Uruguay prepares its embassy in Turkey for opportunities

RIO DE JANEIRO, BRAZIL – Uruguay is preparing the opening of its embassy in Turkey, seeking to position itself in a key area between Europe and Asia. The resolution aims to strengthen bilateral ties while the government of Uruguayan President Luis Lacalle Pou promotes talks for a Free Trade Agreement and the export of live cattle.

Ambassador Hugo Cayrus, a career foreign service officer in charge of the mission, told the Senate International Affairs Committee a few days ago that once the embassy is installed, one of the first steps will be opening an Economic and Commercial Department (DEC). From there, they will work for the arrival of trade missions of Uruguayan business people in Turkey and the promotion of the Uruguayan investor regime.

The Uruguayan consulate in Istanbul has 38 Uruguayans in its registry. Since the Uruguayan presence is not very large, the focus of the work will be commercial in the understanding that Turkey is becoming increasingly important in international trade. Before the Parliament, Ambassador Cayrus considered “important an opening in a country like Turkey, for being a regional power and for how its importance has been growing politically, economically, and commercially”. “I think it is a strategic decision,” he added.

A market analysis report sent by the Consulate General of Uruguay in Istanbul identified potential for development and trade strengthening in various products such as cellulose, soybeans, rice, butter, animal feed, combed wool, medicines, veterinary medicine vaccines, wood, wheat, and barley.

The first meeting of the Joint Economic Commission between Uruguay and Turkey is scheduled for 2022, pending since 2009 after signing the Agreement on Economic, Commercial, and Technical Cooperation. At the end of this month, Turkish Foreign Minister Mevlüt Çavuşoğlu will visit Uruguay, Cayrus said.

EXPORTS AND MARKET

In 2021, Turkey was the tenth destination for Uruguayan exports, with US$200 million. Of particular relevance during the previous year were cellulose placements, which amounted to US$74 million and accounted for 36% of total exports, even above the US$63 million for live cattle. Uruguay reached the highest figure for exports to Turkey in 2018 with US$307 million.

“Uruguayan exports to Turkey have been mainly concentrated in live cattle exports, which has been the main export product to that market in recent years,” said Ambassador Cayrus in his appearance before Parliament on April 6. “We will work to improve access opportunities for Uruguayan products, services, and trade promotion to increase and diversify exports to the Turkish market,” he added.

The ambassador said that Uruguay imports from Turkey auto parts, iron or steel profiles without alloy, clothing, footwear, electric water heaters, vehicle bodies, plastics, chemicals, laundry machines, and agricultural electrical appliances.

The announcement of the opening of an embassy in Ankara was made in August 2021 during a visit to Turkey by Foreign Minister Francisco Bustillo. Since then, both the minister and President Luis Lacalle Pou have affirmed Uruguay’s interest in advancing a possible free trade agreement (FTA) with Turkey.

LIVESTOCK MARKET

Government senator Sebastián Da Silva, who specializes in agricultural issues, highlighted the importance of live cattle exports. “For Uruguay, Turkey is one of the countries that determines the transparency of the livestock market. The fact that Turkey is the main destination for live cattle exports prevents producers from being held hostage to eventual oligopolies of the meat processing industry of the day. That is why we celebrate that we have an embassy now,” said the National Party legislator.

Based on information from the General Directorate for International Economic Affairs of the Foreign Ministry and Uruguay XXI, at the moment, there are no Turkish investments in Uruguay or Uruguayan investments in Turkey, said Cayrus.

Uruguay and Turkey signed an Agreement on Cooperation and Mutual Assistance in Customs Matters in 2021. They also signed an Air Services Agreement in 2013 and a Friendship and Cooperation Agreement in 2009. Since 1996, they have also signed an agreement to abolish visas in ordinary passports.

With information from Bloomberg Línea

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