A Free Trade Agreement with China?
On September 7, 2021, the Uruguayan government received a “formal proposal” from China to push forward the process to enter into a free trade agreement with such country.
Further to the proposed time-table, an initial feasibility study would be conducted, to be followed by negotiations over the agreement draft.
China is already Uruguay’s main trading partner. In 2020, China was the principal destination for Uruguayan exports (followed by Brazil, the EU and the US, in such order), representing 27% of Uruguay’s exports. In the first eight (8) months of 2021, sales to China increased 63% over the same period in 2020. The main export product was beef, which grew 205%.
A free trade zone agreement with Uruguay’s most significant commercial partners has been a continued aspiration of Uruguay’s recent Administrations.