Montevideo, 1 October 2022 (TDI): The Foreign Minister of Uruguay, Francisco Bustillo has emphasized strengthening the economic cooperation with Brazil. The President’s Office and the Ministry of Economy of Uruguay announced the addition of protocols to the Economic Complementation Agreement.
The additional protocols 83 and 84 will be added to the agreement by the two sides. It will enhance the capacities of free trade between Brazil and Uruguay under the Economic Complementation Agreement.
The protocols that are related to the enhancement of free trade zones will help Uruguay to attract investments. This will also help the mutual generation of job opportunities.
Economic Complementation Agreement
The economic Complementation Agreement is a joint declaration between Brazil, Uruguay, Peru, and Paraguay under the South American trade bloc of the MERCOSUR. The trade agreement was signed in 1980 in Montevideo, Uruguay.
It was aimed at the joint declaration that integration among the South American states will be brought through trade and economic cooperation. The agreement also had been enhanced through amendments to the additional protocols.
On 1 October 2022, the representatives of Uruguay and Brazil which are major stakeholders of this agreement took the initiative of amendments by adding the 83 and 84 protocols.
The addition of protocols 83 and 84 also focused on the increased liberalization of trade. The agreement also had a special focus on enhancing the trade of traditional South American drinks known as “Yerba Mate” in Latin America.
Different mercantile-related products are to be encouraged in the newly established free trade zones between Brazil and Uruguay.
Coordination with Latin American Integration Association
The Latin American Integration Association (ALADI) is an organization that is linked with MERCOSUR and promotes free trade among the Latin American states.
The Secretary General of ALADI along with the officials of MERCOSUR were consulted. They were also taken into confidence in the following process. It was also added that the Brazilian and Uruguayan officials consulted with them on the formalities of the additional protocols.
It is added that the additional protocol 83 will exempt tariffs over the goods produced in the territories of these two states.
The additional protocol 84 will allow the ensuring of health requirements of food products. This will include the traditional drink of “Yerba Mate”, which will be exported from Brazil to Uruguay. It will also eradicate the tariff barriers for the goods produced in the newly established free trade zones.
Officials of Brasilia and Montevideo consider this development as a new phase for strengthened economic cooperation.
Also Read: Mesoamerican states hold hybrid conference
