Argentina Seeks To Bolster Economic Ties With UAE Through Mercosur Agreement

Argentina is actively working through Mercosur, the Southern Common Market, to finalize a free trade agreement with the United Arab Emirates (UAE), aiming to bolster bilateral relations and trade. Under-Secretary for International Economic Negotiations, Gabriel Martínez, shared insights with the Emirates News Agency (WAM) on this strategic move. This initiative is part of Mercosur's broader strategy, which includes member countries Brazil, Argentina, Uruguay, and Paraguay, to enhance market access by engaging in negotiations with third parties such as the European Union and the European Free Trade Association.

At the World Trade Organisation's Ministerial Conference (MC13) in Abu Dhabi, Martínez highlighted Argentina's global rebranding efforts. He pointed out that structural reforms and the removal of trade barriers are key to boosting Argentina's economy. The Under-Secretary also reflected on past trade challenges, including non-automatic licensing regimes and export restrictions on essential food products like wheat, maize, and meat.

Martínez underscored Argentina's conducive investment environment in sectors like mining, forestry, agriculture, and livestock. He discussed plans to renegotiate bilateral investment agreements from the 1990s, aiming to adopt models similar to the bilateral investment guarantee treaty signed with the UAE. This treaty is expected to be ratified by Argentina soon.

During his visit to the UAE, Martínez engaged with officials from the Emirati Minister for Economic and Trade Affairs. Discussions included enhancing bilateral relations and exploring UAE support for a bi-oceanic corridor project that would link the Pacific and Atlantic oceans, benefiting South American nations.

In 2022, trade between Argentina and the UAE reached $1.8 billion. Argentine exports mainly consisted of foodstuffs like meat and soybean residues, while UAE imports focused on machinery and tools. Martínez also highlighted Argentina's priorities at the WTO MC13, including reforms to the dispute settlement system and addressing concerns over protectionist measures by developed nations that could threaten the multilateral trading system.

With inputs from WAM