Uruguay and Japan sign agreement to encourage bilateral investment

The Ministry of Foreign Affairs and the Embassy of Japan in Uruguay signed on Wednesday, 23 June an agreement to eliminate double taxation on income and prevent tax evasion and tax avoidance. The agreement is part of the celebration of 100 years of bilateral relations. The President of the Republic, Luis Lacalle Pou, is also expected to visit the Asian country this year.

The Minister of Foreign Affairs, Francisco Bustillo, and the Japanese Ambassador to Uruguay, Tatsuhiro Shindo signed the agreement at at the Ministry of Foreign Affairs.

The Foreign Minister stressed that diplomatic relations between the two countries are at an excellent level, with the potential to expand even further. Regarding the agreement signed, which will come into force in 30 days, he explained that it will complement legal and commercial framework already in place, by adding to the already existing Agreement on the Liberalisation, Promotion and Protection of Investments. "Both countries agree to keep international trade open in order to advance reconstruction after the COVID-19 pandemic in a sustainable manner," he said.

Bustillo stressed that the agreement is signed with the world's third largest economy, which has a sophisticated market and high quality standards. Accordingly, he added that Uruguay wishes to expand economic-trade flows and position itself as a potential recipient of investment.

The official informed that the main exports to this destination are beef and wool, and that imports correspond to the automotive and industrial sectors. "Placing meat products in Japan is a distinction and a letter of introduction to the world market", he said.

He also valued the government's commitment to private investment as a mechanism for future development, especially by promoting cutting-edge technologies, services and agribusiness. 

The Secretary of State said that progress was being made in bilateral agreements on decarbonisation and green hydrogen production, telecommunications and industrial parks. Meanwhile, he mentioned Uruguay's virtues as a "safe and reliable partner, with a strong and stable economy, solid institutions and high credibility". 

At present, some 22 Japanese-owned companies with investments in the automotive, electronic equipment, medical equipment, meat processing and services sectors are based in Uruguay. Moreover, Japanese investments in Uruguay have been growing steadily since 2000 and exceed US$ 450 million, according to the Central Bank of Uruguay.

Ambassador Tatsuhiro Shindo indicated that the approval of this agreement is based on expanding and strengthening bilateral relations. In addition, he expressed that relations should always be bilateral, so that the benefit is reciprocal. "Working as a team always achieves better results", he said.

Source: Presidency