Brazil’s Economy Minister endorses Uruguay’s negotiation with non-MERCOSUR countries

RIO DE JANEIRO, BRAZIL – After the governments of Argentina and Brazil reached an agreement to reduce MERCOSUR’s common external tariff, President Luis Lacalle Pou assured that Uruguay “agrees,” but said it should be combined with the flexibilization of the bloc. The government intends to be able to negotiate free trade agreements independently.

On Tuesday, Brazil’s Economy Minister Paulo Guedes stated that only Uruguay’s support is lacking to reduce the common external tariff by 10%, once Paraguay has conveyed its favorable position.

With respect to the demand for the flexibilization of MERCOSUR, he pointed out that the Brazilian government will not oppose Uruguay’s proposal.

“Uruguay said that it supports us, but it also wants support to advance in its negotiations with other countries. Brazil has nothing against this,” Guedes said during an event at the Ministry of Foreign Affairs.

In late September Guedes had also advocated the “modernization” of MERCOSUR, and invited “those who are uncomfortable” to withdraw, amid tensions with Argentina over the bloc’s relaxation.

“Our position is to advance. We are not going to leave MERCOSUR, but we will not accept MERCOSUR as an ideological tool (…) MERCOSUR is a global economic integration platform. If it does not fulfill that function, we will modernize it and those who are uncomfortable should leave,” Guedes said at the time at an International Chamber of Commerce event.