MercoPress. South Atlantic News Agency

Uruguay, U.S. sign trade and investment treaty.

Representatives for Uruguay and the United States signed here Monday a bilateral treaty on safeguarding foreign investment and promoting two-way trade.

The document was signed by Economy Minister Isaac Alfie and Foreign Minister Didier Opertti for Uruguay and by U.S. Deputy Trade Representative Peter Allgeier.

On hand for the ceremony were Uruguayan President Jorge Batlle and his entire Cabinet. "This agreement levels the playing field and ensures that Americans are treated equitably by increasing protection for U.S. investments in this South American nation,"

Allgeier said after signing the pact. "This agreement will also deepen our economic relationship with Uruguay, thus encouraging two-way trade." The representatives of both nations hailed the speedy negotiations and the efforts made by the officials, technicians and specialists on international trade law in talks that culminated Sept. 7.

The negotiations emerged from a decision made by Washington and Montevideo in November 2003 Bilateral trade between the countries amounted to $582 million in 2003, according to U.S. statistics.

Uruguayan exports to the United States grew 164 percent in the first seven months of the year, and a series of U.S. firms launched operations in Uruguay.

At the end of the ceremony, Batlle said the United States is now "the biggest buyer of Uruguayan goods," stressing that the U.S. and Mexico together purchase half of Uruguay's annual dairy production.

In addition, the United States buys 73 percent of Uruguay's total exports of beef, the South American country's primary product.

Under the agreement, U.S. investors and binational joint ventures will be treated on a par with those of domestic firms.