Export of goods with free zones 2023

Excutive summary

• Uruguay's free trade zones are special regimes thar promote investment, production and commerce of goods and services. Free trade zones are key to attracting investment, generating qualified employment and diversifying exports.

• Activities in the free trade zones span several economic activities, such as manufacturing and industry to export goods. They are also used as logistics centers for storage and distribution of goods, taking advantage of customs and logistics facilities. In recent years, they have gained relevance as intermediate destinations, and in 2022 these destinations had an unprecedented record of sales.

• Uruguay has 14 facilities authorized to operate under this regime, 12 of which are operational and two are under construction. Between 2019 and 2023, three new permits were granted to operate under the free zone regime, including UPM2, WTC Punta del Este Free Zone and Zona Franca del Plata (in Colonia).

• Sales abroad reached US$ 13,385 million in 2022 and grew 17% in year-over-year terms. This increase was largely due to high international prices of many of the major goods exported by Uruguay, such as meat, soybeans and cellulose. Of this total, 32% was exported from free trade zones (US$ 4.268 billion), because it was produced there or due to the fact that free trade zones are used as an intermediate destination.

• The main goods exported from free zones include cellulose, grains from the Nueva Palmira Free Trade Zone, beverage concentrates and pharmaceutical products. Exports from free trade zones are mainly destined for China and the European Union, which account for more than 60% of the total sales of goods from these free trade zones.