Uruguay is a key geographic player with full access to Antarctica and the South Atlantic having some of the best deep water harbours in the region. Somebody that was already remarked by other Asian nations seeking to exploit the riches of Antarctica and of the South Atlantic.
The Uruguayan President has long seen bilateral agreements outside Mercosur as the key for Uruguay development, taking Uruguay away from the straightjacket of a trading block. It is not about leaving Mercosur, but about looking towards the rest of the world and especially towards new trade agreements in distant parts of the planet.
We do not know what will the Argentinian position since President Elect Javier Milei and his political partners in the Argentinian Parliament still need to decide what is needed to curb the inflationary process in Argentina. One needs to assume that for while internal matters both financial and political will be seen as immediate priorities. With regards to Brazil, President Lula is still interested in an agreement with the European Union, agreement that in view of present positions in Europe seems to be distant.
When comparing trade agreements, the European Union is a very small fraction of world markets. In demographic terms, Europe is an even smaller fraction compared to India, China, Russia and other world operators and this includes Africa - a massive continent with a vast amount of resources.
For Uruguay, anything that limits Uruguay's capacity to trade with the rest of the world is something to get rid of. Paraphazing what was said by Hungary when Hungary joined the European Union, 'we are going to accept that benefits Hungary and reject what does not benefit Hungary'. By the way, the music of the Uruguayan National Anthem was composed by a Hungarian composer.
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