MONTEVIDEO Reuters -- South America's major Mercosur trade bloc, which includes regional powerhouses Brazil and Argentina, has been rattled by one of its smaller members, Uruguay, trying to strike its own free-trade deals, leaders said at a summit on Tuesday.
The leaders tried to pressure each other over plans for go-it- alone trade deals with China and the Trans-Pacific Partnership TPP. The solution is not for each of us to do our own thing, said Argentine President Alberto Fernandez, who sounded Uruguay at the meeting in the Uruguayan capital Montevideo.
One of the smallest economies in South America, Uruguay is trying to conclude unilateral trade agreements that it considers to be more beneficial than Mercosur.
Uruguay needs to open up to the world. "If we go in a group, it is much better," said Uruguayan President Luis Lacalle PouLacalle Pou. We are going to have more negotiating power. In July, Uruguay entered into formal negotiations on a free-trade agreement with China, a decision criticized by Mercosur members, and recently advanced in negotiations to join the TPP.
In late November, Argentina, Guayay and Brazil warned that they could take measures against Uruguay if it forged ahead with its plans.
President Mario Abdo Ben tez said that Mercosur integration was fundamental and strategic but indicated flexibility on a demand that Uruguay does not move forward on trade deals without informing the others.
What I heard from Lacalle satisfies me. They can advance in a dialogue but before they complete any type of process, they will share it with the bloc. That is an acceptable path, Abdo said.
The Uruguayan presidency transferred to Argentina ended without a joint declaration on agreements reached over the two-day talks.