An article from the China Daily about recent trade discussions between Uruguay and China and how these discussions are impacting neighboring countries in LatAm. My bold and comments in italics:
China, Uruguay establish strategic partnership
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Chinese President Xi Jinping (R) shakes hands with his Uruguayan counterpart Tabare Vazquez during their talks at the Great Hall of the People in Beijing, capital of China, Oct 18, 2016. [Photo/Xinhua] |
BEIJING — Chinese President Xi Jinping and his Uruguayan counterpart Tabare Vazquez on Tuesday agreed to establish a strategic partnership based on respect, equality and mutual benefit. (Vazquez also signed infrastructure investment and technical agreements that will pave the way for greater agricultural exports to China)
The two heads of state made the decision during talks in the Great Hall of the People in Beijing following a red-carpet welcome ceremony.
Xi urged China and the Latin American country to maintain high-level exchanges and enhance communication at all levels to promote mutual understanding and trust. (Uruguay’s bid for a free trade agreement, however, is not without controversy. Uruguay is one of the five full members of MERCOSUR, along with Argentina, Brazil, Paraguay, and Venezuela. Argentina’s President, Mauricio Macri, said on Oct 20th that any China-Uruguay free trade agreement negotiations should be conducted through MERCOSUR. According to the bloc’s rules, full member states cannot negotiate free trade agreements with non-members without consent of their MERCOSUR peers. Vazquez responded to Macri by saying that Argentina and Brazil have been pushing for more flexible rules that would allow members to negotiate bilateral trade agreements)
China appreciates Uruguayan support for the Belt and Road initiative, and hopes both sides will strengthen integration of development strategies to upgrade economic and trade ties, said Xi.
China is willing to encourage more investment in Uruguay, channelled toward infrastructure projects, Xi stressed, adding that the country is also looking forward to expanding cooperation in agriculture, clean energy, communications, mining, manufacturing and finance.
In addition, Xi called on both sides to promote people-to-people exchanges and lift ties in culture, education, science and technology, Antarctica, tourism as well as football sport.
As for global affairs, Xi said that China is ready to strengthen collaboration with Uruguay in climate change, economic governance, UN’s 2030 Agenda for Sustainable Development, peace-keeping and South-South cooperation.
On China-Latin America relations, Xi stressed that China is a strong supporter for Latin American stability, unity and development. China is ready to work with Latin American countries to forge a community of shared future. (The other side of this argument was articulated by Argentina and Brazil when they voiced that China was the major exception to their pro-trade rhetoric. Both governments are under pressure at home that a China-Uruguay free trade deal would exacerbate their manufacturing sectors, particularly that Chinese imports could outcompete their local products. For example, Brazil wants to negotiate a trade deal that makes it easier to export the higher-value goods it produces, such as aircraft, but is reluctant to allow more Chinese imports into its borders).
Echoing Xi’s remarks, Vazquez said that the establishment of a strategic partnership will begin a new chapter of Uruguay-China ties. Uruguay welcomes more Chinese investment in the country and is willing to negotiate a free trade agreement with China.
Uruguay supports the one-China policy and backs China’s reunification, according to Vazquez.
Speaking highly of China’s significant role in global affairs, Vazquez stressed that Uruguay was ready to work with China to push forward Latin America-China relations and enhance coordination on international and regional issues.
Macri and Vazquez met on Oct 24 in Buenos Aires to further discuss Uruguay’s potential deal with China. More on that shortly