MercoPress. South Atlantic News Agency

US lawmakers want Uruguay to join USMCA

It is good news but it will not happen overnight, Paganini warned

A group of US lawmakers introduced a bill before Congress in Washington DC to make Uruguay a new member of the free trade agreement already in force with Mexico and Canada, currently known as USMCA, a successor to the NAFTA deal.

The measure would become effective in 2026 when USMCA countries discuss the status of the alliance and a space for changes is opened, it was also explained.

The initiative, known as the Americas Act, promotes a scheme for trade and economic relations between the US and Western countries to strengthen supply chains, encourage US investments abroad, as well as deepen regional integration.

The US lawmakers highlighted Uruguay's democratic quality, its respect for human rights, and its fight against corruption. They also praised Uruguay's development and the relatively smaller size of their economies and population. The Uruguayan E¡embassy in Washington DC highlighted that the Americas Act “recognizes Uruguay's image and trajectory and considers it a model partner for the United States and a model case in the region.” It would also insert Uruguay “into the most important FTA in the world,” Ambassador Andrés Durán explained.

”It is also satisfactory for us to see how Uruguay, its solid democracy, the high standards it has in several aspects in common with the United States and breaks with that logic that President (Luis) Lacalle Pou once summarized as the 'sin of doing things right'; in this case, clearly, our country is being recognized as a model to follow and encourage, which we celebrate,“ he added.

The diplomat also argued that the bill would spell new investments in the South American country, which would become a relevant step for development.

In Montevideo, Foreign Minister Omar Paganini said the proposal meant a ”strong sign“ that President Luis Lacalle Pou's administration's rapprochement with the United States is bearing fruit and was also a recognition of the ”stability“ and ”democratic values“ of the country.

Paganini praised Durán's lobbying for Uruguay to be included in the bill and recalled that the country is part of US President Joseph Biden's Economic Prosperity Partnership of the Americas project.

”There is a change in the more strategic vision of the United States, which is starting to look more towards the region (after a long time),“ Paganini valued.

However, Paganini warned that Uruguayans needed to be cautious because this process might still take several years.

”This is one more step in a rapprochement that we have been seeking for some time with the United States that will allow us to somehow open the economy of that country with a market for us that will also allow us to receive investments,“ he explained. The bill needs first to be approved, then tariffs will be lowered and only then will Uruguay's admission into the FTA be considered.

”The first thing is a unilateral lowering of tariffs for some countries, including Uruguay, which is good because the tariff is precisely an obstacle for our exports,” Paganini also said while adding that these negotiations posed no problem vis-a-vis Mercosur.

In June last year, Republican and Democratic senators proposed the elimination of tariffs on Uruguayan products, in addition to removing a visa requirement for Uruguayan businessmen and to study its possible expansion to all Uruguayan nationals.