RIO DE JANEIRO, BRAZIL – On June 20, Uruguay and Brazil signed, in Montevideo, a trade agreement to establish a zero tariff for products originating in free trade zones of both countries.
Uruguayan Ambassador Ana Inés Rocanova and Brazilian Ambassador Antonio José Ferreira Simoes were in charge of signing the protocols, according to the newspaper El País of the Uruguayan capital.
Uruguayan Foreign Minister Francisco Bustillo, who estimated that the regulations would enter into force in two months, said that the next objective is to “work for the internalization” of the understanding.
The Uruguayan Foreign Minister emphasized that the agreement “is not a triumph for Uruguay, in any case, it is a triumph for Brazil and Uruguay, which we share with our neighbors and Mercosur partners because I believe that it is ultimately an excellent agreement for Mercosur as a whole”.
The agreement was signed at the headquarters of the Latin American Integration Association (Aladi), in Montevideo, between the representatives of that regional organization, Ambassador Ana Inés Rocanova for Uruguay, and Ambassador Antonio José Ferreira Simoes for Brazil.
Bustillo said that the protocols are contemplated in the agreement signed on June 9 with his Brazilian counterpart, Foreign Minister Carlos França, in Los Angeles, during the Summit of the Americas.
On that occasion, they signed a declaration and two protocols, one referring to the commercial exchange in free trade zones and the other to the technical requirements concerning yerba mate.
The protocol on free trade zones allows total and immediate relief from the common external tariff for all goods included in the Economic Complementation Agreement (ECA) No. 18 that are produced in all free trade zones in Uruguay and Brazil.
In addition to providing indefinite relief, it is a broadening of the regime since the previous additional tariffs covered certain free zones and a reduced group of goods.
Meanwhile, the protocol on yerba mate involves establishing a new technical criterion on sanitary matters to avoid the imposition of a non-tariff barrier that would hinder the entry of yerba mate from Brazil into Uruguay.
This agreement will also be in force indefinitely and would ensure that the supply of this product to the domestic market is developed without major difficulties.
The Uruguayan Chancellor described the understanding with Brazil as “very favorable” since it will allow all goods produced in Uruguay’s free trade zones to enter the neighboring country with zero tariffs.
He also highlighted the importance it represents for attracting new investments and generating high-quality jobs.
Until now, the protocol provided for the annual renewal of the permit; in this case, it will be for an indefinite period. In addition, it previously covered two free trade zones, and now, it covers all of them.