Date: 03/08/2024
Western Hemisphere
U.S.-Uruguay Relations
The Oriental Republic of Uruguay declared independence in 1825 and secured it in 1828, following a three-year conflict with the Empire of Brazil and the dissolution of its federation with Argentina. The United States and Uruguay established diplomatic relations in 1867. The relationship between the United States and Uruguay remains strong, rooted in shared values such as a commitment to democracy, human rights, and the rule of law.
The two countries also share important values, including sound economic policies, strong labor rights, environmental protection, investment in people, the desire to see the peaceful resolution of disputes between nations, and a commitment to the multilateral system.
U.S. Assistance to Uruguay
U.S. assistance plays a crucial role in supporting Uruguay’s efforts to combat terrorism, international crime, and the trafficking of persons, materials, and drugs. Additionally, it focuses on strengthening and maintaining the Uruguayan military’s peacekeeping and disaster response capabilities, contributing to the overall security and stability of the region.
Bilateral Economic Relations
In 2023, the United States remained Uruguay’s fourth largest trading partner and primary export market for goods. Notably, Uruguay’s main imports from the United States include plastics, chemical substances, chemical inputs for agriculture, and computers. Conversely, Uruguay’s primary export products to the United States comprise of beef, beef products, wood, wood panels, and citrus. Of particular significance, the United States emerged as the largest buyer of Uruguay’s citrus in 2021, purchasing 40 percent of its mandarins and oranges. Furthermore, the United States holds the top position as Uruguay’s customer for IT services, with Uruguay exporting more than $1.6 billion in services to the United States in 2022, accounting for 87 percent of IT exports.
Additionally, the United States has made substantial foreign direct investment in Uruguay, exemplified by a proposed $6 billion investment from Texas-based HIF Global, representing the largest investment in Uruguay’s history. Leveraging Uruguay’s strategic location in the heart of Mercosur’s wealthiest and most populated region, as well as its special import regimes such as free trade zones and free trade ports, the country serves as a well-situated distribution center for U.S. goods into the region. Presently, approximately 180 U.S.-owned companies operate in Uruguay, directly or indirectly employing about 30,000 workers. Furthermore, through various agreements, such as the Open Skies Agreement, the Bilateral Investment Treaty, and the Science and Technology agreement, both countries have reinforced their bilateral economic cooperation. Uruguay also plays an active role in the Americas Partnership for Economic Prosperity, co-leading the Entrepreneurship and Clean Hydrogen working groups and creating an Angel Investor Network that supports tech-focused entrepreneurs across the hemisphere, thus contributing to the strengthening of economic ties between Uruguay and the United States.
