The government of Uruguay has recently announced that the FTA feasibility studies between China and Uruguay have been complete. Once been approved and taken effect, the FTA will waiver 150 million USD worth of tariff on Uruguay beef to China. China’s Ministry of Commerce has confirmed this information.
As Uruguay’s major beef importer, China has purchased 1.45 billion USD worth of beef from Uruguay in 2021. Right now China is imposing a 12% tariff on Uruguay beef, while its FATs with Australia and New Zealand have reduced tariffs on beef from these two countries to only 3.3% and 0% each. The likelihood of FTA between China and Uruguay will help Uruguay gain leverage in competing with other beef exporting countries.