Uncertainty follows the United States’ publication of tariffs on steel and aluminum, which target automobiles, chips, and pharmaceuticals. The crisis triggered by the possibility that the United States will impose a 25% tariff on exports has caused investments worth 60 billion dollars to be paused in Mexico, revealed Francisco Cervantes, president of the Business Coordinating Council, during the presentation of the Hecho en México program.

Although he explained that “there is a lot of interest” in making trade agreements, he acknowledged that we are in difficult times due to the threat of US tariffs on Mexico on various products after the US government published executive orders on Monday to impose a 25% increase in steel and aluminum tariffs starting March 12 on Mexico, Argentina, Australia, Brazil, Canada, South Korea, the European Union, Japan, the United Kingdom, and Ukraine, among others, because these pose a risk to national security.

This will initially have consequences for Mexico’s metalworking and automotive industries, which depend heavily on these metals. Trump accuses Mexico of using primary aluminum from China and Russia to produce finished goods made from this material and receiving Chinese investments in the industry to manufacture goods that will be exported to the US. He also claimed that Mexican steel exports have increased “significantly.”

Francisco Cervantes considered that the crisis would be brief. Although there will be some “nice tugging,” Mexico will get through it, just as it did during Trump’s first term when he threatened to end the North American Free Trade Agreement, which resulted in a new agreement: the USMCA (T-MEC).

However, Miguel Ángel Landeros, president of the Mexican Council of Foreign Trade for the West, emphasized that the tariff increases affect both businesses and consumers in Mexico and the United States. “This is very bad… and it will particularly affect the automotive sector in Jalisco. The state’s second-largest export sector is automotive, with a significant hub in auto parts. We have a Honda assembly plant and important auto parts companies.”

The US president also anticipates that the new tariff on automobiles will be imposed starting April 2, which will be around 25%. He warned that the increases will equal or higher for chips, semiconductors, and pharmaceuticals: “And they will rise significantly throughout the year” against all countries, focusing on the European Union. “They don’t take our cars, they don’t take our agricultural products, they don’t take almost anything. We’re going to have to fix this, and we will.”

Sergio Oliveira, an expert in the automotive sector, noted that auto parts prices will impact consumers in general. He explained that a car assembled in Mexico contains many U.S.-made parts, and the same happens with vehicles manufactured in the US “All of that would be subject to tariffs so that prices would rise here and in the U.S.,” he warned. This would make things easier for the Chinese.

The Mexican Employers’ Confederation (Coparmex) rejected the unilateral imposition of tariffs, stating that they violated the USMCA and threatened regional integration. “It seriously affects the steel industry and the entire production chain linked to these essential inputs.”

Juárez Has Already Lost 45,000 Jobs

The tariffs announced by the United States on Mexican exports, in addition to pausing investments worth billions of dollars, have already caused the loss of at least 45,000 jobs in the epicenter of Mexico’s maquiladora industry: Ciudad Juárez. The Border Business Bloc reported that “Ciudad Juárez has already lost more than 45,000 jobs in recent months, and this causes other types of problems. We will also see, I mean, we don’t want to think about it, but there could be an inflationary problem,” warned representative Thor Salayandía.

In Ciudad Juárez, one of Mexico’s main export manufacturing centers, business leaders warn that the situation is critical due to a significant reduction in foreign investment and the possible closure of plants if the US tariffs on Mexico are implemented.

“No one wins, neither the United States nor Mexico, when you look at it from an economic perspective, from the viewpoint of the border, where we depend heavily on the maquiladora industry. Sixty percent of formal employment is involved in the maquiladora industry,” stated Salayandía.

Promoting National Consumption

Around 200 people, including singers such as Manuel Mijares, artists, athletes, creators, and businesspeople, will form the Hecho en México Promotional Council. This council will promote products made in Mexico nationally and internationally.

During the presentation, Economy Secretary Marcelo Ebrard explained that this brand would be promoted and that companies manufacturing products in the country could use the label.

The Hecho en México brand is for products manufactured, made, or assembled with entirely national inputs and/or whose manufacturing occurs in Mexico, regardless of the origin of the inputs.

If the US tariffs on Mexico were enacted, Mexico’s competitiveness in the manufacturing industry would be affected.

As the deadline set by Trump approaches, business owners and workers are urging the Mexican government to intervene to prevent an economic blow that they believe could have devastating consequences for the border region.

Conclusion

The potential implementation of US tariffs on Mexico has caused significant uncertainty, particularly regarding the steel, aluminum, automotive, chips, and pharmaceutical industries. These tariffs, which include a 25% increase on exports starting March 12, could impact investments worth $60 billion and already have led to a loss of 45,000 jobs in Ciudad Juárez, a key manufacturing hub. Mexican business leaders are concerned that the tariffs will disrupt the economy, especially in the automotive sector, which heavily depends on US-made parts. Although some leaders remain optimistic, drawing comparisons to previous trade challenges, the tariffs threaten regional integration and could increase consumer prices in Mexico and the US. The Mexican government has been urged to intervene to mitigate potential economic damage, especially in border regions. The Hecho en México campaign has been introduced to promote national products, but if the tariffs are enacted, Mexico’s competitiveness in manufacturing could be severely impacted.

With a 16% increase in exports and a 27% reduction in imports, Argentina achieves a trade surplus of $230 million with the United States in 2024. This marked the first time in nearly two decades that the South American nation has reversed its long-standing trade deficit with the world’s largest economy. Over the past few decades, Argentina has consistently maintained a trade deficit with the United States, with an annual average shortfall of approximately $2.7 billion.

Argentina Regains a Trade Surplus with the United States

Industrial manufactures and fuel-related products dominate Argentina’s exports to the United States, positioning the U.S. as the country’s second-largest export destination, surpassed only by Brazil. These two key sectors account for nearly 70% of Argentina’s total external sales. Among the primary goods exported to the United States are crude oil, gasoline, gold, aluminum, steel, lithium carbonate, wines, honey, beef, and seafood.

However, in a significant development for Argentina’s metallurgical industry, the U.S. government under President Donald Trump announced a 25% tariff on all aluminum and steel imports, a move expected to impact Argentine producers significantly. In 2023, Argentina exported aluminum to the United States valued at $505 million, with an annual average of $427 million between 2018 and 2023. Similarly, exports of cast iron, iron, and steel pipes to the U.S. reached $60 million in 2023, with a six-year average of $127 million between 2018 and 2024.

The Role of Argentina’s Provinces in U.S. Trade

At the provincial level, between 2018 and 2023, Chubut emerged as Argentina’s most commercially engaged province with the United States, directing 37% of its exports to the U.S. market. Additionally, provinces such as Neuquén, Santa Cruz, Misiones, Corrientes, Mendoza, Tucumán, and Tierra del Fuego, Antártida e Islas del Atlántico Sur each allocated over 20% of their shipments to the United States. In 2023 alone, the U.S. solidified its position as the principal trading partner for six provinces: Salta, Tucumán, Misiones, Corrientes, Río Negro, and Chubut.

Factors Behind the Newly Achieved Trade Surplus

Despite the positive trade balance, it is essential to recognize that Argentina achieved a trade surplus with the United States in 2024 primarily due to a contraction in imports rather than an unprecedented export surge. Approximately 73% of the surplus is attributed to reduced external purchases. This import decline was fueled by the expansion of domestic energy production and a deceleration in Argentina’s economic activity during the first half of the year.

The United States remains Argentina’s third-largest source of imports, accounting for 10% of the total in 2024. Over recent years, Argentina has worked to recover its imports of capital goods from the U.S. after hitting a low point in 2020. In 2024, purchases of capital goods from the United States increased by 7%, reaching their highest level in six years. In contrast, the importation of intermediate goods saw a 20% decline, settling 12% below the five-year average. Furthermore, the energy trade surplus contributed nearly 60% reduction in fuel and lubricant imports from the United States.

The Significance of U.S. Imports for Argentina’s Economy

Argentina relies heavily on imports from the United States for several key sectors of its economy. Among the most significant imported products are automobiles, automotive components, industrial machinery, pharmaceuticals, diesel fuel, capital goods components, tires, insecticides, fertilizers, and plastic-based manufactured goods. Given Argentina achieves a trade surplus primarily through reduced imports, the anticipated economic recovery in 2025 may lead to a resurgence in demand for these essential goods throughout the year.

U.S. Foreign Direct Investment in Argentina

Beyond trade, capital flows between Argentina and the United States play a crucial role in the bilateral economic relationship. The United States remains the largest foreign investor in Argentina, accounting for 18% of the country’s accumulated foreign direct investment (FDI) as of the first half of 2024. With an investment stock surpassing $30 billion, U.S. investment in Argentina has increased by 10% compared to 2023. This growth underscores the confidence that American businesses continue to have in Argentina’s economic potential despite the challenges posed by economic fluctuations and policy shifts.

 Outlook for Argentina-U.S. Trade Relations

While achieving a trade surplus marks a notable milestone for Argentina, the sustainability of this balance remains uncertain. If Argentina’s economy rebounds in 2025 as projected, the rise in imports—particularly of capital and intermediate goods—could offset current surpluses. Additionally, ongoing trade policy changes in the United States, such as the recently imposed tariffs on aluminum and steel, may present new challenges for Argentina’s export sector.

However, Argentina achieves a trade surplus at a time when deeper economic cooperation with the United States could provide new investment opportunities. The strengthening trade and investment ties between the two nations signal potential for further collaboration. As Argentina navigates global trade dynamics and domestic economic reforms, its relationship with the United States will remain a critical pillar of its economic strategy.

Conclusion

Argentina achieved a trade surplus with the United States in 2024, marking a turning point in the economic relationship between the two nations. This development highlights the shifting dynamics of Argentina’s trade, primarily driven by a contraction in imports rather than a substantial export surge. While industrial manufactures and fuel-related products continue to anchor Argentina’s external sales, the trade surplus reflects structural changes in the country’s domestic production and economic conditions.

As Argentina achieves a trade surplus, it underscores the importance of maintaining balanced trade policies that support local industries while fostering international partnerships. However, the sustainability of this surplus remains uncertain significantly, as Argentina’s economy stabilizes and import demand for capital and intermediate goods rebounds. Given that Argentina achieves a trade surplus primarily through reduced imports, future trade balances will depend on economic recovery and strategic investments in key industries. U.S. foreign direct investment will be crucial in shaping Argentina’s long-term economic trajectory, reinforcing the deep-rooted economic ties between the two countries. As Argentina achieves a trade surplus after nearly two decades of deficits, policymakers must focus on fostering export growth and diversifying trade to sustain this newfound equilibrium in the years ahead.

Record-Breaking Exports of Medical Supplies in 2024

The Dominican Republic has achieved a significant milestone in its trade relationship with the United States, exporting over $1.725 billion of medical supplies and equipment in 2024. This figure, equivalent to over 100 billion pesos, makes medical supplies the country’s top export category. According to Dominican Ambassador to the United States, Sonia Guzmán, this remarkable growth underscores the Dominican Republic medical device industry’s expanding role in the global healthcare supply chain.

A Booming Medical Device Manufacturing Sector

According to data from the Dominican Association of Free Zones (ADOZONA), the Dominican Republic’s medical device industry is home to 40 medical supply manufacturing companies employing over 32,000 workers. These companies play a vital role in producing essential healthcare equipment, including blood transfusion devices, blood pressure monitors, needles, catheters, electrodiagnostic equipment, sterile sutures, and ostomy instruments.

Guzmán highlighted that the country has secured its position as the third-largest exporter of medical supplies to the United States in the region, surpassed only by Mexico and Costa Rica. This success has increased interest in developing the Dominican Republic as a biomedical hub, positioning the country as a key center for operations, logistics, and medical material distribution.

Positioning the Dominican Republic as a Biomedical Hub

The initiative to establish the Dominican Republic as a biomedical hub has gained momentum among key stakeholders in the healthcare and logistics industries. This effort was discussed in detail during a recent meeting led by Dr. Amado Alejandro Báez, Executive Advisor for Health and Well-being. The meeting brought together investors, medical professionals, U.S. authorities, and Inter-American Development Bank (IDB) representatives.

Dr. Báez emphasized the Dominican Republic medical device industry’s potential to become a logistics hub for the Americas, particularly in the classification, transportation, dispatch, and distribution of medical goods. He also expressed his intention to establish stronger connections with leaders in research, investment, and nearshoring, ensuring that the Dominican Republic remains a key player in the commercialization of medical innovation.

Government Support and Investment Incentives

The Dominican government is actively working to enhance the country’s appeal as a biomedical hub by improving regulatory frameworks and offering investment incentives. During the meeting, key officials, including Carlos Pimentel, Director of Procurement and Contracting, and Johannes Kelner, Deputy Minister of Industry, Commerce, and MSMEs, outlined investment opportunities and regulatory strategies to attract international businesses.

Representatives from ProDominicana, the General Directorate of Medicines, Food, and Products (DIGEMAPS), and the Dominican Pharmaceutical Industries contributed insights into the nation’s evolving medical manufacturing landscape. These discussions highlighted how regulatory support, streamlined business operations, and a skilled workforce can further bolster the Dominican Republic medical device industry and strengthen its role in the global healthcare supply chain.

Strengthening Ties with U.S. Partners and International Institutions

The Dominican delegation also met with representatives from the Inter-American Development Bank (IDB) to present their proposal for the logistics hub. Their discussions focused on securing institutional support and strengthening healthcare and medical digitalization integration.

In addition to IDB representatives, key attendees included members of the U.S. program America’s RISE, such as Patty Wu, Dr. Deus Bazira, Director of Global Health at Georgetown University, and business development leaders from Vitro Diagnostica, Carna Health, and Vision Americas International. These collaborations will enhance the Dominican Republic medical device industry’s ability to attract investment, develop cutting-edge medical technologies, and increase exports.

Global Players in the Dominican Republic’s Medical Manufacturing Sector

Ambassador Guzmán reiterated that among the 40 medical device manufacturing companies operating in the country, seven of the world’s 20 leading medical firms have already established a presence in the Dominican Republic. This underscores the nation’s attractiveness to major global players, who recognize its strategic location, cost-effective workforce, and favorable trade agreements with the U.S.

The Future of the Dominican Republic’s Medical Exports

With a strong foundation in medical manufacturing and growing government support, the Dominican Republic is well-positioned to expand its influence in the healthcare industry. Industry leaders are optimistic that the country will solidify its status as a top-tier biomedical hub in the Americas with continued investment in logistics, research, and innovation.

As the Dominican Republic continues to increase its exports, policymakers and industry stakeholders remain committed to fostering growth, creating high-quality jobs, and maintaining its reputation as a reliable supplier of essential medical equipment to the global market.

Conclusion

The Dominican Republic’s medical device industry has solidified its position as a leading exporter of medical supplies to the U.S., reaching a record-breaking $1.725 billion in exports in 2024. With 40 medical device manufacturers employing over 32,000 workers, the country is now the third-largest regional exporter, following Mexico and Costa Rica. Efforts to establish the Dominican Republic as a biomedical hub have gained traction, driven by government initiatives, investment incentives, and collaborations with key stakeholders such as the Inter-American Development Bank (IDB) and U.S. institutions.

Industry leaders emphasize the country’s potential as a logistics and distribution center for medical goods in the Americas, further supported by a favorable regulatory framework and strong U.S. trade ties. Major global medical firms have already established operations in the country, recognizing its strategic location and cost-effective workforce. Meetings with government officials and business leaders have highlighted investment opportunities and strategies to strengthen the country’s role in the healthcare supply chain. As the Dominican Republic continues expanding, its medical experts, policymakers, and industry stakeholders remain committed to fostering innovation, attracting investment, and ensuring long-term growth, reinforcing its reputation as a reliable supplier of high-quality medical equipment.

San Luis Potosí, Mexico, continues strengthening its position as a leader in producing 100% electric vehicles, thanks to significant investments and the ongoing expansion of BMW Group’s manufacturing plant. The support provided by the state government has been instrumental in fostering sustainable development, attracting more global investments, and reinforcing the region’s status as a central hub for the automotive industry. These efforts are elevating the state’s international standing in electromobility and improving local families’ quality of life by generating better employment opportunities. With these advancements, electric vehicle production in San Luis Potosí is becoming a defining factor in the state’s economic and industrial development.

This commitment to innovation and growth was reaffirmed by Jesús Salvador González Martínez, head of the Secretariat of Economic Development (Sedeco), during a recent visit to the BMW plant. He closely monitored the progress of the new Battery Production Center, a key component in integrating the automaker’s cutting-edge “Neue Klasse” architecture. This new vehicle platform is set to revolutionize BMW’s electric mobility strategy, aligning with the economic vision of Governor Ricardo Gallardo Cardona. The first production of vehicles based on this architecture is expected to begin in 2027, further strengthening electric vehicle production in San Luis Potosí.

San Luis Potosí: A Strategic Hub for Electromobility

González Martínez emphasized that San Luis Potosí has a unique opportunity to become the leading electric vehicle manufacturing hub in the Bajío region. He highlighted the state’s well-developed infrastructure, highly skilled workforce, and the strong commitment of global companies that continue to invest and expand operations in the region. BMW’s transition toward electromobility reflects the broader transformation of the automotive industry, and San Luis Potosí is at the forefront of this shift. The continued growth of electric vehicle production in San Luis Potosí places it among the most promising locations for future investments in sustainable mobility.

The ongoing expansion of the BMW plant is a crucial step in preparing for this new era of sustainable mobility. The Battery Production Center, currently under construction, will be essential for powering the next generation of electric vehicles. By localizing battery production, the company aims to optimize supply chains, reduce production costs, and minimize environmental impact by shortening transportation distances.

Investment in Workforce Training and Technological Advancement

A key element of this transformation is workforce development. According to González Martínez, engineers and technicians from San Luis Potosí are undergoing specialized training in Germany, learning advanced manufacturing processes that will define the future of vehicle production. These new methodologies emphasize a high degree of automation and cutting-edge technology, ensuring San Luis Potosí remains competitive in the global automotive market. The rise of electric vehicle production in San Luis Potosí has made the state a model for industrial transformation as companies increasingly invest in workforce training and technological advancements.

Investing in human capital is essential to maintaining high production standards and ensuring local workers have the skills to operate next-generation machinery. With automation and artificial intelligence playing a growing role in vehicle manufacturing, training initiatives like these help bridge the gap between traditional automotive production and future mobility solutions.

San Luis Potosí’s Global Automotive Impact

The BMW plant in San Luis Potosí has contributed to the company’s international supply chain. Since 2020, the facility has produced an impressive 406,139 vehicles, of which 390,141 have been exported to 80 global markets. This highlights the plant’s strategic importance and BMW’s confidence in the state’s ability to deliver high-quality automobiles to customers worldwide.

The state’s growing prominence in the automotive sector is further reinforced by its geographic location, which offers easy access to major national and international markets. San Luis Potosí is well-connected through a robust transportation network, including highways, railways, and proximity to key ports, making it an attractive destination for automotive investments.

A Future Driven by Sustainability and Innovation

Beyond economic benefits, the shift toward electric vehicle production aligns with global sustainability goals. As climate concerns drive the demand for greener transportation options, San Luis Potosí’s role in the electromobility revolution positions it as a forward-thinking player. The state’s support of renewable energy initiatives and green manufacturing processes will further enhance its appeal to investors and consumers seeking environmentally responsible mobility solutions.

With the continued support of both the public and private sectors, San Luis Potosí is on track to becoming a benchmark for electric vehicle production, not just in Mexico but on an international scale. Investing in infrastructure, workforce training, and cutting-edge technology will ensure the region remains competitive in the evolving global automotive landscape. As BMW and other industry leaders embrace the transition to electromobility, San Luis Potosí is poised to become a driving force in the future of sustainable transportation.

Conclusion

The evolution of electric vehicle production in San Luis Potosí marks a pivotal moment in the state’s industrial and economic development. With multinational companies like BMW making substantial investments and a government committed to fostering technological innovation, the state quickly becomes a leader in sustainable mobility. The combination of a highly skilled workforce, modern infrastructure, and strategic location makes San Luis Potosí an ideal destination for businesses looking to participate in the global shift toward electrification. As more companies join the movement toward green manufacturing and renewable energy integration, electric vehicle production in San Luis Potosí will continue to drive economic growth, job creation, and long-term sustainability. Looking ahead, the region’s commitment to electromobility will not only shape the future of the automotive industry in Mexico. Still, it will also serve as a model for other areas embracing clean energy solutions and technological advancement.

Adopting the Global Minimum Tax (GMT) is one of the most significant developments in the international economy in recent years, with the potential to reshape how multinational corporations are taxed globally. In this context, Uruguay, as a member of the Organization for Economic Cooperation and Development (OECD) and a key player in Latin America, finds itself at a fiscal crossroads that requires detailed and strategic analysis of how to implement and adapt to this new reality. This article explores the fundamental principles of GMT, its potential effects on taxation in Uruguay, and the challenges and opportunities it presents for the country regarding competitiveness, tax fairness, and foreign investment.

The GMT: A Paradigm Shift in Multinational Taxation

The GMT results from a concerted effort by more than 130 countries within the OECD and the G20 to counter aggressive tax optimization practices that allow large multinational corporations to avoid paying appropriate taxes using tax havens and transfer pricing structures. In September 2021, these countries agreed that companies with global revenues exceeding €750 million must pay at least 15% of their profits in each jurisdiction where they operate, even if that jurisdiction offers a lower corporate tax rate. This agreement significantly impacts taxation in Uruguay and redefines the role of tax incentives as tools for attracting investment.

The GMT is designed to correct the distortions caused by tax competition, which has often led to the erosion of tax bases and reduced countries’ ability to finance their economies. Multinational corporations have been accused of exploiting international tax loopholes to lower their tax burdens by benefiting from more permissive tax systems. The GMT aims to level the playing field by imposing a minimum tax rate that cannot be circumvented through offshore tax structures.

The Impact of the GMT on Uruguay’s Tax System

For Uruguay, a country that has adopted a competitive tax model based on incentives, the impact of the GMT could be significant. Over the past decades, Uruguay has established a series of attractive tax regimes, particularly for foreign investors. These include tax incentives in free trade zones, the Comap regime (Application Commission of the Investment Promotion Law), and favorable fiscal policies in technology, international trade, and logistics sectors. These regimes have been essential for developing key industries and attracting international investments, making taxation in Uruguay a critical factor in economic policy discussions.

Challenges in Adapting to the New Global Regulations

1. Compatibility with Free Trade Zones

Uruguay has pioneered the implementation of free trade zones, allowing companies to operate without paying taxes on their profits and enjoying benefits on importing and exporting goods. While free trade zones are a cornerstone of Uruguay’s investment attraction policy, the GMT could introduce restrictions on the applicability of these benefits, as the new international regulations aim to eliminate harmful tax competition. If so, Uruguay may need to revise its preferential tax regimes to align with the latest standards while preserving its competitiveness in taxation in Uruguay.

2. Impact on the Comap Regime and Investor Benefits

Another challenge arises concerning the Comap regime, which promotes investment in strategic sectors such as infrastructure, industry, and technology. This regime has attracted foreign direct investment (FDI) by offering tax exemptions on the Corporate Income Tax (IRAE) and other direct taxes. Implementing the GMT may require adjustments in how Uruguay grants these benefits, as the new tax ensures that large multinationals cannot benefit from tax rates below the global threshold. This could lead to reassessing Uruguay’s preferential tax regimes and impact taxation in Uruguay for multinational firms.

3. Potential Loss of Tax Competitiveness

While Uruguay has historically enjoyed a competitive advantage due to its attractive tax regimes, adopting a GMT could reduce its appeal compared to other jurisdictions that have not adopted these rules, particularly in the region. Multinational corporations might choose to relocate to countries with more favorable tax regimes or those that can offer more aggressive incentives without being restricted by a global minimum tax. This shift could create challenges for taxation in Uruguay as it seeks to balance compliance with international standards while maintaining its appeal to foreign investors.

Opportunities and Adaptations for Uruguay

1. Strengthening Tax Transparency and Enhancing International Image

Implementing the GMT offers Uruguay a unique opportunity to strengthen its international reputation regarding tax transparency. By aligning with global standards, the country could improve its ranking in fiscal governance indices and attract investment that is more committed to sustainability and corporate social responsibility. The GMT could increase confidence in Uruguay’s tax system, which would be crucial for securing more stable and long-term investment.

2. Adjusting Incentives to Maintain Competitiveness

Although Uruguay will likely need to adjust its tax incentives to comply with the GMT, mechanisms could still be used to maintain competitiveness. Uruguay could explore alternatives such as strengthening investment incentives in innovation and technology or sectors like renewable energy. The key will be adapting tax incentives to the new requirements while keeping the country’s strategic interests in focus, ensuring taxation in Uruguay remains attractive for global investors.

3. Adapting to the New Global Tax Framework Without Losing Appeal

Although Uruguay has historically relied on tax incentives, it can adapt without losing attractiveness. The country has a strong institutional framework, a diversified economy, and a growing reputation as a regional hub for financial and logistical services. These elements could continue positioning Uruguay as an attractive destination for foreign investments despite implementing the GMT.

The Current Debate: Challenges and Opportunities

In Uruguay, the debate on implementing the GMT is closely tied to the tension between competitiveness and international fiscal responsibility. While some business and academic sectors argue that the GMT could harm the country’s competitiveness and ability to attract investment, others contend that it is necessary for greater tax fairness. By adapting to global standards, Uruguay could strengthen its strategic position in the regional context.

Conclusion

The GMT marks a paradigm shift in international taxation, with direct implications for countries like Uruguay, which have built their investment attraction model on favorable tax policies. As Uruguay navigates this adaptation process, it will be crucial for the government to balance complying with new international rules and maintaining its tax competitiveness. Tax transparency, corporate social responsibility, and innovation in fiscal incentives will be key for Uruguay to remain an attractive destination for foreign investment, even in a more regulated global environment.

This complex process will require a technical and strategic approach from tax authorities and a detailed analysis of the short—and long-term consequences. Uruguay’s fiscal future will largely depend on its ability to adapt swiftly to this new global framework without compromising its economic growth or long-term development goals.