In a significant move to enhance economic and diplomatic relations, Uruguayan President Luis Alberto Lacalle Pou is on a state visit to China from November 20 to 24, responding to an invitation from President Xi Jinping. This visit is more than a routine diplomatic engagement; it marks a crucial step in the 35-year-long partnership between the two nations.
At the core of this visit is the pursuit of a free trade agreement (FTA), a topic of great importance in the discussions between President Lacalle Pou and President Xi. Formal negotiations on the FTA were initiated last year, following a consensus reached in 2016 between President Xi and his former Uruguayan counterpart, Tabare Vazquez. Last July, Montevideo and Beijing announced the completion of joint feasibility studies for the agreement, signaling a strong commitment to deepening economic ties.
China stands as Uruguay's largest trading partner, accounting for 28 percent of Uruguay's merchandise exports in 2022. According to China's General Administration of Customs (GAC), bilateral trade between the two countries reached $7.44 billion in 2022, marking a 14.9 percent increase over the previous year. China imported $4.46 billion worth of goods from Uruguay, a 23 percent rise from the year before.
The bilateral relationship has flourished despite geographical distances, cultural differences, and contrasting governance systems. This level of mutual collaboration exemplifies a "symbiotic relationship," characterized by shared benefits and mutual respect. In 2016, the diplomatic ties were elevated to a strategic partnership, further solidifying the bond between Uruguay and China.
Uruguay has also become the first member of the Southern Common Market (Mercosur) to sign a memorandum of understanding (MoU) with China under the Belt and Road Initiative (BRI). This move underscores Uruguay’s strategic goal to strengthen its economic and diplomatic bonds with China, leveraging complementary economic dynamics that benefit both nations.
Uruguayan exports to China are predominantly agricultural, including meat, soybeans, and wool. Uruguay is China's third-largest supplier of beef and the fourth-largest supplier of soybeans, highlighting the essential role Uruguay plays in supporting China's food security and agricultural needs.
As President Lacalle Pou continues his visit, the focus remains on fostering a win-win cooperation framework that promises sustained growth and deeper integration between Uruguay and China.
Reference(s):
Complementary economic dynamics are the key to Sino-Uruguay relations
cgtn.com
