Uruguay WT/TPR/S/263/Rev.1 
 Page 17 
 
 
  II. TRADE AND INVESTMENT REGIME 
(1) OVERVIEW  
1. Uruguay is a founding Member of the WTO a nd an active participant in the multilateral 
trading system, including the Doha Developmen t Agenda, under which it has made numerous 
proposals both individually and together with ot her Members.  As a predominantly agricultural 
country, Uruguay has proposed that agriculture be full y integrated into the multilateral trade rules, and 
that domestic aid and export subsidies be abolished.  Since its last Review in 2006, Uruguay has not 
used the WTO dispute settlement mechanism, nor has it been involved in new disputes either as a 
respondent or a third party. 
2. Uruguay is a small, open economy and as such c onsiders that the priority objective of its 
economic and trade policies is to continue openi ng up to the world even further through regional 
integration and in conform ity with the multilateral trade rules.  It has repeatedly expressed its keen 
interest in strengthening the multilateral trading system.  Uruguay considers that a small country's 
growth and development are inexorably linked to th e expansion, diversifica tion and modernization of 
its external sector.  At the Ministerial Confer ence in Geneva in 2009, Uruguay acknowledged the role 
that the WTO has played as a rules-based trading sy stem in keeping markets open in the face of the 
global crisis. 
3. Uruguay's trade regime is largely determined by its participation in the Southern Common 
Market (MERCOSUR).  Through its participati on in MERCOSUR, Uruguay has signed preferential 
trade agreements with the Plurinational St ate of Bolivia, Chile, the Andean Community 
(Colombia, Ecuador and the Bolivarian Republic of Venezuela) and Peru, which are associate 
members of MERCOSUR.  Uruguay also has bilate ral preference agreements  with other member 
countries of the Latin American Integration Associati on (LAIA).  Of these the broadest in scope is the 
Free Trade Agreement (FTA) with Mexico, signed on 15 November 2003, which entered into force on 
15 July 2004 following the adoption of Law No. 17.766,  and covers almost all tariff headings except 
oil and motor vehicles.  A partial scope agreemen t between MERCOSUR and India and an FTA with 
Israel have entered into force since 2006.  Agr eements have also been signed between MERCOSUR 
and Egypt, and between MERCOSUR and the Southe rn African Customs Union (SACU), but have 
not yet entered into force. 
4. Generally, Uruguay is open to private (incl uding foreign) investment, and the General 
Investment Law both affords protection and guara ntees equal treatment to foreign and domestic 
investment.  Restrictions on private investment a pply only in those sectors deemed to be of national 
public interest such as fixed telecommunications, wa ter and sanitation, and specific areas of insurance 
and transport.  No prior authorization is requi red for investment, including foreign investment.  
Foreign companies may act through a branch, a subs idiary or a permanent representative office, 
subject to compliance with certain formalities.1 
5. Foreign companies' ownership of share cap ital is unlimited and may be as much as 
100 per cent.  There are no restrictions on capital infl ows or outflows, transfer of profits, dividends or 
interest.  No specific incentives ar e available for foreign investment, which is eligible for the same 
incentives as those afforded to Uruguayan investors.  Uruguay belongs to several international 
arbitration mechanisms for the settlement of investment related disputes. 
 
                                                      
1 Articles 192-198 of Companies Law No. 16.060. WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 18 
  
   
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
(i) General legal and institutional framework 
6. Uruguay is a democratic republic with separ ation of powers into the Executive, the 
Legislature and the Judiciary.  The current Constitution was approved in 1967 and amended by 
referendum on 26 November 1989, 26 November 1994, 8 December 1996 and 31 October 2004.  
Pursuant to the Constitution, the President of th e Republic acting in conjunction exercises executive 
power with the appropriate Minister or Ministers, or  with the Council of Ministers.  The President and 
Vice-President of the Republic are elected jointly and directly by the Electoral Body by an absolute 
majority of votes for a period of five years without possibility of re-election.  The Office of the 
President of the Republic is responsible for guiding,  formulating and ensuring compliance with State 
policies.2  The current President took office in March 2010.  The Council of Ministers is composed of 
the heads of the Ministries, of which there are curre ntly 13;  Ministers are appointed by the President 
and answerable to the General Assembly.3 
7. Legislative power is exercised by the bicame ral General Assembly comprising a House of 
Senators and a House of Representatives, both presi ded over by the Vice-President of the Republic.4  
The House of Senators comprises 30 members who are directly elected every five years by the people 
using a system of integral proportional representation.  The House of Representatives comprises 99 members, also directly elected for a five-year term by the people using a system of proportional representation. 
8. The legislature has two permanent commissions and a number of ad hoc commissions.  
The permanent commissions are the Standing Commission and the Administrative Commission.  The Standing Commission performs the duties conf erred upon it under the C onstitution and comprises 
four senators and seven representatives;  they are el ected on the basis of a proportional system and are 
appointed annually by their respective Houses;  the Commission is chaired by a Senator from the majority party.  The role of the Administrative Commission of the Legislature, established under 
Law No. 9.427 of 28 August 1934, as amended by Law No. 16.821 of 23 April 1997, is to administer 
all the services that assist in the legislative process.   The Commission is composed of the President of 
the General Assembly, who acts as its Chair, th ree senators, three members of the House of 
Representatives and, where relevant, one obser ver for any unrepresented minority party. 
9. Judicial power is vested in the courts as follows, in descending hierarchical order:  Supreme 
Court of Justice;  Appeals Courts;  Courts of Fi rst Instance;  Magistrate's Courts;  Small Claims 
                                                      
2 The following offices are answerable to the Offi ce of the President of the Republic:  Planning and 
Budget Office (OPP);  National Civ il Service Office (ONSC);  National Institute of Statistics (INE);  
Communications Services Regulatory Authority (URSEC);  Energy and Water Services Regulatory Authority;  
Agency for the Development of e-Government and th e Information and Knowledg e Society (AGESIC);  and 
Uruguayan International Cooperation Agency.  Vi ewed at:  http://www.presidencia.gub.uy/wps/ 
wcm/connect/presidencia/portalpresidencia /presidencia/oficinas de presidencia. 
3 The 13 Ministries are:  Ministry of National Defence (MDN), Ministry of Social Development 
(MIDES), Ministry of the Economy and Finance (MEF), Ministry of Education and Culture (MEC);  Ministry of Livestock, Agriculture and Fisheries (MGAP);  Ministry of Industry, Energy and Mining (MIEM);  Ministry of 
the Interior (MI);  Ministry of Foreign Affairs (MRREE);  Ministry of Public Health (MSP);  Ministry of Labour 
and Social Security (MTSS);  Ministry of Transport and Public Works (MTOP);  Ministry of Tourism and Sports (MTD);  and Ministry of Housing, Regional Planning and the Environment (MVOTMA). 
4 Online information from the Parliament of Uruguay.  Viewed at:  http://www0.parlamento.gub.uy/ 
palacio3/index1440.asp?e=1&w=1440. Uruguay WT/TPR/S/263/Rev.1 
 Page 19 
 
 
  Courts;  and Misdemeanour Courts.  The Supreme Court of Justice is composed of five members 
appointed by the General Assembly;  the judges in  the other courts are appointed by the Supreme 
Court of Justice.  The Appeals Courts are compo sed of three members elected by the Supreme Court 
and approved by the House of Senators or the St anding Commission.  In all there are 15 Appeals 
Courts:  (a) three Labour Appeals Courts, with juri sdiction over appeals of decisions in actions under 
labour law originating at Labour Courts of Firs t Instance in Montevideo and the Courts of 
First Instance outside the capital;  (b) seven Civil Ap peals Courts, which hear appeals in the fields of 
civil, commercial, customs, and administrative law in actions originating at the Courts of 
First Instance specializing in those fields;  (c) tw o Family Appeals Courts;  and (d) three Criminal 
Appeals Courts. 
10. The Courts of First Instance specialize in one par ticular area of law;  in Montevideo there are 
courts specializing in administrative law (3);  crimin al law (21);  civil law (20);  family law (28);  
labour law (15);  juvenile law (4);  bankruptcy law (2);  customs law (1) and emergency family 
law (4).  In the areas of criminal, labour and customs law, the material jurisdiction of the Courts of First Instance outside the capital is laid down in th e relevant special laws on those courts;  in matters 
of civil, commercial, property, family and juve nile law they have the same jurisdiction as that 
assigned to the Courts of First Instance in Montevideo  under Law No. 15.750.  They also act as courts 
of second and final instance in appeals against the rulings  of Magistrate's Courts within their territorial 
jurisdiction.  Finally, Montevideo has Small Claims Courts, Misdemeanours Courts, and Capital 
District Magistrate's Courts, whereas in the rest of  the country there are departmental Magistrate's 
Courts in the capital cities of the departments, Magi strate's Courts in towns and villages, as well as 
Rural Magistrate's Courts. 
11. Judicial proceedings are usually at two levels.  In some cases an appeal for review to the 
Supreme Court of Justice may also be allowed but only on the grounds of infringement of or error in 
the application of the rules of law.  The Uruguayan legal system is based on legal standards and even 
though rulings by a court or a judge may provide  guidance for subsequent rulings, they do not 
constitute a binding precedent.
5 
12. Additionally, the Administrative Tribunal may annul any regulation or final decision adopted 
by any State administrative authority, includin g State-owned companies in respect of which 
administrative recourse in the form of the appropria te administrative actions has been exhausted.  
The tribunal is an independent body with an adj udicatory function and is responsible for overseeing 
due process throughout the public authorities as a whole;  it is not part of the judiciary.  It hears 
applications for annulment of final administrative acts adopted by the authorities in their official 
capacity in violation of a rule of law or entailing a misuse or abuse of power.  Its jurisdiction also includes final administrative acts emanating from all bodies of the State, regional government, autonomous bodies and decentralized services.  It comprises five members elected by Parliament. 
13. In addition to the court system a conflict resolution procedure is in place essentially for 
commercial matters;  it is conducte d by private arbitration boards.
6 
                                                      
5 Uruguay XXI (2011a). 
6 This mechanism is governed by Law No. 15.982 of 18 October 1988, viewed at:  
http://www0.parlamento .gub.uy/leyes/AccesoTextoLe y.asp?Ley=15982&Anchor=;  and recourse to the 
mechanism is provided for under Law No. 18.786 of July 2011 on Public Private Partnership Contracts for the 
performance of infrastructure works and the supply of related services, viewed at:  
http://www0.parlamen to.gub.uy/leyes/AccesoTextoLe y.asp?Ley= 18 786&Anchor=. WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 20 
  
  14. Draft laws may originate in either House and may be tabled by any of their members or by the 
Executive, except for bills providing for exemptions  from taxation or laying down minimum wages or 
prices, which must be tabled by the Executive.7  Draft laws must be discussed and approved by both 
houses;  once they are approved they are referred to the Executive for enactment and subsequent 
publication.  If the Executive objects to a draft, it ma y oppose the text or comment thereon and return 
it to the General Assembly within an obligatory time-limit of ten days.  Where the Executive returns 
the draft law, the General Assembly  is convened and a decision must be taken by three fifths of the 
members present of each of the houses, who may either endorse the comments or reject them, 
retaining the draft they approved.8 
15. The Constitution has primacy in the Uruguayan lega l hierarchy, followed in descending order 
by laws, decrees and resolutions. 
16. International treaties are negotiated by the Execu tive, which forwards them to the Legislature 
for approval so that they can be ratified.  The Le gislature may approve or reject a treaty but may not 
amend or alter it.  The Ministry of Foreign Affairs is  responsible for concluding  international treaties;  
in the case of international trade treaties, negotiatio ns are conducted jointly with the Ministry of the 
Economy and Finance and with technical support from other State entities, as appropriate. 
(ii) Trade and investment policy objectives 
17. Uruguay does not have a general law governing foreign trade.  However, the Constitution 
contains provisions on trade and investment policy.  Article 50 of the Constitution provides that in the 
conduct of foreign trade, the State will protect pro duction intended for export or to replace imports.  
It also requires the law to promote investment in tended for this purpose and preferably channel public 
savings in that direction. 
18. Uruguay is a small, open economy and as such considers the priority objective of its 
economic and trade policies to be to continue ope ning up to the world even further through regional 
integration in conformity with the multilateral trad e rules.  Over the year s, Uruguay has repeatedly 
stated at the WTO that it is keenly interested in  strengthening the multilateral trading system and the 
WTO.9  At the Doha Ministerial Conference, Uruguay expressed its support for the multilateral 
system and the WTO which, with its principles of most-favoured-nation, non-discrimination and national treatment, embodies the system of multilatera l rules and disciplines that prevents unilateral 
imposition of restrictive and discriminatory measures.  It considers that the growth and development 
of a small country is inevitably linked to the expa nsion, diversification and modernization of its 
external sector.
10 
19. More recently, at the Geneva Ministerial Conf erence in 2009, Uruguay recognized the role 
that the WTO has played as a rules-based trading sy stem in keeping markets open in the face of the 
global crisis.  It said that this role was vital to  all countries, in particular a country like Uruguay 
which, with its small domestic  market, depends heavily on foreign trade for its growth and 
development.  At the Conference Uruguay stated that  the Doha Round had to be concluded as soon as 
possible to make economic multilateralism sustainabl e, otherwise there would be virtually no chance 
of eradicating hunger, combating poverty, creating decent employment and alleviating the effects of 
                                                      
7 Article 133 of the Constitution. 
8 Constitution of the Eastern Republic of Uruguay, Section VII on the Proposal, Discussion, Approval 
and Enactment of Legislation. 
9 WTO document WT/TPR/G/50 of 12 October 1998. 
10 WTO document WT/MIN(01)/ST/35 of 10 November 2001. Uruguay WT/TPR/S/263/Rev.1 
 Page 21 
 
 
  climate change.  It also reiterated the importance of ensuring that the efficient food producing 
developing countries have a fair chance to compet e in world commodity markets and that agricultural 
support policies do not unfairly distort international trade.11 
20. Uruguay, together with Argentina, Brazil and Paraguay, is a member of MERCOSUR.  Since 
it joined MERCOSUR, Uruguay's trade policy has been  to a large extent determined by the common 
policies adopted at the regional level.  MERCOSUR' s rules provide that none of the States Parties 
may apply any trade policy measure independently to goods, except in those sectors that are in the 
process of converging towards the customs union and t hose that have been granted a waiver from the 
general regime for extra and/or intra-regional trad e.  Thus, since no common policy has been agreed 
on sugar, automotive vehicles or spare parts, these sectors continue to be governed by national law 
(sugar) and bilateral agreements (automotive sector). 
(iii) Trade policy formulation and implementation 
21. The Ministry responsible for formulating and im plementing trade policy is the Ministry of the 
Economy and Finance (MEF), which works alongside th e Ministry of Foreign Affairs (MRREE) in 
international trade negotiations.  The other bodies invo lved in the public management of foreign trade 
are the Ministry of Industry, Energy and Mining (MIEM), the Ministry of Livestock, Agriculture and 
Fisheries (MGAP), the Ministry of Tourism a nd Sports (MINTUR) and the Planning and Budget 
Office (OPP).  The Institute for the Promotion of  Investment and Export of Goods and Services 
(Uruguay XXI) and the Intelligence, Trade Promotion and Investment Department of the MRREE are 
responsible for the specific area of promotional activity. 
22. The MEF, which is responsible for formulating and implementing trade policies, is also in 
charge of coordinating Uruguayan national trade pol icy with regional and international policies. 
23. The MRREE is responsible for the conduct of international policy, including trade policy, and 
therefore has the task of implementing and coordinati ng Uruguay's foreign policy in all fields.  It also 
represents Uruguay abroad, in the establishment of  relations with foreign countries, and at 
international organizations in respect of the in ternational aspects of matters entrusted to other 
Ministries.  International trade negotiations in negotiating forums such as the WTO and MERCOSUR 
are conducted in coordination with the MEF and with technical support from the relevant State 
bodies, in accordance with the guidelines laid down by the Inter ministerial Commission on 
International Trade (see below). 
24. The Inter-ministerial Commission on Intern ational Trade (CIACEX) was established in 
April 2006 and was entrusted with the responsibility of defining the country's principal lines of action 
in terms of integration in intern ational trade, international negotia tions, trade promotion, attracting 
investment and incentive mechanisms, the aim bei ng to ensure the integrity of public sector 
management in matters of inte rnational economic integration.12  It is composed of the Minister for 
Foreign Affairs, who acts as the Chair, the Minister  for the Economy and Finance, the Minister for 
Agriculture, Livestock and Fisheries, the Minister for Industry, Energy and Mining, the Minister for 
Tourism and Sports, and a representative of the OPP. 
25. Decree No. 148/010 established the Executive Secret ariat of CIACEX, the principal duties of 
which are to:  (a) advise Ministers on all matters falling within the Commission's remit;  (b) draft and submit for consideration by Ministers proposals for actions in the matters falling within the 
                                                      
11 WTO document WT/MIN(09)/ST/58 of 1 December 2009. 
12 Decree No. 101/006 and Decree No. 174/007. WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 22 
  
  Commission's remit;  (c) monitor implementation of the decisions adopted by the Commission;  and 
(d) perform any other function that the Minister s deem relevant.  The Executive Secretariat of 
CIACEX operates as part of the MRREE, from which it receives logistical, technical and administrative support for the performance of its duti es.  The Secretariat is led by an Executive 
Secretary whose principal duties are to:  (a) c oordinate and oversee the activities of the Executive 
Secretariat;  (b) participate in CIACEX meetings;  and (c) chair meetings of technical staff from the 
Ministries. 
(3) I
NVESTMENT REGIME  
26. Investment in Uruguay, including foreign investment, is governed by Law No. 16.906 of 
7 January 1998 (the Investment Law), which states that the promotion and protection of investments 
by Uruguayan and foreign investors in the national te rritory is a matter of national interest.  The law 
categorizes fiscal incentives in two groups:  genera l investment incentives, and those for specific 
investments.  Decree No. 59/998 of 4 March 1998, along with, Decrees Nos. 92/998 of 21 April 1998, 175/003 of 13 May 2003, and 455/007 of 26 November 2007, lay down the rules governing the regime for the promotion and protection of the investments provided for in the Investment Law.
13  
Of these, Decree No. 455/007 provides for the general framework and is therefore the most important 
among them. 
27. No prior authorization is required in Uruguay for either domestic or foreign investment.  
Foreign companies may act through a branch, a subs idiary or a permanent representative office.  
The form of a Uruguayan company founded by a foreign investor may be any of those provided for in 
Commercial Companies Law No. 16.060, although the most common choice is the sociedad anónima , 
(limited company), in which a foreign investor may hold up to 100 per cent of the share capital 
(see also Chapter III(4)(i)).  The financial market is  free;  no prior authorization is required for the 
entry or outflow of foreign currency.  There are no restrictions on capital inflows or outflows or on the 
transfer of profits, dividends or interest. 
28. In general, foreign investors may engage in any type of activity on the same terms as 
Uruguayan investors.  Despite the general policy of openness toward foreign investment, there are 
some areas where it is expressly precluded, namely the operation of radio and television stations;  
cabotage and domestic transport of passengers by sea or air;  and fishing within an area of 12 nautical 
miles.  In those areas where foreign investment is not precluded, foreign investors are treated as 
nationals because the Investment Law prescribes that  the investment regime must not discriminate 
between foreign investors established in Uruguay and Uruguayan investors.  Similarly, foreign 
investors are eligible for the same incentives as  Uruguayan investors (see Chapter III(4)(iii)).  
There are no restrictions on the use of foreign sta ff except in a few sectors such as fisheries, vessels 
and aircraft operating under the Uruguayan flag, in  which case staff must be Uruguayan nationals.  
Three quarters of the workforce in free zones must be resident in Uruguay. 
29. Article 32 of the Uruguayan Constitution provides th at no-one may be deprived of his right to 
property except in cases of public need or for a public  purpose as established by law, and in exchange 
for fair recompense in advance from the National Tr easury.  In the event of a dispute between an 
investor and the Uruguayan State, the matter may be  brought before the courts.  A legal stability 
regime is in place in accordance with Law No. 16.906. 
                                                      
13 Further information on Uruguay's investment regime can be found on the Internet site of the 
Uruguay XXI government agency at http://www.uru guayxxi.gub.uy.  See also Uruguay XXI (2011a). Uruguay WT/TPR/S/263/Rev.1 
 Page 23 
 
 
  30. At October 2011, Uruguay had ratified 29 agreem ents for the promotion and protection of 
investments;  it has agreements with Armenia, Australia, Belgiu m and Luxembourg, the Bolivarian 
Republic of Venezuela, Canada, Chile, China, th e Czech Republic, El Salvador, Finland, France, 
Germany, Hungary, Israel, Italy, Korea, Malaysia , Mexico, Netherlands, Panama, Poland, Portugal, 
Romania, Spain, Sweden, Switzerland, the Un ited Kingdom, the United States and Viet Nam. 
31. Treaties for the prevention of double taxation are in force with Germany (approved by 
Law No. 16.110 of 17 April 1990), and with  Hungary (approved by Law No. 16.366 of 
19 May 1993), which reduce the tax rates applicable to dividends, royalties and interest (by up to 15 per cent), and on payments by way of technical a ssistance (by up to 10 per cent).  Treaties on the 
prevention of double taxation have been ratifie d with Spain (approved by Law No. 18.730 of 
30 December 2010), and Mexico (approved by Law No . 18.645 of 19 February 2010).  A treaty with 
France on the exchange of tax information h as also been ratified (Law No. 18.722 of 
12 January 2011). 
32. Uruguay is a member of international organizations that promote investment security, for 
example, the Multilateral Investment Guarantee Ag ency (MIGA) and the International Centre for 
Settlement of Investment Disputes, who se headquarters are in the World Bank. 
33. Uruguay has several bodies that promote investme nt.  The Institute for the Promotion of 
Investment and the Export of Goods and Servic es (Uruguay XXI), aims to internationalize the 
Uruguayan economy by increasing its attractiveness to  investors and promoting Uruguayan exports.  
Uruguay XXI also seeks to promote Uruguay as a st rategic location for conducting business in the 
Southern Cone.
14  Uruguay XXI provides services to Uruguayan and foreign companies free of 
charge.  Support in the form of training and co-fi nancing of activities to increase exports is given to 
Uruguayan companies so that they can start exporti ng and/or gain access to new markets.  Foreign 
companies and investors are supported in the pr ocess of becoming established in Uruguay and are 
provided with information on conducting business in th e country.  To perform this role, Uruguay XXI 
generates and analyses information on the commercia l and economic environment in order to identify 
new markets and publicize opportunities for investment in Uruguay. 
34. Investors are also eligible to use the ser vices of the National Development Corporation 
(CND), a non-State legal person governed by publ ic law and established by Law No. 15.785 of 
4 December 1985, as amended by Law No. 18.602 of 21 September 2009.15  The terms of reference of 
the CND are to act as a licensee for public infrastructur e projects in the fields of transport, energy, 
telecommunications and any other area that may be affected with a public purpose;  it may also 
establish or acquire commercial companies or participate in trusts ( fideicomisos ) and/or syndicates 
(consorcios ) specializing in running the licences or projects awarded to it.  Pursuant to 
Law No. 18.786 of 19 July 2011, the CND has the authority to develop and promote the execution of public-private partnership projects, to draw up th e technical guidelines that apply to them, and to 
establish or acquire financial instruments and an y kind of commercial company when to do so is 
deemed necessary to improve the operation of public -private partnership projects.  The CND is also 
responsible for assisting the Executive to identify and prioritize projects capable of being executed 
using the public-private partnership system.
16 
                                                      
14 Online information from Uruguay XXI.  Viewed  at:  http://www.uruguayxxi.gub.uy/innovaportal/ 
v/39/1/innova.front/acer ca_de_uruguay_xxi.html. 
15 The capital of the CND is currently 100 per cent owned by the State, but the law allows a maximum 
of 40 per cent to be privately owned. 
16 Further information on the activities of the CND are available at:  http://www.cnd.org.uy. WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 24 
  
  35. "Uruguay Fomenta", is part of the CND;  it supplies information and advice on all 
programmes in Uruguay that provide support to production.  The Agencia Nacional de Desarrollo 
Económico  (National Economic Development Agency - ANDE), a non-State public corporation, was 
established under Law No. 18.602 of 21 September 2009;  its object is to contribute to productive 
economic development in a sustainable way that has regard to social equity, environmental stability 
and regional balance.  ANDE is en trusted with generating programme s to promote micro, small and 
medium-sized businesses, and with providing advice to the Executive on programmes and instruments 
aimed at enhancing productive economic developm ent and strengthening development capacity.  
ANDE also has the authority to design, impl ement and execute fina ncial and non-financial 
programmes and instruments to promote productive economic development in accordance with the 
strategic policy lines and the priorities laid down by  the Executive, and to est ablish investment funds 
and trusts in the course of its duties, subject to  authorization from the MEF.  At November 2011 
regulations governing the operation of ANDE were not yet in place. 
(4) INTERNATIONAL RELATIONS  
(i) World Trade Organization 
36. Uruguay is an original Member of the WTO and grants, as a minimum, MFN treatment to all 
its trading partners.  The MRREE represents Uruguay at the WTO, in coordination with the MEF.  
The WTO Agreements were ratified in Uruguay un der Law No. 16.671 of 13 December 1994;  as a 
result the Agreements became national law.  Uruguay is not a party to the WTO plurilateral 
agreements. 
37. Uruguay took part in the extended negotiations in the WTO on financial services, but did not 
participate in those on telecommunications.  As a r esult of its participation in the negotiations on 
financial services, Uruguay accepted the Fifth Protocol annexed to the GATS in 2003.17  
In March 2003, as part of the Doha Development Agenda, Uruguay submitted its initial offer to the 
Members of the Council for Trade in Services a nd in June 2005 revised its services offer. 
38. Table II.1 shows Uruguay's status regardi ng the notification requirements in the 
WTO Agreements at November 2011. 
39. During the period under review, Uruguay has not been involved in any new WTO dispute 
settlement process whether as a complain ant, a respondent or a third pa rty.  Since the establishment of 
the WTO in 1995, Uruguay has been involved in one case as a complainant, one as a defendant, and 
five as a third party.18 
Table II.1 
Summary of notifications submit ted to the WTO, November 2011 
Agreement/Decision Symbol of most recent notification Description of requirement and frequency
Agreement on Agriculture  
Article 10 and Article 18.2 G/AG/N/URY/43, 6.7. 2011 Export subsidies;  on an annual basis 
Article 18.2 G/AG/N/URY/42, 6.7.2011 Domestic support;  on an annual basis 
Article 5 and Article 18.2 G/AG/N/URY/44, 6.7. 2011 Special safeguard;  on an annual basis 
                                                      
17 WTO document S/C/W/223 of 5 May 2003. 
18 WTO documents WT/DS121/R of 25 June 1999;  WT/DS291/24, WT/DS292/18, WT/DS293/18 of 
5 March 2004;  and WT/DS/OV/24 of 15 June 2005. Uruguay WT/TPR/S/263/Rev.1 
 Page 25 
 
 
  Agreement/Decision Symbol of most recent notification Description of requirement and frequency
Agreement on Implementation of Article VI of the GATT 1994 (anti-dumping) 
Article 16.4 G/ADP/N/98, 16.7.2003 No anti-dumping actions taken;  on a 
semi-annual basis 
Article 16.5 G/ADP/N/14/Add.13 and 
G/SCM/N/18/Add.13, 18.10.2001 Investigating authority;  once only 
Article 18.5 G/ADP/N/1/URY/2/Suppl.1 and 
G/SCM/N/1/URY/1/Suppl.1, 21.12.2001 Laws and regulations;  ad hoc 
Agreement on Implementation of Articl e VII of the GATT 1994 (customs valuation) 
Annex III, paragraph 1 G/VAL/N/4/URY/2, 14.11.2001 Work programme for the application of the 
Agreement;  before the end of the period referred to in Article 20.1 
Article 22 G/VAL/N/2/URY/1, 19.4.2001  Information on implementation and 
administration of the Agreement 
Article 22 G/VAL/N/1/URY/1, 19.1.2001  Laws and regulations;  once only 
Annex III, paragraph 1 G/VAL/W/55, 22.12.1999 Delay in the application of the provisions of 
the Agreement;  before the end of the period referred to in Article 20.1 
Agreement on the Application of Sanitary and Phytosanitary Measures 
Article 7, Annex B 16 Notifications:  G/SPS/N/URY/16, 
30.11.2011 (last) Measures 
Agreement on Trade Related Aspect s of Intellectual Property Rights 
Article 4(d) IP/N/4/URY/1, 14.7.1998 MF N limitation (MERCOSUR Agreement);  
ad hoc 
Article 63.2 IP/N/1/URY/C/1 Add.1, 31.8.2004;  
IP/N/1/URY/C/7, 31.8.2004;  
IP/N/1/URY/C/6, 30.7.2002;  
IP/N/1/URY/3, 29.7.2002;  IP/N/1/URY/P/1, 14.6.2002;  
IP/N/1/URY/P/2, 14.6.2002;  
IP/N/1/URY/P/3, 14.6.2002;  IP/N/1/URY/U/1, 14.6.2002;  IP/N/1/URY/C/1, 11.6. 2002;  
IP/N/1/URY/C/2, 3.10.2001;  
IP/N/1/URY/C/3, 3.10.2001;  IP/N/1/URY/C/5, 3.10.2001;  
IP/N/1/URY/I/1, 3.10.2001;  
IP/N/1/URY/I/2, 3.10.2001;  IP/N/1/URY/I/3, 3.10.2001;  
IP/N/1/URY/I/4, 3.10.2001;  
IP/N/1/URY/C/4, 2.10.2001;  IP/N/1/URY/2/Add.1, 31.5.2000;  
IP/N/1/URY/2, 17.2.1999. Laws and regulations;  once only 
Agreement on Trade Relate d Investment Measures 
Article 6.2 G/TRIMS/N/2/Rev.3, 17.4.1998 P ublications in which TRIMS may be found; 
ad hoc 
Articles 2.9.2, 2.10.1, 5.6.2 and 5.7.1 G/TBT/N/ URY/5, 11.2.2009  Technical standards, ad hoc 
Articles 2.9.2, 2.10.1, 5.6.2 and 5.7.1 G/TBT/No tif.99/37, 11.5.1999 Technical standards, ad hoc 
Article 15.2 G/TBT/2/Add.54, 26.5.19 99 Implementation and administration 
measures;  once only 
Agreement on Import Licensing Procedures 
Article 1.4(a) G/LIC/N/1/URY/3, 25.9. 2001 Laws and regulations;  once only 
Article 1.4(a) and Article 8.2(b) G/LIC/N/1/UR Y/2, 9.2.2001 Laws and regulations;  once only 
Article 7.3 G/LIC/N/3/URY/3, 27.7.2005 Replies to questionnaire 
Article 7.3 G/LIC/N/3/URY/4, 9.10.2009 Replies to questionnaire 
Article 7.3 G/LIC/N/3/URY/5, 6.10.2011  Replies to questionnaire 
Agreement on Safeguards 
Article 12.6 G/SG/N/1/URY/1/Suppl.1, 6.4. 1999 Laws and regulations;  once only WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 26 
  
  Agreement/Decision Symbol of most recent notification Description of requirement and frequency
Agreement on Subsidies a nd Countervailing Measures 
Article 25.1 and Article XVI.1 of the 
GATT 1994 G/SCM/N/123/URY, 6.7.2005, 
G/SCM/N/128/URY, 6.7.2005 Subsidy programmes;  on a triennial basis 
for full notifications, on an annual basis for 
changes 
Article 25.11 G/SCM/N/93/A dd.1, 1.5.2003 Countervaili ng actions taken;  on a 
semi-annual basis 
Article 27.4 G/SCM/N/226/URY, 7.6.2011 y 
G/SCM/N/226/URY/Corr.1, 10.6.2011 Extension of the transition period for the 
elimination of a subsidy 
Article 32.6 G/ADP/N/1/URY/1/Suppl.2 and 
G/SCM/N/1/URY/1/Suppl.1, 21.12.2001 Laws and regulations;  once only 
Agreement on Text iles and Clothing 
Article 2.8(a) and 2.11 G/TMB/N/388, 19.2.2001 and 
G/TMB/N/388/Rev.1, 19.3.2001 Integration programmes (third stage);  
once only 
Article 2.8(b) and 2.11 G/TMB/N/403, 8.8.2001 and 
G/TMB/N/403/Add.1, 8.8.2001 Request for information on implementation 
of integration programme (second stage);  
ad hoc 
General Agreement on Trade in Services 
Article III.4 and/or  
Article IV.2 of the GATS S/ENQ/78/Rev.8, 3.11.2005 Enquiry point;  once only 
Article III.3 of the GATS S/C/N/306, 17.11.2004;  S/C/N/307, 
17.11.2004;  and S/C/N/308, 17.11.2004 Laws and regulations;  ad hoc 
General Agreement on Tariffs and Trade 1994 
Article XVII:4(a) G/STR/N/3/URY, 28.1.1998 No tification on state trading enterprises;  on 
a triennial basis for full notifications, on an 
annual basis for changes (as from 2004, on a biennial basis) 
Decision on Notification Procedures for Quantitative Restrictions 
BISD 31S/13 G/MA/NTM/QR/1/Add. 6, 20.9.1999 Notification of quantitative restrictions;  on 
a biennial basis 
Source :  WTO Secretariat . 
 
40. In the Doha Round negotiations Uruguay is a member of MERCOSUR, the Cairns Group and 
G-20.  In 2003, Uruguay notified its non-tariff trad e barriers within the framework of the Negotiating 
Group on Market Access.19  Uruguay has taken part in prepar ations for the WTO's Ministerial 
Meetings.  As a predominantly agricultural count ry, Uruguay has proposed that agriculture be fully 
integrated into the multilateral trade rules, that do mestic aid and export subsid ies be abolished and at 
the same time new market access opportunities be opened up for agricultural products.20  It is also of 
the view that the WTO must ensure  that the efficient food-producing developing countries have a fair 
chance to compete in world commodity markets an d that agricultural support policies do not unfairly 
distort international trade.21  Uruguay, together with other Members, submitted a proposal to 
strengthen the WTO to the Geneva Ministerial Conference in 2009.22 
                                                      
19 WTO document TN/MA/W/25/Add.1 of 13 May 2003. 
20 WTO documents WT/MIN(99)/ST/47 of 1 December 1999;  WT/MIN(01)/ST/35 of 
10 November 2001;  WT/MIN(03)/ST/25 of 11 September 2003;  and WT/MIN(05)/ST/150 of 
17 December 2005. 
21 WTO document WT/MIN(09)/ST/58 of 1 December 2009. 
22 WTO document WT/MIN(09)/W/1 of 16 October 2009, Strengthening the WTO  Communication 
from Australia, Brazil, Canada, China, Hong Kong Ch ina, European Communities, India, Japan, Korea, 
Malaysia, Mauritius, Mexico, Norway, South Africa,  Switzerland, Turkey, United States and Uruguay. Uruguay WT/TPR/S/263/Rev.1 
 Page 27 
 
 
  (ii) Preferential agreements 
(a) LAIA 
41. Uruguay is a member of the Latin American Integration Association (LAIA) set up in 1980 
under the Montevideo Treaty, and as such has conclu ded agreements of diffe ring scope with a number 
of member countries over the years.23  At November 2011, 32 Partial Scope Agreements and seven 
regional agreements (five of wh ich concerned preferential tariffs ) had been concluded by Uruguay 
and were in force.24 
42. On 17 August 2008, Uruguay signed Partial Sc ope Agreement (AAP.CE) No. 63 with the 
Bolivarian Republic of Venezuela within the framewo rk of LAIA agreements.  Under that agreement 
the Bolivarian Republic of Venezu ela grants Uruguay full, immediate tax exemption for exports 
falling under 220 tariff headings, mainly products such  as meat, fruit and vegetables, wools, hides, 
and certain chemical products.25  The agreement was incorporated into the Uruguayan legal order 
under Executive Decree No. 142/009 of 23 March 2009, which was published in Official Journal 
No. 27,706 of 2 April 2009 (CR/di 2908).  It was incorporated into the Venezuelan legal order in the latter stages of 2008 and entered into force fo r both countries on 3 April 2009.  The Bolivarian 
Republic of Venezuela undertook to adopt all measur es necessary to facilitate import transactions for 
the products included in the schedule of concessions .  The preferences granted by the Bolivarian 
Republic of Venezuela apply solely to products originating in Uruguay in conformity with the 
provisions of the LAIA General Regime of Or igin provided for in Resolution 252 of the 
LAIA Committee of Representatives. 
43. On 15 November 2003 Uruguay signed an FTA with Mexico.  It was incorporated into the 
Uruguayan legal order under Law No. 17.766 of 17 May 2004 and entered into force upon its 
incorporation into the Mexican legal order on 15 Ju ly 2004.  The agreement provides for a free trade 
area between both countries.  Both parties undertook to  abolish tariffs upon the entry into force of the 
agreement, with the exception of automotive products , crude petroleum and its by-products, and the 
products included in the schedule of exceptions.
26  The majority of the products appearing in 
Uruguay's schedule of exceptions remain subject to  a reduction rate (i.e. preferential margin) of 
50 per cent.  For some products, the reduction rate is higher (60, 70 or 80 per cent) and for sensitive 
products (some made-up articles, some oils, vehicl es) the reduction is zero in the majority of cases, 
and 12 per cent for a few products.27  Preference margins generally range from zero to 80 per cent.  
The agreement contains provisions on safeguards, un fair trade practices, and competition policies.  
                                                      
23 The LAIA member countries are Argentina, th e Plurinational State of Bolivia, Brazil, Chile, 
Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay and the Bolivarian Republic of Venezuela. 
24 The full list of the agreements in effect is ava ilable at:  http://www.aladi.org/nsfaladi/textacdos.nsf/ 
vpaises/uruguay. 
25 The full list of products can be viewed a t:  http://www.aladi.org/n sfaladi/ textacdos.nsf/ 
0f226c9002f6aebf03257491004226fe/9d3ae3a48c0e4385032577110054453f/$FILE/ACE%2063.doc. 
26 In the case of Uruguay, the schedule of exceptions includes products such as:  live animals;  bovine 
meat and meat of other animals;  fi sh and seafood;  milk and dairy products;  honey;  hair;  coral and similar 
materials;  natural sponges;  certain fruit, vegetables and nuts;  seeds and plant varieties;  certain grains and 
cereals;  flour, cornflour and starch;  st raw;  resins, plant extracts and materials;  animal and plant oils and fats;  
sausages;  meat and fish extracts;  sugar and sugar products;  cocoa and cocoa products;  malt extract;  
cereal-based products;  food supplements;  mineral waters;  wines, spirits, liqueurs and eaux-de-vie;  vinegar;  
oilcake and other solid residues;  animal feed;  cigarettes, cigars and tobacco;  extracts and juices;  certain textile 
materials and fibres;  clothing;  tractors, lorries and other heavy vehicles;  vehicles;  trailers;  and storage tanks. 
27 Partial Scope - Economic Complementarity Agreements, AAP.CE No. 60, Chapter III, 
Annex 3 03(4).  Schedule of Exceptions, Section B - Uruguay's Schedule of Products. WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 28 
  
  As regards services, the agreement requires each Party to grant national and most-favoured-nation 
treatment to services and service suppliers from the other Party.  Negotiations are still under way in 
respect of air transport services, governme nt procurement and financial services.28 
(b) MERCOSUR 
44. Uruguay, together with Argentina, Brazil a nd Paraguay, is a founding member of the 
Southern Common Market (MERCOSUR), establishe d in March 1991 by the Treaty of Asunción, 
with the ultimate objective of establishing a co mmon market providing for the free movement of 
goods, services, capital and labour among member countries.29  The Additional Protocol to the 
Treaty of Asunción on the Institutional Structure of MERCOSUR (Ouro Preto Protocol), signed in 
1994, gave MERCOSUR lega l personality under international law.   MERCOSUR was notified to the 
GATT for the first time in July 1992 under the Enabling Clause.30  The Bolivarian Republic of 
Venezuela signed its Protocol of Accession with the original four MERCOSUR members in July 2006;  at October 2011 this  Protocol was still in the process of being ratified by Paraguay. 
45. MERCOSUR's institutional structure, as determined by the Ouro Preto Protocol, in force 
since December 1995, provides for two types of body, categorized by the binding force of their acts:  
decision-making and non-decision-making bodies.  The former, whose decisions are binding on the 
States Parties, are as follows:  the Council of the Common Market (CMC), which acts essentially through decisions, is responsible for deepening th e integration process and achieving the objectives of 
the Treaty of Asunción;  the Common Market Group (GMC), which acts through resolutions, is the executive body responsible for monitoring implementation of the Treaty of Asunción;  and the Trade 
Commission (CCM), which issues directives, is entr usted with monitoring the application of common 
trade policy instruments and examining common trade policies related both to regional trade and trade 
with third parties.  The non-decision-making bodies are the Joint Parliamentary Commission, the Economic and Social Advisory Forum, and MERCOSUR's Administrative Secretariat. 
46. The Treaty of Asunción provides for the free movement of goods among member countries, 
with a timetable for achieving this under the Trad e Liberalization Programme.  Since 1 January 2000, 
with the exception of the sugar and automotive sectors, goods with a MERCOSUR certificate of 
origin have moved freely within MERCOSUR.  A specific deadline for integrating the sugar sector 
into common trade policy has not yet been set .  Decision CMC 56/10 provided for the MERCOSUR 
common automotive policy to be in force by 1 January 2013. 
47. The MERCOSUR Common External Tariff (CET ) has been in force since January 1995 
(see also Chapter III(2)(iv));  some exceptions  are allowed under various CMC decisions.  
Nevertheless, Decision CMC No 56/10 (on conver gence towards the customs union) established an 
ad hoc group to examine the consistency and disp ersion of the entire structure of the CET and to 
present a proposal for revision of the CET to the GMC in 2014. 
48. Decision No. 54/04, adopted in December 2004, c ontains an Agreement on the Elimination of 
the Double Levying of the CET and on the Dist ribution of Customs Revenue within MERCOSUR, 
with the finality of developing the customs union.
31  The Decision granted MERCOSUR origin status 
                                                      
28 Online information from the MRREE.  Viewed at:  http://www.mrree.gub.uy/mrree/Asuntos_ 
Economicos% 5Cum.htm. 
29 The Treaty of Asunción was in corporated into the LAIA's legal structure under Economic 
Complementarity Agreement No. 18. 
30 WTO document WT/L/127 of 7 February 1996. 
31 MERCOSUR CMC/DEC/54/04. Uruguay WT/TPR/S/263/Rev.1 
 Page 29 
 
 
  to products imported from outside MERCOSUR that co mply with the common tariff policy.  The aim 
was to achieve the free movement of goods and eliminate the double levying of CET duties.  
Under Decision CMC No 10/10, Decision 54/04 would be implemented in three stages. 
49. The first stage was implemented in Uruguay from 1 January 2006, under Decree No. 536/005 
of 26 December 2005.  It concerns goods with a zer o per cent CET rating in all the member countries 
or with a tariff preference of 100 per cent within  the framework of the agreements concluded by 
MERCOSUR with third parties.  The second stage, wh ich is expected to cover all the other goods 
subject to the CET, has not yet been implemente d, although a first step, namely the adoption of a 
MERCOSUR Customs Code, is already in place under CMC Decision No 27/10 but has yet to enter 
into force.  Full implementation of the process will require the establishment of a mechanism to 
distribute customs revenue, the interconnection of the computerized customs management systems of 
the various member States, and the establishment of the Regional Registers Database of Offenders (RIM).  In this connection, in Deci sion No. CMC 10/10 the CCM approved the Guidelines 
for Eliminating Double Levying of the C ET and for Distribution of Customs Revenue. 
50. The Protocol of Montevideo on Trade in Serv ices in MERCOSUR, signed in 1997, aims to 
liberalize services over a period of ten years.  The Protocol has been ratified by Argentina, Brazil and 
Uruguay (Law No. 17.855 of 20 December 2004) and entered into force on 7 December 2005.  Paraguay has not yet ratified the Protocol and it theref ore does not apply in its territory.  Pursuant to 
GATS Article V:7, the Protocol of Montevideo on  Trade in Services in MERCOSUR was notified to 
the Council for Trade in Services (CTS) on 5 Decemb er 2006 (S/C/N/388, and Corr.1).  The Protocol 
is of indefinite duration and its  aim is to apply the relevant services provisions of the Treaty of 
Asunción;  it establishes a programme for the liberalization of trade in services in MERCOSUR within an overall implementation period of ten year s from entry into force, i.e. it "is due to be 
completed" by December 2015. 
51. The Protocol was reviewed in the WTO Co mmittee on Regional Trade Agreements in 
September 2008.
32  The Seventh Round of Negotiations on Services Commitments concluded in 
December 2009.  Generally in Uruguay, supply under GATS mode 4 for all types of services is 
partially bound;  there are also restrictions on ma rket access for some modes of supply in relation to 
professional services and research and development services;  chartering of vessels and aircraft;  agriculture and fisheries;  postal services;  sanitation;  radio and television;  and electricity distribution, among others.  The rules also state that  insurance activities may only be engaged in either 
by sociedades anónimas  (limited companies) established in Uruguay whose shares are registered, or 
by the State Insurance Bank, the only body that may provide insurance for occupational accidents and 
industrial diseases.  Uruguay's schedule of c oncessions is available on the LAIA website.
33 
52. In order to coordinate macroeconomic policies, the Grupo de Monitoreo Macroecónomico  
(Macroeconomic Assessment Group) was set up in 2000  and is composed of representatives of the 
ministries of finance and of the central banks.34  Under Resolution GMC No. 06/10 the Common 
Market Group approved the setting up of the High- Level Meeting for Institutional Analysis of 
MERCOSUR (RANAIM), whose aim is to analyse the key institutional aspects of MERCOSUR and 
formulate proposals to deepen the process of integration and strengthen its institutions. 
                                                      
32 WTO document WT/REG/M/50 of 24 October 2008. 
33 Online information from LAIA.  Viewed at:  http://www.aladi.org/nsfaladi/nuevostemas.nsf/ 
2c617e60b2a993cb032574920060b614/51071885d11687c10325768e006039d2/$FILE/Lista%20Uruguay.doc. 
34 MERCOSUR CMC/DEC/30/00. WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 30 
  
  53. Dispute settlement is conducted pursuant to the Oli vos Protocol, in effect since January 2004.  
There are two levels:  the first level, which is adj udicatory by nature, is an ad hoc arbitration tribunal 
(TAHM);  the second is the Standing Review Tribunal.  The latter is also empowered to give consultative opinions and to act as a single level tri bunal subject to the agreement of the parties to the 
dispute.  The Olivos Protocol allows the complain ant country to choose the forum that will hear the 
dispute, whether the MERCOSUR system, the WTO dispute settlement mechanism or the forums of 
other trade preference schemes to which the individual States Parties to MERCOSUR belong.  
Once the proceedings have been initiated in one forum, they may not be heard in another. 
(c) Other regional trade agreements and initiatives 
54. Within the LAIA framework, MERCOSUR has signe d a number of agreements that contain 
provisions on rules of origin;  safeguards;  unfair trade practices;  non-tariff restrictions;  competition 
policy;  customs valuation;  technical, sanitary a nd phytosanitary measures;  export incentives;  and a 
dispute settlement mechanism (Table II.2).  Du ring the period under review, MERCOSUR member 
states have signed FTAs with Israel (in 2007, ra tified by the Uruguayan Parliament in 2008 and in 
force since 23 December 2009) and Egypt (in 2010),  and Fixed Preference Agreements with India 
(in 2004, ratified by the Uruguayan Parliament in 2009) and the Southern African Customs Union 
(SACU) which comprises Botswana, Lesotho, Na mibia, South Africa, and Swaziland (in 2008, 
ratified by Law No. 18.818 in 2011). 
Table II.2 
Framework and free trade agreements concluded by MERCOSUR, November 2011 
Agreement Date of signature/entry into force Comments 
Free trade agreements 
MERCOSUR-Chile 25 June 1996/1 October 1996 El imination of duties for at least three 
quarters of tariff lines before January 2004 
and for all tariff lines by 2014. 
MERCOSUR-Bolivia 17 December 1996/28 February  1997 Establishment of a free trade area by 
1 January 2006. 
MERCOSUR-Andean Community 16 December 2003/March 2005 Gradual establishment of a free trade area 
over a maximum transition period of 
15 years.  Calls for negotiations on services. 
MERCOSUR-Peru 30 November 2005/6 February 2006 Establishment of a free trade area over a 
maximum transition period of 15 years.  
There are in general eight reduction 
timetables (B1, B2, C1, C2, D1, D2, D3 and D4).  Products under category B1 were 
subject to an initial tariff reduction of 30% 
and subsequent annual reductions until 1 January 2012.  Products in group B2 start 
with a cut of 15%, and reductions until 
1 January 2014;  reductions for products in groups C1 and C2 until 1 January 2010 and 
1 January 2014, respectively.  Products in 
group D3 will be subject to a phase out of tariffs by 1 January 2016, and products in 
groups D2 and D4 by 1 January 2019.  The 
agreement does not cover goods produced in free zones or subject to special customs regimes. 
MERCOSUR-Israel 18 December 2007/Incorporated 
into the Uruguayan legal order under Law No. 18.339 of 21 August 2008;  
entered  into force on 23 December 2009 Applies to goods but not services.  Covers 
around 9,424 tariff lines for MERCOSUR and 8,000 lines for Israel.  There are some 
exceptions, but with conditions for their 
inclusion.  Four-pha sed tariff reduction over 
a ten-year period.  Provisions include 
bilateral safeguards,  global emergency 
measures, and dispute settlement. Uruguay WT/TPR/S/263/Rev.1 
 Page 31 
 
 
  Agreement Date of signature/entry into force Comments 
MERCOSUR-India preferential trade 
agreement 25 January 2004 (Agreement) and 
March 2005 (annexes)/June 2009) Applies to goods but not services.  Covers 
902 tariff lines.  MERCOSUR tariff preferences to India cover 452 tariff lines.  
India's tariff preferences to MERCOSUR 
cover 450 lines.  Concessions still to be finalized with preference margins rising 
from 10 or 20% to 100% for a limited group 
of products.  Provisions include preferential safeguard measures, pr ovisional safeguards, 
and dispute settlement. 
MERCOSUR-Cuba preferential trade 
agreement 21 July 2006/3 September 2008 Applies to  goods but not services.  Cuba's 
tariff preferences to MERCOSUR cover 2,700 tariff lines and MERCOSUR's to Cuba 
cover 1,200 tariff lines.  Provisions include 
origin, settlement of disputes, safeguards, technical standards and sanitary and 
phytosanitary measures. 
MERCOSUR-Arab Republic of Egypt 2 Augus t 2010/not yet in force The first stage is to draw up an agreement on 
fixed preferences as a preliminary to an 
FTA. 
Preferential trade agreement 
MERCOSUR-Southern African Customs 
Union (SACU) 15 December 2008/not yet in force The first stage is to draw up an agreement on 
fixed preferences so as to provide the 
conditions for the subsequent signature of an 
FTA. 
Framework agreements 
MERCOSUR-Mexico 5 July 2002/5 January 2006 Gra dual establishment of a free trade area;  
negotiations under way.  MERCOSUR and Mexico signed a partial scope agreement 
providing for free trade in vehicles by 2011. 
MERCOSUR-Jordan 30 June 20 08/ratified by Uruguay under 
Law No. 18.700 of 
17 November 2010/31 August 2011 Establishes the basis for negotiations leading 
to the establishment in  future of an FTA. 
MERCOSUR Morocco 26 November 2004/ratified by 
Law No. 18.369 of 
10 October 2008/29 April 2010 Establishes the basis for negotiations leading 
to the establishment in  future of an FTA. 
MERCOSUR-Turkey 30 June 2008/not yet in force The first stage is to draw up an agreement on 
fixed preferences as a preliminary to an 
FTA. 
MERCOSUR-Pakistan 20 July 2006/ratified by Uruguay under 
Law No. 18.526 of 
24 July 2009/not yet in force Establishes the basis for negotiations leading 
to the establishment in  future of an FTA. 
MERCOSUR-Arab Republic of Syria 16 December 2010/not yet in force Establishes the basis for negotiations leading 
to the establishment in  future of an FTA. 
MERCOSUR-Palestine 16 December 2010/not yet in forc e Establishes the basis for negotiations leading 
to the establishment in  future of an FTA. 
Source : Secretariat of MERCOSUR and Ministry of Foreign Affairs of Paraguay (the  depositary for MERCOSUR 
treaties and instruments of ratification).  Viewed  at:  http://www.mre.gov.py/dependencias/tratados/ 
mercosur/registro%20mercosur/mercosurprincipal.htm. 
 
55. MERCOSUR countries have also signed framework  agreements to formally set in train 
preferential trade negotiations with several count ries:  Morocco (2004);  Cooperation Council for the 
Arab States of the Gulf (United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait) 
(2005);  Pakistan (2006);  Jordan (in 2008);  Turkey (2008);  Syria (2010) and Palestine (2010).  
These Framework Agreements generally involv e the establishment of a Negotiating Committee 
involving the respective parties with a view inter alia  to exchanging information and proposing 
measures.  In addition, Memorandums of Unders tanding on the promotion of trade and investment 
have been signed by MERCOSUR members with the Republic of Korea (2009);  Singapore (2007);  Russia (2006);  Guyana (1999);  and Trinidad and Tobago (1999).  These cover, inter alia :  the 
exchange of information, the identification of ar eas of mutual interest, and measures for expanding 
trade and investment.  Negotiations on an interre gional association agreement between the European 
Union and MERCOSUR resumed during the period unde r review.  An FTA is also under negotiation WT/TPR/S/263/Rev.1 Trade Policy Review 
Page 32 
  
  with Palestine.  MERCOSUR signed a protocol on services with Chile as part of Economic 
Complementarity Agreement (ACE) No. 35 which w as incorporated into the Uruguayan legal order 
under Law No. 18.826 and negotiations are unde r way with Colombia as part of ACE 59. 
56. Uruguay is eligible for the Generalized System of Preferences of Australia, Belarus, Canada, 
the European Union, Japan, New Zealand, Norway, Russia, Switzerland, Turkey and the 
United States. 
57. As part of MERCOSUR, Uruguay is a signatory at multilateral level to the Global System of 
Trade Preferences among Developing Countries (GSTP) .  By virtue of that agreement tariff 
preferences are granted and received by the countr y members that join each round of negotiations.  
MERCOSUR took part, as a group, in the second r ound of exchanges of tariff concessions.35  
The preferences currently in effect in Uruguay pursuant to this agreement are those set out 
in Law No. 17.944 of 27 December 2005.  In December 2010 the members of the GSTP (São Paulo Round) signed a new Protocol with expanded coverage of preferences granted;  it is 
still in the process of ratification by Parliament. 
 
                                                      
35 Online information on the Global System of Trade Preferences among Developing Countries.  
Viewed at:  http://www.g77.org/gstp/#membership.