CET Core Sectors
Uruguay has positioned itself as a strategic testbed for next-generation technologies, leveraging its small, well-educated population, stable regulatory environment, and advanced digital infrastructure. The country was the first in Latin America to achieve universal fiber-optic broadband coverage and has implemented nationwide digital government services, making it an ideal environment for pilot projects and technology rollouts. Uruguay actively promotes innovation through “Uruguay Innova (U+I)” and institutions, such as the National Research and Innovation Agency (ANII). U.S. companies developing emerging technologies may find Uruguay a favorable environment for testing solutions before scaling in the broader Latin American market. The government is receptive to public-private collaboration and often partners with foreign firms on pilot initiatives.
U.S.-Uruguay Memorandum of Understanding
On April 10, 2024, the United States Departments of Commerce and State, and Uruguay’s Ministry of Foreign Affairs (MFA) and Industry, Energy and Mining (MIEM) signed a Memorandum of Understanding (MoU) to enhance cooperation on select critical and emerging technologies. This MoU aims to foster innovation, sustainability, and economic opportunities between the two nations. The MoU established a Bilateral Working Group (BWG), which aims to meet biannually to facilitate collaboration in several areas including semiconductors, artificial intelligence (AI), data flows, energy, telecommunications, cybersecurity, and biotechnology. Both Uruguay and the United States have expressed interest in developing joint activities to increase commercial cooperation across these sectors and are working to define joint activities, including reducing barriers to trade and facilitating commercial relationships. Companies are encouraged to contact the Commercial Service in Uruguay to learn more about how to participate in related activities.
The BWG met in June and November 2024, with the U.S. Ambassador and Uruguay’s Minister of Industry Energy and Mining leading the sessions. Both parties expressed interest in specific activities under each area of work to continue deepening the collaboration and exchanges. These activities include, among others, virtual technical exchanges and joint trade missions. While the BWG meetings are government to governments, many of the activities agreed upon by both parties include and encourage industry participation.
The MoU encourages business-to-business (B2B) cooperation, with a focus on high-level participation in strategic initiatives and trade events. U.S. companies can leverage this framework to establish partnerships, expand their market presence, and engage in joint projects with Uruguayan businesses. The BWG will facilitate regular meetings to develop and implement an Action Plan for Leading Technology Opportunities (ALTO), ensuring continuous collaboration and progress.
The U.S.-Uruguay MoU on Critical and Emerging Technologies creates a robust platform for U.S. companies to explore a new market, engage in collaborative ventures, and drive innovation. By participating in activities under the BWG and strategic initiatives outlined in the MoU, U.S. firms can capitalize on the growing opportunities in semiconductors, AI, energy, telecommunications, cybersecurity, and biotechnology. This agreement not only strengthens bilateral relations but also paves the way for economic growth and technological advancement in both nations. The U.S. and Uruguay are looking for opportunities to engage with industry to help inform the development of regulations and policies in these sectors. The U.S. government welcome companies reaching out to CS Uruguay to provide your perspectives, inform recommendations, and share any issues or proposals for bilateral engagement under the MoU.
Key Areas of Cooperation
Semiconductors
The MoU emphasizes the development and deployment of semiconductor technologies, as Uruguay considers developing a semiconductor roadmap. This cooperation presents opportunities for U.S. companies to explore joint ventures and supply chain collaborations with Uruguayan counterparts, potentially expanding their market reach and enhancing technological capabilities. Given the early stage of Uruguay’s semiconductor strategy, assessments of potential paths for semiconductor cooperation could benefit from U.S. industry input.
Artificial Intelligence (AI)
The MoU includes a focus on AI, data privacy and cross-border data flows, providing avenues for technical exchanges, consultations, and training programs. Uruguay developed a national AI and data strategy, for which the Government of Uruguay invited stakeholder input. U.S. firms specializing in these sectors or relying on these technologies are encouraged to contact the U.S. Commercial Service office in Uruguay to learn more about activities occurring under this AI strategy. For more information, please see ICT chapter under “Leading Sectors for Exports & Investments”.
Energy Generation and Storage
The MoU identifies energy technologies – such as critical minerals, hydrogen, and energy storage – as key areas of focus. U.S. companies in related energy sectors are well-positioned to explore partnerships and investment opportunities within Uruguay’s expanding energy market. Bilateral cooperation has already begun under the IMPACT initiative, which primarily focuses on capacity building, promoting two-way trade including through trade missions, and aligning on best practices for next generation energy technology deployment. For more information, please see Energy chapter under “Leading Sectors for Exports & Investments”.
Telecommunications and Cybersecurity
The development of open telecommunications networks and cybersecurity initiatives is a priority under the MoU and this workstream provides U.S. companies the opportunity to contribute to bolstering Uruguay’s digital infrastructure and enhancing cybersecurity capacity. This includes participating in technical exchanges and regulatory consultations to ensure the adoption of best practices and international standards. For more information, please see ICT chapter under “Leading Sectors for Exports & Investments”.
Biotechnology
The MoU also covers biotechnology, offering U.S. firms opportunities to engage in research and development, and collaborative initiatives aimed at advancing biotechnological innovations. The United States and Uruguay are considering potential activities to boost bilateral and multilateral cooperation on biotechnology, including possible missions of Uruguayan companies to the United States in 2025.
Space Technologies and Systems
Uruguay is taking decisive steps to position itself within the rapidly growing global space economy, which is projected to reach $1.8 trillion by 2035. The Government of Uruguay (GOU) is moving forward with plans to establish a civil space agency and potentially develop a commercial spaceport in the northeastern region of the country. If brought to fruition, these initiatives could open substantial opportunities for U.S. companies seeking to engage in Uruguay’s nascent space industry, from infrastructure development to satellite technology and research partnerships.
Transportation and logistics services
The Uruguayan government has taken concrete steps to position the country as a regional gateway for commerce, forming institutions like the National Logistics Institute (INALOG) to align public and private sector efforts around infrastructure, trade facilitation, and regulatory coordination.
At the heart of Uruguay’s logistics offering is its long-standing Free Trade Zone (FTZ) system. First implemented over 100 years ago, and sustained across multiple administrations, the FTZ regime now includes twelve active zones contributing approximately 30 percent of the country’s exports and over 4 percent of its GDP. These zones offer significant tax exemptions – no corporate income tax, no VAT, no import duties – creating a business environment that favors efficient, low-cost logistics operations. U.S. companies with regional supply chain needs can benefit from Uruguay’s FTZs, especially those engaged in manufacturing, warehousing, and distribution.
Uruguay’s strategic value is further enhanced by its proximity to key maritime and air transport channels. The Port of Montevideo functions as a free port, allowing goods to be stored for up to five years without duties. Carrasco International Airport operates under similar principles for air freight. Both facilities aim to reduce transit times and simplify re-export procedures – key features for time-sensitive or high-value supply chain operations. Bonded warehouse options add further flexibility by allowing up to 24 months of storage with deferred tax obligations.
Uruguay also plays a critical role in inland logistics through its connection to the Hidrovía Paraguay-Paraná, one of the most vital river transport corridors in the region. This waterway links landlocked Paraguay and parts of Brazil to the Atlantic Ocean, enabling the efficient movement of agricultural commodities, energy inputs, and bulk minerals. Uruguay acts as a gateway to global markets for these exports, especially key inputs like iron ore, grains, soy, and could play an important role in securing supply chains and supporting critical and emerging technologies.
Additional mechanisms – including temporary admission, bonded logistics, and duty-free raw material importation for re-export – help reduce costs and expand value-added opportunities such as packaging, labeling, and product customization. These policies make Uruguay well-suited to serve as a launch point for goods bound for regional markets like Brazil, Argentina, Paraguay, and Chile.
While certain trade constraints apply under Mercosur rules, value-added manufacturing in Uruguay may allow companies to qualify for preferential treatment when distributing within the trade bloc. For firms that are looking to reduce dependency on risk-prone regions, Uruguay offers a stable and well-regulated alternative with strong ties to the Western Hemisphere.
Uruguay’s role as a logistics hub is evident in the pharmaceutical industry, where its regulatory framework supports specialized operations, including cold chain management. In 2023, the volume of pharmaceutical goods in transit through Uruguay reached more than twice the country’s total pharmaceutical exports. Most of these products originated in Europe and North America and are distributed to Mercosur countries. This robust infrastructure – along with free trade zones, a free port and airport, and incentives for regional distribution centers – demonstrates Uruguay’s capacity to handle sensitive, high-value goods with efficiency and compliance.
For these reasons, Uruguay’s logistics infrastructure, legal predictability, and regional access offer meaningful advantages. American companies that prioritize a dependable, rules-based commercial environment should consider Uruguay a serious candidate for regional distribution and supply chain operations.