Uruguay's President, Luis Laccle Pou, has announced the country's intention to start negotiations for a Free Trade Agreement (FTA) with China, its largest trading partner. This decision is causing concern among other Mercosur countries, as they prefer bloc negotiations over individual country agreements. The FTA could significantly benefit Uruguay's beef, sheep, and giblets exports to China, which have seen a substantial increase in the last decade, reaching 51% of meat product export value in 2021. Currently, Uruguay faces higher tariffs compared to competitors like Australia and New Zealand, and an FTA could help reduce these tariffs and improve competitiveness. The potential FTA would focus on tariff reduction, the term of reduction, and quantitative restrictions.