KEY POINTS
- Uruguay warns EU that failure to ratify Mercosur deal could lead to China gaining influence in Latin America.
- Mercosur countries ratified the agreement in two months, but European Parliament delays pending CJEU opinion.
- Uruguay plans to deepen ties with China, US, and other partners while pursuing new trade deals during its Mercosur presidency.
Uruguay’s Foreign Minister, Mario Lubetkin, has urged the European Union to complete ratification of the EU-Mercosur trade agreement. He warned that Europe risks ceding influence in Latin America to China if the deal stalls. Speaking to Euronews during a visit to Brussels, Lubetkin described the agreement as a historic opportunity for both regions.
According to a report by Euronews, the four Mercosur countries ratified the agreement in just two months, a record pace. However, the European Parliament has delayed its consent pending an opinion from the Court of Justice of the European Union, which could take over a year.
Lubetkin emphasized that Mercosur will not wait indefinitely. “If Europe rejects this agreement, the consequences will be much greater for Europe than for us,” he said. When asked if China would be the alternative partner, he replied: “Obviously.” China has been Uruguay’s largest trading partner for 14 years, while Europe remains the top source of investment.
Uruguay, which holds the rotating Mercosur presidency, plans to organize the first EU-Mercosur trade forum in December. It also aims to pursue trade negotiations with Canada, the UAE, India, ASEAN, and Africa. Lubetkin rejected the notion of choosing sides between Washington and Beijing, stating Uruguay’s policy is “positive, not against anyone.”
Strategic Implications for Foreign Investors
For international investors and expats in Uruguay, the stalled EU-Mercosur ratification underscores the country’s proactive diversification strategy. Uruguay’s ability to maintain strong ties with China, the EU, and the US simultaneously enhances its resilience as an investment destination. The push for alternative trade deals signals a stable, open economy that prioritizes market access, which could bolster investor confidence in Uruguay’s long-term growth prospects.
