Recent changes to the HC laws have effectively nationalised Reserves and Resources, although the application of the law is somewhat patchy.
August 19, 2023
Americas - South
There are no active contracts in Uruguay, but future participation will be conducted under a Production Sharing Contract ("PSC") fiscal system. Cost recovery and production sharing rates will be bid items, linked to cumulative production levels and prevailing prices. There is no royalty or income tax liability.
Over the past decade, Uruguay strengthened bilateral trade, investment, and political ties with the People’s Republic of China (PRC), which was its principal trade partner in goods from 2013 until 2022 when it fell to second place behind Brazil. In 2018, Uruguay was the first country in the Southern Cone to join the PRC’s Belt and Road Initiative. Uruguay formally joined the Asian Infrastructure Investment Bank in 2020. In September 2021, the government announced that it would start negotiating a free trade agreement with the PRC, independently from its Mercosur partners. A feasibility study was concluded in July 2022, but negotiations have not advanced as of writing. In 2022, Uruguay’s Mercosur partners made unprecedented joint public statements opposing Uruguay’s efforts to seek a bilateral trade agreement with the PRC as well as Uruguay’s push to adhere to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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