Uruguay strengthens its international profile with the EFTA-Mercosur agreement

A recent discussion on the EFTA–Mercosur agreement, held at LATU and organized by the Uruguay–Nordic Countries Chamber of Commerce together with the Swiss–Uruguayan Chamber of Commerce, brought together government officials, business leaders, and diplomatic representatives to analyze the opportunities opened by this new trade framework between Mercosur and the countries of the European Free Trade Association (Switzerland, Norway, Iceland, and Liechtenstein).

Attendees included Swiss Ambassador to Uruguay Álvaro Borghi; Norwegian Ambassador to Argentina, Bolivia, Paraguay, and Uruguay Halvor Saetre; President of the Union of Exporters Carmen Porteiro; and Executive Director of Uruguay XXI Mariana Ferreira. The keynote address was delivered by Koichi Tanaka, Deputy Director General of Integration and Mercosur.

During his presentation, Koichi Tanaka emphasized that the agreement “increases predictability and certainty in the economic relationship between the two blocs” by incorporating chapters on goods, services, investment, and sustainable development. “EFTA is a reliable and demanding partner that values low environmental impact and sustainable production,” he said, noting that the new framework “positions Uruguay as a country that promotes clear rules and international integration based on sustainability.”

A strategic agreement for an open country

“Uruguay is a small and open country, so any agreement that promotes investment and exports of goods and services is very welcome,” said Mariana Ferreira, highlighting the strategic nature of the treaty with EFTA.

The director of Uruguay XXI stressed that the agreement “is of the highest standard” and that, beyond its commercial scope, it “reinforces Uruguay's international integration in a global context of uncertainty.”

Ferreira noted that the EFTA countries — which have a combined population of 14 million and a total GDP of $1.5 trillion — represent high value-added economies with demanding standards and a focus on sustainability. “That also sets the tone for the kinds of opportunities we should seize,” she said.

Ambassadors Halvor Saetre (Norway) and Álvaro Borghi (Switzerland) agreed that the agreement holds symbolic value in times of global tension. “It is a sign that we have chosen the path of free trade based on rules and mutual trust,” said Saetre, while Borghi noted that the signing “enhances predictability and trade diversification for both regions.”

High-value companies and a favorable climate

According to data from Uruguay XXI, around 45 companies from EFTA countries operate in Uruguay, of which 35 are Swiss. Together they generate 2,500 direct jobs and exports worth around US$30 million annually.

“These are companies in the financial, pharmaceutical, food, and energy sectors, with high added value. They reflect the sophistication and specialization typical of EFTA economies,” explained Ferreira.

The executive director also highlighted that Switzerland ranks as the tenth largest investor in Uruguay, demonstrating the country's sustained appeal. “It is an important position for an economy the size of Switzerland and shows that Uruguay offers confidence and stability,” she added.

According to a recent survey by Uruguay XXI, 73% of foreign companies from EFTA countries established in the country say they are satisfied with the investment climate. “This is a high level, considering that these are countries with demanding standards,” Ferreira pointed out. “We’re pleased but not complacent — we aim to keep attracting more high-quality investment,” she added.

Ferreira also emphasized the agreement's potential to attract investment in high-tech and sustainability sectors such as energy, life sciences, biotechnology, and global services.

“Switzerland is the global pharmaceutical hub, and Uruguay is working to position itself as a regional center for research and development in biotechnology and life sciences. There is enormous potential to bring knowledge and investment in these areas,” she said.

She also highlighted the interest of Norwegian and Swiss companies in the renewable energy and financial services sectors, where Uruguay already has skilled talent and solid regulatory frameworks.

“Any large-scale investment in energy can have a very significant impact on our foreign direct investment statistics,” she said.

Sustainability as a competitive advantage

The focus on sustainability was another central theme of the discussion. Both Ferreira and the President of the Union of Exporters, Carmen Porteiro, agreed that Uruguay has clear comparative advantages in this area.

“Uruguay is the only Mercosur country classified by the European Union as low risk under the EUDR regulations. That speaks to the country's positioning and seriousness,” Porteiro emphasized.

She added that sustainability is also “a calling card” for attracting investment from countries such as Norway and Switzerland: “These partners value traceability, transparency, and institutional stability. Uruguay can offer all of that.”

Porteiro noted that trade agreements only generate results if they translate into real competitiveness. “A treaty opens doors, but business deals are closed through competitiveness,” she said. “Uruguayan companies must take advantage of the instruments of the agreement and maintain top-tier sustainable standards.”

At one of the highlights of the meeting, Porteiro emphasized: “We want Uruguay to be the first Mercosur country to ratify this agreement and for the quotas to work in our country's favor.”

A boost for international promotion

The Executive Director of Uruguay XXI assured that the agency is already working with binational chambers, the Ministry of Foreign Affairs, and the Ministry of Economy and Finance to “capitalize on the agreement with a more active international promotion strategy.”

“These agreements are useful when they translate into concrete results: investments, employment, and new exports,” said Ferreira.