These include electricity, hydrocarbons, banking and finance, railroads, strategic minerals, telecommunications and the press. Uruguay has long owned and operated state monopolies in petroleum, rail freight, telephone service and port administration. Passage of port reform legislation in April 1992 allowed for privatization of various port services. The state-owned natural gas company was privatized in late 1994. Government procurement practices are well-defined, transparent and closely followed.
Tenders are generally open to all bidders, foreign and domestic.
However, a government decree establishes that local products or services of equal quality to and no more than ten percent more expensive than foreign goods or services shall be given preference. Among foreign bidders, preference will also be given to those who offer to purchase Uruguayan products. Uruguay has yet to sign the WTO Government Procurement Agreement. Following a recent reduction in the top rate, Uruguay's tariff structure now varies between zero and twenty percent. Most imports from Mercosur member countries enter free of duty.