Uruguay and the Port of Chancay: New Trade Opportunities through a Free Trade Agreement

Uruguay, with a Gross Domestic Product (GDP) of around 82.43 billion USD in 2023, is showing growing interest in the mega-project of the Chancay Port in Peru as negotiations for a Free Trade Agreement (FTA) between both countries progress. These developments mark a significant step in economic cooperation between Uruguay and Peru, as well as in strengthening trade relations across Latin America.

The Uruguayan Ambassador in Lima, Carlos Alejandro Barros, has emphasized the importance of Chancay Port as a strategic logistics hub for international trade and highlighted the opportunities that a future Free Trade Agreement would bring.

Chancay Port as a Key for Uruguay’s Trade

Located about 80 kilometers north of Lima, Chancay Port is on its way to becoming one of the most important trade routes in Latin America. Through this port, Uruguay can streamline maritime trade and gain access to Asian markets. Since Uruguay relies heavily on the export of agricultural products like meat and soy, Chancay Port offers a critical link to international markets.

Free Trade Agreement Under Negotiation

Ongoing negotiations for a Free Trade Agreement between Uruguay and Peru are another step towards deepened economic cooperation. Should the agreement be successful, tariffs on a range of products could be reduced or eliminated, significantly facilitating trade. Ambassador Barros stressed that Uruguay would benefit from improved trade connectivity, particularly through the strategic Chancay Port.

Benefits for Both Countries

Uruguay, with a relatively small GDP compared to larger Latin American economies, could significantly increase its trade volumes by gaining better access to Peruvian and Asian markets. At the same time, Peru would gain access to high-quality Uruguayan products, such as meat, dairy products, and software services through Chancay Port and the Free Trade Agreement.

Diplomatic Support for the Port Project

Ambassador Barros has expressed diplomatic support for the Chancay Port project on several occasions. Uruguay sees this port not only as an opportunity to strengthen economic collaboration with Peru but also as a chance to expand its role in international trade.

Conclusion

With the Chancay Port and the ongoing Free Trade Agreement negotiations between Uruguay and Peru, new prospects for bilateral trade are emerging. The port will play a key role in accelerating the flow of goods and improving access to Asian markets. This could drive economic growth in both Uruguay and Peru and contribute to regional stability.