WTO Trade Policy Review: Uruguay's Economy and Trade Policy (2018–2025)

Key Highlights

·         Uruguay remains a high-income, stable economy with GDP per capita rising to USD 22,628 in 2024, though growth averaged only 1.2% annually between 2018 and 2024.

·         While agriculture contributes only 6.6% of GDP, it accounts for 66.6% of exports, making the economy highly dependent on agricultural products such as beef, dairy, soybeans, and rice.

·         Uruguay is increasingly diversifying into digitally delivered services, particularly professional consulting and computer services, helping reduce dependence on agriculture and strengthen participation in global value chains.

·         The economy remains highly dollarized, with 74% of deposits held in U.S. dollars in 2025, affecting competitiveness, monetary policy effectiveness, and financial stability.

Trade and Investment

·         Trade openness increased, with trade in goods and services rising from 47.8% of GDP in 2018 to 52.6% in 2024.

·         Uruguay remains a major recipient of foreign investment, especially in financial services, commerce, manufacturing, and agroforestry sectors.

·         Major export destinations are Brazil, China, the United States, the European Union, and Argentina, accounting for 56% of exports in 2024.

Trade Facilitation and Competitiveness

·         Uruguay expanded logistics infrastructure, including a new railway to the Port of Montevideo and upgraded cargo management systems.

·         Continued digitalization of customs and trade procedures has reduced processing times and compliance costs.

·         Despite reforms, trade costs remain relatively high due to consular fees, port charges, and limited domestic competition.

Trade Policy and WTO Engagement

·         Uruguay's trade policy remains closely linked to MERCOSUR, while also pursuing bilateral, regional, and multilateral integration.

·         Through MERCOSUR, agreements were signed with the European Free Trade Association, Singapore, and the European Union.

·         Uruguay supports WTO reform, restoration of dispute settlement, agricultural trade liberalization, and accepted the WTO Agreement on Fisheries Subsidies in 2024.

Tariffs and Trade Measures

·         Average applied MFN tariff declined from 9.4% (2017) to 8.2% (2025).

·         Uruguay does not use tariff-rate quotas and rarely employs trade remedies; only one anti-dumping duty remained in force in 2025.

·         Import prohibitions were significantly reduced, with restricted tariff lines falling from 328 to 89 during the review period.

Challenges

·         Severe drought (2020–2023) caused agricultural losses estimated at USD 1.88 billion, reducing exports and affecting electricity generation.

·         State monopolies continue in sectors such as electricity transmission, hydrocarbon refining, and work accident insurance, limiting competition.

Future Priorities

·         Promote export diversification through biotechnology, pharmaceuticals, medical devices, and digital services.

·         Reduce economic dollarization, improve competition, modernize infrastructure, and lower logistics costs.

·         Leverage renewable energy and green industries to strengthen climate resilience and sustainable growth.

 

[ABS News Service/11.06.2026]

The Sixth review of the trade policies and practices of Uruguay takes place on 10 and 12 June 2026. The basis for the review is a report by the WTO Secretariat and a report by the Government of Uruguay.

The following documents are available:

Secretariat report

A detailed report written independently by the WTO Secretariat.

Executive summary

Full report

Government report

A policy statement by the government of the member under review.

Full report

Concluding remarks

Chairperson's concluding remarks (available the day of the second meeting)

From the meeting

The Secretariat and Government reports are discussed by the WTO’s full membership in the Trade Policy Review Body (TPRB).

Background

Trade Policy Reviews are a WTO transparency exercise in which members' trade and related policies and practices are examined at regular intervals. They allow WTO members to ask questions, exchange views, and comment on each other's policies in collective discussions held in the WTO's Trade Policy Review Body.

All WTO members are subject to review. The frequency of each review depends on the member's share of world trade, with the largest traders being reviewed more frequently.