Free Trade Agreement Uruguay

The country`s recognized political and social stability, coupled with the macroeconomic strength and reliability of its judicial system, is a guarantee for those who decide to invest in the country. Nearly thirty investment promotion and protection agreements and thirteen conventions aimed at avoiding double taxation ratify this decision. Both of these situations would be a disaster for the Argentine economy. One of the cornerstones of industrial production that is still inefficient is the ability to sell to Brazil at zero tariffs, while competitors have to pay for THE ECTs. If Brazil signs many trade agreements, Argentine companies will be subject to stiff global competition in the Brazilian market, without having the advantage of accessing new markets opened by trade agreements for Brazilian companies. After more than 20 years of negotiations, MERCOSUR and the European Union concluded a comprehensive trade agreement in June 2019. Before it comes into force, the European Parliament and the parliaments of the various MERCOSUR countries must ratify the agreement. Service agreements intend to provide the parties with guarantees that certain fundamental principles, such as national treatment and the most favoured nation, will be respected, which ensure entry into the market without discrimination. These agreements include obligations of countries with regard to the various service sectors and four forms of supply: cross-border supply, consumption abroad, commercial presence and presence of individuals. Since 1991, Uruguay, along with Argentina, Brazil and Paraguay, has been part of Mercosur. Venezuela became a full member in 2012. The regional opening process ended with the implementation of international agreements on goods, services, public procurement, investment and double taxation.

Although Uruguay has an open procurement market, where foreign investors and bidders can submit their proposals, there is currently an agreement with Chile and others are being negotiated. Uruguay is part of Mercosur along with Brazil, Argentina, Paraguay and Venezuela. Uruguay has signed, under Mercosur or independently, a series of trade agreements that allow access to other preferential tariff markets beyond Mercosur. Different tax criteria can lead companies or individuals to collect taxes for the same source of income in more than one country when they operate internationally. One of the aims of international conventions is to avoid double taxation authorities, which restrict each country`s tax powers.

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