Uruguay appeals to the “need to modernize and sincerify” Mercosur

RIO DE JANEIRO, BRAZIL – Uruguay appealed this Friday (5) to the “need for modernity and sincerity” in the Southern Common Market (Mercosur) after learning of Brazil’s unilateral decision, announced hours earlier, to lower its import tariffs and, therefore, to adopt an alteration that is still being discussed within the bloc.

The Ministry of Foreign Affairs and the Ministry of Economic and Finance of Uruguay issued a joint communiqué. They point out that “Brazil’s decision is understood within the current framework of MERCOSUR as an imperfect Free Trade Zone.”

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“What was communicated by the Government of Brazil reflects the need to modernize and clarify MERCOSUR, as a way to achieve a better opening and international integration,” the statement added.

This Friday, Brazil announced that it would apply a 10% reduction to the tariffs of 87% of all importations of goods and services.

According to a joint communiqué from the Ministries of Foreign Affairs and Economy, the reduction will be in force until December 31, 2022, and was decided unilaterally and under Mercosur rules that allow “adopting measures aimed at protecting the life and health of people”.

The reduction of the external tariff of the block that Brazil integrates with Argentina, Uruguay, and Paraguay has been discussed for months. It has already been virtually agreed, although not formalized.

Argentina was the country with the most significant resistance to these reductions. Still, a month ago, it was more open, during a visit to Brasilia by its new foreign minister, Santiago Cafiero, who was received by his counterpart Carlos França.

At the end of that meeting, both ministers announced that they had reached an “agreement” for this 10% reduction, which would be consulted with Paraguay and Uruguay, which were already inclined to accept this change.

Until then, it was expected that the tariff reduction would be announced at the next Mercosur summit, scheduled for December and to be organized by Brazil, which currently holds the six-month presidency of the bloc and so far has not set a date or place for the presidential meeting.