Argentina and Uruguay seek formula within institutional framework of Mercosur

RIO DE JANEIRO, BRAZIL – The Argentine president, Alberto Fernández, agreed with his Uruguayan counterpart, Luis Lacalle Pou, a “direct dialogue” in the face of the tensions within Mercosur, while he committed himself to “look for a formula within the institutional framework” of the organization in view of Uruguayan needs, according to sources from the Foreign Ministry, informed this Saturday.

Fernández had dinner this Friday with Lacalle Pou at the Olivos presidential residence, in the northern outskirts of Buenos Aires, together with the First Lady, Fabiola Yañez, the Argentine Foreign Minister, Felipe Solá, and the Uruguayan Foreign Minister, Francisco Bustillo.

The meeting between the presidents took place after months of friction due to their opposing positions on key Mercosur trade issues.

During the last summit of the regional bloc, in which Argentina passed the six-month presidency to Brazil, Uruguay made it official that it will seek “extra-zone trade agreements”, following the path of flexibilization advocated by the governments of Lacalle Pou and Brazil’s Jair Bolsonaro.

The Uruguayan position has been rejected by Argentina, relying on the provisions of the Treaty of Asunción, the founding agreement of the bloc, which establishes “the adoption of a common trade policy in relation to third States or groupings of States”.

Argentina maintains that this common policy has been ratified in 2000 by a decision of the Mercosur Common Market Council, which reaffirmed the “commitment” of the partners to jointly negotiate trade agreements with countries outside the zone.

Fernandez expressed to Lacalle on Friday “Argentina’s understanding of Uruguay’s needs” with respect to Mercosur, according to the statement.

The Argentine president “committed himself to look for a formula within the institutional framework of the regional organization that would be useful to this demand”, it was specified.

Meanwhile, the presidents agreed to “maintain direct dialogue in the face of any problem that may arise” with respect to Mercosur, of which Brazil and Paraguay are also members.

CAF and CELAC

The presidents also agreed to work together to obtain financing from the CAF-Development Bank of Latin America for the construction of a bridge linking the towns of Monte Caseros (Corrientes-Argentina) and Bella Unión (Artigas-Uruguay), according to the sources.

The communiqué indicated that the short distance between Bella Unión and Barra do Quarai (Brazil) would “deeply facilitate the inter-Mercosur commercial exchange.”

Fernández also thanked Uruguay for its support to Argentina’s aspirations to assume the pro tempore presidency of the Community of Latin American and Caribbean States (CELAC) in the period 2022, as Bolivia, Chile, Colombia, Costa Rica, Paraguay, Peru, Mexico and Venezuela have already done.

The Argentine president finally thanked “the permanent support of Uruguay” in all international forums to the Argentine position on the Malvinas issue, the statement concluded.