Abstract

TORRES LEDEZMA, Sebastián Generoso. Free trade agreement between China and Mercosur: An analysis of the impact on the Uruguayan economy. E&c [online]. 2017, vol.1, n.4, pp.199-215. ISSN 2477-9245.  https://doi.org/10.37228/estado_comunes.v1.n4.2017.50.

A country´s international insertion constitutes a key element to attain a high level of human development. During the last decade, the Chinese economic presence in Latin America has grown steadily. However, there are only a few studies focusing on the effects of this phenomenon on the Latin American countries productive structure. This article classifies foreign trade between China and Uruguay according to its technological content and analyzes the effects of the signing of a free trade agreement between China and MERCOSUR on different Uruguayan productive sectors. The study identifies three scenarios: 1) a better access for Uruguayan agricultural products into the Chinese market, 2) a growing volume of imports from China, and 3) a loss of regional market preference of Uruguayan products vis a vis the Chinese ones. In addition, for these sectors, the article includes data on production and employment. In its conclusions, the paper highlights the main international trade and industrial policy challenges for Uruguay of a new strategic long run relation with China.

Keywords : International insertion; productive matrix; Uruguay; China; MERCOSUR.

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