Uruguay Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in uruguay, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Trade Agreements
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In addition to being a member of the WTO, Uruguay is also a member of the Latin American Integration Association (ALADI) and Mercosur. While a Trade Investment Framework Agreement (TIFA) exists with the United States, Uruguay and the United States do not have a Free Trade Agreement.

For information on FTA partner countries, including how to take advantage of an FTA, please visit the FTA Help Center.

ALADI

ALADI is a Montevideo-headquartered trade association that includes ten South American countries along with Cuba, Mexico, and Panama. Under ALADI’s general regional tariff preference mechanism (PAR), member nations, including Uruguay, benefit from reduced tariffs on traded goods.  

Mercosur

Uruguay is a founding member of Mercosur, the Southern Cone common market, which was established in 1991 and is composed of Argentina, Brazil, Bolivia, Paraguay, Uruguay and Venezuela; Venezuela was suspended from the bloc in December 2016 for failure to comply with membership requirements. Later, Bolivia, Chile, Colombia, Ecuador, Peru, Guyana and Suriname joined as associate members. Bolivia has since been ratified as an official member and is in the process of accession, with four years to adopt the bloc’s regulatory framework. Mercosur’s headquarters and parliament are in Montevideo.

Mercosur – Andean Community of Nations (Bolivia, Colombia, Ecuador, and Perú)

The agreement between Mercosur and the Andean Community of Nations (CAN), Acuerdo de Complementación Económica No.  59, took effect in October 2004 with the goal of liberalizing 80 percent of trade between the blocs.

Mercosur – Mexico

In 2004, Uruguay and Mexico deepened a 1999 agreement, which resulted in Uruguay’s first comprehensive trade agreement with a non-Mercosur country. This agreement was initially negotiated with Mercosur as a bloc, with the option for each member country to proceed at its own pace (“different speeds” approach). However, Uruguay remains the only Mercosur country to have signed it.  In April 2019, Uruguay and Chile ratified a free trade agreement that expanded on an existing agreement. In July 2004, Mercosur accepted Mexico as an “observer country” within the bloc, with the intention of its eventual inclusion as associate member.

Mercosur – European Union

On December 6, 2024, the European Commission President and Mercosur Members reached a political agreement on the trade-related components of the EU-Mercosur Partnership Agreement after a 25-year negotiating process. Significant political changes on both sides of the Atlantic enabled the sides to finally reach agreement, including support from both the Brazilian and Argentine presidents and a newly empowered European Commission President beginning her second term in Brussels. Several steps remain before the agreement takes effect, including a potentially contentious approval process in the European Council due to vocal opposition from key member states, particularly on agricultural issues. Under the Agreement, Mercosur will remove tariffs on 91 percent of the goods imported from the EU, including key exports such as vehicles (currently 35 percent) and machinery.  In return, the EU will exempt duties on 95 percent of goods imported from Mercosur, along with 83 percent of agricultural imports.

If it goes into effect, the EU-Mercosur agreement would mark a major shift in trade within the Southern Cone, expanding the EU’s access to the region, and potentially increasing alignment with EU standards. At the same time, higher standards in Mercosur countries could foster a more business-friendly environment for U.S. firms. As Europe deepens its trade ties across South America, the U.S. risks falling behind in global trade leadership.

Mercosur – EFTA

In 2019, Mercosur signed a trade agreement with EFTA (European Free Trade Association) the European Free Trade Association (Iceland, Liechtenstein, Norway, and Switzerland). Although signed, the agreement is not yet in force and will only be fully implemented once all member nations have completed the ratification process. One of the key outcomes of the agreement would be the reduction and elimination of tariffs for agricultural and agro-industrial goods. EFTA also grants exclusive access quotas to Mercosur for meat, honey, rice, wine, and olive oil.

Mercosur – Southern African Customs Union

In December 2000, the founding countries of Mercosur – Argentina, Brazil, Paraguay, and Uruguay – signed a framework agreement to establish the creation of a free trade area between Mercosur and the Southern African Customs Union – Botswana, Lesotho, Namibia, South Africa, and Swaziland. In 2016, a preferential trade agreement entered into force.

Mercosur – Other

In 2019, Mercosur advanced negotiations with other partners such as South Korea, Canada, and Singapore, aimed at reaching trade agreements with high-potential markets. In 2004, Mercosur and India signed a Preferential Trade Agreement to promote trade through reciprocal tariff preferences, laying the groundwork for future negotiations toward a Free Trade Area. Most recently, in July 2024, Mercosur began negotiations with the UAE. Mercosur also has FTAs signed with other countries such as Egypt and Israel, which entered into force in September 2017 and December 2009 respectively.

Other Free Trade Agreements

Over the past decade, Uruguay has faced major problems in exporting to Argentina due to import restrictions and has since diversified its exports away from its Mercosur partners. In addition to Mercosur there are separate bilateral agreements with Argentina and Brazil providing for administered trade of certain products, mainly vehicles.  

In 2021, Turkey sent an invitation to GOU expressing interest in deepening commercial relations and exploring the possibility of an FTA between the two countries. Uruguay responded positively and moved forward with the signing of a MoU in Ankara.  However, pressure from other Mercosur members posed significant challenges to the continuation of negotiations, which were eventually abandoned. Similarly, in July 2022, the GOU announced that they had concluded a feasibility study and were prepared to move forward with negotiations on a FTA with the PRC, despite concerns raised by Mercosur partners. China expressed its interest in an FTA with Uruguay but has refrained from advancing negotiations to avoid conflicts within Mercosur, specifically Brazil.  Uruguay is no longer pursuing an FTA with China.