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Leaving aside for a moment the political debate generated over the last few days on the delay with which this support comes (almost two years after the signing of the agreement) and whether or not a political plenary is the only one in the world. space to discuss these issues, there is a factual element to remember: it will be the national parliament that will have the last word on the subject and who can promote a debate beyond the agreement with Chile and open a even broader reflection on Uruguay's international economic integration strategy.
Let's start with the agreement with Chile. What was signed in October 2016 is nothing more than the expansion of political and economic ties already existing between Chile and Uruguay. As we have already pointed out, the need for this agreement rests primarily on strengthening a relationship that the two countries have maintained for several decades. This agreement will boost bilateral trade and investment, that is to say that it is a concrete step from the rhetoric to the practice of regional integration that we encourage so much in our country.
Examples showing the intention to deepen and innovate to generate mutual benefits are chapters such as SMEs, the environment, cooperation or gender and trade, this last chapter being one of the first agreements in the world to consider it. This chapter reaffirms the commitment of the two countries to effectively implement their legislation, policies and good practices in the area of equity and gender equality, recognizing international trade as a driver for development and engaging parties to integrate the gender perspective. in promoting inclusive economic growth.
On the other hand, it is important to highlight a comparative element related to the current regional business context. Chile insisted on deepening trade ties with Brazil and Argentina. He has already signed an FTA with Argentina and is negotiating another with Brazil. Uruguay should not be left behind in this new commercial dynamism that is starting to appear in the region.
For Chile, this debate was not easy in the 1990s. It was also necessary to understand the contribution that openness could make to economic development. But the truth is that, after almost 30 years of starting this route today, there is an important consensus that, to grow, we must look beyond our borders.
Examples of the contribution of its persistent commercial openness to Chile are numerous. Today, Chile's foreign trade accounts for about 60% of GDP. On the other hand, over the past 17 years, the average annual GDP per capita has more than doubled from US $ 11,375 in 2000 to US $ 24,700 in 2017.
In 2002, total exports of Chilean badets reached US $ 17,676 million, 15 years later, reaching US $ 68,306 million, of which 94.5% went to countries with agreements.
Today, the effective tariff that imports pay to enter your market is only 0.8% (2016). As for Chilean products, they pay on average in all export markets close to 0% as a result of the application of signed trade agreements.
The debate that has led to the negotiation of trade in services under the negative lists is probably necessary, but it is important to underline that this chapter provides exporters from both countries with non-discriminatory treatment and the application of Transparent, objective and reasonable rules. That is, do not apply to the partner more restrictive conditions than those that currently exist. All this improves the conditions of competition for tradable services, very dynamic sectors in both countries. Therefore, if a new service sector develops in the future, these principles seem reasonable – even without the existence of an FTA – and will be a condition for competitively participating in international markets .
This Chapter provides important guarantees to domestic service providers from one party to the other, as it guarantees them the right to non-discriminatory treatment, non-imposition of quotas that restrict their access to this market to transparent, objective and reasonable regulations, since their export is not conditioned to be established in the territory of the other Party. All this allows service exporters from both countries, that the rules governing their exports are more predictable, which has significant value for the development of their business plans.
As we have insisted on other occasions, agreements commercial entities are only instruments, a country becomes more competitive with institutions and public policies strong and transparent. Having open markets linked to the world is an important link in this foundation on which development must be supported. For this reason, the parliamentary debate on the ratification of the agreement with Chile may perhaps be a good excuse for further reflection and reflection on the model of international integration that the world is facing. Uruguay must follow to develop. It is indeed an almost endless debate, but one day it must begin
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