The agreement between these two organizations (Acuerdo de Complementacion Econémica No. 59) came into force in October 2004 and aims to liberalize 80 per cent of trade between blocs. Uruguay also concluded a bilateral trade agreement with Mexico (2003) that allows the free movement of goods and services between the two countries. In December 2000, the founding countries of MERCOSUR (Argentina, Brazil, Paraguay and Uruguay) signed a framework agreement establishing a free trade area between Mercosur and the Southern African Customs Union (Botswana, Lesotho, Namibia, South Africa and Swaziland). A preferential trade agreement came into force in 2016. Twenty-nine investment promotion and investment protection agreements are currently in force in Uruguay. Three of these agreements (Chile, Mexico and the United States) include the establishment. Agreements with Germany, the Netherlands, Switzerland, Hungary, Italy, Romania, Poland, the United Kingdom, Belgium, Belgium, France, China, Malaysia, Canada, the Czech Republic, Venezuela, Sweden, Portugal, Panama, Israel, El Salvador, Australia, Finland, Armenia, Vietnam, Korea are agreements after their creation. Nevertheless, in January 2007, Uruguay signed a Framework Agreement on Trade and Investment (TIFA) with the United States. Many observers saw it as a first step towards signing a free trade agreement.
ALADI is a trade association based in Montevideo, which includes ten South American countries as well as Cuba, Mexico and Panama. Uruguay has concluded numerous bilateral trade agreements of varying scope with ALADI partners. Under alADI`s economic agreements, Uruguayans enjoy special preferential access to trade with Bolivia, Chile, Colombia, Cuba, Ecuador, Mexico, Peru and Venezuela. ALADI`s General Regional Tariff Preference Mechanism (PAR) applies to goods traded between all Member States and reduces the percentage of applicable tariffs. It describes the bilateral and multilateral trade agreements to which that country belongs, including with the United States. Includes websites and other resources that allow U.S. companies to get more information about how they can use these agreements. In addition to Uruguay`s privileged geographical location and attractive investment regimes, Uruguay has 13 preferential trade agreements and three service agreements that make it an excellent point of access for major economic markets. In 2019, MERCOSUR has also made progress in negotiating with other partners, such as Korea, Canada and Singapore, to conclude trade agreements with markets that represent strong trade potential for both the bloc and Uruguay. These agreements provide fiscal stability and predictability by creating mechanisms to prevent double taxation and specifying which of the States Parties is responsible for the main income and wealth taxes.
This will be achieved by renouncing the jurisdiction of one state or introducing maximum rates in the event of double taxation and by creating mechanisms to deduct or exempt taxes paid in another jurisdiction. At the end of April, Argentina announced to its Mercosur partners, Brazil, Paraguay and Uruguay, that they would withdraw from trade negotiations already concluded with the European Union and the European Free Trade Association. This unilateral decision caused shockwaves on the part of Mercosur, as it implied a possible dissolution of the trading bloc.