Uruguay keen to enhance trade ties with Bangladesh

Bangladesh shares a long diplomatic and economic relationship with the well-off South American nation of Uruguay. Despite the friendly relationship, business ties between them have not reached full potential, with the bilateral annual trade currently standing at a modest $70 million.

The Latin American country now wants to go forward to build a strong business relationship with Bangladesh, while intensifying people-to-people contact and fostering cooperation in the cultural arena.

In a recent interview with The Business Standard, Alberto A Guani, the non-resident Uruguayan ambassador to Dhaka, shared his insights on strengthening the ties between the two nations and delving into additional avenues for economic collaboration in the coming days.

He put special emphasis on people-to-people relations between Bangladesh and Uruguay to understand the development models of both the countries that have witnessed tremendous economic and social development over several decades.

For this, the diplomat, stationed in New Delhi, said Uruguay has a plan to set up a permanent embassy in Bangladesh. On Thursday, it opened a consulate office in Dhaka.

"But that is something you know comes after a long time, when the progress in business among the countries starts going at a higher level and we start showing that the interests among the two countries are getting closer," Alberto told TBS.

He said the setting up of a consulate office in Dhaka is the fastest step of Montevideo towards improving the bilateral relationship and that opening a permanent embassy will depend on how present relations develop. 

Currently, the trade balance remains largely in favour of Uruguay as Bangladesh exports only $20 million against $50 million import from the Latin American nation.

However, Bangladesh has started showing signs of improvement in shipment of goods to Uruguay with exports surging to $22.46 million during the first half of FY24.

In the 2022-23 fiscal year, total exports from the country to Uruguay stood at only $12.61 million against nearly $57 million imports, according to the United Nations COMTRADE database on international trade.

"We already have a long relationship, but we need to formalise it in other ways of cooperating and being closer," Alberto told TBS,

"So that's something that still has to be seen and I think that it's going to be interesting also to see how the response comes from Bangladesh and all these things that we're studying," he added.

At present, Uruguay imports a small quantity of apparels. Its envoy says they can explore Bangladesh as well as a garment sourcing destination.

"If there is a good opportunity to buy those clothes from Bangladesh, why not? I mean we are exploring that also because at the moment we're importing most of the clothes from China," Alberto asserted.

"I mean always people look for the best conditions to do business and, in that case, if Bangladesh gives us a better alternative, we would surely take it," he added.

Acknowledging that Bangladesh is "good" in terms of business environment, the envoy said they were not still sure about the areas of future cooperation.

"Our mission is not to do business. Our mission is just to put people, you know, to talk, and once they talk and resolve things, see what happens," he commented.

Asked about his country's investment interest in Bangladesh, Alberto informed that Uruguay had earlier expressed interest to sign an agreement with Bangladesh on how to avoid double taxation mutually.

Praising Bangladesh's economic growth since independence, he noted that the Uruguayan entrepreneurs may show interest in investing in economic zones here.

The Latin American diplomat also suggested that Bangladesh sign an FTA deal with Mercosur, a South American trade bloc, to increase trade and investment in both directions.

About his expectation from Bangladesh, he told TBS "All depends on how things go along and how the people that do business start seeing the opportunities."

As a largely mechanised nation, Uruguay stands ready to extend technological support to Bangladesh, if needed. 

Additionally, the country, a well-known football playing nation, can help Bangladesh improve the game of football, according to its envoy.

Uruguay, a welfare state with only 3.4 million population, became a high-income country by World Bank standards in 2013. Its per-capita GDP is expected to reach $18,688 by 2024 and to rise further to $19,596 in 2026.