China prefers to negotiate a free trade agreement with the entire MERCOSUR rather than with Uruguay individuallyas reported by the government to the diplomatic mission led by Foreign Minister Francisco Bustillo.
Although the Chinese conveyed their “interest” in eventually signing an agreement with Uruguay, consider that it is better not to generate a conflict with MERCOSUR and Brazil. Xi Jinping’s government is observing Lula da Silva’s movements with “expectation” and hopes to advance in an agreement with the regional bloc.
Uruguay, for its part, has made efforts to sign trade agreements with third countries outside of MERCOSUR, such as with Turkey and the Trans-Pacific Agreement. The partners of the regional bloc have warned on several occasions that they do not share the path taken by Uruguay and that they prefer to negotiate collectively. Despite the fact that China is not interested in an agreement with Uruguay, Minister Bustillo’s visit to Beijing showed that diplomatic relations are at their best since they were reestablished 35 years ago.
In addition, it is considered that the relationship between States, both in commercial and political aspects, is “tremendously rich”, and President Luis Lacalle Pou is expected to visit China before his term ends. The position of the Uruguayan government maintains that it wants to advance in trade agreements, although now it will do so through MERCOSUR instead of individually with China.
Specifically, China suggests that Uruguay “do not insist” on pressing for the signing of an FTA, since it is understood that the priority now is to move forward with the regional bloc.