The government understands that environmental sustainability is already related to global finance and the way of doing business. This paradigm shift generates other challenges and for this reason, in different areas, it has raised the possibility that countries with better environmental behavior obtain benefits in access to international financing Y tariff improvements in trade.
The Minister of Economy, Lily Arbelecheparticipated this Tuesday in the lunch for the Exporter’s Day (organized by the Union of Exporters and the Banco República) at the Golf Club to refer to sustainability and environmental Protection.
The hierarch commented that at the beginning of the government, the concept that economic policy and public finances should internalize environmental aspects was included in the Budget Law. “That the economic policy was going to contemplate the national objectives of mitigating greenhouse gas emission and adaptation to climate change”, he recalled.
Based on this premise, concrete measures began to be generated both at the international and local levels. In the first area, he indicated that for the first time the Ministry of Economy is part of the Coalition of Finance Ministers for Climate Action. That group supports the use of fiscal policy and public finance management to promote domestic and global action on climate change.
debt and tariffs
The head of the MEF mentioned that Uruguay, from the presidency of the CDevelopment Committee of the Inter-American Development Bank (IDB) and the International Monetary Fund (IMF) (occupied by Arbeleche), has also made a series of proposals.
“It was put on the agenda unite environmental behavior with the interest rate that a country pays in financing. If Uruguay has a better environmental behavior that is rewarded in a lower rate of interest that is paid when taking the credit”, he pointed out.
Another of the proposals was in foreign trade and the tariff rate. “If you have that environmental conduct, pay less tariffs when selling your products (abroad),” he said. He recalled that the Ministry of Economy, together with the Ministry of Industry, Livestock. Environment and Foreign Relations are working on the design of a sustainable bond, with an interest rate linked to environmental performance.
“We are optimistic that these benefits will be seen in the long term that we need to advance in an economy where there is less emission of greenhouse gases. We are also aware that this transition implies costs”, she explained. There, he indicated that the financial sector has a key place to achieve transformations.
In this sense, it is planned to form a dialogue table between the Central Bank (BCU), the MEF and the United Nations system on green finance.
“Environmental and social sustainability issues are leading us to a change in the way of doing business, of finances at a global level and in this paradigm shift Uruguay is very well positioned in caring for the environment”, said the minister.
“The government has been very clear in its decision to have growth that is environmentally sustainable. He not only talks about the responsibility he has as a policy maker. We are also convinced that the only way to continue advancing is to achieve this very good position in environmental terms”, he stated.
“We believe that we have an enormous opportunity due to the position that Uruguay has, especially in environmental terms, and we must take advantage of it as a country and as a private sector,” he concluded.
China and more agreements
The president also participated in the lunch Luis Lacalle Pou. In his dissertation he referred to the Free Trade Agreement (FTA) with China. He recalled that the Broad Front government had shown the willingness to move forward in this regard.
Diego Battiste
Lacalle Pou
“I don’t know who is going to be the president next, I have my preferences, but it’s not up to me. I do know that at this moment in national history I grabbed a car that was coming along, we corrected what was wrong, we pushed it into what was fine, and we intend to sign an agreement with China in the shortest time possible,” he said.
He indicated that the government takes into account the doubts of sectors that may feel harmed.
“There are studies from previous administrations and studies that are being done. There are very few affected sectors”, she said later at a press conference.
It also marked the government’s intention to advance agreements with other blocs. The president pointed out that Uruguay will ask to enter the Trans Pacific Partnership (TPP).
For the Union of Exporters, its president, Andrea Roth, spoke. The businesswoman indicated that despite the fact that the export sector has significant sales figures, in turn, it faces high costs and maritime freight, which registered an exponential increase in their prices.
The exports of goods from Uruguay totaled US$ 6,897 million in the January-June semester, figure that implied a rise of 39% compared to the same period of 2021. Beef and soy were the products that boosted the country’s sales. Meanwhile, cellulose, dairy products, meat by-products, vehicles, rice, wheat, plastics and rapeseed also showed significant increases compared to last year, reported Uruguay XXI.
