The proposed Free Trade Agreement (FTA) with United States has been rejected by Uruguay and it has proposed talks on the basis of Trade Investment Framework Agreement (TIFA).
President Tabare Vazquez explained that proposal was rejected because it did not give them enough time to study each and every clause involved in the overall trade operations.
He also mentioned that other countries like Cambodia and African States had followed the same route and furthermore TIFA does not have to get the approval of United States Senate.
TIFA negotiations are expected to last eight to twelve months and if needed can also be inducted as an additional chapter in the already existing bilateral Investment Protection Agreement with US.
In areas like rice, woolen and textiles, the pressure from the coalition partners has forced President Vazquez to expand as Uruguay is competent and strong and US is the chief trading partner.
He disclosed that they wish to get the access to US markets for certain products which will be defined in the upcoming Preferential Trade Agreement (PTA).
TIFA is a term used just before Free Trade Agreement and is used to show political and legal understanding between US and another country to enhance bilateral and trade agreement and pushing for liberalization.
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