The Latin American Integration Association (ALADI) is an initiative that works towards the region’s economic integration, with the ultimate goal of establishing a common market in Latin America. The bilateral agreements entered into by Mercosur countries with ALADI non-members, are subject to greater scrutiny and control measures implemented by Mercosur. This connection between Mercosur and ALADI, like the goals and regional scope, helps China in its dealings with Latin America, and particularly with its most recent approach to Uruguay. For China, ALADI is an alternative to Mercosur through which it can access trade with Latin America.
A meeting was held between China’s Foreign Ministry’s LAC director general, Cai Wei, and ALADI general secretary, Sergio Abreu, on July 26, in which the former manifested China’s interest in assimilating Latin American trade, understanding how it works, its strategies and instruments, and its application of the most favored nation principle. Abreu, on the other hand, confirmed that there is currently great demand for raw materials produced in Latin America.
The recent approximation between China and Uruguay with a view to signing an FTA has revealed that Mercosur’s presence hampers the furthering of bilateral relations between China and the Latin American states. In this respect, close ties with ALADI provide a more accessible route for China to become part of the trade dynamics in Latin America.
Top Headline:
La República (Ecuador): China avanza con Uruguay y se interioriza en Latinoamérica.
Find Out more:
Subsecreataría de Relaciones Económicas Internacionales del Gobierno de Chile (Undersecretary of International Economic Relations of Chile's Government website): ALADI – Asociación Latinoamericana de Integración.
El País (Uruguay): Mercosur – ALADI.
Swissinfo: Disensos sobre el TLC con China agrían reencuentro de ministros del Mercosur.
La Nación (Argentina): ¿Puede fragmentarse el Mercosur?
