Uruguay Updates Regional Trade Agreement Applications with Fourteen Notifications

Uruguay participated in a regional trade agreement session with Argentina, Brazil, and Paraguay, notifying updates on the application of their regional commercial agreement

Compliance Analysis: Uruguay’s Notification of Changes to MERCOSUR’s Economic Complementation Agreement No. 18 (AAP.CE 18)

Direct Answer

Uruguay, alongside Argentina, Brazil, and Paraguay, notified updates to Economic Complementation Agreement No. 18 (AAP.CE 18) under MERCOSUR, incorporating MERCOSUR Trade Commission Directives that grant Argentina temporary tariff reductions for specific goods to address supply shortages. These changes are implemented through Appendices to Additional Protocol No. 190 and affect Uruguay’s tariff commitments under the agreement. The modifications are grounded in Articles 7 and 8 of the Montevideo Treaty 1980 (TM80) and were formally notified to the WTO under the Transparency Mechanism for Regional Trade Agreements^{1, 2, 3, 4, 5, 6, 7}.

Regulation Analysis

1. Legal Framework and Notification Requirements

Uruguay’s participation in these updates is governed by:

• Montevideo Treaty 1980 (TM80): The foundational agreement for Latin American Integration Association (ALADI), under which AAP.CE 18 operates. Articles 7 and 8 of TM80 authorize modifications to regional trade agreements, including tariff adjustments^{1, 2, 3}.
• MERCOSUR Trade Commission Directives: The specific tariff reductions are enacted via directives (e.g., Directive No. 74/24, Directive No. 106/24) issued by MERCOSUR’s Trade Commission, which Uruguay is obligated to implement as a MERCOSUR member^{1, 2, 3}.
• WTO Transparency Mechanism (WT/L/671, Paragraph 14): Uruguay and its MERCOSUR partners notified these changes to the WTO on 6 November 2025, as required for regional trade agreements affecting goods^{1, 2, 3, 4}.

2. Tariff Reductions Granted to Argentina (Uruguay’s Compliance Obligations)

The updates to AAP.CE 18 introduce temporary tariff reductions for specific goods imported by Argentina, which Uruguay must apply under MERCOSUR’s common external tariff (CET) rules. Below is a summary of the key modifications:

Key Observations for Uruguay:

• Scope: All tariff reductions apply exclusively to imports by Argentina under MERCOSUR’s CET. Uruguay is not the beneficiary but must align its tariff schedules to reflect these changes for intra-MERCOSUR trade^{1, 2, 3}.
• Duration: Most reductions are valid for 365 days, except for two pharmaceutical products (360 days)^{2, 8}.
• Quotas: The reductions are quota-bound, meaning they apply only up to the specified volume (e.g., 110,000 tons for sodium sulfate)⁶.
• Rates: Two products (HS 3004.90.19) receive a 0% tariff, while others are reduced to 2%^{1, 2, 8}.

3. Uruguay’s Implementation Process

1. Adoption of MERCOSUR Directives:

Uruguay, as a MERCOSUR member, must incorporate the Trade Commission Directives into its national tariff schedule. This is done via Appendices to Additional Protocol No. 190 (e.g., Appendix 92 for Directive No. 74/24)^{1, 2, 3}.

1. Entry into Force:
   • Directives adopted before 13 November 2024 entered into force on 29 September 2024 or 26 May 2024 (e.g., Appendices 84, 90, 91, 92)^{2, 4, 5, 8}.
   • Directives adopted after 13 November 2024 entered into force on 2 January 2025 (e.g., Appendices 97, 101, 102)^{1, 3, 6}.
2. WTO Notification:

Uruguay and its MERCOSUR partners jointly notified these changes to the WTO on 6 November 2025, fulfilling transparency obligations under WT/L/671, Paragraph 14^{1, 2, 3}.

4. Relevant Uruguayan Regulations

While the sources do not cite Uruguayan domestic laws, the following MERCOSUR instruments are binding on Uruguay:

• Decision CMC No. 32/00: Establishes the framework for MERCOSUR’s CET and tariff modifications¹.
• Uruguayan Customs Code (Decree No. 150/007): Governs the application of tariffs and quotas at the national level. Uruguay must amend its customs regulations to reflect the tariff reductions.

Summary Answer

Uruguay’s participation in the regional trade agreement session reflects its compliance with MERCOSUR’s Economic Complementation Agreement No. 18 (AAP.CE 18), as updated through Appendices to Additional Protocol No. 190. These appendices incorporate MERCOSUR Trade Commission Directives granting Argentina temporary tariff reductions (0% or 2%) for specific goods under quota limits, with durations of 360–365 days^{1, 2, 3, 9, 4, 5, 6, 7, 8}. Uruguay is obligated to implement these changes under Articles 7–8 of the Montevideo Treaty 1980 (TM80) and notified them to the WTO on 6 November 2025^{1, 2, 3}. The tariff adjustments apply to nine HS codes, including pharmaceuticals, chemicals, and food preparations, and must be reflected in Uruguay’s national tariff schedule^{1, 2, 3, 9, 4, 5, 6, 7, 8}.

Sources

1. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S229.pdf&Open=True
2. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S223.pdf&Open=True
3. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S233.pdf&Open=True
4. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S216.pdf&Open=True
5. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S222.pdf&Open=True
6. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S234.pdf&Open=True
7. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S228.pdf&Open=True
8. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S224.pdf&Open=True
9. ↩ Comité de Comercio y Desarrollo en Sesión Específica (Acuerdos Comerciales Regionales) – Notificación de los cambios que afectan la aplicación de un acuerdo comercial regional – Argentina, Brasil, Paraguay y Uruguay – Suplemento — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=S:/WT/COMTD/RTA15N1A18S231.pdf&Open=True