Uruguay maintains a relatively open and reliable trade and investment regime with few border restrictions and limited use of non-tariff restrictions, yet Uruguay’s trade policy tends to favor regional partners over bilateral trade relations with the U.S. In general, its trade strategy errs on the side of liberalizing trade and investment at the national, regional, and multilateral levels. Outside of its Mercosur tariff agreements, Uruguay imposes relatively high import taxes when compared to other countries in the region, which can raise the prices of foreign products. These import taxes are primarily designed to generate government revenue rather than protect domestic production, given Uruguay’s limited manufacturing sector.

Products of U.S. origin are subject to the Common External Tariff (CET) established by Mercosur, ranging from 0 percent to 35 percent based on the CIF (Cost, Insurance, and Freight) value of the product. In July 2022, Mercosur approved a 10 percent reduction in the CET for over 80 percent of product lines, lowering the average CET from 8.5 percent to 7.1 percent. Uruguay applies preferential tariffs on certain imports, such as equipment for agriculture and hotels, capital goods, and goods for projects declared of national interest. These goods may also be eligible for tax exemptions. 

Many products originating from Mercosur member countries benefit from a competitive advantage due to lower logistics costs and the duty-free status of many types of produce. For an index of Mercosur duties on specific products, visit the Latin American Integration Association’s Tariff Index: Country Items Tariffs