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Uruguay has a nominally progressive government that came to power on the strength of its critique of neoliberalism. However, one segment of the current Frente Amplio administration has leaned in favour of seeking FTA-type economic agreements. There is ongoing discord within the government around the possible signing of an FTA with the US.

Uruguay is a member of Mercosur, which prohibits member countries from signing bilateral FTAs, and the Uruguayan government’s stance has caused significant tensions within Mercosur, at times bringing it to the verge of dissolution.

Intense debate has taken place within the government itself. So far, the faction opposed to FTAs has won out.

Nevertheless, Uruguay signed a trade and investment framework agreement (TIFA) with the US in January 2007. Many observers saw this as a first step towards the signing of an FTA.

Since José "Pepe" Mujica (also with Frente Amplio) took the presidency in March 2010, a new period in Uruguay’s foreign policy began and the country no longer discusses an FTA with the US.

last update: May 2012

US Senate approves US-Uruguay bilateral investment treaty
The US-Uruguay Bilateral Investment Treaty (BIT) will benefit the economies of both countries, is an important step toward closer economic cooperation between the two nations and reflects the United States’ commitment to explore and expand economic opportunities in the Western Hemisphere, say senior U.S. officials.
US-Uruguay free trade agreement
Two articles by Roberto Bissio, analysing the irreparable mistakes that Uruguay could be making in case of signing an FTA with the United States with regards to the imposition of intellectual property regulations and the opening of state services to competition.
Uruguay to negotiate trade with US
Uruguayan President Tabare Vazquez said after a meeting with opposition leaders on Monday that his country will negotiate a trade agreement with the United States "as far as possible".
Main Uruguayan parties reject US FTA
The principal political parties and movements of Uruguay rejected possible signing of a free trade agreement with the US on Thursday.
Frente Amplio rejects FTA with US
The Political Board of Uruguay’s Frente Amplio on Tuesday ratified its rejection of the US-sponsored Free Trade Agreements within the framework of the Free Trade Area of the Americas (FTAA).
Uruguay FM against FTA with US
Uruguayan Foreign Minister Reinaldo Gargano ratified Friday his rejection of signing of a Free Trade Agreement (FTA) with the US.
US-Uruguay Trade: Consolidate Ties Now
The U.S.-Uruguay investment treaty will boost two-way investment and commerce and help advance economic freedom in Latin America.
Uruguay: ’We are not going to sign the FTA with the US’
“We are not going to sign the TLC [Free Trade Agreement] with the United States”, said Hugo Rodriguez, secretary of the Chamber of Senators and director of the Uruguayan Socialist Party. “But we are in a difficult situation.”
Uruguay moving to free-trade talks
Uruguayan President Tabaré Vázquez, often cited as an example of Latin America’s leftward shift, and President Bush agreed Thursday to deeper ties and talks that could lead to a free-trade pact with Washington.
Uruguay President Vazquez says Uruguay seeking improved trade ties with US
After meeting with President George W. Bush, Uruguay President Tabaré Vazquez appeared on Voice of America (VOA) to say that the two presidents had “made profound advances toward a better understanding between our two countries that will permit us to improve our commercial exchanges.”