In a groundbreaking development, China and Uruguay have reached an unprecedented level of bilateral relations, marked by a historic high, as conveyed by Fernando Mattos Costa, the Minister of Livestock, Agriculture, and Fisheries of Uruguay, in an exclusive interview with the Global Times in Beijing.
The remarkable progress comes during the official visit of Uruguayan President Luis Alberto Lacalle Pou to China, lasting from Monday to Friday. The two nations not only announced the elevation of their bilateral ties to a comprehensive strategic partnership but also inked numerous agreements spanning various sectors, including trade, investment, digital economy, green development, and agriculture.
Minister Mattos Costa, who accompanied President Lacalle Pou during the visit, expressed enthusiasm, stating, “We are in a new era of bilateral relations. We share several foreign policies with China and are aligned to promote greater development and prosperity for our people.” He emphasized the alignment of both countries with international values such as free trade and the collective fight against trade protectionism.
The burgeoning trade relationship between Uruguay and China, its largest trading partner, has seen substantial growth, with exports to China accounting for around 30 percent of Uruguay’s total exports in 2022. Notably, last year witnessed a historic high in Uruguay’s exports to China, primarily comprising agricultural and livestock products.
Minister Mattos Costa highlighted the significant opportunities for collaboration in areas like food security, new agricultural and livestock technologies, and agricultural product processing. Both nations are committed to sustainable development, with China’s emphasis on de-carbonization aligning with Uruguay’s objectives.
As bilateral relations have reached an unprecedented level, the minister anticipates new prospects for cooperation. Despite the geographical distance, he emphasized, “we have no large distance nowadays when we have friendship and good relations.”
Since the establishment of diplomatic relations 35 years ago, the economic and trade relationship has been the bedrock of China-Uruguayan ties, with China emerging as Uruguay’s largest trading partner. The recent visit by President Lacalle Pou, along with key cabinet members and a sizable trade delegation, is seen as a significant boost for future investment and trade activities.
The enhanced trade and investment ties between the two nations have also opened doors for potential local currency settlements. Minister Mattos Costa expressed optimism about the possibility, stating, “Maybe central banks have to work hard in this subject…but it [local currency settlement] means cheaper trade and will facilitate bilateral trade.”
While a currency swap agreement is yet to be signed, the prospect of settling transactions in local currencies holds the promise of reducing transaction costs and mitigating trading risks, offering a glimpse into the future possibilities of an even stronger economic partnership between China and Uruguay.