“China Is a Global Power Friend”

By MICHAEL ZáRATE

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“China Is a Global Power Friend”

By MICHAEL ZáRATE

THE new Uruguayan Ambassador to China Mr. Fernando Lugris came to Beijing on January 13 – a crucial time in the two countries’ relations. With China its largest trade partner, Uruguay’s prospects for bilateral cooperation with China remain huge. The Ministry of Foreign Affairs of Uruguay indeed commissioned Mr. Lugris “to double the Embassy of Uruguay in China” in all respects, including its surface area, work force, and goals. Mr Lugris elaborated on the implications of this mission in an interview with China Today.

Ambassador Fernando Lugris. Michael Zárate

China Today (CT): Mr. Ambassador, what do you see as the main goals and tasks to be tackled during your tenure?

Mr. Fernando Lugris (FL): For us, the elevation of the Uruguay-China association to strategic, long-term, stable, and deeper relations in all areas is our main goal. To achieve this we must during the next five years, under the new Uruguayan administration headed by President Tabaré Vázquez, boost all the mechanisms that our bilateral relations have established. I came to Beijing to double the Embassy of Uruguay in both surface area and work force. This is no mere gesture, but the decision of Uruguay, a very austere state, to invest in China – our largest trading partner. We all know that China is a global power friend that cooperates with us like no other country.

CT: One of the clear aims of Latin American countries is not only to avoid reduced Chinese imports but also to attract more Chinese investment. President Vázquez has announced that he will visit China in 2016 specifically to attract Chinese investment and capital. What issues are to be addressed here in Beijing?

FL: On March 1, 2015, when President Tabaré Vázquez took office, he received an invitation to visit China. This was highly gratifying to our President, because he had hoped to visit China during his first year in office. In that connection, both sides are working towards confirming the dates of this visit. From our point of view, the sooner the better, because since January 1 Uruguay has been a non-permanent member of the United Nations Security Council, and has held both the pro tempore presidency of the Southern Common Market (MERCOSUR) and the pro tempore presidency of the Union of South American Nations (UNASUR). That is to say, President Tabaré Vázquez would particularly like to be in China in the capacity of bearer of messages from MERCOSUR and UNASUR and as non-permanent member of the UN Security Council.

CT: Before being appointed Ambassador to China you were the Uruguay national coordinator for UNASUR. How do you envision China-South America relations?

FL: That’s a good question. Individually, South American countries seem to have a very privileged relationship with China. This is currently a decisive factor in foreign policy and, above all, in the economic development of South American nations, many of whom are involved in several different schemes. They include those of an economic character, such as the Pacific Alliance (Chile, Colombia, Mexico, and Peru) and MERCOSUR (Brazil, Argentina, Paraguay, Uruguay, and Venezuela). But we also have a new political and deeply integrationist unit inUNASUR where, among other topics, we discuss infrastructure issues. In this regard, China is a very important country. I believe that on this point UNASUR merits a deep inner dialogue with a view to later establishing similar exchanges with China.

CT: Uruguay has the pro tempore presidency of MERCOSUR, and Uruguayan Foreign Minister Rodolfo Nin Novoa recently announced that the establishment of trade agreements with other countries will be promoted. The Foreign Minister also mentioned a “strategy of seeking a China-Uruguay Free Trade Agreement.” How will this strategy be executed?

FL: All MERCOSUR presidents adopted on December 21, 2015, the Declaration on MERCOSUR’s External Relations, which expressed the desire for ambitious, comprehensive, and balanced agreements in efforts to obtain tangible results from new trade agreements. The Uruguayan government has been conveying this message for many years. As president pro tempore, Uruguay will deepen MERCOSUR and refresh its external agenda at the negotiating table by defining which actors benefit MERCOSUR, which players can make a difference in business negotiations, and what types of agreements we should negotiate. These are some of the issues under discussion. We here in Beijing await instructions and follow this process with great interest.

The Uruguay booth at the World of Food Beijing on November 18, 2015.

CT: What will the strategic direction of Uruguay be under its relationship with China, considering China’s present focus on its domestic market and lower demand for imported raw materials?

FL: The Uruguayan government has in recent years projected its vision on diversifying and upgrading our exports. In other words, Uruguay seeks to incorporate added value and to attract productive investments, especially in the areas of innovation and science and technology. In that sense Uruguay has, through our Foreign Minister and President, supported the trade in service fairs that the United Nations Conference on Trade and Development (UNCTAD) has organized here in Beijing. This high-level support reflects a political message: Uruguay is interested in and seeks new opportunities for deepened trade in services. For example, Uruguay is a country that exports software. We believe that Uruguay is an ideal place for the establishment of Chinese companies with regional branches in Latin America. In addition, Uruguay has a strong interest in displaying its initial and fundamental nature – that of a logistics hub.

CT: Our article in a recent Spanish edition of China Today extolled the high quality of Uruguayan meat. Australia and New Zealand, also producers of meat and dairy products, have agreements with China on tariff-free meat and other products. How will Uruguay handle this competition for the Chinese market?

FL: I find this a very timely question. It is good that you compare Uruguayan beef with that of Australia and New Zealand, as Uruguay is indeed on a par with these two countries in this regard. If you look at the world meat market you’ll note that China organized the last World Meat Congress and that the next Congress will be in Uruguay. This is not by chance, because Uruguay leads the world meat market as regards quality. We maintain the excellent conditions under which to continue supplying the Chinese market. Moreover, Uruguay is a candidate for the hosting of the 2017 China-Latin America and Caribbean Business Summit, and we propose that Chinese entrepreneurs join the new Uruguay Round.

CT: Mr. Ambassador, let’s finish this conversation on its starting point. You have told us that you are commissioned to “double” the Embassy of Uruguay. When will there be Uruguayan representation in Guangzhou?

FL: You have fully understood the message of Uruguay’s Foreign Minister. Uruguay is at work on steps towards materializing this opening in such an important place for China’s economic and trade development as Guangzhou City. The procedure is still at the internal stage, and we are awaiting the formalization from Uruguay through which to advance in that direction – one that, in view of its manifold contacts with Guangzhou City, the Uruguayan private sector has been demanding.