The free trade zone represent more than 6% of the GDP, with a investment annual amount of 1,617 million dollars, which corresponds to 15% of the total Uruguayan economy, according to a study by Ceres which used data from 2021.
The survey also reflected that the regime, which turned 100 years old in 2023 and includes 1,000 companies, is key for the exports and covers 27%, while it is expected to have “significant growth” after the incorporation of UPM II.
About the impact of free trade zone in it GDP, Ceres considered that the future prospects “are promising, with the potential to maximize its economic impact if barriers and threats are mitigated.”
As for the Job positions, the regime generates 66,303 jobs, between direct (20,980) and indirect (45,323), benefiting sectors such as administrative services, commerce, professional activities, forestry and wood extraction.
The report also highlighted that they focus more on the young employment than the economy average, “with salaries more than three times higher and a greater preference for highly educated personnel.”
Free zones generate more than 7 dollars for every dollar exempted
On the other hand, the tax exemption that the regime contemplates results in an important gain for Uruguay, with the generation of more than 7 dollars for every dollar exempted.
“If additional benefits are taken into account, such as increased productivity through training, the adoption of innovative business practices and the adoption of quality standards, as well as indirect effects, the contribution becomes even greater,” the survey highlighted.
At the same time, he anticipated that “future prospects are encouraging”, mainly if the attraction of companies in high value-added sectors such as life sciences, biotechnology, Artificial Intelligence, ICTs, fintech, blockchain, e-commerce and headquarters materializes. regional.
Finally, among the barriers to growth there are “the competitiveness of the country and the availability of highly qualified human capital with appropriate regulation.”
The government seeks to “improve the regime and adapt it to the current times”
Recently, in the celebration of the 100 years of the regime, the Secretary of the Presidency, Álvaro Delgado, He highlighted that the 12 free trade zone in operation “have contributed to promoting national development, attracting investments, generating quality employment and diversifying exports.”
“One of the challenges that the country faces lies in improving the regime and adapting it to the current times,” said the presidential candidate for the National Party.
Slim He stated that “the challenge is to generate greater competitiveness, improve regulations and lower costs,” and then stated: “A large part of the exports are linked to technological services, a sector in which Uruguay is at the forefront. We hope to continue working to generate new development opportunities.”
Source: Ambito
