World Country Guide

Business Profile

Economy
Uruguay is one of the more prosperous Latin American countries. The economy has a traditionally strong agricultural sector, with beef and wool being the most important products; dairy exports to other Latin American countries are substantial. Crop farming is widespread, producing mostly cereals, rice, fruit and vegetables. Manufacturing is concentrated in oil and coal-derived products, chemicals, textiles, transport equipment and leather products. The oil and coal, both for manufacturing and energy consumption (the latter supplemented by Uruguay’s own hydroelectricity stations), are imported. Mining is confined to small-scale extraction of building materials, industrial minerals and some gold. The tourism industry brings in just under US$1 billion annually. Uruguay’s economic health depends heavily on that of its two large neighbours, Argentina and Brazil. Both Latin American giants have been in the doldrums since the turn of the millennium, then, in August 2002, both Argentina and, to a lesser extent, Brazil were gripped by financial crises. This led to a collapse in the cross-border trade upon which Uruguay is heavily dependent. The government was forced to take emergency measures in the form of currency devaluation, loan rescheduling and, in an unusually drastic move, closing down the country’s entire financial system as it approached meltdown. It also appealed for support from the IMF, which responded with a US$3 billion package. With the worst of the crisis past, Uruguay is now returning to something approaching economic health. Uruguay is a member of Mercosur, the principal regional trade bloc, as well as the Asociacin Latinoamericana de Integracin (ALADI) and the Inter-American Development Bank. The country’s main trading partners are Brazil, Argentina, the USA and Germany.

Business
Businessmen should wear conservative suits and ties. As far as communication is concerned, some knowledge of Spanish will prove invaluable, although English may be spoken by many in business and tourist circles. Appointments are necessary and punctuality is expected. Visiting cards are essential and it would be an advantage to have the reverse printed in Spanish. Avoid visits during Carnival week. Office hours: Mon-Fri 0830-1200 and 1430-1830.

Commercial Information
The following organisations can offer advice: Cmara Nacional de Comercio y Servicios del Uruguay, Rincn 454, Piso 2, CP 11000, Codigo Postal 1000, Montevideo (tel: (2) 916 1277; fax: (2) 916 1243; e-mail: gerencia@cncs.com.uy; website: www.cncs.com.uy); or Uruguayan American Chamber of Commerce, 1710 First Avenue, Suite 333, New York, NY 10128, USA (tel: (212) 722 3306; fax: (212) 996 2580; e-mail: gateway@uruguaychamber.com; website: www.uruguaychamber.com).