Uruguay

 

Bureau of Western Hemisphere Affairs                                          
June 2007                                                                     
                                                                       
  Background Note: Uruguay                                                    
                                                                       
  Flag of Uruguay is nine equal horizontal stripes of white (top and bottom)  
  alternating with blue; there is a white square in the upper hoist-side corner
  with a yellow sun bearing a human face known as the Sun of May and 16 rays  
  alternately triangular and wavy.                                            
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Oriental Republic of Uruguay                                                
                                                                       
  Geography                                                                   
  Area: 176,000 sq. km. (68,000 sq. mi.); slightly smaller than Oklahoma.     
  Cities: Capital--Montevideo (est. pop. 1.4 million).                        
  Terrain: Plains and low hills; 84% agricultural.                            
  Climate: Temperate.                                                         
                                                                       
  People                                                                      
  Nationality: Noun and adjective--Uruguayan(s).                              
  Population (2006): 3.3 million.                                             
  Annual growth rate: 0.3%.                                                   
  Ethnic groups (est.): European descent 93%, African descent 6%, mestizo 1%. 
  Religions: Roman Catholic 52%, Protestant and other Christian 16%, Jewish 2%,
  non-professing or other 30%.                                                
  Language: Spanish.                                                          
  Education: Literacy (2004)--97.7%.                                          
  Health (2005): Life expectancy--75.6 yrs. (79.4 yrs females; 72.0 yrs.      
  males). Infant mortality rate--14.3/1,000.                                  
  Work force (1.3 million, 2006): Manufacturing--16%; agriculture--7%;        
  commerce, restaurants & hotels--23%; other services--43%.                   
                                                                       
  Government                                                                  
  Type: Republic.                                                             
  Independence: 1825.                                                         
  Constitution: First 1830, current 1967, most recently amended December 1996.
  Branches: Executive--president (chief of state and head of government).     
  Legislative--General Assembly consisting of a 99-seat Chamber of Deputies and
  a 30-seat Senate. Judicial--Supreme Court of Justice.                       
  Administrative subdivisions: 19 departments with limited autonomy.          
  Political parties/coalitions: Colorado Party, Blanco (National) Party,      
  Encuentro Progresista-Frente Amplio, Nuevo Espacio.                         
  Suffrage: Universal at 18.                                                  
                                                                       
  Economy                                                                     
  Gross domestic product (GDP): $19.3 billion; $16.8 billion (2005); $13.2    
  billion (2004).                                                             
  Annual growth rate: +7.0% (2006); +6.6% (2005); +12.3% (2004); +2.5% (2003);
  -11.0% (2002).                                                              
  Per capita GDP: $5,828; $5,200 (2005); $4,100 (2004).                       
  Natural resources: Arable land, pastures, hydroelectric power, granite,     
  marble.                                                                     
  Agriculture (8.9% of GDP): Products--beef, wool, rice, wheat, barley, corn. 
  Industry (22.2% of GDP): Types--meat processing, wool, textiles, leather,   
  leather apparel, beverages and tobacco, chemicals, cement, petroleum        
  refining.                                                                   
  Services: About 60% of GDP.                                                 
  Trade: Exports (f.o.b.)--$4.0 billion: meat, wool, hides, leather, wool     
  products, fish, rice, furs. Major markets--United States (22%), Brazil (13%),
  Argentina (8%), Germany (4%). Imports (c.i.f.)--$3.9 billion: machinery,    
  chemicals, fuel, vehicles. Major suppliers--Brazil (26%); Argentina (25%),  
  United States (8%), China (8%), Germany (3%).                               
                                                                       
  PEOPLE                                                                      
  Uruguayans share a Spanish linguistic and cultural background, even though  
  about one-quarter of the population is of Italian origin. Most are nominally
  Roman Catholic although the majority of Uruguayans do not actively practice a
  religion. Church and state are officially separated.                        
                                                                       
  Uruguay is distinguished by its high literacy rate, large urban middle class,
  and relatively even income distribution. The average Uruguayan standard of  
  living compares favorably with that of most other Latin Americans.          
  Metropolitan Montevideo, with about 1.4 million inhabitants, is the only    
  large city. The rest of the urban population lives in about 20 towns. During
  the past two decades, an estimated 500,000 Uruguayans have emigrated,       
  principally to Argentina and Spain. Emigration to the United States also rose
  significantly. As a result of the low birth rate, high life expectancy, and 
  relatively high rate of emigration of younger people, Uruguay's population is
  quite mature.                                                               
                                                                       
  HISTORY                                                                     
  The only inhabitants of Uruguay before European colonization of the area were
  the Charrua Indians, a small tribe driven south by the Guarani Indians of   
  Paraguay. The Spanish discovered the territory of present-day Uruguay in    
  1516, but the Indians' fierce resistance to conquest, combined with the     
  absence of gold and silver, limited settlement in the region during the 16th
  and 17th centuries. The Spanish introduced cattle, which became a source of 
  wealth in the region. Spanish colonization increased as Spain sought to limit
  Portugal's expansion of Brazil's frontiers.                                 
                                                                       
  Montevideo was founded by the Spanish in the early 18th century as a military
  stronghold; its natural harbor soon developed into a commercial center      
  competing with Argentina's capital, Buenos Aires. Uruguay's early 19th      
  century history was shaped by ongoing conflicts between the British, Spanish,
  Portuguese, and colonial forces for dominance in the Argentina-Brazil-Uruguay
  region. In 1811, Jose Gervasio Artigas, who became Uruguay´s national hero, 
  launched a successful revolt against Spain. In 1821, the Provincia Oriental 
  del Rio de la Plata, present-day Uruguay, was annexed to Brazil by Portugal.
  The Provincia declared independence from Brazil in August 25, 1825 (after   
  numerous revolts in 1821, 1823, and 1825) but decided to adhere to a regional
  federation with Argentina.                                                  
                                                                       
  The regional federation defeated Brazil after a 3-year war. The 1828 Treaty 
  of Montevideo, fostered by the United Kingdom, gave birth to Uruguay as an  
  independent state. The nation's first constitution was adopted in 1830. The 
  remainder of the 19th century, under a series of elected and appointed      
  presidents, saw interventions by neighboring states, political and economic 
  fluctuations, and large inflows of immigrants, mostly from Europe. Jose     
  Batlle y Ordoñez, president from 1903 to 1907 and again from 1911 to 1915,  
  set the pattern for Uruguay's modern political development. He established  
  widespread political, social, and economic reforms such as a welfare program,
  government participation in many facets of the economy, and a plural        
  executive. Some of these reforms were continued by his successors.          
                                                                       
  By 1966, economic, political, and social difficulties led to constitutional 
  amendments, and a new constitution was adopted in 1967. In 1973, amid       
  increasing economic and political turmoil, the armed forces closed the      
  Congress and established a civilian-military regime, characterized by       
  repression and widespread human rights abuses. A new constitution drafted by
  the military was rejected in a November 1980 plebiscite. Following the      
  plebiscite, the armed forces announced a plan for return to civilian rule.  
  National elections were held in 1984. Colorado Party leader Julio Maria     
  Sanguinetti won the presidency and served from 1985 to 1990. The first      
  Sanguinetti administration implemented economic reforms and consolidated    
  democracy following the country's years under military rule.                
                                                                       
  Sanguinetti's economic reforms, focusing on the attraction of foreign trade 
  and capital, achieved some success and stabilized the economy. In order to  
  promote national reconciliation and facilitate the return of democratic     
  civilian rule, Sanguinetti secured public approval by plebiscite of a       
  controversial general amnesty for military leaders accused of committing    
  human rights violations under the military regime, and sped the release of  
  former guerrillas.                                                          
                                                                       
  The National Party's Luis Alberto Lacalle won the 1989 presidential election
  and served from 1990 to 1995. Lacalle executed major structural economic    
  reforms and pursued further liberalization of the trade regime. Uruguay     
  became a founding member of MERCOSUR in 1991 (the Southern Cone Common      
  Market, which includes Argentina, Brazil, and Paraguay). Despite economic   
  growth during Lacalle's term, adjustment and privatization efforts provoked 
  political opposition, and some reforms were overturned by referendum.       
                                                                       
  In the 1994 elections, former President Sanguinetti won a new term, which ran
  from 1995 until March 2000. As no single party had a majority in the General
  Assembly, the National Party joined with Sanguinetti's Colorado Party in a  
  coalition government. The Sanguinetti government continued Uruguay's economic
  reforms and integration into MERCOSUR. Other important reforms were aimed at
  improving the electoral system, social security, education, and public      
  safety. The economy grew steadily for most of Sanguinetti's term, until low 
  commodity prices and economic difficulties in its main export markets caused
  a recession in 1999, which continued into 2003.                             
                                                                       
  The 1999 national elections were held under a new electoral system          
  established by constitutional amendment. Primaries in April decided single  
  presidential candidates for each party, and national elections on October 31
  determined representation in the legislature. As no presidential candidate  
  received a majority in the October election, a runoff was held in November. 
  In the runoff, Colorado Party candidate Jorge Batlle, aided by the support of
  the National Party, defeated Frente Amplio candidate Tabaré Vázquez.        
                                                                       
  The legislative coalition of the Colorado and National parties that held    
  during most of Batlle´s administration ended in November 2002, when the     
  Blancos withdrew their ministers from the cabinet. Throughout most of his   
  administration, President Batlle had to handle Uruguay´s largest economic   
  crisis in recent history, which impacted on poverty and led to increased    
  emigration. Aside from successfully addressing the crisis, Batlle increased 
  international trade, attracted foreign investment and tried to resolve issues
  related to Uruguayans who disappeared during the military government.       
                                                                       
  The two traditional political parties, the National ("Blanco") and Colorado 
  parties, which were founded in the early 19th century, in the past garnered 
  about 90% of the vote but have seen their share decline over the past       
  decades. At the same time the share of the Frente Amplio, a coalition of    
  various left-of-center factions that became the largest political force in  
  1999, was on the rise. In October 2004 presidential elections, Tabare Vazquez
  ran against the Blanco candidate Jorge Larranaga, a former state governor and
  senator who got 34.3% of votes, and against the Colorado candidate, former  
  Interior Minister Stirling who got 10.4%. President Vazquez won the elections
  in the first round, with 50.5% of ballots, and his party achieved           
  parliamentary majority. The Frente Amplio has ruled Montevideo since 1990.  
                                                                       
  During its first 27 months in power, the Vázquez administration made good on
  its campaign promise to re-examine the human rights abuses committed during 
  the period of military dictatorship and uncovered important forensic        
  evidence. Bilateral relations with Argentina were strained by an ongoing    
  dispute over the construction in Uruguay of large wood pulp mills on a shared
  river. Legislation tended to pass easily as the Frente Amplio enjoyed       
  majorities in both houses of congress.                                      
                                                                       
  GOVERNMENT AND POLITICAL CONDITIONS                                         
  Uruguay's 1967 constitution institutionalizes a strong presidency, subject to
  legislative and judicial checks. The president's term is 5 years. Thirteen  
  cabinet ministers, appointed by the president, head executive departments.  
  The constitution provides for a bicameral General Assembly responsible for  
  enacting laws and regulating the administration of justice. The General     
  Assembly consists of a 30-member Senate, presided over by the vice president
  of the republic, and a 99-member Chamber of Deputies. In the October 2004   
  general elections, the Frente Amplio won the presidency in the first round  
  with 50.7% and a majority of the seats in each chamber. The National (Blanco)
  Party won 34.1%, the Colorado Party 10.3%, and the Independent Party 1.8%.  
                                                                       
  The highest court is the Supreme Court; below it are appellate and lower    
  courts and justices of the peace. In addition, there are electoral and      
  administrative ("contentious") courts, an accounts court, and a military    
  judicial system.                                                            
                                                                       
  Principal Government Officials                                              
  President--Tabaré Ramón Vázquez Rosas                                       
  Minister of Foreign Affairs--Reinaldo Apolo Gargano Ostuni                  
  Ambassador to the United States--Carlos Alberto Gianelli Derois             
  Ambassador to the United Nations--Alejandro Artucio Rodriguez               
  Ambassador to the OAS--Dr. Lujan Flores                                     
                                                                       
  Uruguay maintains an Embassy in the United States at 1913 "I" Street NW,    
  Washington, DC 20006 (tel. 202-331-1313, fax 202-331-8142). Uruguay maintains
  consulates in Chicago, Miami, Los Angeles, New York and San Juan, Puerto    
  Rico.                                                                       
                                                                       
  ECONOMY                                                                     
  Uruguay's economy remains dependent on agriculture. Agriculture and         
  agri-industry account for 23% of GDP, and for over two-thirds of total      
  exports. Leading economic sectors include meat processing, agribusiness,    
  wood, wool, leather production and apparel, textiles, and chemicals. Though 
  still small, the information software industry is growing rapidly.          
                                                                       
  In 2002, Uruguay went through the steepest economic and financial crisis in 
  recent history, which developed mostly from external factors. Devaluation in
  Brazil in 1999 made Uruguayan goods less competitive, and an outbreak of foot
  and mouth disease in 2001 curtailed beef exports to North America. Starting 
  in late 2001, an economic crisis in Argentina undermined Uruguay's economy, 
  with exports to Argentina and tourist revenues falling dramatically. In     
  mid-2002 Argentine withdrawals from Uruguayan banks started a bank run that 
  was overcome only by massive borrowing from international financial         
  institutions. This, in turn, led to serious debt sustainability problems. A 
  successful debt swap helped restore confidence and significantly reduced    
  country risk.                                                               
                                                                       
  Uruguay's economy resumed growth in 2003--with a 2.5% rise in GDP--and surged
  in 2004 and 2005 with growth rates of 12.3% and 6.6%, respectively. Growth  
  equaled 7.0% in 2006 and is expected to reach 4.5% in 2007.                 
                                                                       
  Uruguay's spectacular recovery over the past couple of years has been based 
  on increased exports, especially to North America. The U.S. became Uruguay's
  largest export market in 2004, thanks in large part to meat exports. Uruguay
  enjoys a positive investment climate, with a strong legal system and open   
  financial markets. It grants equal treatment to national and foreign        
  investors and, aside from very few sectors, there is neither de jure nor de 
  facto discrimination toward investment by source or origin.                 
                                                                       
  Uruguay has traditionally favored substantial state involvement in the      
  economy, and privatization is still widely opposed. Recent governments have 
  carried out cautious programs of economic liberalization similar to those in
  many other Latin American countries. They included lowering tariffs,        
  controlling deficit spending, reducing inflation, and cutting the size of   
  government.                                                                 
                                                                       
  Uruguay's economy is based on free enterprise and private ownership. In spite
  of some de-monopolization and privatization over the past ten years, the    
  state continues to play a major role in the economy, owning either fully or 
  partially, companies in insurance, water supply, electricity, telephone     
  service, petroleum refining, airlines, postal service, railways, and banking.
                                                                       
  NATIONAL SECURITY                                                           
  The armed forces are constitutionally subordinate to the president through  
  the minister of defense. By offering early retirement incentives, the       
  government has trimmed the armed forces to about 14,500 for the army, 6,000 
  for the navy, and 3,000 for the air force. As of February 2005, Uruguay's   
  contributions amounted to 44% of the total UN peace keeping troops sent by  
  the region (2,486 soldiers and officers in 11 UN peacekeeping missions). As 
  of August 2006, Uruguay had nearly 1,150 military personnel deployed to Haiti
  in support of MINUSTAH; its other major PKO troop deployment was in the     
  Congo.                                                                      
                                                                       
  FOREIGN RELATIONS                                                           
  Uruguay traditionally has had strong political and cultural links with its  
  neighbors and Europe. With globalization and regional economic problems, its
  links to North America have strengthened. Uruguay is a strong advocate of   
  constitutional democracy, political pluralism, and individual liberties. Its
  international relations historically have been guided by the principles of  
  non-intervention, multilateralism, respect for national sovereignty, and    
  reliance on the rule of law to settle disputes. Uruguay's international     
  relations also reflect its drive to seek export markets and foreign         
  investment. It is a founding member of MERCOSUR, the Southern Cone Common   
  Market also composed of Argentina, Brazil, and Paraguay. As of December 2006,
  Venezuela was in the process of becoming MERCOSUR's fifth full member, and  
  Chile, Bolivia, Colombia, Ecuador, and Peru were associate members.         
                                                                       
  Uruguay is a member of the Rio Group, an association of Latin American states
  that deals with multilateral security issues (under the Inter-American Treaty
  of Reciprocal Assistance). Uruguay's location between Argentina and Brazil  
  makes close relations with these two larger neighbors and MERCOSUR associate
  members Chile and Bolivia particularly important. Usually considered a      
  neutral country and blessed with a professional diplomatic corps, Uruguay is
  often called on to preside over international bodies. Uruguay is a member of
  the Latin American Integration Association (ALADI), a trade association based
  in Montevideo that includes 10 South American countries plus Mexico and Cuba.
                                                                       
  U.S.-URUGUAYAN RELATIONS                                                    
  U.S.-Uruguayan relations traditionally have been based on a common outlook  
  and emphasis on democratic ideals. In 2002, Uruguay and the U.S. created a  
  Joint Commission on Trade and Investment (JCTI) to exchange ideas on a      
  variety of economic topics. In March 2003, the JCTI identified six areas of 
  concentration until the eventual signing of the Free Trade Area of the      
  Americas (FTAA): customs issues, intellectual property protection,          
  investment, labor, environment, and trade in goods. In late 2004, Uruguay and
  the U.S. signed an Open Skies Agreement, which was ratified in May 2006. In 
  November 2005, they signed a Bilateral Investment Treaty (BIT), which entered
  into force on November 1, 2006. A Trade and Investment Framework Agreement  
  (TIFA) was signed in January 2007. More than 80 U.S.-owned companies operate
  in Uruguay, and many more market U.S. goods and services.                   
                                                                       
  Uruguay cooperates with the U.S. on law enforcement matters such as regional
  efforts to fight drug trafficking and terrorism. It has also been very active
  in human rights issues.                                                     
                                                                       
  From 1999 through early 2003 Uruguayan citizens were exempted from visas when
  entering the United States under the Visa Waiver Program. This exemption was
  withdrawn on April 16, 2003, based on the high overstay rates for Uruguayans
  and worldwide national security concerns.                                   
                                                                       
  Principal U.S. Embassy Officials                                            
  Ambassador--Frank E. Baxter                                                 
  Deputy Chief of Mission--James D. Nealon                                    
  Political/Economic Counselor--Peter Harding                                 
  Economic/Commercial Section Chief--James Perez                              
  Consul--Blossom Perry                                                       
  Chief, Management Section--Theresa Stewart                                  
  Public Affairs Officer--Linda González                                      
  Defense Attaché--LTC Frank Wagdalt, USA                                     
  Chief, Office of Defense Cooperation--Col. Maria Cordero, USAF              
                                                                       
  The U.S. Embassy in Uruguay is located at Lauro Muller 1776, Montevideo (tel:
  598-2 418-7777; fax: 598-2-410-0022). The mailing address for the embassy is
  UNIT 4500, APO AA 34035. The Embassy also has an Internet web page at http://
  montevideo.usembassy.gov/                                                   
                                                                       
  Other Contact Information                                                   
  U.S. Department of Commerce                                                 
  Trade Information Center                                                    
  International Trade Administration                                          
  14th and Constitution Avenue, NW                                            
  Washington, DC 20230                                                        
  Tel: 800-USA-TRADE                                                          
  Home page: http://www.export.gov/                                           
                                                                       
  American Chamber of Commerce in Uruguay                                     
  Plaza Independencia 831, Oficina 209                                        
  Edificio Plaza Mayor                                                        
  11100 Montevideo, Uruguay                                                   
  Tel: (5982) 908-9186                                                        
  Fax: (5982) 908-9187                                                        
  Home page: http://www.ccuruguayusa.com/                                     
  E-mail: info@ccuruguayusa.com                                               
                                                                       
  TRAVEL AND BUSINESS INFORMATION                                             
  The U.S. Department of State's Consular Information Program advises Americans
  traveling and residing abroad through Consular Information Sheets, Public   
  Announcements, and Travel Warnings. Consular Information Sheets exist for all
  countries and include information on entry and exit requirements, currency  
  regulations, health conditions, safety and security, crime, political       
  disturbances, and the addresses of the U.S. embassies and consulates abroad.
  Public Announcements are issued to disseminate information quickly about    
  terrorist threats and other relatively short-term conditions overseas that  
  pose significant risks to the security of American travelers. Travel Warnings
  are issued when the State Department recommends that Americans avoid travel 
  to a certain country because the situation is dangerous or unstable.        
                                                                       
  For the latest security information, Americans living and traveling abroad  
  should regularly monitor the Department's Bureau of Consular Affairs Internet
  web site at http://www.travel.state.gov, where the current Worldwide Caution,
  Public Announcements, and Travel Warnings can be found. Consular Affairs    
  Publications, which contain information on obtaining passports and planning a
  safe trip abroad, are also available at http://www.travel.state.gov. For    
  additional information on international travel, see http://www.usa.gov/     
  Citizen/Topics/Travel/International.shtml.                                  
                                                                       
  The Department of State encourages all U.S citizens who traveling or residing
  abroad to register via the State Department's travel registration website or
  at the nearest U.S. embassy or consulate abroad. Registration will make your
  presence and whereabouts known in case it is necessary to contact you in an 
  emergency and will enable you to receive up-to-date information on security 
  conditions.                                                                 
                                                                       
  Emergency information concerning Americans traveling abroad may be obtained 
  by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular   
  toll line 1-202-501-4444 for callers outside the U.S. and Canada.           
                                                                       
  The National Passport Information Center (NPIC) is the U.S. Department of   
  State's single, centralized public contact center for U.S. passport         
  information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service   
  representatives and operators for TDD/TTY are available Monday-Friday, 7:00 
  a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.           
                                                                       
  Travelers can check the latest health information with the U.S. Centers for 
  Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP
  (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the
  most recent health advisories, immunization recommendations or requirements,
  and advice on food and drinking water safety for regions and countries. A   
  booklet entitled "Health Information for International Travel" (HHS         
  publication number CDC-95-8280) is available from the U.S. Government       
  Printing Office, Washington, DC 20402, tel. (202) 512-1800.                 
                                                                       
  Further Electronic Information                                              
  Department of State Web Site. Available on the Internet at http://          
  www.state.gov, the Department of State web site provides timely, global     
  access to official U.S. foreign policy information, including Background    
  Notes and daily press briefings along with the directory of key officers of 
  Foreign Service posts and more. The Overseas Security Advisory Council (OSAC)
  provides security information and regional news that impact U.S. companies  
  working abroad through its website http://www.osac.gov                      
                                                                       
  Export.gov provides a portal to all export-related assistance and market    
  information offered by the federal government and provides trade leads, free
  export counseling, help with the export process, and more.                  
  STAT-USA/Internet, a service of the U.S. Department of Commerce, provides   
  authoritative economic, business, and international trade information from  
  the Federal government. The site includes current and historical            
  trade-related releases, international market research, trade opportunities, 
  and country analysis and provides access to the National Trade Data Bank.   

 

***********************************************************
See http://www.state.gov/r/pa/bgn/ for all Background notes
************************************************************
To change your subscription, go to http://www.state.gov/misc/echannels/66822.htm