APPENDIX 15
Memorandum submitted by Linpac Plastics,
Montevideo
WHY URUGUAY?
IS YOUR COMPANY INTERESTED IN A NEW MARKET
OF MORE THAN 250 MILLION CONSUMERS?
MERCOSUR—THE
SOUTHERN CONE
COMMON MARKET
ARGENTINA, BRAZIL,
PARAGUAY AND
URUGUAY[4]
Where would an industry looking to invest in MERCOSUR
find the lowest risk, and profit from all the advantages offered
by MERCOSUR?
URUGUAY is undoubtedly the place. This country
enjoys a long-standing reputation for reliability among foreign
investors. It has a solid legal system and a transparent and open
market supported by a strong regulatory framework.
INVESTMENT PROMOTION
An approved investment declared to be of "National
Interest" benefits from an incomparable package of promotional
measures:
— Exemption from income tax, for
a period based on the total amount invested.
— Exemption from capital tax for
a longer period than elsewhere in MERCOSUR.
— No customs tariffs on the import
of capital goods.
— Temporary admission system for
the duty- and tax-free import of all materials subsequently re-exported
following a manufacturing process within Uruguay.
— Very investor-friendly pre-financing
of export credits.
— VAT credit certificates for
exporting companies covering expenses and investments incurred
in the process of the construction of industrial installations.
— Internal tax credits for all
exports.
REGIONAL FRAMEWORK
Services and products manufactured in Uruguay
have access to MERCOSUR markets free of import duties or quotas.
OTHER ADVANTAGES
— No discrimination between hiring
local or foreign workers.
— No restrictions on including
foreign nationals on boards of directors (unlike elsewhere in
MERCOSUR).
— Flexible financial system and
foreign exchange regime allowing free circulation of capital and
remittances abroad (another advantage in comparison to other MERCOSUR
countries).
— Infrastructure projects continuously
being developed.
— Efficient port and airport facilities.
Good highways and river network connecting with Argentina, Brazil
and other countries.
— Geographical position favours
use of Uruguay as distribution centre for MERCOSUR (illustrated
by the number of foreign companies using Uruguayan Free Zones
as their regional hub).
— Investment Promotion and Protection
Agreement between UK and Uruguay.
— Literacy rate 98%, the highest
in Latin America; similar high scores for indicators on culture
and communications, newspaper circulation, TV, use of internet.
— Pro-UK attitude and long history
of UK involvement in Uruguay's commercial, industrial and agricultural
sectors.
November 2006
4 This presentation was prepared before Venezuela
joined Mercosur. Back
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