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Table of Contents Doing Business in Uruguay: 2016 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2016. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Table of Contents Doing Business in Uruguay _____________________________________________ 5 Market Overview ___________________________________________________________ 5 Market Challenges _________________________________________________________ 6 Market Opportunities _______________________________________________________ 7 Market Entry Strategy ______________________________________________________ 7 Political Environment __________________________________________________ 9 Political Environment _______________________________________________________ 9 Selling US Products & Services _________________________________________ 10 Using an Agent to Sell US Products and Services ______________________________ 10 Establishing an Office _____________________________________________________ 10 Franchising ______________________________________________________________ 10 Direct Marketing __________________________________________________________ 11 Joint Ventures/Licensing ___________________________________________________ 11 Selling to the Government __________________________________________________ 11 Distribution & Sales Channels ______________________________________________ 12 Express Delivery _________________________________________________________ 12 Selling Factors & Techniques _______________________________________________ 12 e-Commerce _____________________________________________________________ 12 Trade Promotion & Advertising _____________________________________________ 13 Pricing __________________________________________________________________ 13 Sales Service/Customer Support ____________________________________________ 14 Due Diligence ____________________________________________________________ 14 Local Professional Services ________________________________________________ 15 Principle Business Associations ____________________________________________ 15 Limitations on Selling US Products and Services ______________________________ 16 Selling U.S. Products and Services Web Resources ____________________________ 16 Trade Regulations, Customs, & Standards ________________________________ 17 Import Tariff _____________________________________________________________ 17 Trade Barriers ____________________________________________________________ 17 Import Requirements & Documentation ______________________________________ 18 U.S. Export Controls ______________________________________________________ 18 Temporary Entry __________________________________________________________ 18 Labeling/Marking Requirements _____________________________________________ 18 Prohibited & Restricted Imports _____________________________________________ 18 Customs Regulations _____________________________________________________ 18 Trade Standards __________________________________________________________ 18 Trade Agreements ________________________________________________________ 20 Licensing Requirements for Professional Services _____________________________ 20 Web Resources __________________________________________________________ 20 Investment Climate Statement __________________________________________ 22 Executive Summary _______________________________________________________ 22 Openness to Foreign Investment ____________________________________________ 22 Conversion and Transfer Policies ___________________________________________ 23 Expropriation and Compensation ____________________________________________ 24 Dispute Settlement ________________________________________________________ 24 Performance Requirements and Investment Incentives _________________________ 25 Right to Private Ownership and Establishment ________________________________ 26 Protection of Property Rights _______________________________________________ 27 Transparency of the Regulatory System ______________________________________ 30 Efficient Capital Markets and Portfolio Investment______________________________ 30 Competition from State-Owned Enterprises ___________________________________ 31 Responsible Business Conduct _____________________________________________ 32 Political Violence _________________________________________________________ 33 Corruption _______________________________________________________________ 33 Bilateral Investment Agreements ____________________________________________ 39 OPIC and Other Investment Insurance Programs _______________________________ 40 Labor ___________________________________________________________________ 40 Foreign Trade Zones/Free Ports/Trade Facilitation _____________________________ 41 Foreign Direct Investment and Foreign Portfolio Investment Statistics _____________ 43 Contact for More Information on the Investment Climate Statement _______________ 44 Trade & Project Financing _____________________________________________ 45 Methods of Payment ______________________________________________________ 45 Banking Systems _________________________________________________________ 45 Foreign Exchange Controls ________________________________________________ 46 US Banks & Local Correspondent Banks _____________________________________ 46 Project Financing _________________________________________________________ 46 Web Resources __________________________________________________________ 47 Business Travel ______________________________________________________ 48 Business Customs ________________________________________________________ 48 Travel Advisory __________________________________________________________ 48 Visa Requirements ________________________________________________________ 48 Currency/Money __________________________________________________________ 48 Telecommunications/Electric _______________________________________________ 49 Transportation ___________________________________________________________ 49 Language _______________________________________________________________ 49 Health __________________________________________________________________ 49 Local Time, Business Hours and Holidays ____________________________________ 49 Temporary Entry of Materials or Personal Belongings __________________________ 50 Web Resources __________________________________________________________ 50 Leading Sectors for US Exports & Investments ____________________________ 51 Telecommunication Equipment _____________________________________________ 51 Security _________________________________________________________________ 53 IT – Computer Hardware ___________________________________________________ 55 Fertilizers _______________________________________________________________ 57 Renewable Energy Equipment ______________________________________________ 59 Chemicals _______________________________________________________________ 62 Construction – Heavy Equipment and Hand Tools ______________________________ 64 Agricultural Equipment ____________________________________________________ 67 Processed Food and Beverages, and Food Ingredients _________________________ 69 Environmental Technologies – Water Sanitation _______________________________ 71 Infrastructure Projects _____________________________________________________ 73 Education _______________________________________________________________ 75 Doing Business in Uruguay Market Overview Welcome – “Bienvenidos” The Commercial Section of the U.S. Embassy in Montevideo has compiled this guide to provide you with a brief background on the Uruguayan market as you consider export opportunities. Please do not hesitate to reach out to the Embassy at any time. The Commercial Section looks forward to assisting U.S. exporters in finding local buyers and business partners. Top Five reasons why U.S. companies should consider exporting to Uruguay: 1. Steady economic growth; private consumption has been a key driver. 2. Open trade policy. 3. Strategically located offering excellent opportunities as a regional distribution platform and a great test market. 4. Both the government of Uruguay and the business community honor contracts and payments. 5. Excellent bilateral relations between the United States and Uruguay. Uruguay is a market-oriented economy in which the state still plays a significant role. It became a high-income country by World Bank standards in 2012. Adjusted by purchasing power parity, Uruguay’s per capita GDP is about 40 percent of that of the United States. Uruguay’s social indicators are high by Latin American standards. The economy grew robustly from 2004-2014 with an annual average growth rate of 5.4 percent. Growth was led by private consumption, which was itself driven by low unemployment, rising wages, and a strong peso. A positive international environment –comprised of high commodity prices, low interest rates and strong capital inflows– was the cornerstone to this period of unprecedented strong and sustained growth. Uruguay’s economy is decelerating in the face of lower prices for its agricultural commodities and reduced demand from its key export markets. Growth slowed to 1 percent in 2015 and is expected to slow further in 2016. Other short-term domestic challenges include grappling with inflation, capping the budget deficit and preserving the investment grade status Uruguay regained in 2012. Largely unaffected by the global financial crisis, the banking sector is sound. Uruguay provides significant incentives
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