The Uruguayan President, Dr Tabaré Vázquez, has signed a decree imposing special import duties on Argentinean products, including footwear and apparel, which are produced in provinces where industrial promotion regimes are in force. It is estimated that sales of approximately $52.5 million could be lost as a result of this action. 

The duties not only apply to goods produced in the Argentinean provinces of La Rioja, San Luis, Catamarca and San Juan, but also to any companies that have production facilities in these areas. Therefore companies with plants in the affected provinces and elsewhere will be forced to pay duties on all of their goods exported to Uruguay. 

The decree states that although the two countries are members of the Mercosur free trade area, there are “other commitments” in Uruguay that need to be protected.

The duties will either be equal to or lower than the Global Customs Tariff, which is approximately 18% but varies depending on the product.