Legal Problems In Relation To A Potential Free Trade Agreement(FTA) Between China And Uruguay

The international situation invites us to reconsider global and regional partnership strategies and assign more relevance to South-South links driven by trade,foreign direct investment,and cooperation.In Latin America,China’s influence has been amplified by the United States’ distancing from the region.Latin America is a region with abundant natural resources.China is Latin America’s great trading partner;it is one of the main investors and raw materials buyers.In the context of the openness policy that the Chinese government is carrying out,it is possible to identify a tendency in the last years to negotiate Free Trade Agreements(FTA)with different countries in the world.Different motivations can find behind this strategy,which can mention searching for access to resources vital for its manufacturing,energy,and agricultural sectors.The free trade agreements with Australia,Chile,Iceland,New Zealand,and Peru can be considered in this direction.Uruguay is an agro-exporting country.China is Uruguay’s main trading partner;most of Uruguay’s political sectors consider that an FTA with China is necessary to ensure similar benefits to those enjoyed by Australia and New Zealand,which are its major competitors.The relationship between China and South American countries and especially with Uruguay,has reached an important development to make a quality leap and move towards a link with higher commitments at the commercial level.However,when considering the possibility of signing an FTA between the two countries,it is necessary to address the agreement’s legal aspects.In this connection,one of the most important difficulties faced in this area is the limited or inadequate knowledge of the legislation,competent authorities,as well as the specific commitments undertaken by both countries at the international level,on sensitive issues that could be considered important by both countries during the negotiations of a potential FTA.Besides,Uruguay’s participation in the MERCOSUR regional bloc implies that an FTA with China could be considered from a bilateral point of view or a regional perspective;therefore,it is also necessary to consider the legal variables involved.The political disagreements among MERCOSUR members make that the possibility of a trade agreement with China can be analyzed from different perspectives,especially depending on the analyst’s interests.On the other hand,without any hurry and with its strategic step-by-step,China has proposed to Uruguay and the MERCOSUR block the possibility of initiating negotiations to sign an FTA.In times of pandemic,which has generated strong negative consequences in international trade,have the possibility of negotiating an FTA with the second-largest economy in the world can be considered a good and positive sign that should capitalize on.The needs of the parties are diametrically different.China is an economic power;Uruguay and MERCOSUR need better access to the Chinese market,and the FTA would provide the appropriate legal framework to achieve this objective.