In a significant move to bolster international diplomacy and trade, Uruguayan President Luis Alberto Lacalle Pou is set to visit China from November 20 to 24 at the invitation of Chinese President Xi Jinping. This visit marks a pivotal moment in Sino-Uruguayan relations, aiming to deepen economic and diplomatic bonds between the two nations.
The discussions are expected to focus on negotiating a free trade agreement (FTA), a topic of considerable importance for both countries. Formal talks on the FTA began last year, following a consensus reached in 2016 between President Xi and former Uruguayan President Tabaré Vázquez. In July, both nations announced the completion of joint feasibility studies for the agreement.
Uruguay’s strategic goal is to strengthen its partnership with China, which has been its largest trading partner for the past 11 years. As they celebrate the 35th anniversary of diplomatic relations, China accounted for 28 percent of Uruguay’s merchandise exports in 2022. According to China’s General Administration of Customs, trade between the two countries reached $7.44 billion last year, a 14.9 percent increase from the previous year. China’s imports from Uruguay amounted to $4.46 billion, a 23 percent rise from 2021.
Over the past 35 years, Sino-Uruguayan relations have witnessed several milestone achievements. Despite geographical distance and cultural differences, the two countries have developed a symbiotic relationship characterized by mutual collaboration across multiple sectors. Diplomatic ties were formally established in 1988 and were elevated to a strategic partnership in 2016. Uruguay was also the first member of the Southern Common Market (Mercosur) to sign a memorandum of understanding with China on cooperation under the Belt and Road Initiative.
The complementary nature of their economies has been a driving force in strengthening bilateral relations. Uruguay primarily exports agricultural products to China, including meat, soybeans, and wool. The country is China’s third-largest supplier of beef and fourth-largest supplier of soybeans. These mutually beneficial trade dynamics have not only solidified China’s position as Uruguay’s primary trading partner but have also increased bilateral trade by 60 times since their diplomatic relations began.
As President Lacalle Pou’s visit approaches, both nations are poised to explore new avenues of cooperation. The potential FTA is anticipated to pave the way for enhanced economic integration, benefiting businesses and investors in both countries. This visit signifies a shared commitment to fostering stronger ties and promoting sustainable economic growth on a global scale.
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Complementary economic dynamics are the key to Sino-Uruguay relations
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