MercoPress. South Atlantic News Agency

Uruguay-Mexico free trade agreement.

A free-trade treaty between Mexico and Uruguay became effective this Wednesday the eleventh Mexico has signed involving 42 countries.

The latest free-trade agreement removes virtually all industrial products tariffs and for farm produce, while remaining products will undergo a several year gradual process.

Mexican President Vicente Fox and Uruguayan counterpart Jorge Batlle signed the accord last November 15 during the Ibero-American Summit in Santa Cruz, Bolivia.

The treaty also sets up a framework for reciprocal investments and economic cooperation.

Uruguay has a population of 3.4 million with an annual per capita income above 4,000 US dollars and Mexico has a 103 million population with a per capita GDP of $6,000.

Mexico primarily exports industrial and chemical products to Uruguay, including automobiles, sodium sulfur, plastics and oil.

Uruguay sells mainly agricultural products, such as milk, cheese, animal fats, and leather, wool and synthetic clothing.

Mexico's first trade agreement was with Chile in 1992. Two years later, it joined the North American Free Trade Agreement, or NAFTA, with the United States and Canada.