Uruguay



URUGUAY WITHIN THE REGION

THE COMMON MARKET OF THE SOUTH - "M E R C O S U R"


Uruguay is a member of the the Common Market of the South (MercadoComún del Sur -MERCOSUR) with Argentina, Brazil and Paraguay.

The treaty establishing the MERCOSUR was signed in March 1991 with the Treaty of Asuncion.and is in force since November 29, 1991.


The governments then committed themselves to accomplish periodical reductions of import taxes and customs duties until total elimination of tariff and non-tariff barriers by 1995.


This means the integration of 2OO million consumers in one single market which represents 75% of South America's GDP.


Main features of the MERCOSUR are the following:

·Free circulation of goods, services and production factors among member-countries;
· Establishment of a single common external tariff before third countries, which is in force since the 1st.january 1995;
· Coordination of macroeconomic policies among the 4 countries in the fields of foreign trade, agriculture, industrial development, fiscal and monetary policy, transport and telecommunications.
· Trade among the four countries is excempted of tariff barriers since the 1st.january 1995, at the end of a process of duty reductions that began the 30th.june 1993. Duty excemption comprises the whole tariff universe with the exception of those items included in special lists kept by each signatory country which, in tum, are subject to an annual reduction until year 2001.


Furthermore, member-countries must follow a time frame of actions, with predetermined fixed dates, to coordinate and harmonize macroeconomic, commercial and sectorial policies. To this effect, many work subgroups, divided by subject, are assigned to the analysis and coordination of the various economic, industrial,trade, labor and other policies of the member-countries.

A Ministers Council rules the political orientation of the MERCOSUR, while other matters are handled by the Grupo Mercado Común (Common Market Group).

Montevideo is the seat for the MERCOSUR Executive Secretarial, a coordinating office created by the Treaty of Asunción, which turns our capital into the principal negotiation center for the four countries.

Uruguay is strategically located in the main routes connecting Argentina to Brazil and is the main way of maritime and fluvial entrance for the products entering Paraguay

The Common Market will increase the internal market from 3 million to almost 200 million, the big part of them easily accessible to the country and supposing the highest purchasing power of the region:

* 15 million inhabitants with a high consumption level live within 2OO km radio of Montevideo
* 50 million inhabitants of the zones of biggest agricultural and industrial development live within 1.500 km of the Uruguayan frontier
* a lot of products exported to Brazil at no quantitative barriers, free from taxes and restrictions.




Homepage Trade Point Montevideo

Trade Point Montevideo Main Office Address :
Ituzaingó 1423
Montevideo
Uruguay
Tels.: 5982 96 31 85
Fax : 5982 96 48 12

We welcome your contact by
E-mail :
palma@chasque.apc.org
For further information please contact :
Lic. Laura Palma
Trade Point Montevideo Executive Directress

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