Argentina, Brazil and Paraguay pledge Mercosur tariff review, Uruguay does not sign

RIO DE JANEIRO, BRAZIL – Argentina, Brazil, and Paraguay signed this Friday at the end of the Mercosur’s biannual summit a joint communiqué, which was not signed by Uruguay, in which they commit themselves to the revision of the Common External Tariff of the bloc.

The unusual tripartite document was released after the summit, coordinated by Brazil, and held telematically. Uruguay conditioned its support for lowering tariffs on Mercosur’s modification of the clause that prevents its members from negotiating trade agreements with other countries or blocs on an individual basis.

The latter alteration, half supported by Brazil and Paraguay and more strongly opposed by Argentina, was not adopted at this summit. However, the tripartite communiqué suggests that Mercosur will discuss the relaxation demanded by Uruguay in the coming months.

The document states that Argentina, Brazil, and Paraguay “emphasize their commitment to the revision of the Common External Tariff (CET) as a primary instrument for the strengthening of the Mercosur Customs Union”.

However, it also underlines that these three countries have committed themselves “to reach a quadripartite agreement for the benefit of the productivity and competitiveness of the economies of the States Parties” during the next six-month presidency, which as of this Friday is in the hands of Paraguay.

In this communiqué, Argentina, Brazil, and Paraguay also reiterated “their commitment to Mercosur” and made clear their “intention” to work “in a constructive spirit and spirit of understanding, in favor of strengthening the integration process”.

The 10% reduction of the CET was virtually agreed upon. Still, it was frustrated by pressure from Uruguay, demanding greater freedom to move individually towards trade agreements with other countries or blocs, as it is already doing with China.

Argentina, Brazil, and Paraguay promise tariff review, and Uruguay does not sign.
This content was published on Dec 17, 2021 – 16:4017 December 2021 – 16:40
Brasilia, Dec 17 (EFE) – Argentina, Brazil, and Paraguay signed a joint communiqué on Friday at the end of Mercosur’s semi-annual summit, which Uruguay did not sign to review the bloc’s Common External Tariff.

The unusual tripartite document was released after the summit, coordinated by Brazil, and held telematically. Uruguay conditioned its support for lowering tariffs on Mercosur’s modification of the clause that prevents its members from negotiating trade agreements with other countries or blocs on an individual basis.

The latter alteration, half supported by Brazil and Paraguay and more strongly opposed by Argentina, was not adopted at this summit. However, the tripartite communiqué suggests that Mercosur will discuss the relaxation demanded by Uruguay in the coming months.

The document states that Argentina, Brazil, and Paraguay “emphasize their commitment to the revision of the Common External Tariff (CET) as a primary instrument for the strengthening of the Mercosur Customs Union”.

However, it also underlines that these three countries have committed themselves “to reach a quadripartite agreement for the benefit of the productivity and competitiveness of the economies of the States Parties” during the next six-month presidency, which as of this Friday is in the hands of Paraguay.

In this communiqué, Argentina, Brazil, and Paraguay also reiterated “their commitment to Mercosur” and made clear their “intention” to work “in a constructive spirit and spirit of understanding, in favor of strengthening the integration process”.

The 10% reduction of the CET was virtually agreed upon. Still, it was frustrated by pressure from Uruguay, demanding greater freedom to move individually towards trade agreements with other countries or blocs, as it is already doing with China.

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On Friday, speaking at the summit, Uruguayan President Luis Lacalle Pou said he shared the desire for “prosperity and freedom” that exists in Mercosur but pointed out that inevitable disagreements generate “certain tensions” in “national interests”.

According to the Uruguayan president, a “middle ground” must “necessarily” be reached in these tensions, “so that everyone feels satisfied”.

Although he did not mention the negotiations with China at any time, Lacalle Pou emphasized that “Uruguay has been clear on the path to follow”, added that it will insist on its position “in the times to come” and guaranteed that his country will continue “betting in a very optimistic way on that future”.

The declaration signed by Argentina, Brazil, and Paraguay also contains a review of the activities carried out by Mercosur in the last six months under the Brazilian presidency. It highlights the willingness of the three signatory countries to strengthen cooperation within the bloc.