Paraguay evaluates Uruguay-China free trade agreement without Mercosur
RIO DE JANEIRO, BRAZIL – Paraguay is in the “evaluation stage” of Uruguay’s decision to begin talks in the coming days to sign a Free Trade Agreement (FTA) with China without the participation of Mercosur.
It is what the Paraguayan Vice Minister of Economic Relations and Integration, Raúl Cano Ricciardi, whose country will transfer next July 21, the pro tempore presidency of the Southern Common Market (Mercosur) to Uruguay, told Efe on Thursday, July 14.
“Paraguay claims compliance with the provisions of the founding texts of Mercosur,” said the official.
He alluded to the Treaty of Asunción, by which the bloc formed by Argentina, Brazil, Paraguay, and Uruguay was created in 1991, and to the Ouro Preto Protocol of 1994, which established its structure.
These documents, the Vice Minister explained, stipulate that any decision adopted within Mercosur “must be by consensus”.
Furthermore, he defended that the negotiation of an agreement of this type must occur “with the presence of all the member states”.
When asked about the impact the Montevideo decision may have on the upcoming Mercosur Heads of State summit, the diplomat admitted that “it is an uncomfortable issue”.
He indicated that, during the meeting of the Common Market Group, Uruguay was asked to explain the grounds and details of its determination, about which he said “they took note” and will be analyzed by the ministers and presidents in Asunción.
“We renounced to an individual policy to negotiate as a whole; therefore, we vindicate what is established in the founding texts of Mercosur,” he insisted.
The President of Uruguay, Luis Lacalle Pou, ratified on Wednesday the decision to “open up to the world”, announcing that contacts for an FTA with China will begin after the “positive” conclusion of a feasibility study carried out by both countries.
In September 2021, Lacalle Pou anticipated that Uruguay and China intended to advance in such an agreement, despite Mercosur’s position of not allowing countries to negotiate agreements outside the bloc.
The presidential meeting in Paraguay will be marked by the announcement of Uruguay, which will chair Mercosur in the second semester, and the absence of Brazil’s President Jair Bolsonaro, who withdrew his participation without stating the reason.
With information from EFE
Key Facts
— Deep Dive
— For the complete picture, read our in-depth guide: Paraguay: Washington's Most Valued Ally in Latin America
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
Read More from The Rio Times