RESTRICTED  
  
WT/TPR/G/374  
23 May 2018 
(18-3043) Page: 1/21 
Trade Policy Review Body  Original:  Spanish  
 
   
TRADE POLICY REVIEW  
REPORT OF  
URUGUAY  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
Uruguay is attached.  
 
 
Note: This report is subject to restricted circulation and press emb argo until the end of the 
first session of the meeting of the Trade Policy Review Body on Uruguay.  WT/TPR/G/374  • Uruguay  
- 2 - 
  Conten ts 
1  MACROECONOMIC ENVIRO NMENT AND ECONOMIC P OLICY  ................................ .........  3 
1.1  Introduction  ................................ ................................ ................................ .................  3 
1.2  Macroeconomic outlook 2018 -2022 ................................ ................................ .................  6 
1.3  Economic policy framework  ................................ ................................ ............................  7 
2  TRADE ENVIRONMENT AN D TRADE POLICY  ................................ ................................ .. 9 
2.1  Trends in foreign trade and investment  ................................ ................................ ...........  9 
2.2  Trade policy and integration  ................................ ................................ .........................  12 
2.3  Related policies  ................................ ................................ ................................ ..........  14 
2.3.1   Electronic government  ................................ ................................ ..............................  14 
2.3.2   Customs reform  ................................ ................................ ................................ ....... 15 
2.3.3   New Uruguayan Customs Code (CAROU)  ................................ ................................ .... 17 
2.3.4   Single Window for Foreign Trade  ................................ ................................ ...............  18 
2.3.5   Micro, Small and Medium Enterprises (MSMEs)  ................................ ............................  19 
2.4  Uruguay and the WTO  ................................ ................................ ................................ . 20 
3  CONCLUSIONS  ................................ ................................ ................................ ...........  21 
 
 
  WT/TPR/G/374  • Uruguay  
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  1  MACROECONOMIC ENVIRO NMENT AND ECONOMIC P OLICY  
1.1  Introduction  
1.1.  Over the last  15 years Uruguay has experienced  continuous economic growth (see chart  
below ), a trend without precedent  in the country 's history . During that period the economy 
recovered from the serious crisis of 2002, dealt with the global financial crisis of 2008 and  
successfully managed significant regional macroeconomic tensions and imbalances . The strong 
performance of the Uruguayan economy is the result of prudent management of public policies 
(especially economic policy ) when external conditions were favourable, and the  profound national 
structural changes that are now in place or pending . 
Chart 1.1 Change in GDP by period, 1916 -2017  
 
Source:  Bonino, N. ; Román, C. ; and Willebald, H. (2012) ; and BCU.  
1.2.  Despite the gener ally worsening  external outlook, especially at regional level as a result of 
Brazil 's deepening economic crisis, the Uruguayan economy has continued to expand,  and closed 
2017 with the level of activity up by  2.7%. The main driver  behind this growth was the commerce 
sector, which was 7.5 % larger than in 2016 and is recovering from the 7.2 % cumulative fall it 
experienced in 2014 -2016. Also worth y of note is the transport and communications sector , which 
recorded 8.5 % growth in annual terms . The main driver s of growth on the demand  side were 
private consumption and exports, which rose by 4.4 % and 7.6 % respectively.  
1.3.  This year the Government projects that the Uruguayan economy will grow by 3.2 %, while 
private analysts predict a rate of 3.4 % for 2018 based on t he mean response to the survey of 
economic expectations conducted in March by the BCU.  
1.4.  One important factor to note is the "decoupling " of Uruguay from Argentina and Brazil in 
recent years . Uruguayan economic performance has historically been contingent up on that of its 
neighbours and there used to be  lengthy periods when it  was possible to take the average of their 
performance to project  how Uruguay's economy would  behave . 
100110120130140150160170180190200
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16Physical Volume Index
(GDP in the final year of recession)
Years1944/1951
1922/1928
1934/1939
1989/19941973/19812003/ 2017WT/TPR/G/374  • Uruguay  
- 4 - 
  Chart 1.2 Cumulative GDP growth, 2011 -2018  
Index 2011 = 100  
 
* Projections based on data from BCRA Argentina (market expectations survey), Brazil BCB ( market 
expectations survey ), provisional estimates for Uruguay from the MEF.  
Source : Argentina : INDEC ; Brazil: IBGE; Uruguay : BCU. 
1.5.  The changes that have made Uruguay stand apart in  the region include greater diversification 
of exports in terms of both markets and products , and the strong inflows of foreign direct 
investment from various countries  over the last 15  years , reflecting con fidence in the count ry's 
institutional framework and economic policy.  
1.6.  Thanks to the incorporation of technology and knowledge into the various stages of the 
production system (in traditional sectors  such as agriculture ), exports of goods from Uruguay 
succeeded in diversifying into buoyant new international markets . As a result, between 2003 and 
2017 exports of goods and services grew at an annual cumulative rate of 10 %. 
1.7.  The economic policy of recent years has focused on  maintain ing macroeconomic balances 
through coordinated action in the three areas of  monetary and exchange -rate policy, fiscal policy 
and incomes policy . Monetary policy still focuses  on keeping  inflation  (measured by  monetary 
aggregates ) within a target r ange of  3% to 7%. Having exceeded 11 % in May  2016, annual 
inflation has been falling sharply  and in March this year reached an annualized rate of 6.6 %, within  
the target range . This trend  reflect s a slowing of  non-tradables inflation (rise in prices of goo ds 
and services that are not traded abroad) from close to 11 % down to 7%, and a reversal in the rise 
in the prices of fruits and vegetables as a consequence of climate -related factors.  
1.8.  Uruguay has a floating exchange rate regime with occasional government intervention to 
cushion volatility . The dollar has tended to depreciate over the past few years, in line with its trend 
globally, leading  the Central Bank of Uruguay (BCU) to purchase dollars  in order  to prevent undue 
pressure on the exchange rate.  
1.9.  Public finances continue to be the Government 's main focus . The consolidated public sector 
balance for 2017 was -3.5% of GDP, an improvement of 0.4 % compared to end -2016. The 
Government 's objective for the period continues to be fiscal consolidation.  
1.10.   Until 2013 t he Uruguayan economy had for many years been growing faster than its 
long-term growth rate (3 %), resulti ng in historically extraordinarily favourable  rates of 
employment and unemployment . In recent years when growth has been lower, the labour market 
has be come less buoyant.  
1.11.   At end -2017 the employment  rate was 57.9 % compared to 59.3 % in 2013 , while  the 
unemployment rate was 7.8 % compared to 6.5 % in 2013 . Despite falling employment, the wage 
bill is still rising and in 2017 represented  49.8% of GDP.  
95100105110115120125
2011 2012 2013 2014 2015 2016 2017 2018*Brazil
Argentina
Uruguay17.2%
2.0%
-0.8%WT/TPR/G/374  • Uruguay  
- 5 - 
  1.12.   On income s policy, this year sees the opening of the Seventh Collective Bargaining Round 
(CCSS) where 203 groups will be negotiating wage agreements (representing around 80 % of the 
economically active population), making it the largest ever round of negotiations . The collective 
bargaining guidelines proposed by the Government set out the following targets in a balanced way, 
in this order of priority : improved levels of employment ; promotion of differential wage rises 
having regard both to the lowest -paid workers and  to the actual situation in each sector ; and 
protection of the wage improvements secured in recent years in order to preserve  real-term wage 
levels.  
1.13.   Although the significant economic growth of the last decade enabled Uruguay to sustain a 
buoyant labour market with high employment rates and historically low unemployment, in recent 
years that buoyancy has been falling and is one of the major challenges  currently facing the 
Government . At end -2017 employment was 57.9 %, a loss of around 3,000  jobs compared t o 
2016. In 2017 unemployment averaged 7.9 %, the highest figure since 2009.  
1.14.   The delivery of social policies an d the strong process of sustained, dynamic growth in 
economic activity also enabled the country to reduce inequality and improve social indicators . It is 
clear from  the following chart  that compared to 2004 there is now greater fairness in the final 
distribution of household income, and poverty and extreme poverty  have fallen to historically low 
levels.  
1.15.   Traditionally Uruguay has analysed poverty and extreme poverty  through income, 
measuring whether a household 's per capita income is sufficient to cover minimum food and 
non-food needs. In recent years the poverty rate thus measured has fallen significantly . In 2006, 
32.5% of people were considered poor , in 2012 the figure was 12.4 % and in 2017 it had fallen to 
7.9%. In 2006, 2.5 % of Uruguayans were living in extreme poverty ; in 2012 the figure was 0.5 %, 
and in 2017 it was just 0.1 %. 
1.16.   As for  inequality, using the Gini coefficient where 1 represents the to tal concentration of 
wealth in a single individual and 0 represents uniform income distribution, Uruguay 's Gini 
coefficient was 0.455  in 2006, 0.384 in 2013, and 0.38 in 2017.  WT/TPR/G/374  • Uruguay  
- 6 - 
  Chart 1.3 Economic growth and social inclusion  
 
 
 
Source:  INE. 
1.2  Macroeconomic outlook 2018 -2022  
1.17.   Following weak growth in 2016, the global economy experienced an upswing in 2017 . Given 
this scenario, the projection for the coming years is for moderate growth, but not without risks . In 
an international trading environment that is already uncertain and financially more volatile  those 
risks – should they materialize  – could give rise to a more difficult trading environment for 
Uruguay and to difficulties in the consolidation of  economic growth processes in neighbouring 
countries.  
1.18.   Growth in developed economies will continue to be sluggish , largely because of the poor 
performance of the euro zone countries . For the United States the projection is for growth to 
accelerate in 2018 as  consumer confidence  picks up . The performance of the emerging and 
developing market economies will continue to be uneven  among countries . Despite the fact that 
the data on China in 2017 were better than originally forecast, the medium -term projection is f or 
the Chinese economy to continue on its rebalancing course towards lower growth rates, although 
those rates will still be high by international comparison . 
1.19.   The economies of Latin America and the Caribbean recovered in 2017 , although not as much 
as expect ed. The Argentine economy is expected to build on the growth that began in 2017 , while  
in Brazil growth rates in 2018 are expected to better than  in 2017.  
0.360.380.400.420.440.460.48
80100120140160180200220240260
1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016
GiniPVI Economic growth and income distribution
Economic growth (Physical Volume Index Base 86=100)
Concentration of wealth (Gini coefficient)
32.5
7.9
05101520253035
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017Poverty
Country total -% population
2.5
0.1
0123
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017Extreme poverty
Country total -% populationWT/TPR/G/374  • Uruguay  
- 7 - 
  1.20.   Taking into account  the changes that are expected to occur at  international  level and in the 
chief do mestic economic variables , and having regard to  the 2.7 % growth in the Uruguayan 
economy in 2017, our forecast is  that economic activity will further accelerate in 2018 , achieving 
the projected long -run trend rate  and maintain ing it in the medium term (3 %). 
1.21.   There are also important domestic challenges . First, the economic growth of the last 
two years was not spread across the board . Levels of activity fell in sectors such as commerce and 
repairs, construction, transport, and personal services, which probably also explains the drop in 
employment over that period since these  areas are among  the biggest employers . Nonetheless it is 
expect ed that future growth in activity will be more evenly spread , giving rise to conditions that 
are conducive to creating more employment.  
1.22.   Moreover, the fiscal accounts continue to be strained . The consolidated structural 
public -sector balance has shown impro vement over the last year but remains at  around -3.5% of 
GDP, while the recent upward trend in the public debt needs to be reversed . This places 
constraints  on the budget and calls for  extremely prudent handling of the fiscal accounts in order 
to attain th e fiscal balance target of -2.5% of GDP in 2019.  
1.23.   The fiscal balance target set by the Government  for the end of the period is designed to 
moderate the growth of public debt , with the ultimate objective of ensuring  the sustainability of 
the public finance s – one of the cornerstones of macroeconomic stability and any development 
strategy that is sustainable over time . Over the last ten years there have been plentiful examples 
at international level where sustained fiscal imbalances have drifted into unsustain able debt, 
leading to deep cuts in social spending and across -the-board tax rises with negative repercussions 
on employment, wages, pensions, and the quality of life of all citizens, especially the most 
vulnerable.  
1.3  Economic policy framework  
1.24.   Investment prom otion, p overty reduction and the elimination of extreme poverty  have been 
the core pillars of  the Government 's development strategy  to achieve inclusive, sustained 
economic growth . With that in mind the Government pursued stable, credible public policies that 
would develop conditions conducive to institutional, social and macroeconomic stability in order to 
facilitate business  decision -making and incentivize investment.  
1.25.   A number of ch allenges arose during the review period, including how to improve  the public 
finance s and maintain their sustainab ility, and how to incentivize  private investment.  
1.26.   In order to improve the consolidated public sector fiscal balance by almost 1 % of GDP and 
achieve the 2019 target of 2.5 % of GDP, the Budget and Accounting  Report  for 2015 proposed a 
comprehensive fiscal consolidation plan that was carefully designed to distribute the additional 
savings effort across the various stakeholders in society . This is r eflected in the balanced 
distribution of that effort between the public and private sectors and between personal and 
corporate income . Where income is concerned, the tax instruments selected were specifically 
geared to improving income distribution and pro gressivity  in the system so that those who could 
afford to do so paid more . This year a new Budget and Accounting  Report  will be underpinned by 
prudence and fiscal responsibility.  
1.27.   Thanks to proactive and efficient administration of the public debt during t he period under 
review the Government succeeded in  to return ing to liquidity, reducing  the debt/G DP ratio and 
improving  the profile and composition of the debt . Sound  debt management coupled with fiscal 
consolidation enabled Uruguay  rapidly to overcome the  effects of both the international crisis of 
2008-2009 and the regional crisis of recent years  and keep its investment -grade rating from the 
principal international ratings agencies.  
1.28.   Additionally, monetary and exchange rate policy will aim to stabilize pri ces in the economy 
in order to protect the lower income sectors and the economy as a whole from inflationary 
pressures.  
1.29.   At the social level, the policy applied during the period 2005 -2017, backed by a sharp 
increase in social spending, helped to extend and  strengthen social safety nets while reducing WT/TPR/G/374  • Uruguay  
- 8 - 
  poverty and extreme poverty , and increasing employment and household income . The 
Government 's current social policy priorities revolve around teaching, housing, public security and 
further strengthening the social safety net.  
1.30.   Education has a significant place in the country 's development project . The measures being 
taken in this area include  the expansion and improvement of infrastructure and equipment in  
educational establishments,  creation of new full -time schools and pre -school education 
establishments, computer literacy training, decentralization of educational services , including new 
universities and expansion of  technical courses , changes to the teaching profession and 
improvement s in real wages.  
1.31.   Where i nvestment incentives are concerned, measures were recently announced to improve 
the business climate and strengthen those aspects where economic performance has been flagging  
in the last two years, namely investment and employment, thus making the economy more 
dynamic . These measures go hand in hand with the implementation of a  new Regulatory Decree 
pursuant to the Law on the Protection and Promotion of Investment, No. 16.906 of 1998,  which  
aims to enhance  the benefits  granted to businesses  in order  to promote investment and 
employment.  
1.32.   The proposal s also include  a set of measures to improve access to these incentives  and 
lessen the cost of compliance with tax obligations  for smaller businesses.  
1.33.   With 29 investment agreements currently in force, Uruguay clear ly attaches considerable 
importance to foreign investment in its development strategy . The countries with which 
agreements have been concluded are : Armenia, Australia, Belgium and Luxembourg, Canada, 
Chile, China, the Czech  Republic, El  Salvador,  Finland, France, Germany, Hungary, Israel, Italy, 
Japan, Korea, Malaysia, Mexico, the Netherlands, Panama, Poland, Portugal, Romania, Spain, 
Sweden, Switzerland, the United  Kingdom, the United  States, the Bolivarian  Republic  of Venezuela 
and Viet  Nam.  
1.34.   One of the Government 's priorities during the review period was investment in public goods, 
in particular the repair and maintenance of the road infrastructure . This involves both public and 
private investment . The Ministry of Transport and Public Works is inv esting in exten ding the road 
network that was restored during the review period, and its plans  include  the repair and 
maintenance of the country 's main road corridors.  
1.35.   With a view to attracting private invest ment for these projects in 2011  the Law on 
Public-Private Partnership  (PPP) was enacted to provide a specific legislative framework for 
investment in public infrastructure using private funds . This promotion of public -private 
partnership  aims to channel extensive investment in to logistical, port and air port infrastructure in 
order to help establish the country as a regional logistics platform.  
1.36.   The Government considers the development of the country 's production  system  to be 
fundamental, and has therefore allocated resources to the implementation of progr ammes to 
strengthen the production base for goods and services, and innovation -intensive value chains.  
1.37.   Finally, in the area of international integration, the Government 's strategy is directed 
towards deepening integration through MERCOSUR while remaining o n the lookout for new 
markets that offer better access to international markets for Uruguayan products . This involves 
pursuing the negotiation of trade agreements with other countries  that are important to Uruguay 
in terms of trade, or strengthening the ag reements already concluded by Uruguay in the 
framework of the LAIA.  
1.38.   In an effort to overcome some of the major challenges facing the country, Uruguay will seek 
to improve its trade management by organizing high -level missions to promote trade and attract 
investment ; as part of the strategic association with the People 's Republic of China, it will seek to 
further deepen its trade links with that country and to finalize the trade agreement between 
MERCOSUR and the European Union . It will also seek to engage i n trade negotiations with other 
countries and to strengthen its relations with the emerging countries , while continuing to promote 
Uruguay as one of MERCOSUR 's entry and logistical services gateways . WT/TPR/G/374  • Uruguay  
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  2  TRADE ENVIRONMENT AN D TRADE POLICY  
2.1  Trends in foreign  trade and investment  
2.1.  Against an international backdrop of  low oil prices, cheaper agricultural commodities and 
political and economic tensions in various countries in the region, Uruguay 's economy continued to 
grow at a sustainable rate, although more slowl y than in the previous five -year period . Between 
2012 and 2017 the balance of trade in goods and services has trended upwards with changes 
becoming apparent from 2015 . That change can be observed in trade in goods but especially in 
services . 
Chart 2.1 Trade balance of Uruguay, 2012 -2017  
(US$ million ) 
 
Source:  Prepared by Uruguay  XXI based on BCU data.  
2.2.  Between 2012 and 2017 exports fell by an annual average of 1.8 % in dollar terms, while 
imports fell by 6.1 %. When analysed in real terms, external sales in fact rose by 2.0 % while 
imports did fall  but to a lesser extent  (2.1%). The degree of  trade openness declined  compared to 
the previous five -year period because the rise in exports did not offset the fall in imports in a 
context of rising GDP . Accordingly, external trade accounted for 45 % of Uruguay 's GDP in 2017 . 
Chart 2.2 Imports and exports of goods and services to/from Uruguay, 2017  
 
Source:  Prepared by Uruguay  XXI based on BCU data.  
-5282,512
-2,000-1,500-1,000-50005001,0001,5002,0002,5003,000
2012 2013 2014 2015 2016 2017
Goods Services Goods and servcies
68%32%
Goods Services71%29%Imports ExportsWT/TPR/G/374  • Uruguay  
- 10 - 
  2.3.  It is evident that a paradigm shift has occurred in Uruguayan exports as a result of a marked 
rise in the weight of sales of services, which in the last ten years have risen by an average 7 % in 
dollar terms . Exports of services grew by 15 % compared to 2016 and reached US$4,763  million in 
the last year.  
2.4.  The surplus in the balance of services was chiefly due to inbound tourism income , which 
accounted for some 50 % of Uruguay 's total exports, followed by transport services (10 %). There 
was also strong  growth in dollar terms in exports of services linked to telecommunications and 
computer equipment (10 % on average).  
2.5.  Transportation and travel accounted for the bulk of services imports at 27 % and 30 % 
respectively, reflecting the high cost o f international freight for Uruguayan importers.  
2.6.  In the goods market, exports were stimulated by foreign demand, especially for 
agro- industrial products, while the slowdown in imports was a response to the depreciation of the 
Uruguayan peso, among other f actors . In 2017, Uruguay bought US$8,607  million worth of goods, 
and sold US$9,908  million worth of goods.  
2.7.  Between 2012 and 2017 goods were exported to approximately 200  countries, among which 
China featured prominently , consolidat ing its place as Uruguay 's chief trading partner.  
Chart 2.3 Change in Uruguay 's export matrix  by destination, 2012 and 2017  
 
Source:  Prepared  by Uruguay  XXI based on data from the  National Directorate of Customs and Free Zones.  
2.8.  As no ted in the preceding chart, exports to China in 2017 were nearly double the figure for 
2012, whereas sales to MERCOSUR fell considerably.  
2017 2012
EU
15%China
28%China
16%
MERCOSUR
20%
EU
16%Other
29%
MERCOSUR
31%Other
33%
United States
3%United 
States
5%WT/TPR/G/374  • Uruguay  
- 11 - 
  Chart 2.4 Main export destinations, 2012 and 2017  
 
Source:  Drawn up by  Uruguay  XXI based on data from the National Directorate of Customs and Free Zones.  
2.9.  The United States ' market share in 2017 was higher than in 2012 ; the growth in exports in 
dollar terms to that country averaged 9.6 %. 
2.10.   Uruguay 's chief exports are products of agro -industrial origin, which account ed for 79 % of 
the total value of goods exported in 2017 . In that year, agro -industrial sales were around 
US$7,176  million, foremost among them being beef, wood pulp  and soya . That figure represented 
a 1.4% rise in dol lar terms compared to 2012 . Manufactures have fallen slightly as a proportion of 
external sales, from 22 % in 2012 to 20 % in 2017.  
Chart 2.5 Main export products , 2012 and 2017  
 
Source:  Prepared  by Uruguay  XXI based on data from the National Directorate of Customs and Free Zones.  
19%
17%
6%
5%
4%
4%
4%
4%Brazil
China
Argentina
Netherlands
Venezuela
Russian Federation
Germany
United States201228%
13%
6%
6%
6%
4%
3%
3%China
Brazil
Netherlands
United States
Argentina
Mexico
Italy
Turkey201728%
13%
6%
6%
6%
4%
3%
3%China
Brazil
Netherlands
United States
Argentina
Mexico
Italy
Turkey2017
15 15
8
6 6
5 5
3 3 3
05101520
Beef
Soya
Dairy products
Wood pulp
Rice
Beverage concentrates
Wheat
Plastics and articles of plastics
Leather and articles of leather
Autoparts17
15
13
7
5 5
4
3 3 3
05101520
Beef
Wood pulp
Soya
Dairy products
Rice
Beverage concentrates
Wood and articles of wood
Pharmaceuticals
Leather and articles of leather
Meat by-products2017 2012WT/TPR/G/374  • Uruguay  
- 12 - 
  2.11.   In contrast, manufactures account for a large share of imports  – over 60 % of the total in 
2017. They include imports of vehicles, clothing and footwear, and plastics . The share of total 
imports accounted for by oil and petroleum products  fell by over 50 %, from 25 % to 11 % in 2017, 
owing to a change in the demand structure that resulted in more efficient use of oil. 
2.12.   The markets of origin of imports have essentially remained  unchanged and relatively 
concentrated in the America s and China . The MERCOSUR countries are the main suppliers, 
although they have lost some ground and  in 2017  accounted for 34 % of Uruguay 's total imports 
compared to 41 % at the beginning of the period . This relative decline in imports from Argentina 
and Brazil is due to the increase in the importance of China as a supplier ; imports from that 
country accounted for 20 % of Uruguay 's total imports in 2017 . The European Union, with 16 % of 
total imports, and th e United States, with 11 %, are among Uruguay 's other major suppliers.  
2.13.   Betwe en 2012 and 2017 FDI slowed and  as a result its share in GDP dropped by 0.2 %; 
nonetheless, Uruguay continues to be among the countries in the region that receives the greatest 
propo rtion of FDI compared to the size of its economy . In 2016 the main sources of FDI were 
Argentina and Brazil, Europe, Panama and the United States . The main target sectors for 
investment are real estate, information and communications, and commerce.  
2.14.   FDI flo ws into Uruguay are expected to bounce back in 2018 and 2019, reflecting the 
renewed dynamism in public and private investment, especially in real estate in line with regional 
drives and the Finnish company UPM 's project for a second wood pulp plant.1 
Char t 2.6 FDI t rend in Uruguay  
 
Source:  Prepared  by Uruguay  XXI based on data from the BCU and UNCTAD.  
2.2  Trade policy and i ntegration  
2.15.   Twenty -first century globalization, a product of new information and communications 
technologies (ICTs), has led to the consolidation of "Global Value Chains " (GVCs) and the 
offshoring of tasks that until a few years ago were "non-tradable " internationally, such as 
non-traditional services . C urrently, external trade comprises a combination of 
goods/services/ideas2 that cross countries ' borders several time s before emerging as an end 
product . This shift  is obviously also linked to a n investment dynamic that is desi gned to generate 
these combinations of goods /services/ideas . The traditional dynamics involved in end -goods 
crossing the customs borders between the exporting and importing countries  are becoming a thing 
of the past . 
2.16.   In response to this new globalization , trade policy, that is to say, the system of instruments 
and measures that determine the external integration of an economy, has become broader and 
                                                
1 From Informe de IED 2017  [FDI Report 2017], Uruguay XXI.  
2 Baldwin (2016).  
0.0%1.0%2.0%3.0%4.0%5.0%6.0%
1970 1980 1990 2000 2010-2015FDI (% GDP) 1970 -20155.3% 
URUGUAY
LAmWT/TPR/G/374  • Uruguay  
- 13 - 
  more complex in recent years . Globalization and technological development are currently such that 
the countri es seeking to improve their international integration are not negotiating solely or chiefly 
on simple (tariff) preferences for goods because they would have a low impact on trade . Trade 
policy has shifted away from merely determining tariffs and support for sectors, towards the 
coordinated and consolidated construction of competitive, virtuous disciplines that sustain and 
promote the virtuous link between trade in goods/services/ideas and associated investment.  
2.17.   Trade  policy  prescripti ons are evidently subordinate to national economic development 
objectives and strategies . A fair and sustainable growth strategy calls for the creation of the right 
conditions for the expansion of productive investment, which in the case of an economy such as 
that of Uruguay, presupposes an export drive to achieve the scale that makes efficient and 
competitive production possible . In this respect, the priority objective in terms of external 
integration is, at the international level, improved market access for Uruguayan goods and 
services and, at the domestic level, the production of a range of exports that satisfy the nature 
and requirements of the foreign demand.  
2.18.   Consequently, Uruguay has set as a basic objective of its external nego tiations the 
achievement of stable and predictable access conditions to growing markets at all levels : regional, 
multilateral and bilateral . In this respect, the economic  and trade  dimension of the integration 
process is critical from the standpoint of its  growth strategy, and the various negotiations in 
progress are not mutually exclusive but complementary . Its external strategy seeks to achieve 
competitive integration into both the regional and world economies at the same time, by 
promoting the marketing both of products with static comparative advantages and of products with 
a greater technological content that exploit Uruguay 's dynamic comparative advantages . The idea 
is also to secure a competitive supply of affordable, efficient information technology and 
telecommunications goods, inputs and capital goods for domestic producers.  
2.19.   Uruguay is a founding member of MERCOSUR, and to a certain extent its specific trade 
policies are determined by those adopted by the bloc. Together with its partners, Uruguay ha s 
been doing its utmost to deepen and improve the customs union as a prerequisite to the creation 
of the common market provided for in the Treaty of Asunción.  
2.20.   The priority that Uruguay gives to the external market in its development strategy is linked 
to its conviction that the customs union should be coupled with open regionalism on as broad a 
scale as possible . Indeed, not only Uruguay itself, but MERCOSUR as a whole, has been reaching 
out to third parties either unilaterally  – with the consensus of the p artners  – or through the bloc 's 
negotiating structure.  
2.21.   The negotiations conducted in the framework of MERCOSUR during the review period 
notably produced the entry into force of the agreement with Egypt and the signature of the 
MERCOSUR -Colombia Agreement.  
2.22.   MERCOSUR 's external agenda is extensive, with ongoing negotiations at different stages 
with a number of countries or blocs . Foremost among these is the negotiation of the bi -regional 
association agreement for free trade with the European Union, to which Ur uguay attaches 
considerable importance . Also under negotiation is a trade agreement between MERCOSUR and the 
EFTA countries . Negotiati ons have recently begun for an inclusive, progressive f ree trade 
agreement ( under the name of  Comprehensive Trade  Agreemen t) between MERCOSUR and 
Canada . It is expected that during the current year negotiations  will also be opened with 
South  Korea and Singapore . MERCOSUR is undertaking exploratory work with a large number of 
strategic partners.  
2.23.   Over this period, Uruguay has focused on negotiating tax information exchange agreements  
and double taxation  agreements , on the ground s that they are vitally important for services , and 
may help to expand the country 's range of exports  and encourage  major transnational 
corporations to establish  their head offices  in Uruguay . 
2.24.   On the multilateral front, the Doha Round negotiations are of the utmost importance to 
Uruguay since they constitute one of the main mechanisms for promoting the country 's offensive 
trade interests in the agricultural area in pursuit of the gains to be made from commitments to WT/TPR/G/374  • Uruguay  
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  eliminate agricultural production  subsidies and aids, as well as  from the dismantling of technical 
barriers to market access.  
2.25.   One major multilateral achievement du ring the review period was the approval of measures 
at the Bali Ministerial Conference  in December  2013. The text of the Protocol on Trade Facilita tion 
for inclusion in the WTO Agreement was officially opened for acceptance on 27  November  2014. 
After two thirds of Members ratified and notified their acceptance to the WTO, the Agreement 
entered into force on 22  February  2017.  
2.26.   The Protocol seeks to sim plify, harmonize and modernize customs procedures and practices, 
reduce barriers, and improve the physical infrastructure and the information and communications 
technology in use . It was incorporated into Uruguay an law under Law 19,414  of 30 June 2016.  
2.27.   In compliance with the commitments entered into under Article  23 of the Bali Agreement, 
Uruguay has established an Interministerial Trade Facilitation Committee with responsibility for 
domestic coordination and implementation of the provisions of the Agreement . It was established 
under Decree  No. 252/15  of 23 September  2015, as amended by Decree  No. 156/2017 of 
12 June 2017.  
2.28.   At the same time, a new Protocol was concluded in 2010 by member countries of UNCTAD 's 
Global System of Trade Preferences among Developing Countries (GSTP) , which aims to promote 
trade between developing countries by the granting of tariff preferences on an extensive list of 
products . Uruguay is also a founding member of the Cairns Group, together with Argentina, 
Australia, Brazil, Canada , Chile, Colombia, Costa Rica, Guat emala, Indonesi a, Malaysia, 
New Zealand, Pakistan, Paraguay, Peru, the Philippines and South Africa . Alongside  the other 
members of MERCOSUR it is also a member of the agricultural G -20. 
2.3  Related policies  
2.29.   Trade in goods/services/ideas in the 21st century entails democratic development of ICTs, 
adjusting external trade regulations to fit the new situation and facilitating the incorporation of the 
new technologies into external trade processes . Accordingly , the Government 's initiatives on 
electronic government, the new Uruguayan customs code and the Single Window for Foreign Trade  
are described below . 
2.3.1   Electronic government  
2.30.   The Agency for the Development of e -Government and the Information and Knowledge 
Society  (AGESIC) report s to the Office of the President of the Republic and has independence in 
technical matters . AGESIC was established to lead the way on matters associated with digital 
government and the information and knowledge society in Uruguay . Its strategic objectives 
include : promoting wider public access to all ICTs ; promoting the acquisition of skills and 
knowledge in order to make best use of ICTs, achieve greater social integration and better prepare 
young people for the future ; using ICTs to simplify procedures an d processes and work on matters 
associated with e -Government ; drawing up and proposing IT policies, rules and standards for the 
State ; enforcing  the IT regulations in force ; and enhancing synergies between the State and 
businesses.  
2.31.   Over the past ten years Uruguay has implemented a strategy for digital transformation . In 
conjunction with AGESIC, the Government has established the principles that will underpin further 
progress in this area, namely a comprehensive regulatory framework to provide guidance and 
foundations for regulations governing the digital transformation ; a strong institutional system 
incorporating government bodies and organizations with roles that are defined as part of a 
cooperative framework ; and a technological infrastructure that can  handle  high demand while 
providing the security required to protect government al and private citizens ' data. 
2.32.   This framework has served as the umbrella for the development of e -Government strategies 
to introduce new on -line procedures and services , based on  a one -stop approach for all State 
bodies , thus standardiz ing processes and the quality of service provided to the public . Some 
examples of services affected are : electronic notifications and communications ; electronic filing ; WT/TPR/G/374  • Uruguay  
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  the integrated admin istrative  management system; competitive funds; the Maturity M odel; and 
the e-Government master plans.  
2.33.   Uruguay 's socio -demographic situation is similar to that of the developed countries but its 
economy is much smaller and less significant within a highly competiti ve global system . 
Accordingly , in order to maintain or increase economic growth while also improving the 
population 's well -being, it is vital for us to make intelligent use of the new technologies to improve 
the quality of education, government service s and production  development . In 2016 the 
Government of Uruguay approved the Uruguay Digital Agenda 20203 under the title "Equitable 
Transformation ", which propounds an inclusive, sustainable digital transformation for the country , 
making  intelligent use of technologies.  
2.34.   The Digital Government Plan 20204 is part of the Uruguay Digital Policy that coordinates, 
supports and incentivizes other government bodies ' digital plans . It contains the various objectives 
and priority initiatives that w ill enable the Uruguayan Government to make progress in digital 
transformation across  the board as we move forward . It aims to create public value through 
services that meet the needs, expectations and preferences of the public in an equitable, efficient, 
transparent and innovative manner.5 
2.35.   Telecommunication infrastructure coverage in Uruguay is extensive, making available 
increased fibre-optic connections for households and free I nternet plans to the public ; connection 
fees are the lowest in the region and  the speeds are the highest . Moreover, all children in the 
public  education syste m have their own computer with I nternet access that they share with their 
families ; the population has basic digital literacy skills and initiatives have been introduced in ot her 
areas such as 100 % traceability of individual cattle, progress in digital government, and the plan 
for national electronic medical records . These measures have had a significant effect in correcting 
disparities, closing access gaps between higher and l ower income groups, and democratizing 
services ; digital development has become one of Uruguay 's hallmarks, both within and beyond the 
country 's borders.  
2.36.   In order for Uruguay to become a State that puts forward innovative measures and makes 
good use of ICTs , a State where optimizing, consolidating and sharing are basic principles, the 
Government has developed a platform for interoperability and a high speed network (REDuy) for 
use by government authorities, laid down standards for good IT practice, created a  spatial data 
infrastructure for Uruguay (IDEuy), and consolidated IT and services in the State cloud.  
2.37.   Uruguay has the infrastructure and necessary enabling regulatory framework required for 
the public to feel secure and confident in the use of ICTs . To that end , AGESIC developed the 
National Centre for Responses to Information Technology Security Incidents (CERTuy), the 
national infrastructure for electronic identification and certification6, while also drafting laws on 
information security, privacy and pe rsonal data protection.7 
2.3.2   Customs reform  
2.38.   The reform of the National Customs Directorate (DNA) formed part of the strategy of 
interna tional integration and greater competitiveness in the production of goods. In the light of its  
foreign trade strategies , Uruguay had to implement a customs management system that would  
facilitate foreign trade  and was  aligned with  current  international trends in the areas of trade 
agreements, security, cargo risks, sanitary and environmental conditions  trends in , and trade  
logistics .  
                                                
3 Viewed at: https://www.agesic.gub.uy/innovaportal/file/6122/1/agenda -uruguay -digital ---enero -
final.pdf . 
4 Viewed at: https://www.agesic.gub.uy/innovaportal/file/6539/1/pla n_de_gobierno_digital.pdf . 
5 The priority initiatives may be viewed at: 
https://www.agesic.gub.uy/innovaportal/v/6670/1/ages ic/iniciativas -
pioritarias.html?padre=3712&idPadre=3712 . 
6 Viewed at: https://www.agesic.gub.uy/innovaportal/v/311/1/agesic/ley -n%C2%B0 -18600 -de-21-de-
setiembre -de-2009.html . 
7 Viewed at: https://www.agesic.gub.uy/innovaportal/v/46/1/agesic/proteccion -de-datos-
personales.html?padre=42&idPadre=42 . WT/TPR/G/374  • Uruguay  
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  2.39.   In 2010 work began on the strategic guide lines for customs modernization. They were as 
follows:  
 to improve processes and procedures;  
 to update the institutional and organizational framework;  
 to improve human and physical resources;  
 to improve infrastructure and equipment.  
2.40.   As part of this  first planning process , the DNA implemented a comprehensive results -based 
management system that drew on the most widely accepted conceptual developments , tailoring 
them closely to the reality of the Uruguayan customs and Uruguay itself.  
2.41.   The strategic initiatives that emerged from this plan targeted  the overall objectives , namely 
smarter controls and measures to facilitate the entry and exit of goods into and out of the country. 
Those initiatives included:  
 the digital Single Customs Document (DU);  
 the Single Window for Foreign Trade (VUCE);  
 the Authorized Economic O perator (AEO) programme;  
 the Integrated Customs Intelligence System (SIIA);  
 the electronic seal for secure transit;  
 the automat ion of  customs controls in port.  
2.42.   These projects have now been 100% implemented and the results have had a huge imp act 
on control and facilitation. The outcomes  include : 
 paperless customs - 99% of procedures are now digital;  
 according to World Bank estimates, the  use of the digital DU represents a saving of 
US$10  million  per year for Uruguay 's foreign trade;  
 the networking  of 15  government agencies involved in foreign trade processes  that are  
managed through  the VUCE platform  – 60 processes  are now  virtual  as a re sult; 
 48 businesses with AEO certification , which enjoy reduced inspection times, priority 
clearance, preferential lanes and personalized  attention . 
2.43.   The SIIA is a system of foreign trade data analysis that uses econometric models and allows 
us to conduct f ewer, better controls. The system establishes risk management rules that are then 
applied to foreign trade transactions and the results feed back into the system.  
2.44.   The electronic seal helped Uruguay to become the only country in the Americas regarded as  
having 100% control of its transit operations.  
2.45.   The New National Customs Code (CAROU) was adopted  as a way of bridging the institutional 
and organizational regulatory gap. The Code amends the country 's customs legislation to bring it 
into line with the Mercos ur Customs Code (CAM) and introduces provisions aimed at aligning  
customs regulations with current reality. The Code contains four elements that embody  the DNA’s 
trade facilitation approach:  WT/TPR/G/374  • Uruguay  
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   Binding Consultations: the Code provides for the opportunity to consult  the DNA on the 
application of customs legislation to a specific set of circumstances. The DNA is obliged 
to apply the outcome  of the consultation process;  
 AEO: the Code  provides for and formalizes the status of Authorized Economic Operator 
(CAROU , Article  40); 
 Logistics warehouses:  the Code  empowers  Customs to conduct goods inspections on 
warehouse premises. They become customs zones;  
 Free Zones: these form part of the customs territory ; the DNA may conduct selective 
controls.  
2.46.   Additionally, a new m ethodology has been developed for process management , resulting in 
the attainment of Quality Management System certification ISO  9001:2008 for the customs audit 
process used by the Inspection Division that pioneered its use. All offices are now following this 
process -based approach to management.  
2.47.   Through  the customs modernization process , the DNA has created  its own team of experts 
in best practice in smart controls, simplification of customs procedures and target -based 
management methodologies. It has posi tioned the Uruguayan DNA as a customs management 
modernization benchmark for the region and the world.  
2.3.3   New Uruguay an Customs Code (CAROU)  
2.48.   The Customs Code of the Eastern Republic of Uruguay – Law No.  19.276 of 
19 September  2014 (CAROU) – responded to the n eed to streamline rules spread across several 
legal instruments and to bring customs regulations into line with the new requirements  and 
procedures of international trade in the 21st century . The starting point was the MERCOSUR 
Customs Code (CAM), a set of  regulations that is aligned  with the most modern rules in the 
multilateral arena  as well as the instruments drafted by  other economic groupings,  such as the 
International Convention on the Simplification and Harmonizati on of Customs Procedures 
(Kyoto  Convention), the World Customs Organization 's Framework of Standards to Secure and 
Facilitate Global Trade (2005), the European Customs Code, and the Central American Customs 
Code. These instruments were the  template that forged the principles and guidelin es underpinning  
the CAROU.  
2.49.   Cutting -edge features  of international customs law consistent with  domestic objectives for 
the modernization of foreign trade management were thus incorporated into the domestic legal 
order . These include in particular:  the intro duction of the status of authorized economic operator ; 
the use of risk -analysis based selection mechanisms in customs control s; the preferential use of 
computerized systems and electronic data transmission for recording customs operations and for 
exchangin g information with individuals ; the recognition of certified digital signatures or secure 
electronic signatures ; and the incorporation of a system of binding prior consultation on the 
application of customs legislation in specific situations.  
2.50.   Among the specific provisions of the CAROU that illustrate the modernization process are 
those concerning the  scope and definition of customs  territory . They are in line with the 
Kyoto  Convention, which provides that national territory coincides  with customs  territory,  
superseding the previous concept which enshrined the existence of customs  exclaves and enclaves  
in law.  
2.51.   Similarly, the CAROU organizes the territory into three types of customs  zones : a primary 
zone, a secondary zone and special customs surveillance zones , thereby providing the National 
Directorate of Customs  (DNA)  with powers of control that match efficiency and trade facilitation  
requirements . 
2.52.   It also provides for  the category of authorized economic operator, a status whereby 
operators who  have been  approved and authorized enjoy  certain benefits such as simplified 
customs procedures based on their record of compliance with customs  requirements . This 
instrument was taken from the WCO Framework of Standards to Secure and Facilitate Global WT/TPR/G/374  • Uruguay  
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  Trade . Thus s pecial authorization may be granted to manufacturers, importers, exporters, brokers, 
carriers, intermediaries, port or airport administrators, integrated transport operators, warehouse 
operators and others who have an appropriate record of compliance with customs  requirements, a 
demonstrated commitment to supply chain security and a satisfactory system for managing their 
commercial records . The potential of AEO status is greater when there is mutual recognition by 
customs  authorities  because it  prompt s reciprocal benefits for operators in the countries 
concerned.  
2.53.   In terms of the documents required for the various customs procedures, the CAROU has 
introduced more relaxed criteria that can mould to the dynamics of international trade without the 
need to amend the law , and it empowers  the DNA to demand specific documents or other 
documents having equivalent effect . Priority is also given to the use of IT and electronic data 
transmission  systems ; when recording customs operations , declarations must be presented 
electronically, additional documents can also be submitted electronically and the preliminary 
opinion issued by the DNA is preferably delivered using IT systems . Any additional paperwork 
required must be limited only to that which is necessary to apply the customs legislation, thus 
consolidating the objective of  trade facilitation . 
2.54.   The Code  also includes the option of s implified customs clearance depending on  the 
declarant 's status, the characteristics of the goods or the circumstances of the operation.  
2.55.   On customs controls, the CAROU provides for smart, modern control techniques using 
risk-analysis based selection mechanisms that are applied using a random control system ; it also 
includes the option for the DNA to carry out  inspections of goods after rele ase. 
2.3.4   Single Window for Foreign Trade  
2.56.   The Single Window for Foreign Trade (VUCE) is a trade facilitation mechanism whereby 
information and documents are electronically optimized and combined at a single entry point  for 
the purpose of fulfilling all import, export and transit formalities.  
2.57.   The project was launched  in Uruguay in 2011 and entered into operation in 2013 , when the 
first electronic procedure was made available on the platform . The Law on the Budget and 
Accounting Report for 2013,  No. 19.149  of 11  November  2013, formally established the Single 
Window for Foreign Trade , operating  with technical autonomy within  the Institute for the 
Promotion of Investment and Exports ( Uruguay XXI), which was tasked with implementing it . 
2.58.   The project was designed not on ly with the target of establishing an electronic facilitation 
platform but also to play the role of coordinator for the various actors involved  and ther eby ensure 
cooperation and optimization in  business processes . Accordingly the VUCE has signed 
19 interinstitutional cooperation agreements with public and private stakeholders and has 
incorporated into the platform 18 of the 25 Uruguayan State Agencies involved in supervising  
foreign trade operations.  
2.59.   The VUCE 's work procedure provides a coopera tive approach that embeds 
three  cornerstones , namely a client -centred approach, cross -sectoral processes and ongoing 
improvement . Before each new procedure is introduced all stakeholders are called together to gain 
an understanding of the various customers ' needs and expectations of the process so that they can 
be squared with making foreign trade procedures more efficient by rationalizing, harmonizing and 
simplifying them.  
2.60.   From that starting point the platform and the project generally have been growing in term s 
of user numbers, procedures covered and services offered to the foreign trade community . In 
December  2017, there were 114  procedures available on the VUCE – equivalent to 71 % of all 
procedures available and 43 % of the volume of customs operations requiri ng documents.  
2.61.   The number of users has grown exponentially in recent years, testing not only the platform 
but also the service structure, including customer service staff and the call system . Many initiatives 
have been implemented (and are still under way) to monitor the service provided and improve 
quality in order to increase customer satisfaction . Currently there are more than 17,000  platform WT/TPR/G/374  • Uruguay  
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  users, chiefly in the following categories : customs  brokers, importers, exporters, individuals, and 
government off icials.  
2.62.   Another aspect illustrating the growth of the platform is the volume of procedures carried 
out by users on the VUCE . This indicator is monitored to determine which procedures are more 
popular and, therefore, prioritize improvement work . At December  2017, more than 
425,000  documents were issued through the platform : licences, permits, certificates and other  
documents used at later stage s of customs operations.  
2.63.   The incorporation of the procedures and the rise in the number of registered users 
generate d demand for user training . Accordingly the VUCE has trained over 5,300  users (public 
and private sector) and continues to improve its training programme and courses . The areas dealt 
with include not only how to use the system, but also aspects associated with trade facilitation, 
re-engineering processes, digitalizing procedures , electronic signature and other relevant areas of 
interest.  
2.64.   In addition to  its complexity, measuring the impact of an initiative like VUCE involved 
constructing a triple set of impa ct indicators : private sector impact, public sector impact and 
environmental impact.  
2.65.   Many  benefits have flowed from managing documents through the VUCE, some of which are 
easier to measure than others . Since its introduction the VUCE  has generated private sector 
savings of over US$6.5  million merely from the reduction in  journey s, man -hours involved in 
processing and unnecessary waiting . This is equivalent to savings averaging approximately US$22 
for each procedure conducted through t he VUCE and more than 400,000  man hours on low -value 
tasks.  
2.66.   A user satisfaction survey is conducted to evaluate the quality of the service provided by 
VUCE and its impact on operations . In the latest  survey (December  2017), 90 % of users identified 
improvem ents in processes that have been incorporated into VUCE ; 88% said the platform is good 
or very good, and 93 % described  the service provided by VUCE as good or very good . 
2.67.   Public -sector impact measurement began in 2016,  with the aim of looking at the number of 
hours it takes for an official to review a procedure . Although the number of hours that a procedure 
is pending at an agency is not the same as that spent by an official working on that procedure, it is 
a means of  identify ing not only public -sector effic iency improvements but also any reduction in 
private -sector waiting  time. Although this indicator cannot be used to measure the impact of 
incorporat ing a procedure into the VUCE , it does provide information on the impact of 
improvements following  upgrades to automated procedures . In 2016 the average response -time in 
VUCE procedures was 30.6 hours, falling to 24.5  hours in 2017 (20 % less) thanks to improvement 
initiatives worked on by the VUCE  in conjunction with the various agencies involved in the 
procedures available on the platform.  
2.68.   One impact of an initiative such as the VUCE is the reduction in the amount of paper used, 
which generates significant environmental benefits . The benefit is me asured by assessing the main 
inputs in the paper production process (trees, water and energy) . Since the platform became 
operational, the number of sheets of paper used in procedures has fallen by more than 14  million, 
which translates into  savings of more  than 1,700  trees and more than 4  million litres of water.  
2.69.   The VUCE initiative should be viewed as a process whose results go beyond its 
achievements in response to demand from the various stakeholders in the foreign trade 
community . It is important to not e that the approach taken is cooperative and coordinated, thus 
making it possible to construct a facilitation instrument that  matches  the expectations and needs 
of the various stakeholders involved.  
2.3.5   Micro, Small and Medium  Enterprises (MSMEs)  
2.70.   Under Law No.  16.201 Uruguay declared the promotion, development and modernization of 
micro, small and medium  enterprises to be  a matter of national interest in order to ensure their 
geographical decentralization, increase the productivity of their resources and genera te 
employment throughout the territory.  WT/TPR/G/374  • Uruguay  
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  2.71.   In Uruguay micro, small and medium  enterprises (MSMEs) are promoted  by the National 
Economic Development Agency (ANDE)  using effective, efficient and transparent programmes and 
instruments.  
2.72.   The goal is for  MSMEs to have various instruments available to them that are appropriate to  
the various stages and needs of the entrepreneurial process.  
2.73.   The ANDE has drawn up several programmes  to improve the productivity of MSMEs in the 
value chain and help to develop sectoral p roductivity by supporting improvements in the business 
environment, access to informati on and process quality. These include :  
 the Supplier Development Programme , to help develop competitive MSMEs by enhancing 
their involvement in national value chains;  and 
 the Public Goods Programme , which  support s projects for the  develop ment of  public 
goods in specific sectors in order to address market, coordination and/or information 
failures and thereby generate conditions conducive to greater productivity and sectoral 
competitiveness.  
2.74.   In addition, in order to narrow the gap for  businesses  in remote inland areas  the ANDE is 
working to establish  Centres for Entrepreneurial Competitiveness as s paces where MSMEs and 
entrepreneurs from a given region can access comprehensive support to help them  grow and 
develop.  
2.4  Uruguay and the WTO  
2.75.   Uruguay has made a strong commitment to multilateralism in general and to multilateralism 
in trade in particular . In fact, Uruguay was one of the first signatories of the San Francisco 
Charter, as well as a signatory to the Havana Charter, and joined the GATT at an early stage, in 
1953. Moreover, it has participated actively in all the negotiating rounds, occupying impo rtant 
posts on various committees.  
2.76.   Uruguay has defended , and will continue to defend, multilateralism as a way of upholding 
the rights of the less  developed nations within  the international system . It supports the view that 
trade liberalization is mutually  beneficial and contributes to the development and well -being of 
peoples . Thus, Uruguay has always strongly advocated the inclusion of agriculture in the 
multilateral negotiating agenda . In this connection, it should be recall ed that agricultural 
negotiati ons were in fact included in the agenda of the Round that bears the country 's name, the 
Uruguay Round, which concluded  with the adoption  of disciplines in this highly sensitive sector  for 
the first tim e. It also  included the creation of the Dispute Settlement Mechanism, of vital 
importance to all countries but particularly to the developing countries, to protect the rules of the 
multilateral trading system . It should be recalled that Uruguay is a founding member of the Cairns 
Group of agricultural ex porting countries , which played a decisive part in bringing the Uruguay 
Round to a conclusion.  
2.77.   Although the agreements concluded during the Uruguay Round  have been described as 
insufficient to effective ly open up world  agricultural trade, for Uruguay they constituted definite 
progress towards the goal of endowing agricultural trade with rules subject to worldwide 
acceptance and multilateral supervision . However, the work that remains to be done in this area is 
considerable, and Uruguay 's interests are very much at stake.  
2.78.   Uruguay 's historical commitment to the multilateral system, strengthened by its firm 
conviction that multilateralism is the best way to approach the agricultural negotiations on both 
access and government support, is reflected in its proacti ve participation in the efforts being made 
in the WTO to conclude the Doha Round or plurilateral agreements.  
2.79.   In an international context where the multilateral trading system is being challenged , 
Uruguay regards it as crucial to revitalize the role of the WTO in world trade and to conclude the 
Doha Round as soon as possible . This is vital for us all, and in particular for a country like Uruguay  
which , with its small domestic market, depends heavily on foreign trade for its growth and 
development.  WT/TPR/G/374  • Uruguay  
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  2.80.   The multil ateral environment is clearly the right place to address the new issues that the 
new century has brought to the table of  world trade, such as electronic commerce.  
3  CONCLUSIONS  
3.1.  Since its last review, Uruguay has continued to consolidate a series of economic reforms that 
have laid the foundations for economic development by tackling the country 's production , social, 
financial and fiscal vulnerabilities . These reforms stimulated economic growth and encouraged 
productive investment . The result has been growth in  production, employment and foreign trade, 
and a dec line in poverty and extreme poverty . For 15  years the country has been going through a 
phase of rapid and sustained growth accompanied by a significant decrease in poverty and an 
improvement in the distri bution of income that is historically un precedent ed. As explained in this 
report, the cornerstones of the Government 's policies in the review period were to maintain 
macroeconomic stability, and in foreign trade, to improve the regulatory framework, lay th e 
foundations for electronic government, the single window for foreign trade , and amend the 
legislative framework to promote private sector participation in the financing of the infrastructure 
works required to support development . Thanks to these reforms,  the country is better equipped 
to facilitate and promote foreign trade . The current priority is to undertake long -term reforms in 
education, housing and security . However, external integration remains a key aspect of Uruguay 's 
development strategy . The Government has not forgotten  the country 's international commitments 
either at the multilateral or at the bilateral or regional levels . Trade policy forms part of this effort 
to bring about improvements and to meet the aforementioned national objectives an d international 
commitments.  
3.2.  Uruguay remains committed to multilateralism . Promotion of free trade and respect for rules 
are essential in these times when questions are being asked about the rules of the international 
trading system . Since its inception this system has shown the benefits of rules -based trade, which 
explains Uruguay 's efforts at the World Trade Organization and particularly in connection with the 
current Doha Development Round . At the same time, it is endeavouring  to deepen its external 
agenda, by strengthening its commitment to open regionalism and seeking at every possible 
opportunity to use trade policy as a tool for the economic development and well -being of its 
people.  
3.3.  As regards the future direction of its trade policy, Uruguay will con tinue its process of 
integration in the world economy in accordance with the agreed rules, by further developing 
integration at multilateral, bi -regional and regional levels , as well as by  advancing rapidly  with 
preferential relationship agreements and on the domestic front in order to boost the efficiency and 
competitiveness of its production sectors and to facilitate trade.  
__________