Uruguay WT/TPR/S/263/Rev.1 
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  IV. TRADE POLICIES BY SECTOR 
(1) OVERVIEW  
1. The contribution of the agricultural sector (including forestry) to GDP fell during the period 
under review, from 11.3 per cent at the time of the pr evious review in 2004 to 8.2 per cent in 2010, in 
which year agriculture and the agro-industrial sector  accounted for some 13 per cent of GDP.  In spite 
of this decline in its relative sh are, the agricultural sector continues to play a fundamental role since, 
fisheries included, it employs 11.5 per cent of the active population.  The main agricultural products 
are:  bovine cattle;  oilseeds (soya);  milk;  forestry products;  and cereals (chiefly wheat and rice). 
2. Uruguay's agricultural strategy for the period 2011-2015 is aimed at enhancing agricultural 
and agro-industrial competitiveness and ensuring that  development is sustainable from the standpoint 
of social integration and envir onmental conservation.  Efforts ar e being made to create high-value 
niche markets, as distinct from th e traditional commodities markets. 
3. Averaging 9.6 per cent in 2010, tariff protection for agricultural products is slightly higher 
than for non-agricultural products.  Certain headi ngs, chiefly agro-industrial products such as food 
preparations, beverages and tobacco, enjoy greater tariff protection. 
4. In general, there are no taxes on exports of agri cultural products, since this type of tax is 
prohibited by Law No. 17.780 of 27 May 2004.  There is, however, an exception, for which the Law itself provides, for exports of raw hides, salted, pick led or wet-blue, which are subject to an export tax 
of 5 per cent. 
5. In 2010, the manufacturing sector accounted for some 13 per cent of GDP.  Its main 
component industries are:  food, beverages and tobacco ;  chemicals;  textiles, clothing and leather;  
paper and printing;  and metal products, machiner y and equipment.  Manufacturing sector policy is 
aimed at increasing national value added in the pr ocess of sustainable industrial production, while 
steadily improving production system efficiency and product quality. 
6. The services sector continues to be the leading sector in terms of its contribution to the 
Uruguayan economy, accounting for 57.7 per cent of GDP  (at current prices) in 2010 and 67 per cent 
of total employment.  Real estate and business services constitute the most important subsector, 
followed by trade, hotel and restaurant, and trans port, storage and communications services.  Private 
participation in the services sector has in creased considerably in recent years. 
7. The telecommunications market, especially th e mobile telephony and broadband segments, 
continued to grow during the review period, a ttracting major investments which have enabled 
Uruguay to achieve teledensity and Internet pe netration rates that are among the highest in 
Latin America.  Competitiveness within the sector va ries from one market segment to another.  While 
the State maintains a de jure  monopoly of fixed telephony within its territory through the National 
Telecommunications Authority (ANTEL), there are sev eral suppliers of international long-distance 
telephony and data transmission services.  Mobile telephony is open to competition.  Operators are 
free to set their own rates for telecommunications services, with the exception of those for national 
fixed-telephony communications, which are subject to government approval. 
8. During the review period, Uruguay's financial sect or continued to grow and strengthen.  The 
banks are well capitalized and have high le vels of liquidity.  The soundness of the 
Uruguayan financial system enabled it to weather the recent global financial crisis without too much 
difficulty.  During this period, the sector underwen t a series of reforms, including changes in the WT/TPR/S/263/Rev.1 Trade Policy Review 
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  management of the State banks and the restructuri ng of one of them, together with improvements in 
the regulation and prudential supervision of the banking system. 
9. The major legal reforms introduced in the fina ncial sector during the review period include 
the adoption of a new organizational framework for th e Central Bank of Uruguay (BCU) in 2008;  this 
changed the structure of the bank and created th e Financial Services Supervisory Authority (SSF) 
with responsibility for regulating a nd supervising the activities of all the financial sector institutions, 
including State banks.  The creation of the SSF is in tended to facilitate the s upervision of financial 
conglomerates.  In 2008, the provision limiting the num ber of authorizations to operate new banks 
was repealed.  To become established in Uruguay,  banks must be set up as Uruguayan public limited 
companies or as branches of foreign banks. 
10. Uruguay's insurance market consists of the pub licly owned State Insurance Bank (BSE) and 
15 private companies, mostly subsidiaries of forei gn companies, which operate in various branches of 
insurance.  Insurance companies must be established in Uruguay as pub lic limited companies.  There 
are no limits on foreign participation in new or exis ting companies.  Insurance policies involving risks 
on Uruguayan territory may only be taken out through companies established in Uruguay. 
11. Since November 2006, the Aviation Authority has been able to authorize foreign companies 
to supply domestic air services (cabotage), provided that the same rights are granted to Uruguayan companies on a basis of reciprocity.  To engage in any commercial aviation activity, including the establishment of an agency or repr esentative office for the sale of tickets, a concession 
or authorization is required.  There are no restric tions on domestic or foreign private participation in 
the provision of auxiliary services such as aircraft  maintenance and repair, which may be contracted 
abroad.  Airports in Uruguay belong to the State but the law allows them to be managed under a concession agreement. 
12. In the maritime transport sector, the law provi des for cabotage navigation and trade to be 
reserved for Uruguayan-registered vessels, although pr eferences based on the principle of reciprocity 
may be applied.  In mid-2011, Uruguay was a pplying cargo preferences only to bilateral passenger 
traffic with Argentina and cargo traffic with Brazil.  Port services are provided by private operators 
under concessions granted by the State, which owns the ports. 
13. As evidenced by the National Plan for Sustainable Tourism (2009-2020) and the policy of 
support for the sector, tourism is being treated as a priority.  In addition to the incentives provided 
under the Industrial Promotion Law and the Investme nt Law, the sector is granted special tax 
concessions. 
(2) A
GRICULTURE , LIVESTOCK AND FOOD PROCESSING (INCLUDING FORESTRY ) 
(i) Characteristics, objectives and institutional framework 
14. In 2010, agriculture's share of GDP (livestock and forestry included) was 8.2 per cent, below 
the 11.3 per cent recorded in the previous review in 2004;  agriculture and the agro-industrial sector 
accounted for some 13 per cent of GDP, while agricu lture, livestock and fisheries employed 11.5 per 
cent of the active population.  The main agricultura l products are:  bovine cattle;  oilseeds (soya);  
milk;  forestry products;  and cereals (chiefly wheat and rice). 
15. The Ministry of Livestock, Agriculture and Fi sheries (MGAP) is responsible for formulating 
and implementing policy in the agricultural sector .  Law No. 18.126 of 12 May 2007 created the 
National Agricultural Council, composed of re presentatives of the MGAP, the Director of the Uruguay WT/TPR/S/263/Rev.1 
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  Planning and Budget Office (OPP), three representativ es of the Board of Departmental Governors, the 
presidents of the Institute for the Agricultural Plan (IPA), the National Agricultural Research 
Institute (INIA), the National Grape-Growing an d Wine Production Institute (INAVI), the National 
Seed Institute (INASE) and the National Meat Ins titute (INAC), a representative of the National Land 
Settlement Institute, a representative of the Voca tional Technical Education Council (ANEP) and a 
representative of the University of the Republic, asso ciated with the agricultural faculty.  Moreover, 
the MGAP participates in the Production, Innovatio n and Biosafety Boards, together with the other 
Ministries involved and the OPP, as the centre for coordination in the design of public policies and linkage with the private sector. 
16. Various MGAP directorates are re sponsible for the different areas of agricultural policy.  The 
Directorate-General of Renewable Natural Resource s (RENARE) is responsible for promoting the use 
and rational management of rene wable natural resources with the aim of achieving the sustainable 
development of the agricultural sector and helping to  preserve biological diversity.  To this end, 
RENARE formulates national strategy on the use an d sustainable management of renewable natural 
resources.  RENARE is also responsible for verify ing compliance with the regulatory framework for 
activities related with the use and management of re newable natural resources, particularly soils, and 
certain technological inputs such as fertilizers and inoculants, and for formulating the rules on the 
traceability of certain technological inputs.  The Dir ectorate-General of Agricultural Services (DGSA) 
is the MGAP service that acts as the national orga nization for phytosanitary protection in Uruguay.  
The mission of the DGSA is to organize, develop a nd implement policies relating to plant health and 
quality, the quality and safety of plant foods, the qualit y and control of agricultural inputs, animal feed 
and plant products, and grain mark eting facilitation and management. 
17. The Directorate-General of Livestock Services (DGSG) is responsible for framing, managing 
and implementing animal health policies, as well as for ensuring the hygiene and health condition of 
food and products of animal origin.  The functio ns of the DGSG also include establishing the 
technical bases for formulating and updating th e legal and regulatory framework for activities 
associated with animal health, ve terinary public health, and the protection of food and products of 
animal origin, and maintaining the National Liv estock Information System.  The DGSG is also 
responsible for checking and certifying the hea lth and hygiene conditions under which animals, 
genetic material, products of anim al origin and inputs for use in animal health and production are 
imported and exported.  The Dir ectorate-General of Rural Develo pment (DGDR) has responsibility 
for leading the design and implementation of ag ricultural development policy measures, including 
differential policies for the fair and sustainable in clusion of family production in agriculture-based 
production chains. 
18. The Agricultural Planning and Policy Office (O PYPA) is responsible for giving ministry 
officials micro- and macroeconomic advice on the d esign of public policies aimed at the agricultural, 
agro-industrial and fishery sectors and on policies fo r the management, conservation and development 
of renewable natural resources.  Its responsibilities also include management tasks relating to the 
introduction of policies and the application of th e rules against unfair trading practices in the 
international context.  The International Affairs Unit is responsible for the political and technical 
management of international trade negotiations c oncerning agriculture-based production chains.  The 
Agricultural Economic Research Directorate (DIEA) is  charged with tasks relating to the generation 
of basic agricultural sector statistics.  The DIEA has also undertaken, as an additional objective, the 
planning and dissemination of the statistics compile d by various departments of the MGAP, with a 
view to combining efforts to achieve the inte gration of the Ministry's Information System. WT/TPR/S/263/Rev.1 Trade Policy Review 
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  19. There is also a number of non-government le gal persons under public law specializing in 
various sectors or branches of agricultural activity , such as the National Meat Institute (INAC), the 
National Land Settlement Institute (INC), the Nationa l Agricultural Research Institute (INIA), the 
National Milk Institute (INALE), the National Seed  Institute (INASE), the National Grape-Growing 
and Wine Production Institute (IN AVI), the Institute for the Agricultural Plan (IPA), and the 
Uruguayan Wool Secretariat (SUL), which cons titute the extended institutional framework for 
agriculture.  In this connection, it is particular ly worth mentioning the creation during the review 
period of two institutes, namely, the Fund for th e Financing and Sustainable Development of the 
Dairy Sector (FFDSAL), established by Law No. 18.100 of 7 March 2007, and the National Milk 
Institute (INALE), established by Law No. 18.242 of 27 December 2007, which advises the Executive 
on dairy policy.1 
20. There are also sectoral commissions or other interministerial bodies, such as the Sectoral 
Commission for Rice, set up by Decree No. 1.094/73 in 1973, as amended by Decree No. 96/85 of 1 March 1985.  Through the Pl anning and Budget Office, the commission advises the Executive on 
everything relating to production, supply, processi ng, marketing, export, land tenure, irrigation, 
reservoirs and other matters concerning rice.
2 
21. Government policies on agriculture for the period 2011-2015 are included in the Policy 
Guidelines of the Institutional Framework for Agricu lture prepared by the MGAP.  In general, the 
MGAP's strategy is aimed at improving agricultura l and agro-industrial competitiveness by achieving 
development that is sustainable from the stand point of social integration and environmental 
conservation.  In its approach the MGAP is seeki ng not only to increase th e static competitiveness of 
primary production but also to create high-value niche markets, distinct from the traditional commodities markets.  The strategy involves the steady technological improvement of primary activities and the gradual enhancement of the export profile by means of c ontinuous innovations in 
products, processes and activities.  Another of the MGAP's strategic objectives is the development of 
contingency plans, plans for adapting to and mitiga ting climate change, and plans for the development 
of new technological capabilities.  To achieve the d esired results the strategy seeks to build up the 
MGAP's capacities and operational infrastructure an d to improve coordination and complementarity 
between the bodies that constitute the institutional fr amework for agriculture.  Efforts are also being 
made to introduce practices that ensure sustaina bility in land use and management in the production 
chains, as well as to improve productive water ma nagement and increase the agricultural area under 
irrigation. 
22. Another important aspect of policy during the re view period has been to seek to achieve 
decentralization in the design and implementation of  agricultural policies, within a general global 
context, through, for example, Law No. 18.1 26 of 22 May 2007 on the Decentralization and 
Coordination of Department-Based Agricultural Policies. 
23. At international level, Uruguay has continued seeking to diversify its products and markets 
and to improve access to its traditional export mark ets with a view to expanding its trade flows. 
                                                      
1 INALE is administered by an Ex ecutive Council composed of a repr esentative of the Executive, who 
acts as chairman;  one representativ e from each of the following minist ries:  the MGAP, the MIEM, the MEF 
and the MRREE;  two representatives of the trade associations of the milk-shipping producers belonging to 
two different associations with a natio nal reach;  two representatives of th e dairy industry trade associations;  
and one representative of the sma ll-scale producer associations. 
2 The Sectoral Commission for Rice is composed of  the MGAP, the MIEM, the MTOP, the MEF, the 
MVOTMA, the MRREE, the BROU, the OPP, which takes the chair, one representative of the Rice Growers' 
Association, one representative of the Rice Mill Trade As sociation and one delegate from the labour sector. Uruguay WT/TPR/S/263/Rev.1 
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  (ii) Policy instruments 
(a) Border measures 
24. If agro-industry is excluded and the ISIC definiti on of agriculture (livestock included) is used, 
then in 2011 the average MF N tariff for the agricultural sector amounted to 6.8 per cent 
(ISIC chapter 111).  In the same year, tariff protection for agricultural products under the WTO 
definition was 9.6 per cent.  Protection was higher th an average for dairy products (18.2 per cent);  
beverages and spirits (17.1 per cent);  food preparati ons (14.8 per cent);  coffee, tea, cocoa, and sugar 
(13.7 per cent);  tobacco (11.7 per cent);  and fru it and vegetables (10.3 per cent).  Protection was 
lower than average for cut flowers and plants (5.3 pe r cent);  cereals (6.6 per cent);  and oilseeds, fats 
and oils and their products (8.3 per cent).  Tariff quotas are not used.  Licences are needed to import 
oils, acetic acid and sugar. 
25. Taxes on exports are prohibited by Law No. 17.780 of 27 May 2004, with the exception of 
exports of raw hides, salted, pickled and wet-bl ue (HS heading 41.01 and HS subheadings 4104.11 
and 4104.19), which are subject to an export tax of  5 per cent.  This exception is governed by 
Decree No. 639/006 of 27 December 2006 and the 5 per cent rate in force was established by 
Decree No. 456/984.  Between February 2004 and July 2008, exports of rice, whatever the degree of 
processing, and products derived there from were subject to a tax of 5 per cent on their f.o.b. value, in 
accordance with the provisions of Law No. 17.6 33 of 11 July 2003 and Decrees No. 392/003 of 
26 September 2003 and No. 64/006 of 3 March 2006. 
26. Exports of meat of bovine species, sheep, pigs , horses, poultry and small game, in any form 
other than preserved, are subject to the Sanitary Insp ection Fund (FIS) tax, which is applied at the rate 
of 1 per cent of the f.o.b. value of the exports.  Th e contribution to the FIS is also levied on domestic 
sales of locally produced beef and sheep meat fo r household consumption and locally produced beef, 
veal and pig meat for industrial use. 
27. Exports of certain agricultural products are s ubject to taxes or levies collected to finance 
bodies such as SUL, INAC and INIA.  In the case of the SUL, the rate applied varies between 
0.30 per cent and 3 per cent of the f.o.b. value of wo ol exports and depends on the content in terms of 
greasy wool, in the different stages of processing.3  The INAC is financed by a charge levied at the 
rate of 0.6 per cent of the net f.o.b. price of exports  of meat of bovine species , sheep, pigs, poultry and 
horses, their offal and by-products, and products b ased on the meat and by-products.  For financing 
the INIA a tax of 4 per mil is imposed on exports, in the natural state and unprocessed, of vegetable, 
fruit and citrus-growing products and of flowers and seeds. 
28. Uruguay has made commitments relating to its  export subsidies for certain agricultural 
products, namely, rice;  butter;  and oilseed cake.  Uruguay has notified the WTO Committee on Agriculture, in various communications, that in the calendar years 1995-2010 no export subsidies 
were granted for these products. 
                                                      
3 Up until September 2011 the SUL tax rate was 1.6 per cent of the greasy wool component.  Greasy 
wool exports were taxed directly at this rate, while export s of tops and scoured wool had to be converted into the 
equivalent volume of greasy wool, to which a notional pr ice was applied depending on the type of wool (fleece, 
bellies, lamb).  On 1 September 2011 the rate applicab le to the greasy wool component rose to 2.5 per cent. WT/TPR/S/263/Rev.1 Trade Policy Review 
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  (b) Internal measures 
29. Agricultural income is subject to the ta x on income from economic activities (IRAE), 
established by Law No. 18.083 of 27 December 2006 and Decree No. 150/007 of 26 April 2007.  Only income from Uruguayan sources is taxed, at a rate of 25 per cent.  The IRAE has replaced the 
tax on agricultural income (IRA), which was levied at  a rate of 30 per cent on the net fiscal revenue 
for the financial year. 
30. Agricultural products are also subject to the tax on the sale of agricultural goods (IMEBA), 
which has a maximum rate that ranges, depending on the product, from 1.5 to 2.5 per cent and is 
applied to the first sale made by the producer to IRAE taxpayers of various goods such as wool and 
hides, live cattle, grain, milk, poultry-farming, beekeeping and rabbit-breeding products, flowers and 
seeds, fruit and green-leafed vegetables, citrus pr oducts, and products de rived from frog breeding, 
snail breeding, rhea breeding, otter breeding and the like.  The IMEBA is also levied on goods exported by producers and manufactured or allocated for own use by IRAE taxpayers.  The maximum rates are:  2.5 per cent for wool, hides, and bovine cattle and sheep;  2 per cent for cereals and 
oilseeds, milk and citrus products;  and 1.5 per ce nt for the other goods subject to the IMEBA.  
Payment of the IMEBA may be regarded as a definitiv e tax in place of the IRAE or as an advance on 
the IRAE.
4 
31. Sales of wool, hides, live cattle, cereals a nd oilseeds, poultry-farming and beekeeping 
products, milk, and forestry produc ts and exports of vegetable, fru it and citrus products, flowers and 
seeds in their natural state and unprocessed are subjec t to an additional 0.4 per cent tax introduced by 
Law No. 16.736 of 5 January 1996, the proceeds of which go towards financing the INIA.  Moreover, 
another additional tax of 0.2 per cent is imposed on sales of wool and hides, bovine cattle and sheep, 
and cereals and oilseeds, for the benefit of th e Honorary Commission for the Eradication of 
Insalubrious Rural Housing. 
32. Agricultural products in their natural state ar e also subject to a suspended VAT regime 
(zero-rated), which makes it possible to recover the VAT on purchases that forms part of the direct or 
indirect cost of the products marketed (for IR AE taxpayers in the agricultural sector.) If the 
agricultural product is processed or changes state, it becomes subject to tax at the basic rate (22 per 
cent).  An exception is the regime for fruit, vege tables and flowers, where the agricultural producer 
invoices at the basic rate of 22 per cent, receiving a tax credit and being allowed to deduct the tax 
from his purchases.  Imports of these products are taxed at the same rate.  However, the goods are 
taxed at the minimum rate of 10 per cent in the fina l stage, that is, when sold to the end consumer.  
Agro-industrial products taxed at 10 per cent include meat , flour, rice, oil, sugar, mate, and edible fats, 
as articles that form part of the standard basket. 
33. Some agro-industrial products (a lcoholic beverages, fruit juices, cigarettes and tobacco, malt) 
are subject to the Specific Internal Tax (IMES I), levied on a minimum specific base with a 
supplement if the actual selling price is higher than the specific base.  In so me cases, as for alcoholic 
beverages and cigarettes, the rates may be  high (48 and 70 per cent, respectively). 
34. Under Law No. 18.100 of 9 February 2007, th e Fund for the Financing and Sustainable 
Development of the Dairy Industry (FFDSAL) wa s established, as a non-government legal person 
under public law, with the following objectives:  to finance the dairy activities of producers in order to 
                                                      
4 The option to pay the IMEBA in place of the IRAE is  available only to taxpayers with incomes of not 
more than 2 million indexed units (UI) who are not joint stock companies and do not farm more than 
1,250 hectares. Uruguay WT/TPR/S/263/Rev.1 
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  increase dairy production;  to expand the dairy sector  and diversify the produc tion of dairy products;  
to increase employment in the sector;  and to settle family groups in the countryside.  A fund of up to US$1 million was also established to finance small m ilk producers and, in particular, investments in 
the management of effluents and the prevention of contamination of water sources on holdings 
occupied by these producers, as well as for paying off debts incurred in achieving the 
above-mentioned objectives. 
35. The FFDSAL is a financial trust without own funds.  Under the law, for the purposes of 
financing the FFDSAL, a tax is levied on the first sa le, for any reason, of a litre of liquid milk by a 
producer to a legally authorized commercial milk ma rketing enterprise or any third party, on imports 
of milk and dairy products in all forms, and on exports of milk of any kind effected directly by the 
producer.  Moreover, the allocation to own use for manufacturing or sale of self-produced liquid milk by IRAE taxpayers will also be taxed, except in t hose cases in which the milk is allocated to own use 
for manufacturing by a small-scale producer.  The le vy is calculated on the basis of the deduction 
mentioned in Law No. 17.582 of 2 November 2002 (Ur$0.85 per litre), as adjusted every six months by the Executive, in accordance with  the variation in the dollar exchange rate.  The amount cannot 
exceed 3.5 per cent of the average producer price for milk published by the OPYPA.  The Fund is 
managed, administered and represented by an Ho norary Administrative Commission composed of 
one representative of the MGAP, who acts as chairman, one representative of the MIEM, 
one representative of the MEF, one representa tive proposed by the dairy industry, and 
two representatives proposed by the milk producers. 
36. The promulgation of Law No. 17.663 of 11 July 2003 led to the establishment of the Fund for 
the Financing and Restructuring of the Rice Sect or (FFRAA), as implemented by Decree No. 392/003 
of 26 September 2003.  The main objective of this  law was to reduce the sector's indebtedness and 
finance production.  In 2006, a second exceptional phase was introduced with the establishment of 
FFRAA II, implemented by Decree No. 64/006 of 3 Ma rch 2006.  Within both these funds repayment 
was effected by retaining 5 per cent of the f.o.b. value of exports of rice, whatever the degree of 
processing, and rice products.  In November 2007, the payment of FFRAA I was definitively 
abolished, and FFRAA II immediately began to be written down, in a process that ended completely 
in July 2008. 
37. Uruguayan legislation allows for VAT to be refunded if the products  imported are intended 
for the production of agricultural machinery and accessories and/or for agricultural and raw materials 
production, in those cases in which the domestic pr oducts are also exempt from VAT.  Agricultural 
machinery is eligible for the temporary admissi on procedure established by Decree No. 232/991 of 
2 May 1991.  Some agricultural inputs are exempt from tariffs.  The agricultural sector can also 
benefit from the regime for the refunding of indir ect taxes and export duties and from the free zone 
regime (see Chapter III(3)(iv)). 
38. During the review period, Uruguay notified the WTO that domestic support was being 
provided for research, extension and advisory servi ces, pest and disease control, inspection services, 
marketing and promotion services, and payments  within the framework of environmental 
programmes, which are deemed to be "green box" measu res.  It also notified subsidies for investment 
in agriculture, which in 2010 amounted to US$3,914,955, including disbursements under the Rural Uruguay Project.  Uruguay notified the WTO th at, in 2005-2010, its aggregate measurement of 
support for the agricultural sector was below the de minimis  level.  This support consisted of 
exemption of agricultural inputs from the unified customs charge (TGA), not related to specific 
products, and accounted for 0.71 per cent of th e value of agricultural production in 2009 and 
0.42 per cent in 2010. WT/TPR/S/263/Rev.1 Trade Policy Review 
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  39. The Farm Conversion and Development Progr amme (PREDEG), which used to provide 
support for deciduous fruit trees and citrus trees a nd for grape-growing and wine production, ceased 
operating in 2006.  Under the Livestock Project, subs idies are granted in accordance with efficiency 
objectives for vertical integration and for business plans aimed at opening up new markets abroad.  
However, this support is limited and in 2009 amount ed to US$399,678.  Under Law No. 17.379 of 
26 July 2001, a Fund for the Conversion of the Su gar Sector was established, but since late 2005 
financial assistance from the Fund has been provided in  the form of loans which beneficiaries must 
repay at the next harvest. 
40. Law No. 17.503 of 30 May 2002 established the Farm Reconstruction and Promotion 
Fund (FRFG), with the following objectives:  (i) to deal with the losses in infrastructure and working 
capital suffered by producers affected by the tornado of  10 March 2002;  (ii) to promote agricultural 
insurance in the farming subsector, and (iii) to support programmes for the promotion of horizontal 
and vertical integration of the agro-industrial ch ain for fruit and vegetables.  The Fund has been 
financed by applying VAT to fruit, vegetables and flowers under the conditions laid down in Law No. 17.503, it being specified that this fina ncing would be maintained until 1 July 2005.  
Law No. 17.844 of 21 October 2004 extended the tim e-limit for the application of VAT to the 
marketing of fruit, flowers and vegetables until 1 July  2015, and stipulated that the revenue collected 
would serve as a source of financing for the FRFG, while maintaining the principal objectives set out 
for the FRFG in Law No. 17.503 and adding a new one,  namely, to settle or pay off the debts owed by 
farmers to the Bank of the Eastern Republic of Ur uguay (BROU) and incurred prior to 30 June 2002. 
41. There is no State marketing organization for ag ricultural products in Uruguay.  Moreover, 
there are no pricing measures in use, apart from the administrative pricing of pasteurized milk for 
direct consumption, under Decree No. 273/010, and some traditional varieties of grapes for making 
wine which have not yet been "converted". 
42. There is no credit policy aimed especially at the agricultural sector;  agriculture relies for its 
financing on the financial system, which offe rs certain programmes designed mainly for the 
sector (see below).  Uruguay has notified the WTO that  during the review period, where agriculture is 
concerned, no subsidized interest rates were applied. 
43. The BROU offers certain credit programmes designed especially for agriculture.  The 
Seasonal Capital Credit Programme is aimed at financing agricultural operators' working 
requirements such as the hiring of labour, the payment of fees, freight charges and shearing costs, the 
purchase of inputs, etc., without a particular use being specified.  The loans, for up to one year, are 
fixed-term or amortizing, in accordance with the generation of income.  The Agrocredit  programme is 
intended to address the financial and investment re quirements of category 1 agricultural customers.  
It provides a revolving line of credit that ope rates as a current account.  Disbursements can be 
transferred to other short, medium and long-term products, automatically triggering the availability of 
the product.  Interest is paid quarterly.  The Marketing Advances  mechanism  consists of a loan that 
makes it possible to access financial resources and c hoose the best time to market the agricultural 
products.  It is a fixed-term loan with maturities that depend on the products to be financed.  The 
farmer must provide security in the form of part or all of his production or a warrant  for the product 
stored.  The Animal Feed Programme  provides credit for planning fodder requirements.  The loans are 
for a fixed term, of up to one year, and the paymen ts are harmonized with the generation of income.  
The Credit Programme for Animal Fattening and Finishing  finances the purchase of animals for 
fattening and/or finishing, whatever the species involved.  Financing is provided for up to 100 per 
cent of the hammer price at auctions or markets administered by the BROU or the price in direct Uruguay WT/TPR/S/263/Rev.1 
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  transactions between producers, for bovine cattle, shee p and pigs, and for up to 50 per cent in the case 
of other species. 
44. Loans granted by the BROU are fixed-term or amortizing;  payments are adapted to the 
generation of income by the enterprise and made  over a period of up to 18 months depending on the 
species to be financed and the marketing period.  The authorities have indicated that, at present, the 
criterion used by the BROU for setting rates is not by product/end use but by customer.  Therefore, to the market financial rate in effect on the date on which the rate is determined there are added 
premiums established according to the customer's risk  category and the agreed term of the loan.  For 
example, for loans in dollars (98 per cent of loans) the current financial rate is 4.5 per cent, to which 
are added the risk premium (between 0 and 1.75 per cent according to the type of customer) and the 
term premium (between 0 for terms of less than six months and 1.5 per cent for a ten-year term). 
45. Uruguayan farmers and livestock breeders can obtain insurance from the BSE or private 
insurers.  The coverage of this insurance, offere d on market terms, varies according to the type of 
product and the type of risk. 
(iii) Forestry 
46. Forestry, logging and related activities are gr owth industries in Uruguay.  Although the 
production of wood in the rough acc ounted for only 0.7 per cent of GDP in 2010, manufacturing of 
wood and wood products, paper and paper products, and printed matte r accounted for 2.7 per cent. 
47. The institutional framework of the forestry sect or was established by the Forestry Law (Law 
No. 15.939 of 28 December 1987), which stipulates that forestry policy is to be drawn up and 
implemented by the MGAP and its executive arm, the Directorate-General of Forestry.  The latter is 
responsible for forestry promotion and development.  The main policy objectives are sustainable forest management through protection, the enhancem ent, expansion and creation of forest resources, 
and the development of forest industri es and the forest economy in general. 
48. Under the Forestry Law, forests classified as being for conservation or commercial purposes 
are eligible for national and departmental tax exemp tions.  In the case of commercial forests, to obtain 
exemption from departmental tax (rural property tax)  it is also necessary to satisfy the condition of 
being accompanied by a project for the producti on of quality timber, in accordance with the 
provisions of Law No. 18.245 of 19 December 2007.   The income derived from exploiting forests 
characterized as being for conservation or commerc ial purposes is also exempt from the IRAE (see 
Chapter III(4)(iii)).  This concession does not apply to  commercial forests plante d after the entry into 
force of Law No. 18.083 of 18 January 2007, ex cept for forests included in the above-mentioned 
quality timber projects.  Subsidies for forest pl antations were abolished by Law No. 17.905 of 
15 September 2005. 
49. The forestry sector can obtain financing fro m the BROU for planting commercial forests, 
although in recent years there has been no demand for such credit.  The loans apply to investment 
plans for less than 300 hectares per year and per custom er.  The term is ten years, with an eight-year 
grace period for the capital.  Interest must be pa id semi-annually and the loans are in US dollars. 
(iv) Fisheries 
50. Traditionally, the development of the Uruguayan fishing industry was ba sed on hake, sea bass 
and whiting, caught by trawlers that transported th eir catch fresh.  Over tim e, the sector has become 
more dynamic and, at present, more than 50 species  are caught.  Exports of fishery products totalled WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 136 
  
  US$180.5 million in 2009, accounting fo r 3.5 per cent of total exports.  The main destinations were 
Brazil, Nigeria, Italy and China. 
51. The land-based fishing industry c onsists of 18 export plants w ith an installed capacity of 
170,000 tonnes of frozen product per year and direc tly employs some 3,000 people.  This industry 
uses the catch of the Uruguayan fleet and of third country-registered vessels operating from the port 
of Montevideo.  There is also a national fleet of 29 factory and freezer ships, some of which operate in 
international waters.  This provid es employment for some 850 people.5 
52. The National Directorate of Aquatic Resources (DINARA) is the State agency responsible for 
regulating and controlling fishing in Uruguay.  As such, it is the fishing industry's sole competent 
sanitary authority at national level.  The DINARA reports to the MGAP and defines and implements 
the Uruguayan government's fisheries policy.  It is also responsible for regulating and promoting the 
sustainable use of fisheries and aquaculture resources. 
53. The legal framework governing the activity and tasks of the DINARA is mainly based on 
Law No. 13.833 of 29 December 1969 (Fisheries) and its regulations and on Decree Law No. 14.484 
of 18 December 1975 and its regulations.  Law No. 13.833 determines the fishing area and the fishing 
permit regime and contains clauses relating to  processing and marketing activities derived from 
fishing.  Decree-Law No. 14.484 lays down the responsibilities of the National Fishing Institute (present DINARA).  On the basis of these laws, various regulatory provisions have been 
adopted and, with the passage of time, updated. 
54. Under Decree No. 149/997 of 7 May 1997, to engage  in fishing or aquatic hunting, whether as 
a natural or as a legal person, public or private,  it is necessary to hold a government permit, which can 
only be obtained subject to authorization of the corresponding project by DINARA.  Commercial 
fishing and aquatic hunting permits are temporary and valid for two years when they relate to vessels 
of more than ten GRT and for four years where vessels of smaller tonnage or shore fishermen are 
concerned.  The permits can be renewed for identi cal periods.  The transfer of fishing and aquatic 
hunting permits must be authorized by the government, subject to a report by DINARA. 
55. Law No. 18.498 of 12 June 2009 stipulates that 90 per cent of the crew of 
Uruguayan-registered fishing vessels, including the cap tain, the chief engineer and the radio operator, 
must be of Uruguayan nationality.  This percentage may be reduced to 70 per cent in the case of Uruguayan-registered fishing vessels that carry out fishing operations exclusively in international waters.  It is also possible to depart from these pe rcentages in the case of new exploratory fisheries, 
subject to DINARA's approval. 
(3) M
ANUFACTURING  
(i) Special features and policy objectives 
56. The manufacturing sector's share of GDP (including the processing of foods and 
hydrocarbons) declined, in current terms, from 14.8 per cent in 2005 to 13.1 per cent in 2010, mainly 
due to the relatively more rapid growth of service s in nominal terms.  However, in real terms 
(at constant 2005 prices), the manufacturing sector's share of GDP was the same in 2010 as it was in 
2005, namely, 14.8 per cent.  This reflects the more  moderate increase in th e price of manufactures 
relative to those of services, partly as a positive resu lt of the growing importance of foreign trade.  
                                                      
5 Online information from DINARA.  Viewed at:  http://www.dinara.gub.uy/web_dinara/index.php? 
option=com_content&view=article&id=65&Itemid=86. Uruguay WT/TPR/S/263/Rev.1 
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  The percentage of the labour force employed in 2010 was 14.0 per cent, equal to that recorded in the 
previous review in 2004. 
57. The principal industries that make up the Uruguayan manufacturing sector are:  food, 
beverages and tobacco;  chemical industries;  textile s, clothing and leather;  paper and printing;  and 
metal products, machinery and equipment.  Ur uguay's exports of manufactures are mainly 
concentrated in five industries:  meat products ;  leather tanning and dressing;  textile spinning, 
weaving and finishing;  bakery produc ts;  and dairy products (Table AIV.1). 
58. Sector policy is aimed at achieving an increase in national value added within a context of 
sustainable industrial production, with a view to steadily improving production efficiency and product 
quality.  The MIEM is the department responsible  for formulating and implementing policy in the 
manufacturing sector.  The MIEM's National Directorat e of Industry (DNI), in particular, is tasked 
with advising the Executive on the formulation of i ndustrial policy and its implementation.  The DNI 
is responsible for proposing policies for indust rial development and restructuring and improving 
competitiveness, within the framework  of the macroeconomic policies defined by the Executive.  The 
DNI also has the task of analysing and monitoring  the aspects of the industrial situation, both 
Uruguayan and international, of relevance to polic y design.  Moreover, it acts as coordinator between 
the public sector and labour and business circles, with a view to incorporating their points of view.  In 
addition, the DNI is charged with promoting measures to enhance competitiveness and quality and 
with administering the regulati ons on unfair trading practices. 
(ii) Policy instruments 
59. In 2010, applied MFN tariffs gave an average level of protection of 9.6 per cent in the 
manufacturing sector (ISIC 3 excluding 31 (food pro cessing)), with tariffs ranging from 0 to 23 per 
cent.  If the WTO definition of non-agricultural prod ucts is used, the average was 9.3 per cent.  The 
subsectors that receive a higher than average leve l of protection include, am ong other things, textiles 
and clothing (17 per cent);  leather, rubber, fo otwear and travel goods (15.2 per cent);  wood, 
wood pulp, paper and furniture (10.2 per cent);  a nd transport equipment (10.1 per cent) (see also 
section (2)(ii) and Tables III.3 and AIV.1).  The ar eas with lower than average tariff protection 
include:  chemicals (7 per cent);  and non-electrical machinery (3.7 per cent). 
60. Imports of various industrial products (for ex ample, chemicals, medicines and medical 
equipment) are subject to registration requirement s or special authorization (see Chapter III(2)(i)).  
Moreover, certain products are subject to import licences, for example, footwear, some textiles and 
some chemicals (Table III.9).  Industrial products  (both Uruguayan and imported) are subject to 
internal taxes (see Chapter III(2)(v)).  Fiscal incen tives are offered under a number of regimes.  The 
Law on the Protection and Promotion of Investme nt, No. 16.906 of 7 January 1998, as implemented 
by Decree No. 455/007 of 26 November 2007, estab lishes the general frame work for investment 
incentives and the promotion of investment in Uruguay.  During the review period the regulations 
relating to this law were revised by establishing new eligibility criteria, which made it possible for 
small and medium-sized enterprises to gain access to  its benefits.  Small and medium-sized businesses 
receive technical assistance and training from the MIEM through its National Directorate of Crafts and Small and Medium-Sized Enterprises (DINAPYME). WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 138 
  
  (4) SERVICES  
(i) Main features and multilateral commitments 
61. The services sector continues to be the most im portant in terms of its contribution to the 
Uruguayan economy, accounting for 57.7 per cent of GDP at current prices in 2010 and 67 per cent of 
total employment (Table I.2).6  Real estate, business and rental services constitute the largest 
subsector, with a 14.5 per cent share of GDP in 20 10, followed by trade, repairs, restaurants and 
hotels (14.4 per cent), and transport, storage and communications (6.7 per cent).  From 2005 to 2010, the services sector grew in real terms at an annual average rate of 7.2 per cent. 
62. During the review period, Uruguay recorded a positi ve balance of services, thanks in part to 
an increase in revenue from travel.  In 2010, expor ts of services amounted to US$2,494 million, while 
imports totalled US$1,426 million (Table I.6). 
63. Uruguay's specific commitments on services undertaken within the context of the 
Uruguay Round include six of the 12 sectors specifie d in the General Agreement on Trade in Services 
(GATS), namely:  business services;  communication services;  financial services;  tourism and travel-related services;  recreational, cultural and sporting services;  and transport services.
7  Likewise, 
Uruguay adopted horizontal commitments concerni ng market access and national treatment which 
allow for the temporary stay in Uruguay of natura l persons in the manager, executive and specialist 
categories. 
64. Uruguay did not take part in the pos t-Uruguay Round negotiations on basic 
telecommunications but it did participate in the extended negotiations on financial services and as a 
result broadened its commitments in this sector.8  Uruguay ratified the Fifth Protocol on Financial 
Services annexed to the GATS by Law No. 17.618 of 10 January 2003.  In its Schedule of 
Commitments under the GATS, Uruguay included the li mitation that an application for authorization 
to provide financial services may be rejected on pr ecautionary grounds, including the current state of 
the market (see also the section on financial services below). 
65. Uruguay has listed exemptions from the principl e of most-favoured-nation treatment under 
Article II of the GATS.  These include provisions of  bilateral investment promotion and protection 
agreements9, as well as measures relating to internationa l land transport of passengers and freight.10 
66. In the Doha Round negotiations on services, Uruguay made an offer in March 2003 and a 
revised offer in June 2005. 
67. In 2004, Uruguay ratified the Montevideo Prot ocol which sets out a programme for the 
liberalization of trade in services betwee n MERCOSUR member countries by December 2015.11  The 
Protocol entered into force on 7 December 2005, after being ratified by Argentina, Brazil and 
                                                      
6 If construction and the supply of electricity, gas and water are included, then the contribution of 
services to GDP rise s to 68.1 per cent. 
7 WTO document GATS/SC/91 of 15 April 1994. 
8 WTO document GATS/SC/91/Suppl.1 of 26 February 1998. 
9 These provisions relate to the freedom to transf er and invest capital and guarantees for investors 
against non-commercial risks. 
10 WTO document GATS/EL/91 of 15 April 1994. 
11 The Protocol was ratified by Uruguay by m eans of Law No. 17.855 of 20 December 2004. Uruguay WT/TPR/S/263/Rev.1 
 Page 139 
 
 
  Uruguay.  Uruguay is also participating in the negotiations on sectoral agreements concerning 
services, including financial and maritime trans port services, being conducted within MERCOSUR. 
(ii) Telecommunications 
(a) Features of the market 
68. In 2010, telecommunications accounted for 2.34 per cent of GDP (at current prices), 
compared with 3.09 per cent in 2005.12  In general, the telecommunications market continued to 
expand during the review period, especially in the mobile telephony and broadband segments.  At the 
same time, major investments were made and m odern technologies incorporated in the sector, 
enabling Uruguay to achieve levels of teledensity  and Internet penetration among the highest in 
Latin America. 
69. The level of competition differs from one market segment to another.  The State continues to 
exercise a de jure  monopoly of fixed telephony throughout the national territory, via the State-owned 
National Telecommunications Authority (ANTEL).  There are several providers of international 
long-distance telephony and data transmission servi ces.  Mobile telephony is open to competition.13 
70. The fixed telephony network has broad c overage and Uruguay has the second highest 
teledensity rate in Latin America (28.6 per 100 inhabitants).  At th e end of 2010, there were about 
962,000 fixed telephone lines.14  Since 2006, the fixed telephony market has gradually declined, 
following the global trend, whereas mobile telephony has maintained its steady growth. 
71. The provision of international long-distan ce telephone services was liberalized in 2001 by 
Articles 612 and 613 of Law No. 17.296, which were subsequently repealed (see below).15  At the end 
of 2010, there were 11 companies offering internat ional long-distance telephone services, although 
ANTEL was holding on to about 60 per cent of th e market.  The International Long-Distance 
Multi-Provider Dialling Selection system has been in operation since 2007. 
72. The mobile telephony market has grown exponentially since 2004.  Opening up to 
competition has led to improvements in the supply of services and a fall in prices.  At the end of 2010, 
there were 4.4 million active mobile phones (as compar ed with 600,000 in 2004) , the equivalent of a 
teledensity of 132 per cent (the 100 per cent threshold was passed in 2008).  Uruguay was one of the 
first countries in Latin America to launch third-generation (3G) services.16  There are three mobile 
service operators:  Movistar (Telefónica), Claro (A mérica Móvil) and ANTEL.  The data of the 
Communications Services Regulatory Unit (URSEC) indicate that at the end of December 2010, 
ANTEL held 44 per cent of the mobile services mark et, Movistar 39 per cent and Claro 17 per cent.17  
The three operators offer 3G and mobile broadband services.  As of December 2010, approximately 
13.5 per cent of the population had opted for mobile broadband. 
                                                      
12 Communications Services Regulatory Unit (URSEC) with the BCU database.   
Viewed at:  http://bcu.gub.uy/Estdísticas-e-indicad ores/Paginas/Presentacion%20Cuentas%20Nationales.aspx 
[September 2011]. 
13 IP (VoIP) telephony is considered to be a telephone  service technology and is subject to the rules and 
regulations that apply to telephone services in the different segments of the market. 
14 URSEC (2010). 
15 Prior to 2001, international long-distance telep hone services were provided exclusively by ANTEL. 
16 In May 2011, ANTEL began testing 4G technology.  Online information from ANTEL.  Viewed at:  
http://www.antel.com.uy/. 
17 URSEC (2010). WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 140 
  
  73. Wireless data transmission and Internet servi ces are open to competition.  In the case of the 
provision of services by wireless technology, at present the only operator is ANTEL.  As of December 2010, data transmission and Internet access  services were being offered by seven operators 
which, if they lack their own infrastructure, can contract for it with different owners.  As the only 
xDSL service provider
18, ANTEL dominates the fixed broadband services segment, with a 95 per cent 
share of the market.19  In December 2010, there were 47.7 Inte rnet users per 100 inhabitants and the 
ratio of broadband users was 24.9 per 100, one of the highest in Latin America.20  An independent 
report indicates that Uruguay's broadband connections are slower than in other countries of the region and the prices that have to be paid for greater speeds are higher.
21  However, it should be noted that 
the lower-speed access services that account for most of the connections are cheap and there are plans 
to offer them free of charge in the near future. 
74. The authorities have pointed out that the implicit price index for the telecommunications 
sector displayed a strong downward trend over the revi ew period.  For example, in mobile telephony, 
the price index fell in a series of steps and since 2006 has trended substantially below the CPI, while 
in fixed telephony, the price index for urban calls  followed the trend in the CPI up to 2006, after 
which it remained stable and well be low the CPI, starting from the unification of the price of calls at 
national level (June 2007). 
(b) Legal and institutional framework 
75. The National Directorate of Telecommunications and Audiovisual Communication Services 
(DINATEL), set up in 2005 under the MIEM, is r esponsible for advising the Executive and proposing 
national telecommunications and audiovisual comm unication policies, as well as for organizing, 
coordinating and monitoring the impl ementation of the policies approved.22  In addition to drafting 
laws and decrees relating to the sector's regulator y framework, DINATEL's responsibilities include:  
policy design and planning the management of the radio-electric spectrum;  advising the Executive on 
the policies and criteria for granting telecommuni cations and audiovisual communication services 
licences and authorizations;  giving mandatory op inions on concession and au thorization procedures 
for providing these services;  promoting the tec hnological development of the telecommunications 
and audiovisual communication sector;  and advising the Executive on those international agreements 
and treaties which include aspects that fall within its competence.23 
76. The tasks of the Communications Services Regulatory Unit (URSEC) include the technical 
regulation, inspection and contro l of telecommunications activities24 and activities relating to the 
receipt, processing, transport and distribution of mail by postal operators.25  Among other things, the 
URSEC is responsible for advising the Execu tive on the drafting and implementation of 
communications policy and for ensuring compliance with  the specific sectoral rules.  It is also 
                                                      
18 Broadband services are limited to xDSL technol ogy and wireless techno logies.  There are no 
authorizations for offering br oadband access by cable/modem. 
19 URSEC (2010). 
20 Information provided by the authorities. 
21 Paul Budde Communication Pty Ltd. (2010). 
22 Online information from DINATEL.   Viewed at:  http://www.miem. gub.uy/portal. [9  June 2010]. 
23 Articles 418 and 422 of Law No. 18.719 of  27 December 2010, which adds Article 94 bis (on the 
responsibilities of DINATEL) to Law No. 17.296  of 21 February 2001.  Viewed at:  
http://archivo.presidencia. gub.uy/sci/leyes/2010/12/cons_min _236_3.pdf [M ay 2011]. 
24 Telecommunications is taken to mean any tran smission or reception of signs, signals, writings, 
images, sounds or intelligence of any nature by wire, radio, optical or other electromagnetic systems. 
25 Article 142 of Law No. 18 .719 of 27 December 2010. Uruguay WT/TPR/S/263/Rev.1 
 Page 141 
 
 
  responsible for administering and supervising the national radio-electric spectrum;  granting 
authorizations for the use of radio-electric frequencie s;  overseeing the installa tion, quality, frequency 
and scope of telecommunications services;  formulating and monitoring the implementation of technical standards for telecommunications;  establis hing rules and industrial models to ensure the 
compatibility, interconnection and interoperability of  networks;  protecting the rights of users and 
consumers;  technically determini ng tariffs and prices;  promoting th e arbitration of disputes between 
market operators and applying the specified sanctions.
26  In addition, URSEC is the implementing 
body for the defence of competition in the sector regulated. 
77. Uruguay does not have a general telecommunications law, the sector being governed by a 
combination of laws, decrees, re gulations, plans and resolutions.27  Law No. 17.296 of 
21 February 2001, which established URSEC, lays down the basic principles that govern the telecommunications sector, namely:  the extension and universalization of access to services;  promotion of competition and the control of monopo listic activities;  the application of rates that 
reflect economic costs;  promotion of investmen t;  and the protection of users and consumers. 
78. In accordance with the Regulations on telecommunications licences
28, the supply of 
telecommunications services to third parties or the p ublic in general, where these services are open to 
competition, requires the granting of a licence by the Executive or, where applicable, URSEC.  There 
are four kinds of licences:  Class A, whic h authorizes the holder to operate a public 
telecommunications network and provide any type of service, except for subscription television 
services;  Class B for the provision of all data transmission services, using the holder's own or 
third-party networks, media or links;  Class C for the installation of telecommunications links, media 
and systems for own use or leasing to telecommunications service licensees;  and Class D for the provision of subscription television services. 
79. Applications for licences must be made to UR SEC.  Except in those cases in which licences 
are awarded following a competitive procedure
29, the requirements for obtaining a licence include 
submission of the application, personal and compa ny documentation, technical information about the 
service to be provided and the equipment to be used , and an investment plan.  Applicants, whether 
natural or legal persons, must be  domiciled in Uruguay.  Foreign companies must show that they 
comply with the applicable provisions of the Law on Trading Companies, i.e. that they are duly constituted abroad.
30  Foreign companies that solely provi de telecommunications services to other 
telecommunications operators only have to prove that they exist and are represented in their dealings 
with URSEC.  The Regulations on telecommun ications licences make no distinction between 
nationals and foreigners where th e granting of licences is concerned.31 
                                                      
26 Online information from URSEC.  Viewed at:  http://www.ursec.gub.uy/scripts/templates/ 
portada.asp?nota=Contenidos/Institutional/Mision/ Mision&COLUMNAS=&ORDEN= [9 June 2011]. 
27 The telecommunications legislation is available on the URSEC website at:  
http://www.ursec.gub.uy/scrip ts/templates/portada.asp?nota=Contenidos/MarcoNormativo/Telecommunications
/&COLUMNAS=1&ORDEN=orden. 
28 Decree No. 115/003 of 25 March 2003, as amended by Decree No. 085/009 of 17 February 2009.  
These Regulations govern the provision of all telecommunications services, except for broadcasting, which is governed by the Regulations on the radio-electric spectrum (Decree No. 114/003 of 25 March 2003). 
29 Where a licence is granted following a competitive procedure, the requirements are those specified in 
the corresponding tender specifications. 
30 Articles 192 to 198 of Law No. 16.060 of 4 September 1989. 
31 In the case of broadcasting services, which are governed by other regulations (Decree No. 114/003 of 
25 March 2003), licences may only be issued to nationals. WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 142 
  
  80. Licence holders may not limit the right of users to free choice or engage in practices that 
restrict competition or discriminate between different  licensees.  The obligations of licensees include 
keeping separate accounts for servi ces, when so stipulated by URSEC, with respect to specific 
services or classes of licences.  Since 2009 URSEC  has been working on drafting Regulations on 
separate accounting for services.  Licences may be transferred or assigned, subject to authorization by 
the Executive or URSEC, as appropriate.  Likewi se, both the Executive and URSEC, depending on 
the circumstances, may revoke licences or impose other penalties. 
81. Competition for the provision of intern ational long-distance telephone services was 
authorized by Article 613 of Law No. 17.296 (2001).  This allowed the granting of 14 authorizations 
for the provision of these services, of which 11 were  in operation at the end of 2011.  However, 
Article 613 of Law No. 17.296 was repealed by Law No. 17.524 of 5 August 2002, thereby 
eliminating the possibility of granting new authori zations for these services.  At the moment, the 
authorities have no plans to grant new licences for the provision of international long-distance services. 
82. The rates for telecommunications services are freely determined by the operators, with the 
exception of the rates for national fixed-telephony calls, which must be approved by the Executive.
32  
URSEC proposes the rates for the use of radio-electric frequencies, which must also be approved by the Executive.  These rates were last updated in December 2005. 
83. Under the Regulations on interconnection and the international long-distance multi-provider 
system (2001)
33, telecommunications service operators w ho apply to use essential resources have the 
right to request interconnection, while the operators  to whom the request is addressed are obliged to 
grant it on reasonable terms equivalent to those gran ted to third parties, to themselves or to their 
related companies.  Operators are free to agree among themselv es the prices and conditions of 
interconnection by signing contracts, provided that th e latter are consistent wi th the provisions of the 
above-mentioned Regulations.  The contracts must  be submitted to URSEC, which publishes a 
summary of their contents on its website.  In the ev ent of disagreement between the parties, URSEC is 
authorized to intervene and set the interconnection prices, with account for, among other things, the 
long-run average incremental costs (CILP).  Inte rconnection disputes can also be subjected to a 
dispute settlement procedure overseen by URSEC, which can determine provisional interconnection 
conditions pending completion of a technical analysis  of the file and the corresponding reports.  The 
authorities have noted that between 2005 and 2011, UR SEC issued 16 resolutions relating to cases of 
interconnection.34 
84. Within the context of competition law35, URSEC has acted ex officio or on complaints from 
telecommunications operators in cases relating, among other things, to collusiv e practices, refusal to 
deal, abuse of dominant position, tied sales and pr edatory pricing.  Be tween 2005 and 2011, URSEC 
issued seven resolutions concer ning the defence of competition.36 
85. The authorities have indicated that the introduc tion of number portability in Uruguay is not on 
the short-term agenda. 
                                                      
32 Since June 2007, ANTEL's rates for national long-dis tance calls have been the same as the rates for 
local calls. 
33 Decree No. 442/001 of 13 November 2001, as amended by Decree No. 393/002 of 16 October 2002. 
34 The resolutions can be viewed on the URSEC website at:  http://www.ursec.gub.uy. 
35 Law No. 17.243 of 29 July 2000 and Law No. 18.159 of 20 July 2007. 
36 The resolutions can be viewed on the URSEC website at:  http://www.ursec.gub.uy. Uruguay WT/TPR/S/263/Rev.1 
 Page 143 
 
 
  86. The provision of telecommunications services is subject to the control fee specified in the 
Regulatory Framework for Communications, created by Law No. 17.930 of 19 December 2005 (as amended by Law No. 18.046 of  24 October 2006), which is char ged for controlling the regulated 
activities.  The fee is payable by the providers of commercial communications services, except for 
those companies that offer broadcasting services.  It is equal to 0.3 per cent of the total gross income 
derived from the activity taxed, is paid mont hly on the basis of a semi-annual statement and 
constitutes consideration for URSEC's statutory cont rol activity.  The telecommunications tax (ITEL) 
was repealed by Law No. 18.083 of 27 December 2006. 
87. In Uruguay there are no specific universal telecommunications service requirements.  One of 
URSEC's objectives is to promote the extension an d universalization of access to communications 
services, but it does not impose universal service ob ligations on telecommunications operators.  The 
State-owned enterprise ANTEL has taken universal acc ess initiatives such as the installation of public 
telephones, the extension of the fixed telephony networ k to the whole of the national territory and the 
provision of rural telephone services.
37  Recently, it introduced programmes for improving access to 
information and communication technologies (ICT) in  coordination with government agencies and 
civil society organizations. 
88. As a result of an initiative by the Office of the President of the Republic, in 2007, the 
CEIBAL Plan (Basic Information Technology Educational Connectivity for Online Learning) was launched.  This involves providing every child in  the country's public education system with a 
computer.  Since it began, the CEIBAL Plan has delivered more than half a million laptops, in a 
programme covering 100 per cent of  the student population, and provid ed connectivity for educational 
establishments and public places throughout the terr itory.  In this way, the Plan has helped 
considerably to improve ICT access, use and sk ills, thereby narrowing the technological divide 
between households with different levels of in come and the different regions of the country.
38  The 
ITU has ranked Uruguay first in Latin America in the development of ICT.39  The Plan enjoys the 
support of ANTEL, Movistar and other operators. 
(iii) Financial services 
(a) Overview 
89. During the review period, Uruguay's financial sector continued to grow and strengthen, as 
demonstrated by the improvement in the main financ ial indicators.  The data for July 2011 show that 
the banking system is well capitalized and has high  levels of liquidity, non-performing loans have 
fallen to an historic low and lending to the privat e sector has increased considerably.  At the same 
time, the sector has been th e focus of continuing reforms, includi ng changes in the management of the 
public banks and the restructuring of one of them (see below) and progress with the strengthening of 
the prudential regulation and supervision of the banking system (in areas such as integrated risk 
management and the provision regime).  The soundn ess of Uruguay's financial system enabled it to 
emerge from the recent global financial crisis without  serious consequences.  The main impact of the 
crisis on the local financial system was a decrease  in the income that Uruguayan banks receive from 
their investments in foreign financial institutions due  to low international interest rates, which has 
                                                      
37 ANTEL (2009). 
38 Information provided by the authorities. 
39 Online information from the INE.  Viewed at:  http://www.ine.gub.uy/encuestas%20fializadas/ 
tics2011/ NotaPrensa%20EUTIC.pdf. WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 144 
  
  contributed, in part, to the low level of profitability in the banking sector.40  At the end of 2010, 
financial intermediation services accounted fo r 4.2 per cent of total GDP (Table I.2). 
90. The Uruguayan financial system, which opera tes under the supervision of the BCU's 
Financial Services Supervisory Aut hority (SSF), is composed of fina ncial intermediation institutions, 
credit management companies, financial services companies, fund transfer companies, foreign 
exchange houses, representative offi ces of foreign financial entities, insurance companies and dealers 
on the securities market.  During 2010, investment advisers and providers of management, accountancy, risk assessment and data processing services were also brought within the orbit of BCU supervision.  In their turn, the financial in termediation institutions include banks, financial 
intermediation cooperatives, finance houses, external  financial institutions (IFEs) or offshore banks, 
and pension fund management companies.  The offshore banks (IFEs) operate exclusively with 
persons not resident in Uruguay. 
(b) Banks and other financial intermediation institutions 
General features 
91. In December 2010, the financial management in stitutions comprised:  14 banks (two public 
and 12 private), one financial intermediation c ooperative, five finance houses, four IFEs and 
four pension fund management companies.  Altoge ther, the financial intermediation institutions had 
assets totalling US$27,575 million, 92 per cent of whic h was controlled by the banks (Table IV.1). 
Table IV.1  
Assets, liabilities and net worth of the financ ial intermediation institutions, December 2010 
(US$ million) 
Type of institution Number of institutions Assets Liabilities Net worth 
Public banks 2 11,575 9,945 1,630 
Private banks 12 13,799 12,632 1,166 
Subtotal:  Banking system  14 25,373 22,577 2,796 
Cooperatives 1 16 11 6 
Finance houses 5 258 188 69 
Off-shore financial institu tions 4 1,901  1,823 78 
Pension fund management companies 4 26 22 4 
Subtotal:  Other financial interm ediaries 14 2, 202 2,045 157 
Total 28 27,575 24,622 2,953 
Source : Central Bank of Uruguay (2010b), Reporte de Estabilidad Financiera  - 2010.  Viewed at:  
http://www.bcu.gub.uy/Servi ces-Financieros-SSF/Paginas/Reporte-A nual-de-Estabilidad-Financiera.aspx. 
92. The share of the two public banks41 in the Uruguayan banking system continues to be 
substantial.  At the end of 2010, they accounted for 46 per cent of total bank assets (53 per cent in 
June 2005), while the 12 private banks operating at th at time held the remaining 54 per cent.  Among 
the latter, the largest bank accounted for 32 per cent of total private bank assets (equivalent to 17.4 per 
cent of total bank assets).  The private banks are wholly or majority-owned by foreign banks.  
In April 2011, Credit Uruguay Bank S.A. was wholly taken over by Bank Bilbao Vizcaya Argentaria S.A. and, at the end of June 2011, th e New Commercial Bank, who se shares used to be 
owned by the State (although it was privately run), passed into the ownership of a foreign bank. 
                                                      
40 BCU (2010b). 
41 The two public banks are the BROU and the BHU. Uruguay WT/TPR/S/263/Rev.1 
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93. Since the financial crisis of 2002, the Urugua yan banks have made a notable recovery and 
strengthened their main financial indicator s.  In December 2010, the net worth ( Responsabilidad 
Patrimonial Neta  (RPN))42 of the banking system as a whole amounted to 15.2 per cent of total 
risk-weighted assets, almost twice the minimu m required by the regulations (8 per cent).43  The level 
of default (ratio of loans due to total gross loans)  had been substantially reduced and at the end of 
2010 stood at 1.05 per cent (as compared with 7 per cent in June 200544), while provisions were equal 
to 6.2 per cent of gross loans.  Likewise, the liqui dity of the banking system is being maintained at 
high levels, with 30 and 91 day liquidity ratios at around 60 per cent (December 2010).  This has 
made possible a notable expansion of credit in the last few years;  in 2010 alone, total loans to the 
resident private sector grew by 26 per cent.45  Although the increase in the volume of business in the 
banking sector has resulted in an improvement in  the banks' results, their average profitability 
continues to be low, with rates of return on assets (ROA) averaging 0.77 per cent and rates of return on equity (ROE) averaging 7.0 per cent at the end of 2010.  The IMF considers that the low levels of 
profitability of the banks call for efforts to improve the sector's productivity.
46  In this connection, the 
Uruguayan authorities have noted that average ROE,  measured in US dollars, is 10.4 per cent, the 
good levels of profitability of the State-owned ba nk BROU, the principal bank in the system, being 
particularly noteworthy (see below).  Moreover, they  note that the low profitability of some banks is 
related with the high levels of liquidity that they maintain unplaced. 
94. The Uruguayan banking system continues to be characterized by a high degree of 
dollarization.  In December 2010, about 71 per cent of the non-fi nancial sector's deposits were 
denominated in foreign currency (US dollars).  Ou t of total non-financial sector deposits, 83 per cent 
were resident and 17 per cent were non-resident deposits.47  Where credit is concerned, in 
December 2010, 59 per cent of total loans granted to the non-financial sector were denominated in 
foreign currency and the rest in the national curre ncy.  By economic activ ity, the sectors with the 
highest proportion of debt denominated in dollars are agriculture (98 per cent) and 
manufacturing (94 per cent), whereas the percentage of dollar loans granted to households has fallen 
to 8 per cent.  It should be noted that the dollarizati on of credit to sectors that generate income in local 
currency declined from 61.1 per cent in 2006 to 45.9 per cent in 2010.48 
95. The average interest rate on dollar loans h as fallen to unprecedented levels, around 5.3 per 
cent in December 2010, while the average rate on fi xed-term deposits denominat ed in dollars stood at 
0.44 per cent.  With regard to operations in the na tional currency, the average interest rate on loans to 
businesses was 12.2 per cent and to households 30 per cent, while the average interest rate on 
fixed-term deposits in the national currency was 4.8 per cent at the close of 2010. 
96. The government-owned banks are the BROU a nd the BHU.  The BROU is the country's 
largest bank.  It functions as a State bank, wh ile operating as a commercial and development bank, 
providing credit for agriculture, industry and consum ption.  In December 2010, the BROU held 40 per 
cent of total banking system assets and its results fo r financial year 2010 were more than three times 
                                                      
42 The RPN of each bank and of the system as a wh ole corresponds to the net worth computable for the 
purposes of compliance with the minimum capital requirements and consists of the book net worth plus 
subordinated debt. 
43 BCU (2010b). 
44 WTO document WT/TPR/S/163/Rev.1 of 23 August 2006. 
45 BCU (2010b). 
46 IMF (2011). 
47 BCU (2010b). 
48 BCU (2010b). WT/TPR/S/263/Rev.1 Trade Policy Review 
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  those for the previous year, generating a rate of return on assets (ROA) of 1.5 per cent and a rate of 
return on equity (ROE) of 14.4 per cent, the second highest in the banking sector.49 
97. The BHU is a State-owned mortgage bank, offe ring loans for buying, building and repairing 
homes and obtaining funds from pension scheme deposits .  At the end of 2010, it held 5.5 per cent of 
total banking sector assets.  The BHU was heavily aff ected by the national financial crisis of 2002, 
which resulted in the suspension of its lending until 2006.  The BHU had to be recapitalized by the 
Government and underwent extensiv e restructuring between 2006 and 2009.50  As a result of the 
restructuring and changes in its administrati on and risk policy management, its performance 
improved.  Nevertheless, the BHU continues to re port high levels of defaul t (25 per cent) and its 
regulatory capital ratio with respect to the capita l requirement for risk-weighted assets, including 
market risk, still does not comply with the regulatory minimum.51 
Regulatory framework 
98. Financial intermediation activities are mainly  governed by Decree-Law No. 15.322 of 
17 September 1982 (Financial Intermediation La w) and its amendments (Law No. 16.327 of 
11 November 1992, Law No. 17.523 of 4 August 2002 and Law No. 17.613 of 27 December 2002), 
Decree No. 614/992 of 11 December 1992 (implementi ng Law No. 15.322) and the resolutions issued 
by the regulatory authority (Compilation of Rul es on the Regulation and Control of the Financial 
System and implementing communications). 
99. The most important legal reforms concerning the financial sector during the review period are 
the changes to the cons olidated text of the BCU's Organic Charter.52  Law No. 18.401 of 
24 October 2008 modified the structure of the BC U and introduced changes in the regulation of 
financial activities.  One of the main changes was th e creation of the SSF, within the BCU, as the sole 
entity responsible for regulating a nd supervising the activities of the sector, taken to include the 
financial intermediation instituti ons (public banks included), insu rance companies, pension fund 
management companies and securities market firms, which were previously supervised by different 
bodies.53  One of the chief objectives of this change is to facilitate the supervision of financial 
conglomerates.  Moreover, the Law conferred on th e SSF the power to regulate and inspect financial 
services companies54 and the activities of natural and lega l persons that provide, in Uruguay, 
management, accountancy or data processing servi ces relating to the management of business 
operations carried out by natural or legal persons  engaging in financial activities abroad.  The SSF 
started functioning in March 2009. 
                                                      
49 BCU (2010b) and AMP & Associates, Financial Advisory Services (2011). 
50 Law No. 17.513 of 30 June 2002 authorized the Executive to capitalize the BHU for up to 
US$550 million by subrogation of its debt with the BCU.  Law No. 17.596 of 13 December 2002 redefined the functions of the BHU and stipulated that it could only take deposits from the public through the advance savings 
system.  It also set a limit on its direct and contingent risk mortgage loan operations.  
WTO document WT/TPR/S/163/Rev.1 of 23 August 2006. 
51 BCU (2010b). 
52 Law No. 16.696 of 30 March 1995, with amendments introduced by Laws No. 18.401 of 
24 October 2008, No. 18.643 of 9 February 2010 and No. 18.670 of 20 July 2010. 
53 The SSF combines the activities previously carried  out by the Financial In termediation Institutions 
Supervisory Authority (SIIF), the Insurance and Reinsu rance Supervisory Authority  (SSR) and the Securities 
Market and Supervision of Pension Fund Managers Division (DMCVA). 
54 Financial enterprises are defined as those which, without being financial intermediation institutions, 
provide foreign exchange, fund transfer, payment, collection, safe-deposit box rental, lending or similar 
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  100. Another major change introduced by Law No. 18.401 was the establishment of the Bank 
Savings Protection Corporation (COPAB) as a non- government legal person unde r public law.  The 
COPAB is responsible for promoti ng the protection of savings in fi nancial intermediation institutions, 
administering the resources of the Bank Depos it Guarantee Fund (see below) and managing the 
process of bank resolution of financial intermediati on institutions in crisis and, where appropriate, 
acting as their liquidator.  The COPAB, endowed  with greater responsibilities and autonomy, took 
over the functions previously performed by th e Bank Savings Protection Supervisory Authority.55 
101. Uruguay maintains a liberal financial system in which transactions can be carried out in 
Uruguayan or foreign currency, there are no restri ctions on capital movements, and banking secrecy is 
observed.  In this connection, it shou ld be noted that in January 2011 Law 
No. 18.718 (24 December 2010) entered into force.  This law made banking secrecy more flexible, by 
authorizing the DGI in the MEF to investigate th e bank accounts of natural and legal persons where 
there is prima facie evidence of tax evasion, subject  to a civil court decision (previously a criminal 
court order would have been required).  The La w also authorizes the DGI to provide financial 
information in response to express and reasoned re quests by the authorities of other countries under 
bilateral information exchange or double taxation agreements. 
102. Under the Financial Intermediation Law (D ecree-Law No. 15.322) and its amendments, 
companies that wish to provide financial intermediation services in Uruguay must obtain prior authorization from the Executive, acting on the favourable opinion of the BCU, as well as the authorization of the BCU itself.  In both cases, crite ria of legality, timeliness and necessity must be 
taken into account, with particular attention being pa id to the solvency, rectitude and aptitude of the 
applicant company.
56  Mergers, acquisitions and conversions  of financial intermediation companies 
also require prior authorization by the Executive and the prior and express consent of the BCU.  In 
addition, there is a requirement to have the appoint ment of the directors and chief executive officer of 
the institution cleared by the SSF.  It should be not ed that Law No. 18.401 of 2008 partially repealed 
Decree-Law No. 15.322, which limited the number of authorizations for the operation of new banks to 
10 per cent of those in existence during the immediately previous year. 
103. In general, the legislation does not distingui sh between domestic and foreign banks.  Banks 
wishing to become established in Uruguay must be organized as Uruguayan public limited companies 
with registered shares or as branches of foreign ba nks, provided that their articles of incorporation do 
not prohibit Uruguayan citizens from being members of the management board or from holding any 
other senior post in the institution within the territory of Uruguay.  The basic regulatory 
capital (minimum capital) required to establis h a bank is 130 million UI, equivalent to 
US$13.8 million (as of 31 December 2010).  To be ab le to commence operations, banks must first pay 
up the whole of the basic regulatory capital, which must be maintained in assets located in Uruguay. 
104. The external financial institutions (IFEs) or  off-shore banks are governed by Decree-Law 
No. 15.322 and its amendments, Decree No. 381/989 of 16 August 1989 and its amendments57, 
Decree No. 614/992 and Book VI of the Compilation of Rules on the Regulation and Control of the Financial System.  IFEs are authorized to carry out all financial intermediation activities, including 
taking sight and current account deposits, in foreign currency, provided that they operate exclusively 
                                                      
55 The Bank Savings Protection Supervisory Authority and the Deposit Guarantee Fund were 
established by Law No. 17.613 of 27 December 2002.  See WTO document WT/TPR/S/163/Rev.1 of 
23 August 2006. 
56 Article 6 of Decree-Law No. 15.322. 
57 Decree No. 540/990 of 30 November 1990, Decree No. 266/991 of 22 May 1991 and Decree 
No. 189/994 of 3 May 1994. WT/TPR/S/263/Rev.1 Trade Policy Review 
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  with non-residents.  Their head office must be in Ur uguay.  To set up in the country they must obtain 
the prior authorization of the Executive and the a pproval of the BCU.  IFEs may be branches of 
foreign banks or be constituted in Uruguay as public  limited companies with registered shares, which 
may only be owned by banks.  To  commence operations, IFEs must pay up the whole of the basic 
regulatory capital required, namely, US$4.5 million, while maintaining a US$500,000 deposit in the 
BCU or its equivalent in national government secu rities denominated in foreign currency and quotable 
on stock exchanges.  IFEs are exempt from all kinds of tax. 
105. The purpose of the Deposit Guarantee Fund (FGDB), created by Law No. 17.613 of 
27 December 2002 as a result of the financial crisis of  that year, is to guarantee deposits of any kind 
made by natural or lega l persons in financial in termediation institutions;  it is mainly funded by 
contributions from banks and fina ncial intermediation cooperativ es.  Decree No. 103/005 of 
7 March 2005 regulated the operation of the F GDB, establishing the limits on the amounts covered 
and the contributions of the partic ipating institutions.  The FGDB guarantees to pay out up to the 
equivalent of US$5,000 on tota l deposits in foreign currency and up to the equivalent of 
UI 250,000 (some US$26,612 as of 31 December 2 010) on total deposits in Uruguayan currency, 
per person (whether natural or legal) and per institution.  Since 2008, the COPAB has been 
responsible for administering the FGDB.58 
106. Under the rules on capital adequacy that apply in Uruguay, in addition to the basic capital 
requirement mentioned above, there is a cap ital requirement for assets and contingencies59 and 
another for credit60 and market61 risks, the greater of which determines the minimum capital to be 
maintained.  The regulations partially incorporate the principles of the Basel II Accord and in 2009 
the SSF initiated a process for adopting them in their entirety;  under the "road map" drawn up for this 
purpose, it is anticipated that the implementation of pillars  I, II and III of Basel II will be completed in 
2014.62  The authorities have indicated that th is process is progressing according to plan. 
107. During the review period, Uruguay adop ted and implemented measures aimed at 
strengthening the prudential regulatory framework of the financial system, including:  a new system 
of classifying and providing for credit risks (A pril 2006), the establishment of minimum capital 
requirements for market risk and modification of the capital requirements for credit risk (June 2006), 
a liquidity regime with prudential objectives (May 2007), the total entry into force of the new restrictions on the concentration of risk approve d in October 2003 (July 2008), the obligation on 
banks to maintain an integrated risk management system (July 2008) and changes in the regulation of 
external auditors of the entities supervised in respect of the provision of services other than auditing 
services, mandatory rotation and limits on the income  received from an entity (January 2009).  In 
2009, the rules were changed to improve the protec tion of consumers of financial services and the 
transparency of information, and provisions were  introduced concerning the activities of institutions 
that provide services related with financial instruments issued by third parties.
63  The SSF has used 
                                                      
58 For more details consult the COPAB Inte rnet portal at:  http://www.copab.org.uy. 
59 The capital requirement for assets and contingencies is equivalent to 4 per cent of the assets and 
contingencies without weighting. 
60 The capital requirement for credit risk is equivalent to 8 per cent of the assets and debit-side 
contingencies weighted for credit risk. 
61 The requirement for market risk is composed of an  exchange rate risk requirement and a requirement 
for interest rate risk. 
62 Online information from the BCU.  Viewed a t:  http://www.bcu.gub.uy/Services-Financieros- 
SSf/paginas/Hoja-de-Ruta-Bas ilea.aspx [27 July 2011]. 
63 BCU (2010b). Uruguay WT/TPR/S/263/Rev.1 
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  three procedures for supervising financial entities:  supervision in situ , remote supervision and 
monitoring of recommendations for ensuring the early correction of any weaknesses detected. 
108. Within the framework of the GATS, wher e banking and other fi nancial services are 
concerned, Uruguay undertook commitments with respect to the provision of wholesale deposit 
services, other bank deposit services, financial leasing services with purchase option, personal 
instalment loan services and credit card services.  No  limitations were imposed with respect to market 
access via modes 1 (cross-border supply) and 2 (cons umption abroad), whereas the establishment of 
banks is subject to the requirement of commercial presence (mode 3) in the form of a public limited 
company with registered shares or a branch of a foreign bank.  As noted above, the quantitative 
limitation on the number of banks imposed by D ecree No. 15.322 and entered in Uruguay's schedule 
of specific commitments was repealed in 2008.  A horizontal note explains that an application for 
authorization to provide any type of financia l service may be "rejected on precautionary grounds, 
including the current state of the market".64 
(c) Insurance 
General features 
109. In December 2010, the Uruguayan insurance mark et consisted of the State-owned company 
BSE and 15 private companies operating in different branches of insurance, the majority of which 
were subsidiaries of foreign companies.  There wa s no reinsurance company established in Uruguay.  
At the end of 2010, the vehicle insu rance branch was still in the lead with 32 per cent of the total 
output of direct insurance, having gained momentum  from the entry into for ce of compulsory motor 
vehicle insurance in August 2009 and the increase in sales of new vehicles;  it was followed by 
occupational accident insurance (24 per cent), non-so cial-security-related life insurance (13 per cent) 
and social-security-related life insurance (11 per cent).  Premiums ceded for reinsurance purposes 
(proportional and non-proportional cessions included) accounted for 9 per cent of direct insurance 
production in 2010, so that the retention level for all branches was 91 per cent.65 
110. In 2010, the Uruguayan insurance market gene rated US$68 million in profits and grew at a 
real rate of 6.6 per cent relative to 2009, social-s ecurity-related life insurance being the branch that 
recorded the greatest growth (46 per cent), followe d by the motor vehicle branch (9 per cent).  
In 2010, the amount of net premiums received to talled US$617 million, equal to around 1.5 per cent 
of GDP.66 
111. At the close of 2010, total insurance company assets had reached 
Ur$35,009 million (US$1,742 million), of which 78 per cent corresponded to financial assets, mainly 
securities issued by the Uruguayan State.  On 31 December 2010, the total net worth of the direct insurance market was equal to Ur$7,807 million (som e US$388.46 million).  With regard to solvency, 
in 2010 the insurance companies as a whole had cap ital resources equal to 2.95 times the minimum 
capital required by the prudential regulations.
67 
112. Despite the demonopolization of the insuran ce market in 1993, which resulted in an 
improvement in services and a fall in prices, the State continues to play a major part in the sector through the State Insurance Bank (BSE), which accounts for approximately 57.3 per cent of the 
                                                      
64 WTO document GATS/SC/91/Suppl.1 of 26 February 1998. 
65 BCU (2010b). 
66 BCU (2010b). 
67 BCU (2010b). WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 150 
  
  market (excluding the occupational accident branch).  It is followed by the private companies 
Royal & Sun Alliance Seguros (Uruguay) with 10.9  per cent and Porto Seguro (Seguros del Uruguay) 
with 7.7 per cent.  At branch level, the BSE maintains a statutory monopoly of the occupational accident segment (compulsory insurance), as we ll as a de facto monopoly in the export credit 
insurance and social-security-related life insuran ce branches;  there are no legal limitations on the 
ability of other companies to request and obtain au thorization to offer export credit insurance or 
social-security-related life insurance.  In the non- social-security-related life insurance sector the 
BSE accounts for one quarter of the market and in the vehicles sector for 54.8 per cent.
68  At the end 
of 2010, the BSE reported assets of US$1,357 million.69 
Regulatory framework 
113. In Uruguay, the insurance sector is gove rned mainly by Law No. 16.426 of 
14 October 1993 (Law on Ending the Insurance Monopol y) and its amendments (Law No. 16.851 of 
15 July 1997 and Law No. 17.296 of 21 Fe bruary 2001), by Decree No. 530/993 of 
25 November 1993 and Decree No. 354/994 of 17 August 1994, which implements Law 
No. 16.426 (as amended by Decree No. 108/008 of 25  February 2008), as well as by the resolutions 
and circulars issued by the regulatory body (Com pilation of Insurance and Reinsurance Regulations 
and its implementing communications). 
114. Law No. 16.426 ended the State monopoly of the BSE and liberalized the insurance sector, 
making it possible to insure against all risks by taki ng out policies with private insurance companies.  
Nevertheless, the Law maintained the BSE's m onopoly of work accident and occupational disease 
insurance, which is covered by Law No. 16.074 of 10 October 1989. 
115. In addition, Law No. 16.426 created the Insurance and Reinsurance Supervisory 
Authority (SSR) as the regulatory body responsible  for supervising and monitoring the insurance 
industry.  However, the adoption of amendments to the Organic Charter of the BCU led to the 
establishment of the SSF, which strengthened the regul ation and supervision of all financial activities, 
including those of the insurance and reinsura nce companies, and in March 2009 took over the 
functions previously performed by the SSR a nd other regulatory bodies (see above (iii)(b)). 
116. Under Law No. 16.426 and its Regulatory D ecree (Decree No. 354/994), any insurance or 
reinsurance activity requires the prior authorizati on of the Executive, following advice from the BCU, 
together with approval from the regulatory body, curren tly the SSF.  The regulations stipulate that to 
carry on an insurance activity,  a company must be established in Uruguay as a public limited 
company with registered shares and an exclusive pur pose.  The transfer of shares between companies 
also requires the prior authorization of the regulatory body. 
117. Insurance companies can operate simultaneously in  all branches of insurance, life or general, 
provided that they comply with the minimum capit al requirements for each branch.  However, to 
operate in the social-security-related life branch they must previously have been authorized to operate 
in the life branch.  There are no limits on foreign pa rticipation in new or existing companies, provided 
that they are set up as Uruguayan public limited co mpanies.  Foreign insurance companies may not 
establish branches or representative offices for the purpose of carrying out insurance activities in 
Uruguay. 
                                                      
68 Online information from the BCU.  Viewed at http://www3.bcu.gub.uy/authoriza/ 
sssrer/reportes/resram/consolidado2010123 1.xls [3 October 2011].  For esti mating market share the technical 
result, net retained earned premiums, was used. 
69 BCU (2010b). Uruguay WT/TPR/S/263/Rev.1 
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  118. Law No. 16.426 stipulates that insurance policies to cover risks that might occur in 
Uruguayan territory may only be taken out with companies established and duly authorized in 
Uruguay.  However, the same law provides exempti on from the requirement to take out policies with 
companies established in Uruguay for goods carri ed in international transport and trade.70  Moreover, 
Law No. 16.426 (as amended by Article 269 of Law No. 17.296 of 21 February 2001) states that, 
except for merchant vessels and any floating structure,  whether or not self-propelled, used for civilian 
purposes and flying the Uruguayan flag, all other vehicl es or means used for the transport of persons 
or goods and registered in or flying the flag of Uruguay, may only be insured with companies established and authorized in Uruguay.  The excep tion does not include the units that make up the 
fishing fleet. 
119. The SSF verifies the solvency of insurance companies and specifies the minimum capital 
requirements they must meet in order to operate in  Uruguay.  Minimum capital is taken to mean the 
basic capital (an amount which depends on the type  and number of the branches in which they 
operate) or the solvency margin (determined as a function of the premiums and losses involved in the activity), whichever is the greater.
71  Since the issuance of Circular No. 2087 of 23 June 201172, the 
basic capital has been the equivalent in the na tional currency of 10,000,000 UI, or approximately 
US$1,125,000 as of 30 September 2011.73  This capital is required what ever the branch in which the 
insurance company operates and if it is proposed to  operate in more than one branch, additional 
capital equal to 1/6 (one sixth) of  the above-mentioned amount is requi red.  Moreover, insurers selling 
social-security-related insurance must provide proof of basic capital additional to that already proven 
in order to operate in the life insurance bran ch, which is similarly adjusted and equal to 
UI 6,400,000 (US$720,000 as of 30 September 2011). 
120. The SSF also regulates the constitution of tec hnical reserves and the investments that 
insurance companies are allowed to make.  With regard to the latter, there are valuation and 
diversification rules for the assets that make up th e company's investment portfolio;  these rules were 
also amended by Circular No. 2087 of 23 June 2 011 and can be found in the BCU's Compilation of 
Insurance and Reinsurance Regulations. 
121. Reinsurance companies are subject to the same regulations as apply to insurance companies, 
except with regard to the basic capital which is te n times higher than that required of insurers, for a 
single branch (some US$11,250,000 as of 30 September 2011), irrespective of the number of branches in which they operate. 
122. In 2010, the rules on taking out reinsurance contracts with companies not established in 
Uruguay were amended, to specify the requirements th at such contracts must meet to be considered 
for the constitution of technical reserves, calcu lation and coverage of the minimum capital, 
determination of the net worth for proving minimum capital and non-social-security-related 
obligations.  For these purposes, reinsu rance companies must have an international risk rating equal to 
or better than "A-" or its equivalent.  Previously, reinsurance could be calculated if the contract was 
with a company or broker enrolled in the register  of insurance companies not established in Uruguay 
                                                      
70 Law No. 16.851 of 15 July 1997 states, by way of interpretation, that the exception for insurance 
relating to international transport and trade a pplies exclusively to the goods transported. 
71 Article 9, Title III, Book 1 of the BCU's Comp ilation of Insurance and Reinsurance Regulations. 
72 Circular No. 2087 can be viewed on the BCU's Internet page at:  http://www3.bcu.gub.uy/authoriza/ 
sssrer/recssyr/rec opila/libro01.pdf. 
73 The basic capital is updated quarterly to the UI value in effect on the last day of each 
calendar quarter. WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 152 
  
  or the register of reinsurance brokers of compan ies not established in Uruguay, which used to be 
maintained by the SSR and have been abolished.74 
123. In accordance with Decree No. 354/994, insura nce companies must notify the regulatory body 
of the texts of policies, covenants and other riders before they are used in the market.  Premiums and 
rates are freely determined by the insurance comp anies, except in the case of social-security-related 
annuities for which there are maximum premiums. 
124. With respect to taxation, it should be noted that insurance and reinsurance policies covering 
death, retirement, disability, sickness and personal injury are exempt from VAT under Decree No. 354/994 which, in its turn, regulates Artic le 12 of Law No. 16.426.  However, in order to 
finance the National Blood Service, a tax of up to 2 per cent is imposed on insurance or capitalization 
premiums in transactions effected on Uruguayan territory.
75 
125. The changes in the insurance legislation made during the review period include the 
regulations issued in Circular No. 2087 of 23 J une 2011, which adjusted the capital requirements and 
introduced amendments relating to the investments insurance companies are allowed to make and the 
diversification of their assets.  Other important changes were the revision of the insurance company 
reporting and penalty regime (2010) and the introduction of compulsory motor vehicle 
insurance (SOA) in 2009.  With regard to the fo rmer, a paperless system for receiving information 
from insurance companies electronically was set up and a new penalty regime was developed.  With regard to the latter, the SOA Law (No. 18.412 of 17 November 2008), which entered into force in 
August 2009, made it compulsory to take out civil liability insurance covering bodily injury and death 
suffered by third parties as a consequence of accide nts caused by motor vehicles.  Until owners of 
motor vehicles take out this insurance th eir vehicles are not allowed on the roads.
76  The introduction 
of the SOA appears to have stimulated sales of motor vehicle insurance both by the State-owned 
company BSE and private companies, inasmuch as only 45 per cent of the vehicle fleet already had a policy when the above-mentioned law entered into force.
77 
126. Within the context of the GATS, Uruguay undertook commitments solely with respect to 
motor vehicle insurance;  marine, aviation and other transport insurance;  freight insurance and some 
auxiliary services (insurance and pens ion consultancy services and actuarial services).  It did not make 
commitments with respect to other types of insuran ce, for example, life insurance and other branches 
of general insurance.  In general, the supply of  insurance services via modes 1 (cross-border supply), 
2 (consumption abroad) and 4 (presence of natural persons) was left unbound with respect to market 
access, whereas commercial presence (mode 3) was made subject to the requirement of being 
organized as a Uruguayan public limited company.  In its schedule of commitments Uruguay assumed 
national treatment obligations without limitations for the supply of insurance services under modes 1, 
2 and 3.  It did not impose any market access or  national treatment limitations on the supply of 
actuarial services or insurance and pension cons ultancy services, except as regards the presence of 
natural persons acting as service suppliers.  As in  the case of banking and other financial services, 
applications for authorization to provide insura nce services may be rejected on precautionary grounds, 
including the current state of the market. 
                                                      
74 Circular No. 2054 of 25 February 2010. 
75 Article 361 of Law No. 17.296 of 21 February 2001. 
76 Motorcycles are also subject to this requirement,  except for those with a cylinder capacity of less 
than 70 cc registered pr ior to the entry into force of Law No. 18.412. 
77 Spanish Foreign Trade Institute (2009). Uruguay WT/TPR/S/263/Rev.1 
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  (iv) Air transport and airports 
(a) General features 
127. Uruguay's air transport sector has made good progress in recent years.  The inauguration in 
2009 of the new Carrasco International Airport, on e of the most modern in the region, and the 
application to it78 of the special tax regime for the tr eatment of goods for which the Ports Law 
provides (see (v)(b) below), reinforced its advant ages as a regional cargo distribution hub.  Another 
positive development was the notable increase (by more  than 60 per cent) in passenger traffic at 
Carrasco International Air port between 2005 and 2011. 
128. Uruguay has around 15 airports suitable for co mmercial operations, of which nine are 
international airports under Uruguayan law.  Th e country's main airport is Carrasco's Gral.  
Cesáreo L. Berisso International Airport (in th e Department of Canelones), which has been 
considerably expanded in recent years (see belo w).  In 2010, Carrasco International Airport 
transported some 27,395 tonnes of freight, while the number of passengers, on both domestic and 
international flights, amounted to 1.6 million, as compared with 1.1 million passengers in 2005.79  
Another major airport is the Laguna de  Sauce Airport in Punta del Este. 
129. In mid-2011, there were 15 airline companies offering scheduled domestic and international 
services in Uruguay80, in addition to which 14 freight companies, both Uruguayan and foreign, were 
also operating.81  PLUNA (Líneas Aéreas Uruguayas S. A.) is the main national airline.82  I n  
July 2007, PLUNA was partially privatized when the Leadgate consortium acquired 75 per cent of its 
shares, with the Uruguayan State retaining the remaining 25 per cent.83  Subsequently, PLUNA 
renewed its entire fleet and extende d its services to new destinations. 
(b) Regulatory framework 
Air transport services 
130. Government policy in the air transport sector is  determined by the Executive, on the advice of 
the National Civil Aviation Board created by Decr ee No. 267/006 of 15 August 2006.  The Board is 
chaired by the MTOP and consists of the Ministri es of National Defence, Foreign Affairs, Tourism 
and Sports, Economy and Finance, and Industry, En ergy and Mining, as permanent members.  The 
Board's other responsibilities include representing Urugua y in international air transport negotiations;  
intervening in the authorization of or concessions for domestic and foreign companies to provide air 
transport services and in the granting, revocation,  suspension or lapsing of authorizations and 
concessions;  developing studies, plans and programm es for the sector;  proposing measures to ensure 
                                                      
78 Under Law No. 17.555 of 18 September 2002. 
79 Between January and October 2011, a total of 1,569,700 passengers used Carrasco International 
Airport and 24,933 tonnes of freight were trans ported.  Information provided by the authorities. 
80 Online information from the National Directorate of Civil Aviation and Aeronautical 
Infrastructure (DINACIA).  Viewed at:  http ://www.dinacia.gub.uy/comp_trans_Nac_Int_enUy.asp 
[8 August 2011]. 
81 Online information from Terminal de Carg as Uruguay, S.A. (TCU).  Viewed at:  
http://www.tcu.com.uy/.  [8 August 2011]. 
82 There are other national companies such as BQ B Líneas Aéreas and Air Class (the latter only 
operates freight services). 
83 This 25 per cent is represented by the Boar d of the Autonomous Entity PLUNA.  By law, the 
percentage of the shares held by the State may not be less than 20 per cent. WT/TPR/S/263/Rev.1 Trade Policy Review 
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  the efficient and sustainable development of competition among air transport companies;  and 
evaluating compliance with the regulations  and proposing the relevant changes.84 
131. The National Directorate of Civil Aviation and Aeronautical Infrastructure (DINACIA), 
which is part of the Ministry of National Defence,  is the aeronautical authority referred to in the 
Aeronautical Code.  DINACIA is charged with th e supervision and monitoring of civil aviation in 
Uruguay, as well as with all the regulatory aspects of civil aviation, in particular with managing and 
maintaining the air traffic control services (including air safety systems), examining and proposing policies for the sector and coordinating national and in ternational plans with the other State agencies 
involved in the sector.  Its operational safety respons ibilities are laid down in Law No. 18.169 of 2009 
(see below). 
132. The regulatory framework for air transport a nd services related with the use of public and 
private aircraft in Uruguay consists mainly of the Aeronautical Code (Decree-Law No. 14.305 of 
29 November 1974), the Law on Operational Sa fety in Civil Aviation (No. 18.619 of 
23 October 2009), the Law on the Promotion of National Aviation (No. 9977 of 5 December 1940), 
the decrees of the Executive on aviation policy re gulations and the resolutions of DINACIA.
85 
133. During the review period, the Law on Operational Safety in Civil Aviation (October 2009) 
was adopted, giving DINACIA broad responsibiliti es for supervising operational safety in civil 
aviation.  These responsibilities include:  issuing ai rworthiness and air services operator certificates;  
issuing certificates or authorizations to airport op erators, maintenance and training organizations;  
issuing licences or permits to all aviation personnel;  issuing instructions on particular or sectoral 
policies and circulars on safety and any other to pic within its competence;  and carrying out 
investigations, checks and inspections of aircraft, facilities, services and persons involved in aviation 
that may be required for operational safety reasons. 
134. The Aeronautical Code declares air traffic and the transport of persons  and goods to be of 
national interest.  The Code states that the regist ration of an aircraft in the National Register of 
Aircraft confers Uruguayan nationality on that aircraft.  To apply to register their aircraft owners must 
be domiciled in Uruguay.  In cases of joint ownership, 51 per cent of the co-owners with rights 
exceeding 51 per cent of the value of the aircraft must meet the domicile requirement.  National 
companies, defined as companies established in Ur uguay with at least 51 per cent of their capital 
domiciled in the country, may only operate Uruguaya n-registered aircraft, although the aviation 
authority may permit the use of foreign-registered airc raft to ensure the provision of services or if it is 
in the national interest.  Only Uruguayan citizens are authorized to work on Uruguayan aircraft, unless 
the competent authority expressly provides otherwise. 
135. Under Law No. 18.058 of 28 November 2006 (which amended Article 113 of the 
Aeronautical Code), the Aeronautical Authority can  authorize foreign companies to provide domestic 
air services (cabotage), provided that the same right s are granted on the basis of reciprocity.  Unless 
the State operates them directly, domestic air passenger, mail and freight transport services must be 
operated under a concession or authorization. 
136. Uruguayan companies providing international tr ansport services are subject to the concession 
or authorization regime, as determined case by  case by the Executive.  Foreign companies may 
provide international air transport services within  the framework of international agreements 
concluded by Uruguay, subject to a concession or authorization granted by the Executive;  moreover, 
                                                      
84 Online information from the MTOP.  Viewed at:  http://www.mtop.uy [9 August 2011]. 
85 The texts of these instruments can be viewed  at:  http://www.dinacia.gub.uy/normativa.asp. Uruguay WT/TPR/S/263/Rev.1 
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  they must have an agent and establish domicile  for all legal purposes in Uruguay and expressly 
subject themselves to Uruguayan jurisdiction.  In the case of public international transport services, a concession or authorization granted to a foreign comp any must contain obligations at least equal to 
those imposed on domestic companies providing similar services. 
137. Uruguay has signed several international air transport agreements, including the 
Convention on International Civil Aviation (Chicago Convention) of 1944 and its various protocols of 
amendment and annexes.
86  Uruguay also participates in the Agreement on Subregional Air Services 
(Fortaleza Agreement) between Ar gentina, Brazil, Paraguay, Uruguay, the Plurinational State of 
Bolivia, Chile and Peru. 
138. Uruguay pursues a policy of open skies and concludes bilateral air services agreements with 
the maximum possible freedoms, based on reciprocity .  Uruguay has signed bilateral air services 
agreements with more than 30 countries in America, Europe, the Middle East and Africa.87  Most of 
these agreements provide for up to the fifth freedom, but some go further.  For example, the authorities have noted that Uruguay has concluded agreements to open up air traffic rights with 
Chile (ninth freedom), Paraguay (ninth freedom ), the United Arab Emirates (ninth freedom), 
United States (sixth freedom), Panama (sixth fr eedom), Dominican Republic (sixth freedom), Qatar 
and Kuwait.  Moreover, Uruguay is negotiating a broad freedoms agreement with Singapore.  In 
particular, the authorities have mentioned Uruguay' s participation in the Multilateral Open Skies 
Agreement for the Member States of the Latin  American Civil Aviation Commission (LACAC), 
which was available for signature in the Domini can Republic in November 2010.  Uruguay, like 
Chile, signed the Agreement without reservatio ns on that date and undertook to implement 
provisionally and administratively all the provisions of the Agreement from the time of signature.  The Agreement provides for the multiple designati on of airlines and designated airlines may freely 
determine the frequency and capacity of the interna tional air transport services they offer, together 
with the rates.  The Agreement provides for the gr anting of full traffic rights between States Parties 
and with third countries up to the sixth freedom, as well as the seventh freedom for exclusively freight 
services and for combined passenger and freight services;  and the right of cabotage (eighth and 
ninth freedoms).  States Parties may enter reservations.
88 
Airports and auxiliary services 
139. Airports in Uruguay belong to the State.  The management of airfields and airports, except for 
military airfields, and their supervision is the responsibility of DINACIA's Control Unit for the 
Integral Management of Airports and Airport Concessions.  The law, however, allows airport 
management concessions to be granted to private companies by invitation to tender, as in the case of 
the airports at Carrasco (Montevideo) and Laguna del Sauce (Punta del Este). 
140. In November 2003, a concession to operate airport services at Carrasco's Gral.  Cesáreo 
Berisso International Airport was granted to a priv ate consortium.  The concession was for a period of 
20 years with the option of a further ten.  In December 2009, a new terminal with a capacity of 
                                                      
86 Online information from DINACIA.  Viewed  at:  http://www.dinacia.gub.uy/download/ 
MARCO%20REGULATORIO1.pdf. 
87 Namely, the agreements with Arge ntina, Austria, Belgium, the Plurinational State of Bolivia, Brazil, 
Chile, Colombia, Costa Rica, Cuba, Denmark, Ecuador,  France, Germany, Israel, Italy, Jordan, Mexico, 
Morocco, Netherlands, Norway, Panama, Paraguay, Peru , Portugal, Romania, Russian Federation, Spain, 
Sweden, Switzerland, United Kingdom, United Stat es and the Bolivarian Republic of Venezuela. 
88 Information provided by the Uruguayan authorities. WT/TPR/S/263/Rev.1 Trade Policy Review 
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  4 million passengers a year and the latest facilities was opened at Carrasco.  A new freight terminal 
has also been built to provide logis tical services for commercial operators. 
141. Freight and logistical operations have been encouraged through the application at Carrasco 
International Airport of a special tax regime, sim ilar to that under the Ports Law, by means of Law 
No. 17.555 of 18 September 2002 and Decree No. 409/ 008 of 21 August 2008.  Under this regime, the 
Carrasco air terminal has an airport customs area  within which various value-adding logistical 
services can be supplied for goods in transit, provide d that the nature of the goods remains unchanged.  
These services include the warehousing, storage, repa ckaging, relabelling, sorting, consolidation and 
deconsolidation, splitting and handling of cargo and can be provided without having to apply to 
Customs for authorization or formal processing.  Th ere is free movement of goods within the airport 
zone and the destination of the goods that enter it can be freely changed;  moreover, the goods are not 
subject to restrictions, limitations or permits.89  All this translates into operational and customs 
advantages for the companies operating within the ai rport zone, enabling freight to be handled more 
easily and efficiently.  The volume of operations is expected to increase in the near future, with 
Carrasco Airport positioning itself as a regional freight distribution hub.90 
142. With respect to the international airports of  Rivera, Salto and Colonia, it was initially 
intended to invite the private sector to bid for ma nagement concessions.  Ho wever, in mid-2009, after 
making an assessment, the National Civil Aviation Bo ard decided to send to Parliament two draft 
laws which envisage authorizing the Executive to cont ract directly with the National Corporation for 
Development, a State agency, in order for the latte r to establish an open public limited company for 
the purpose of managing and operating the three airpor ts in question.  At the time this report was 
being prepared these draft laws were in the process of passing through Parliament.91 
143. In accordance with Decree No. 317/2003 of 4 August 2003, the prices of some services 
relating to the use of public airpor ts require approval by the Executive,  other prices must be approved 
by the Control Unit for the Integral Management of Airports and Airport Concessions, and a third category corresponds to prices fixed freely by the contractors, which must be communicated to 
and verified by the aforementioned Control Unit.  The current prices of the three categories of 
services provided at Carrasco International Ai rport appear in Resolution No. 019/10 of 
15 September 2010.
92 
144. A concession or authorization is required to engage in any commercial aviation activity, 
including the establishment of an agen cy or office for the sale of tickets.  There are no restrictions on 
domestic or foreign private participation in th e supply of auxiliary services such as aircraft 
maintenance and repair, which may be contracted abroad.  Market access without restrictions and 
national treatment apply to all auxiliary services, except navigation services, which are reserved for 
the State. 
145. Under the GATS, Uruguay did not make any commitment on air transport, but it did 
undertake commitments regarding auxiliary storage a nd warehouse services for all modes of transport.  
                                                      
89 Article 14 of Decree No. 409/008 of 21 August 2008. 
90 Revista Marítima  (2009). 
91 Information provided by the authorities. 
92 Online information from DINACIA.  Viewed  at:  http://www.dinacia.gub.uy/airports 
Concesionados.asp.  The prices applied at Laguna del Sauce Airport can also be viewed on this site. Uruguay WT/TPR/S/263/Rev.1 
 Page 157 
 
 
  These were bound with respect to market access and national treatment for the first three modes of 
supply but not for the fourth.93 
(v) Maritime transport and seaports 
(a) General features 
146. More than 85 per cent of Uruguay's exports a nd imports are transported by sea, whence the 
crucial importance of the port system for trade and the supply chain.94  Uruguay's main commercial 
ports, namely, the ports of Montevideo, Colonia a nd Sauce (on the River Plate) and Nueva Palmira, 
Fray Bentos, Salto and Paysandú (on the River Uruguay) are managed by the National Ports Authority (ANP).
95  Other public ports, mostly recreational, are managed directly by the MTOP, 
through the National Directorate of Hydrography.96  There are also some privately managed and 
operated ports, located in Nueva Palmira (Corporación Navíos and ONTUR) and in 
Fray Bentos (UPM port), and a port te rminal is being built in Carmelo. 
147. The Port of Montevideo has the most extens ive port infrastructure in the country and is 
therefore the main port of entry and exit for Ur uguay's foreign trade, handling between 35 and 45 per 
cent of cargo (without counting the import and export of  fuel via the Canal de la Teja).  Given its 
geographical position at the heart of the ME RCOSUR market and at the entrance to the 
Paraguay-Paraná River Waterway97, the Port of Montevideo is also an important regional 
transhipment hub;  out of the total cargo handled, about half involves transhipment operations, and a 
considerable proportion of these involve transhipment from or to Argentina.98 
148. The operating volume of the Port of Montevideo increased by 2.5 times during the 
last decade, faster than that of other ports in the region.  This increase was related with the growth of 
foreign trade and with the opening in 2002 of the Cuenca del Plata Terminal, which is operated by a 
private company on concession.  In 2010, tra ffic through the Port of Montevideo totalled 
672,000 TEUs handled, which earned it 19th place in the containerized traffic rankings for 
Latin America and the Caribbean.  In terms of metric  tonnes, the port handled a total of 9.1 million in 
2010.99  In the first nine months of 2011, the traffic handled amounted to 675,926 TEUs.100  
In addition to its favourable geogr aphical location, the Port of Montevideo has the advantage of a 
special tax regime for the treatment of goods (see below) and has costs and transit times that are 
                                                      
93 WTO document GATS/SC/91 of 15 April 1994. 
94 World Bank (2010). 
95 The authorities have noted that seven areas for the concession and operation of logistical services in 
Punta Sayago, in west Montevideo, will shortly come under the administration of the ANP.  In addition, the authorities are examining the feasibility of cr eating a dry port in the city of Rivera. 
96 These are the ports of Punta del Este, Piriápolis, La Paloma, Dársena de Higueritas, Puerto Viejo de 
Colonia, Atracadero Carmelo, Embarcadero Riachuelo and Reserva de Amarras. 
97 The Paraguay-Paraná River Waterway involves Argentina, Brazil, Paraguay, Uruguay and the 
Plurinational State of Bolivia in a river waterway more than 3,400 km long. 
98 The volume of cargo transhipped from or to Argentina increased from 4,000 TEUs in 2000 to 
128,000 TEUs in 2008, largely due to the shipment of refrigerated containers transporting fruit and green-leaved 
vegetables from Patagonia.  Wilmsmeier, G. (2011). 
99 Online information from CEPAL, Division of Natu ral Resources and Infrastructure, Infrastructure 
Services Unit.  Viewed at:  http://www.cepal.org/c gi-bin/getProd.asp?xml=/Transporte/noticias/noticias/ 
[11 August 2011]. 
100 Information provided by the authorities. WT/TPR/S/263/Rev.1 Trade Policy Review 
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  competitive at regional level.  Nevertheless, the growing demands of inte rnational trade and the 
competition from other major ports in the re gion mean that it faces serious challenges.101 
149. Uruguay has a fairly small merchant fleet.  In  terms of gross tonnage (GT), at the beginning 
of 2010 the Uruguayan fleet had a capacity of 109,000 tonnes, i.e. less than 1 per cent of the total 
gross tonnage of the developing countries on the American continent.102  Out of these 109,000 tonnes, 
10 per cent corresponded to oil tankers, 6.4 per cent to general cargo ships and 1.8 per cent to grain 
carriers, while most (80 per cent) corresponded to "other types of vessels" (tug boats and harbour traffic), including those devoted to the internationa l transport of passengers and vehicles.  As Uruguay 
has no container ships, a substantial part of Urugua y's foreign trade is carried by foreign-registered 
vessels. 
(b) Regulatory framework 
Maritime transport services 
150. The MTOP, through the Directorate-General of Ri ver and Maritime Trans port, is responsible 
for policy-making and for the regulation and superv ision of maritime and river transport.  The 
Ministry of National Defence, through the National Coastguard, also has responsibilities in the sector 
relating to navigation, maritime safety, pollution pr evention and the safeguarding of human life at sea. 
151. In general terms, the Uruguayan legislation on in ternational maritime transport is based on the 
principle of freedom of navigation, although there are restrictions for cabotage.  The legislation also allows for cargo reservation to be used as a mean s of promoting the nationa l merchant marine or 
offsetting restrictive measures applied by anothe r country.  However, the application of cargo 
reservation was suspended by Decree No. 31/994 of  25 January 1994.  Moreover, cargo preferences 
may be applied based on the principle of r eciprocity.  At the time this report was being 
prepared (November 2011), Uruguay was only applying pr eferences to bilateral passenger traffic with 
Argentina and cargo traffic with Brazil. 
152. The Law on Cabotage Navigation and Trade (No. 12.091 of 25 January 1954) stipulates that 
cabotage navigation and trade within Uruguay ar e reserved for Uruguayan-registered vessels.  
However, the Executive may allo w exceptions enabling vessels flying foreign flags to supply 
cabotage services when Uruguayan-registered vessels are not available.  Law No. 12.091 states that 
when a government authority issues a tender for a tr ansport service that can be provided by domestic 
cabotage in competition with foreign vessels, the form er will be granted a preference margin of 10 per 
cent on the freight. 
153. To be entitled to fly the Uruguayan flag, merchant ships must be definitively registered in the 
National Ship Register.  The Law on Merchant Sh ips (No. 16.387 of 27 June 1993) lays down the 
requirements for obtaining Uruguayan registration fro m the Merchant Marine Directorate.  Under 
Law No. 18.498 of 30 June 2009, restrictions are app lied with regard to the nationality of the crews of 
Uruguayan merchant vessels:  90 per cent of the officers (including the captain, the chief engineer and 
the radio operator) must be Uruguaya n citizens, as must not less than 90 per cent of the rest of the 
crew. 
                                                      
101 For an analysis of the potential of the Port of Montevideo to become a regional hub, see 
Wilmsmeier, G. (2011). 
102 UNCTAD (2010). Uruguay WT/TPR/S/263/Rev.1 
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  154. The Law on the Merchant Marine (Decree-La w No. 14.650 of 12 May 1977) provides tax 
incentives and other facilities for promoting the de velopment of the Uruguaya n merchant marine.  
These include exemption from all taxes on the impor t of vessels with a tonnage of more than 
1,000 tonnes and vessels which, although they may have a lower tonnage, cannot be built in Uruguay.  
In addition, Uruguayan-registered vessels are ex empt from tax on the import of spare parts, 
equipment, fuel and lubricants necessary for their op eration.  Likewise, the fuel and lubricants they 
consume are exempt from the IMESI, and shipping  companies operating with Uruguayan merchant 
ships are exempt from the IRAE and VAT, and the vessel is excluded from the wealth tax. 
155. To be eligible for the benefits of the La w on the Merchant Marine, Uruguayan-registered 
vessels that operate a route authori zed by the MTOP must meet the following requirements:  (a) if the 
owners are natural persons, they must show that  they are Uruguayan citizens and are domiciled in 
Uruguay;  and (b) if the owners are legal persons, they must show that they have their corporate 
domicile in Uruguay, that the control and mana gement of the company are in the hands of 
Uruguayan citizens, that they have a representative accredited and domiciled in the national territory 
and that they are up to date with their social a nd tax obligations.  Uruguayan-registered vessels that 
operate cabotage services within Uruguay must meet  the following conditions:  (a) if the owners are 
natural persons, they must prove their Uruguayan na tionality and domicile;  and (b) if the owner is a 
company, it must show that half plus one of its  shareholders are Uruguayan citizens domiciled in the 
country, that at least 51 per cent of the registered  voting shares are owned by Uruguayan citizens, that 
the company is controlled and managed by Uruguayans and that it is up to date with its social and tax 
obligations.103 
156. Through the Merchant Marine Promotion Fund (established by Law No. 14.100 of 
29 December 1972 and regulated by Decree-Law No. 14.650) loans can be granted for ship building and major repairs, renovation, conversion a nd modernization and for the purchase of new 
vessels (built less than 15 years previously).  The authorities have stated that no loans were granted 
during the review period. 
157. Uruguay is a signatory to various interna tional maritime transport agreements and 
conventions, including the United Nations Convention on a Code of Conduct for Liner 
Conferences (1974), the Convention on the Intern ational Maritime Organi zation (1948), and the 
International Convention for the Safety of Li fe at Sea (SOLAS) of 1974 and its protocols.
104  
At regional level, Uruguay is party to the Inter-Ame rican Convention on Facilitation of International 
Waterborne Transportation (1963) and the Paragua y-Paraná Waterway Transport Agreement and its 
additional protocols.105  This Agreement was concluded between  Argentina, Brazil, the Plurinational 
State of Bolivia, Paraguay and Uruguay with the aim of facilitating navigation and commercial river 
transport via the Paraguay-Paraná Waterway (Port of Cáceres-Port of Nueva Palmira) and reducing 
the costs of transport between the States parties.  The Agreement contains provisions on navigation, 
trade and the transport of passengers and freight al ong the Waterway, together with a regional cargo 
reservation.  Moreover, in Februa ry 1997, Uruguay and Argentina incorporated a stretch of the 
River Uruguay into the Waterway regime by means of an exchange of notes. 
                                                      
103 Article 9 of Decree-Law No. 14.650 of 12 May 1977, as amended by Article 263 of Law No. 17.296 
of 21 February 2001. 
104 A list of International Maritime Organization conv entions to which Uruguay is a signatory can be 
found at:  http://www.imo.org/About/Conventio ns/StatusOfConventions/Pages/Default.aspx. 
105 The Waterway Agreement entered into force on 13 February 1995.  It was incorporated in the 
Uruguayan legislation by Decree No. 238/993 of 26 May 1993.  The text of the Agreement can be found at:  
http://www.nuestromar.org/services/legislaci on/tratados/acuerdo_de_ transporte_fluvial. WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 160 
  
  158. Uruguay maintains a bilateral agreement for the tr ansport of reciprocal maritime cargoes with 
Brazil (1975), and a water transport agreement with Argentina which provides for the river transport 
of passengers and vehicles between the two c ountries' ports in Argentine-registered and 
Uruguayan-registered vessels, but excludes dom estic cabotage (1994).  By Law No. 18.811 of 
23 September 2011, the Uruguayan Parliament ratif ied the Uruguay-Brazil Waterway Agreement on 
the river and lake transport (Laguna Merín) of fre ight and passengers.  This Agreement reserves the 
provision of transport for vessels registered in e ither of the two countries on conditions of equality 
and reciprocity.  According to a recent study,  the bilateral agreements between MERCOSUR 
countries are having an impact on the relative competitiveness of ports and shipping services in the 
region.  In particular, the restrictions on cabotage a nd the strategies used by the shipping companies to 
cope with them partly explain the developmen t of transhipment operations in the Port of 
Montevideo.106 
Port services 
159. With the adoption of the Ports Law in 1992 (Law No. 16.246 of 8 April 1992), Uruguay 
introduced far-reaching port reforms which ended the ANP's monopoly of the provision of port 
services and instituted a special tax regime for the tr eatment of goods in the Port of Montevideo.  The 
Law states that the supply of efficient and comp etitive port services is a priority objective for 
Uruguay's development and allows port services to be provided by private companies under concessions, permits or authorizations.
107  The ports themselves continue to be State-owned. 
160. The Ports Law also redefined the role of th e ANP as the body responsible for regulating, 
administering, controlling, monitoring, maintaining and developing the infrastructure of the ports 
under its jurisdiction (see above) and advising the Ex ecutive on port-related matters.  Moreover, with 
the approval of the Executive, the ANP can also gran t concessions, permits and authorizations for the 
supply of port services or the use of port property and oversee the prices of the services that the concessionaires provide.  Concessions and authorizations are granted by means of a public or abridged tendering procedure, as the case may be.
108  Foreign providers may supply services in 
Uruguayan ports as long as they are established in Uruguay. 
161. The Ports Law permits the free movement of goods within the port customs zone without the 
need for any authorizations or formalities, as well as the free disposal of the goods, which during their 
stay in the zone are exempt from all import taxes and charges.  Goods in transit may be warehoused, 
repackaged, relabelled, sorted, gr ouped and degrouped, consolidated and deconsolidated, handled and 
split, and receive value-adding services that leave thei r nature unchanged.  They may remain in the 
port customs zone for an unlimited period.  If introdu ced into the national customs territory they are 
treated as imports and become subject to the payments and procedures applicable. 
162. The Ports Law was implemented by Decree No. 412/992 of 1 September 1992 which, among 
other things, lays down the objectives and instruments of port policy.  The sectoral legislation also 
includes the Regulation on Authorizing Companie s Providing Port Services (Decree No. 413/992 of 
1 September 1992) and its extended version (D ecree No. 105/993 of 2 March 1993), the General 
Regime for Port Services (Decree No. 57/994 of 8 Fe bruary 1994), the Regulation on Uruguayan Free 
Ports and their Relationship with the Stat e Regulatory Bodies (Decree No. 455/994 of 
6 October 1994) and the Regulation on Port Operations and Harbourmasters' Services 
                                                      
106 Wilmsmeier, G. (2011). 
107 Port services include those provided for ships, goods and passengers. 
108 The regime for granting concessions, permits and authorizations for the use of port property and 
services is set out in Decree No. 412/992 of 1 September 1992. Uruguay WT/TPR/S/263/Rev.1 
 Page 161 
 
 
  (Decree No. 183/994 of 22 April1994).  There were  no fundamental changes in the port legislation 
during the review period. 
163. The Executive establishes maximum limits on the fees paid to suppliers of port services, upon 
the recommendation of the ANP.  Within these limits th e operators then set their rates in the light of 
market conditions.  After remaining unchanged for sev eral years, the fees in dollars charged by the 
Port of Montevideo for the use of the port and for handling transh ipment containers increased by 
20 per cent in September 2011.109 
164. Given the limited size of its market, a basic objective of Uruguay's port policy has been to 
convert the Port of Montevideo into a regional freight distribution hub and port of entry for the trade 
of the landlocked countries of the region.  To this  end, investments have been made in projects to 
expand the port, including dredging works to deepen the access channel.  Efforts are also being made 
to facilitate the participation of other Uruguayan ports in the international transport network.  In this 
connection, action has been focused on capturing larger volumes of transhipment operations and 
offering, in addition to the traditional port services,  value-added logistical services that support the 
various international trade and tran sport operators.  The application of  the special tax regime for the 
treatment of goods (Ports Law) in the Port of Mont evideo since 1992 and, subsequently, in other ports 
appears to have contributed to the achievement of these objectives.  In fact, it has been noted that one 
of the main reasons for the substantial increase in traf fic in the Port of Montevideo in the last ten years 
has been the existence of the above-mentioned special regime.110 
165. Although the Port of Montevideo has benef ited from its geographical location and the 
facilities for which the Ports Law provides, as well as the major investments made in recent years, the 
anticipated increase in traffic in the basin of the River Plate in th e next few years depends on the port 
infrastructure being further improved and expande d, mainly in terms of maritime accessibility.111  
In 2010, the BID approved a loan of US$20 million to help improve the infrastructure of the Port of Montevideo.
112 
(vi) Tourism 
(a) General features 
166. Tourism plays an important part in Uruguay's ec onomy and foreign trade.  It is estimated that 
the activity accounts for about 7 per cent of GDP and 8 per cent of total employment.113  Uruguay's 
tourist industry has grown strongly in recent year s and, despite the impact of the recent global 
economic crisis, continued to expand in 2009 and 20 10, to the point of becoming the country's main 
export item, displacing meat exports, the trad itional frontrunner in terms of foreign sales. 
167. In 2010, gross revenue from t ourism (travel) amounted to US $1,496 million, equivalent to 
14 per cent of total exports of goods and services and 3.72 per cent of GDP114, while in the same year 
                                                      
109 The fees charged by the Port of Montevideo are available at:  http://www.anp.com.uy/ 
montevideo/tarifas/default.asp. 
110 World Bank (2010) and Uruguay XXI (2010). 
111 The access channel for the Port of Montevideo is no t deep enough to allow the passage of the larger 
vessels being used in ever-increasing numbers by the international shipping companies. 
112 UNCTAD (2010). 
113 Ministry of Tourism and Sports (2011a). 
114 Online information from the Ministry of Tourism and Sports.  Viewed at:  
http://www.mintur.gub.uy/images/stories/pdf/estadi sticas/2010/div_pbi2011.pdf [15 August 2011]. WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 162 
  
  outgoings were US$419 million.  Over the review period (2005-2010), Urugua y maintained a positive 
trade balance in the tourism sector, with gross revenue from tourism increasing by a factor of 
2.5 (Table I.6). 
168. In 2010, Uruguay had 2.4 million visitors (compared with 1.92 million in 2005).  In recent 
years a certain trend towards diversification of th e sources of incoming tourism has been noted, with 
an increase in the proportion of visitors from Brazil and outside the MERCOSUR area.  In 2010, the following breakdown of tourists by nationality was observed:  52.4 per cent (Argentina), 
15.7 per cent (Brazil), 14.7 per cent (Uruguayans resi dent in other countries), 10.3 per cent (rest of 
America), 6.1 per cent (Europe) and 0.9 per cent (other  countries).  In terms of tourist destinations, 
Punta del Este and Montevideo continued to attract  most visitors, with 46 per cent and 33 per cent, 
respectively.
115 
169. Although tourism in Uruguay is still closely lin ked with the arrival of people visiting the 
beach resorts in the summer season,  the situation has begun to change  with the gradual extension of 
the tourism offer to include other possibilities such as rural tourism, thermal spa tourism, circular 
tours, cruise ship tourism, conference and convention t ourism, etc.  Cruise ship tourism, in particular, 
has expanded in recent years.  During the 2010- 2011 season, 171 cruise ships arrived in Uruguay and 
disembarked 278,627 visitors who spent US$13.3 million.116 
170. The growth of tourism has been encouraged by major investment in the infrastructure at ports 
and airports in recent years, as well as by an increas e in the number of air links and flights.  Hotel 
accommodation, in which some large international ho tel groups are involved, has also improved and 
expanded. 
(b) Regulatory framework 
171. The Ministry of Tourism and Sports is res ponsible for drafting a nd implementing tourism 
policy.  Its task is to guide, stimulate, promot e, regulate, investigate and monitor tourism and 
activities and services directly related with tourism. 
172. Decree-Law No. 14.355 of 23 December 1974 contains general provisions concerning 
tourism and forms the basis for its regulation;  it is  currently being reviewed.  There are also decrees 
that specifically regulate the registration of touris m operators engaged in the various activities that 
make up the tourism sector, such as the provision of  hotel, guesthouse, travel agency, tourist guide, 
organized camping, estate agency and car rental services.117 
173. The hotel sector is governed by Law No. 13.659 of 2 June 1968, as amended by Law 
No. 17.296 of 21 February 2001 (Articles 235 to 238)  and Decree No. 210/001 of 6 June 2001.  Under 
this legislation, before they can start operating, all hotels, guesthouses, motels, apartment hotels and 
similar establishments must be authorized and regist ered by the Ministry of Tourism and Sports and 
be in possession of a municipal authorization.  The registration requirements are listed in Decree No. 210/001. 
                                                      
115 The figure does not include visitors who travel in  cruise ships or visitors who do not complete 
migration formalities at the border with Brazil.   Ministry of Tourism and Sports (2011b). 
116 Data of the Ministry of Tourism and Trans port.  Viewed at:  h ttp://www.nuestromar.org/ 
noticias/transporte_maritimo_y_fluvial/07_08_2010/32053_uruguay_evaluacion_de_la_temporada_de_cruceros [15 August 2011]. 
117 These decrees can be viewed on the website of the Ministry of Tourism and Sports at:  
http://www.mintur.gub.uy/index.php?option=co m_content&view=article&id=3&Itemid=4. Uruguay WT/TPR/S/263/Rev.1 
 Page 163 
 
 
  174. Decree No. 3/997 of 3 January 1997 lays down the regulations for travel agencies, defining 
the various types of agencies and operators and the requirements that each must meet.  To carry on 
their activities all travel agencies must first be enrolled in the Register of Tourism Operators 
maintained by the Ministry of Tourism and Sports.  All types of travel and tourist agencies must be 
domiciled in Uruguay.  Foreign travel agencies may supply services in Uruguay provided that they 
comply with the regulations in force and establish domicile in the country. 
175. There is also a registration requirement for other types of operators who carry on activities 
related with the tourism sector, such as real estate op erators, car rental operators, camp site operators, 
tourist guides, and adventure tourism, ru ral tourism and wine tourism operators.118  There are no 
differences in treatment between Urugua yan and foreign tourism operators. 
176. Recognizing the strategic importance of touris m for the national economy, the Government 
has actively supported the development of this activ ity, by adopting a series of measures, plans and 
fiscal and financial incentives.  In June 200 9, the first National Plan for Sustainable 
Tourism 2009-2020 was approved.  All the players i nvolved in the tourism industry are participating 
in this Plan, which also has the support of the BID.   The Plan establishes five strategic objectives for 
Uruguayan tourism over the next decade, namely:  (i) development of a tourism model that is 
sustainable in economic, environm ental and socio-cultural terms;  (ii) promotion of innovation, 
quality and competitiveness through associative projects and the gradual diversification of the tourism 
services provided;  (iii) improvement of the capabilities, quality of employment and commitment of the participants in the tourism system;  (iv) de velopment of marketing and promotion to expand and 
perpetuate the demand;  and (v) making tourism into a tool for social, territorial and political 
integration.  These objectives are being supplemented by specific plans for Strategic and Operational 
Marketing, Nautical River Tourism and Spa Manage ment Re-engineering, toge ther with a Strategic 
Plan for Science, Technology and Innovation. 
177. The Government has also promoted the form ation and development of clusters in the 
country's more important tourism areas, by enco uraging synergies and increased competitiveness and 
carrying out diagnostic and special studies, within a framework of public-private cooperation.  The 
Government has also developed the mark "Uruguay Na tural" as a symbol of the value added by the 
country's tourism industry and under this mark has organized campaigns for promoting tourist 
destinations, improving the quality of tour ism services and developing niche markets.
119  In 2007, 
wine tourism was declared to be of national interest (Law No. 18.088 of 5 January 2007). 
178. The tourism sector is eligible for the incen tives provided by the Law on Industrial Promotion 
(No. 14.178 of 23 March 1974) and the Investment Law (No. 16.906 of 7 January 1998).  Moreover, 
the sector benefits from the specific tax concessi ons granted by Executive Decree No. 175/003 of 
7 May 2003 and its amendments as set out in Decree No. 350/004 of 29 September 2004 (these incentives are described in Chapter III(4)(iii)).  To obtain these con cessions it is necessary to submit 
an investment project declared to be promoted unde r the Investment Law;  in addition, the potential 
beneficiaries must apply to the Ministry of Tourism in order to be declared eligible.  In 2010, the share of tourism investment (hotel activity only) in  the total amount of investments covered by the 
                                                      
118 The specific regulations applicable to these operato rs can be viewed on the website of the Ministry 
of Tourism and Sports at:  http://www.mintur.gub.uy. 
119 Decree on the use of the mark "Uruguay Natura l" in accordance with the regulations on basic 
elements of visual identification of 30 May 2002. WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 164 
  
  Investment Law was 16.3 per cent, well in excess  of the percentage recorded in 2009 (5.18 per 
cent).120  Foreign operators are given national treatment  where the granting of incentives is concerned. 
179. Tourism activities receive financial support fro m the BROU, the national development bank.  
Since 2007, the number of firms linked to the touris m sector that have received financing has almost 
tripled.  The activities receiving financial support incl ude the hotel trade, restaurants, air and land 
transport and travel agencies. 
180. Under the GATS, Uruguay undertook specific commitments in the following sectors:  hotels 
and restaurants;  travel agencies and tour-operator services;  and tourist guide services;  these were bound without limitations for modes of supply 1, 2 and 3, where market acces s and national treatment 
are concerned.
121 
 
 
                                                      
120 Ministry of Tourism and Sports (2011a). 
121 WTO document GATS/SC/91 of 15 April 1994. Uruguay WT/TPR/S/263/Rev.1 
 Page 165 
 
 
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