Uruguay and China Engage in Free Trade Agreement

Uruguay and China Engage in Free Trade Agreement will greatly promote the quality and quantity of Uruguayan exports to China. For more information on export to China, please call SINOLOBEN, service Email: sinoloben@sloben.com.

Sep. 8, the President of Uruguay said that Uruguay has been in contact with China for the Free Trade Agreement (FTA). Uruguay will formally study the proposed trade agreement with China and submit it before the end of the year. If it goes well, Uruguay will join its neighboring Chile and Peru and sign a FTA with China.

This move bypassed the Southern Common Market (MERCOSUR). Mercosur is a pivotal regional economic cooperation organization in Latin America. It is composed of Brazil, Argentina, Uruguay and Paraguay, as well as two associated countries, Chile and Bolivia. It has a population of 220 million and an annual output value of more than US$10,000. bln, and the trade volume reached US$200 bln.

China is already Uruguay’s main trading partner, purchasing approximately 30% of Uruguay’s export products, incl. 56% of Uruguay’s meat products. Meat is Uruguay's main exports. In 2020, Uruguay's exports of goods were US$8.076 bln. Among them, exports to China were US$2.149 bln. (approximately RMB 14.8 bln.). China maintained its position as Uruguay's largest export market. From Jan. to Aug. this year, Uruguay's exports to China amounted to US$1.568 billion, increased by 63% y/y.

Since 2013, China has been the largest export destination of Uruguayan beef, soybeans and cellulose. In 2019, China imported four times more beef from Uruguay than from the EU. However, the export tariff of Uruguayan beef to China is 79%. If an FTA is concluded, it will be a major benefit to Uruguayan agricultural exports.

Among South American countries, Uruguay and Argentina are both major beef exporters, and China is also its largest beef export destination. In 2020, Argentina is China's second largest source of beef imports (22.78%), and Uruguay is fourth (10.84%).

In addition to beef products, Uruguay also plans to export 50,000 live cattle to China, of which the target of 10,000 was completed last year, and the rest will be delivered in the next few years.

As food importer & food distributor based in Frankfurt and Shanghai, Sinoloben Europa Trading GmbH helps client export to China and bring your food products to International Expo, e.g. China International Import Expo (CIIE), the world's largest import-themed expo.

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