Uruguay international trade and investment expansion

Uruguay is actively pursuing international economic expansion through both regional partnerships and new global strategic ties.

In Brazil, Uruguay XXI has focused on promoting trade and investment, highlighting Brazil as a primary strategic partner. Brazil accounts for approximately 15% of Uruguayan exports and holds a significant stock of foreign direct investment in the country. Recent data indicates that Brazil has led the ranking of investment inquiries received by Uruguay since 2024.

Simultaneously, Uruguay is working to deepen relations with India. Leveraging its presidency of Mercosur, Uruguay has been pushing for trade negotiations between India and the Mercosur bloc. This diplomatic effort follows high-level meetings between Indian Prime Minister Narendra Modi and Uruguayan President Yamandú Orsi, as well as Uruguay’s participation in the BRICS summit as an outreach invitee. The bilateral relationship with India has been further strengthened by the opening of an Indian embassy in Montevideo.

Building on these efforts, India and the Mercosur trade bloc have officially launched negotiations to expand their existing preferential trade agreement. The proposal aims to significantly increase the number of products covered by tariff preferences, moving from approximately 450 per side to nearly 3,000. This expansion follows bilateral trade between India and the Mercosur grouping that reached approximately US$21 billion in 2025. Additionally, both parties have executed a protocol to modernize customs procedures and facilitate paperless commerce.

As of October 2026, Brazil and India are working to expand this existing preferential trade agreement to provide broader market access. Brazilian Minister of Development, Industry, Trade and Services Márcio Elias Rosa indicated that both nations have completed work on the terms of reference required to pave the way for negotiations on a more comprehensive arrangement. The long-term objective is to upgrade the framework into a full Free Trade Agreement (FTA) encompassing both goods and services.