President Luis Lacalle Pou attended the commemoration of the “Competitive and Sustainable Uruguay” Export Day, organized by the Union of Exporters of Uruguay. He reviewed the Government’s challenges in terms of logistics and the country’s opening to the world, highlighted that all political parties agreed to support a State policy aimed at the export sector, and said that the FTA with China must receive national approval.
In his speech, this Tuesday 26, Lacalle Pou highlighted the work carried out by the Union of Exporters, an organization that he described as a pressure group on the rulers that forces them to improve the task, to be efficient and effective and fairer in the measures that they are taken
In addition, he welcomed the fact that all the political parties have signed a declaration in which they undertake to carry out a State policy in the export sector. “It’s not a minor value in the modern world,” he said.
As he explained, the export activity, which he called “the last stage of local economic activity”, needs more markets and, at the same time, access the same tariffs as other countries to compete. In this sense, he mentioned the start of negotiations to achieve a free trade agreement with China, and recalled the steps that the Uruguayan State has taken to reach this instance.
Regarding the treaty to which it is intended to arrive and the actions carried out by the Government, the President of the Republic highlighted the information that has been provided to all the political parties of Uruguay and to the Mercosur partners, by the Executive Power.
“I grabbed a car that was running, we corrected it in what we thought was wrong, we pushed it in what was right, and we intend to sign a free trade agreement with China in the shortest possible time”he stated.
Regarding the different sectors of activity that the agreement will affect, he reported that the latest generation free trade agreements (FTAs) imply compensatory measures, and advocated discussing this point. In addition, he reiterated that there is dialogue with other regional blocs on the possibility of reaching other agreements, and in particular, with the Comprehensive and Progressive Treaty of Trans-Pacific Association. “Our vocation is to open ourselves to the world”, Lacalle Pou reiterated.
Regarding the processes required by the export sector, he pointed out that air connectivity and navigability must be improved. Regarding the latter, he celebrated having reached 13 meters in dredging in the port of Montevideo, and that it aspires to reach a depth of 14 meters. “It’s a substantial advance,” he said.
He also stated that it will be “a before and after” in the port terminal, when the work to be carried out by Terminal Cuenca del Plata, which has already awarded the project, is completed. Likewise, he referred to the breaking point that will be the concretion of the waterway of the lagoons, a work that the Brazilian government plans to carry out, according to the president, and that will change the situation of the producers in the east of the country.
In another order, he announced the construction of a port, of Paraguayan capital, in the north of Soriano, whose objective is to be the infrastructure that grants direct access to the sea to Paraguay. “Not only do we have natural conditions to offer, but also the respect for laws and contracts that sets us apart from other countries,” he said.
The Uruguayan president referred to the bureaucracy of the national administration, and argued that the current procedure should be simplified for all those who can export.
Regarding the work plan on routes and new infrastructure, to improve logistics, he reported that many tenders have already been awarded, and that this will generate a noticeable change in cargo transportation.. “For me, route 6 is a before and after in that area”, he pointed out, since in that part of the country the activity decreases when the harvest ends.
He commented on the export of the audiovisual sector, which increased exponentially during the pandemic, and that the Government prioritized the capture of foreign productions, through the mechanism cash rebates, through which it grants the reimbursement of part of the money invested. “In terms of accountability, we are creating a special agency for audiovisuals, which has a very great future,” Indian.
He highlighted the positioning of Uruguay as a technological reference center in the region, which attracts investments and company managers to settle in our territory.
Lacalle Pou highlighted the labor relations that are developing in the country, and advocated more agreements than conflicts. “Both parties have to win,” he said, recalling that the government took concrete actions to correct salaries for public employees, in the context of strong global inflationary pressure, and suggested the same to the private sector.
“The Government understood that some sectors were doing well, and that the profit had to be shared, that is the society we want”, remarked.
At the end of his speech, he reflected on what he called the “inclusive wealth index”, which implies the perception of prosperity of the individual over the other, and pointed out that it is a guide for the Government, since for decision-making this administration His source of inspiration is justice.
The president was accompanied by the Vice President of the Republic, Beatriz Argimón; the secretary and pro-secretary of the Presidency, Álvaro Delgado and Rodrigo Ferrés, respectively; the Minister of Foreign Affairs, Francisco Bustillo; the Minister of Economy and Finance, Azucena Arbeleche; the head of Industry, Omar Paganini; Environment, Adrián Peña, and Labor, Pablo Mieres.
The interim ministers of Tourism and Livestock also attended; Remo Monzeglio and Juan Ignacio Buffa, the Undersecretary for Industry, Walter Verri; the Undersecretary of Foreign Affairs, Carolina Ache; the director of the Office of Planning and Budget, Isaac Alfie; the president of Ancap, Alejandro Stipanicic; the head of the Bank of the Republic, Salvador Ferrer; the one from Antel, Gabriel Gurméndez; and the president of the Union of Exporters, Andrea Roth.
Minister Arbeleche reiterated the priority of environmental care in the economy
In her speech, the Minister of Economy added that the world is at a time when there is greater awareness of environmental care, sustainability, social factors and governance, which have an impact on international trade and investment flows.
On this point, he expressed the need for the carbon footprint to be measured in national companies, as well as that the conservation and treatment of natural resources should be considered. “The way countries take care of natural resources and diversity will have a major impact on trade, tariff barriers and access to credit,” he said.
He also specified that, due to these characteristics, the financial markets especially value Uruguayan credit and the country. In this sense, he said that when investment funds choose how many bonds and debt securities to place in their portfolio, as well as risk rating agencies, they take environmental care into account.
Arbeleche recalled that environmental and commercial policy are intertwined, and exemplified by mentioning that the European Union seeks that the rate on product imports be related to the carbon emission or deforestation generated in its production.
Likewise, he pointed out that the concept that public finances internationalize with environmental policy was included in the Budget Law and that specific measures were taken at the international and national levels for this.
Finally, he referred to the fact that the transition to a more resilient economy implies that its costs be studied, and that the paths to be chosen must measure the cost-effectiveness ratio.
