# ![](media/image1.jpeg){width="0.7395833333333334in" height="0.78125in"}  Doing Business In Uruguay: The 2005 Country Commercial Guide for U.S. Companies

# INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2004. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

-   [Chapter 1: Doing Business In
    ...](#chapter-1-doing-business-in-uruguay)

-   [Chapter 2: Political and Economic
    Environment](#chapter-2-political-and-economic-environment)

-   [Chapter 3: Selling U.S. Products and Services](#ch3)

-   [Chapter 4: Leading Sectors for U.S. Export and Investment](#ch4)

-   [Chapter 5: Trade Regulations and Standards](#ch5)

-   [Chapter 6: Investment Climate](#ch6)

-   [Chapter 7: Trade and Project Financing](#ch7)

-   [Chapter 8: Business Travel](#ch8)

-   [Chapter 9: Contacts, Market Research and Trade
    Events](#chapter-9-contacts-market-research-and-trade-events)

-   [Chapter 10: Guide to Our Services](#ch10)

#   {#section .unnumbered}

# Chapter 1: Doing Business In Uruguay

-   [Market Overview](#markt-overview-return-to-top)

-   [Market Challenges](#marketchallenges)

-   [Market Opportunities](#makretopportunites)

-   [Market Entry Strategy](#marketentrystrategy)

## Markt Overview [**Return to top**](#chapter-1-doing-business-in-uruguay)

-   Uruguay is a market-oriented economy in which the state still plays
    an important role. The country suffered the steepest crisis in
    recent history from 1999 through 2002. The crisis was overcome with
    timely U.S. and IMF support.

-   Debt rating was upgraded in 2003 after a successful voluntary debt
    exchange, which, along with political stability, contributed to
    reduce the country risk.

-   Growth resumed in 2003, reaching an impressive 11% in 2004. The 2004
    GDP amounted to \$13 billion and the GDP per capita was \$3,900.

-   As a founding member of MERCOSUR, Uruguay shares a common external
    tariff with Argentina, Brazil and Paraguay. Montevideo is the seat
    of MERCOSUR.

-   Uruguay's exports totaled to \$3.0 billion in 2004. The U.S. was the
    largest buyer with 20% of total; concentrated in meat (60%), oil
    products (16%), leather (5%) and cheese (5%). Brazil and Argentina
    held respective shares of 16% and 8%.

-   Uruguay's 2004 imports of \$2.4 billion were mainly from Brazil and
    Argentina (26% share each), the U.S. (9%) and China (7%). Major U.S.
    exports were data processing equipment (17%), fertilizers (7%), and
    telecom equipment (4%).

-   Please refer to Chapter 2 or the following links for further
    economic information:
    [http://uruguay.usembassy.gov](http://uruguay.usembassy.gov/);
    [http://uruguay.gub.uy](http://uruguay.gub.uy/);
    [http://www.bcu.gub.uy](http://www.bcu.gub.uy/);
    [http://www.ine.gub.uy](http://www.ine.gub.uy/);
    [http://www.presidencia.gub.uy](http://www.presidencia.gub.uy/);
    [http://www.uruguayxxi.gub.uy](http://www.uruguayxxi.gub.uy/);
    [http://www.mercosur.org.uy](http://www.mercosur.org.uy/)

## Market Challenges [**Return to top**](#chapter-1-doing-business-in-uruguay)

-   The challenges Uruguay faces in promoting its local market are its
    small size (3.5 million) and the lack of trade-related financing.
    Uruguay is largely unknown to U.S. companies, and local business has
    traditionally turned to MERCOSUR.

-   The leftist party that won the recent elections will take office on
    March 1, 2005. The business community is a wait-and-see mode, but
    encouraged by a strong economic recovery and initial positive
    signals with ministerial appointments. Clashes could occur within
    the ruling coalition, as the market-oriented economic team may be
    challenged by traditional leftist members and leftist unions.

-   While the government-elect recognizes the importance of U.S.
    investment and the U.S. market, it may try to focus more attention
    on regional markets. The leftist parties have traditionally opposed
    further privatization of the state sector.

## Market Opportunities [**Return to top**](#chapter-1-doing-business-in-uruguay)

-   Information technology, telecommunication equipment, and chemicals
    are the top U.S. exports to Uruguay, followed by fertilizers,
    medical equipment and supplies, and agricultural machinery. The U.S.
    is Uruguay's first provider for hardware and telecommunication
    equipment, second for fertilizers, and third for chemicals.

-   The major infrastructure projects in the pipeline are:

    -   Paraná-Paraguay River Transportation System

    -   Colonia -- Buenos Aires Bridge

    -   Southern Cone Highway Hub

    -   Energy Projects (combined power plant, transmission, wind)

    -   Deap-Sea International Multilodal Port

    -   Railway Rehabilitation

    -   New Airport Terminal

    -   Cellulose and Wood Chipping Plants

For detailed information regarding these projects, please refer to
Chapter 4.

## Market Entry Strategy [**Return to top**](#chapter-1-doing-business-in-uruguay)

-   All import channels exist \-- agents, distributors, importers,
    trading companies, subsidiaries, and branches of foreign firms.
    Sales outlets and supermarkets are traditional storefronts. There
    are no discount general merchandisers.

-   U.S. suppliers should be thorough in their selection of a local
    agent or representative. The contractual relationship
    (employer-employee or commission-based) should be made clear.
    Failure to do so could result in supplier liability for severance if
    the U.S. company decides to end the business relationship.

-   The best strategy recommended to enter the local market is to visit
    Uruguay, interview potential partners, and name a
    representative/agent. Business relationships and creative financing
    terms are very important.

-   U.S. exporters are encouraged to take advantage of the export
    promotion services provided by the Commercial Section in the U.S.
    Embassy in Montevideo. Please check in
    <http://www.buyusa.gov/uruguay/en/10.html> for the full list of
    services provided. Another useful site for U.S. exporters is
    [http://www.export.gov](http://www.export.gov/).

[Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

#   {#section-1 .unnumbered}

# Chapter 2: Political and Economic Environment

For background information on the political and economic environment of
the country, please click on the link below to the U.S. Department of
State Background Notes.

<http://www.state.gov/r/pa/ei/bgn/2091.htm>

[Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

[[]{#ch3 .anchor}Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

# Chapter 3: Selling U.S. Products and Services 

-   [Using an Agent or
    Distributor](#using-an-agent-or-distributor-return-to-top)

-   [Establishing an Office](#establishing-an-office-return-to-top)

-   [Franchising](#franchising-return-to-top)

-   [Direct Marketing](#direct-marketing-return-to-top)

-   [Joint Ventures/Licensing](#joint-ventureslicensing-return-to-top)

-   [Selling to the
    Government](#selling-to-the-government-return-to-top)

-   [Distribution and Sales
    Channels](#distribution-and-sales-channels-return-to-top)

-   [Selling
    Factors/Techniques](#selling-factorstechniques-return-to-top)

-   [Electronic Commerce](#electronic-commerce-return-to-top)

-   [Trade Promotion and
    Advertising](#trade-promotion-and-advertising-return-to-top)

-   [Pricing](#pricing-return-to-top)

-   [Sales Service/Customer
    Support](#sales-servicecustomer-support-return-to-top)

-   [Protecting Your Intellectual
    Property](#protecting-your-intellectual-property-return-to-top)

-   [Due Diligence](#due-diligence-return-to-top)

-   [Local Professional
    Services](#local-professional-services-return-to-top)

-   [Web Resources](#web-resources-return-to-top)

## Using an Agent or Distributor [**Return to top**](#ch3)

A helpful way to find a local agent is to take advantage of the export
promotion services provided by the U.S. Department of Commerce through
the Commercial Section in the U.S. Embassy in Uruguay. One of the
services provided is a free a Contact List with up to 10 potential
Uruguayan agents, distributors, and importers of the company's product.
This free list contains basic information, such as company name,
address, and phone/fax numbers. For a fee, post will provide a
Customized Contact List with up to 10 potential partners with additional
information, such as a contact name, e-mail, a brief description of the
firm, approximate number of employees, products/services, foreign
companies represented, year established, and sales revenue if available.

Another service is the Gold Key Service (GKS) that allows U.S.
executives to travel to Uruguay efficiently and effectively for
face-to-face meetings with potential business partners. The Commercial
Section will prepare a customized schedule of appointments with
pre-screened potential agents, distributors, or other business contacts
according to the company's needs.

In addition, The ICP (Internationla Company Profile) is an in-depth
confidential background report on the local firm. The report includes:
local company\'s contact information, its size/approximate number of
employees, products/services, financial and business references,
company\'s reputation, Commercial Section's comments/evaluation.

For the full list of services provided, please check in
<http://www.buyusa.gov/uruguay/en/10.html>.

## Establishing an Office [**Return to top**](#ch3)

A new enterprise or the acquisition of an existing Uruguayan company can
be done freely. Shell corporations already formed but with no operations
are also available for acquisition and can be purchased for about
\$2,500. It is advisable to contract an experienced attorney who can
provide guidance in completing the necessary legal paperwork. The
foreign investor is free to adopt any desired legal organization
structure. Corporations or branches are most common forms, but a
personal partnership is also possible.

## Franchising [**Return to top**](#ch3)

Franchising in Uruguay has to date been largely limited to food-related
outlets, hotels, and car rental companies. There are no legal
restrictions on operating a franchise in Uruguay. For information on the
Uruguayan Franchising Association, please check in
[http://www.mtgroup-uy.com](http://www.mtgroup-uy.com/). For more
information or assistance, please e-mail
<montevideo.office.box@mail.doc.gov>.

## Direct Marketing [**Return to top**](#ch3)

U.S. exporters may sell and ship directly to Uruguayan consumers.
Courier packages containing CDs, DVDs, books, and personal items valued
at \$50 or less are exempt from import tariffs. The relevant
regulations, however, are not always uniformly applied and are changed
periodically. Telemarketing and e-mail campaigns are on the rise. Direct
marketing is also popular in heavily transited street corners and during
the summer at beach resorts, where hired promoters distribute flyers and
samples of all types of products and services. Inserts in the Sunday
edition of major newspapers are also a popular form of direct marketing.
Catalog sales are not common as Uruguayans prefer to window shop and
personally choose the goods to be purchased.

## Joint Ventures/Licensing [**Return to top**](#ch3)

Both joint ventures and licensing are common in Uruguay and generally
involve procedures similar to those practiced in most other countries.

## Selling to the Government [**Return to top**](#ch3)

Although U.S. companies may sell directly to the Uruguayan government, a
local address is required for all correspondence. It is advisable to
have a local representative duly registered as a government supplier.
Companies should consider providing product literature and price
quotations to selected government purchasing offices and the different
state-owned entities; these offices and entities frequently refer to
literature on hand when drafting the specifications for their
procurement tenders. Government entities usually do their own
procurement. Uruguayan law requires bids for purchases above \$ 100,000.
Nevertheless, procurement by negotiation is permitted in certain cases.

A G2B website,
[http://www.comprasestatales.gub.uy](http://www.comprasestatales.gub.uy/),
has been established to increase transparency and reduce government
procurement costs. Thus, due to severe budget cutbacks, however, most
government procurement has been put on hold. Government agencies issue
tenders for the purchase of the products and services.

## Distribution and Sales Channels [**Return to top**](#ch3)

All customary import channels exist in Uruguay \-- agents, distributors,
importers, trading companies, subsidiaries, and branches of foreign
firms, among others. Sales outlets are usually traditional storefronts
and supermarkets. No discount general merchandisers operate in Uruguay.

## Selling Factors/Techniques [**Return to top**](#ch3)

Foreign manufacturers with sustained sales in Uruguay generally use the
services of an agent or distributor. Nearly all importers/distributors
are based in Montevideo, although some maintain sales networks in the
Interior as well. A U.S. firm with a local representative has the
advantage of keeping up-to-date with local market conditions as well as
changes in policies affecting trade.

Uruguay is a good market for both new and used equipment and machinery.
Equipment often considered obsolete in the U.S. may still be marketable
to local industry. When making purchase decisions, Uruguayan consumers
consider quality, price, payment terms, delivery time, after-sales
servicing and compatibility with existing systems.

U.S. manufactured products are regarded as high in quality but
occasionally lose price competitiveness vis-à-vis regional products.
Also, they are sometimes rated poorly when it comes to financing, which
is an important factor in sales in Uruguay. American manufacturers
offering flexible, innovative, and competitive credit terms will
overcome a difficult hurdle in achieving export sales to Uruguay.

## Electronic Commerce [**Return to top**](#ch3)

Uruguay has the highest Internet density level of Latin America, yet its
e-commerce figures tend to be very low.

According to a local study, only 11 percent of Uruguay's 600,000
Internet users have purchased products on-line. Of these 11 percent, 40
percent tend to be one-time shoppers while the remaining 60 percent have
shopped on-line more than once.

Between 2001-2002, Uruguayan retailers began launching their websites
and sales campaigns on-line. However, they soon discovered that they
were unable to attract on-line business due to the ongoing recession and
the lack of interest among their clients. Because the costs of
maintaining their websites became too expensive, many of these companies
subsequently removed their websites from the Internet. As the economy is
recovering, companies are starting to go back to using websites and
trying to increase sales on-line. Local supermarkets and home appliances
sales have been the first to pick-up their sales over the Internet. The
items most frequently purchased on-line from overseas include books,
CDs, clothing, hardware, sporting goods, home appliances, toys,
games/DVSs, and software. In most cases, the items purchased are
unavailable locally. Other factors include lower prices, convenience,
and the items' novelty.

The growth of e-business from abroad has also been negatively impacted
by the Government of Uruguay's attempts to impose taxes and measures
that affect the door-to-door delivery of goods arriving via
international couriers.

## Trade Promotion and Advertising [**Return to top**](#ch3)

The cost of advertising in Uruguay has dropped in dollar terms since the
peso's 2002 devaluation. It is advisable to work with a local
advertising agency. \"El Pais\" and \"El Observador\" are the leading
newspapers in terms of circulation; \"Busqueda\" and \"Cronicas
Economicas\" are highly respected weekly journals. Several major
international advertising agencies maintain offices in Montevideo.
Television and radio advertising are also popular. During the summer
months of December-March, light aircrafts with banners are commonly used
to promote new products along the coast. Several local ad agencies
produce TV commercials for clients abroad.

The Embassy periodically hosts industry-specific catalog exhibitions and
trade missions. It also participates with a commercial booth in some
trade fairs. Details concerning these fairs may be obtained from the
Commercial Section, U.S. Embassy Montevideo, Tel: (5982) 418-7777, ext.
2325, Fax: (5982) 418-8581or by e-mail at
<montevideo.office.box@mail.doc.gov>.

Catalogs may be sent via regular U.S. mail to American Embassy
Montevideo, Econ -- Unit 4510, APO AA 34035.

## Pricing [**Return to top**](#ch3)

The Uruguayan market price structure reflects world market prices plus
import tariffs and transportation costs. In addition to tariff
advantages, products from nearby MERCOSUR countries like Argentina and
Brazil enjoy significantly lower transportation costs than do products
from the U.S., Europe, and Asia.

A typical price structure for an item imported from the U.S. is as
follows

(i.e., safety boxes HS code 83.03.00.00):

  ------------------------------------------ -------------- --------------
  **Price (CIF)**                                           **500**

  Import tariff                              9.5%           47.50

  IMADUNI                                    8.0%           40.00

  Bank Charges                               3.0%           15.00

  VAT (recoverable on sale)                  33.0%          193.87

  Import surcharge (COFIS)                   3.0%           21.45

  Consular tax                               2.0%           10.00

  TSA                                                       1.00

  **Total Surcharges**                                      **328.82**

  Final equipment price                                     828.82

  Profit margin:                             10.0%          82.88

  **Final Sale price:**                                     **911.70**
  ------------------------------------------ -------------- --------------

## Sales Service/Customer Support [**Return to top**](#ch3)

Uruguayans consider sales support and customer service important factors
when deciding which products to buy. U.S. manufacturers should seriously
consider using an agent in Uruguay to provide customer support services.
Company representatives resident in neighboring countries are less
effective. A local U.S. firm is selling warranty protection that
supplements that provided by the original equipment manufacturer.

## Protecting Your Intellectual Property [**Return to top**](#ch3)

Uruguay is a member of the World Intellectual Property Organization
(WIPO), and a party to the Bern and Universal Copyright Conventions, and
the Paris Convention for the Protection of Industrial Property. In 2003,
coordinating closely with U.S. and international IPR organizations,
Uruguay passed new TRIPS-compliant copyright legislation. In 1998 and
1999, Uruguay also passed trademark and patent

legislation.

The 2003 copyright law represented a significant improvement over the
1937 law and led the United States Trade Representative (USTR) to
upgrade Uruguay from the \"Priority Watch List\" to the \"Watch List.\"
However, IPR enforcement remains ineffective and the GOU fails to
provide adequate TRIPS consistent protection for confidential test data.

Uruguay signed the WIPO Copyright Treaty (WCT) and the WIPO Performances
and Phonograms Treaty (WPPT) in 1997 but, as of January 2005, has not
ratified them. In its 2003 and 2004 reports, USTR urged the Government
of Uruguay to improve border controls, ratify the WIPO Internet
treaties, and address deficiencies in enforcement against piracy and
counterfeiting. Various IPR chambers, which founded an umbrella
organization in 2004, have implemented aggressive anti-piracy campaigns,
resulting in several successful prosecutions.

## Due Diligence [**Return to top**](#ch3)

It is advisable to obtain a local attorney before setting up operations
in Uruguay or carrying-out substantial amounts of business. Local
attorneys can be very helpful in sorting through the red tape and
bureaucracy, which may otherwise be frustrating for a newcomer. A free
list of local attorneys may be obtained from the Embassy\'s website at
[http://uruguay.usembassy.gov](http://uruguay.usembassy.gov/), under
American Citizen Services. For questions or further assistance, please
contact <montevideo.office.box@mail.doc.gov>

Credit reports on Uruguayan firms may be obtained from the Commercial
Section through the International Company Profile (ICP). For more
information, please click on <http://www.buyusa.gov/uruguay/en/11.html>

## Local Professional Services [**Return to top**](#ch3)

Equifax: [http://www.clearing.com.uy](http://www.clearing.com.uy/),
<http://www.equifax.com/>

Commercial Defense: <http://www.lideco.com.uy/online/html/index.php>

D&B Uruguay: [http://www.mr.com.uy](http://www.mr.com.uy/)

For additional services, please click on
<http://www.buyusa.gov/uruguay/en/17.html>.

## Web Resources [**Return to top**](#ch3)

Government Procurement:
[http://www.comprasestatales.gub.uy](http://www.comprasestatales.gub.uy/),

Uruguayan Chamber of Industry:
[http://www.ciu.com.uy](http://www.ciu.com.uy/)

Uruguayan Chamber of Commerce and Services:
[http://www.camaradecomercio.com.uy](http://www.camaradecomercio.com.uy/)

**Newspapers:**

Busqueda: e-mail <busqueda@adinet.com.uy> Web site not available.

El Observador: [http://www.observa.com.uy](http://www.observa.com.uy/).

El Pais: [http://www.diarioelpais.com](http://www.diarioelpais.com/).

Crónicas Económicas:
[http://www.cronicas.com.uy](http://www.cronicas.com.uy/).

**T.V.**

Channel 4

<http://www.canal4.com.uy/>

<noticieros@montecarlo.com.uy>

Channel 5 (TVEO):

<tveo@hotmail.com>

Channel 10:

<http://www.canal10.com.uy/>

<subrayado@canal10.com>

Channel 12:

<http://www.teledoce.com/>

<telemundo@teledoce.com>

VTV Uruguaya:

<http://www.vtv.com.uy/>

<prensa@vtv.com.uy>

**Major AM radios**

1410 AM Libre

<http://www.1410amlibre.com/>

690 AM Radio Sarandí

<http://www.sarandi690.com.uy/scripts/am/template.asp>

810 AM Radio El Espectador

<http://www.espectador.com/index_home.php>

850 AM Radio Carve

<http://www.carve.com.uy/>

870 AM Radio Universal

<http://www.22universal.com/>

770 AM Radio Ori

<http://www.oriental.com.uy/>

[Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

[[]{#ch4 .anchor}Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

# Chapter 4: Leading Sectors for U.S. Export and Investment 

-   [Agricultural Sector](#agricultural-sectors-return-to-top)

**Commercial Sectors**

-   [Agriculture Machinery](#agricultural-machinery)

-   [Telecommunications Equipment](#leadingsector2)

-   [Fertilizers](#fertilizers)

-   [Medical](#leadinsector4)

-   [IT -- Computer Hardware](#it---computer-hardware)

-   [Infrastructure Projects](#infrastructure-projects)

-   [Chemicals](#chemicals)

## Agricultural Machinery

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2002           2003         2004

  Total Market Size        n/a            n/a          n/a

  Total Local Production   n/a            n/a          n/a

  Total Exports            0              0            0

  Total Imports            10.1           25.3         63.9

  Imports from the U.S.    1.2            4.6          7.7
  ------------------------ -------------- ------------ -------------------

Source: Transaction database

In 2004, the top three suppliers of agricultural equipment were Brazil
(48%), Argentina (29%), and the U.S. (12%). Sixty five percent of
imports were purchases of seeders, planters, and transplanters (HS code
8432.30.10.00). Imports of agricultural equipment are exempt from all
import tariffs.

Due to a combination of high commodity prices and favorable climate,
2004 was a record year in Uruguay's agricultural sector. Overall, the
sector grew 13% in real terms and 29% in dollar terms. In dollar terms,
honey exports increased 16%, dairy products 25%, non-citrus fruit 25%,
malt and barley 27%, wood products, 40%, meat products 58%, live sheep
100%, soybeans 130%, seeds 300%, and live cattle 350%.

### Best Products/Services [**Return to top**](#ch4)

Forestry goods will soon become one of the three top export sectors. In
2004, exports already surpassed the \$100 million benchmark. With a 24%
market share, the U.S. is the second largest supplier of
forestry-related equipment to Uruguay after Brazil (also 24%) and above
Sweden (23%) and Argentina (10 %.) Best prospects for U.S. manufacturers
include those producing technology and equipment for the sawing and
drying processes -- i.e. sawmills, drying sheds, kilns, debarkers,
branch saws, log-moving equipment, dryers, (all within HS codes 8465.91
and .92) and chip-producing machinery, mechanized planting and
harvesting equipment, and machinery for pulp and cellulose plants.

Advances in farm technology, and weather uncertainties are increasing
the sales of irrigation systems. U.S. exports of irrigation machinery
(HS code 8424.81) totaled \$802,593 from almost \$8 million in 2004.
Argentina (41%), Brazil (19%), the U.S. (10%) and Italy (10%) were the
top four suppliers. Total sales of this code in 2003 were \$3.8 million
and \$1.8million in 2002.

### Opportunities [**Return to top**](#ch4)

Given the boom in forestry activity and the projected construction of
major pulp plants by two European investors (worth well over 1.5 billion
dollars), those U.S. manufacturers of pulp, cellulose, and chip-making
equipment will have good sales opportunities. U.S.'s Weyerhaeuser,
already a major market player, is also planning large investments in
forestry plants by 2007.

U.S. manufacturers of prefabricated wooden houses will find a growing
market for their products in Uruguay.

U.S. exporters should not discard the possibility of selling used
machinery. Equipment often considered obsolete in the U.S. can still be
marketed to local industry.

### Resources [**Return to top**](#ch4)

Embassy Contact: Robert Gorter, Sector Specialist --
<gorterrh@state.gov>

<http://www.buyusa.gov/Uruguay/en>

Ministry of Agriculture

[http://www.mgap.gub.uy](http://www.mgap.gub.uy/)

Forestry Division

<http://mgap.gub.uy/forestal.DGF.htm>

## Telecommunications Equipment (TEL)

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2002           2003         2004

  Total Market Size        n/a            n/a          n/a

  Total Local Production   n/a            n/a          n/a

  Total Exports            0              0            0

  Total Imports            44.7           40.1         63

  Imports from the U.S.    11.8           11.1         16.3
  ------------------------ -------------- ------------ -------------------

Source: Transaction database.

Uruguay liberalized the telecommunications market in 2001 \-- except for
national long distance that remains a state monopoly. The liberalization
also created a new regulatory entity (URSEC \-- the Unidad Reguladora de
Servicios de Comunicaciones) to regulate and oversee the Uruguayan
telecommunications market. However, largely because of its significant
political influence, the state-owned telephone company ANTEL continues
to have a stronghold grip on the sector. ANTEL also dominates other
aspects of the country's telecommunications market through its ISP and
cellular subsidiaries ADINET and ANCEL respectively.

ANTEL commands a 77% market share in international long distance; the
rest is divided among three major and five minor competitors. It
commands a similar market share in ISP services.

Three cellular providers share the market with a 19% penetration:
state-owned ANCEL with 395,000 subscribers (GSM/GPRS & TDMA); Spain's
Telefónica Móvil (formerly BellSouth) with 215,000 CDMA subscribers; and
Mexico's CTI Móvil, which began operations in late December 2004 and has
7,000 GSM subscribers as of January 2005. Eighty percent of cellular
owners use prepaid cards.

Fixed line teledensity is almost 80%, one of the highest in Latin
America.

Due to its 100% digitalization, advanced telecommunications
infrastructure, highly trained population, and relatively low salaries,
Uruguay is quickly positioning itself as a preferred location for
regional call centers.

### Best Prospects/Services [**Return to top**](#ch4)

Overall, the U.S. maintains an approximately 25% market share in
telecommunications-related products. This figure jumps to approximately
71% (in 2004) for cellular phones, 35% for antennas, and 31% for
telecomm-related electronic instruments (sections of HS code 8543).
Brazil and the EU are the main suppliers of equipment to Uruguay.

### Opportunities [**Return to top**](#ch4)

Given the strong entry of CTI in late 2004, combining beefy promotion
and low prices, the market for cellular phones and transmission antennas
and equipment will most likely rise considerably (currently both
Telefónica and CTI use roaming agreements with ANCEL, which has the only
national cellular network in place. Both Telefónica and CTI operate
their own network only in the southernmost -- and most populated -- part
of the country.) Telfónica ahs recently announced investments of \$ 30
million to update and expand its network and progressively change it
from CDMA to GSM. CTI has announced total investments of approximately
\$100 million through mid 2006.

Opportunities may also exist for new cable TV operators in Montevideo
(population 1,5 million.) URSEC has announced it will make a call for
interested cable operators in early 2005. Foreign ownership of cable TV
is allowed by law.

### Resources [**Return to top**](#ch4)

Embassy Contact: Robert Gorter, Sector Specialist --
<gorterrh@state.gov>

<http://www.buyusa.gov/Uruguay/en>

URSEC -- Unidad Reguladora de Servicios de Comunicación

[http://www.ursec.gub.uy](http://www.ursec.gub.uy/)

Telfónica

[http://www.movicom.com.uy](http://www.movicom.com.uy/)

CTI

[http://www.ctimovil.com.uy](http://www.ctimovil.com.uy/)

ANCEL

[http://www.ancel.com.uy](http://www.ancel.com.uy/)

## Fertilizers

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2002           2003         2004

  Total Market Size        n/a            n/a          n/a

  Total Local Production   n/a            n/a          n/a

  Total Exports            10.0           12.0         17.0

  Total Imports            20.0           32.3         54.4

  Imports from the U.S.    1.6            12.0         16.3
  ------------------------ -------------- ------------ -------------------

Source: Transaction database

Source: Transaction database

Uruguay is essentially an agricultural country, and the use of
fertilizers is increasingly important to maintain good pastures and
increase soil fertility levels. Within the chemical sector, fertilizers
play a significant role in Uruguay's imports. Uruguay imports 75 percent
of the fertilizers it consumes. Between 1980 and 1990, artificial
grasslands increased by 32 percent.

In 2004, the top two suppliers of raw materials for fertilizers (HS code
3105) were Russia with a 60 percent market share and the U.S. with a 30
percent market share. The 63% of HS Code 3105 imports were 3105.30.90.00
(diammonium hydrogenorthophosphate, and 33% were from 3105.40.00.00
(ammonium dihydrogenorthophosphate and mixtures thereof). In 2003,
Uruguay's total imports were \$32.3 million and again Russia had a 45
percent market share followed by the U.S. (37%), and South Africa (7%).
In 2002, Uruguay imported \$20 million from Russia (46%), Tunisia (28%),
Morocco (13%) and the U.S (8%).

The poor growth of natural pasture in winter, their medium to low
quality, and deficiencies in phosphorus as well as nitrogen in the great
majority of soils, has led to the introduction of nitrogen to the
ecosystem through the application of inorganic fertilizers.

The use of fertilizers has increased in pasturelands and agricultural
crops since the elimination of the 23 percent value added tax and zero
import-tariffs.

In 2002, crop production decreased more than 30 percent and import of
fertilizers decreased by 26 percent due to the economic recession
Uruguay was undergoing at the time. In Uruguay, the amount of fertilized
land varies according to the world price of livestock products. When
beef prices decline, ranchers decrease the quantities of fertilizers
used for agriculture.

The cost in Uruguay to adequately fertilize a hectare of land is
estimated at \$30. However, sales of fertilizers increased by 25 percent
in 2004.

### Best Prospects/Services [**Return to top**](#ch4)

Import of fertilizers from the U.S. increased 20 % in 2004. It is
estimated that by 2005 that percentage could increase by 5 percent.
Agriculture in Uruguay is experiencing a favorable situation, and
important growth in the fertilizer sector is expected.

### Opportunities [**Return to top**](#ch4)

Best prospects are for U.S. producers of calcium-super phosphate, which
is used in grasslands in an average of 150 to 200 kilograms per hectare.
Ammonium sulphate and urea are also considered as two essential
fertilizers used by Uruguay's agriculture sector.

The increased rotation of crops generated in 2004 considerably increased
the quantity and variety of chemical products imported for the
production of fertilizers. U.S. manufactures of Urea, ammonium sulphate,
calcium-super phosphate and many other related products, will have good
sales opportunities in the Uruguayan market.

### Resources [**Return to top**](#ch4)

Embassy Contact: Jorge Balparda, Commercial Assistant --
<balpardajj@state.gov>

<http://www.buyusa.gov/Uruguay/en>

Ministry of Agriculture

[http://www.mgap.gub.uy](http://www.mgap.gub.uy/)

Chamber of Industry

[http://ciu.com.uy](http://ciu.com.uy/)

## Medical Sector

### Overview [**Return to top**](#ch4)

  -------------------------- --------------- ------------- ----------------
                             2002            2003          2004

  Total Market Size          n/a             n/a           n/a

  Total Local Production     n/a             n/a           n/a

  Total Exports              0               0             0

  Total Imports              19.2            18.6          21.3

  Imports from the U.S.      9.3             8.1           9.0
  -------------------------- --------------- ------------- ----------------

Source: Transaction Database

Uruguay's demographic picture ensures that the demand for medical
supplies and equipment is relatively steady and will continue to be so.
Compared to other Latin American countries, Uruguay has an aging
society. More than 20% of the population is 65 years and over, and the
average life expectancy is 75.

Cardiovascular problems and cancer are the two leading causes of death
among Uruguayans over 45 years old. Oncology as well as pediatric care
are key priorities.

Approximately 35% of Uruguay\'s total medical equipment imports are for
the public sector while 65% are for the private sector.

Customs duties for medical equipment range from 0% to 20%.

All medical products and importers have to be registered and approved by
the Ministry of Public Health (MPH). Only local companies approved by
the MPH can register equipment, supplies, and pharmaceuticals.

### Best Prospects/Services [**Return to top**](#ch4)

The majority of products for local distribution are imported from the
U.S., Argentina, Brazil and, the EU. The U.S. is the number one origin
with at least 50% of total imports for products that fall under HS codes
90.18, 90.19, 90.21 and, 90.22. These imports include: CT scanners,
X-ray equipment, angiography and angioplasty, optical and dental
instruments and supplies, supplies for blood transfusions and IV, all
cardiology and surgical equipment and supplies, catheters, probes and
scalps, prosthesis and implants as well as other medical equipment and
supplies in general.

Very little production occurs in Uruguay. Except for low-tech monitors,
almost none of the medical equipment and surgical supplies sold in
Uruguay are produced locally. There is a demand for new, technologically
advanced supplies and equipment, particularly those related to
non-invasive procedures, ultrasound, magnetic resonance imaging and CT
scans.

### Opportunities [**Return to top**](#ch4)

During the past decade, the private sector has been investing in
equipment and facilities in an effort to provide better and more
competitive services. Both public and private institutions turn to U.S.
sources for supplies and training/management services. U.S. suppliers
should take advantage of these opportunities since professionals and
patients value U.S. expertise and equipment. Currently, neither the
Inter-American Development Bank (IADB) nor the World Bank (WB) have
projects in the pipeline that would fund procurement in the medical
sector. For project updates please check in Resources.

### Resources [**Return to top**](#ch4)

Embassy Contact: Lilian Amy, Sector Specialist --
lilian.amy@mail.doc.gov

<http://www.buyusa.gov/Uruguay/en>

Ministry of Public Health:
[http://www.msp.gub.uy](http://www.msp.gub.uy/)

National Fund of Resources (procurement)
[http://www.fnr.gub.uy](http://www.fnr.gub.uy/)

For project updates at the IADB and/or World Bank check in:

IADB:

<http://www.iadb.org/exr/doc98/pro/paisur.htm>

<http://itsdc16.iadb.org/idbppi/aspx/ppProcurement.aspx>

WB

<http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/0,,menuPK:115635~pagePK:64020917~piPK:64021009~theSitePK:40941,00.html>

## IT - Computer Hardware

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2002           2003         2004

  Total Market Size        46.4           44.9         60.5

  Total Local Production   0              0            0

  Total Exports            0              0            0

  Total Imports            46.4           44.9         60.5

  Imports from the U.S.    32.6           26.9         37.3
  ------------------------ -------------- ------------ -------------------

Source: Transaction Database

Government and private sector initiatives to develop technological
parks, a growing and strong software sector, combined with increasing
Internet usage in Uruguay, have maintained hardware imports at high
levels. There is no local production of hardware. At the end of 2004, a
company launched the first local brand but it just assembles equipment
with imported parts. Until 2002, the U.S. accounted for approximately 70
percent of total hardware imports. It still maintains first place but
its share has dropped to 60 percent due to imports from China and Mexico
amongst others.

Various multinationals consider Uruguay as a hub for their data centers.
Colgate-Palmolive International, Sabre, and Ta-Ta Consultancy, for
example, are already using Uruguay's data centers in direct network with
their head offices.

There are no tariffs for items of MERCOSUR origin; for third countries,
the Common External Tariff (CET) ranges from 0 to 16 percent.
Information Technologies and Telecommunications fall under a special
regime within the MERCOSUR agreement.

### Best Prospects/Services [**Return to top**](#ch4)

Hardware equipment and accessories have been the number one import from
the U.S.

Items under HS code 8471 such as CPUs, monitors, magnetic discs,
printers, ATM equipment, hubs, network and digital equipment are key
imports. The U.S. has a 60 percent market share yet, imports from China,
Mexico, Brazil, and China are on the rise.

For items under HS code 8473, the key items are boards, memory cards,
ink cartridges, parts and accessories, discs, magnetic heads and cards
among others. In these items the U.S traditionally had over 70 percent
market share but it has dropped by 10 percent due to goods from China,
Japan, and Singapore among other countries.

### Opportunities [**Return to top**](#ch4)

Demand for hardware and accessories is expected to increase due to
educational programs, increased Internet access, and continuing
modernization of both the private and public sectors. Products need to
have competitive prices due to the rise of imports from countries like
China, Mexico, and Singapore.

### Resources [**Return to top**](#ch4)

Embassy Contact: Lilian Amy, Sector Specialist --
lilian.amy@mail.doc.gov

<http://www.buyusa.gov/Uruguay/en>

Uruguayan IT Chamber: [http://www.cuti.org.uy](http://www.cuti.org.uy/)

Uruguay in Network:
[www.uruguayenred.gub.uy](http://www.uruguayenred.gub.uy/)

Technological Development Program:
[www.pdt.gub.uy](http://www.pdt.gub.uy/)

## Infrastructure Projects

There are major infrastructure projects in the pipeline that U.S.
exporters of goods and services should follow-up on. For up-dates and
more information, please contact montevideo.office.box@mail.doc.gov.

### Opportunities [**Return to top**](#ch4)

-   **Paraná-Paraguay River Transportation System:** The governments of
    Uruguay, Argentina, Brazil, Paraguay, and Bolivia are working
    together on what has become the largest Latin-American \"regional
    integration\" project, the joint use of the 2,500-mile long
    Paraná-Paraguay-Uruguay river system for the transportation of goods
    from these five countries to the Atlantic Ocean. The ongoing project
    calls for investment in civil construction, dredging and
    maintenance, ports (including equipment) and fleet. Further
    opportunities for U.S. involvement lay in the development of
    waterway administration.

-   **Colonia -- Buenos Aires Bridge:** If the bilateral treaty to
    construct the bridge is ratified by Argentina (it was ratified by
    Uruguay in 1999), the Colonia-Buenos Aires Bridge Administration
    hopes to publish a tender to construct this 24-to-32-mile long
    bridge joining Buenos Aires, Argentina, and Colonia, Uruguay.
    Possibilities for U.S. investment will exist in all aspects of this
    multi-billion dollar bridge project. Current plans are for the
    bridge to be constructed and operated by a private concession under
    a build-operate-transfer (BOT) regime.

-   **Southern Cone highway hub:** This toll speedway, still in the
    early planning stages, will connect Sao Paulo, Brazil with Buenos
    Aires, Argentina; covering a distance of over 2,500 Km. This is a
    supplementary project to the Colonia-Buenos Aires Bridge.

-   **Energy Projects:** UTE (Uruguay's state-owned power company) is
    still in the process of awarding the bid for the purchase of a new
    combined-cycle power plant. The natural gas-powered plant will
    replace the existing Batlle y Ordonez plant that uses fuel oil and
    diesel generation equipment. UTE is also focusing on renewable
    resources and has conducted a call of interest from manufacturers,
    suppliers, and installers of wind technology to provide information
    on possible options for a wind-generated power plant in Uruguay. UTE
    would like to set-up a wind-generated facility with a power capacity
    between 5MW and 30MW. Renewable energy sources are starting to play
    an important role in the future of Uruguay. The country needs to
    strengthen its energy security in order to avoid another crisis like
    in 2003-2004. In addition, the Ministry of Industry and Energy is
    analyzing a project that would increase the electrical
    interconnection with Brazil. The project foresees the construction
    of a 500 kV line about 400 kilometers long with a capacity in the
    range of 500 to 1000 MW.

-   **Deep-Sea International Multimodal Port:** CerroFreePort, a
    management and holding company involved in communications,
    transportation, agriculture, fishing, and processing, is
    constructing a new commercial deep-sea international multimode port
    in Montevideo. The port is being developed on a site of
    approximately 100 hectares owned by the firm. CerroFreePort is
    currently seeking investors, constructors, and operators for the
    port facilities. The project includes container terminals and
    facilities to handle timber, automobiles, and fish. INSERVEX BBV
    concluded the economic and financial feasibility studies for this
    project in May 2000. CerroFreePort has obtained all permits required
    by the Uruguayan Government and the Municipality of Montevideo for
    this project.

-   **Railway Rehabilitation:**

> The railway system has been in constant decline for several decades. 
> Except for very short stretches of the suburban grid, passenger
> service was discontinued in 1988. In 2003, the Uruguayan Ministry of
> Transportation issued a tender calling for parties interested in the
> railway rehabilitation project. Two consortia presented offers but
> they were both discarded in mid 2004. It is quite likely that the new
> administration that takes office on March 1 will resume the project.
>
> The 2003 tender called for the following:

Rehabilitation (over a period of four years) and maintaining (over a
period of one year after rehabilitation is complete) approximately 726
miles of Uruguay's railroad grid.  The Ministry selected the following
stretches for the rehabilitation project:

1)  The Montevideo Metropolitan grid: approximately 16 miles,

2)  The Montevideo - Rivera stretch (on the border with Brazil): 
    approximately 350 miles, for the transportation of lumber;

3)  The Montevideo - Rio Branco stretch (on the border with Brazil):
    approximately 280 miles, for the transportation of rice;

4)  The Montevideo - Minas stretch:  approximately 80 miles, for the
    transportation of minerals (mainly cement).

Infrastructure works included the furnishing and installation of
signaling equipment and a train dispatch control systems.  The tender
also called for the supply of 62 miles of track.  (Russian-manufactured
rails are already in-country for use by the contractor.)

> The project's total investment was estimated at \$ 56 million and
> completion expected within four years.  The Ministry of Transportation
> planned to repay the contractor over a period of twenty years a sum
> not to exceed \$ 5 million per year.  Repayment would begin on the
> third year of the contract and end on the 20th year.  The winning
> bidder was the one that requested the lowest yearly repayment amount
> (all other factors such as technical, legal, and financial
> requirements being equal, per bid documents.)  The Government of
> Uruguay was the guarantor of the repayment funds.

-   **Construction of new Airport Terminal:**

> At an auction held on August 27, 2003, Puerta del Sur, a consortium
> comprised of American International Airports (US), SEA (Italy), and
> Grupo Eurnekian (Argentina) won a 20-year concession to remodel and
> operate Montevideo\'s Carrasco International Airport and build a brand
> new terminal.\
> \
> The remodeling of the current airport installation is almost complete.
> The consortium is now primarily seeking proposals from firms
> interested in providing a full turnkey operation for the new terminal.
> It is essential that an attractive financing package accompany the
> proposal. According to the consortium\'s contract with the Uruguayan
> Government, the new passenger terminal must be operational by 2008. A
> Uruguayan architect has also completed the design of the new
> terminal.\
>  \
> Alternatively, the consortium is willing to consider proposals from
> suppliers of the full range of equipment needed to outfit the airport.
> Specifically, it is interested in acquiring such articles as
> carpeting, passenger lounge seating, luggage belt conveyors, high-tech
> security equipment, jet ways, billboards, monitors, etc.

-   **Construction and outfitting of cellulose and chipping plants:**

> Two of the largest forestry investors in Uruguay, Spain's ENCE and
> Finland's Botnia, are planning on constructing cellulose plants
> beginning in 2005. ENCE's plant should be operational by 2008. ENCE
> has already invested \$ 35 million in a logistics plant and port and
> has set aside \$ 508 million for the construction of the cellulose
> plant. The construction of a second pier and second chipping plant is
> also projected.
>
> Botnia's operation calls for an investment of \$ 1 billion for the
> construction of its short-fiber cellulose plant that should be ready
> in approximately 27 months.
>
> U.S.'s Weyerhaeuser, in Uruguay since 1997, is currently the largest
> forestry operator in the country owning approximately 315,000 acres
> (127,500 hectares,) also has planned investments in several
> wood-processing plants.

### Resources [**Return to top**](#ch4)

Embassy Contacts:

Robert Gorter, Sector Specialist -- <gorterrh@state.gov>

Lilian Amy, Sector Specialist -- (Energy projects only)
<lilian.amy@mail.doc.gov>

## Chemicals

### Overview [**Return to top**](#ch4)

  ------------------------ -------------- ------------ -------------------
                           2002           2003         2004

  Total Market Size        n/a            n/a          n/a

  Total Local Production   n/a            n/a          n/a

  Total Exports            n/a            n/a          n/a

  Total Imports            56.8           77.5         101.0

  Imports from the U.S.    3.1            4.7          9.1
  ------------------------ -------------- ------------ -------------------

Source: Transaction database

In 2004, the four top suppliers of chemicals falling within HS code 3808
were: China (30%), Argentina (25%), Brazil (10%), and the U.S. with (3%)
market share. Principal imports corresponded to 3808.30.23.00
(herbicides \-- 49%), 3808.20.29.90 (fungicides \-- 5%) and
3808.10.29.90 (insecticides \-- 9%).

Principal suppliers falling within HS code 3907 were: South Korea (30%),
Brazil (24%), U.S. (15.5%), and Argentina with a (8%) market share.
Principal imports corresponded to: 3907.60.00.00 (polyethylene
terephthalate \-- 88%) and 3907.20.30.00 (other polyesters \-- 5%).

In 2003, the four top suppliers of HS code 3808 chemicals were Argentina
(27%), China (24%), Brazil (12%), and the U.S. with (3.4%) market share.
Principal imports corresponded to the following HS codes: 3808.30.23.00
(herbicides \-- 47%), 3808.20.29.90 (fungicides \--14%), and
3808.10.29.90 (insecticides \--12%).

HS code 3907 suppliers in the same year were: South Korea (45%), Taiwan
(16%), Brazil (10%), U.S. (10%), and Argentina with (9%) market share.
Eighty-eight percent of 3907 imports corresponded to: 3907.60.00.00
(polyethylene terephthalate) and four percent to 3907.20.39.00 (other
polyesters).

In 2002, the four top suppliers of HS code 3808 chemicals were Argentina
(26%), Brazil (15%), China (12%), and the U.S. with (3.4%) market share.
Principal imports corresponded to the following HS codes: 3808.30.29.00
(herbicides \-- 19%), 3808.30.23.00 (herbicides \-- 17%), 3808.20.29.90
(fungicides \--17%) and 3808.10.29.90 (insecticides \--10%). Eight
percent of herbicide imports 3808.10.10.00 were for domestic use.

Main HS code 3907 suppliers in 2002: South Korea (43%), Brazil (25%),
Argentina (23%), and the U.S. (5%) market share. Principal imports
corresponded to: 3907.60.00.00 (polyethylene terephthalate \-- 90%) and
3907.20.39.00 (other polyesters \--3.5%).

The chemical industry is basically an industry of imported raw material
transformation. Companies that are subsidiaries of multinationals firms
form approximately 60% of the chemical industry. During the last few
years, the chemical sector underwent important transformations in
investigation and development of new products, and the use of new
technologies.

Uruguay's chemical industry is composed of three major sub-sectors:

-   Petrochemical industries (including the production of fertilizers),

-   Fine Chemistry and production of specialties including production of
    pesticides for the agricultural sector, pharmaceuticals and hygiene
    articles, and

-   Production of plastics.

**A)** Uruguay has no petrochemical industry. It does not produce basic
raw materials such as ethylene, propylene, etc. The Uruguayan industry
is only involved in the final processing stages.

Invoicing of chemical products was approximately \$70 million; resins
and artificial fibers \$36 millions, while fertilizers and pesticides
invoiced \$50 million.

Fertilizers: ISUSA (Industria Sulfurica Sociedad Anonima) controls
Uruguay's fertilizer production. This company has plants of sulphuric
and oleum with a maximum capacity of 170 tons/day. Fifty-five percent of
the production of sulphuric acid is for the production of fertilizers,
while the other 45 % is for the production of other chemical products.

**B)** Chemical industries and specially "fine chemistry" have been
particularly dynamic in Uruguay since the 1980's. Eighty-five companies
integrate Uruguay's pharmaceutical industry. From these, 10 command 47%
of the country's sales. However, none of them has gained more than the
10% of the market. There are 65 laboratories, and small and medium firms
that have 1/3 of the market. Uruguay's pharmaceutical industry invoices
approximately \$250 million per year.

Small and medium companies make up the cosmetic industry. Many
multinational companies have bought small local firms to market their
brand perfumes and cosmetics.

**C)** The plastic sector invoices approximately \$180 million per year.
Raw material is almost entirely imported from different countries and it
represents between the 40-50% of the finished product price. Uruguay's
Plastic Association is formed by 60 of the 120 companies acting in the
country's plastics sector. The sector processes 150,000 tons of plastic
material; an important part of that production is for export.

### Best Prospects/Services [**Return to top**](#ch4)

Regulatory issues:

A special program with the National Environment Office -- DINAMA has
been implemented for the recycling of plastics. As Uruguayans become
more environmentally conscious, plastic recycling equipment may be a
good opportunity for U.S. exports.

### Opportunities [**Return to top**](#ch4)

In the Plastic Sector, there are good opportunities for U.S. producers
of resins for the manufacturer of PET containers. Since almost all the
raw material used for the production of fertilizers is imported, there
is a good market for U.S. firms in that sector.

### Resources [**Return to top**](#ch4)

### 

Chamber of Industry

[http://www.ciu.com.uy](http://www.ciu.com.uy/)

Uruguayan Plastic Association

E-mail: <auip@ciu.com.uy>

## Agricultural Sectors [**Return to top**](#ch4)

**MARKET OVERVIEW**

Total imports of food and beverage products (F&B) dropped drastically
from \$225 million in 2001 to \$127 million in 2003, due to the severe
economic crisis, but have recovered somewhat to total around \$150
million in 2004. The U.S. share of imported consumer-ready food products
averaged 7 percent in 1999-2001, dropped drastically after the crisis,
and is gradually recuperating.

As the economy continues to recover, U.S. F&B imports will increase due
to:

1)  High sanitary standards compared to European products,

2)  Higher competitiveness because of the depreciation of the Euro as
    compared to the dollar, and

3)  The influence of U.S. culture, encouraged by cable TV, the Internet,
    and Uruguayans traveling and studying in the United States.

Best prospects are for products of well-known brands, commodity-type
products that are not produced domestically, and ingredients for the
food processing industry, especially the meat and dairy sectors. There
are also good prospects for those ingredients that, during the crisis,
had been replaced by local inexpensive brands and are again demanded for
their higher quality.

Prices of U.S. F&B products are 30-35 percent higher than their
counterparts manufactured locally. Price is not expected to be an
obstacle for imported foods among the most affluent segment of the
population.

Uruguay has no quotas or restrictions, and reasonable transparent
labeling and sanitary requirements. Most FDA-approved processed F&B can
be imported into the country.

Exports of food products to Uruguay have good potential. Imported food
products for mass consumption are typically purchased from Argentina,
Brazil, and Chile, while imports from Europe and the United States are
aimed at the middle and higher income sectors. U.S. companies with
competitive prices should consider tapping the mass market through the
development of the private label concept.

Post foresees increased opportunities for U.S. food ingredients,
especially for the dairy and livestock sectors, as most local companies,
after the devaluation of 2002, have become very competitive in world
markets and are focusing on increasing production and expanding exports.
 In addition, because many food ingredients are not produced locally,
they must be imported.  Food ingredients from the U.S. are considered as
high quality and innovative.

**Best High-Value Product Prospects**

Traditionally, Uruguay was, and will continue to be, a net importer of
several F&B and food ingredients, which it does not produce
domestically. Under the current economic situation, which combines a
strong dollar compared to the Uruguayan peso, and a weak purchasing
power, best prospects are for high-value F&B products and
"commodity-type" products which are not manufactured locally, and food
ingredients.

I)  Imported F&B which are not produced locally or whose production is
    not enough to supply the domestic market include:

    -   pepper and other condiments, kiwifruit, grapefruit, chewing gum,
        candy, bonbons, snacks, sauces, food preparations, chocolate,
        dehydrated potatoes, alcoholic beverages, energy drinks,
        beverage preparations, pet food.

II) Food ingredients:

    -   pork, frozen, soup preparations, raw nuts, cocoa paste/butter,
        additives, ingredients for the dairy and meat industries

Some well-known brands of F&B, which traditionally have a stable demand
in Uruguay, are imported and packaged domestically (e.g., Scotch, which
accounts for the highest level of consumption in the region).

**Outlook for U.S. Exports of Food and Beverage Products**

  ----------------------------------- -----------------------------------
  ADVANTAGES                          CHALLENGES

  Most Uruguayan consumers are aware  Recession and the economic crisis
  of the wide variety and high        fostered import substitution with
  quality of U.S. F&B.                domestically produced F&B, whose
                                      quality improved significantly as a
                                      result of technological investments
                                      during the 1990´s.

  Influence of U.S. culture is        Weaker purchasing power and a high
  significant and felt through cable  unemployment rate limit sales of
  TV, the Internet, and Uruguayans    imported F&B.
  traveling or studying in the United 
  States.                             

  Supermarkets are willing to have    In general, MERCOSUR intra-regional
  imported F&B on the shelves as a    trade pays zero import tariffs,
  tool to differentiate from other    which prompts strong competition
  retailers.                          primarily from Argentina and
                                      Brazil. Import tariffs for other
                                      countries vary between 20-23
                                      percent for most F&B.

  During the past few years, the      The relatively small size of the
  self-serve format and the display   market and small import volumes
  of food products have improved      discourage U.S. suppliers.
  remarkably.                         

  Large supermarket chains are        There has been a lack of interest/
  logistically ready to import foods  responsiveness of U.S. F&B
  directly.                           suppliers vis-à-vis the Uruguayan
                                      market.

  Cold storage facilities are good    \-\--
  and can easily meet manufacturers´  
  requirements.                       

  After the competitiveness gained    \-\--
  with the devaluation of the         
  Uruguayan peso against the dollar,  
  the expansion of the food           
  processing industry, primarily to   
  supply export markets, creates very 
  good opportunities for U.S. food    
  ingredient imports.                 

  There has been greater exposure of  \-\--
  local retailers to U.S. exporters   
  and products through FAS-sponsored  
  marketing activities.               
  ----------------------------------- -----------------------------------

**Key trade information**

  -------------------------------------------------------------- --------
  Agricultural Imports from All Countries (\$Million) / U.S.     450 / 5
  Market Share (%) 2003                                          

  Consumer Food Imports From All Countries (\$Mill.) / U.S.      130 / 7
  Market Share (%) 2003                                          

  Edible Fishery Imports From All Countries (\$Mill.) / U.S.     11 / 0.8
  Market Share (%) 2003                                          
  -------------------------------------------------------------- --------

Includes imports of products of animal and vegetable origin.

Source: National Statistics Institute

**Uruguayan official entities regulating F&B imports are as follows:**

Municipality of Montevideo -- Food and Health Service (Intendencia
Municipal de Montevideo -- Bromatología)

Web: [http://www.montevideo.gub.uy](http://www.montevideo.gub.uy/)

Uruguay's Technological Laboratory (Laboratorio Tecnológico del
Uruguay - LATU)

Web: [http://www.latu.gub.uy](http://www.latu.gub.uy/)

Ministry of Livestock, Agriculture, and Fisheries (Ministerio de
Ganadaeria, Agricultura y Pesca -- MGAP)

Web: [http://www.mgap.gub.uy]()

National Meat Institute (Instituto Nacional de Carnes -- INAC)

Web: [http://www.inac.gub.uy](http://www.inac.gub.uy/)

National Wine Institute (Instituto Nacional de Vitivinicultura \--
INAVI)

Web: [http://www.inavi.com.uy](http://www.inavi.com.uy/)

Ministry of Public Health (Ministerio de Salud Publica -- MSP)

Web: [http://www.msp.gub.uy](http://www.msp.gub.uy/)

[[]{#ch5 .anchor}Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

# Chapter 5: Trade Regulations and Standards

-   [Import Tariffs](#import-tariffs-return-to-top)

-   [Trade Barriers](#trade-barriers-return-to-top)

-   [Import Requirements and
    Documentation](#import-requirements-and-documentation-return-to-top)

-   [U.S. Export Controls](#u.s.-export-controls-return-to-top)

-   [Temporary Entry](#temporary-entry-return-to-top)

-   [Labeling and Marking
    Requirements](#labeling-and-marking-requirements-return-to-top)

-   [Prohibited and Restricted
    Imports](#prohibited-and-restricted-imports-return-to-top)

-   [Customs Regulations and Contact
    Information](#customs-contact-information-return-to-top)

-   [Standards](#standards-return-to-top)

-   [Trade Agreements](#trade-agreements-return-to-top)

-   [Web Resources](#web-resources-return-to-top-1)

## Import Tariffs [**Return to top**](#ch5)

Goods entering from MERCOSUR countries are exempt of import tariffs.
Tariffs on non-locally-produced raw materials, intermediate goods and
consumer goods range from 2 -- 6%, 8 -- 6% and 10 -- 2 0%, respectively.

MERCOSUR member countries agreed on a Common External Tariff (CET) in
December 1994. On January 1, 1995, the CET entered into effect on
imports from non-member countries, with rates ranging (with some
exceptions) between 0 and 20%. Changes have been in effect several times
during the first ten-year, raising the CET up to 23% but since January
1, 2004 the maximum CET has been back to 20%.

All MERCOSUR countries have requested exceptions to the CET. Uruguay
applies preferential tariffs on the import of vehicles and supplies for
agriculture, forestry, and hotels. The Uruguayan Government also gives
special treatment to imports of raw materials and other inputs for the
production of export goods. Moreover, in December 2001, the Uruguayan
Government unilaterally decided not to increase tariffs on capital goods
as mandated by the MERCOSUR convergence schedule for the CET. Uruguay
has applied tariff exemption to imports of capital goods from all
origins. These exemptions are valid until December 30, 2005.
Historically, on January 1 of each year these exemptions are extended
for a full year. Finally, MERCOSUR partners may apply tariffs different
from the CET in a number of telecommunication and information related
goods until 2006. For the vast majority of Uruguayan requests, the
Uruguayan Government applies import tariffs that are lower than the
bloc's CET.

## Trade Barriers [**Return to top**](#ch5)

Quotas were eliminated in the mid-1970s and non-tariff barriers,
including reference and minimum import prices, were substantially
reduced in the 1990s. Certain imports (e.g. firearms, radioactive
materials, fertilizers, vegetable products and frozen embryos) require
special licenses or customs documents. Bureaucratic delays may also add
to the cost of imports, although importers report that a
"de-bureaucratization" commission has improved matters.

Reference prices and a few remaining minimum export prices were
eliminated in 1994 and 2002, respectively. In 2002 and 2003, Uruguay
imposed specific import duties and inconvenient financing terms to
discourage some imports from Argentina.

Uruguayan importers are required to pay a 4% ad-valorem tax on all
freight arriving via foreign-registered airlines. Freight that arrives
by the national airline, PLUNA-VARIG, is exempt from the tax. A civil
aviation agreement between Uruguay and the United States provides for
equal treatment between U.S. and Uruguayan airfreight carriers. U.S.
carriers are therefore also exempt from this tax.

## Import Requirements and Documentation [**Return to top**](#ch5)

Only commercial firms, industrial firms, or individuals listed in the
registry of importers may legally import products into Uruguay. A
pro-forma invoice is required to start with the import procedures.
Importers must use an agent to handle their customs entries. Required
documents are standard and must include certificate of origin.

## U.S. Export Controls [**Return to top**](#ch5)

Most export transactions do not require specific approval from the U.S.
Government. In order to legally complete certain export transactions, an
exporter must obtain a special export license in advance. Licenses are
required in certain situations involving national security, foreign
policy, short supply, nuclear non-proliferation, missile technology,
chemical, and biological weapons, regional stability, crime control, or
terrorist concerns and high performance computers amongst other
products.

For additional information, please check in:
<http://www.bxa.doc.gov/PoliciesAndRegulations/index.htm>

## Temporary Entry [**Return to top**](#ch5)

Products may be imported under temporary admission or drawback
provisions. Products imported under temporary admission provisions are
exempt from import duties but must be re-exported within 18 months.

Temporary admission is for processing, assembling, transforming or
integrating imported inputs to the final production of exported goods.
This system aims to improve Uruguay's foreign competitiveness while it
reduces costs of imported items.

The system covers: raw materials; parts and accessories; motors;
packaging and packaging materials; matrix, molds and models;
intermediate goods; agricultural products; products that are part of
production process.

## Labeling and Marking Requirements [**Return to top**](#ch5)

Labeling and marking requirements for all imported products are
controlled by LATU (Technical Laboratory), Ministry of Public Health,
and municipal offices. Basically, labels must contain a Spanish-language
description of the main ingredients of the product, country of origin,
expiration date, net weight, and the full name and address of the
Uruguayan importer (plus validity and cooking instructions in the case
of foodstuffs). Imported products may include the original label of the
country/language of origin but should have a sticker/label attached to
the package with the information requested by Uruguayan authorities.
Manuals, product literature, and other written materials, while not
required, will be more useful if written in Spanish. A consumer defense
law, approved in 2000, regulates labeling requirements.

## Prohibited and Restricted Imports [**Return to top**](#ch5)

Occasionally, the government bans imports of certain food articles and
pet food containing ingredients that are prohibited or are originating
from areas declared by the World Health Organization to be unfit. The
municipality of Montevideo imposes strict, and at times, outdated and
arbitrary regulations regarding the composition of food articles (e.g.
dyes, etc.). Imports of used cars are prohibited.

## Customs Contact Information [**Return to top**](#ch5)

#### Dr. Hector Nilo Perez (Capt. Luis A. Salvo as of March 1, 2005)

National Customs Director (Director Nacional de Aduanas)

Rambla 25 de Agosto de 1825 s/n

Montevideo, Uruguay

Tel: (5982) 916-2141; Fax: 916-4691

[http://www.aduanas.gub.uy](http://www.aduanas.gub.uy/)

## Standards [**Return to top**](#ch5)

-   [Overview](#overview-return-to-top-6)

-   [Standards Organizations](#standards-organizations-return-to-top)

-   [Product Certification](#standardsproductcertification)

-   [Publication of Technical
    Regulations](#publication-of-technical-regulations-return-to-top)

-   [Labeling and Marking](#labeling-and-marking-return-to-top)

###  Overview [**Return to top**](#standards-return-to-top)

Uruguay uses the metric system of weights and measures. The Laboratorio
Tecnologico del Uruguay (LATU --
[http://www.latu.org.uy](http://www.latu.org.uy/)) is the officially
approved agency that controls standards and quality control of imports
and exports. A national quality committee reviews and recommends
issuance of ISO 9000/9001 certificates, if warranted. The Uruguayan
Institute of Technical Norms (UNIT --
[http://www.unit.org.uy](http://www.unit.org.uy/) carries out
certification and elaborates technical norms. It is the exclusive
representative of ISO, IEC, and the World Quality Council (WQC) in
Uruguay.

###  Standards Organizations [**Return to top**](#standards-return-to-top)

Laboratorio Tecnologico del Uruguay - LATU --
[http://www.latu.org.uy](http://www.latu.org.uy/)

Uruguayan Institute of Technical Norms (UNIT --
[http://www.unit.org.uy](http://www.unit.org.uy/)

###  Product Certification [**Return to top**](#standards-return-to-top)

UNIT and ASTM signed a Memoranda of Understanding (MOU) in November
2001. For more information check in
<http://www.astm.org/cgi-bin/SoftCart.exe/SNEWS/JANUARY_2002/intl_jan02.html?L+mystore+gswn7960>,
check in MOUs.

UNIT ([http://www.unit.org.uy](http://www.unit.org.uy/)) is the official
Certification office fro all industries with the exception of beef it is
the National Institute of Beef (INAC
[http://www.inac.gub.uy](http://www.inac.gub.uy/)).

###  Publication of Technical Regulations [**Return to top**](#standards-return-to-top)

Diario Official (national gazette)
<http://www.impo.com.uy/pagprincipal.htm>

Proposed technical regulations and comments are submitted and published
in [http://www.ursec.gub.uy](http://www.ursec.gub.uy/) and
[http://www.ursea.gub.uy](http://www.ursea.gub.uy/).

###  Labeling and Marking [**Return to top**](#standards-return-to-top)

Labeling and marking requirements for all imported products are
controlled by LATU (Technical Laboratory), Ministry of Public Health,
and municipal offices.

## Trade Agreements [**Return to top**](#ch5)

Uruguay is a member of the World Trade Organization (WTO) and the Latin
American Integration Association (ALADI, a Montevideo-based trade
association that includes ten South American countries plus Mexico and
Cuba). Uruguay holds numerous bilateral trade agreements with ALADI
partners. In June 2004, the Uruguayan Government broadened the
comprehensive trade agreement originally signed with Mexico in 1999.
Uruguay is a founding member of MERCOSUR and Montevideo is the
headquarters of its Secretariat. Trade relations with neighboring
Argentina and Brazil are particularly important and Uruguay holds
separate trade arrangements for certain products with Brazil and
Argentina (PEC and CAUCE, respectively), which are renewed periodically.
Uruguay is an active participant in FTAA and chairs the FTAA
agricultural committee.

## Web Resources [**Return to top**](#ch5)

Laboratorio Tecnologico del Uruguay - LATU --
[http://www.latu.org.uy](http://www.latu.org.uy/)

Uruguayan Institute of Technical Norms (UNIT --
[http://www.unit.org.uy](http://www.unit.org.uy/)

Diario Official (national gazette)
<http://www.impo.com.uy/pagprincipal.htm>

Communication Regulatory Agency:
[http://www.ursec.gub.uy](http://www.ursec.gub.uy/)

Energy and Water Regulatory Agency:
[http://www.ursea.gub.uy](http://www.ursea.gub.uy/)

[Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

[[]{#ch6 .anchor}Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

# Chapter 6: Investment Climate

-   [Openness to Foreign
    Investment](#openness-to-foreign-investment-return-to-top)

-   [Conversion and Transfer Policies](#thirtytwo)

-   [Expropriation and
    Compensation](#expropriation-and-compensation-return-to-top)

-   [Dispute Settlement](#dispute-settlement-return-to-top)

-   [Performance Requirements and
    Incentives](#performance-requirements-and-incentives-return-to-top)

-   [Right to Private Ownership and
    Establishment](#right-to-private-ownership-and-establishment-return-to-top)

-   [Protection of Property
    Rights](#protection-of-property-rights-return-to-top)

-   [Transparency of Regulatory
    System](#transparency-of-regulatory-system-return-to-top)

-   [Efficient Capital Markets and Portfolio
    Investment](#efficient-capital-markets-and-portfolio-investment-return-to-top)

-   [Political Violence](#political-violence-return-to-top)

-   [Corruption](#corruption-return-to-top)

-   [Bilateral Investment
    Agreements](#bilateral-investment-agreements-return-to-top)

-   [OPIC and Other Investment Insurance
    Programs](#opic-and-other-investment-insurance-programs-return-to-top)

-   [Labor](#labor-return-to-top)

-   [Foreign-Trade Zones/Free
    Ports](#foreign-trade-zonesfree-ports-return-to-top)

-   [Foreign Direct Investment
    Statistics](#foreign-direct-investment-statistics-return-to-top)

-   [Web Resources](#web-resources-return-to-top-2)

## Openness to Foreign Investment [**Return to top**](#ch6)

The Government of Uruguay recognizes the important role foreign
investment plays in economic development and strives to maintain a
favorable investment climate. Aside from a few sectors in which foreign
investment is not permitted, neither there is de jure nor de facto
discrimination toward investment by source or origin, and national and
foreign investors are treated equally.

Economic officials of the incoming leftist Encuentro Progresista-Frente
Amplio administration, which will take office on March 1, 2005, have
stressed the importance of local and foreign investment for social and
economic development. The orthodox incoming economic team has set an
ambitious goal of doubling Uruguay\'s investment/GDP ratio over a
five-year term by attracting direct foreign investment, developing the
local capital market, and conscientiously implementing existing
legislation. So far, the incoming administration has resisted pressures
from unions and lobbyists and sent positive signals to investors.

In 1998, the Uruguayan Government (GOU) approved a law (no.16906) that
declares that promotion and protection of national and foreign
investment is in the nation\'s interest. The law states that (1) foreign
and national investments are treated alike, (2) investments are allowed
without prior authorization or registration, (3) the government does not
prevent the establishment of investments in the country, and (4)
investors may freely transfer abroad their capital and profits from the
investment. There are no restrictions on technology transfer. The new
administration plans to expand the use of a single-window mechanism,
instated in mid-2003, to channel all investment requests. One hundred
percent foreign ownership is permitted, except where restricted for
national security purposes.

In general, the Government of Uruguay does not require that firms
receive specific authorization to set up operations, import and export,
effect deposits and banking transactions in any currency, or obtain
credit. Screening mechanisms do not apply to foreign or national
investments, and special government authorization is not needed for
access to capital markets or to foreign exchange. In demonopolization
and concession programs, foreign investors are treated as nationals and
are allowed to participate in any stage of the process.

Uruguay has a history of maintaining state monopolies in a number of
areas in which direct foreign equity participation is prohibited by law.
While privatization is widely opposed by the population, however, some
progress has been achieved dismantling government-run monopolies and
increasing private sector participation in the economy.

Several state-owned entities have contracted with foreign- owned
companies to provide specific services for a given period of time under
Build-Operate-Transfer (BOT) regimes. While basic telephone services
remain a monopoly, government-owned ANCEL, Spanish Telefonica, and
Mexican America Movil provide cellular services. Local wireless loop
systems, the installation, and maintenance of public telephones, data
transmission, and some value-added services are also open to the private
sector. Although the Telecommunication and Postal Services regulatory
agency, URSEC, aims to preserve a level playing field for private and
public firms, it sometimes lacks the strength to enforce regulations on
government-owned ANTEL.

Other sectors demonstrate varying levels of privatization. For instance,
although private power generation is now allowed, the state-owned power
company, UTE, still holds a monopoly on wheeling rights. Also, despite
various commitments to the IMF, the state-owned oil company, ANCAP,
remains the only importer and refiner of petroleum products. In a
December 2003 referendum, over 62% of voters repealed a law to allow
ANCAP to associate with foreign partners and demonopolize refined oil
imports. Port services are widely privatized, with private companies
providing most services since 1992. Fifty-one percent of the state-owned
airline PLUNA was sold to the private sector in 1996, and the GOU plans
to sell the rest. The insurance and mortgage sectors were demonopolized
in 1996, but workers compensation insurance remains a government
monopoly. While there was some private sector provision of water and
sewage services in resort areas, an October 2004 constitutional
amendment, approved by 64% of voters, declared water a national resource
to be controlled exclusively by the State.

Although U.S. firms have not encountered major obstacles in Uruguay\'s
investment climate, some have been frustrated by the length of time it
takes to complete bureaucratic procedures and tenders, and by numerous
changes in tax codes and regulations since 2001.

## Conversion and Transfer Policies [**Return to top**](#ch6)

Uruguay maintains a long tradition of not restricting the purchase of
foreign currency or the remittance of profits abroad, even during the
2002 banking and financial crisis. Foreign exchange can be freely
obtained at market rates.

## Expropriation and Compensation [**Return to top**](#ch6)

In the event of expropriation, the Uruguayan Constitution provides for
the prompt payment of fair compensation. While there have not been any
expropriations in the recent past, the constitutional amendment on water
services could lead to expropriation of private firms in that sector.

There are no laws that require local ownership, except in specific areas
reserved for the State.

## Dispute Settlement [**Return to top**](#ch6)

The investor may choose between arbitration and the judicial system to
settle disputes. Uruguay is a member of the International Center for the
Settlement of Investment Disputes since September 2000. Uruguay\'s legal
system is based on a civil law system derived from the Napoleonic Code,
and the government does not interfere in the court system. Corruption is
not a major problem and the Judiciary is independent, albeit sometimes
slow.

## Performance Requirements and Incentives [**Return to top**](#ch6)

Current investment law treats local and foreign investors equally and
does not provide preferential tax deferrals, grants, or special access
to credit for foreign investors. Consequently, foreign investors are not
required to meet any specific performance requirements. Furthermore,
foreign investors are not inhibited by discriminatory or excessively
onerous visa, residence, or work permit requirements. The government
does not require that nationals own shares or that the share of foreign
equity be reduced over time. Moreover, technology can be freely
transferred and the government does not impose conditions on invest
permits.

For some activities, the government has established asset, value-added
and internal tax benefits, as well as social security payment and tariff
reductions. In addition, it provides preferential treatment for capital
good imports and tax deferrals for exports. Quotas are not applied to
exports or imports. Investments in sectors such as forestry, hotels, and
agro-industries receive additional incentives. The incoming
administration may tie incentives more closely to job creation,
technology transfer, and decentralization.

A government decree establishes that government tenders will favor local
products or services, provided they are of equal quality and not more
than 10% more expensive than foreign goods or services. U.S. and other
foreign firms are able to participate in government-financed or
subsidized research and development programs on a national treatment
basis.

## Right to Private Ownership and Establishment [**Return to top**](#ch6)

Private ownership does not restrict a firm or business from engaging in
any form of remunerative activity, except in two areas \-- national
security interest, and legal government monopolies (see Openness to
Foreign Investment).

## Protection of Property Rights [**Return to top**](#ch6)

Secured interests in property and contracts are recognized and enforced.
Mortgages exist, and there is a recognized and reliable system of
recording such securities. Uruguay\'s legal system protects the
acquisition and disposition of all property, including land, buildings,
and mortgages. Nevertheless, execution of guarantees is usually a slow
process.

In mid-2003, several political factions attempted to pass a bill that
would have alleviated the payment burden of Uruguayan dollar debtors
adversely affected by the peso\'s devaluation. The law would have forced
banks to re-negotiate the terms of their loans. However, the GOU opposed
the initiative and succeeded in negotiating an \"administrative
solution\" with all parties. This extended loan maturities and allowed
some debtors, especially in the agricultural and mortgage sectors, to
make smaller payments on a negotiated basis. The government pledged to
favor credible debtors over those who have been delinquent for a long
time. The incoming administration will likely continue this policy. The
law also eliminated the value-added tax on mortgage interest.

\-- Protection of Intellectual Property Rights: Uruguay is a member of
the World Intellectual Property Organization (WIPO), and a party to the
Bern and Universal Copyright Conventions, and the Paris Convention for
the Protection of Industrial Property. In 2003, coordinating closely
with U.S. and international IPR organizations, Uruguay passed new
TRIPS-compliant copyright legislation. In 1998 and 1999, Uruguay also
passed trademark and patent legislation.

\-- Copyrights: The 2003 copyright law represented a significant
improvement over the 1937 law and led the United States Trade
Representative (USTR) to upgrade Uruguay from the \"Priority Watch
List\" to the \"Watch List.\" However, IPR enforcement remains
ineffective and the GOU fails to provide adequate TRIPS consistent
protection for confidential test data. Uruguay signed the WIPO Copyright
Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT) in
1997 but, as of January 2005, has not ratified them. In its 2003 and
2004 reports, USTR urged the GOU to improve border controls, ratify the
WIPO Internet treaties, and address deficiencies in enforcement against
piracy and counterfeiting. Various IPR chambers, which founded an
umbrella organization in 2004, have implemented aggressive anti-piracy
campaigns, resulting in several successful prosecutions.

\-- Patents: Patents are protected by Law No.17164 of September 2, 1999.
Invention patents have a twenty-year term of protection from the date of
filing. Patents for utility models and industrial designs have a
ten-year term of protection from the filing date and may be extended for
and additional five. The law provides a lax definition of compulsory
licensing and vaguely defines compensation as \"adequate remuneration\"
to be paid to the patent-holder. Some U.S. industry groups believe that
the law\'s compulsory licensing requirements are not TRIPS consistent.

\-- Trademarks: The GOU approved a trademark law on September 25, 1998
upgrading trademark legislation to TRIPS standards. Under this law, a
registered trademark lasts ten years and can be renewed as many times as
desired. It provides prison penalties of six months to three years for
violators, and requires proof of a legal commercial connection to
register a foreign trademark. Enforcement of trademark rights is
adequate and has improved in recent years as a result of an intense
anti-smuggling campaign.

## Transparency of Regulatory System [**Return to top**](#ch6)

Transparent and streamlined procedures regulate foreign investment.
However, long delays and repeated appeals can significantly delay the
process to award international and public tenders.

## Efficient Capital Markets and Portfolio Investment [**Return to top**](#ch6)

Foreign investors have equal access to local credit on market terms.
Although the private sector can access a variety of credit instruments,
access to long-term credit in the local banking sector became difficult
after the 2002 financial crisis.

Uruguay\'s capital market is underdeveloped and concentrated in public
paper. There is no effective regulatory system to encourage and
facilitate portfolio investment. Although there are two stock exchanges,
trading is very limited (only 17 firms are registered at one of the
exchanges). Despite an increase in commercial paper in 1996 and 1997,
the market soon stalled. Currently only a few firms issue obligations,
and commercial paper transactions are minimal. There are only two
investment funds that mostly service domestic clients and invest their
funds in Uruguayan public paper. Risk rating firms first came to Uruguay
in 1998.

Private firms do not use \"cross shareholding\" or \"stable
shareholder\" arrangements to restrict foreign investment. Nor do they
restrict participation in or control of domestic enterprises.

## Political Violence [**Return to top**](#ch6)

There have not been any significant incidents involving politically
motivated damage to property or installations. Uruguay is a stable
democracy in which respect for the rule of law is the norm and most of
the population is committed to non-violence.

## Corruption [**Return to top**](#ch6)

Uruguay has strong laws to prevent bribery and other corrupt practices.
In 2004, Uruguay ranked 28th in Transparency International\'s Corruption
Perception Index, second only to Chile in Latin America. A law against
corruption in the public sector was approved in 1998, and acceptance of
a bribe is a felony under Uruguay\'s penal code. Money laundering is
penalized with sentences of up to ten years (which also apply to
Uruguayans living abroad). Despite Uruguay\'s favorable rating and
effective legislation, public surveys indicate a widespread perception
of public sector corruption. Several former Uruguayan officials and one
judge were prosecuted in recent years. Overall, U.S. firms have not
identified corruption as an obstacle to investment.

## Bilateral Investment Agreements [**Return to top**](#ch6)

In late 2004, Uruguay and the United States signed a Bilateral
Investment Treaty (BIT) and an Open Skies Agreement, which are pending
ratification as of January 2005. The incoming Minister of Economy
publicly announced his intention to seek rapid ratification of the BIT.

Uruguay also has BITs with Australia, Belgium, Canada, Chile, China,
Czech Republic, Finland, France, Germany, Great Britain, Hungary,
Israel, Italy, Luxembourg, Malaysia, Mexico, The Netherlands, Panama,
Poland, Romania, Spain, Switzerland, and Venezuela. BITs with Armenia,
Portugal, and Sweden are pending ratification. In addition, Uruguay
signed Double Taxation Agreements with Germany, Korea and Hungary.

## OPIC and Other Investment Insurance Programs [**Return to top**](#ch6)

The GOU signed an investment insurance agreement with the Overseas
Private Investment Corporation (OPIC) in December 1982. The agreement
allows OPIC to insure U.S. investments against risks resulting from
expropriation, inconvertibility, war, or other conflicts affecting
public order. OPIC programs are currently used in Uruguay.

In 2002, after four years of recession and in the face of devaluations
in neighboring economies, Uruguay eliminated its decade-long exchange
rate bands and allowed the peso to float freely. There is no black
market for currency exchange and the U.S. Embassy uses the official rate
when purchasing local currency.

## Labor [**Return to top**](#ch6)

The Uruguayan labor force of some 1.2 million is well educated and adept
in the application of modern industrial techniques. The government has
instituted technical training programs to help meet industry\'s skilled
<laborsecretaria@dne.miem.gub.uy> requirements. At 97%, Uruguay\'s
literacy rate is the highest in Latin America and on par with that of
the United States.

Social security payments are high and increase employers\' basic wage
costs by almost 50%. A law approved in May 1998 provides incentives for
companies that hire young people, including a reduction of between
12-18% in employer social security and healthcare contributions. In May
2001, the GOU passed a bill permitting further reductions in social
security payments by employers in several sectors. The social security
system currently allows for retirement at age 60 for both men and women.
Workers who become disabled on the job receive a monthly payment from
the government equal to 70% of their salaries plus free medicine and
medical care.

The labor market improved in 2004 with the average unemployment rate
dropping from 17.1% in 2003 to 13.4%, and real average wages starting to
stabilize. Activity and employment rates were 58% and 51%, respectively,
in November 2004, with approximately 165,000 people unemployed. The
government provides six months of unemployment benefits and is
evaluating whether to extend the term to nine months.

Uruguay has ratified a large number of ILO conventions that protect
worker rights, and generally adheres to their provisions. The Uruguayan
constitution guarantees workers the right to organize and strike, and
union members are protected by law against dismissal for union
activities.

Labor unions are independent from government and political party
control. Sympathy strikes are legal. The level of unionization in the
private sector has steadily decreased since the return of democracy in
1985 due to: 1) a loss of jobs in the industrial sector; 2) an increase
in jobs in the informal sector and in smaller companies where it is more
difficult to form unions; and 3) a lack of Ministry of Labor initiative
in regulating labor negotiations. There is no collective bargaining
activity, and there have been few union achievements since 1985. Current
labor concerns include those related to salaries, the reinstatement of
collective bargaining mechanisms, housing, job creation, and opposition
to the government\'s economic policies. A February 2003 public opinion
poll indicated that 52% of the population distrusts the leaders of the
labor umbrella organization, PIT/CNT.

Unions are optimistic about relations with the new administration, and
received a promise from the designated Industry Minister, a centrist
businessman, and the designated Labor Minister to convene salary
councils. However, wage increases seem unlikely given other public
spending commitments. Union leaders stated they do not expect immediate
changes.

## Foreign-Trade Zones/Free Ports [**Return to top**](#ch6)

Free trade zones permit all types of commercial, industrial, and service
activities. These activities are considered to take place outside of the
national territory. When goods from a free trade zone are introduced
into the rest of the country, they are treated as \"imports.\"

Law No.15921 of December 17, 1987 regulates the operation of FTZs within
the country. The law allows storage and warehousing, manufacturing, and
financial and data processing, and related activities to take place
within FTZs. Nine FTZs are located throughout the country (one public,
one mixed ownership, and seven private). MERCOSUR regulations treat
products manufactured in all member state FTZs as extra-territorial.
Products manufactured by Uruguayan or foreign firms in Uruguayan FTZs
are not eligible for MERCOSUR certificates of origin. Furthermore, these
products do not benefit from MERCOSUR customs union advantages and must
pay the MERCOSUR common external tariff when entering member countries.

Goods, services, products, and raw materials of foreign and Uruguayan
origin may be brought into the zones, held, processed, and re-exported
without payment of Uruguayan customs duties or import taxes. Goods of
Uruguayan origin entering into FTZs are treated as Uruguayan exports for
tax and other legal purposes. Goods that enter Uruguayan customs
territory from FTZs are subject to customs duties and import taxes.
Industrial or commercial government monopolies are not honored within
FTZs.

Local and foreign-owned industries alike enjoy several advantages in an
FTZ. They are exempt from all domestic taxes, with exemptions granted
exclusively to free trade zone tenants with approved contracts from the
General Trade Authority. Customs duty exemptions are applicable to the
entry and exit of goods. The only additional cost to employers is the
contribution to social security for Uruguayan employees. The employer
does not pay social security taxes for non-Uruguayan employees if those
employees waive coverage under the Uruguayan social security system.
However, Uruguayans must comprise 75% of a company\'s labor force to
qualify for FTZ tenancy.

## Foreign Direct Investment Statistics [**Return to top**](#ch6)

Foreign Direct Investment (FDI) in Uruguay has been low because of the
country\'s small market, the lack of major privatizations, and the small
number of firms that base their MERCOSUR-wide operations locally.
Uruguay\'s FDI/GDP ratio of 1% is well below the Latin
American/Caribbean average of about 3%, and that of its Southern Cone
neighbors Argentina and Brazil, with 2.6%, and Chile with 5.6%.

According to Uruguay\'s Central Bank, FDI stock declined from \$2.4
billion in 2001 to \$1.4 billion in 2002, mostly due to decreased asset
values following the sharp 2002 economic contraction and devaluation.
Economic recovery led the stock of FDI to increase to \$1.8 billion in
2003, and major investments in 2004 should contribute to further
increases.

A 1999 study by the GOU (which has not been updated) concluded that the
United States was the largest single investor in Uruguay (33% of overall
FDI), followed by

Argentina and Spain. According to the U.S. Department of Commerce, the
2003 stock of U.S. direct investment in Uruguay amounted to \$600
million.

Although figures on investment by sector are unavailable, most foreign
investment in recent years has gone into forestry-related activities,
service industries, construction (i.e. hotels, office buildings and
infrastructure), and mining.

Uruguayan contact information for investment-related inquiries:

Mr. Victor Angendscheidt

Executive Director

Uruguay XXI

web page: [http://www.uruguayxxi.gub.uy](http://www.uruguayxxi.gub.uy/)

## Web Resources [**Return to top**](#ch6)

Uruguayan IT Chamber: [http://www.cuti.org.uy](http://www.cuti.org.uy/)

Copyright Association:
[http://www.agadu.com.uy](http://www.agadu.com.uy/)

Software Legal del Uruguay:
[http://www.softlegal.org](http://www.softlegal.org/)

Uruguayan Chamber of Music Records:
[http://www.cudisco.org](http://www.cudisco.org/)

Uruguayan Society if Artists and Interpreters:
[http://www.sudei.org.uy](http://www.sudei.org.uy/)

University of Montevideo IPR Group:
[http://www.gpi.espaciolibre.net](http://www.gpi.espaciolibre.net/)

National IPR Directorate: [http://dnpi.gub.uy](http://dnpi.gub.uy/)

[Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

[[]{#ch7 .anchor}Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

# Chapter 7: Trade and Project Financing

-   [How Do I Get Paid (Methods of
    Payment)](#how-do-i-get-paid-methods-of-payment-return-to-top)

-   [How Does the Banking System
    Operate](#how-does-the-banking-system-operate-return-to-top)

-   [Foreign-Exchange
    Controls](#foreign-exchange-controls-return-to-top)

-   [U.S. Banks and Local Correspondent
    Banks](#u.s.-banks-and-local-correspondent-banks-return-to-top)

-   [Project Financing](#fiftyseven)

-   [Web Resources](#web-resources-return-to-top-3)

## How Do I Get Paid (Methods of Payment) [**Return to top**](#ch7)

Exports to Uruguay are usually financed through export letters of
credit, sales on open account or drafts on foreign buyers. There are no
foreign currency restrictions in Uruguay. Payment for any kind of
imports can be made in cash or on the terms agreed by the parties (i.e.
a letter of credit or a sight draft with deferred payment). The
international banking departments of major U.S. banks and special
programs under EX-IM Bank, Overseas Private Investment Corporation
(OPIC), and the Small Business Administration (SBA) generally finance
U.S. exports.

For credit rating agencies see links below:

Equifax: [http://www.clearing.com.uy](http://www.clearing.com.uy/),
<http://www.equifax.com/>

Commercial Defense: <http://www.lideco.com.uy/online/html/index.php>

D&B Uruguay: [http://www.mr.com.uy](http://www.mr.com.uy/)

## How Does the Banking System Operate [**Return to top**](#ch7)

As of June 2004, Uruguay's banking system is composed of 4
government-owned banks (including the Central Bank), 12 private banks, 6
financial institutions, 6 offshore banks, and 4 savings and loans
organizations.

Uruguay's government-owned banks have traditionally held a major share
of the banking market. The public banking system consists of the Central
Bank, Banco de la República Oriental del Uruguay (BROU), Banco
Hipotecario del Uruguay (BHU), and Nuevo Banco Comercial. The Central
Bank formulates monetary and exchange policies in coordination with the
Executive Branch, issues currency, and manages the country's
international reserves. It also supervises banks and insurance firms. It
has no retail operations.

BROU is Uruguay's largest bank, and offers loans at the lowest rates and
best terms. It accounts for 40% of the banking system's assets and
liabilities. As a result of the banking crisis, in August 2002, BROU
froze dollar-denominated time deposits and established a schedule for
their repayment in annual installments over a three-year period (25% of
the deposit in the first year, 35% in the second and 45% in the third).
The bank successfully released the first two installments of time
deposits while retaining the vast majority of depositors within the
bank.

Uruguay's mortgage bank, BHU, is the leading supplier of housing loans.
During the banking crisis, the government transferred BHU's
dollar-denominated time deposits to BROU. The Uruguayan Government has
agreed with the IMF to restructure and strengthen BHU as a result of
BHU's severe financial difficulties.

Insurance provision was a government monopoly until the mid-1990s. In
1996, a law was passed to demonopolize the insurance sector, except for
workers´ compensation. Private firms are now allowed to compete with the
government-owned provider, Banco de Seguros del Estado (BSE).

The 2002 banking crisis resulted in the closure of four banks (Banco
Comercial, Banco de Credito, Banco Montevideo and Banco Caja Obrera) and
the creation of a new one (Nuevo Banco Comercial), which is comprised of
the assets and liabilities of all of the closed banks except for Banco
de Credito. Although Nuevo Banco Comercial is 100% government-owned, it
is privately operated. Banco de Credito (formerly 51% owned by the
government and 49% by the Moon Group) was permanently closed.

Private banks supply Uruguay\'s private sector with short-term,
dollar-denominated credit and receive mostly dollar-denominated deposits
(almost 95% of the private sector\'s deposits in the private commercial
banking system are dollar-denominated.) Most private banks, including
US-owned ones, successfully weathered the 2002-banking crisis and
honored all deposits in a timely manner. The Uruguayan Government is
struggling to de-dollarize the economy and create a market for deposits
and credits in an account unit insulated against inflation (\"*unidades
indexadas\"*).

Uruguay had traditionally been regarded as a safe-haven for Argentine
depositors, and before the 2002-banking crisis, Argentines held about
40% of total deposits. However, many Argentine depositors withdrew their
deposits in 2002 and their share dropped to about 30% by the end of
2004. Total deposits, which dropped 50% during the crisis, are gradually
returning to banks. Deposits increased by 21% (about \$1.6billion) from
its lowest mark in March 2003 through December 2004 (latest data
available). However, credit, which nose-dived by 40% during the
1999-2002 crisis, has not yet picked up.

Offshore financial institutions operate with limited functions (e.g.
they may neither accept resident deposits nor offer checking account
services).

For more information, please check in
[http://www.bcu.gub.uy](http://www.bcu.gub.uy/) (English version is
available.)

## Foreign-Exchange Controls [**Return to top**](#ch7)

Uruguay does not apply foreign exchange controls.

## U.S. Banks and Local Correspondent Banks [**Return to top**](#ch7)

###### Citibank 

Tel: 5982-915-5687; Fax: 5982-916-0645; web:
[http://www.citibank.com.uy](http://www.citibank.com.uy/)

###### BankBoston

Tel: 5982-916-0076; Fax: 5982-916-2209; web:
[http://www.bankboston.com.uy](http://www.bankboston.com.uy/)

All local banks have correspondent banking arrangements with some major
U.S. bank.

## Project Financing [**Return to top**](#ch7)

Some of the major sources of project financing include:

A.  Export-Import Bank: Provides U.S. exporters with several financing
    programs, including working capital guarantees, export credit
    insurance, commercial bank guarantees, medium-term credits, small
    business credits, direct loans to foreign purchasers, and financial
    guarantees. Eximbank finances all types of U.S. goods and services
    as long as they contain at least 50% U.S. content and are not
    military-related. Further information on the bank's programs may be
    obtained at 1-800-565-exim. Eximbank's Uruguay Desk Officers may be
    contacted by phone at 202-565-3913, by fax at 202-565-3931, or at
    [www.exim.gov](http://www.exim.gov/).

```{=html}
<!-- -->
```
A.  Overseas Private Investment Corporation (OPIC): OPIC\'s programs
    include loans and loan guarantees, investment funds, and political
    risk insurance (currency inconvertibility, expropriation, and loss
    of assets or income caused by political violence). OPIC may be
    contacted at 202-336-8400 or at [www.opic.gov](http://www.opic.gov/)

B.  Commodity Credit Corporation (CCC): The CCC finances exports of U.S.
    agricultural commodities. The CCC may be reached by phone at 202
    720-6301 or by fax at 202 690-0727.

C.  Small Business Administration (SBA): SBA\'s export revolving line of
    credit loan helps small businesses export their products. SBA may be
    contacted at 1-800-827-5722 or at
    [www.sba.gov](http://www.sba.gov/).

D.  World Bank and Inter-American Development Bank: Both banks offer
    programs that allow U.S. companies to compete in major international
    infrastructure projects. The public information centers of both
    banks may be contacted through 202-458-5454 (or
    [www.worldbank.org](http://www.worldbank.org/)) and 202-623-2096 (or
    [www.iadb.org](http://www.iadb.org/)) respectively.

E.  Trade and Development Agency (TDA): TDA has invested several million
    dollars in Uruguay for feasibility studies and other activities that
    support infrastructure development and modernization projects. TDA
    may be contacted at 703-875-4357 or at
    [www.tda.gov](http://www.tda.gov/).

Several States also have their own export financing programs.

## Web Resources [**Return to top**](#ch7)

Export-Import Bank of the United States:
[http://www.exim.gov](http://www.exim.gov/)

Country Limitation Schedule:
<http://www.exim.gov/tools/country/country_limits.html>

OPIC: [http://www.opic.gov](http://www.opic.gov/)

Trade and Development Agency: <http://www.tda.gov/>

SBA\'s Office of International Trade: <http://www.sba.gov/oit/>

USDA Commodity Credit Corporation:
<http://www.fsa.usda.gov/ccc/default.htm>

U.S. Agency for International Development:
[http://www.usaid.gov](http://www.usaid.gov/)

World Bank: [http://www.worldbank.org](http://www.worldbank.org/)

Inter American Development Bank:
[http://www.iadb.org](http://www.iadb.org/)

[Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

[[]{#ch8 .anchor}Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

# Chapter 8: Business Travel

-   [Business Customs](#business-customs-return-to-top)

-   [Travel Advisory](#travel-advisory-return-to-top)

-   [Visa Requirements](#visa-requirements-return-to-top)

-   [Telecommunications](#telecommunications-return-to-top)

-   [Transportation](#transportation-return-to-top)

-   [Language](#language-return-to-top)

-   [Health](#health-return-to-top)

-   [Local Time, Business Hours and
    Holidays](#local-time-business-hours-and-holidays-return-to-top)

-   [Temporary Entry of Materials and Personal
    Belongings](#temporary-entry-of-materials-and-personal-belongings-return-to-top)

-   [Web Resources](#web-resources-return-to-top-4)

## Business Customs [**Return to top**](#ch8)

Business dress and appearance, as well as one\'s general approach to
business relations, should be very conservative. An advance appointment
for a business visit is usually necessary and considered a customary
courtesy. Punctuality is generally observed. Typically, business is
discussed after social amenities. Business breakfasts, cocktails, and
lunches are common. Dinners are common for closing a business agreement.

## Travel Advisory [**Return to top**](#ch8)

For travel advisories, if any, please check in
[http://uruguay.usembassy.gov](http://uruguay.usembassy.gov/) and/or
<http://travel.state.gov/travel/cis_pa_tw/cis/cis_1054.html>

No inoculations are currently necessary for entry. International
travelers are advised to contact their local public health department,
physician, or travel agent at least two weeks before departure to obtain
current information on health requirements.

## Visa Requirements [**Return to top**](#ch8)

U.S. citizens need a valid American passport, but visas are not required
for holders of regular passports. Those traveling on diplomatic or
official passports must have a valid visa in addition to the passport.
For more information, please check in
<http://travel.state.gov/travel/travel_1744.html>

Business and tourist stays are limited to 90 days and may be extended
for an additional 90 days.

[]{.mark}

U.S. Companies that require travel of foreign businesspersons to the
United States should allow sufficient time for visa issuance if
required. Visa applicants should go to the following links:

State Department Visa Website: <http://travel.state.gov/visa/index.html>

United States Visas.gov: <http://www.unitedstatesvisas.gov/>,

U.S. Embassy in Uruguay, Consular Section:
[http://uruguay.usembassy.gov](http://uruguay.usembassy.gov/)

## Telecommunications [**Return to top**](#ch8)

Uruguay has a fixed line teledensity of almost 80 percent, one of the
highest in Latin America. Its 100 percent digitalized, only ANTEL the
state owned company provides basic telephony and eight additional
companies compete with ANTEL in international calls. There are three
cellular providers with GSM/GPRS, TDMA, and/or CDMA services. High-speed
Internet is easily accessible in major hotels, airports, and cyber-cafes
are readily available. AT&T, MCI, and Sprint call cards are accepted.

## Transportation [**Return to top**](#ch8)

There are currently two daily U.S.-carrier (American Airlines and United
Airlines) flights to and from the U.S. There is one non-stop flight to
Miami form Montevideo on Tuesdays, Thursdays, and Fridays; all other
flights have a stopover in Buenos Aires. Internal transportation is
mainly by car or bus. Within Montevideo, bus and taxi services are
extensive, safe, and inexpensive.

## Language [**Return to top**](#ch8)

Spanish is the official language. Although a vast majority of the
business community speaks English or other languages, interpreters are
commonly used during business meetings.

## Health [**Return to top**](#ch8)

There are no major health hazards. Uruguay enjoys high health standards
for food and drinking water.

## Local Time, Business Hours, and Holidays [**Return to top**](#ch8)

Uruguay observes standard time (GMT-3). From December -- March, Daylight
Savings Time is in effect.

Normal business hours are Monday through Friday from 9:00 a.m. -- 6:00
p.m. Banks are open to the public Monday through Friday from 1:00 --
5:00 p.m. Stores are also open on Saturdays from 9:00 a.m. to 1:00 p.m.
Shopping centers open daily from 10:00 AM - 10:00 PM.

**Holidays**

Jan. 1 New Year\'s Day

Jan. 6 Epiphany

Feb/Mar. Two days for Carnival (6 weeks before Holy Week)

Mar/Apr. Five days for Holy Week (dates vary from year to year)

Apr. 19 Landing Day of the \"33 Orientales\"

May 1 Labor Day

May 18 Battle of Las Piedras

Jun. 19 Birthday of Artigas

July 18 Constitution Day

Aug. 25 Independence Day

Oct. 12 Columbus Day

Nov. 2 All Saints Day

Dec. 25 Christmas

## Temporary Entry of Materials and Personal Belongings [**Return to top**](#ch8)

There are no restrictions on the temporary entry of business-related
equipment (i.e. laptops, etc.) Refundable deposits may be required and
are payable at the point of entry.

## Web Resources [**Return to top**](#ch8)

Ministry of Tourism:
[http://www.turismo.gub.uy](http://www.turismo.gub.uy/)

[Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

[Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

# Chapter 9: Contacts, Market Research, and Trade Events

-   [Contacts](#contacts-return-to-top)

-   [Market Research](#market-research-return-to-top)

-   [Trade Events](#trade-events-return-to-top)

## Contacts [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

Mr. James Perez

Economic/Commercial Officer

American Embassy Montevideo

UNIT Econ 4510

APO AA 34035

Tel: (5982) 418-7777 ext. 2329

Fax: (5982) 418-8581

E-mail: PerezJM@state.gov

or <Montevideo.office.box@mail.doc.gov>

[http://www.buyusa.gov/en](http://www.buyusa.gov/en /)

Embassy web site: [http://uruguay.usembassy.gov]{.underline}

**Uruguay -- U.S. Chamber of Commerce (AMCHAM)**

e-mail: <info@ccuruguayusa.com>

[http://www.ccuruguayusa.com](http://www.ccuruguayusa.com/)

**Country Trade or Industry Associations in Key Sectors**

Chamber of Industries: [http://www.ciu.com.uy](http://www.ciu.com.uy/)

Chamber of Commerce and Services:
[http://www.camaradecomercio.com.uy](http://www.camaradecomercio.com.uy/)

Chamber of Agro-Industries:
[http://www.camaramercantil.com.uy](http://www.camaramercantil.com.uy/)

Union of Exporters:
[http://www.uruguayexporta.com](http://www.uruguayexporta.com/)

###### 

###### Government

**Ministry of Industry, Energy, and Mining**

[http://www.miem.gub.uy](http://www.miem.gub.uy/)

###### Ministry of Economy and Finance

[http://www.mef.gub.uy](http://www.mef.gub.uy/)

###### Ministry of Tourism

[http://www.turismo.gub.uy](http://www.turismo.gub.uy/)

###### Ministry of Transport and Public Works

[http://www.mtop.gub.uy](http://www.mtop.gub.uy/)

###### Ministry of Agriculture and Fishing

[http://www.mgap.gub.uy](http://www.mgap.gub.uy/)

##### Office of the President of Uruguay

[http://www.presidencia.gub.uy](http://www.presidencia.gub.uy/)

##### Parliament

[http://www.parlamento.gub.uy](http://www.parlamento.gub.uy/)

## Market Research [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

To view market research reports produced by the U.S. Commercial Service
please go to the following website:
[http://www.export.gov/marketresearch.html](http://www.export.gov/marketresearch.html )
and click on Country and Industry Market Reports.

Please note that these reports are only available to U.S. citizens and
U.S. companies. Registration to the site is required, but free of
charge.

## Trade Events [**Return to top**](#chapter-9-contacts-market-research-and-trade-events)

Please click on the link below for information on upcoming trade events.

<http://www.export.gov/tradeevents.html>

For events in Uruguay, please click on the link below

<http://www.buyusa.gov/uruguay/en/19.html>

For further assistance, please contact:
<montevideo.office.box@mail.doc.gov>

[Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

[[]{#ch10 .anchor}Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

# Chapter 10: Guide to Our Services

The U.S. Commercial Service offers customized solutions to help your
business enter and succeed in markets worldwide. Our global network of
trade specialists will work one-on-one with you through every step of
the exporting process, helping you to:

-   Target the best markets with our world-class research

-   Promote your products and services to qualified buyers

-   Meet the best distributors and agents for your products and services

-   Overcome potential challenges or trade barriers

For more information on the services the U.S. Commercial Service offers
U.S. businesses, please click on the link below.

-   <http://www.buyusa.gov/uruguay/en>

[Return to table of
contents](#doing-business-in-uruguay-the-2005-country-commercial-guide-for-u.s.-companies)

# 

U.S. exporters seeking general export information/assistance or
country-specific commercial information should consult with their
nearest **Export Assistance Center** or the **U.S. Department of
Commerce\'s Trade Information Center** at **(800) USA-TRADE**, or go to
the following website: [http://www.export.gov]()\
\
To the best of our knowledge, the information contained in this report
is accurate as of the date published. However, **The Department of
Commerce** does not take responsibility for actions readers may take
based on the information contained herein. Readers should always conduct
their own due diligence before entering into business ventures or other
commercial arrangements. **The Department of Commerce** can assist
companies in these endeavors.