Brazil and Uruguay will give preference to products from free trade zones

RIO DE JANEIRO, BRAZIL – On Thursday, June 9, the Foreign Ministers of Brazil and Uruguay -Carlos França and Francisco Bustillo, respectively- met in Los Angeles (USA).

In a statement, Brazil’s Foreign Ministry (Itamaraty) said that among the issues discussed was the expansion of trade flow.

“In this sense, they agreed on the conditions for preferential access for goods produced in free trade zones and special customs areas located in the Oriental Republic of Uruguay and the Federative Republic of Brazil,” the statement said.

Itamaraty did not inform how this “preferential access” would be done. But, according to the Uruguayan newspaper El País, the agreement is that Uruguayan production made in free zones will have access to the Brazilian market with a 0% tariff.

According to the note from the Brazilian Ministry of Relations, “Brazil signaled its willingness to give priority to the treatment of the issue of negotiating flexibilities within Mercosur.

The two countries also agreed that “the current level of Mercosur’s Common External Tariff, even when its exceptions are considered, does not reflect the current needs of the bloc, and that its reduction will contribute to increasing the levels of competitiveness and productivity” of the economies of the member countries.

According to Itamaraty, trade between Brazil and Uruguay grew 35.2% in 2021, totaling US$3.8 billion -with Brazilian exports totaling US$2 billion. The ministry said that Brazil is the 2nd destination of Uruguayan exports and the 1st supplier of products to the neighboring country.

Itamaraty stated that the ministers also discussed infrastructure and sustainable development projects – “among which stand out the development of the Mirim Lagoon and Quaraí River Basins, the 2nd bridge over the Jaguarão River and the restoration of the Barão de Mauá International Bridge, as well as the feasibility of navigating the Upper Uruguay River.

With information from Poder360