WORLD TRADE  
ORGANIZATION   
WT/TPR/M/263 
20 June 2012 
 (12-3243) 
Trade Policy Review Body 
25 and 27 April 2012  
 
 
 
TRADE POLICY REVIEW 
 
URUGUAY 
 
Minutes of the Meeting 
 
Chairperson:   H.E. Mr Eduardo Muñoz Gómez (Colombia) 
H.E. Mr Mario Matus (Chile) 
  
  Page 
 
I.  INTRODUCTORY REMARKS BY THE CHAIRPERSON 3  
II.  OPENING STATEMENT BY THE REPRESENTATIVE OF URUGUAY 5  
III.  STATEMENT BY THE DISCUSSANT 8  
IV.  STATEMENTS BY MEMBERS 11  
V.  REPLIES BY THE REPERSENTATIVE OF URUGUAY AND ADDITIONAL COMMENTS 31  
VI.  CONCLUDING REMARKS BY THE CHAIRPERSON 40  
 
 
Note:   Advance written questions by WTO Members and the replies provided by Uruguay are 
reproduced in document WT/TPR/M/263/Ad d.1 and will be available online at 
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/263 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The fourth Trade Policy Review of Uruguay was held on 25 and 27 April 2012.  
The Chairman, H.E. Eduarto Muños Gomes (Colombi a), welcomed the delegation of Uruguay led by 
H.E. Mr Álvaro Ons, Ambassador, Executive Secr etary of the Interministerial Commission on 
Foreign Trade, and the discussant, H.E. Mr Francisco Lima (El Salvador). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures of the meeting.  The report by Uruguay was contained in document WT/TPR/G/263 and that of the WTO Secretariat in document WT/TPR/S/263. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delega tion of Uruguay:  Australia, the United States, 
Trinidad and Tobago, Chile, Brazil, Colombia, th e European Union, Japan, Mexico, Costa Rica, the 
Dominican Republic, China and Canada.  The foll owing delegations had s ubmitted written questions 
after the two-week deadline:  Turkey, Indi a, Pakistan, Thailand, Peru and Ecuador. 
4. The Chairperson noted that both the report prepared by Uruguay for this Review and the 
report of the Secretariat revealed that Uruguay ha d an open trade and investment regime with few 
border restrictions and limited use of non-tariff measures.  As a small and open economy, Uruguay 
benefited from its participation in a stable multilateral system with clear rules, and had been an active 
participant in that system ever since the GATT days.  During the period under review, Uruguay had continued to focus on its main trade strategy cons isting of furthering the liberalization of trade and 
investment at both the multilateral and the regional  levels.  As far as investment was concerned, 
Uruguay was seeking to attract foreign direct  investment to support economic growth and 
employment and to promote technology transfer. 
5. In spite of the global financial crisis, Ur uguay's economic growth had been robust during 
most of the review period.  Thanks to this st rong growth, GDP per capita had doubled, and there was 
a marked decline in the poverty and unemployment rates.  The sharp growth in Uruguay's foreign 
trade had played a crucial role as a growth engi ne during the review peri od.  Uruguayan exports had 
benefited from a favourable external environment, w ith high international prices for agricultural raw 
materials and strong growth among the countries of the region. 
6. This Review provided an opportunity to excha nge reviews on matters of interest to all 
Members, including the following: 
 During the previous review of Uruguay, numerous questions had been raised 
regarding its tax regime, in particular the application and effect of certain domestic 
taxes, and it had been suggested that a number of changes should be made.  In this 
connection, the Secretariat report stated th at during the review period, Uruguay had 
embarked on an expensive tax reform invol ving a simplification of the tax structure 
and a reduction in the number of taxes, l eading to the elimination of certain import 
charges and to the modification of the Specific Internal Tax (IMESI). 
 The Chair was pleased to note that during the period under review, Uruguay had 
continued to adopt measures to streamline and computerize customs formalities and, 
according to the Secretariat report, had made considerable progress in that direction.  
The Secretariat had appropriately reco mmended that Uruguay should pursue this 
process, for example by eliminating the consular fee on imports, abolishing the mandatory use of a customs broker and simplifying registration requirements, a 
recommendation which had been echoed by various Members in their questions. WT/TPR/M/263 
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   In the previous review, Members had not ed the absence of a general law on the 
defence of competition and had welcomed Uruguay's statement that it was in the 
process of adopting legislation to that effect .  The Chair was pleased to note that the 
process had led to the adoption of the Law on Trade Freedom and the Preservation of Free Competition in July 2007.  This la w prohibited anti-competitive practices and 
abuse of dominant position and created  a new competition authority whose 
responsibilities included the regulati on of mergers and acquisitions. 
 This time, Members had asked for further information on various aspects of 
Uruguay's trade regime.  For example, rega rding measures affecting imports, they had 
raised questions concerning the relationshi p between applied tariffs and WTO-bound 
levels, non-automatic import licensing fo r certain products, import prohibition on 
used vehicles, as well as certain issues rela ting to taxes and other charges affecting 
imports. 
 Members had also requested further information concerning the process of drafting 
and notifying technical regulations.  Some  Members had urged Uruguay to review the 
restrictions applied to certain types of meat for health reasons. 
 With respect to exports, there were request s for further details regarding incentives 
programmes, in particular the plans to dismantle export subsidies in the automotive industry.  A number of Members had suggested that Uruguay might eliminate export 
taxes on hides and other agricultural products. 
 Regarding government procurement, questi ons were raised as to the possibility of 
Uruguay acceding to the Plurilateral Agreemen t on Government Procurement.  Some 
Members had asked for information on various aspects of procurement procedures, including special regimes and preferentia l programmes for the domestic industry.  
TRIPS had also been the subject of a number of questions:  for instance, on the 
system of exhaustion of rights, the protection of geographical indications, the 
responsibility of Internet services providers, and administrative and judicial procedures for enforcing rights. 
 In the services area, Member s wished to know whether Uruguay had plans to open up 
fixed telephony to competition.  They had also asked for further details concerning 
the possible participation of foreign capital in telecommunications.  With respect to 
financial services, there were questions concerning banking licences, plans to allow 
branches of foreign insurance compani es to establish themselves, and State 
guarantees for State banks.  There were also  requests for information concerning the 
regulatory framework for cross-border trade in business services.  WT/TPR/M/263 
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  II. OPENING STATEMENT BY THE REPRESENTATIVE OF URUGUAY 
7. Uruguay attaches great importance to the Trade Policy Review Mechanis m as an instrument 
for ensuring transparency and an opportunity to present to the other Members the current and future 
orientations of its trade policy within the more gene ral context of the developm ent strategy of which it 
necessarily forms part.  At the same time, we ar e demonstrating the value of the already existing 
multilateral institutions;  for even though there ma y still be plenty of room for improvement and 
consolidation, the smooth and eff ective functioning of those institutions is critical to a country like 
ours. 
8. Uruguay has a long tradition of defending the princi ple of multilateralism in general, and with 
respect to trade in particular.  We have been Me mbers of the GATT since 1953 and have participated 
actively in its institutional structures and in each of the rounds of trade negotiations.  In fact, the last 
major round of trade negotiations to have been concl uded was launched in Uruguay.  It is a source of 
pride to us that through the decades, our country's participation has exceeded what might have been 
expected from a small economy such as ours.  The ex ceptional contribution of our representatives, led 
by Ambassador Julio Lacarte Muró, to the developm ent of the multilateral trading system has been 
widely acknowledged. 
9. In the multilateral negotiations, my country has steadfastly promoted the principles of free 
trade and non-discrimination while respecting the particular conditions on  which the developing 
countries rely in order to be able  to implement their development strategies within the multilateral 
system.  Uruguay is a founding member of the Ca irns Group and joined the G-20 in 2005.  This dual 
membership reflects the priority that Uruguay gives to offensive export interests while at the same 
time bearing in mind the specificities of the developing countries. 
10. Uruguay believes that the principles of the multilateral system should apply on a par to all 
sectors of trade.  It is well known that Uruguay's main  area of interest is the agricultural negotiations.  
In particular, improved market access for agricultura l products both in the de veloped countries and in 
the developing countries, and disciplines in the area s where there is distortion of competitiveness, are 
essential to sustained growth in our country, whic h needs to develop a process for enhancing value 
addition in its agricultural and agro-industrial chai ns.  A developing country with a small economy in 
which agricultural products account for a large share of  total exports pays a heavy price in terms of 
growth and the welfare of its population for the failure to achieve progress in the Doha Round. 
11. Uruguay is firmly and unshakeably committe d to the MERCOSUR regional integration 
process.  However, this does not detract from its commitment to multilateralism.  This is not just 
empty talk:  our production is structured in su ch a way as to ensure that multilateralism and 
regionalism are complementary and absolutely necessary to our development.  It is against this backdrop, and with a firm commitment to fulfi lling our WTO obligations as the guiding principle 
behind the formulation and implementation of our trade policy, that we participate in this new review. 
12. Let me complete this opening statement with a few brief comments on the four following 
topics:  (i) macroeconomic development;  (ii) the main reforms implemented during the review 
period;  (iii) the effects of these reforms together  with the country's macroeconomic development;  
and (iv) specific considerations expressly relating to trade policy. 
13. Uruguay's macroeconomic development has been particularly remarkable, with practically 
one decade of uninterrupted growth at rates consider ably higher than it had historically experienced.  
The average growth rate for the past few year s was more than double the average rate for the 
preceding years, and indeed the preceding decades.  Thanks to a favourable international environment 
and essentially thanks to the active policies of the most recent administrations, Uruguay has been able 
to maintain sustained growth, and was even able to avoid falling back into recession in 2009, during WT/TPR/M/263 
Page 6  
 
  which, in spite of the unfavourable international climate, it was able to maintain moderate but 
significant growth. 
14. The trends for exports of goods and services a nd FDI flows followed the overall growth trend 
fairly closely - FDI, in particular, grew sharply.   Starting in 2005, there was a critical structural 
change in investment flows to Uruguay, whose shar e in GDP increased approximately three-fold over 
previous years and decades.  This is also relate d to the much consolidated macroeconomic stability 
that can be seen in a number of indicators. 
15. The inflation rate has remained in the one-digit range throughout the last decade.  In spite of 
intense inflationary pressures due to the strong growth  we have been experiencing, we have been able 
to maintain a moderate rate of inflation while significantly reducing volatility.  The country's public 
finances, with an increased primary surplus on the one hand and a reduction in the overall deficit on 
the other, also helped.  Another important fact or in this macroeconomic stability has been the 
development of Uruguay's public debt over the past few years.  The public debt's share in GDP has 
fallen considerably.  As a result, only days ago Uruguay's credit rating was returned to investment grade by the main ri sk assessment institutions.  This was merely an acknowledgement of 
what international markets had already recogn ized with respect to the stability of the 
Uruguayan Government and its unshakeable de termination to fulfil its commitments. 
16. Accordingly, throughout the review period  we introduced a considerable number of 
far-reaching reforms, some of which have already b een mentioned.  We impl emented new regulations 
to the Investment Law which provide a framework  for granting incentives on the basis of certain 
principles, namely transparency, proper targeti ng, required counterpart from the beneficiaries, 
temporariness, and stimulation of employment a nd innovation.  As recently as the beginning of this 
year, these regulations underwent a number of adjustments essentially aimed at fostering human capital enrichment, stimulating investment in research and development and innovation, and 
promoting quality employment, clean production and energy efficiency. 
17. A second far-reaching reform introduced dur ing this period was the public-private 
partnerships.  The recently introduced regime permit s private investment in public works, particularly 
in the area of transport infrastructure, energy infr astructure and social infrastructure.  Also worth 
mentioning are the Law on the Promotion and Defen ce of Competition, and the extensive reforms to 
the government procurement system that have en abled us, for example, to negotiate our first 
international government procurem ent agreements in the framework of more comprehensive trade 
agreements. 
18. Perhaps even more important among the refo rms implemented by Uruguay during the past 
decades is the tax reform, which not only brought gr eater efficiency to the tax system, but greater 
fairness as well.  Finally, on the subject of reforms re lating to the more economic side of things and to 
the allocation of economic resources, I would like to  highlight the reform of the innovation system.  
Uruguay created and put into operation the Nationa l Research and Innovation Agency on the grounds 
that in spite of the progress made over the last few years, Uruguay was still lagging behind in that 
area.  Consequently, it set up an institutional fra mework specifically designed to stimulate research 
and innovation, and hence growth. 
19. The reforms introduced during this period also notably include important social reforms, in 
particular the health care reform involving the crea tion of the Integrated National Health System, and 
a far-reaching reform of labour legislation, one  of the main components of which was the 
reintroduction of collective bargaining, i.e. wage bargaining involving the government, employers, 
and workers.  At the same time, in the general area of social reform, one of the underlying concerns of 
Uruguay's public spending and fiscal policy has been the distribution of income.  This is reflected in 
the growing share of what we call public social spending in overall public spending - in other words  WT/TPR/M/263 
 Page 7 
 
 
  health, education and housing have accounted for a growing share of total public spending in our 
country. 
20. The macroeconomic achievements in terms of gr owth combined with the reforms introduced 
throughout the period have yielded very significant r esults.  The unemployment rate fell sharply in the 
context of a rising employment rate.  Poverty was also  reduced to less than half  the rate recorded at 
the beginning of the review period, and there was an even sharper decrease in extreme poverty, which 
fell from close to 4 per cent at the beginning of the review period to less than half a per cent over the past year.  All of this has had a significant impact  on the distribution of income.  It can be said that 
during this period we have at least begun impl ementing the country's fundamental development 
objective in that we have established sustained grow th which, thanks to proactive and highly specific 
and focused policies, has been  accompanied by poverty reduction and improved distribution of 
income. 
21. On the trade policy front there have also been a number of developments.  Firstly, there were 
significant institutional changes in the way the countr y managed its trade policy, with the creation of 
the Interministerial Commission on Foreign Trade.  Responsibilities in the foreign trade area are fairly 
widely spread across the different government bodies.   The Interministerial Commission, with an 
Executive Secretary, was created to further improve the coordination of these different bodies and to enhance their capacity to draw up strategic guidelines and to implement them.  The second major institutional reform in the trade policy area wa s the modernization of the National Customs 
Directorate.  The modernization of Uruguay's customs administration already began a few years ago, with the aim of creating an administration committ ed to trade facilitation and which could act as a 
central tool in that respect without de tracting from its essential control function. 
22. Let me conclude my comments on trade policy by specifically addressing an issue that was 
the subject of many of the questions that we re ceived, namely import charges.  Uruguay significantly 
reduced its import charges in the course of the review  period.  We began in a special context in 2006, 
when we were only just recovering from what was our  deepest economic and financial crisis in 2001 
and 2002.  In responding to this crisis, Urugua y introduced very few trade policy measures.  
Among these few measures, it did set a 3 per cent im port charge and the so-called consular fee 
of 2 per cent.  In the context of a deep crisis, not only did Uruguay adopt fairly insignificant measures 
in the trade policy area, but it soon began to ph ase them out.  The process of dismantling these higher 
charges on imports began in 2006 and has mostly  been completed withou t any backtracking.  
Thus, the 3 per cent import charge has been elim inated completely, while the dismantling of the 
consular fee, which comprises the second stage of th e process, had to be temporarily suspended owing 
to problems relating to the international economic  situation in 2009.  However, its elimination 
remains among our priority trade policy objectives, and we are committed to doing so as soon as recovery of the international economy has been cons olidated.  Ultimately, what we shall be presenting 
in detail on Friday is an example of trade policy development that is fully in keeping with our 
WTO commitments. WT/TPR/M/263 
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  III. STATEMENT BY THE DISCUSSANT (H.E. MR FRANCISCO LIMA, 
EL SALVADOR) 
23. Let me begin by highlighting Uruguay's ex cellent macroeconomic performance since its 
third review in 2006.  It is no exaggeration to say that Uruguay is a success story not only at the 
Latin American level, but at the world level as we ll:  it is a small and open economy that has managed 
to maintain robust growth throughout most of the period under review (2005-2011).  Real GDP grew 
at an average annual rate of 6 per cent between  2005 and 2011.  As a result, per capita GDP doubled, 
reaching US$11,996 in 2010, a considerable achieve ment given that in times of crisis, Uruguay 
refrained from resorting to any protectionist measures. 
24. It is significant that on 3 April 2011, Uruguay r ecovered its investment grade sovereign debt 
rating which it had lost ten years earlier;  and yester day, a well-known rating agency raised that rating 
from stable to positive.  At a time when the world is experiencing an economic slowdown and 
financial turbulence, this is a significant accomplishment. 
25. There are a number of other facts regarding Uruguay that are also worth mentioning:  
according to the World Bank's Worldwide Governance Indicator 2010, Uruguay led the Political 
Stability rankings for the Latin American region;  that same year, Transparency International's 
Corruption Perception Index ranked Uruguay 24
th out of 180 and second in Latin America in terms of 
reliability and freedom from corruption;  accord ing to the World Economic Forum, Uruguay ranks 
third in the region for business competitiven ess following Chile and Brazil, and was 64th in 
the 2011 global ranking;  in the Index of Economic Freedom for 2011,  it ranked second in 
South America and 33rd in the world;  and the Legatum Prosperity Index, which measures a number of 
different variables including not only economic and quality-of-life indicators, but also health, life 
satisfaction of a country's citizens and entrepreneur ship, ranked Uruguay first in the Latin American 
region and 29th in the world in 2011. 
26. These indicators clearly reflect the years of economic prosperity that enabled substantial 
progress to be made on the social front, with povert y declining from 34.4 per cent in 2006 to 18.6 per 
cent in 2010.  Uruguay's indicators of poverty and extreme poverty are currently the lowest in 
Latin America, and according to the Gini Index it qua lifies as one of the most egalitarian countries in 
the region.  Moreover, Uruguay is currently going through a phase of rapid and sustained growth 
accompanied by an improvement in the distribution of income which, according to the Uruguayan Government, is without precedent in the last 50 years. 
27. Uruguay has introduced a number of policies aimed at achieving macroeconomic stability, 
improving the regulatory framework for the prom otion of productive investment, improving the 
profile of the public debt, developing a legislative framework to promote priv ate sector participation 
in the financing of the infrastructure works requi red to support development, continuing the tax 
reform with a view to improving fairness, boosting efficiency and stimulating investment, and promoting programmes to develop production, social policies and employment.  Uruguay needs to 
work towards maintaining the macroeconomic stab ility achieved during the review period, since in 
my view, this largely accounts for the current growth trend which, we hope, will continue. 
28. Foreign direct investment in Uruguay reached US$2,401,000,000 in 2010, or 5.9 per cent of 
GDP, a historical record for the country.  Urugua y now ranks third in Latin America in terms of 
investment as a percentage of GDP.  This can largel y be attributed to its investment regime which is 
open to private investment, including foreign invest ment, and its Investment  Law guarantees national 
treatment in that area.  It is important that this investment should be associated with production chains 
and national innovation plans which provide added value to Uruguay' s exports, thereby improving the 
country's production structure in the short and medium term.  WT/TPR/M/263 
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  29. It is interesting to note the investments in  the information and communication technology 
sectors and software development by foreign companies such as TATA, SABRE and CASU, to mention but a few.  This has had the positive extern alities effect of improving the quality standards of 
domestic companies in this sector.  Efforts have al so been made to attract investment with added 
value in areas such as biotechnology and research in the medical industry, by both domestic and 
foreign companies, such as France's Institut Past eur, which established itself in Montevideo in 2006. 
30. Nevertheless, there remain restrictions on private investment in sectors deemed to be of 
national public interest such as fixed telecommuni cations, water and sanitati on, and specific areas 
such as insurance and transport.  It is importa nt that the Uruguayan Government should indicate 
whether it intends to lift these restrictions in the n ear future, or whether it considers that they go hand 
in hand with its national development plans, combin ed with trade policies th at maintain the current 
economic indices. 
31. Although Uruguay is in a situation that many WTO Members probably envy, I do not think it 
would be out of place to urge the Uruguayan Govern ment to be cautious as it continues to strive 
towards the inflation target of 4 to 6 per cent that it has set itself, since the current rate exceeds 8 per 
cent. 
32. Uruguay is a major global exporter of food and ag ricultural raw materials (chiefly meat and 
soya), which account for 75 per cent of total g oods exports, while imports consist essentially of 
capital goods and manufactures.  Uruguay's main trading partners are the MERCOSUR countries, 
which account for a third of its foreign trade.  Othe r major partners include the European Union, the 
United States and Russia for exports, and China for im ports.  It is important that we should encourage 
the Uruguayan Government to continue its effort s towards further integration through MERCOSUR 
and to remain on the lookout for new markets to dive rsify its goods export destinations in conformity 
with its WTO commitments, and to enha nce the value added of its exports. 
33. Although Uruguay has made substantial progress in  implementing trade facilitation measures, 
chiefly through the reform of the National Custom s Directorate and the simplification of customs 
documentation, there is still room for improving certa in aspects of customs procedures:  for example, 
it could expand its risk analysis system, or reduce or unify its different registration requirements.  
At the same time, Uruguay should be encouraged to  finalize its digital Single Customs Document and 
its National Customs Code so that it can ad apt the rules in force to current reality. 
34. The implementation of the Tax Reform in Uruguay has had a far-reaching impact.  The main 
purpose was to provide a more equitable and e fficient tax system and to stimulate productive 
investment.  The corporate tax system was simplified through the elimination of a number of taxes 
and the creation of the Tax on Income from Econo mic Activities (IRAE).  The main taxes currently 
applied to companies are the IRAE and the Wealth Tax. 
35. However, the IMESI duties can be high, adding to import costs, particularly in the case of 
goods that are subject to higher tax rates such as al coholic beverages, tobacco  and petroleum products.  
At the same time, Uruguay applies VAT at a rate ranging from 22 per cent in general to 10 per cent, 
depending on the product.  Added to the IMESI, and fo r imports, to the tariff and the consular fee 
of 2 per cent of the c.i.f. value, this can signifi cantly increase the price of certain products for the 
consumer. 
36. Also worth noting is the adoption, during the review period, of the Law on the Promotion and 
Defence of Competition and its regulations in an effort to promote economic competition and prohibit 
anti-competitive practices in Uruguay. WT/TPR/M/263 
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  37. In the area of government procurement, and specifically with respect to the government 
procurement and contracting regime , Members would probably like to obtain further information from 
the Uruguayan Government on the promotion of the domestic industry by granting preference 
margins, and on the specific government procuremen t preferences for micro, small and medium-sized 
enterprises introduced in 2010. 
38. In the intellectual property area, bearing in mi nd the importance of the subject and the work 
being done by the relevant institutions, it would be useful to know what projects are under way and 
what is being done to implement legal provisions on the protection and defence of industrial property 
and copyright. 
39. The services sector is the economy's leadi ng sector, accounting for 58 per cent of GDP 
and 67 per cent of employment.  In 2010, the trade and services sector generated 390 billion pesos 
(close to US$20 billion), which represents 54 per cent of the GDP for the entire economy.  If we add to this the financial system's share, the figure exceeds US$21 billion, more than half of the GDP 
(59 per cent). 
40. The financial sector grew stronger during the period under review, achieving satisfactory 
levels of capitalization and liqui dity which enabled it to weather the recent world financial crisis 
without too much trouble.  At the same time, Uruguay maintains a State monopoly on fixed telephony, and 40 per cent of assets in  the banking sector are owned by a State bank.  Similarly, in the 
services sector, tourism and distribution and logistics services are extremely important supports for the economy. 
41. Some of the questions put forward by Members within the context of this review concern 
these issues, as well as the application of non-automa tic import licensing to certain products.  Certain 
Members would like to have further details on the way the different tax incentives work, including the 
free-zone regime.  Some of the Members' questions also concerned transparency in the preparation and notification of technical regulations and sta ndards, as well as equivalence and risk assessment.  
It is important that Uruguay report on the steps it is taking to improve its mechanism for notifying 
standards to WTO Members. 
42. Similarly, many of the Members that submitted questions asked for further information on the 
Customs Union process within MERCOSUR and trad e relations between its members, including 
matters relating to the common external tariff, cu stoms measures and import and export restrictions, 
and the establishment of common standards. 
43. Before ending, I would like to highlight the fundamental role that Uruguay has played and 
continues to play in the multilateral trading system .  Indeed, Uruguay continues to participate actively 
in the regular work of the various WTO bodies and in the Doha Round negotiations in an effort to 
strengthen the Uruguay Round disciplines.  As a country in which agriculture plays an extremely important role, Uruguay promotes the full integrati on of agriculture in the multilateral trade rules. 
44. In conclusion, although I have tried to highlight a number of areas that could be improved, it 
must be acknowledged that Uruguay stands out  as being an open economy, a country whose 
continuous efforts and concrete actions to make itself more competitive, reduce poverty and improve 
the general well-being of its population are not only evident and highly commendable, they are also 
fully in keeping with the Millennium Developm ent Goals established by the United Nations.  WT/TPR/M/263 
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  IV. STATEMENTS BY MEMBERS 
AUSTRALIA 
 
45. Australia and Uruguay cooperate closely in the WTO, particularly given our common interest 
in global agricultural trade reform, the work of th e Cairns Group and our strongly shared interest in 
the conclusion of the Doha Round.  Uruguay wa s a founding member of the Cairns Group and 
remains a key part of the push for agricultural tr ade reform, including through the hosting of the 
Cairns Group Ministerial Meeting in Punta del Es te in 2010.  We welcome Uruguay's strong and 
persistent advocacy about the importance of agricu lture as an essential component of the multilateral 
negotiating agenda. 
46. Economic and trade relations between Austra lia and Uruguay are positive and growing.  
While the trade flows between our two countries ar e small with bilateral trade at approximately 
AUD27 million in 2010-11, this has been trending up in recent years with Australian exports to 
Uruguay increasing 50 per cent on the previous year.  Uruguay's open and trade friendly policy settings, combined with its strong support for multila teral trade rules and the WTO, will continue to 
make it an attractive destination for Australian bu siness interests in the Latin American region.  
Australia looks forward to furthe r expanding its economic and trade relations with Uruguay, including 
through dialogue with MERCOSUR. 
47. Commercial links between Australia and Uruguay have been further strengthened through the 
conclusion of a Memorandum of Understanding on tr ade and investment in April 2010, and the 
creation of the Uruguay-Australia Chamber of Co mmerce in November 2011.  Australia and Uruguay 
will also soon be signing a Tax Information Excha nge Agreement and, in th is context, Australia 
would like to congratulate Uruguay on the progress it h as made during the review period in relation to 
tax transparency. 
48. Australia notes Uruguay's impressive economic gr owth in the period under review.  This 
strong record of growth over the past few years is  due in large part to Uruguay's open trade policy, 
which Uruguay maintained even in the face of the global economic downturn.  The doubling of 
Uruguay's GDP per capita during the review period is a particularly impressive achievement. 
49. The Secretariat report highlights a number of  positive developments in the period under 
review, including extensive tax reform, a marked de cline in poverty and unemployment rates, and a 
reduction and restructuring of public debt.  Like any country, there are a number of areas where Uruguay could continue to work to improv e its openness, including opening up the 
telecommunications sector to greater competition a nd providing better access for foreign insurance 
companies in the Uruguayan market. 
50. Australia also notes that the mining sector has real  potential in Uruguay.  As a country which 
continues to benefit from a strong mining sector, incl uding through high levels of foreign investment, 
Australia encourages Uruguay to pu t the necessary framework in pl ace to further develop its own 
mining sector in a socially inclusive and environmentally sustainable manner.  We look forward to a 
visit by the Uruguayan Minister for Mining to Canberra next month where we can pursue our common interests in this area.  In concluding, our overall message today is undoubtedly very positive.  
Indeed, Uruguay's solid record of economic growth in  recent years, based in large part on an open and 
sensible trade policy, provides a very good model which in our view others would do well to follow. 
UNITED STATES 
 
51. We begin our remarks today by commending Uruguay's longstanding contribution to this 
institution, a contribution that dates back to the early  days of the GATT system and is evident in many WT/TPR/M/263 
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  ways, including the positive role Uruguay has played in the DDA and its hosting of the conference 
that launched the Uruguay Round in 1986. 
52. The United States' trade relationship with Uruguay is strong, positive, and growing.  In 2006, 
the United States and Uruguay signed a bilateral inv estment treaty and in 2007 we signed a Trade and 
Investment Framework Agreement.  In 2008, we negotiated protocols on Trade Facilitation and Trade 
and the Environment.  These agreements attest to the United States' commitment to this important 
relationship, and we look forwar d to exploring potential areas of mutual interest under these 
protocols.  We also hope to identify additional areas where we can con tinue to deepen this 
relationship.  We will pursue these objectives by working through the US-Uruguay Trade and 
Investment Council, where we will seek to identify specific measures to strengthen bilateral ties and 
to coordinate efforts to sup port Uruguay's economic reforms. 
53. Our expanding trade relationship can be demonstr ated by looking at Uruguay's trade flows.  
We note the Secretariat's observation that one of the most salient features of Uruguay's trade regime during the period covered by this  review is the diversificati on of export destinations for 
Uruguayan goods, with an increased focus on countries outside MERCOSUR.  In 2011, the 
United States' two-way goods trade with Uruguay st ood at $1.5 billion.  Uruguay's exports to the 
United States are growing impressively, both overall and in key product areas such as beef, prepared 
meat, dairy, honey, and hides and skins.  Uruguay' s exports to the United States in 2011 were up more 
than 23 per cent over 2010 levels.  Uruguay's imports from the United States also have been increasing over the past several years.  In fact, in 2011 Uruguay's imports from the United States increased nearly 29 per cent over 2010 levels, signa lling solid economic growth  and greater financial 
stability. 
54. The economic data clearly shows that Urugua y is making impressive headway with its 
economic recovery in the wake of the interna tional economic crisis.  Real GDP grew by a 
robust 6.2 per cent between 2005 and 2010 and per capita GDP doubled.  At the same time, there was 
a significant drop in the poverty and unemployment rates.  As noted in the Secretariat's report, 
Uruguay has made substantial progress in fiscal consolidation and has significantly reduced and 
restructured its public debt.  In addition, comp rehensive tax reform by the Uruguayan Government 
promises to make tax administration more effi cient and reduce tax evasion.  Uruguay's strong 
economic performance along with macroeconomic stability and a supportive legal framework all 
contributed to a very favourable investment clim ate, as evidenced by incr eased foreign investment 
flows to Uruguay during the period from 2005 to 2011.  The United States would like to acknowledge 
these achievements and urge the Government of Uruguay to stay the course with an economic reform 
programme that has already shown formidable growth and stability. 
55. We welcomed the update on Uruguay's reform effo rts that was provided in the Government of 
Uruguay's report, especially in light of the polic y review being undertaken in your government to 
ensure that all of Uruguay's trade and economic policies are both supportive of development and 
compatible with its international commitments.  There are a few areas, however, where we would 
appreciate additional information during the course of this review. 
56. We note that Uruguay does not permit the impor tation of US beef and chicken meat into 
Uruguay due to the stated belief that these products are vectors for the transmission of BSE and Avian Influenza, respectively.  Given the intern ational guidelines set by the World Organisation of 
Animal Health, we would strongly urge Uruguay to consider other measures to address its concerns. 
57. We note that Uruguay is not a party to the WT O Agreement on Government Procurement, nor 
is it an observer to the WTO Committee on Government Procurement.  In light of the revision of the 
Government Procurement Agreement that was adopted  last month, which will facilitate accession to  WT/TPR/M/263 
 Page 13 
 
 
  the GPA, and the benefits that could accrue to Uruguay from GPA membership, we would urge 
Uruguay to consider acceding to the WTO GPA. 
58. We commend Uruguay for its efforts to streamline and computerize customs formalities, 
which have formed part of its strategy of in ternational integration a nd improved conditions for 
competitiveness.  We encourage Uruguay to continue w ith such efforts as well as additional reform in 
the areas noted by the Secretariat, including elimination of the 2 per cent consular fee for imports. 
59. In closing, the United States again wants to acknowledge Uruguay's important and positive 
contributions to this institution.  We look forward to our continued close cooperation with Uruguay in 
the future, both bilaterally and in the WTO.  We  also look forward to continued work with Uruguay 
and other WTO Members to continue to explore ways to strengthen the global economy and support 
the rules-based multilateral trading system embodied by the WTO. 
TRINIDAD AND TOBAGO 
 
60. Trinidad and Tobago has a good and long-standing relationship with Uruguay since 
establishing diplomatic relations in 1982.  Since that  time the intensity of our relations has generally 
been modest, however we have managed to re main active partners in the Organization of 
American States and to some extent in the Un ited Nations organizations to which we are both 
Members. 
61. At present, there is minimal trade between Tr inidad and Tobago and Uruguay.  Prior to 2010, 
Trinidad and Tobago recorded a negative trade ba lances with our Latin American trade partner.  
We are nevertheless desirous of intensifying trade fl ows between the two countries in the future.  It is 
for this reason that my delegation is encouraged  by Uruguay's record of stable macroeconomic 
performance over the period of review.  Specifica lly, we are pleased to note that poverty has 
decreased, unemployment fell to its lowest historical rate, and that the average GDP growth rate also 
exceeded Uruguay's historical averages.  The country's debt management and fiscal consolidation efforts in the wake of the international fi nancial crisis are also to be applauded. 
62. My delegation also wishes to congratulate Uruguay's efforts to strengthen its competition 
policy, specifically with respect to the adoption of the Law on Trade Freedom  and the Preservation of 
Free Competition.  We also note with pleasure its customs reform efforts aimed at improved trade facilitation.  We believe that potential opportu nities exist to expand bilateral trade between 
Trinidad and Tobago and Uruguay.  Realizing this  potential can be facilitated by closer regional 
economic relations between CA RICOM, of which Trinidad and Tobago is a member, and 
MERCOSUR, to which Uruguay belongs.  It is our h ope that this engagement will take place in the 
not too distant future. 
CHILE 
 
63. Chile considers Uruguay to be an extremely important trading partner.  We appreciate 
Uruguay's macroeconomic achievements over the last decade and its contributions to this 
Organization.  Trade between the two countri es is governed by Economic Complementarity 
Agreement No. 35 which was signed in the context of MERCOSUR and entered into force in 1996.  
As a result of this Agreement, close to 98 per cent of products traded enjoy tariff preferences. 
64. Economic and trade relations between Chile and Uruguay are currently flourishing, as 
evidenced by the recent surg e in mutually beneficial agreements.  The first quarter of 2012 saw the 
entry into force of the Agreement on Investment as well as the Agreement on Trade in Services in the 
framework of the Economic Complementarity  Agreement between Chile and MERCOSUR, 
ECA No. 35.  On the investment front, as of  December 2011 Uruguay ranked sixth among countries WT/TPR/M/263 
Page 14  
 
  receiving direct investment from Chile.  During the period from 1990 to 2011, the 
Uruguayan economy received 1.652 billion US dollars' worth of investment from some 60 Chilean companies.  Moreover, the Government Procur ement Agreement between  Chile and Uruguay is 
expected to enter into force rapidly once th e Uruguayan Parliament has completed the legal 
formalities. 
65. These Agreements are the result both of ECA No. 35 between Chile and MERCOSUR and 
direct relations through the Bilateral Commission on  Trade and Investment.  Chile and Uruguay are 
both committed to continuing, through this forum, to  seek ways of expanding bilateral trade.  In 2011, 
bilateral trade reached US$332.8 million. 
66. In the WTO, as participants in  the Cairns Group and the agri cultural G-20 we have similar 
visions with respect to the reform of internationa l agricultural trade, and we  work closely with the 
Uruguayan delegation and other dele gations to that end.  Meanwhile, the Chile-Uruguay Business 
Advisory Council has continued its work over the p ast year, with meetings both in Santiago and in 
Montevideo. 
BRAZIL 
 
67. Brazil is proud to be one of the most importa nt partners of Uruguay both in trade and in 
investment.  This exercise takes place at a pa rticularly positive moment for Uruguay's economy.  
In the 2006-10 period GDP has grown at an average rate of 6.2 per cent yearly, ranking the country among the healthiest economies in the region.  Ur uguay has been able to  face the global economic 
crisis of 2008 with limited domestic effects.  De mand and prices for its exports remained relatively 
strong since the last TPR, in 2006. 
68. Economic dynamism has been coupled with so lid improvements in social indicators:  
unemployment rate fell sharply between 2006 and 2011, from almost 11 per cent to nearly 6 per cent.  
During the same period, income inequality, as measured by the Gini index, has decreased 
from 0.45 to 0.42.  GDP per capita doubled in the period and reached almost US$12,000 in 2010, one 
of the highest in Latin America. 
69. Uruguay's economy is a good example of openness to trade and investment.  Trade in goods 
and services accounted for 50.9 per cent of GDP in 2010, while FDI grew five-fold between 2005 
and 2010, according to the report presented by the Government of Uruguay. 
70. Uruguay has a long-standing commitment to preserving and strengthening the international 
trading system embodied in the rules of the WTO.   It is precisely that commitment that gives 
Uruguay legitimacy and credibility in the Doha Round negotiations. 
71. At the regional level, Uruguay and Braz il are both members of MERCOSUR, the 
South American trading block set up in March 1991.  In the period under review, trade volume 
between Uruguay and other Members of MERCOSUR has more than duplicated, surpassing the level 
of US$6.5 billion in 2011. 
72. Under the framework of MERCOSUR, a sp ecial fund was established in 2006:  
FOCEM - The Structural Convergence Fund of ME RCOSUR.  It finances programmes aimed at 
integrating infra-structure among member countries and thereby increasing competitiveness of their 
economies.  During the first five years of operati on, nine projects presented by Uruguay have been 
approved, amounting to approximately US$2 00 million.  Funding by FOCEM matches 
non-refundable finance contributions with national di sbursements by recipient countries.  Financings 
already approved include infra-structure projects such as electricity transmission lines, railway 
revitalization as well as roads construction and revita lization.  Other projects are aimed at enhancing  WT/TPR/M/263 
 Page 15 
 
 
  the competitiveness of small and medium enterprises in  strategic sectors, and also at promoting social 
inclusion programmes in border areas. 
73. Turning now to bilateral trade, Uruguay and Br azil have further developed their economic ties 
over the past few years.  Trade flows between  Uruguay and Brazil have reached US$3.9 billion 
in 2011.  This is an increase of 26 per cent over th e previous year.  Approximately 20 per cent of the 
exports from Uruguay had Brazil as a destination.  Brazil is the main market for Uruguayan products 
abroad, and also the main exporter to Uruguay. 
74. Both countries have established a bilateral tr ade monitoring commission, which allows for 
regular meetings among experts from the relevant areas of the governments.  The work of the 
commission has been instrumental in  expediting solutions for important trade issues.  It has also been 
very useful in identifying new opportunities for expanding and diversifyi ng bilateral trade.  
The Governments of Uruguay and Brazil are current ly working on initiatives related to industrial 
complementation and scientific and technological cooperation.  Another area of convergence is 
infrastructure integration, as mentioned. 
75. For their part, Brazilian companies see Uruguay as a business-friendly partner and have 
invested there accordingly.  We highlight the presence of Brazilian companies in the food processing 
and agricultural sectors, as well as in oil and gas,  plastics and packaging, beverage, steel, among 
others.  In the industrial segment, such investment s have helped promoting Uruguayan exports.  Brazil 
views this trend as encouraging,  since it will increase the proportion of manufactured exports from 
Uruguay. 
COLOMBIA 
 
76. During the review period, the Uruguayan economy distinguished itself in two areas in 
particular.  Firstly, it grew considerably, at a rate exceeding 6 per cent, doubling the country's 
per capita GDP, which reached almost US$12,000 in 2010.  While Uruguay was not spared the 
problems that accompanied the economic crisis of 2009, it was able to overcome them rapidly.  
Foreign investment flows quintupled between 2005 a nd 2010 from a little more than US$2.8 billion 
to US$14.83 billion.  Just as importantly, Uruguay' s foreign trade doubled du ring the same period, 
increasing from a little over US$7.2 billion to more than US$15.3 billion. 
77. Over the past few years, the services sector  has been a driving force of the Uruguayan 
economy, in particular tourism, which now accounts fo r 7 per cent of GDP and helped to alleviate the 
difficulties of 2009.  New services support policies will no doubt contribute to maintaining this 
outstanding performance. 
78. At the same time, this grow th was accompanied by a sharp reduction in the poverty rate, 
which fell by almost half - from 34.4 per cent in 20 06 to 18.6 per cent in 2010.  There was also an 
unprecedented fall in the unemployment rate duri ng the same period (from 12 per cent to 6.4 per 
cent), while inflation remained under control at be low 7 per cent, with the result that there was a 
recovery in real income of the population.  It is in this area that Uruguay's successful economic 
performance was most felt during the review period.  As the report stresses, Uruguay has become one 
of the most equitable societies of Latin America. 
79. In 2010, Uruguayan exports totalled US$7. 03 billion, while imports reached 
US$8.315 billion, with trade as a whole accounting for 50 per cent of GDP.  The vigorous growth in exports was helped by strong agricultural raw material  prices.  It should be noted that over the past 
five years, the share of agricultural products in total exports increased by 10 percentage points, while 
exports of manufactured goods declined slightly, w ith the result that the Uruguayan economy will be WT/TPR/M/263 
Page 16  
 
  more exposed to food price fluctuations in the future .  At the same time, the free zones have played a 
growing role in the country's foreign trade:  they now account for 12 per cent of exports. 
80. Uruguay is a member of MERCOSUR, and much of its foreign trade structure has been 
developed as a function of the MERCOSUR integration process.  It is therefore no surprise that over the last five years, this subregional market (inc luding Brazil) has acquired a certain importance as a 
destination for Uruguayan exports.  Uruguay's relations with Colombia rest on Economic 
Complementarity Agreement No. 59, whose impact on bilateral trade has generally been limited.  
Both Governments are taking steps to develop that trade. 
81. We note that Uruguay is continuing to make pr ogress on trade facilitation by modernizing and 
streamlining its customs formalities.  In particular , it has moved forward with the development of the 
platform for the implementation of the digital Si ngle Customs Documents, although more can still be 
done in that area. 
82. Speaking to the Academy of Economics in 2010, fo rmer President Tabaré Vázquez stated that 
"… protectionism is to trade what authoritarianism is to democracy.  And since democracy is a common language that we Uruguayans have adopted, we as well (without exception, each in our own 
way) can help to create the conditions for a multilatera l trading system that is more open and fairer for 
everyone."  A multilateral trading system strengthe ned by a successful conclusion of the Doha Round 
would unquestionably be an excellent common lan guage for interpreting and solving the problems 
currently facing the world economy, and for working together to find ways of pursuing development 
while respecting our individual identities. 
EUROPEAN UNION 
 
83. The EU has important relations  with Uruguay, both bilaterally and regionally under the 
MERCOSUR framework.  We have smooth trade rela tions and great convergence on global issues.  
Bilaterally, the EU is the first investor in Ur uguay and country's second trade partner in 2010, our 
bilateral trade amounted to €2.3 billion,  with potential for further growth. 
84. Regionally, Uruguay is party to the MERCO SUR and engaged in a regional economic 
integration agenda.  As a strong believer in regional integration, the EU supports and encourages full 
and timely implementation of MERCOSUR regional in tegration processes, despite the difficulties that 
we can observe.  In this context, let me also touch upon the ongoing negotiations of a wide-ranging 
region to region EU-MERCOSUR Asso ciation Agreement, which will also result in the creation of a 
vast free trade area.  This agreement should prov ide a boost to regional trade integration among the 
countries of MERCOSUR and stimulate new opportun ities for trade with the EU by removing tariff 
and non-tariff barriers to trade.  A MERCOSUR-EU  Association Agreement would cover not just 
goods, services, and investment, but also important tr ade-related issues such as public procurement, 
intellectual property rights, technical barriers to trade, and sanitary and phytosanitary issues. 
85. Uruguay has since its last TPR in 2006 rema ined committed to its open, business-friendly 
trade and investment policy.  It has experienced outstanding economic growth over the last decade.  
However, like many other countries, also Uruguay was affected by the global financial and economic 
crisis of 2009.  Thanks to prudent macroeconom ic management over the past few years, Uruguay 
appears to have weathered this downturn better than  many other countries.  Continued efforts are of 
course necessary, but the annual GDP growth rate of 8.5 per cent in 2010, accompanied by growing 
exports and positive socio-economic indicators are impor tant signs of sustainable recovery.  We also 
commend Uruguay for not resorting to any protectionist measures despite the downturn and the 
moves of some of its neighbours.  WT/TPR/M/263 
 Page 17 
 
 
  86. There have been important trade -related developments since the last TPR in 2006, outlined in 
both reports presented for today's meeting.  Wide-ra nging tax reform is one of the most important 
ones in such list, aimed at simplifying the tax st ructure, reducing the number of taxes and making the 
tax administration more efficient.  However, we en courage Uruguay to continue its efforts further in 
addressing the distinction made between imports a nd domestic products in applying certain internal 
taxes, namely VAT and special consumption tax IMESI. 
87. Uruguay's successful trade facilitation efforts in streamlining and modernising the customs 
procedures - some of which are still work in progress - are equally worth highlighting.  In this context, 
we encourage Uruguay to consider the conclusion in  WTO Secretariat's report to consolidate this 
process by easing its registration requirements and eliminating the consular fees on imports.  
The EU also invites Uruguay to consider removi ng the mandatory requirement for customs brokers.  
In general, Uruguay's efforts to facilitate trade a nd make better use of info rmation technology could 
be complemented by concluding trade facilita tion negotiations at the WTO as soon as possible. 
88. The EU would also like to commend Uruguay for introducing the Law on Promotion and 
Defence of Competition, which in addition to se tting relevant regulations also created a new 
Competition authority, in place since 2009 (A Commission for the Promotion and Defence of 
Competition).  We encourage Uruguay to continue with ongoing institutional and legislative reform 
efforts, including effective impl ementation of its legislation. 
89. Despite Uruguay's generally open trade regime and important trade re lated developments 
since the last review also concerns remain.  We  have addressed a number of these in detail in our 
advance written questions and would thus hereby refer only to few such  issues.  I would first like to 
raise intellectual property rights and enforcem ent.  We welcome Uruguay's accession to the 
WIPO Copyright Treaty and to the WIPO Performances and Phonograms Treaty.  At the same time, we invite Uruguay to tackle the counterfeiting a nd infringement of different goods by enforcing 
effectively IPRs legislation and joining WIPO treaties on patent and on trademarks. 
90. Secondly, the EU would like to refer to Ur uguay's import ban, on bovine meat and meat 
products from the EU due to BSE, in place since 2002 .  Such ban is not in line with the relevant 
international standard of the World Organisa tion for Animal Health.  We call on Uruguay to 
immediately lift all import bans from the EU by fully aligning its measures with the relevant OIE recommendations, or to present a scien tific justification for not doing so. 
91. In conclusion, let me just reiterate that the EU has a close, long-standing relationship with 
Uruguay, which we value greatly.  We acknowledge the country for the progress it has made since the 
last Review on several fronts.  And we encourag e it to continue with its domestic, regional and 
multilateral efforts to facilitate trade, increase inward  investment, and grow its economy in a 
sustainable way.  The EU remains confident that at Uruguay's next TPR, we will see further progress. 
JAPAN 
 92. Let me start with Uruguay's macroeconomic environment.  Uruguay has maintained robust 
and sound economic development.  Its GDP growth  rate was recorded at 6.2 per cent per annum 
during 2005-10 in spite of the globa l financial crisis.  This devel opment has resulted in substantial 
improvement in disparity of the redistributio n of income, namely, the poverty rate dropped 
from 34.4 per cent in 2006 to 18.6 per cent in 2010.   The tax reform implemented in 2007 has 
contributed not only to the simplification of the tax st ructure but also to the reduction of public debt.  
Japan highly appreciates these efforts to ensure a sound and stable economy and expects Uruguay to 
further develop macroeconomic policy in this direction. WT/TPR/M/263 
Page 18  
 
  93. Japan also considers that this economic deve lopment was achieved thanks to its trade and 
investment policy.  Uruguay has given priority to  liberal and open trade in its economic policies and 
regimes.  Its active role in the multilateral trade system cannot be overemphasized to WTO Members.  
But today let me comment on some specific trade and trade-related policies. 
94. Firstly, Japan appreciates the investment policy of Uruguay which encourages FDI as well as 
domestic investment.  According to the Secretaria t's report, the Investme nt Law guarantees equal 
treatment of foreign and domestic  investment, and foreign inv estments are granted the same 
incentives as local investors.  That has ind eed resulted in its remarkable FDI increase. 
95. Secondly, with regard to government procurem ent, we welcome the increase in the public 
bidding procedure.  However, Uruguay maintains preference margins for domestic industry and local 
content requirements.  Japan encourages Uruguay to c onsider equal treatment in  this regard and hopes 
Uruguay will be an observer to the WTO Agreement on Government Procurement. 
96. Thirdly, we have learned that it often tak es several years for foreigners to acquire 
identification which is necessary to  operate business in Uruguay.  This could hinder the smooth entry 
of foreign businesspersons into Uruguay and thus  that of foreign businesses.  Therefore, Japan 
encourages Uruguay to improve the process of issuing IDs for foreigners in order to further enhance 
its investment climate.  In conclusion, Japan would like to reiterate its hope that the Uruguay 
continues developing its macroeconomic po licies and facilitating foreign investment. 
MEXICO 
 
97. Unlike other economies of Latin America, Ur uguay's economy was only moderately affected 
by the international economic crisis:  after slowi ng down in 2009, it resumed it growth in 2010.  
Uruguay's GDP grew at an average annual rate of 6.2 per cent between 2005 and 2010, while 
per capita GDP doubled, reaching almost US$12,000 in  2010.  At the same time, the poverty and 
unemployment rates both fell sharply - in fact, unemp loyment fell to an unprecedented level of about 
6.2 per cent in the second quarter of 2011. 
98. Among the factors that drove domestic demand in Uruguay were the high international prices 
for agricultural raw materials and vigorous growth in  the region.  Growth was further strengthened by 
the progress achieved in fiscal consolidation and the significant reduction of the country's public debt.  
In 2007, a tax reform was launched wi th measures to curb expenditure in order to generate a primary 
surplus.  The tax measures intr oduced enabled the Uruguayan government to reduce the external 
public debt/GDP ratio from 69 per cent in 2005 to 45 per cent in 2010. 
99. We also welcome the adoption of the Law on Trade Freedom and the Preservation of Free 
Competition in 2007, and the creation of the Commission for the Promotion and Defence of 
Competition, which has been in operation since 20 09.  Similarly, the Law on the Protection and 
Promotion of Investment and its regulations in troduced during the review period led to a new 
investment incentives scheme. 
100. The efforts by the Uruguayan Government to a dopt measures to streamline and computerize 
customs formalities and to facilitate international trade are commendable.  However, additional steps 
are needed, such as the elimination of the consular fee on imports, the expansion of its risk analysis 
system and the unification of its different registration requirements. 
101. At the sectoral level, agricultural activities represented approximately 8 per cent of GDP 
in 2010.  However, food and agricultural raw materials account for 75.6 per cent of Uruguay's 
exports, bovine meat and soya being its main expor t products.  Although the increase in international  WT/TPR/M/263 
 Page 19 
 
 
  raw material prices has benefited Uruguayan exports over the past few years, there is a need to 
diversify the country's export capacity in anticipatio n of a possible fall in the prices of these inputs. 
102. The services sector is the economy's leadi ng sector, accounting for 58 per cent of GDP 
and 67 per cent of employment.  Particular progress was made in the telecommunications market, and 
Uruguay now has among the highest tele-density and inte rnet penetration rates in in Latin America.  
The financial sector weathered the world financial crisis without too much trouble thanks to the 
continued reforms that improved the le vels of capitalization and liquidity. 
103. The manufacturing sector represents 13 per cent of GDP, and consists mainly of foods and 
beverages;  textiles, clothing and leather;  chemical industries;  and machinery.  What is needed is a 
policy that would help to increase the nationa l value added while improving the production and 
quality systems.  We understand that the Urugua yan Government is already taking the necessary 
measures to that end. 
104. Uruguay applies the MERCOSUR Common Extern al Tariff, with a few exceptions.  
Although there has been a slight increase in MFN tariffs, from 9.3 per cent in 2005 to 9.4 per cent in 2011, this has been due mainly to the change  in tariff nomenclature.  The product groups with 
higher-than-average tariff rates in 2011 notably in clude footwear, textiles and clothing, and food 
preparations.  The average bound tariff is 30.6 per cen t.  Generally speaking, applied tariffs are lower 
than bound tariffs, with the exception of 35 lines for wh ich the applied rate is equal to the bound rate. 
COSTA RICA 
 
105. We are pleased to be participating in this TPR  of Uruguay, a country to which we feel very 
close.  We recognize Uruguay's historical contribution to multilateral trading system and its firm 
commitment to the WTO.  As members of the "Fri ends of the System Group" and Cairns Group, we 
also share Uruguay's interest in concluding the Do ha Round and fully integrating agriculture in the 
WTO's disciplines and rules. 
106. I would like to highlight certain aspects of the reports by the Secretariat and by the 
Government of Uruguay.  Firstly, we are impres sed by the robust growth of the Uruguayan economy 
over the past few years and the improvement in th e country's social indicators.  Similarly, we 
appreciate the importance that Uruguay attaches to ma intaining an open trade regime, and the role it 
assigns to foreign trade in the growth and development of a small country. 
107. We note with interest Uruguay's customs refo rms and the international trade facilitation 
measures it has implemented.  We also view the efforts undertaken in the competition area and the 
measures to establish a stable and legal environmen t for investment in Uruguay in a very positive 
light.  At the same time, like the Secretariat in  its report, we wondered about Uruguay's plans to 
eliminate its consular fee on imports, originally sche duled for 1 January 2011.  We are grateful for the 
clarification given by Ambassador Ons in this  respect at the beginning of this meeting. 
108. One issue that caught our attention in the Secr etariat report was the notification to the WTO 
of technical regulations.  According to the Secret ariat, Uruguay has submitted only six notifications of 
draft technical regulations and one notification c oncerning an already adopted measure.  Table AIII.1 
in the Annex to the report lists a considerably hi gher number of technical regulations (we counted a 
total of 73).  This leads to the question of whether these notifications do in fact cover the whole range 
of technical measures or draft technical regula tions that Uruguay should notify to the WTO, or 
whether some of these measures still need to be notif ied.  My delegation woul d be grateful if Uruguay 
would shed some light on this matter. WT/TPR/M/263 
Page 20  
 
  DOMINICAN REPUBLIC 
 
109. We congratulate Uruguay for its excellent macr oeconomic performance during most of the 
period under review.  We note with satisfaction th at real GDP grew at an average annual rate 
of 6.2 per cent between 2005 and 2010, a nd is expected to grow at a ra te of 5 to 6 per cent in 2011.  
GDP per capita doubled, reaching US$11,996 in 2010, while there was a mark ed decline in the 
poverty and unemployment rates.  At the same time , foreign trade grew sharply, doubling in dollar 
value. 
110. We are also pleased to note that as clearly indi cated in the Secretariat report, Uruguay has an 
open trade and investment regime with few border re strictions and limited use of non-tariff measures.  
It is a source of satisfaction that Uruguay h as continued adopting measures to streamline and 
computerize customs formalities and to facilitate inte rnational trade, an area in which it has achieved 
considerable progress even if certain aspects still need to be improved, for example, its risk analysis 
system, the reduction or unification of its different  registration requirements, mandatory use of a 
customs broker for different import formalities, and the consular fee. 
111. Generally speaking, Uruguay's foreign trade regime is governed by its membership in 
MERCOSUR.  The MFN tariff has remained stable at  approximately 9 per cent.  However, the tax 
reform involved a modification of the Specific Intern al Tax which, added to VAT (generally 22 per 
cent) and the tariff, can significantly increase the price of certain products.  We therefore urge 
Uruguay to reconsider these tax rates. 
112. We also congratulate Uruguay for adopting the Law on Trade Freedom and the Preservation 
of Free Competition and for the Law on the Protection and Promotion of Investment regulated by 
Decree No. 455/07, which mark an important step fo rward in establishing a regulatory framework for 
trade and investment.  Finally, we commend Uruguay for its economic, trade and social achievements 
during these difficult times of world economic crisis. 
CHINA 
 113. We note with pleasure that, during the review period, the Uruguayan economy has 
successfully weathered the global financial crisis and enjoyed high and sustai ned growth.  According 
to both the Government and the Secretariat reports , several economic and social indicators of Uruguay 
have achieved historical records, such as GDP gr owth, unemployment rate a nd foreign investment.  
The Secretariat report has also rightly pointed ou t that the strong economic performance reflects 
Uruguay's proper responses to the crisis by maintaining an open trade and investment regime and 
liberalizing trade and investment both at multilatera l and regional levels, toge ther with reforms on 
many aspects of its economic and social administration. 
114. On the bilateral side, China and Uruguay are impor tant trading partners to each other, with 
China being Uruguay's third largest trading partner.  During the review period, we are glad to witness 
the sound performance of our bilateral trade on both exports and imports despite the impact of the 
global recession, reflecting the complementary and inter-dependent nature of our bilateral trade 
relations. 
115. Regarding exports from Uruguay to China, Chin a has become the leading market for Uruguay 
in Asia with our share of Uruguay's total exports tripled in value during the review period.  The 
Government report also pointed out that its export destination markets has become more diversified 
with an increased share going to China and othe r countries.  Regarding imports, the period under 
review has also witnessed a sound performance, wi th China's share in imports of Uruguay doubled 
during the review period.  WT/TPR/M/263 
 Page 21 
 
 
  116. On investment, for the moment China is fa r from a strong player in the growth of 
Uruguayan FDI stock and China's direct investment in Uruguay was only US$7.5 million in 2010.  That being said, we are glad to notice that  in 2011 China's FDI to Uruguay has increased by 
almost 60 per cent year-on-year.  This demonstrates  that the great potentiality between two countries 
on FDI is being tapped and that the main sectors for investment as indicated in the Government report 
are sectors in which Chinese inv estors can play an active role. 
117. On the multilateral side, like many other Me mbers, we always appreciate Uruguay's firm 
commitment to the multilateral trading system and th eir active role in the Doha negotiations.  Their 
valuable contribution to this Organization is reflected on many aspects, including participating 
actively in negotiating groups such as Cairns Gr oup and G-20, tabling proposals on many subjects 
under the DDA, producing high-quality Chairs for various WTO bodies, and, last but not least, 
monopolizing the naming right for previous Round of negotiations, i.e. the Uruguay Round.  In 
particular, we fully share and appreciate very much what is said in the Government report on DDA:  "In the context of an international crisis in which protectionism is a strong temptation, it is crucial that 
the Doha Round should be concluded as quickly as possible.  This is vital to us all …". 
118. We have put forward some questions to Ur uguay under this TPR and thank them for their 
responses, which will be further studied back in cap ital.  We remain particularly concerned on the 
issue of transparency of Uruguayan trade remedy measure on "electric water heaters" from China and 
will pursue this with Uruguay both bilate rally and multilaterally in the future. 
CANADA 
 
119. Economic and trade relations between Canada  and Uruguay are extremely positive and are 
expanding.  In 2011, bilateral trade in  goods between our two countries amounted 
to Can$156.7 million.  Canada looks forward to  strengthening its relations with Uruguay, inter alia  by 
pursuing our current dialogue with MERCOSUR and ne gotiating an agreement on the exchange of tax 
information. 
120. Canada and Uruguay share a common view with respect to the importance that development 
tools, such as the Aid for Trade agenda, can play in strengthening domestic competitiveness.  Canada 
contributes to the Inter-American Development Ba nk - Aid for Trade Strategic Fund, which was 
instituted in 2009 to help countries in the Americ as benefit from liberalized trade and increased 
market access by using grant resources to overcom e supply-side constraints.  Bilaterally, Canada 
delivers programming in Uruguay through the Cana da Fund for Local Initiatives, which funds 
initiatives focusing on democracy and human rights by promoting projects in areas such as gender 
equality, rights of children, ethnic minorities, a nd education, as well as empowering civil society 
groups working on these issues.  We are proud that  Canada's International Development Research 
Centre's regional office is  located in Montevideo. 
121. Canada would like to take this opportunity to congratulate the Uruguayan government on its 
open trade and investment regime, with few border r estrictions and limited use of non-tariff measures.  
We would also like to congratulate Uruguay for its  recent achievement of an upgraded investment 
grade.  Uruguay has attached great importance to  reaching its economic development objectives, by 
embracing an international trade strategy which consis ts of continued efforts to liberalize trade and 
investment at both the multilateral and regional levels .  Canada looks forward to continuing to work 
with Uruguay in the context of our exploratory trade discussions with MERCOSUR to realize the 
important objective of deepening and enhancin g our trade and investment partnership with 
MERCOSUR.  Uruguay's continued support will be impor tant as we work to bring the exploratory 
discussions to a successful conclusion. WT/TPR/M/263 
Page 22  
 
  122. The Secretariat's report highlights a number of  positive developments  related to Uruguay's 
efforts to reform its economy, including the implem entation of a tax reform involving a simplification 
of the tax structure and a reduction in the number of taxes.  We note that Uruguay's economy enjoyed robust growth during the period under review, thanks  largely to dynamic agricultural production, a 
vital sector of Uruguay's economy constituting the bulk of its exports.  This is even more impressive 
against the backdrop of the formidable challenges faced by the Uruguayan economy during the global 
economic downturn - challenges which Uruguay was ab le to expeditiously overcome.  Moreover, 
Canada commends Uruguay for implementing a numbe r of measures since its last review, in 
particular with regard to fiscal consolidation, in cluding significantly reducing and restructuring the 
public debt.  It has also made efforts to simplify and computerize customs procedures and to facilitate 
international trade.  Uruguay is very open to foreign investment, its legislation guarantees equal 
treatment for foreign and Uruguayan investors, and Uruguay belongs to several international 
arbitration mechanisms for the settle ment of investment related disput es.  Canada is pleased to have a 
Foreign Investment Protection and Pr omotion Agreement with Uruguay. 
123. Canada notes Uruguay's active engagement in the Doha Development negotiations and in 
particular its efforts to increase liberalization in agricu ltural trade.  Particularly at this critical juncture 
in the Doha round, Canada encourages Uruguay's sust ained efforts across all areas of the negotiations. 
124. While Canada applauds Uruguay for its ongoing re form efforts, there are areas of Uruguay's 
trade policy where Canada believes that improvements can be made.  For instance, as highlighted in 
the Secretariat's report, further progress can be made  in customs formalities, and an additional step 
would be to eliminate the consul ar fee on imports and the reducti on or unification of its different 
registration requirements.  In conclusion, Cana da would like to express its support for Uruguay's 
economic diversification and growth achie ved since the last review in 2006. 
TURKEY 
 
125. We would like to start by commending Uruguay for its high and stable economic growth over 
the course of the review period, even during the r ecent economic crisis.  Removal of limits on banking 
authorizations is a clear indication of the confidence the country achieved so far in the economic field. 
126. Substantial reduction of public debt and simplification of taxa tion system emerge as major 
successes on the economic policy front.  Similarly, in troduction of legislation on competition is also a 
significant positive step we must acknowledge in the context of this review.  We hope this major 
change could pave the way for privatization of cer tain state owned enterprises in the near future. 
127. Concerning the economic developments, two issues which in our opinion deserve attention in 
the future are recent increases in prices and hi gh level of dollarization in the banking sector, 
particularly in commercial credits. 
128. With respect to the trade policies, it is clear th at in the review period, Uruguay has maintained 
and further strengthened its open and liberal trade regime by taking measures to further facilitate trade 
flows.  Among the improvements, we may mention the use of computerized customs formalities, 
elimination of several import charges and ad justment in the specific internal taxes. 
129. Nevertheless, we also share the Secretariat's vi ew that there is room for further improvements 
like streamlining the registration requirements, elimination of consular fees and easing of 
non-automatic licensing requirements for certain products including some textile and automotive 
products.  We also wonder if there is any plan to modify the current practice of subjecting all textile 
imports to the red channel at the customs.  WT/TPR/M/263 
 Page 23 
 
 
  130. Having listened to the opening remarks by Urugua y, we welcome its willingness to continue 
reforms in its trade policies, and we hope that in the course of its liberalization process, Uruguay will 
also undertake commitments in all of GATS sectors.   Before concluding, Turkey would like to 
express its appreciation for the numerous contribu tions made by Uruguay in the DDA negotiations 
and the WTO. 
INDIA 
 
131. It is noteworthy that the Uruguayan economy e xperienced sustained economic growth of over 
6 per cent per annum during the period under revi ew resulting in a doubling of its per capital GDP 
to US$11,996 in 2010.  Although GDP growth rate  fell to 2.6 per cent during the global economic 
crisis of 2009, it recovered significantly in the followi ng year and is expected to maintain its previous 
growth momentum.  The macro economic outlook for th e next few years continues to be favourable.  
Uruguay has also done well on the social front recording a decline in poverty and unemployment. 
132. On the trade front, the economy showed great er levels of openness with trade accounting 
for 51 per cent of GDP in 2010.  The country's impor ts and exports continued to grow at double digits 
resulting in a trade surplus.  However, Uruguay's e xports continue to be dominated by agricultural 
products such as meat, soya, wheat and agricultural raw materials accounting for 75 per cent of total 
exports in 2010.  In contrast, manufactures account for almost 70 per cent of its total imports.  While Uruguay has benefited from a favourable external environment, with high international prices for 
agricultural raw materials and strong growth among its  trading partners in the region, Uruguay has 
also encountered inflationary pressures of late due to pressure of domestic demand and increase in 
international prices of food and energy imported by the country.  All these factors point to the need 
for greater diversification of the Uruguayan economy and its trade basket.  Uruguay recognizes that as 
a small and open economy, its grow th and development is inevitably linked to the expansion, 
diversification and modernization of  its external sector.  We encour age Uruguay to continue its efforts 
in this direction. 
133. Further, as noted in the Secretariat report, although Uruguay has taken steps to facilitate 
international trade by streamlining customs formaliti es, it would do well to consolidate this process, 
by easing its registration requirements and eliminating the consular fee on imports.  Similarly, the mandatory use of a customs broker for the differe nt import formalities could push up import related 
costs and may need reconsideration. 
134. Looking at investment, the healthy performan ce of the Uruguayan economy, the country's 
macroeconomic stability and a suppor tive legal framework have all c ontributed to ensuring a strong 
growth in foreign investment flows to Uruguay during the period under review.  The only restrictions on private investment are in the sectors deemed to  be of national public interest such as fixed 
telecommunications, water and sanitation, and specific areas such as insurance and transport.  It would be interesting to know Uruguay's plans to further liberalize investment in these sectors. 
135. On the bilateral front, trade between India a nd Uruguay more than doubled during the period 
under review, up from US$44 million in 2006-07 to US$107.7 million in 2010-11.  Bilateral trade 
recorded a growth of 67 per cent during 2010-11 as compared to the previous year, pointing to the considerable untapped potential whic h can be exploited by both countries to mutual benefit.  Exports 
from India to Uruguay increased from US$48 million in 2009-10 to US$90 million in 2010-11;  while imports from Uruguay increased from US$16 million to US$17.3 million over the same period.  Main 
items exported to Uruguay included transport equipm ent, drugs and pharmaceuticals, inorganic and 
organic chemicals, electronic goods and machinery. 
136. India and Uruguay have entered into a Bila teral Investment Promotion and Protection 
Agreement (BIPA) in 2008 and a Double Taxa tion Avoidance Agreement (DTAA) in 2011.  WT/TPR/M/263 
Page 24  
 
  Since 2006, a fixed preferences agreement between MERCOSUR and India has come into force.  
Indian investments in Uruguay have grown mainly in the field of IT and steel.  Uruguay has also 
invested US$3.63 million in India in the area of ch emicals and pharmaceuticals machinery.  A large 
number of Indian IT professionals are currently wo rking in Uruguay.  We look forward to working 
with Uruguay bilaterally and in the multilatera l arena to take our cooperation forward. 
PAKISTAN 
 
137. Uruguay has seen a sustained period of growth during the review period which itself is an 
indication of sound policy combination.  Its GDP grew  at an average rate of 6.2 per cent.  Although 
for a very short period specifically in 2009 it  fell to 2.6 per cent but recovered in 2010.  
Macroeconomic stability and domestic demand was mainly behind this economic performance. 
138. Uruguay is also one of those countries where economic growth has led to good social 
indicators, there has been a decline in poverty,  as the incidence of poverty fell from 34.4 per cent 
in 2006 to 18.6 per cent in 2010.  According to th e Government report its indicators of poverty and 
extreme poverty are currently th e lowest in Latin America. 
139. Uruguay has done several reforms during this review period which are worth mentioning 
especially legislation to improve its investment re gime, competition policy and bankruptcy legislation.  
One of the main objectives of financial sector refo rms is to facilitate the supervision of financial 
conglomerates.  They are also planning reform of National Customs Directorate which is scheduled to 
be implemented in 2012.  These reforms are envisaged to move Customs beyond its traditional role of controlling imports and collecting duty to play a more significant role in trade facilitation. 
140. Its commitment to the multilateral system is obvi ous from its active participation in all the 
negotiating Rounds, it is also a founding member of the Cairns Group and believes in the continuation 
of the agriculture reform process as agriculture expor ts contribute to the major part of its exports.  
However services sector (almost 70 per cent) remains the significant contributor to the GDP. 
141. Some of the challenges faced by the country are alternative sources of energy, and climate 
change.  They also have an incentive system in place for exploitation of hydrocarbon, production of 
biofuels, software, automotive industry, genera tion of energy, printing industry, communication 
industry, etc.  There are few state-owned enterprises as well;  involvement of public sector is seen as a 
sign of trust in the public.  Therefore public-private  partnership initiatives have  been taken in various 
economic sectors including construction.  Uruguay has very successfully developed its own path to 
development;  success of its policies lies in inte grating trade policy with mainstream economic 
development and poverty reduction strategy. 
THAILAND 
 
142. Being both members of the Cairns Group a nd the G-20 Agriculture Group, Uruguay and 
Thailand have developed a dipl omatic and economic relationship for almost five decades.  
During 2009-11, the total trade value between Ur uguay and Thailand averaged at US$90.29 million 
per year.  In 2011, our total trade value with Uruguay was at US$120.83 million, increasing from 2010 by 31.84 per cent.  Although subjecting to the tyranny of distance, the international trade between Uruguay and Thailand has increased by leaps and bounds. 
143. In this rising trade relationship, Thailand's  export to Uruguay has increased by 49.64 per cent 
from 2010-11 to US$79.37 million.  Our main e xports to Uruguay include rubber products, 
radio-broadcast and television receivers, motor ve hicles, and automatic data processing machines.  
Import from Uruguay also rose by 7.39 per cent to US$41.46 million.  The main imports from Uruguay to Thailand include animals and animal pr oducts, milk and dairy pr oducts, wood products  WT/TPR/M/263 
 Page 25 
 
 
  and chemicals.  We are in the affirmative that th e relationships between Ur uguay and Thailand will be 
mushrooming. 
144. Thailand commends Uruguay as a very open economy.   Reading the Secretariat report, we are 
impressed with Uruguay's progress over the review period, including very few border restrictions, 
limited use of non-tariff measures, business envir onment improvement including a generally open 
investment regime, and customs forma lity streamlining and trade facilitation. 
145. In addition to these very remarkable trade policies, Thailand notes Uruguay's robust economic 
growth of an annual rate of 6.2 per cent from 2005 to 2010 and her admirable reforms in the fiscal and 
monetary regimes.  The simplification of the tax st ructure, reduction in the number of taxes, as well as 
fiscal consolidation which reduced and restructured the public debts, have indicated a very promising 
future of Uruguay in the world trade arena. 
PERU 
 
146. We share Uruguay's priority objective of conti nuing to open up its economy and its trade to 
the world even further through regional trade integrati on, in conformity with multilateral trade rules.  
In particular, we are seeking to ha ve agriculture fully integrated in to the multilateral trade rules, and 
domestic support and export subsidies abolished, by participa ting actively in the WTO negotiations 
through the Cairns Group at the Agriculture G-20.  At the same time, we have common systemic 
interests in the non-agricultural market access ne gotiations linked to the strengthening of the 
multilateral trading system. 
147. Peru's trade relations with Uruguay are governed by the Economic Complementarity 
Agreement signed with MERCOSUR, of which Urugua y is a member.  That agreement has been in 
force since 1 January 2006.  Although trade between  the two countries is still limited, it has shown 
signs of growing, and could potentially increase co nsiderably in the coming years.  Both countries 
have an investment regime which is generally open to private investment and actively promotes FDI.  
It should be noted that Uruguayan investment in Pe ru primarily concerns the beverage industry and 
the banking sector, as well as communications and the commercial sector. 
148. We welcome the considerable progress achie ved by Uruguay in terms of macroeconomic 
stability, distribution of income and poverty reduction as it seeks to  ensure sustained long-term 
growth.  We note, in particular, Uruguay's success ful fiscal consolidation since the last review 
in 2006, the reduction and restructuring of its publ ic debt, its spending discipline and its monetary 
policy directed towards maintaining price stability. 
ECUADOR 
 
149. Uruguay's economy has evolved positively over th e six years of the review period, with 
sustained growth at a rate of about 6 per cent, a substantial fall in unemployment and an improved 
standard of living for its inhabita nts, reduction in poverty and a sharp increase in per capita GDP, as a 
result of which Uruguay now ranks third in La tin America in terms of per capita income. 
150. Like various other Members from the regi on whose export and production revolves around 
agricultural products, Uruguay has benefited considerab ly from the international prices of agricultural 
goods over the past few years.  Its exports cons ist predominantly of commodities such as food and 
agricultural raw materials, above all soya and meat products, and the share of commodities has 
increased during the past five years. WT/TPR/M/263 
Page 26  
 
  151. Uruguay's applied tariff varies from 0 to 55 per cent with an average of 9.4 per cent, while the 
average bound rate is close to 31 per cent.  There is a difference of about 2 per cent between the tariffs 
on raw materials and on semiprocessed products, and 4 per cent with processed or finished products. 
152. Uruguay has a liberal trade policy, with impor tant WTO commitments in the services and 
goods areas.  As a result, it has been able to ta ke a forward-looking stance in the ongoing multilateral 
negotiations, in which Uruguay is known by Member s to be an active and committed participant.  
Ecuador certainly hopes that the efforts made by Uruguay and by WTO Members as a whole in the framework of the Doha negotiations will bear fruit in the form of commitments linked to flexibilities, 
in strict application of special and differential treatment. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
 153. We were particularly pleased to note in Am bassador Ons' remarks that Uruguay's economy 
enjoyed strong and sustained growth from 2006 to 20 11.  This recovery and great progress serves to 
illustrate the effectiveness of the series of economic  policy and structural reforms implemented by the 
government of Uruguay since its last TPR. 
154. Regarding trade policy, it is evident that s ubstantial efforts have been made by the 
government of Uruguay to improve its trade regime, primarily by setting as a basic objective of its external negotiations the achievement of stable and predictable market access conditions at all levels - 
regional, multilateral and bilateral.  We are pa rticularly impressed for the strong commitments 
Uruguay on the multilateralism and its active particip ation to the WTO works and Doha Round trade 
negotiations. 
155. We are also impressed by the five year plan from 2011 to 2015 of the Uruguay government to 
reinforce institutional and social, as well as micro- and macro-economic stability in order to make its 
economy more prosperous.  We note, for example, th at more attention will be  paid to tax reform, 
social policy, the education system and the basic infrastructure.  This will improve the environment 
for private companies and factories to become more profitable, and help to provide the people of 
Uruguay with a better standard of living. 
156. In certain areas of its international trade ther e appears to be room for Uruguay to simplify its 
customs procedures and document requirements, not ably in its imports of textile products and 
footwear and in its exports of agricultural products.  And, in our particular experience, joining the 
GPA will bring more market access and make government procurement value for money.  In this regard, we would like to encourage Uruguay to join the GPA. 
157. As far as the trading relati onship between Uruguay and us is concerned, according to our 
statistics, the total value of two-way trade wa s about US$158 million in 2011.  Therefore, the 
potential certainly exists for greater and closer ec onomic cooperation in the future, which we hope to 
achieve through continued dialogue, both bilateral and multilateral. 
BOLIVARIAN REPUBLIC OF VENEZUELA 
 
158. As stated in the Secretariat report, notwithst anding the economic and financial crisis that 
began at the end of 2008, durin g the review period Uruguay bene fitted from a slightly more 
favourable external environment, with high intern ational prices for agricultural raw materials - a 
situation that was not necessarily positive for th e poor food-importing countries - as well as strong 
growth among the countries of our subregion.  As a result, Uruguay experienced a sharp growth in 
real GDP and hence GDP per capita, which doubl ed between 2005 and 2010.  Thanks to these 
additional resources, coupled with sound macro economic and productive and social development  WT/TPR/M/263 
 Page 27 
 
 
  policies, there has been a significant reduction in the poverty and unemployment rates, a situation 
which we welcome. 
159. During the period under discussion, Uruguay and the Bolivarian Republic of Venezuela have 
strengthened their social, economic, political a nd geopolitical union both at the bilateral and 
subregional levels.  It is a complementary relationship that extends to different areas, a win-win 
relationship. 
160. This strengthening of bilateral relations has been formalized at the Heads of State and 
Government level through the signature of a numbe r of strategic cooperation agreements.  The last 
time the Presidents of the two countries met in Ja nuary 2011, for example, 12 new agreements were 
signed, building on a series of agreements that had been concluded since 2007.  These agreements 
concern cooperation in the fields of energy, food sec urity and trade, and have led to the establishment 
of a solid institutional framework for the devel opment of scientific, technical and financial 
cooperation agreements between Uruguay and the Boliv arian Republic of Venezuela.  Trade between 
the two countries is complementary, covering the Bolivarian Republic of Venezuela's food and 
agricultural needs and Uruguay's energy needs. 
161. At the subregional level, Uruguay and the Boliv arian Republic of Venezuela have opted for 
integration and the strengthening of the regi onal and subregional economic and political area , 
inter alia  through MERCOSUR, UNASUR, and the Banco del Sur.  During his last visit to Venezuela 
in January 2011, the Uruguayan Head of State onc e again stressed the importance, for MERCOSUR, 
of including the Bolivarian Republic of Venezuela among its members in that it would enhance trade 
complementarity. 
162. Trade between the two countries currently bene fits from specific tariff preferences negotiated 
under Economic Complementarity Agreement No. 59, concluded between certain Andean countries 
and MERCOSUR and which entered into force for Uruguay in 2005.  On the bilateral level, 
however, there are a wide variety of different economic and commercial links that go far beyond 
Agreement No. 59.  Trade between the two countries has risen sharply over the past five years.  
In 2003, for example, Uruguay's exports to the Bolivarian Republic of Venezuela stood 
at US$6 million, as against more than US$255 million for 2011.  In a different area, the Energy Cooperation Agreement, which will provide Uruguay w ith up to 40,000 barrels of Venezuelan crude 
per day, has been renewed. 
163. Other possible areas of exchange are being expl ored.  There remains much to be shared, on a 
complementary basis as was done in the field of technology.  Latin America and the Caribbean 
currently have a public satellite, the only one of its  kind, thanks to cooperation between Uruguay and 
the Bolivarian Republic of Venezuela.  At the sa me time, the Bolivarian Republic of Venezuela has 
concluded a cooperation agreemen t with Uruguay's National Institute for Agricultural Technology 
aimed at introducing genetic technology in order to  improve the quality of Venezuelan livestock and 
increase meat and milk production.  This cooperati on will enable us to meet our food security and 
sovereignty targets. 
164. On the financial front, Uruguay formally became  a member of the Bank of the South last 
December, and the minimum number of countri es required to make the regional institution 
operational was thus reached.  We are in an age where it is of fundamental importance that 
Latin America and the Caribbean should be able to find their own answers in order to realize their 
dream of integration and position themselves to face current and future challenges. 
165. In conclusion, we acknowledge the commitmen t that Uruguay has shown to the multilateral 
trading system ever since the GATT days, both in  fulfilling its current obligations and through its 
involvement in the successful conclusion of  past negotiating rounds as well as in the WT/TPR/M/263 
Page 28  
 
  Doha Development Agenda, where Uruguay has pl ayed a key role by submitting concrete proposals 
in a variety of areas and by facilitating the negotiatio n process.  As an essentially agricultural country, 
Uruguay has argued that agriculture should be fully  integrated into the multilateral trade rules, 
and that the domestic support and export subsidies th at distort the international agricultural market 
and deprive economies such as Uruguay of real mark et access opportunities should be abolished.  
The Bolivarian Republic of Venezuela shares this view, as evidenced by our common membership in 
the Agriculture G-20. 
HONDURAS 
 
166. Uruguay is a founding member of the WTO and an active participant in the multilateral 
trading system.  It supports the view that trade liberalization contributes to the development and 
well-being of peoples.  We note with satisfacti on from its report that Uruguay has shown a clear 
interest in including agriculture in the multilatera l negotiating agenda, and advocates the elimination 
of domestic support and export subsidies.  It is also among the countries that are members of the Cairns Group and the G-20. 
167. We also note with satisfaction from the Secretar iat report that Uruguay's economic growth has 
been robust during most of the review period.  Real  GDP grew at an average annual rate of 6.2 per 
cent between 2005 and 2010, and is expected to grow at  a rate of 5 to 6 per cent in 2011.  Thanks to 
this strong growth, GDP per capita doubled, reaching US$11,996 in 2010.  At the same time, there 
was a marked decline in the poverty and unemployment rates. 
168. We can only congratulate Uruguay, which, since its last review in 2006, has made significant 
progress with regard to fiscal consolidation, and has significantly reduced and restructured the public 
debt.  In 2007, it embarked on an extensive tax reform involving the simplification and rationalization 
of the tax system as well as greater efficiency in tax administration. 
169. We are pleased to note, from its report, th at Uruguay has continued to enjoy a favourable 
external environment with high international prices for agricultural raw materials and strong growth in 
the Southern Cone countries, and that during the period 2006-2010, the balance of trade in goods and 
services showed at surplus. 
170. As regards trade policy, since its last revi ew in 2006, Uruguay has adopted measures to 
streamline and computerize customs formalities and to  facilitate international trade, and has achieved 
considerable progress in that respect.  It also adopted the Law on Trade Freedom and the Preservation 
of Free Competition and its regulations.  We encour age Uruguay to continue participating actively in 
the multilateral trading system. 
SINGAPORE 
 
171. Singapore enjoys good bilateral economic relations  with Uruguay.  Our bilateral trade tripled 
between 2007-10 to S$120 million.  Our direct inv estment linkages have also been growing with 
Singapore-based companies active in the shipping, IT products and agribusiness sectors.  We are 
happy to note that the stock of FDI from Urugua y in Singapore stood at $63 million in 2010. 
172. In light of that, we warmly welcome the f act that during the period under review, Uruguay 
achieved rapid, robust economic growth and impr oved trade performance and openness, with positive 
impacts on jobs, poverty eradication and reduction in income inequality.  The significant policy 
reforms undertaken by the Uruguay government in ar eas such as taxation, customs and competition, 
as well as its diligent efforts at fiscal consolidation ha ve played an important role in encouraging trade 
and foreign investment as well as improving macroeconomic stability.  WT/TPR/M/263 
 Page 29 
 
 
  173. Like Singapore, Uruguay's long-standing commitm ent to the multilateral trading system and 
strong stance against protectionism are well-known.   We are both small, open economies that are 
reliant on foreign trade for growth and development.   With low tariffs and few non-tariff barriers and 
export taxes, Uruguay is a clear success story of how  an open trade regime coupled with continuous 
improvements in policy regimes concerning trade and investment have helped to lay the foundations 
for strong and sustained economic growth.  We enc ourage Uruguay to continue its efforts to build a 
pro-business environment for facilitating trade and investment, taking into account various issues 
raised today and the constructive suggestions made by Members. 
EL SALVADOR 
 
174. We are pleased to note that since its last re view, Uruguay's trade and investment regime has 
continued to be characterized by openness, transpar ency, predictability and in ter-sectoral neutrality.  
Its open investment and trade policies and its ma croeconomic stability have become the foundations 
of its economic growth - its investment regime is based on the principle of non-discrimination 
between domestic and foreign investment and invest ors, and it has sought to develop a stable legal 
framework conducive to investment , as reflected in the Law on the Promotion and Protection of 
Investment. 
175. Worth noting also is the importance that Uruguay attributes to foreign investment within its 
development strategy, as reflected in the investme nt agreements concluded with developed country 
Members as well as developing country Members such as El Salvador.  The purpose of these agreements is to attract private investment, to st rengthen existing market niches and to develop new 
business opportunities for participating Members. 
176. It should be stressed, for the period under review, that Uruguay has already developed a 
sound legal framework for the promotion and defe nce of competition which could contribute to 
stimulating its economy, not only benefitting th e Uruguayan population but also establishing an 
environment conducive to the productivity of co mpanies, investment, and export performance. 
177. We also note that Uruguay has carried out a major tax reform which, according to the 
Secretariat report, involved a simplification of th e tax structure and a reduction in the number of 
taxes, leading to the elimination of certain import charges.  However, we note that such items as 
alcoholic beverages, cosmetics, tobacco and petroleum products are still subject to high tax rates.  
Given Uruguay's policy of open trade, we think th at the policymakers might do well to review these 
taxes as a way of continuing to encourage foreign investment. 
178. One of the aspects of this review that caught our attention is the importance Uruguay attaches 
to small and medium enterprises, technological in novation and intellectual property, incorporating 
incentive programmes implemented through horizontal measures in favour of the SMEs and altering 
domestic regulations in order to  facilitate and simplify exports. 
179. For example, the "Exporta Fácil" export regime, the Institute for the Promotion of Investment 
and Exports of Goods and Services (Uruguay XXI),  and the Commission for the Promotion and the 
Defence of Competition (CPDC) constitute "good practices" that could be replicated by other developing members and which, in the case of my country, fit in with our Government's five-year 
plan aimed, inter alia , at enhancing productive economic develo pment and building the capacity of 
the SMEs. 
180. 
Turning to trade negotiations, trade between Uruguay and El Salvador is on the rise:  while 
Uruguay has a trade balance surplus, there is poten tial for growth in Salvadoran exports which we 
would like to exploit as fully as possible during the next biennium. WT/TPR/M/263 
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  181. We take this opportunity to highlight various b ilateral meetings held be tween El Salvador and 
Uruguay in which we reaffirmed our agreement to  intensify our exchange of experiences and good 
practices, particularly with respect to the implem entation of public policies to overcome poverty in 
parallel with measures to strengthen bilateral relations in the political, economic, social and 
cooperation spheres. 
182. With respect to the trade negotiations being conducted here at the WTO, we note that 
Uruguay is participating actively in the various areas of negotiation under the Doha Development 
Agenda, promoting the full integration of agricu lture into the multilateral trade rules and the 
elimination of trade-distorting dom estic support and export subsidies while at the same time opening 
up new market access opportunities for agricultural products. 
183. The intellectual property area, Uruguay and El Salvador share the same objectives in the 
negotiations being conducted at the WTO and in  other forums in Geneva, in which Uruguay 
participates actively.  We would like to highlight, in  this context, the work being done by Uruguay's 
National Directorate of Industrial Property, which administers and protects industrial property rights, 
offering quality services in the reception, processing, examination, granting and registration of 
intangible assets that favour the country's industrial,  economic and social development.  In fact, these 
efforts were an inspiration for our National Intellect ual Property Office in its own constant efforts to 
improve its services and ensure quality certification,  which is something we have now achieved.  WT/TPR/M/263 
 Page 31 
 
 
  V. REPLIES BY THE REPRESENTATIVE OF URUGUAY AND ADDITIONAL 
COMMENTS 
184. Let me begin with the tax reform, which is th e main reform introduced by Uruguay over the 
past decades.  This reform had a number of ma jor objectives, such as ensuring greater fairness, 
boosting tax efficiency, stimulating productive invest ment through uniform treatment of the different 
sectors of the economy, establishing a single corporat e tax, and finally, maintaining tax revenue 
levels. 
185. In connection with these reforms I would lik e to discuss some of the specific measures 
introduced and their results.  To begin with, the refo rm led to a fall in the share of VAT in total tax 
revenue from 37 per cent in 2006 to 32 per cent.  The reduction in VAT by one percentage point 
(from 23 to 22 per cent, which is clearly still rela tively high) is a step forward in terms of 
progressivity in that the VAT has a grea ter impact on lower income households. 
186. The second specific measure was the creation of  the Personal Income Tax (IRPF), which 
made the Uruguayan tax system more progressive.  The lower-income half of the population provides 
less than 2 per cent of the revenue from this tax.  Fi nally, a third important point is that thanks to the 
reform and significant institutional strengthening of the Directorate General of Taxation, there was a 
considerable reduction in tax evasion, and it is this  reduction that has made additional tax reductions 
possible.  And on the subject of tax reduction, it should be noted that the Corporate Income Tax is five percentage points below the tax th at existed prior to the tax reform. 
187. The future development of this reform w ill involve further expanding its objectives, and 
increasing progressivity through the IRPF, in this case by increasing the amount of income to which 
a 0 per cent tax is applied.  This amount has already been increased several times since 2007. 
188. Another area in which there are clear prospects is further VAT reductions.  In fact, the 
Legislative is currently examining a bill calling for a reduction in VAT of two percentage points, 
bringing the rate down to 20 per cent. 
189. In relation to tax issues, we have receive d questions from several Members concerning 
IMESI.  While Uruguay's tax burden clearly is not neg ligible, it is also clear that domestic taxes are 
not used for trade policy or protectionist purposes.   Any discrimination that may have existed in 
domestic taxes between domestic a nd imported goods has been entirely eliminated by the tax reform, 
and VAT, IMESI and the other taxes are applied uniformly to domestic goods and imported goods.  
Discrimination between domestic and imported goods in Uruguay is governed exclusively by trade 
policy, and as we shall see further on, that discrimination is extremely moderate. 
190. One example which was raised on several occasi ons with respect to the IMESI was the case 
of motor vehicles.  Although it is true that the consumer price for motor vehicles has a significant tax component, the fact is that the market in Uruguay for 0 km vehicles, and for vehicles in general, is supplied almost exclusively by imports, and a very large share of these vehicles comes from countries 
with which Uruguay does not have any kind of preferential agreement.  Moreover, it is a market 
which has experienced record sales of 0 km motor vehicles over the past few years. 
191. A second point that I would like to discuss is the customs reform, since we have received a 
number of questions from Members concerning the scope of that reform.  The objectives of the 
customs reform are numerous and complex, and it is not easy to list them here, but we are talking of a 
comprehensive and extensive reform involving drastic  changes in procedures as well as a far-reaching 
change in the organizational culture of the National Customs Directorate.  We are not merely 
restructuring, we are changing our approach, th e way in which the National Customs Directorate 
perceives itself and its role in the management of  foreign trade:  a customs service whose activities WT/TPR/M/263 
Page 32  
 
  revolve around trade facilitation rather than focusi ng on the control function.  If we had to reduce the 
scope of the customs reform to a single objective, that objective would be to lower transaction costs 
without neglecting the control function. 
192. As regards specific measures in connection with th is reform that are already producing results 
today and tie in with a number of questions raised by Members, to begin with, a number of selectivity 
mechanisms are being introduced in the customs c ontrol procedure with pre-established criteria based 
on risk analysis.  We are often asked about the re d channel, i.e. the channel involving the strictest 
inspection, with document checks and physical inspection of the goods.  In 2006, 57 per cent of imports went through the red channel;  by 2012, the figure had fallen below 15 per cent, and today, 
more than three quarters of imports go through the gr een channel, with the lowest level of inspection. 
193. A second area of the reform in which specific me asures have been taken ties in directly with 
the questions raised by Members on the simplification of requirements:  last year, the Single Foreign Trade Window project was launched bringing together  all of the agencies involved in foreign trade 
operations.  We hope that this single window will be  operational by the middle of 2013.  It involves a 
considerable simplification of procedures, an engine ering of processes in each one of the institutions 
that issues or grants any kind of document or cert ification relating to foreign trade, as well as the 
digitization of those documents.  In this same cont ext, another one of the reform measures that has 
been the subject of questions from Members is th e digital Single Customs Document, part of a 
broader customs project known as "Paperless Custom s" which makes intensiv e use of information 
technology and the digitization of documents bot h in the communications between the different 
agencies and in payments.  The implementation of the Single Customs Document is planned for 2013, 
but a pilot project of limited scope is already in operation. 
194. The last specific measure that we would lik e to mention in connection with the customs 
reform is the use of the electronic seal in connec tion with the facilitation of land transit operations.  
In view of Uruguay's role as a regional distribution hub,  it is particularly important for us to facilitate 
customs transit operations.  The necessary technical work has been done, the legislation required for 
the National Customs Directorate to be able to ap ply the electronic seal has been approved, and we 
hope to begin implementing it over the next few months. 
195. We have also received a number of questions  concerning the new Uruguayan Customs Code.  
For the moment, this Code is still a draft law wh ich is about to be sent to the Legislative for 
consideration.  As regards the role which this Custom s Code could eventually play, we need to bear in 
mind that the current customs legislation is fairly ol d, and is scattered across numerous laws that have 
been enacted in the course of sev eral decades, added to which th e terminology needs updating and 
there are a number of problems of interpretation - so that to a certain extent, the current customs 
legislation may hamper trade facilitation because of  the terminology used and because it is not easy 
for a customs official to know exactly what rules apply.  The new Customs Code should correct this 
situation by systematizing, updating and bringing together under a single regulatory corpus the 
various laws issued over the decades. 
196. The Code will enable a legal hierarchy to be  established among different reforms that are 
currently under way by introducing a number of ex tremely important instruments, such as the 
authorized economic operator, selectivity mechanisms  based on risk analysis, the priority use of 
IT systems and a system of prior consultati ons with regard to the applicable laws. 
197. One of the questions that has been raised most frequently c oncerns customs brokers.  We 
have had questions concerning mandatory use of a customs broker in custom operations and requests 
that such mandatory use be elim inated.  This issue has specifica lly been addressed in the customs 
reform, but not with a view to eliminating mandatory use of customs brokers - indeed, no 
short-term changes are expected in  that respect.  Let me explain Uruguay's approach to the issue of  WT/TPR/M/263 
 Page 33 
 
 
  customs brokers and how the customs reform aims to  alter the role they play.  Under the customs 
reform, that role is seen as one of an agent of th e customs authorities, in ot her words, an agent to 
which the National Customs Directorate delegat es functions, to which it assigns substantive 
responsibilities with a view to facilitating its inspecti on task.  The idea is to ensure more efficient 
customs control procedures by taking advantage of the customs broker's closer relationship and better 
understanding of his client.  Customs brokers tend to have a direct and often lasting relationship with 
their client, and this can be used to im prove the efficiency of customs controls. 
198. On the other hand, while the use of a broker is  mandatory, in return the customs broker is 
jointly responsible with the exporter or the importer vis-à-vis  the National Customs Directorate, and in 
order to exercise that function, must provide th e necessary qualifications.  In other words, customs 
brokers are not merely agents that deal with simp le formalities:  they require technical knowledge and 
have to keep abreast of an enormous body of legisl ation.  Moreover, to prove  their eligibility they 
must pass the corresponding exams.  There is no rest riction on the number of customs brokers:  they 
operate in competition with each ot her, and to be eligible, they must pass a stringent exam which 
takes place every year. 
199. In the trade policy area, one of the questions  that recurred most frequently concerned the 
consular fee and the chances that Uruguay might eliminate it.  Uruguay experienced its deepest 
economic and financial crisis 2001-2002, when GDP fell by close to 10 per cent and unemployment 
rose to almost 20 per cent.  In this very delicat e period for public finances, Uruguay adopted a few 
trade policy measures which in fact had a very moderate impact in terms of restricting trade. 
200. There were essentially three measures:  first of all, a 3 per cent commission was imposed on 
imports;  secondly, a new import tax was introduced, th e 3 per cent Contribution to the Financing of 
Social Security;  and thirdly, the 2 per cent consular  fee was introduced.  In this context of deep crisis, 
overall import charges rose by approximately 8 per cent. 
201. When the recovery process began, these meas ures were gradually phased out under a 
programme that has advanced and been consolidated, without being reversed in any way.  Under this 
programme, the 3 per cent commission on imports was fully abolished, as was the Contribution to the 
Financing of Social Security under the tax refo rm process.  In other words, charges amounting 
to 6 per cent have already been fully eliminated a nd have not been reinstated , although elimination of 
the consular fee was suspended as of the 2008-2009 cr isis.  Abolition of this fee continues to form 
part of Uruguay's priority trade policy objectives a nd will be effective as soon as recovery of the 
international economy becomes stronger.  As men tioned by several Members, it should also be 
emphasized that Uruguay has not adopted any form of trade-restrictive measure in the new 
international climate. 
202. As regards tariff policy and import charges, Ur uguay has only 34 tariff headings for which the 
applied rates are equal to the boun d rate, and in all other cases the applied rates are lower.  For 
several hundred tariff headings, Uruguay's app lied tariff is lower than the MERCOSUR Common 
External Tariff (CET).  Uruguay uses the flexibilities provided for implementing the CET in that it 
applies lower domestic tariffs and the common tari ff in particular to capital goods, high-technology 
products and inputs.  The average CET is around 12 per cent while Uruguay's average applied tariff is around 9.4 per cent. 
203. Taking this analysis a step further, it is also u seful to know the rate of the tariff levied.  The 
rate of duty collected by Uruguay is significantly lo wer than the applied rate and stood at 3 per cent 
in 2012.  Uruguay also has a vast number of special import regimes which, for various reasons such as 
temporary admission or under the agricultural inputs regime, provide for lower rates than the applied 
rate, so that the duties collected ar e ultimately much lower than the a pplied rates.  If we take the above 
into account, namely the elimination of the commi ssion on imports and other taxes which altogether WT/TPR/M/263 
Page 34  
 
  amounted to 6 per cent, Uruguay has clearly made significant reductions in import charges over the 
review period. 
204. As regards trade protection, we have received sev eral questions to which we believe we have 
provided clear responses.  I would simply like to add as a general comment that Uruguay makes hardly any use of trade protection instruments si nce it has imposed very few anti-dumping duties in 
recent years, currently has only one anti-dumping dut y in effect, and has never applied countervailing 
duties or used or applied safeguard measures. 
205. As regards non-automatic licences, Uruguay applies them very sparingly to imports - in fact 
to only four products, that is, acetic acid, because it is necessary to avoid using acetic acid, which is 
unsuitable for human consumption, in the food indus try;  sugar, because Uruguay needs to monitor, 
where appropriate, the duty exemption it applies to  sugar imported for production purposes;  vehicles, 
because the licensing process aims to ensure that the vehicles are new (the sale of used vehicles being 
prohibited) and to control imports under tariff quot as established in agreements on trade in motor 
vehicles concluded by Uruguay;  and lastly, di esel engines, because Uruguay needs to maintain 
control over the import restrictions it applies to such  engines under its energy policy.  As concerns 
practical administration, Uruguay issues the licen ces within a matter of days, i.e. much more 
expeditiously than is required by the WTO. 
206. As regards export taxes, for several decades now  Uruguay has applied taxes solely on exports 
of raw hides, currently amounting to no more than 5 per cent, as stipulated in the law, which also 
specifies that it is prohibited to tax exports of other products. 
207. As regards trade negotiations, I shall not list all the negotiations concluded within 
MERCOSUR.  With respect to ongoing negotia tions, MERCOSUR is currently negotiating 
association agreements with the European Union a nd also exploring the possibility of entering into 
negotiations with Canada.  Given its production and export struct ure, these two negotiations are of 
particular interest to Uruguay, and it is abso lutely essential for our country to advance in the 
negotiations with the European Union and secure better access to these markets for our agricultural 
and agroindustrial products. 
208. Uruguay has also conducted a number of bilatera l negotiations in the course of the period 
under review, concluding a free trade agreement with Chile on the basis of negotiation of a chapter on 
investment and another on government procurement.  It is also in the process of concluding an FTA 
with Mexico and has signed a trade facilitation prot ocol with the United States.  Uruguay has been 
particularly active in negotiating double taxation and tax information-shar ing agreements, and has 
increased the number of investment promotion and protection agreements to more than 30 to date. 
209. Various questions related to the incentives schemes and the criteria governing eligibility 
under those schemes.  The key reform in this area are the new texts regulati ng the Investment Law, 
Uruguay's main legal framework for investment incentives, for which both domestic and foreign 
investors are eligible on a strictly non-discriminatory basis.  A new set of guiding principles has been 
laid down for the granting of benefits, i.e. the pr ovisional nature of the measure, transparency, the 
requirement for beneficiaries to make undertakings in  return, job creation and investment promotion.  
Amendments have been made to this scheme since th e Secretariat finalized its report, particularly with 
a view to increasing incentives for human capital inv estment, the creation of quality jobs, investment 
in R&D and innovation as well as in the development of cleaner production and energy efficiency.  
The Secretariat report provides detailed informati on on the use made of this scheme, which has 
increased significantly and direct reflects the gr owth in investment throughout the period under 
review.  WT/TPR/M/263 
 Page 35 
 
 
  210. I would like to raise two further points concerni ng the incentives schemes.  The first relates to 
the free zones.  We have received several questions regarding the application of labour legislation.  
Labour legislation applies with absolute consiste ncy throughout the national territory and confers 
no benefit whatsoever in terms of labour flexibil ity in the free zones.  This would be totally 
inconsistent with the current Government's la bour legislation policy, which Uruguay has been 
pursuing for decades.  Uruguay regards flexibility in this respect as an unacceptable means of 
attracting investment, and no exception to or exempt ion from labour legislation may be granted in the 
free zones, because free-zone legislation expressly provides that the tax(es ) for which absolutely 
no exemption is allowed is/are those relating to social security. 
211. The second point which gave rise to questions relates to export subsidies.  Uruguay has a 
single export subsidy regime applying to the automotive sector and is in the process of implementing 
the measures planned for its dismantlement. 
212. Two types of reform of the government procurem ent system have been undertaken.  The first 
involves strengthening the system's institutional framework by establishing a coordination centre in 
the form of a Government Purchasing and Proc urement Agency, whose objectives are to enhance 
transparency and efficiency and improve procedures.  The second type of refo rm concerns preferences 
granted to suppliers of domestic goods and servi ces through the government procurement system.  
The system of preferences in effect as a result of the reform provides for two broad categories of 
preferences - one of general scope and another of  a more specific and limited nature.  Under the 
general system of preferences, a preference margin of 8 per cent is applied to the price of Uruguayan goods, services and public works. 
213. Uruguay has also established a Government Procurement Programme for Development, 
which may not apply to more than 10 per cent of  the value of the government procurement for the 
previous year.  This aim of this programme is to  devote a small share of government procurement to 
matters regarded as strategic or highly sensitive.   The Law establishing this Programme expressly 
mentions three areas, although the Government may apply it to other situations.  These three areas 
are:  innovation promotion programmes, programmes in favour of micro, small and medium-sized 
enterprises, and programmes for the development of  small-scale agricultural producers.  This 
approach closely resembles that followed by va rious other countries in their agreements on 
government procurement insofar as it is the type of  programme that is the subject of an exception 
under these agreements.  Only one programme has been regulated to date under this general 
Programme for Development - i.e. the programme in favour of micro, small and medium-sized 
enterprises, which has replaced a previous pr ogramme covering any government procurement 
operation. 
214. As regards government procurement, the most frequent question received relates to accession 
to the plurilateral Agreement on G overnment Procurement, with a r ecommendation to advance in that 
direction.  Uruguay does not plan to join the Ag reement for the time being, and it is therefore 
necessary to explain why.  First, the above-men tioned changes have enabled Uruguay to negotiate 
agreements on government procurement (in fact a government procurement agreement with Chile is 
currently before Parliament for ratification, and a nother such agreement is being negotiated within the 
framework of the FTA with Mexico). 
215. These agreements on government procurement ar e part of more comprehensive free trade 
agreements which allow the right balance to be esta blished between offensive a nd defensive interests.  
Uruguay does is not envisage acceding to the Agreem ent on Government Procurement because this is 
a sensitive issue at the domestic level and we believe  that considering it in isolation would prevent us 
from achieving the cost/benefit balance that would warrant accession. WT/TPR/M/263 
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  216. Another topic on which we received a number of  questions concerns the timeframes in the 
various tendering procedures.  We believe that we have adequately addressed the matter by explaining 
that in practice they are much longer than the minimum regulatory time periods. 
217. Turning to the services sector, frequent ques tions were posed on the issue of State 
monopolies.  In Uruguay these include urban and in terurban fixed telecommunications;  there are 
private suppliers operating in the mobile telephony and international long-distance telephony markets;  
public water and sanitation services;  occupational accident and disease insurance;  rail transport;  
transmission and distribution of electricity;  and importation, production and distribution of fuels.  
No changes are scheduled in the short term, and dur ing the review period there was no change in these 
monopoly situations – although prior to 2006, Urugua y had introduced far-reaching changes in these 
sectors, for example by widely opening up the te lecommunications, insurance and energy sectors, 
which shows that the monopolies in existence today are substantially more restricted than they 
were 20 years ago. 
218. During the period under review, progress was made in liberalizing air and financial services, 
and in the latter sector in particular, the annual quantitative restriction on the establishment of new 
banks was abolished.  To conc lude on this topic, Uruguay is both ready and in a position to 
significantly extend its services commitments, in the event that the Doha Round of multilateral 
negotiations should move forward. 
219. As regards sanitary and phytosanitary me asures and technical regulations, Uruguay has 
always been a very active Member in the internati onal reference organizations  on behalf of the WTO, 
and its sanitary and phytosanitary measures are based on the standards, guidelines and 
recommendations developed by these organizations.  Uruguay's veterinary services are valued for 
their high technical standard and reliability and enjo y international credibility and prestige, which has 
allowed our animal products to gain entry to more  than 100 markets, including the most demanding at 
the international level. 
220. Domestic measures concerning BSE come under the regional protection policy adopted by 
MERCOSUR, whose member countries - where no individual cases of the disease have been 
detected - are officially recognized by the OIE as having a "negligible risk" status.  Uruguay is 
considering the revision of its domes tic measures in the context of th e review of harmonized standards 
periodically conducted within MERCOSUR, which forms part of the latter's work agenda. 
221. As regards technical regulations, in respon se to various comments about the very few 
technical regulations notified by Uruguay, we ackno wledge having failed to meet our obligations and 
undertake to make the necessary adjustments at nationa l level to remedy this situation without delay. 
222. I shall conclude with a reference to social policy.  It should be mentioned that, in 
Uruguay's view, growth has not been sufficient and the improvement of social indicators also stems from a series of deep reforms and active policies spec ifically targeted at raising such indicators. 
223. During the review period, the health sector  underwent far-reaching reform with the 
establishment of a national health system providing fo r universal coverage based on public solidarity.  
Uruguay also undertook an in-depth re form of labour legislation, rein stating tripartite collective wage 
bargaining, which involves representatives of governme nt, entrepreneurs and workers, and, unlike the 
previous practice, now applies to all workers without  exception.  A third major reform in the field of 
education is the Plan Ceibal:  One Laptop per Chil d, which consisted in distributing 630,000 laptops, 
a fairly considerable figure for a total popula tion of 3.5 million, and has been implemented 
in 3,000 schools.  WT/TPR/M/263 
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  224. Lastly, with regard to social policy and as a somewhat general principle, the last two 
Governments have considered that the redistributiv e function of the State, in addition to the tax 
revenue component, should basically be exercised  through social spending, and the most recent 
budgets have shown a systematic increase in soci al public spending as a share of total public 
expenditure. 
225. To conclude, we believe first of all that we have clearly demonstrated that Uruguay has 
introduced a series of far-reaching reforms throughout this review period, making significant changes 
directly or indirectly relating to trade policy and i ssues of interest to the WTO, and that, furthermore, 
we have taken this path in full conformity w ith the principles governing the multilateral trading 
system. 
DISCUSSANT 
 
226. The fourth trade policy review of Uruguay has given us a better understanding of recent 
developments in its trade and trade-related policies an d practices, together with the challenges it faces.  
I wish to underscore, as most Members have done , Uruguay's significant economic growth throughout 
the review period, its macroeconomic stability and its improved human development and income 
inequality indices. 
227. I urge Uruguay to continue working to maintain  its economic growth especially in the light of 
the current global economic slowdown.   One cannot disregard the fact that the world commodity price 
index has been relatively favourable in the present in ternational environment, and this opens certain 
perspectives for countries that are mainly focused on  agricultural production and exports.  I think this 
is important for exporting countries, but it is also necessary to consider the implications for countries 
that are major importers of this type of product.   This framework of commodity price growth and 
stability is to be welcomed nonetheless, and as I understand it Uruguay has taken good advantage of it 
in recent years. 
228. I would also add that I am impressed by the reduction in Uruguay's external debt, which 
reflects sound management of the country's fiscal po licies.  As regards the level of tax collection, 
which has admittedly given rise to questions re lating to the various taxes imposed by Uruguay, 
I personally believe that it has been important in ba lancing the level of Uruguay's external debt and in 
re-ranking the country in the various country invest ment risk indices, not to mention - as I have 
already pointed out - the obvious fact that its s overeign debt has moved from a stable to a positive 
position. 
229. Uruguay's tax reform and the Law on the Promotion and Protection of Competition should be 
very highly commended.  The measures regardi ng fixed telephony are clearly on course as are the 
plans to maintain them, which I personally do not se e as a negative, quite to the contrary, as long as 
they are based on sound competition policies.  As we can see, the levels of mobile telephony and 
Internet penetration are extremely high, and the la tter may well be one of the highest in the world. 
230. In my view, Uruguay has honoured the commitment undertaken in its previous trade policy 
review when it announced the potential establishmen t of a Competition Supervisory Authority, and 
this is unquestionably a major achievement.  On the basis of my own country's experience, it appears 
fairly simple to create an institution of this type, put it into operation and give it credibility, so we 
encourage Uruguay to continue strengthening that institution. 
231. In a small country such as Uruguay, trade obviously plays a major role as a tool for promoting 
sustainable development, and we can only encourag e it to continue seeking new destination markets 
and market diversification.  We commend Uruguay  for its trade negotiations with other trading 
partners and for reducing its dependence on single ma rkets.  We note a concentration of exports of WT/TPR/M/263 
Page 38  
 
  food products and agricultural commodities, whic h rose from 69 per cent in 2005 to 75 per cent 
in 2010. 
232. It is important for Uruguay to continue expanding its export base so as to reduce its 
dependency on certain agricultural products.  Likewi se, I believe that it is important that Uruguay 
should explore new market niches through produc tion chains and increase export value-added. 
233. The establishment of the Institutional Commission on Foreign Trade is noteworthy.  I believe 
that it is crucial for an interinstitutional commission to be made up of all actors who are in some way 
or other involved in trade policy.  This lends trad e policy a degree of certainty and predictability and 
brings together all bodies with responsibility in this  sphere.  As regards in tellectual property, Uruguay 
somewhat modestly refers to its achievements in copyright and trademark protection.  The institute 
dealing with intellectual property in Uruguay is  certified as ISO-compliant, which enhances its 
importance and reliability from a foreign investment pe rspective and has a certain impact in terms of 
IPR enforcement.  We therefore encourage Uruguay to continue strengthening the institute in this 
most important area of international trade. 
234. Attention has also been drawn to the question of  customs duties and internal taxes.  From the 
explanations given today I find it quite interes ting to see how Uruguay views the dismantling of the 
consular fee.  In the previous TPR, we learned how the 3 per cent levy by the Central Bank of 
Uruguay was abolished, and Uruguay's commitment, s ubject to the conditions specified, is eminently 
reasonable - that is, to reduce the fee as the curre nt international financ ial and economic turmoil 
gradually settles down and keeping it in effect  is important to maintain fiscal health. 
235. Turning to Uruguay's comments about the importance of social policies, we would 
recommend ensuring the sustainability of all these polic ies and social spending over the long term.  It 
is encouraging to know that we shall soon be receiving more notifications from Uruguay concerning 
sanitary and phytosanitary measures and technical barriers to trade. 
236. We also urge Uruguay to pursue its objective of  keeping the inflation rate under control at 
between 4 and 6 per cent, because this in turn would have a favourable impact on the social goals to 
which Uruguay attaches such considerable importance. 
237. There have been a few questions about requi rements for importing certain products, and we 
urge Uruguay to ensure that non-tariff barriers or import requirements are strictly aligned, to the 
extent possible, with international standards so as not to create unnecessary barriers and hamper the 
free flow of trade. 
238. To conclude, we acknowledge the progress made with trade facilitation.  It has been 
interesting to hear about all the reforms being implem ented to facilitate trade, which as I understand it 
are fairly comprehensive, and Uruguay is urged to ensure that all of this is purely and simply for trade 
facilitation purposes and fully in line with what this  Organization is seeking to do to cut through the 
red tape so as to promot e both imports and exports. 
EUROPEAN UNION   
 
239. We have carefully studied the replies, which provide us with valuable information necessary 
to understand the situation in Uruguay on issues rai sed in our first submission. However, we have 
some follow-up questions. 
240. Firstly, related to Uruguay’s reply on import pr ohibitions and restrictions.  The EU would 
kindly ask Uruguay to provide further details on respective legislation and Uruguay’s wine sector 
reconversion.  Secondly, on protec tion of intellectual property rights, we would like to ask Uruguay to  WT/TPR/M/263 
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  further clarify whether it applies a time limit on th e protection of regulatory data for plant protection 
products. Continuing on IP enforcement, we would appreciate further details on Uruguay’s respective 
legislation to understand whether Uruguay only provi des enforcement mechanis ms for trademarks and 
not for other IP rights such as copyright, geographical  indications, designs, patents and plant varieties.  
241. In conclusion, the EU would like to agai n acknowledge Uruguay for its commitment to 
multilateral trading system and to WTO principles,  including transparency. We also commend it for 
not resorting to protectionist measures during the global downturn.  The EU welcomes the progress it 
has made since the last review on several fronts and hope that this fourth TPR has given Uruguay some additional valuable feedback and advice from other WTO Members on its trade policies and 
measures. We encourage Uruguay to continue with  its domestic, regional a nd multilateral efforts to 
facilitate trade, increase inward investment, and grow its economy in a sustainable way. 
UNITED STATES  
 
242. We only have one question today as a follow-up to  the EU’s question on the Secretariat report 
on page 124, paragraph 34 2 regarding technological measures put in place by right holders to protect 
their copyright works.  We appreciate the info rmation provided during its TPR (specifically, in 
response to question 47 on page 73 of the questions  and answers) regardi ng Article 46 of Uruguay’s 
copyright law which contains Uruguay’s criminal sanc tions provisions applicable to anti-trafficking of 
technological protection measures.  Can Uruguay please confirm if Uruguayan law also protects and sanctions the unauthorized act of circumvention of a technological protection measure, that is, either a 
TPM that controls access to a work or a TPM  that controls the copying of a work? WT/TPR/M/263 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
 
243. This fourth Trade Policy Review of Uruguay h as provided an opportunity for us to improve 
our understanding of recent developm ents in Uruguay's trade and investment policies, including areas 
where significant progress has been made, and those where there is room for improvement.  We are 
grateful for the active participation of the Urugua yan delegation, led by Ambassador Álvaro Ons, 
Executive Secretary of the Interministerial Co mmission on Foreign Trade.  We also thank 
Ambassador Francisco Pírez, Permanent Representative of Uruguay to the WTO, and the other members of the Uruguayan delegation.  Our discussi ons have also been enriched by the judicious 
observations of the discussant, Ambassador Franci sco Lima, and by the numerous statements of 
Members.  The answers provided by the Uruguayan authorities to the questions submitted in advance 
were very much appreciated. 
244. Members congratulated Uruguay on the outst anding economic performance achieved during 
the period under review, which had led to th e doubling of per capita GDP and the significant 
improvement of social indicators, particularly  with regard to the reduction of poverty and 
unemployment.  They also highlighted the fact that Uruguay had satisfactorily weathered the recent 
global economic crisis without resorting to protectionist measures. 
245. It was noted that the strong performance of the Uruguayan economy was underpinned by 
proper implementation of macroeconomic policie s, including a far-reaching tax reform and the 
consolidation of public finances.  At the same  time, it was observed that the rapid growth of 
Uruguay's foreign trade, under the impetus of strong global demand for raw materials, played an 
important role in boosting economic growth during the review period.  However, some Members 
suggested that Uruguay should continue its effo rts to diversify its economy and export basket. 
246. Members expressed acknowledgement of Uruguay's active participation in the WTO and its 
commitment to strengthening the multilateral trading sy stem.  At the same time, they recognized its 
efforts to advance the process of regional integration in MERCOSUR. 
247. Members praised the openness of Uruguay's trade an d investment regime, as evidenced by the 
limited use of border restrictions and non-tariff me asures, and the granting of national treatment to 
foreign investors.  They welcomed with satisfac tion the legal and institutional reforms undertaken by 
Uruguay to support trade and investment and improve the business climate, su ch as the adoption of a 
new law to promote competition and the progress made in modernizing customs and facilitating 
international trade. 
248. At the same time, Members identified certain  aspects of the Uruguayan trade regime that 
might be amenable to improvement and urged Uruguay to take further steps in that direction.  Many 
of these concerns were addressed in the statements by Ambassador Ons.  These concerns relate to the 
following aspects in particular: 
 Regarding non-tariff measures , some Members urged Uruguay to eliminate 
non-automatic import licences on certain produc ts, and to review the way in which it 
applies certain internal taxes on imports.  In this connection, Uruguay stated that it 
was in the process of reviewing the levels of  certain taxes, such as value added tax, 
and that taxes are applied equally to domest ic and imported products .  With regard to 
non-automatic licences, Uruguay stated that they are applied only to four products and for valid reasons, and that they are issued expeditiously. 
 
 Regarding customs procedures , Uruguay was invited to consider the 
appropriateness of eliminating the consular  fee and the obligation to use customs 
brokers, as well as to simplify registration requirements.  I am pleased to have learnt  WT/TPR/M/263 
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  from Ambassador Ons that the elimination of the consular fee is a priority objective 
of trade policy, together with a reform of the role of customs. 
 
 In the area of technical regulations , some Members encouraged Uruguay to update 
its WTO notifications and to provide more information on the procedure for 
elaborating standards.  Uruguay undertook to make efforts along those lines.  Other 
Members urged Uruguay to align sanitary meas ures applied to bovine meat with the 
relevant international recommendations.  In this regard, Uruguay stated that a review 
was under consideration in the framework of MERCOSUR. 
 
 In the matter of exports , interest was expressed in learning about Uruguay's plans to 
phase out export subsidies in the automotive sector.  In addition, a number of 
Members urged Uruguay to study the possi bility of eliminating export taxes on 
leather.  In this connection, Uruguay stated that, for the time being, it was not planned 
to eliminate export taxes on leather and that the phasing out of export subsidies in the 
automotive sector would be implemente d in accordance with the established 
schedule. 
 
 With regard to government procurement , Members recognized the progress made 
on regulatory and institutional aspects, although some Members pointed out that Uruguay still applied preferential programme s for the domestic industry and local 
content requirements.  Uruguay was also i nvited to consider the desirability of 
acceding to the revised WTO plurilateral Agreement on Government Procurement.  
The representative of Uruguay said that such  a step was not under consideration at the 
present time. 
 
 Regarding intellectual property rights , some Members urged Uruguay to continue 
stepping up efforts in the area of enforcement, and to accede to the WIPO treaties on patents and marks. 
 
 With regard to services , some Members urged Uruguay to consider the possibility 
of opening up the fixed telephony market to  competition.  In the area of financial 
services, interest was expressed in the possibility of Uruguay authorizing foreign insurance companies to establish branch es and representative offices on its territory. 
 249. This successfully concludes our fourth Review  of Uruguay.  The detailed nature of the 
questions submitted and the pertinent interventions of participants in the discussions attest to 
Members' interest in Uruguay's trade policies and practices.  I would like once again thank the delegation of Uruguay, the discussant and the Members for their contribution to this enlightening Review. 
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