What's New

Uruguay, Turkey sign bilateral investment accord
Kind: ICD What's New  Organization: Department of International Cooperation  Publish Date: 2022-05-27 10:59
With the proliferation of global trade and commerce, many international economic and trade organizations, as well as agreements, provide platforms for trans-national exchanges and establish international trade and investment regulations. The current global order of investment consists mostly of bilateral investment treaties or agreements (BITs/BIAs) or specific investment chapters included in free trade agreements (FTAs). The role of BITs/BIAs is to safeguard the investment environment for investors, while the scope of FTAs includes trade and investment.

According to press reports, Turkish Foreign Minister Mevlut Cavusoglu visited Uruguay on April 23, to meet with Uruguayan Foreign Minister Francisco Bustillo. The meeting was held to formalize mutual dignitary visits, sign bilateral agreements, attend the inauguration ceremony of the Turkish Embassy in Uruguay, and to discuss topics related to investment and trade, etc. Both parties reached an agreement on terms of reference in initiating FTA negotiations on the same day, along with the signing of the Investment Promotion and Protection Agreement (IPPA), which is aimed at boosting investment from enterprises, as well as trade and job creation. Given that the feasibility study on a Uruguay-China trade agreement has stalled, Uruguay continues to seek deeper economic and trade relations with other countries, such as Turkey.

According to statistics from the Investment Office of the Presidency of the Republic of Turkey, foreign direct investment (FDI) in Turkey is expected to increased from US$15 billion for the 1980-2002 period to US$225 billion for 2003-2020, with the top sources of investment being the Netherlands (15.9%), the U.S. (7.8%) and the UK (7%), and the main sectors invested in being finance (33%), manufacturing (24%) and energy (11%). Also, according to statistics by Uruguay XXI - Investment, Export and Country Brand Promotion Agency, FDI in Uruguay amounted to US$1.69 billion in 2019, with the top sources of investment being Spain (24%), Argentina (15%) and Brazil (8%), and the main sectors invested in being finance and insurance (35%), manufacturing (27%) and trading (18%).

Turkey has signed FTAs with 22 countries around the world which have a combined population of about 457 million people. Uruguay is a member of the Southern Common Market (MERCOSUR), which includes Argentina, Brazil and Paraguay. The signing of the Turkey-Uruguay IPPA ensures stability of bilateral investment and demonstrates the two sides' interest in tapping markets in Latin America, Europe and Asia.

Sources: Taipei Commercial and Cultural Office in Argentina; Annotations on International Investment Agreements, MOEA; Uruguay Investment, Export and Country Brand Promotion Agency; Investment Office of the Presidency of the Republic of Turkey

Update: 2020-04-23
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