G/TRIMS/W/136  
2 July 2014  
(14-3792)  Page: 1/2  
Committee on Trade-Related Investment Measures  Original: Spanish  
 
  URUGUAY – LOCAL CONTENT REQUIREMENTS 
FOR WIND FARM INVESTMENTS  
REPLIES TO FOLLOW-UP QUESTIONS FROM THE UNITED STATES1 
The following communication, dated 24 June 2014, is being circulated at the request of the 
delegation of Uruguay.  
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  FOLLOW-UP QUESTIONS FROM THE UNITED STATES 
In a prior submission to the Comm ittee on Trade-Related Investment 
Measures (G/TRIMS/W/125), the United States drew the attention of Members of the WTO Committee on Trade Related Investment Measures (TRIMS) 
to Decree 403/009 (24 August 2009), signed by the President of Uruguay, and issued 
by the Ministry of Industry, Energy and Mini ng. This decree addresses bids to construct 
wind farms in Uruguay, and provides, inter alia , at Article 2, part III: "For a bid 
to be considered, the domestic inputs that co nstitute the investment must reach at least 
20% of the total amount of the investment ma de for the construction of the wind farm, 
regardless of the infrastructure work necessary for their insertion in the energy grid. The bidding terms and conditions will estab lish a bonus mechanism at the comparative 
price of the incorporation of local inputs  above the 20% level." Uruguay provided 
responses to questions about this measure in document G/TRIMS/W/132. However, these responses have raised further concerns about the use of local content 
requirements in connection with invest ments in Uruguay. We request that the 
Government of Uruguay help us understan d the potential impact of this decree 
and provision by addressing the following questions: 
 
Question 1  In the responses provided in document G/TRIMS/W/132, Uruguay appears 
to acknowledge that Decree 403/009 im posed a 20% local content requirement 
on investment in Wind Farms in Uruguay. However, in doing so, Uruguay provided 
a link to a document describing the methodology for calculating local content that 
appears to establish a 35% minimum local content threshold. Can Uruguay clarify 
whether investment under Decree 403/009 is subject to a 20% or 35% local content requirement? 
 
Reply 
 Decree 403/009 imposes a minimum local content of 20%. 
 
The reference to 35% does not concern a percentage of local content on investment, but rather, it is part of the methodology for assessing the Local Component of Investment (CNI). 
Thus, to determine whether or not capital goods forming part of a given investment are local, 
they need only reach the 35% local content threshold to be counted as 100% local. 
                                               
1 G/TRIMS/W/135. G/TRIMS/W/136 
- 2 - 
  Question 2 
 In its responses, Uruguay notes that the procedure established by Decree 403/009 has been fully completed and no new contracts will be issued pursuant to that decree. 
Have other decrees been issued that  impose local content requirements 
in the renewable energy sector?  
Reply 
 
Yes, three executive decrees were subsequently approved urging the National Electricity Plants and Transmission Authority (UTE) to deve lop competitive procedures for the procurement 
of wind energy (Decrees 159/011 and 4 24/011) and solar photovoltaic energy 
(Decree 133/013) generated by local or foreign- owned private companies. In all three cases, 
the same local content requirements as in decree 403/009 were included. 
 
Question 3  
Does Uruguay foresee the adoption of loca l content requirements in sectors other 
than renewable energy?  Reply 
 In the energy sector, there are no other local content requirements.  
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