argentina and Mercosur, ”Aldo Costa, coordinator of Adimra’s international negotiations department, told this newspaper.

“If this sets a precedent, it is very serious for the domestic industry. No one is talking about closing themselves off from the world, but rather looking for criteria among all countries to open up, ”Costa concluded.

The coincidence between agriculture and industry requires the search for a common negotiation. By actively participating in Mercosur business forums, Idígoras encourages an “aggressive” Mercosur strategy to open markets, “jointly”. Asked about the different positions between agriculture and industry, he said: “We understand those who do not have the capacity to compete, but these negotiations last for years, quotas can be set for sensitive products, there tools exist, it is an unnecessary alarm. to prevent a negotiation.