Joint Statement by the Minister of Foreign Affairs of Brazil, Carlos França, and the Minister of Foreign Affairs of Uruguay, Francisco Bustillo

The Ministers of Foreign Affairs of Brazil, Carlos França, and of Uruguay, Francisco Bustillo, held an official meeting on June 9, 2022, in Los Angeles.

Both ministers expressed their satisfaction at the excellent state of bilateral relations and highlighted the historic bonds of friendship and cooperation that unite both peoples.

They agreed that the current level of the MERCOSUR Common External Tariff, even when considering its exceptions, does not reflect the bloc's current needs and that its reduction will contribute to increasing the levels of competitiveness and productivity of their economies. In this regard, Uruguay indicated its support for the proposal for a horizontal reduction of the Common External Tariff under discussion in MERCOSUR.

They coincided on the need to modernize the bloc and on the centrality of its external agenda, which, in order to acquire greater dynamism, must have, among others, flexible formats and mechanisms that respond to the specificities of different situations and meet the interests and sensitivities of each of the four partners.

In this context, Uruguay informed on the developments of its external agenda, in particular those it has been maintaining with extrazone countries, with the aim of strengthening and improving the country's international insertion.

Brazil indicated its willingness to give priority to the issue of negotiating flexibilities within MERCOSUR and reiterated the importance it attaches to the intensification and diversification of the bloc's external relations agenda.

Both countries reaffirmed the importance of extending their bilateral trade agreements in order to expand trade flows and provide them with predictability and legal security. In this sense, they agreed on the conditions for preferential access for goods produced in free trade zones and special customs areas located in the Oriental Republic of Uruguay and in the Federative Republic of Brazil, as well as the technical requirement of yerba mate.

With regard to other relevant topics on the bilateral agenda, they highlighted the importance of infrastructure and sustainable development projects between the two countries, among which it is worth noting the development of the Lagoa Mirim and Rio Quaraí Basins, the second bridge over the Jaguarão River and the restoration of the Barão de Mauá International Bridge, as well as the feasibility of navigation on the Upper Uruguay river.

They agreed to resume the prompt convening of the Border Committees and were pleased to note the convening of the First Meeting of the Trinational Border Integration Committee.

They emphasized that the licensing of the Uruguay-Brazil Waterway for the effective re-launch of commercial navigation between the two countries is a fundamental step towards bilateral physical integration and recalled the meeting between the Presidents of both countries, Luis Lacalle Pou and Jair Bolsonaro, on February 3, 2021, which was a milestone in the advancement and achievement of these issues.

They welcomed the delivery to the Brazilian authorities of the economic feasibility studies for the Uruguay-Brazil Waterway project within the framework of the Investment Partnerships Program (PPI).

They noted the increasing participation of electric energy in bilateral trade, and welcomed the ministerial meetings held so far in areas such as energy commercialization, electric mobility and renewable energies. They underscored that energy has proven to be a key factor in enhancing bilateral relations, as well as in strengthening the regional infrastructure integration in MERCOSUR.