The Director of Trade Policy Advisory at the Ministry of Economy and Finance, Juan Labraga, also emphasized the need to move toward greater openness in the current Mercosur-India agreement.
The Director of Trade Policy Consulting at Uruguay's Ministry of Economy and Finance, Juan Labraga, addressed some of the trade opportunities facing Uruguay this Wednesday, amid a context marked by tariff policies and increased protectionism from the U.S.
The official said that part of the decisions the United States is making is that it "is no longer the center of a homogeneous unipolar world," and that implies that "other players will come into play and respond."
“What we're seeing is the entire Asia-Pacific region as an opportunity, and an untapped opportunity, beyond China,” he said.
He also pointed to the Arab world as an area with "very interesting markets," mainly due to the prices paid for food products, which, on average, are much higher than international prices.
"These are markets that are primarily captured by Argentina or Brazil. In other words, they don't have high tariffs because they aren't food suppliers. However, Uruguay has virtually no position in those markets. We have to figure out how to enter," he said during a breakfast meeting that focused on the new political cycle and pending structural reforms to boost long-term economic growth, organized by the consulting firm Exante.
A report by the United Arab Emirates Exporters' Union (UEU) last December highlighted that Saudi Arabia, Bahrain, the United Arab Emirates, Kuwait, Oman, and Qatar have high per capita incomes, are major food importers, and have a combined population of 59.6 million. This makes them high-potential export destinations.
Exports to those six countries totaled US$61 million in 2024, with the United Arab Emirates as the main buyer at US$22.9 million.
The most important products were whole milk powder, butter, lamb hindquarters, prepared and preserved meat, and beef trimmings.
"MERCOSUR-INDIA AGREEMENT MUST BE DEEPENED"
Furthermore, the MEF official pointed to the agreement between Mercosur and India, which he described as "very poor." It is an agreement on fixed tariff preferences for a limited set of products that, in his view, "should be further developed."
The Preferential Trade Agreement entered into force in June 2009 and was Mercosur's first agreement with a non-regional partner. By 2024, only 1% of Uruguayan exports would have benefited from the Mercosur-India agreement, according to a report by the Institute of International Business at the Catholic University (UCU) a few days ago.
"We're going to have to approach the issues with the United States as the Trump administration wants them to be addressed, but we suspect that once the uncertainty clears, that entire agenda will accelerate, because the world will continue to move. (…) At the MEF, we're going to attempt unilateral opening. We believe it's possible and desirable," he stated.
MEASURES THAT "MOVIE INVESTMENT"
Elsewhere, Labraga was asked about how this government will address issues related to non-tariff barriers that limit competition and generate undesirable effects on market functioning.
"I see a growing consensus at the political level, even at the business and technical levels, that it's possible to change regulations and the rules of the game regarding how products and markets are authorized," he said.
On this point, he stated that the Ministry of Economy and Finance (MEF) is contacting various stakeholders to conduct a survey of practices that they believe "distort investment and trade."
"We have to be very careful with our words. What's missing is intelligent regulation, and in some cases, deregulation," he said.
He also mentioned that they will seek to prioritize measures that "effectively drive investment."
"At the Ministry of Economy, we are clear that this year we must implement a couple of impactful measures. One area that stands out is the digitalization of Comap," Labraga said.
