The Focus on Chilean Vineyards Is Rewriting the Rules in the World of Wine Investment

The Chilean wine industry is witnessing a significant influx of foreign investment from global investors, making Chile one of the key destinations for international investments in vineyards and wineries. This trend has also increased interest in opportunities to make co-investments, as well as in the outright purchase of a brand or the infrastructure to develop new wines, which has led many families who have sold their vineyards to create boutique labels in other valleys. This movement has contributed to diversifying the Chilean wine industry ecosystem.

Internationally renowned brands such as Château Lafite-Rothschild, Félix Solís Avantis, González Byass (Veramonte-Neyen), Antinori (Haras de Pirque), François Lurton (Viña Hacienda Araucano), and Sogrape (Chateau Los Boldos), which have recently arrived in Chile, have aroused the interest of Chilean wine industry families, which in turn has been encouraging foreign investors to continue arriving in Chile, as well as to help the national wine economy to consolidate, thanks in large part to Chile’s wide range of agro-climatic conditions and terroirs, as well as its new wine entries in the Premium segment.

In this context, the Chilean wine industry brands Concha y Toro, San Pedro, Montes, Santa Rita, Errázuriz, Cousiño Macul, Santa Carolina, Casa Silva, Viu Manent, and VIK, among others, are taking the lead. Focused on strengthening and consolidating their prestigious brands, they are using their power and presence to generate international buzz and are focused on leveraging their brands. On the one hand, these wine companies are raising prices for wines from wineries that make “Terroir Wines” (Vin de Terroir) and have them in their portfolios. On the other hand, they are looking at the real estate sector in Chile, which allows them to open new businesses such as lodges, boutique hotels, restaurants, etc.

Maximiliano Morales, CEO of Andes Wines, the online wine business platform, states: “Chile’s investment opportunity is ideal, thanks to the high quality of our grapes and internationally recognized brands that have been developing over four decades, as well as the wide range of terroirs, for an international wave of premium wine investments that come with the heritage and know-how of the Old World and the innovation and technology of the New World.”

Armenian businessman and owner of one of the largest taxi fleets in a state in the United States, Edward Tutunjian, fell in love with Chile on a vacation to the country. After falling in love with the country and the Chilean wine industry, he made the decision to invest in Chile, and his first move was the purchase of the vineyard “La Pancora” in the Curicó Valley. Later, he bought the vineyard “Huaquén” in Curepto, which is one of the most privileged in Chile, and to date has acquired “Viñedos y Bodega Apaltagua” in the Apalta Valley, Colchagua. Currently, Viña Apaltagua is present in five of the most important Chilean wine valleys.

Doors Open

Another of the most important events in the international investment race for the Chilean wine industry is the arrival of owners of châteaux in France, which is giving Chile the reputation of being a global benchmark, and is all the more necessary as in Europe climate change is making itself felt more and more in historic wine regions.

The Viña Los Vascos winery, located in the Colchagua Valley and owned by the prestigious Bordeaux winery Château Lafite-Rothschild, stands out as a symbol of biodiversity and sustainability in the Chilean wine industry. Adapting to its terroir, this vineyard from Château Lafite Rothschild adopts organic agriculture that is in tune with its environment and uses renewable energy sources and water-saving practices.

On the other hand, Undurraga Wines Group also stands out, of which José Yuraszeck, who owns approximately 45% of the company, is a member. He has an equal share with the Picciotto family, which has the remaining 55%. On July 15, 2024, the Bisquertt and J. Bouchon brands were added to the portfolio with operations of different quality levels, according to reports from the company.

Wineries Invest in Other Countries

The Chilean investments in wineries abroad, mainly in Argentina and the United States, have been key to wine portfolio diversification for various countries. Chilean families are leading players in wine making in Argentina, not only due to their interest in developing different wine valleys, with growing sectors such as the Uco Valley, but also thanks to the boom of the Malbec variety. In this regard, wines from Argentine brands such as Trivento, Dona Paula, Bodegas Renacer and Kaiken among others, stand out, all with Chilean capital. Chilean winemakers have also been active in the United States. In the Empire State, Brotherhood Winery, a reference in wine tourism in the United States, is Chilean. In California, Chilean wineries are also not lacking, including the emblematic Huneeus Wines group, which owns internationally recognized wineries such as Quintessa, Favia Wines, Benton-Lane, Leviathan, Faust, The Pact, as well as Flowers Vineyards & Winery, among others.

Maximiliano Morales emphasizes: “It would be an excellent opportunity for the Argentinean market to position itself as a very attractive market for Argentinean investors to diversify their portfolios with wines from Chile’s most prestigious valleys, thus allowing them to access trade agreements that open more doors. I think it’s time for more Argentinean winemakers to cross the Andes and produce Chilean wine with Argentinean capital, just as Chileans have done in Argentina.”

A Taste of Wine Investment in Chile

It is precisely to make clear the importance of the wine industry as a magnet for investment in Chile that the Valparaíso Regional Productive Development Committee—CORFO—has made a special effort, such as organizing the Wine Innova Tech 2024 Seminar through the Viraliza CORFO program in May, in Viña del Mar, Chile, as an international and highly recognized seminar.

Maximiliano Morales, Project Manager of the Seminar and Founder of AndesWines.com, presented the official protocols to launch Chile’s first Private WineTech Fund. The activation of this investment fund could allow financing of an entire series of innovative projects in the Valparaíso Region of Chile focused on wine facing issues and challenges such as: climate change and adaptation, sustainability and decarbonization in all its lines, as well as the implementation of cutting-edge technology in winemaking and vine genetics. We can say that Chile is critical in this, since the Chilean wine industry is the one that has the largest area of surface ungrafted European vines in the world. The WineTech investment fund is currently suspended, but is expected to resume its activities in the coming months.

Capturing the Investment Potential of the Chilean Wine Industry

Chile’s wine industry is at a turning point that will attract investment from all over the world, with the Chilean wine industry as a key investment magnet with new strategic alliances. The combination of high-quality grapes, terroirs, and already consolidated brands has made Chile a key destination for wine investments worldwide.

The Chilean wine industry is going to continue to attract investment capital, expand its reach, and become even more of a global player in the Premium wine segment in the coming years. This is the case, for example, with the wine industry in the Coquimbo Region, where more than 27 luxury cruise ships from all over the world arrive every year and a large percentage of its passengers disembark in the Elqui and Limarí Valleys to taste the local wines and piscos, an initiative that is headed by Turismo Ingservtur, and which has aroused growing interest in luxury wine tourism in the region.

In this context, AndesWines.com is the perfect tool, with the necessary tools and knowledge of the investment sector. Strategic action is taken both in Chile as well as in the global investment community, and targeted to family offices of local and foreign investors who are in the search for profitable investment opportunities in Chile, with a stable and growing market, or for families interested in knowing how to sell their business, which also allows them to reach potential acquirers, both national and foreign. This can be through brand purchases, co-investments, or business alliances with wineries and families that are already known in the wine trade.

Automotive investment in Aguascalientes continued to show resilience despite market volatility and a 38.6% decline in foreign direct investment (FDI) flows to the Mexican automotive sector. In H1 2025, the state attracted five automotive projects that committed more than USD 107 million in new capital and 685 jobs. Although other states in Mexico’s Bajío region registered higher volumes of announced projects, Aguascalientes remains one of the most competitive subnational destinations for automotive investment in Mexico.

This is due to its specialization in high-end manufacturing, deep industrial infrastructure, and the presence of globally competitive European and Asian firms.

Premium Automotive, High-Value Manufacturing Drive Investment

The five automotive projects announced in the first half of 2025 align with the state’s economic development strategy that prioritizes high-value added products. These products include premium automotive interiors, molded parts and components, structural components, and electromobility.

NBHX Trim (China)

NBHX Trim, a Chinese company specializing in the manufacturing of automotive interiors for premium and electric vehicles, made a USD 24.13 million investment in H1 2025. The Chinese company expanded its Aguascalientes plant to produce dashboards, door panels, and metal body parts for premium models.

Job creation and expansion area were not disclosed. However, the introduction of new production lines focused on value-added manufacturing of interior components reinforces Aguascalientes’ position as a leading manufacturer of precision, automation, and quality.

PROMA Group (Italy)

The Italian company PROMA Group, specialized in car seat frames and structural components, committed USD 32.1 million for the construction of a new plant in Aguascalientes. This project also entails the creation of 225 new jobs in the state.

This new automotive investment in Aguascalientes reflects the state’s capacity to attract more European companies to establish their operations in the state to produce high-quality and sophisticated components. In addition, by targeting the production of seat frames and structural components, PROMA has access to more premium automotive markets. Therefore, automotive investment in Aguascalientes is expanding its footprint beyond component supply to include other operations upstream and further along the supply chain.

Tokai Kogyo (Japan)

Tokai Kogyo, a Japanese company, announced a USD 5.35 million reinvestment into its Aguascalientes plant, which manufactures molded rubber and plastic parts for various automotive applications.

The company did not provide further details on job creation and area expansion. However, the reinvestment is a sign of confidence and long-term commitment in the state.

Advanced Composites (Japan)

Advanced Composites, a Japanese company specializing in high-performance plastic compounds, announced a USD 13.38 million expansion to its manufacturing plant in San Francisco de los Romo.

The company is a producer of TPO (thermoplastic olefin), polypropylene, and other plastics with high performance and unique technical characteristics. The compounds are used to manufacture a range of vehicle parts from bumpers to interior panels. As plastic components contribute to weight reduction and emissions in vehicles, Advanced Composites’ presence in Aguascalientes also supports the state’s growth in electromobility.

ITA Breaks Ground on Semiconductors & Electromobility Lab

The National Laboratory of Semiconductors and Electromobility, owned by the Aguascalientes Institute of Technology (ITA), broke ground on the new USD 1.77 million semiconductor laboratory in H1 2025. When completed, it will cover an area of 4,600 square meters and focus on the development of leading-edge electromobility and semiconductor technologies.

Although the state did not disclose how many jobs will be created and how long the project will take to become operational, the laboratory’s introduction as a high-tech R&D hub bodes well for long-term returns. By working to strengthen the state’s technology talent pool and developing more local suppliers, this new facility will accelerate innovation and the local talent pool for electromobility solutions and cutting-edge manufacturing in semiconductors.

Electromobility: Next Big Opportunity for Mexico’s EV Hub?

Although the launch of the semiconductor lab is a promising development, only one out of the five projects announced in the first semester of 2025 is directly related to electromobility technologies and processes.

This reveals the huge potential that the sector represents and one of the few opportunities where Aguascalientes can differentiate itself as the automotive hub of Mexico.

The state has one of the most developed ecosystems of automotive component suppliers in the country and access to specialized technical institutions that make it the ideal destination for investment in EV batteries, charging systems, software development, and systems integration. The state could benefit from more active promotion and incentives to capture global R&D centers and engineering hubs focused on electromobility.

To move into higher-value and technology-intensive projects, the state will need to work on specialized promotion campaigns that appeal to both software and battery R&D.

Industrial Infrastructure: Waiting for the Next Wave of Investment

Aguascalientes’ secret has always been its ability to receive complex manufacturing operations. With five projects in H1 2025, automotive investment in Aguascalientes is already showing interest in advancing along the value chain into more technology-intensive operations. For example, in electromobility, the state can benefit from promoting the advantages it has over other destinations: specialized suppliers, high-quality and competitive talent, and a long track record of stable operations.

It also requires a constant investment in industrial infrastructure that can support the needs of new-generation global firms. The emergence of smart industrial parks can help fill the gap that requires not only space but also services, digital connectivity, clean energy, and ESG compliance.

Closing Thoughts: Quality, Talent, Precision

In a semester characterized by international reticence and a general downturn in FDI figures nationwide, Aguascalientes demonstrated that it can remain in demand and strategically oriented. By attracting over USD 107 million in investments, creating 685 new jobs, and deepening its footprint in advanced materials and electromobility, the state provides a good example of how more specialized regions can be more competitive in a rapidly changing world market.

The question now is how to move up the value chain and deepen the technological ecosystem. By achieving this, automotive investment in Aguascalientes can go beyond components and parts to become a more important regional center for innovation, testing, and design in new-generation mobility.

If it continues to attract high-tech companies and make the necessary investments in talent and infrastructure, the state will likely see its role and relevance in Mexico’s automotive ecosystem increase.

The recent announcements by global corporations to close operations in Costa Rica have generated widespread concern among the country’s business community. These multinational companies, which include Intel, Qorvo, and Pfizer, are citing structural challenges as the main reason for their decision to scale back operations, move production to Asia, and lay off hundreds of employees.

The departures have raised concerns in the private sector, with business leaders calling for a renewed focus on competitiveness and the creation of a more attractive investment climate to reverse the trend. Costa Rican business leaders are speaking out, and their views are striking a chord. Calls for more competitive wages and cost structures, reductions in social charges, labor flexibility, and cheaper energy are becoming increasingly louder.

The Impact of Major Corporate Departures

The sudden departure of Intel from Costa Rica, announced on November 1, 2023, sent shockwaves through the business community. The decision of the American multinational company to close its Costa Rican operations, which manufactures microchips for global use, has been seen by Costa Rican business leaders as a major blow to the country’s economy.

The Intel exit from Costa Rica, the latest in a string of corporate closures and relocations to Asia, with companies also including Qorvo and Pfizer, has prompted business leaders to question the competitiveness of Costa Rica’s business environment. In response to the recent announcements, Costa Rican business leaders are calling for the government to take a more proactive approach in addressing these structural issues and promoting an environment that is more conducive to foreign direct investment.

AZOFRAS Calls for Action to Avoid Further Capital Flight

The Association of Free Trade Zone Companies (AZOFRAS), which represents numerous multinational corporations that have established operations under Costa Rica’s free trade zone regime, has also called for action to address these concerns. The head of AZOFRAS, Ronald Lachner, has urged authorities to address what he called a “serious wake-up call” sent by the companies that have recently left Costa Rica.

“The departure of multinational companies not only leads to the loss of quality jobs, but it also affects Costa Rica’s image and ranking as a place for investment in Central America. Costa Rica can no longer afford to minimize, underestimate, or, even worse, ignore the obvious and wait passively until more companies follow this trend, without being proactive in analyzing its competitiveness and reformulating strategies to improve it,” declared Lachner in a recent interview.

Costa Rican business leaders have specifically cited high social security charges, lack of a 4-day 3-day workweek, and high electricity rates as major structural challenges that must be addressed if the country is to retain and attract high-value investment.

The 4×3 Workweek: A Key Labor Reform for Competitiveness

One of the most significant proposals by Costa Rican business leaders in this regard is the implementation of a 4/3 work schedule, which consists of four days of work followed by three days of rest. The 4×3 workweek model, also known as a compressed workweek, is a labor system that has been widely adopted in other competitive manufacturing destinations.

Costa Rican business leaders argue that the 4×3 model would increase productivity, provide workers with a better work-life balance, and make the country more attractive to foreign investors looking for labor flexibility. The current labor code in Costa Rica makes it difficult for industries that require 24/7 production capacity, such as advanced manufacturing and the life sciences, to operate effectively.

The rigidity of the labor code and the requirement to pay extra for shift work and night work make it more expensive for companies to operate in Costa Rica. By adopting a 4×3 model, Costa Rica would be able to position itself as a more attractive destination for companies seeking to relocate production from Asia to the Americas.

Business leaders also emphasize the importance of reforms to Costa Rica’s social charges. Social charges are the mandatory contributions employers make to Costa Rica’s social security system, which provide Costa Rican workers with access to healthcare, pensions, and other social benefits. While Costa Rican business leaders recognize the value of these social benefits, they also argue that the current system places an excessive burden on employers, particularly those in labor-intensive industries.

Calls for Reduction in Social Charges

Business leaders and executives in Costa Rica have been vocal in their calls for a reduction in social charges, citing their impact on the country’s competitiveness and the cost of doing business. In addition to labor flexibility and social charges, Costa Rican business leaders are also calling for reforms to the country’s energy sector.

Electricity rates in Costa Rica are among the highest in the region, despite the country’s leadership in generating renewable energy. Costa Rican business leaders have called for reforms that would open the energy sector to greater private sector participation and introduce more efficient pricing mechanisms that better reflect production costs and lower the cost of electricity for businesses.

In addition to these issues, Costa Rican business leaders have also identified the need for improved logistics and transportation infrastructure, better digital connectivity, and enhanced investment in human capital development. Delays in customs clearance, limited port capacity, and a lack of integrated digital systems for trade and commerce add to the cost and complexity of doing business in Costa Rica.

Costa Rican business leaders have urged the government to address these issues in order to improve the country’s competitiveness and attract more investment. With the rise of nearshoring, Costa Rica has a unique opportunity to become a regional hub for high-tech and advanced manufacturing. However, this will require targeted investments, policy reforms, and a commitment to making the country more competitive.

In a rapidly changing global economic landscape, where countries are competing fiercely for investment dollars, Costa Rica cannot afford to be complacent. The recent corporate exits have exposed vulnerabilities in the country’s competitiveness, but they also offer an opportunity to reset and reposition Costa Rica for the future.

Human Capital Development and Investment in Bilingualism, STEM Education

Costa Rican business leaders have also emphasized the importance of investing in human capital development to attract and retain investment. While Costa Rica has a relatively well-educated workforce, compared to other countries in the region, Costa Rican business leaders have noted the need to better align technical and vocational education with the skills required in emerging sectors such as semiconductors, advanced manufacturing, and the life sciences.

The government and the business community can work together to promote bilingual education, STEM learning, and advanced technical certifications in the workforce. Programs that encourage collaboration between universities and technical institutes can help to ensure that the country is producing the talent needed to support the industries of the future.

Calls for Maintaining Exchange Rate Stability

Calls for the government to ensure exchange rate stability have also become louder. While Costa Rica does not have a fixed exchange rate regime, the currency has seen some volatility in recent months. Fluctuations in the exchange rate can have a significant impact on the financial planning and profitability of multinational companies that generate significant revenues in foreign currencies or are dependent on imported inputs.

Maintaining a stable exchange rate can provide predictability for investors and make Costa Rica a more attractive destination for long-term investment. In light of recent announcements, business leaders have recognized the need for a coordinated and urgent response to address Costa Rica’s competitiveness and reverse the trend of capital flight.

The government has responded to some of the business community’s concerns, including lowering social security contributions for employers, and it remains to be seen whether further action will be taken on other pressing issues.

But the message from Costa Rican business leaders is clear. Inaction is no longer an option, and the time for debate and discussion is over. The government must take concrete steps to address the concerns of the business community, improve the country’s competitiveness, and ensure that Costa Rica remains an attractive destination for investment.

The private sector is a vital partner in this process, and government agencies must work closely with business leaders to understand their concerns and develop solutions that work for everyone. The stakes are high, and the future of Costa Rica’s economy and thousands of jobs are at risk. It is up to the government and the business community to act decisively and work together to turn the crisis into an opportunity.

The Legislative Assembly is currently reviewing the “Special Regime to Incentivize and Facilitate High-Value Investments in El Salvador,” a legislative framework that would grant tax incentives, administrative and legal advantages to multibillion-dollar investments.

Presented by the Ministry of Finance on July 22, 2025, the proposed special regime is part of the Government of El Salvador’s (GSE) strategy to attract and compete for foreign direct investment (FDI). The country has been a competitive player for a number of high-impact investment projects, and this framework is expected to help facilitate and advance negotiations with prospective investors.

A Vision to Grow the Economy

While growth in international investment has not met expectations during President Nayib Bukele’s term, economic diversification, modernization, and productivity have remained top priorities. Bukele’s government was proactive about passing legislative frameworks to improve the ease of doing business and push macroeconomic reforms that would make El Salvador more competitive and resilient.

The Special Regime to Incentivize and Facilitate High-Value Investments in El Salvador (hereinafter the “Special Regime”) is a natural progression of that approach. It is a proposal that incentivizes foreign investment in large-scale projects that can change El Salvador’s productive model and bring it to a new level of capital intensity and sophistication.

For the purpose of the Special Regime, high-value investments are defined as those with a commitment to invest directly in El Salvador or transfer capital or assets worth $2 billion or more. Presented by Finance Minister Jerson Rogelio Posada Molina, the Special Regime opens a window for foreign capital to access El Salvador on a preferential basis and receive financial and administrative incentives to pursue large-scale business.

Incentives Package for Large-Scale Investors

The Special Regime offers a package of targeted benefits for large-scale investors. The most notable of these are:

• Tax Incentives: Corporate income tax , import duties, and value-added tax (VAT) exemptions or discounts.
• Administrative Privileges: Expedited processing and approval of business permits, registrations, and other administrative requirements.
• Legal Certainty: Stability and predictability in terms of adherence to the law.

El Salvador is currently among the top recipients of FDI in Central America, which has helped make up for low national savings, domestic investment levels, and productivity rates in the economy. The Central America Free Trade Agreement (CAFTA-DR) is also advantageous for investors as it gives El Salvador preferential access to the US market.

However, neighboring countries are competing for the same slice of international capital, which has become highly price sensitive due to factors like geopolitical risks, higher interest rates, and the global economic slowdown.

By offering financial and administrative incentives, as well as legal certainty for foreign investments, the Special Regime aims to position El Salvador as an attractive and reliable destination for FDI for projects of a particular size and nature. In addition to the traditional financial sector, this initiative will likely focus on a select number of strategic sectors, including:

• Technology & Innovation: Data centers, R&D centers, software development companies
• Infrastructure: Public or private infrastructure projects, such as highways, ports, airports, water or power plants, etc.
• Energy: Solar power, geothermal, wind energy, hydrogen, etc.
• Manufacturing: High-tech or precision manufacturing companies to set up operations in the industrial parks.
• Logistics and Supply Chains: Given its geographic position, El Salvador could become a logistics hub in the region, offering services to landlocked countries.
• Services: Business process outsourcing (BPO), financial services, call centers, etc.

It should be noted that, regardless of whether the Special Regime becomes law, none of these sectors would be “off-limits” for foreign capital or large-scale domestic investment.

Towards a Comprehensive Legal Framework

El Salvador has made significant strides in recent years in reforming its economy and polity. Dollarization, a stable macroeconomic framework, and improvements in physical and digital infrastructure have all been positive developments.

With its Special Regime, the Government of El Salvador is seeking to push these reforms further by creating a highly predictable environment for very large-scale investments. Legislative support for the Special Regime seems high as President Bukele’s Nuevas Ideas party holds a majority in the Legislative Assembly. The Special Regime is likely to be approved and passed into law relatively soon after its approval by the Assembly.

If so, it will help change the investment narrative for El Salvador, which has traditionally been focused on apparel and other low-value and low-productivity sectors. A focus on high-value investments in El Salvador should serve to direct more capital into the economy and spur economic growth and development.

Transformative Investments with Large Impact

Projects of this magnitude do not come by very often, but when they do, the local economic impacts can be significant. Infrastructure projects, advanced manufacturing facilities, or high-tech platforms for technology development and innovation are long-term investments. They can have an extensive and long-lasting impact on the country’s economic activity. Attracting one of these projects is therefore always a game-changer.

According to a study by a regional economic development agency, each new job created by a high-value FDI project can have a multiplier effect and generate additional employment both directly (through demand for additional capital and labor) and indirectly (demand for goods and services).

A $2 billion+ investment project would almost by definition require thousands of direct jobs, as well as several multiples of indirect jobs. The latter would depend on the nature of the investment (energy, manufacturing, etc.) but could reach or exceed tens of thousands, especially in the construction and infrastructure phase.

By extension, these new jobs will boost domestic demand and fuel growth in consumption, gross domestic product (GDP), and output. The more an FDI project requires local capital and labor, the higher its positive contribution to the economy.

No to Regulatory Arbitrage

Administrative bottlenecks and unpredictable business regulation are common obstacles to investment in developing markets. In this way, the Special Regime also serves as a signal to high-value investors that they can expect a very stable legal and business climate to develop their businesses.

The Special Regime offers legal stability clauses that protect investors from retroactive changes to tax and financial conditions, for example. They can also expect to work with a “one-stop shop” of government agencies to receive administrative support and guidance. Any disputes will be resolved in accordance with international best practices.

Predictable Regulatory Environment

Boosting El Salvador’s business climate ranking is yet another potential effect of this initiative. By eliminating what high-value investors see as impediments to business, El Salvador could receive a better rating in global ease-of-doing-business reports, as well as in investment climate surveys. This should also make it easier for the country to attract FDI in the long run, as El Salvador will no longer be seen as an outlier in terms of business regulation and related requirements.

In the medium term, one would also expect positive effects from large-scale, high-value investments on domestic education, vocational training, and human capital development. High-impact investments require a skilled workforce to carry out capital-intensive and high-value-added activities. In this way, these investments can benefit the country’s broader human development objectives.

El Salvador as an Investment Destination

While security, infrastructure, and institutional capacity have been long-standing issues for El Salvador, the Special Regime is an attempt to close the investment climate gap with its neighbors. El Salvador has other notable advantages, including preferential access to the US market, owing to CAFTA-DR. In that way, the Special Regime is both a necessary and complementary component of a comprehensive effort to draw large-scale FDI into the country.

To address and overcome existing barriers to foreign investment in El Salvador, the Special Regime is a crucial piece of that puzzle. It may well represent the difference between winning or losing the bid for foreign capital and therefore FDI for some of these large-scale projects.

Success for El Salvador

The proposal for a Special Regime to Incentivize and Facilitate High-Value Investments in El Salvador is a noteworthy development in the country’s efforts to attract foreign investment. It reflects the government’s proactive approach in creating an enabling environment for large-scale investments that can drive economic growth and diversification.

Although the Special Regime has the potential to increase FDI in El Salvador, its long-term success will likely depend on broader developments in the national economy and polity. Issues like security, crime, public administration capacity, and infrastructure may also have to be addressed to truly reap the full benefits of this framework.

In that way, the Special Regime can become a powerful instrument that will not only help El Salvador close the investment climate gap with its regional neighbors, but it can also become a tool to help overcome security, crime, and other structural barriers to investment and economic development.

Attracting a high-value investment in El Salvador has significant benefits for the country, from GDP growth to employment and exports. In this way, the Special Regime could become a key factor in opening El Salvador to transformative FDI and the transformative investments it brings with it.

The relationship between Uruguay and India has gained renewed momentum in recent years, driven by an increase in bilateral trade, investments in key sectors, and an active diplomatic agenda. According to a report published by Uruguay XXI in July 2025, the bond between the two countries is built on a foundation of shared history, technological cooperation, and a steadily expanding economic horizon.

In the context of global transformation, where geopolitics and trade flows are being reshaped, India is emerging as a key partner for Latin America. Uruguay, with its institutional stability and open trade policies, aims to establish itself as a reliable platform for Indian investment and as a strategic supplier of raw materials and agricultural goods.

During the recent BRICS Summit held in Rio de Janeiro, Uruguayan President Yamandú Orsi held a bilateral meeting with Indian Prime Minister Narendra Modi, reaffirming the mutual interest between Uruguay and India in strengthening political and economic ties.

Diplomatic relations between the two countries were formally established in 1948. Still, it was in the 2000s that the relationship took on a more strategic character—particularly after Tata Consultancy Services (TCS) established operations in Uruguay in 2002. Since then, Indian investments have extended to sectors such as information technology, pharmaceuticals, manufacturing, and logistics, consolidating India as one of Uruguay’s key Asian partners.

India: A Rising Economy and a Key Trade Partner

India has transformed into a major player in global trade. Despite the impacts of the 2020 pandemic, its economy rebounded strongly and reached historic highs in both exports and imports in 2022—evidence of its deepening integration into the global economy. This sustained expansion has made India a strategic source of industrial goods and an increasingly attractive destination for exporters worldwide.

For Uruguay, India represents a gateway to a market of over 1.45 billion consumers with increasingly diversified demand. In recent years, Uruguayan exports to India have grown significantly, reaching $93 million in 2024—more than six times the pre-pandemic level.

Approximately 79% of these exports consisted of forest products, primarily wood. The remainder included barley, wool, textiles, and, to a lesser extent, chemicals and leather. India’s growing demand for barley, linked to the post-pandemic development of its brewing industry, has created a new opportunity for Uruguay’s agricultural sector.

On the other hand, Uruguay imported goods worth $230 million from India in 2024. The majority of these imports were concentrated in mineral fuels (30%), vehicles and auto parts (17%), organic chemicals (11%), and industrial and electronic machinery. The textile sector also stood out, with over $7 million in imports of garments and fabrics.

Productive Complementarity and Growth in Trade

The trade landscape reveals a high degree of complementarity between the economies of Uruguay and India. India serves as a key supplier of industrialized goods, while Uruguay provides raw materials, agri-industrial products, and wood—essential components for India’s construction, energy, and food sectors.

However, the relationship still faces challenges. There is an asymmetry in the trade balance that could be addressed through greater export diversification by Uruguay, as well as through agreements that reduce tariff barriers and promote value-added trade.

Existing Agreements and the Path Toward a Trade Deal

• Currently, the legal framework governing bilateral relations includes three main agreements:
• The Bilateral Investment Agreement was signed in 2008 and is currently being updated.
• The Double Taxation Avoidance Agreement has been in force since 2011.
• The Preferential Trade Agreement between Mercosur and India, implemented in 2009, provides for tariff reductions ranging from 10% to 100% on select products, including pharmaceuticals, machinery, processed foods, and textiles.

Despite these advances, the agreements remain limited in scope. Both Montevideo and New Delhi have expressed interest in moving toward a Free Trade Agreement (FTA). According to the Uruguay XXI report, India does not require prior approval from Mercosur to negotiate a bilateral FTA—creating a real opportunity for Uruguay to expand its international integration independently.

Indian Investment in Uruguay: Technology, Services, and Energy

Indian investment in Uruguay has made a significant impact, especially in Zonamerica, where TCS established one of its main regional technology service centers. Other notable companies such as Infogain Latam, Deciral, and Oliva Garden have also expanded India’s presence in areas like IT services, pharmaceuticals, and textile manufacturing.

There has also been investment in renewable energy, through Suzlon Wind Energy, and in maritime transport, with the Avvashya Group. These investments align with the global expansion strategies of Indian multinationals, which in 2024 increased their foreign direct investment stock to $260 billion—10% more than the previous year.

Uruguay’s selection as a gateway to Latin America is no coincidence. Its reliable legal framework, investment incentives, and political stability make it an ideal destination for companies looking to establish regional operations.

Tariffs: A Structural Barrier Limiting Potential

One of the main obstacles to expanding Uruguayan exports to India is the varying level of tariffs applied, which differ significantly depending on the product. While some sectors face moderate rates, others are hindered by peak tariffs that reach up to 300%—particularly on agricultural goods.

For example:

• Pepper and rice face tariffs ranging from 70% to 100%;
• Powdered milk, corn, and nuts: 50% to 70%;
• Fruits such as grapes, apples, oranges, and pears: 30-40%.

In 2023, Uruguay paid $3.9 million in tariffs on exports to India—mostly on wood ($3.2 million) and seafood ($252,000). These figures contrast with the more than $387 million Uruguay paid in global tariffs that year, indicating that while India represents a relatively small portion, there is strong growth potential if preferential agreements can be secured.

The Uruguay XXI report also identifies untapped export potential in products like scoured wool, semiprecious stones, and soybeans—sectors that could scale up if more aggressive commercial strategies are pursued and improved access conditions are negotiated.

A Bilateral Trade Relationship with Room to Grow

Bilateral trade between Uruguay and India already exceeds $320 million annually, but analysts agree this is just the beginning. There are numerous opportunities to deepen the relationship in areas such as:

• Export of value-added food products;
• Attraction of investment in technology and logistics;
• Integration into pharmaceutical value chains;

Tapping into opportunities in the education and scientific sectors, where India also has a strong offering.

The main challenge is to diversify Uruguay’s export portfolio, which is currently heavily reliant on wood, and to move toward a more balanced and sustainable partnership. Diplomatic cooperation, investment agreements, and an active trade policy will be essential for both countries to capitalize on their economic complementarity.

A 75-Year Relationship with a Forward-Looking Vision

Seventy-five years after establishing diplomatic relations, Uruguay and India now share a mature agenda that includes historical, commercial, and strategic components. The interest of both governments in deepening bilateral ties reflects a commitment to a development model based on openness, innovation, and market integration.

In an era of geopolitical transformation, strengthening relationships like this enables countries such as Uruguay to diversify their trade partners and reduce reliance on traditional markets. For India, establishing stable alliances in Latin America is crucial to its global outreach strategy.