The agreement between Mercosur and the European Union will take effect on May 1, marking a significant change in the region’s global trade position. In preparation for this development, the Uruguayan Exporters’ Association held a workshop with government officials and foreign trade experts to examine how the deal will affect businesses.
Participants included Paola Repetto, Director General for Integration and Mercosur Affairs at the Ministry of Foreign Affairs; Juan Labraga, Director of the Trade Policy Advisory Office at the Ministry of Economy and Finance; Mariana Ferreira, Executive Director of Uruguay XXI; and Matías Camejo, Foreign Trade Coordinator at the Uruguayan Exporters’ Association. The group discussed key issues with members of the private sector.
Mariana Ferreira said that “Today, the bloc has access to nearly 4% of global imports. With the negotiations concluded with EFTA, Singapore, and the European Union, that access will rise to around 20%.” She added that for Uruguay specifically, preferential access will expand to markets representing 18% of world imports—four times its current reach—and overall provide entry into economies making up a quarter of global GDP.
Ferreira described how this agreement fits into Mercosur’s broader strategy to increase international integration through deals with other blocs such as EFTA and Singapore. Ongoing talks continue with countries including Canada, South Korea, United Arab Emirates, El Salvador, Lebanon, Panama—and exploratory discussions are underway with Japan, Indonesia, Vietnam, and Dominican Republic.
She also pointed out that over two decades “the EU has consistently ranked among Uruguay’s top three export destinations for goods,” accounting for about 15% of total exports. Current exports from Uruguay to Europe total nearly US$1.9 billion each year—mainly pulp, beef, rice, wood products and wool—with main destinations being Netherlands (a logistics hub), Italy, Germany and Spain.
Ferreira emphasized opportunities beyond major export industries: “These are the companies we aim to support in taking advantage of the opportunities created by the agreement,” she said regarding micro-, small- and medium-sized enterprises. On investment flows she noted Europe provides about 46% (US$17 billion) of Uruguay’s foreign direct investment stock—with Spain leading alongside Finland and Netherlands in sectors like industry or energy.
Although there is no specific chapter on investment in this deal Ferreira said it could act as a catalyst—as seen elsewhere in Latin America where similar agreements led FDI growth up to fourfold in Costa Rica or nearly triple in Chile. To help firms make use of new opportunities Uruguay XXI plans digital tools providing clear operational information plus targeted market intelligence while supporting regulatory compliance.
“The challenge is not only to highlight opportunities but also to support companies in meeting demands of European market,” Ferreira said. Efforts will focus on helping sectors facing greater challenges adapt productively while diversifying markets.
