
Uruguay's President Yamandú Orsi on Tuesday assumed the pro tempore presidency of Mercosur and set as a priority of his term to keep modernizing the bloc and consolidate its trade opening, following the provisional entry into force of the agreement with the European Union. We want a more modern, more dynamic Mercosur, more open to the world, but above all a Mercosur that produces concrete results for its citizens, he said as he received the rotating presidency from host Santiago Peña of Paraguay, at the 68th summit of heads of state held in Luque.

Mercosur on Tuesday announced the start of trade negotiations with Japan and reaffirmed its intention to diversify alliances toward Asia during its biannual summit in Asunción, where Paraguay handed over the bloc's pro tempore presidency to Uruguay. The meeting, however, closed without an agreement on the internal distribution of export quotas under the treaty with the European Union, and again exposed the differences between Argentina and Brazil over the bloc's direction.

The internal distribution of export quotas under the trade agreement between Mercosur and the European Union will dominate much of the debate at the bloc's summit of heads of state, to be held on June 30 in Asunción, where Paraguay will hand over the six-month presidency to Uruguay. The meeting coincides with the 35th anniversary of the Treaty of Asunción, the bloc's founding charter.

Uruguay's government announced that twelve Mamba MK-7 armored vehicles from the National Army will begin to patrol, under police command, the Montevideo neighborhoods with the highest crime rates, a measure to reinforce the fight against organized crime that has opened debate in the political system. Interior Minister Carlos Negro confirmed that his ministry is working on a “very advanced” agreement with the Defense Ministry to carry out the deployment in the coming days.

Uruguay expanded its policy of searching for those who were detained and disappeared during the dictatorship with the signing of an accord for the treatment, preservation and administration of archives on human-rights violations committed in the country between 1968 and 1985. The agreement, signed on Monday in Montevideo, deepens a strategic pact reached by state bodies in February.

Uruguay enjoys a positive discrimination relative to other economies for its institutional solidity, respect for agreements and political maturity, but its economic growth has been low over the past decade and its potential GDP —now at 2.1%— is declining. That was the assessment of economists from BBVA Research, one of Europe's largest banks, at the Situación Uruguay webinar, where they said the country's main challenge is to boost investment and raise productivity.

Uruguay's Environment Minister, Edgardo Ortuño, said the ministry will incorporate artificial intelligence (AI) into environmental controls and push for a new environmental-crimes law, among the priorities he outlined ahead of the budget review (Rendición de Cuentas) that the Executive will present to Parliament on June 30.

Uruguay will assume the pro tempore presidency of Mercosur on June 30, during a summit of the bloc in Paraguay, with the distribution of the quotas from the agreement with the European Union (EU) among the main items on its agenda. Foreign Minister Mario Lubetkin said the country is already preparing to take on that role and that “the technical teams are already working.”

Uruguay sheep produce exports grew 28% between July 2025 and May 2026, totaling US$ 281 million, boosted by wool, 72% of income while lamb and mutton the remaining 27%.

Uruguay's President Yamandú Orsi fell to 12th among the 18 leaders in the June ranking of best-rated Latin American presidents compiled by the Argentine consultancy CB. With a 38.8% positive image, Orsi dropped one spot from May and remains in the survey's regular band.