The Impact Trade meeting came to Uruguay and praised its climate actions and thriving investment ecosystem

Uruguay’s early awareness of climate action, its commitment to decarbonizing the atmosphere, sustainable livestock farming, and its innovative integration of environmental sustainability with its financial strategy were the main topics addressed at the opening panel of the Impact Trade meeting, which was held at the World Trade Center Free Zone in Montevideo and continued later in Maldonado. Marca País supported the event through Uruguay XXI.

The objective of Impact Trade, a meeting that previously took place in Tuscany, Barcelona, Santiago de Chile, and Buenos Aires, is to bring together international trade entrepreneurs interested in solving environmental and social problems in the markets they access. This is done through walking rounds (business rounds walking in the open air, in natural environments that create an ideal framework to achieve bonds of trust quickly), which in this edition were held at the Agua Verde ranch and hotel and in Casapueblo.

The opening ceremony was attended by authorities from the Chamber of Commerce, Uruguay XXI, Endeavor, the National Agency for Research and Innovation (ANII), the Ministry of Economy and Finance, and representatives of B companies such as Salus, Danone and Sol Dorado.

Stability, an asset of Uruguay

Uruguay as a platform to internationalize business in the region was the topic of the panel in which the deputy executive director of Uruguay XXI, Eduardo Rodríguez, highlighted that the country was constituted as a “regional hub for business” based on its stability, an asset that according to Rodríguez the country “protects.”

“We generate legal and tax tools that contribute to exchange freedom and freedom in general to do business,” he added.

He also referred to the results of the recent survey presented by Uruguay XXI and Equipos Consultores, according to which 84% of foreign companies investing in Uruguay are satisfied with the investment climate, and 40% would reinvest in the next five years. This study concluded that the business climate in Uruguay is the best in recent years. Learn more about this survey by clicking here.

“Uruguay has an outstanding history for its education and public health; we were among the first countries in the world to give women the right to vote,” he recalled. “In terms of governance, international rankings highlight us in terms of low corruption, respect for laws, democracy, and others related to governance,” he added.

Rodriguez also highlighted the free trade zone system, the free exchange rate, and the qualified human capital offered by the country.

For her part, the executive director of Endeavor Uruguay, Analía Migues, spoke of Uruguay as a node of innovation and a platform for internationalizing companies. She also stated that the country was able to adapt to the challenge brought by entrepreneurs in the formation of talent.

The panel closed with the participation of the general manager of the agricultural company Sol Dorado, Sebastián Olaso, and the general manager of Danone Uruguay, Martín Armand Ugon, who praised Uruguay’s capacity to receive and promote triple-impact companies.

Olaso said that meat consumption worldwide is on the rise and described the path his company took to achieve the first Carbon Neutral Meat seal in South America, verified by the international certifier LSQA.

Its primary market is Korea, where it reaches the end consumer with a measured carbon footprint. Olaso related the importance of certifications to credibility. “Credibility is fundamental. You can’t just say what you do; the consumer has to see that there is a seal that says this is so,” he said.

How do I reach a new market?

“More than 53% of a country’s GDP comes from international trade. How do I reach a new market? Are we only going to reach it to get what is convenient for us, or are we going to participate in the environmental and social solutions that this market needs?” was the question with which Pedro Tarak, the main inspiration for the event and founder of Sistema B, opened the exchange.

The Uruguayan Chamber of Commerce and Services vice president, Anabela Aldaz, underlined Uruguay’s good reputation for its economic, democratic, institutional, and legislative stability.

“Uruguayan business has a growing commitment to impact issues,” she said, adding that there is a “change of head” and a growing demand in which sustainability, the environment, and the search for gender equality are present.

The financial aspect of sustainability was then addressed by the director of the Debt Management Unit of the Ministry of Economy and Finance (MEF), Herman Kamil, who focused on the green bond created in Uruguay in 2022 as an innovative financial instrument. Kamil highlighted the changes in the interactions with investors, in which environmental and social awareness began to weigh.

In this regard, he pointed out that when it comes to investing, investors no longer only ask about the fiscal deficit, employment, and the balance of payments but also consider Uruguay’s climate policies, which shows an accelerated change in the paradigm of international finance.

With the issuance of the green bond or debt security, whose rate has environmental indicators as binding aspects, the MEF sought to build a “bridge between finance and climate action,” explained Kamil.

“The two binding aspects are related to the reduction of greenhouse gas intensity per unit of GDP and a commitment not to deforest or protect Uruguay’s native forests,” he said.

On the other hand, Uruguay’s innovative qualities were addressed by the president of the National Agency for Research and Innovation (ANII), Flavio Caiafa, who said that Uruguay, with its “tranquility and stability,” has become an attractive place for investors and that its historical advantage is the freedom to do business, which allows repatriating business profits in the way the entrepreneur chooses.

The CEO of Salus, Agustín Mostany, pointed out that “Uruguay is a coherent country” that has a sustainability agenda in which it moves forward regardless of its political color. He also stated that, due to its market scale, impact can be generated more quickly and easily, which makes it more controllable. He also highlighted the closeness of the entrepreneur with public institutions and agencies. “Uruguay is a great country to invest and generate positive impacts,” he said.