Opinion Editorial

Secretary of Commerce Carlos M. Gutierrez
Opinion Editorial, El Pais
Montevideo, Uruguay
”The United States and Uruguay: Partners for the Future”

We face challenges today that no one country can face alone. This week, I have come to Montevideo to emphasize the commitment the United States has to President Vazquez’s Administration and to expanding our partnership with Uruguay.

During President Bush’s March visit to Montevideo, he described the trip as “a statement of a desire to work together with people in our neighborhood.” Our vision for the Western Hemisphere neighborhood is one of growth and prosperity. It promotes trade, encourages economic expansion and strengthens the delivery of true social justice, which we believe is about giving everyone an equal opportunity to succeed. Uruguay is moving steadily toward that vision with its advances in trade relationships, innovation and education.

Uruguay’s economy has recovered tremendously since 2003. Average annual growth was seven percent in 2006 and the economy is expected to grow by five percent in 2007. The country’s journey toward economic prosperity has passed significant points. Last fall, our Bilateral Investment Treaty came into force and in January of this year, the Vazquez Administration signed a Trade and Investment Framework Agreement with the United States. And, U.S. owned companies operate in Uruguay and market many more goods and services here, but there is tremendous potential for growth.

This week I will meet with Uruguayan government and business leaders to discuss how to promote future growth in trade and investment. The government’s economic team is following a broad market-friendly economic policy and making foreign direct investment a priority.

We know that free trade helps create good jobs. And, the appetite for trade is growing throughout the Hemisphere. In 2004, the United States became the largest destination for Uruguayan exports. Exports to the U.S. skyrocketed from $193 million in 2002 to reach a peak of $732 million in 2005, supplanting Brazil for two years running as the number one destination for Uruguayan exports. We’re excited about Uruguayan consumers having more access to U.S. products and more choices─U.S. exports to Uruguay grew 131 percent from $209 million to $482 million from 2002 to 2006.

Another important area for economic growth is tourism. Uruguay is a major tourist destination for the whole southern cone region. The tourism industry is on track to spur the Uruguayan economy through the increase of travelers from regions outside of Latin America, such as Europe and North America.

Uruguay is making great strides in a number of innovative programs and initiatives. Promotion of technology-based entrepreneurship is increasing here through new programs such as the Knowledge Development Center, set up by the Laboratorio Tecnologico del Uruguay (LATU) and a number of leading software developers.

Uruguay exports more software than other Latin countries, such as Chile and Colombia, and much of this software is developmental and proprietary. The highly trained Uruguayan workforce has been able to adapt to new technologies and the development of new tools, increasing overall productivity.

We know there’s no better investment to boost competitiveness than that of a skilled workforce. Nearly all Uruguayans are literate and secondary schools in the country have the highest schooling rate in Latin America.

In 2006, Uruguay chose to participate in the first phase of the One Laptop Per Child program, a U.S.-based non-profit dedicated to developing a $100 laptop with the goal of revolutionizing the education of children around the world.

Investors are looking for talent on a worldwide basis, and the “war for talent” is a key determining factor in investment decisions. With a good telecommunications infrastructure and technologically savvy entrepreneurs, Uruguay is well placed for the jobs of the 21^st century.

Uruguay is making progress in opening doors for business, creating advances in technology and forming a concrete base of education available to its children. To continue on this path, Uruguay must work toward a stronger environment for trade and investment, and increased access to technology and education for its citizens.

President Vazquez joins other leaders in the hemisphere, like Presidents Bachelet, Uribe and Calderon, who see their future economic growth in the face of increasing competition from Asia as being linked with market reform and further integration with the U.S. and neighbors.

By continuing to press for further reforms and economic openness, together the United States and Uruguay can move toward the vision of a Western Hemisphere full of hope, growth and opportunity.

-Carlos M. Gutierrez is the United States Secretary of Commerce.