Washington -- The Uruguayan government has
ratified a Bilateral Investment Treaty (BIT) with the United
States that is intended to enhance bilateral relations as
well as trade and investment ties, according to the U.S.
State Department.
Upon assuming office earlier in 2005, Uruguayan
President Tabare Vazquez asked the United States to renegotiate
technical points in the BIT signed by the United States
and Uruguay in 2004.
The new U.S.-Uruguayan BIT was signed November
4 during the Summit of the Americas in Mar del Plata, Argentina,
passed by the Uruguayan Senate December 21 and ratified
by the lower house of the Uruguayan Congress early December
28 by a vote of 84-0. (See related
article.)
In a December 28 interview with the Washington
File, a State Department official hailed ratification of
the BIT.
“The ratification of the Bilateral
Investment Treaty by Uruguay is an important step forward
in our bilateral relations,” the official said. “It
will further strengthen our already excellent trade and
investment relationship.”
The BIT still requires approval by the U.S.
Senate. Once it enters into force, it should yield important
benefits for both countries, the State Department official
said.
“We expect that it will produce new
business opportunities and employment, increasing the well-being
of citizens in both countries,” the official said.
Beyond the BIT’s economic benefits,
the U.S. official said the treaty also reflects the ability
of the governments of the United States and Uruguay to work
together.
The United States is Uruguay’s largest
trading partner, and U.S. foreign direct investment in Uruguay
was $533 million in 2004.
For additional information on U.S policy,
see Regional
Trade.
Scott Miller
Washington File Staff Writer
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