Forestry Sector Report

Besides its excellent climate and soil conditions for
timber production, there are opportunities for adding
value in the industrial stage.
August, 2014
Forest Industry Table of Contents 1. WHY INVEST IN THE URUGUAYAN FOREST INDUSTRY? ................................................................... 2 2. ECONOMIC SIGNIFICANCE OF THE FOREST INDUSTRY IN URUGUAY ................................................... 3 2.1. CHARACTERIZATION OF THE SECTOR ........................................................................................ 3 2.2. SECTOR SHARE IN THE ECONOMY'S GDP .................................................................................. 3 2.3. POWER GENERATION FROM FOREST RESOURCES ....................................................................... 4 2.4. EMPLOYED PERSONNEL ......................................................................................................... 4 2.5. FOREIGN DIRECT INVESTMENT (FDI) IN THE SECTOR .................................................................. 5 2.6. EXPORT SECTOR ................................................................................................................... 6 3. THE URUGUAYAN FOREST ........................................................................................................ 11 3.1. FOREST PRIORITY AREAS ...................................................................................................... 11 4. INFRASTRUCTURE ................................................................................................................... 15 5. AVAILABILITY OF WOOD AND VALUE‐ADDED OPPORTUNITIES ........................................................ 17 5.1. PLANTED SURFACE AREA ............................................................................................... 17 5.2. FUTURE WOOD SUPPLY ................................................................................................ 17 6. REGULATORY FRAMEWORK AND TAX BENEFITS ........................................................................... 18 6.1. GENERAL INVESTMENT PROMOTION SCHEME (LAW 16,906) ............................................... 18 6.2. INVESTMENTS IN THE FORESTRY INDUSTRY ........................................................................ 18 6.3. GOVERNMENT’S GENERAL INCENTIVES TO EXPORTS ............................................................ 18 6.4. FREE ZONE SYSTEM ...................................................................................................... 19 6.5. SPECIFIC INCENTIVES FOR THE FORESTRY INDUSTRY IN URUGUAY ........................................... 19 6.6. OTHER RULES OF RELEVANCE TO FORESTRY ....................................................................... 19 7. THE FUTURE FORESTRY SECTOR ................................................................................................. 20 7.1. FORESTRY PRODUCT CERTIFICATION ................................................................................ 20 7.2. INTEGRATION WITH OTHER SECTORS................................................................................ 20 7.3. CARBON CERTIFICATES ................................................................................................. 20 7.4. WOOD CONSTRUCTION ................................................................................................ 20 8. INSTITUTIONS AND STAKEHOLDER IN THE SECTOR ........................................................................ 21 8.1. FORESTRY BUREAU (DGF) ‐ MGAP ................................................................................ 21 8.2. FOREST AND WOOD SECTOR COUNCIL ............................................................................. 21 8.3. OTHER INSTITUTIONS ................................................................................................... 22 ANNEX 1 ‐ TRADE AND INVESTMENT PROTECTION AGREEMENTS ............................................................... 23 ANNEX 2 ‐ TYPES OF FORESTS ............................................................................................................... 23 URUGUAY AT A GLANCE (2013) ........................................................................................................... 24 MAIN ECONOMIC INDICATORS 2008‐2013 ........................................................................................ 24 Forest Industry 1. Why invest in the Uruguayan forest industry? Uruguay has grown at an annual average rate of 5.7% between 2004 and 2013, which makes it one of the leading countries in terms of regional growth. Foreign investment has reached record levels, which enabled Uruguay to position itself as the second largest recipient of FDI in 2013 in South America (5 % in terms of GDP). It has a consolidated democratic system, in which the three major political parties have alternated in Government, always keeping their commitment with the rules of the game. A favorable business climate, a big social stability, with fiscal stimulus for the investor and a strong corporate responsibility. Geographical location: Uruguay is located at the same latitude as other major forestry developments in the southern hemisphere. Uruguay’s climate is similar to that of Australia, New Zealand, South Africa and the central regions of Argentina and Chile and features weather and soil characteristics that ensure very good levels of competitiveness on an international scale. Uruguay has a stable legal framework that is beneficial for investments in the forest industry and has a national good practices code for forestry to achieve sustainable production and to meet international requirements1. In 2013, forestry complex exports (wood, cellulose and paper) accounted for 10% of the country's total exports. Forest industry will account for 14% of Uruguay´s exports and 4,5% of the GDP, once Montes del Plata´s factory reach its full capacity. Uruguay aims at a greater integration of forestry activities and extensive cattle farming, which would increase production whilst demonstrating a greater efficiency in the use of natural resources. In Uruguay there are significant opportunities for the establishment of industries that add greater value to wood. Uruguay is making progress in the promotion and development of construction in wood, providing opportunities for new companies that aim to produce supplies therefor. The Council of Forest and Wood industries (CSFM, for its Spanish acronym) formed by entrepreneurs, workers and technicians from the private and public sector provides institutional support to the sector's activity. There are leading foreign companies who have chosen Uruguay to set up and develop their activities. UPM (Finnish company) established itself in Uruguay in 2007, Montes del Plata in 2009 (Chilean and Swedish‐Finnish company) and Weyerhaeuser Productos S.A. (US company) has been operating in Uruguay since 1996, among others. 1 Approved in 2004 the National Code for Good Forestry Practices was developed by the Forestry Bureau, the Inspector General of Employment and Social Security, the National Environment Bureau, the National Agricultural Research Institute, the Forestry Department of the University of Agronomy, the Uruguayan Association of Agricultural Engineers, the Uruguayan Forestry Contractors Association and the Society of Foresters. Available at: http://bit.ly/1iLl5tl. 2
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry 2. Economic significance of the forest industry in Uruguay Secondary stage: Industrial, comprising wood processing activities carried out in several chains, including commercial sale. Logistics, transport and associated professional services. 2.1. Characterization of the sector The forest industry in Uruguay consists of various activities that range from seed and seedling production to the final shipment of finished products. The sector includes at least four industrial chains: Cellulose paper production chain (untreated round wood, chips, pulp, paper and cardboard, etc.) Mechanical processing: processed wood products (treated round wood, sawn wood, boards, joinery, furniture, moldings, etc.) Chemical industry (resins, essential oils, bio‐plastics, bio‐refineries, etc.). Currently undeveloped in Uruguay. The Uruguayan forestry industry is characterized by a strong vertical integration that covers agricultural and industrial activities and all intermediate processes to the final sale of products. In particular, some of the large exporting companies ensure their own supply of raw materials. The largest sawmills use mainly domestic raw materials and direct production towards foreign markets, while smaller mills focus mainly on the domestic market. Energy chain (firewood, electricity produced from biomass, among others). Paper manufacturers produce both for foreign and domestic markets. These companies have their own pulp production mills for in‐house supply for the paper production process. There are three types of activities within the sector which can be grouped as follows: 2.2. Sector share in the economy's GDP Primary stage: Agriculture (forestry), which includes the production of reproductive material and seedlings in nurseries, tree planting and intermediate treatment for forests and harvesting. According to data furnished by the Central Bank of Uruguay (BCU), the GDP of the sector's primary stage (forestry, logging and related services) has reported a rising trend, Source: Uruguay XXI based on the industrial Plan 1 document of the Production Office‐ MIEM, DNI. 3
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry registering an average annual growth rate of 4.8% between 2004 and 2013. Thus, the sector's share in the overall GDP of the economy has remained relatively steady in the last ten years, ranging between 0.5% and 0.6%. 2.3. Power generation from forest resources 130 Power generation from forestry residue (forest biomass and by‐products from mechanical and chemical processing) is among the activities related to the industrial phase, which became more relevant and have significant future prospects due to the increase in raw material supply and State policies in the area. In fact in 2012, 12% of the electricity generated in the country derived from biomass waste. 120 Biomass power generating plants Chart No. 1: GDP forestry, logging and related services (Index 2002=100) 160 150 140 110 100 90 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Uruguay XXI based on data furnished by the BCU. Meanwhile, added value in the industrial stage has also shown a strong upward trend (see chart), especially since UPM's pulp mill began operating. This has led to an increase in the share of the "Manufacturing of wood and wood products, paper and paper products" in the economy's GDP going from approximately 1.3% in the early 2000s to almost 3% in the past few years. Chart No. 2: GDP forestry complex industrial stage (Thousands of $ in legal currency of 2005)
20,000 Currently in Uruguay there are companies in the sector that have biomass power plants to generate electricity, such as: ‐ UPM, generating over 130MW on a monthly average, 40MW of which approximately has been sent to UTE. ‐ Bioener, with a 12 MW capacity. ‐ Weyerhaeuser Productos S.A., with a 10 MW installed capacity ‐ 6 MW of which are for internal consumption and the rest is sold to UTE. ‐ Fenirol, with a 10 MW power generation capacity, 1.2 MW of which are consumed in the operation of the plant and the rest is sold to UTE. ‐ Liderdat, with a 5 MW power capacity. ‐ Montes del Plata also generates its own Paper and paper products (including cellulose pulp)
18,000 16,000 power, between 170 MW. Up to 80 MW of this power could be sold to the national grid. Wood products
14,000 12,000 10,000 2.4. Employed Personnel 8,000 6,000 4,000 2,000 ‐
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Uruguay XXI based on data furnished by the BCU. Finally, it should be noted that Forest industry will account for 4,5% of the anual GDP, once Montes del Plata´s factory reach its full capacity. 4
According to the data furnished by the Social Security Fund, the sector employs over 16,500 workers. This figure does not include indirect employment generated by the sector, which encompasses transport and logistics activities, as well as related services2. 2
To get an idea of the extent of these production chains, it is worth noting that UPM indirectly generates through its suppliers 3,386 jobs (2013). Source: CPA‐
UPM. [email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry Table No. 1: Job Positions in the different forest‐based sector activities Forestry and logging 8,901 Wood product manufacturing Paper and paper product manufacturing (including cellulose) 4,853 TOTAL* 16,579 2,825 Source: Uruguay XXI based on data furnished by the Social Security Fund (BPS) ‐ August 2013. (*) The construction of the Montes del Plata mill had a significant impact on the employment sector. Approximately 3,200 workers were employed, mainly Uruguayan, on a monthly average reaching a maximum of 6,0003. When the construction works conclude, 500 people will benefit from direct employment and it is expected to generate 5,000 indirect job positions. 2.5. Foreign Direct Investment (FDI) in the sector Foreign direct investment in Uruguay has grown strongly, tripling in the last 7 years. Uruguay has become the second largest recipient of foreign investment in South America. In 2013, FDI reached an all‐time record ‐ US$ 2,796 million, which accounted for 5% of GDP. In terms of sectors, companies operating in forestry and logging accounted for an important share of the total FDI between 2005 and 2008, when they expanded their participation throughout the country, accumulating almost US$ 700 million. This represented 12% of FDI inflows during said period. Chart No. 3: Forestry and logging companies' FDI (in millions of USD) 200
180
160
140
120
100
80
60
40
20
0
2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Uruguay XXI based on data furnished by the BCU. Outstanding investments in the forestry industry UPM The Finnish company, UPM, is one of the largest wood pulp manufacturers worldwide. In 2009, UPM acquired the major stake in Botnia S.A. The company has production plants in 17 countries and its annual sales exceed 10,000 million Euros. In Uruguay, UPM directly employs 550 people and over 2,800 throughout its entire production chain, including nursery operations, forest plantations, transport, plant and port. The company has a subsidiary, UPM Forestal Oriental, which has been operating in the country for over 20 years and supplies wood to the Fray Bentos plant. Nearly 70% of the wood comes from company‐owned plantations and 30% from over 200 farmers who are members of the Fomento Program. WEYERHAEUSER 3
Weyerhaeuser was founded in 1900 and is one of the leading forestry companies in the world. The company manages commercial forests and production plants in nine countries (United States, Canada, Japan, China, Uruguay, Belgium, Poland, South Korea and Switzerland) and employs over 14,000 people worldwide. Weyerhaeuser set Source: www.montesdelplata.com.uy/mdptv.php 5
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry up in Uruguay in 1996, expanding its market share in the years thereafter. Chart No.4 – Exports from Uruguay – Forestry sector (Millions of USD) In Uruguay, Weyerhaeuser manages forests in the departments of Rivera, Tacuarembó, Cerro Largo and Treinta and Tres. Its total forest estate is of 132,000 hectares. 1,200
1,000
800
MONTES DEL PLATA 600
A cellulose pulp producing company founded in Uruguay in 2009. The company came about from the partnership of two of the most notable forestry companies in the world: Arauco, a Chilean‐owned company, and Stora Enso, a Swedish‐Finnish company. 400
The company has a total of 190,000 hectares ‐ 140,000 of which are planted, while the remaining are either not planted or are biology conservation areas, native forests or native species in which the company carries out environmental conservation and monitoring activities. The plant is expected to produce 1.3 million tons of cellulose per. The plant began its operation on June 2014. Pulp
Wood (no FZ)
200
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Uruguay XXI based on information furnished by the National Customs Authority (DNA) Wood Pulp Exports Wood pulp is the main input in the production of paper and cardboard. Cellulose exports were estimated at US$ 604 million in 2013, representing 6% of Uruguay's total sales abroad5. Chart No. 5. Pulp exports 1,400 756
800
728
1,200 629
1,000 604
569
800 2.6. Export sector 600 4
Note: The total export figures include all sales made from Uruguay. Therefore, exports of medicines, PEPSICO products and cellulose from Free Zones are included. 6
600
500
400
300
400 Forestry sector exports have experienced great dynamism in recent years. This increase has been strongly related to the installation of the UPM wood pulp mill which has added great value to part of the wood production, leaping in placements of the sector since 2008. Even though the international crisis and the maintenance works performed in UPM caused a drop in the sector’s exports in 2009 (both in volume and value), in 2010 they rebounded to US$ 1,103 million. In 2013, forestry complex placements (wood, wood products, cellulose, paper and cardboard) stood nearly at US$ 1,000 million, accounting for 10% of the country's total exports4. 348
700
200
200 100
0 0
2008
2009
2010
2011
2012
2013
Million US$ (right axis)
Thousand tons (left axis)
Source: Uruguay XXI based on data provided by the National Customs Office (DNA). Wood pulp exports are re‐exported through the Nueva Palmira Free Zone, after being processed in the Fray Bentos Free Zone. The main destinations for this product in 2013 were China (43%) and the Netherlands (33%)6. Other destinations were Italy, Germany, South Korea and Hong Kong. 5 Note: Idem. Since the Netherlands serves as a distribution center for goods entering into Europe, it is likely that a good part of the cellulose that enters said country has other final destinations. 6
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry Wood exports (excluding Free Zones) Even though wood exports have reported a fluctuating behavior between 2008 and 2013, this year's values have been 2.5 times higher than ten years ago. This rise is strongly linked to the increased sales of chips, sawn wood and wood boards. Sawn wood and wood boards In recent years the substantial increase in the export of wood boards and sawn wood has been notable since these are the products incorporating the highest added value. Namely, both the export of boards and sawn wood has reached record levels in 2013, standing at US$ 85 and US$ 63 million, growing 17% and 27%, respectively. Sawn wood and wood boards Regarding foreign sales of wood chips and round wood, performance was less dynamic than in the previous cases. On the one hand, although the export of wood chips showed a 16% increase in 2013, they stood almost halfway below the record levels of 2008 and 2011 (just over US$ 160 million). On the other hand, round wood exports reported a significant drop as of 2007 when great part of the production was redirected to the UMP pulp mill. Chart No. 6. Exports of wood and wood products (excluding Free Zones) – US$ millions 300 250 200 150 100 350
Other
Chips (4401)
Round wood (4403)
historical standpoint. The increase was mainly due to higher prices, as placement volumes remained relatively stable. However, it is worth mentioning that in recent years a slight downward trend has been noticed in a context of difficulties for product placement in Argentina, the industry's main export destination. Chart No. 7: Paper and cardboard exports 100
120
Million US$ (left axis)
90
Thousand tons (right axis)
100
80
70
80
60
50
60
40
40
30
20
20
10
0
0
2001
2003
2005
2007
2009
2011
Source: Uruguay XXI based on data furnished by the DNA. ‐4412)
According to data from the Social Security Fund (BPS), in Uruguay there are approximately 1,850 companies connected to the forestry complex. Over 90% of these companies are micro and small enterprises with less than 20 employees. Among exporting firms, UPM currently represents over 60% of exports. UPM Forestal Oriental, who sold round wood for a value of US$ 247 million to the Fray Bentos Free Zone, is the company‐owned wood pulp mill supplier. 50
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Uruguay XXI based on data furnished by the DNA. Paper and cardboard exports As can be seen in the following chart, overseas sales of paper and cardboard have reached extremely high levels from a 7
Exports by company Sawn wood (4407)
Wood boards (4408
2013
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry Table No.2 – Major exporting companies – Forestry Sector (2013) In millions Company of US$ 2013
UPM (1) 604
UPM Forestal Oriental * 247
Compañía Forestal Uruguaya.* 28
Exports of other companies
Weyerhaeuser Productos S.A. 60
Fábrica Nacional De Papel S.A. 41
Urufor S.A. 36
Forestal Atlántico Sur Soc. Ag 33
Industria Papelera Uruguaya 28
S.A. Urupanel S.A. 26
Comercializadora Grupo 25
Forestal Foresur G.I.E. 23
Eufores S.A. 19
Sub‐total (2) 291
Other (3) 66
Sector total (1+2+3) 961
Export Outlook The outlook for 2014 envisages a significant growth in the export of wood pulp, associated with an increase in the volumes placed. % of total
63%
In late 2013, the Uruguayan government authorized an expansion of the approved production amounts for the UPM wood pulp mill which is currently active. This increase in production will lead to an increase of 100,000 tons in 2014. 6%
4%
4%
3%
3%
Additionally, in June 2014 the new Montes del Plata plant began operations, planning to produce 1.3 million tons of wood pulp per year. In 2014 production would reach 500,000 tons. Once the plant reaches full capacity, Forest Industry will account for 14% of total exports. 3%
3%
2%
2%
30%
7%
100%
In terms of price, the short‐fiber pulp (a reference in our country) is expected to undergo a slight price reduction in international markets with regard to previous years. This decline would occur in the context of a downturn in China’s economy (the main cause of increase in commodities prices in recent years) and reduction of global liquidity. (*) These sales are directed to the Fray Bentos Free Zone and are an input for UPM's production of wood pulp, therefore they are not included in the total exports of the sector. Finally, it should be noted that the completion of a third wood pulp mill in the country by 2016 has been announced. It would be located in Paso de Las Piedras on the border of the departments of Durazno, Cerro Largo and Tacuarembó7. Table No.3: Number of companies of the forestry complex by segment and size Afforestation and wood extraction Manufacture of wood products Manufacture of paper and paper products (including pulp) TOTAL Micro and small enterprises (less than 19 employees) 895 925 Medium enterprises (20‐
100 employees) 87 35 1,685 Large enterprises (more than 100 employees) TOTAL 12 4 994 764 135 23 1,843 7 Source: Major Investment Projects in Uruguay Report – MIEM‐DNI. Press: El País newspaper: http://www.elpais.com.uy/informacion/tres‐
departamentos‐nueva‐planta‐celulosa.html 8
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry Table No. 4: Main export destinations of the Uruguayan forestry sector. 20138 Product FOB US$ million %/total Portugal
53
65% Spain
20
25% Norway 5
6% Sub‐total
79
96% Total
83
100% Vietnam
7
20% China
5
14% Spain
2
6% Sub‐total
15
41% Total
Country
Chips Round wood (excluding Free Zones) Sawn wood 36
100% United States 10
16% China
8
13% South Korea
8
13% Sub‐total
27
42% Total
63
100% Mexico
34
40% United States 17
20% Chile
11
13% Sub‐total
62
72% Total
85
100% Argentina
55
60% Brazil
13
14% Paraguay
Wood boards Paper and cardboard 11
12% Sub‐total
79
87% Total
91
100% China
259 43% Netherlands
201 33% Italy
55 9% Sub‐total
516
85% Total
604 100% Cellulose 8
Source: Uruguay XXI based on DNA. 9
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry Table No.5: Main products with its three main companies. 20139 Product Chips* Round wood* Sawn wood Wood boards Paper and cardboard Cellulose Company
Forestal Atlántico Sur Soc. Ag
Comercializadora Grupo Forestal FORESUR G.I.E. Sub‐total Total Eufores S.A. Compañía Forestal Uruguaya S.A. Forestal Atlantico Sur Soc. Ag Sub‐total Total Urufor S.A. Dank S.A. Banking Retirement Fund
Sub‐total Total Los Piques S.A. (Weyerhaeuser S.A.) Urupanel S.A. ‐.‐ Sub‐total Total Fábrica Nacional De Papel S.A. Industria Papelera Uruguaya S.A. CA.SA.BO. S.A. Sub‐total Total UPM Total FOB US$ million 31 25 23 79 80 19 4 2 25 36 36 16 8 59 63 60 15 ‐.‐ 75 75 41 28 10 79 91 604 604 %/total
39% 32% 28% 99% 100% 52% 12% 6% 70% 100% 56% 25% 13% 94% 100% 80% 20% ‐.‐ 100% 100% 46% 31% 11% 87% 100% 100% 100% 9
Source: Uruguay XXI based on DNA. Note (*): The export of round wood and chips do not include sales to Fray Bentos Free Zone. 10
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry 3. The Uruguayan forest Uruguay is situated at the same latitude and climatic zone as the south of Australia, New Zealand, South Africa and central regions of Argentina and Chile, where the main forestry undertakings of the southern hemisphere are located. These climatic and soil conditions ensure those engaged in logging operations high levels of global competitiveness. High quality wood is produced on Uruguayan plantations and is used for cellulose pulp production as well as for solid wood products. 3.1. Forest priority areas influenced by the sea, with an absence of extreme temperatures. This has led to a better adaptation of species such as Eucalyptus globulus. The main purpose of the plantations in this area is the production of wood pulp, to supply the UPM plant in Fray Bentos and soon the Montes del Plata plant in Conchillas, Colonia, and the export of wood in chips. Plantations for the production of wood pulp have a short production cycle (8 to 10 years). In this region, the departments that concentrate a greater forest area are Lavalleja (130,000 ha), Rocha (97,000 ha) and Maldonado (95,000 ha). The North Central region is the largest forested area with 46% of the total artificial forests in Uruguay. This area has frosts in winter and higher temperatures in summer and due to its sandy soil, it is appropriate for Eucalyptus grandis and Pinus species. The main destination of wood is mechanical processing12. The main points of departure of wood production in this region are Paysandú, Fray Bentos or Montevideo, depending on the location and type of product. The departments with the largest forest area in this region are Tacuarembó (210,000 ha), Rivera (179,000 ha) and Cerro Largo (105,000 ha). Forestry activity in the country has grown steadily over the past 25 years; in these years the planted surface area has multiplied by 30. In 2012 the planted area reached 1.45 million hectares (affected area10). Moreover, the forest priority area covers 4 million hectares11, 23% of the country's total agricultural area. The type of soil, the climate and the distance to production departure points have an effect on forestry plantation characteristics. This divides the country into three regions in accordance with criteria established by the National Forest Authority (DGF): The South‐East region is the nearest to the port of Montevideo. The area is strongly Table 6: Type of forest according to area ‐ 2012
Protected areas
Area for industrial purposes Area Native forest Combined
Shelter and shade Coniferous
Leafy trees Total
South‐East 63% 3%
6%
26%
2% 100%
Center‐North 55% 0%
4%
20%
20% 100%
East‐West 45% 0%
5%
45%
5% 100%
Source: Uruguay XXI based on DGF.
Note: Includes roads and firewalls. 11 Decree No. 191/006, available at http://www.mgap.gub.uy/Forestal/ModificacionDecre
to452_988de16_06_06.pdf Note: This is mainly due to the business strategy of the main companies of the region, such as Weyerhaeuser Productos S.A., URUPANEL, GFP, FYMNSA, GMO and COFUSA. 10
11
12
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry Picture No. 2: Forest priority soils Fonte: Uruguay XXI based on DGF. 12
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry Table No.7 – Afforested and forest priority area by region (Thousands of hectares) – 2012 Area Departments Center‐ North West Native Forest Artigas, Rivera, Tacuarembó, Durazno, Cerro Largo, y Treinta y Tres Salto, Paysandú, Río Negro, y Soriano South‐West Colonia, Flores, San José, Florida, Canelones, Montevideo, Lavalleja, Maldonado, y Rocha Total Forest priority declared area 378
Planted surface area 306 169 209 633 304
180 1,304
850
695 4,114
2,177
transport of forest products are Fray Bentos, Nueva Palmira and Paysandú. In this region the departments of Paysandú (16,000 ha) and Río Negro (115,000 ha) have the largest forested area. Finally Table No.6 shows the distribution of the country's forested surface area per region and species. Excluding native forests, 60% of the total forested area corresponds to the genus Eucalyptus (with a majority of three of its subspecies), while the Pinus genus accounts for 25% of said area. The West Coast region also has frosts in winter and sandy loam to sandy soils. In this area plantations of different species coexist of the Salicaceae family and in a smaller share the Eucalyptus and Pinus genera. The two latter types have a slightly lower yield in this area as compared to the northern region. The wood is mainly destined for the production of wood pulp and secondly for the mechanical processing industries. The departure ports and bridges used for the 13
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry Picture No. 3: Forested hectares by region Source: Digital Map of Uruguay XXI 14
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry 4. Infrastructure Uruguay has the densest road network of Latin America and has positioned itself in many international rankings as one of the economies with the greatest efficiency in logistics. Table No. 8: Infrastructure Ranking – World Economic Forum 2013‐2014 – Selected countries In the world Panama Chile Uruguay Brazil Peru 37 45 49 70 89 In Latin America
1
2 3 5 11
This road network enables the connection of major production centers and stockyards with the country's major ports. However, the significant growth in production and exports has imposed great challenges in terms of infrastructure. In this backdrop, the country has been working on important projects, which will ensure world‐class infrastructure.  New forestry products and solid bulk terminal in Montevideo: The port of Montevideo is building a new terminal specializing in stockpiling, shipment of wood chips and bulks in general and the construction of a berth in Montevideo. Construction works began in the second half of 2013, with a maximum period of eighteen months for its completion. The infrastructure will include a berth for large bulk carriers and a belt for the transport of loads on land.  Road corridors: Under the Public‐Private Partnership Contracts system, the existing portfolio contains a package of seven road corridors, totalizing an investment of over US$ 1,100 million. The rehabilitation of routes 21 and 24 is underway.  La Paloma Port, Rocha: the reconstruction works of the wharf, areas of circulation and new access road have 15
been completed. Stockpiling areas have also been developed in order to accumulate the wood when vessels do not depart. This project is of utmost importance for the export of wood coming from the eastern part of the country, since it will enable to move a load of 250 thousand tons annually, which corresponds to approximately 25% of the flow of wood from the area. Although this load level has not been achieved, it is already running. In particular, UPM has started moving wood from La Paloma Port to Fray Bentos.  Deep Water Port (PAP, for its Spanish acronym): In the coming years Uruguay will build a deep water port, which will represent a major change in the logistics of the region. In particular, a call for the preparation of a basic project is being drafted, after which the bid specifications will be prepared. This port is expected to have 5 times more activity than Montevideo, moving over 50 million tons annually. Initially, it would operate with bulk cargo (grains, minerals, liquids); without prejudice to evolve to the handling of other cargos (containers). The investment for the Deep Water Port development is estimated in US$ 1,000 million approximately. The Deep Water Port will be located on the Atlantic coast of the Department of Rocha. A surface of 2,500 hectares is projected for the development of related activities and services and 200 hectares to host protection and shelter, mooring and maneuvering works.  Railway development: Although currently 50% of the railways are not used, the country has been encouraging the development of several initiatives based on Public‐Private Partnership agreements in order to develop part of the railway network. Among the projects currently underway is the restoration of 141 kilometers of railroad between Algorta and Fray Bentos (with an estimated investment of US$ 120 million) and 456 kilometers between Montevideo and Rio Branco (border of Cerro Largo [email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry with Brazil), which entails an investment of US$ 300 million.  Mbopicuá Port Terminal and Punta Pereira: These are the two terminals used by Montes del Plata. M'Bopicuá has a pier of 192 meters long and Punta Pereira has two terminals attached to the plant: an ocean pier 230 meters long and 12.25 meters deep and a fluvial terminal. Picture No. 4: Uruguay’s infrastructure map PORT
PORT OF OF
NUEVA
PALMIRA
NUEVA PALMIRA FUTURE DEEP
WATER PORT
PORT OF
MONTEVIDEO
Mechanical processing industrial plants
Source: Digital Map of Uruguay XXI 16
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry Chart No. 9: Minimum estimated supply of wood destined for pulp (thousands of m3)14 5. Availability of wood and value‐
added opportunities 5.1. Planted surface area As shown in the chart below, in the nineties a strongly increasing rate of pine and eucalyptus plantations was observed, which dropped towards 2000. Between 1990 and 2010 the average planting rate was 28,710 ha/year of eucalyptus and 11,123 ha/year of pine. Chart No. 8: Planted surface area (in ha)13 Eucalyptus
Pine Between 2010 and 2030 the average annual supply of wood destined for mechanical processing is estimated at 4.2 million m3 (3 million m3 of pine and 1.2 million m3 of eucalyptus). As the installed industrial capacity for mechanical processing is estimated at 1.4 million m3, there are interesting prospects for processing and adding value to this wood. Chart No. 10: Projected supply of wood destined for mechanical processing (thousands of m3)15 5.2. Future wood supply According to estimates of the Forest Sector Council, there is a significant amount of forest resource with interesting opportunities for adding value. In fact, between 2010 and 2030 the average annual supply of eucalyptus wood is estimated between 14 and 17 million m3, 10 to 13 million m3 of which are destined for the production of pulp. Since each of the operating wood pulp factory have an estimated consumption of 4 million m3 per year and in 2014 the second pulp mill will being operations in the country, there will be a surplus that could be allocated to other uses. 13
Source: Ministry of Livestock, Agriculture and Fisheries (MGAP, for its Spanish acronym) 2012, Wood Products Export Promotion Program First Report ‐ Forest and Wood Sector Council ‐ DNI. 17
8000
6000
4000
2000
0
Eucalyptus
Pine
The above scenario implies opportunities for investment in value‐adding processes and the creation of new products. In particular, interesting opportunities arise for sawn wood, recommending the development of glued elements of solid wood, such as glued laminated wood and panels. 14
Source: Idem. 15
Source: Idem. [email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry 6. Regulatory framework and tax benefits 6.1. General Investment Promotion Scheme (Law 16,906) Foreign investors enjoy the same benefits as national investors and do not require prior authorization to operate in the country. Law 16,906 of January 7th, 1998 declares the promotion and protection of domestic and foreign investment of national interest. Decree 002/012 updated the regulations of said law. By virtue of said decree and for any investment projects submitted and promoted by the Executive Branch, 20% and 100% of the invested amount may be computed as part of the Corporate Income Tax (IRAE), depending on the type of project. IRAE regular rate is 25%. Personal property included in fixed assets and civil works are exempt from the Net Wealth Tax, and the Value Added Tax is recovered from the purchase of materials for civil works. Moreover, the import of personal property included in fixed assets which have been declared not competitive with national industry is exempt from import taxes or duties, as declared by said law. 6.2. Investments in the forestry industry16 Investment projects of the forestry sector submitted to the Commission for the enforcement of the Investment Law (COMAP) showed an irregular trend between 2005‐2013, with peaks associated with the large amounts invested by multinational industries which have been operating in the sector for some years. Investments in the sector are linked to both 16
Source: Wood pulp – wood forestry complex (2008). Value Chains (I), Productive Board. Forestry Agenda 2011. Rosario Pou & Asociados. Websites: http://www.upmuruguay.com.uy; http://www.weyerhaeuser.com; http://www.montesdelplata.com.uy; http://www.cofusa.com.uy; http://www.af.com.uy; http://www.urupanel.com; http://www.geosylva.com; http://www.harvest.com.uy; http://www.agrifox.com.uy. 18
the logging and the industrial stage (the production of boards, solid wood products, pulp, power generation, etc.). Among the most notable projects that accounted for the years of greater promotion, the expansion of the productive capacity of Los Piques S.A. (now Weyerhauser Products S.A.) in 2007 and the construction works of the Punta Pereira Free Zone by Montes del Plata in 2008 and 2011, stand out. In 2013, the URUPANEL investment representing about 65% of the total amount of promoted projects was underscored. Chart No.11: Forest Sector submitted projects – COMAP17 – Millions of USD 250
239
200
173
150
107
100
48
50
5
3
2005
2006
0
2007
2008
17
14
2009
2010
13
2011
6.3. Government’s incentives to exports Reimbursement of purchasing supplies VAT 2012
2013
general paid when VAT paid in purchases is generally recovered, by non‐exporting companies, when discounting VAT invoiced in sales within the domestic market, paying the State just the difference thereof. Since in exports (of goods and services18) said tax is not invoiced, the reimbursement of VAT included in the purchase of materials is authorized directly upon the company’s request. The Tax Administration Office (DGI) issues credit certificates which may be used in the payment of other taxes. 17
Commission for the enforcement of the Investment Law (COMAP, for its Spanish acronym). Source: Prepared by Uruguay XXI based on data from COMAP. 18
Decree No 220/998 lists the transactions covered by the concept of services exports. [email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry 6.4. Free zone system19 There are twelve Free Zones in Uruguay. To create one of these Zones it is necessary to obtain authorization from the competent authority of the Executive Branch (General Bureau of Free Zones of the Ministry of Economy and Finance). This special regime exempts from any current or future national tax, all activities that take place within the Free Zones. In the case of the forestry sector, two Free Zones were created for the benefit of the two pulp mills operating in the country, UPM and Montes del Plata. 6.5. Specific incentives for the forestry industry in Uruguay20 Plantation and other activities linked to forestry activities are regulated under law 15,939 of 1987 (“Forestry Law”), regulatory decrees and further amendments thereto. This law declares of national interest the protection, improvement, expansion, creation of forest resources, development of forest‐based industries and, in general, of the forest economy. This law establishes that natural and artificial forests in forestry priority areas declared as “protective” and “yielding”21 included in “quality wood projects” determined by the Ministry of Livestock, Agriculture and Fishing (MGAP), enjoy the following tax benefits:  Income arising from its exploitation shall not be taken into account for Corporate Income Tax (IRAE) purposes, which levies business income.  Value or size of forestry priority areas will not be considered for the determination of the taxable amount of Wealth Tax (IP).  Rural real estate tax (tax on land ownership) exemption. To be eligible for the abovementioned tax benefits, the Forestry Bureau (DGF) of the MGAP must approve the management and organization plan for the exploitation and regeneration of forests. Any amendment to the management and organization plan must be previously approved by the DGF. It is worth highlighting that short cycle plantations (less than fifteen years) with no pruning and thinning are not entitled tax exemptions22. 6.6. Other rules of relevance to forestry To access a summary of the relevant legislation for the forestry sector, please visit: ‐DGF: http://www.mgap.gub.uy/portal/hgxpp001.
aspx?7,20,417,O,S,0, ‐PROBIO Program: http://www.probio.gub.uy/cms/index.php/n
ormativa/sector‐forestal. Other regulations: ‐ Decree 372/99: Regulations on working conditions in the forestry sector. Law of Environmental Impact Assessment (16,466) and decrees (435/94 and 349/05). ‐ Decree 848/988: Fire prevention. Finally, Uruguay XXI also has a report on the labor market in the forestry sector, especially prepared by the Cuesta Duarte Institute, which provides information on the characteristics of employment in the sector and on the labor law thereof23. 19
For further information on the Free Zones regime, please refer to our Free Zones Report: http://www.uruguayxxi.gub.uy/wp‐
content/uploads/2011/12/Zonas‐Francas‐Diciembre‐
2013‐UruguayXXI1.pdf. 20 Law No. 15,939 available at http://www.parlamento.gub.uy/leyes/AccesoTextoLey
.asp?Ley=15939&Anchor. 21 See Section 3.1. 19
22
Source: Pike Forestry Consultants. 23
To access the report contact Uruguay XXI. [email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry 7. The future forestry sector 7.1. Forestry product certification Forestry certification is an independent evaluation of the activities of an organization in accordance with previously established external standards. Forestry certification generally acts as an incentive to improve forestry management practices. There are international certifying organizations that assess compliance with the requirements. In a global context where there are still significant deforestation trends in several countries, certification allows to distinguish those products that come from forests managed in a framework of sustainability and law compliance. In turn, certification has been gaining increasing importance as a marketing tool, to differentiate products in the presence of consumers who are becoming increasingly sensitized to the sustainability of productive undertakings. Uruguay's forestry policy for the development of the forestry sector, together with the vast experience of its main businesspeople has ensured sustainable forest management. In fact, virtually all Uruguayan forestry production and its industries have been certified by the two major global certification bodies: FSC (Forest Stewardship Council) and PEFC (Program for the Endorsement of Forest Certification). 7.2. Integration with other sectors A second line of action that the country is taking through the Directorate General of Rural Development (DGDR) is the incentive for the integration of forestry with agriculture and farming. This enables a diverse range of products and staggered income: livestock, seed, harvesting and forage reserves in the short term, and quality wood in the medium and long term. In turn, it creates economic and environmental benefits by providing shelter and shade to livestock. In this context, the government provides a subsidy of 50% of the cost for those small 20
and medium producers24 that include forests in non‐forest agricultural production systems, with a cap of US$ 8,000. 7.3. Carbon certificates Given the international importance acquired by initiatives to reduce the emission of greenhouse gases (GHG), companies and other entities are increasingly calling for strategies and actions to offset the impact of their activities. In this respect, carbon certificates have assumed greater importance and have become an important component of the forestry business. In this context, Uruguay has not been left behind, as there are at least five forestry projects that are issuing carbon certificates. In addition to the participation in forestry projects, service providing companies are setting up to render services in measurement, comparison and advise thereon25. 7.4. Wood construction A window of opportunities for Uruguay may be related to further development of wood construction. While at present building houses of wood for domestic demand will not solve the supply of forest resources, the development of the wood construction industry for civil works, particularly industrial, commercial and sports buildings, appears as an interesting alternative26. In this sense, the need to incorporate regulations for manufacturing, quality control and calculation of structural wood to promote local and international sales of products with higher added value poses a challenge for the sector. In particular, and since the species cultivated in Uruguay are of low natural durability, the introduction and 24
Producers who do not exceed 1,250 ha Coneat 100 and with less than 8% of the surface area with artificial forests. 25
In particular, Carbosur (www.carbosur.com.uy) has been active with the major companies in the forestry sector. 26
Source: Ministry of Livestock, Agriculture and Fisheries (MGAP, for its Spanish acronym) 2012, Wood Products Export Promotion Program First Report ‐ Forest and Wood Sector Council ‐ DNI. [email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry development of new technologies that will increase the durability of wood (drying, protection design, deep impregnation and modification) is recommended. 8.2. Forest and Council27 Wood Sector The forestry‐wood sector has been considered by the Ministry of Industry, Energy and Mining (MIEM) a priority sector within the framework of the country's industrial strategy. During 2008 and 2009, the MIEM Production Office worked on the characterization this chain and on the identification of policy measures to lift the restrictions on the growth thereof. In the second half of 2010 the Forestry Wood Sector Council (CSFM, for its Spanish acronym) was launched as a tool for coordinating and generating input for sector policy. This sector council is composed of employers, workers and technicians of the public and private sector. 8. Institutions and stakeholder in the sector 8.1. Forestry Bureau (DGF) ‐ MGAP The DGF is the main reference body on forest policy, as established by Law 15,939. Among other duties, is responsible for approving plans for the use and exploitation of forest resources. It is worth noting that the DGF of the MGAP is in a process of modernization and updating, with the objective of consolidating its role as an important support in the development process of the forestry sector. Website: http://www.mgap.gub.uy/portal/hgxpp001.
aspx?7,20,410,O,S,0,MNU;;MNU Stakeholders who integrate the Forest Council
Companies
Forestry Producers Society (SPF) www.spf.com.uy Chamber of Wood Processing Industries (CIPROMA)
www.ciu.com.uy/ Wood and Related Areas Industrial Association (ADIMAU)
www.adimau.com.uy Paysandú Saw millers' Association – Madexur
Tacuarembó‐ Rivera Forestry Conglomerate
www.madexur.com http://pacc.opp.gub.uy/inicio/conglomerados
Workers
Wood Industry Workers Union (SOIMA) www.pitcnt.org.uy/front/base.vm#/mesa Research/educational and technological Centers
National Institute for Agricultural Research (INIA)
www.inia.org.uy Technology Laboratory of Uruguay (LATU)
http://latu21.latu.org.uy/es/ Economic Commission for Latin America and the Caribbean (ECLAC)
www.cepal.org www.fagro.edu.uy School of Agronomy – University of the Republic (FAGRO – UDELAR)
Polytechnic College of Uruguay (UTU) www.utu.edu.uy State
Rivera Development Agency Tacuarembó Departmental Council www.agenciadesarrollorivera.com.uy www.juntatacuarembo.com.uy 27
Source: Uruguay XXI based on the Industrial Plan I document of the Production Office – MIEM, DNI. 21
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry The main objectives28 set by the council are organized based on two strategic pillars: 1. Sustainable productive development: ‐ Encourage investments that promote the production of wood by‐products and deepen productive diversification. ‐ Improving the business climate while keeping the framework of sustainable development. ‐ Develop quality service providers (transport and logistics, communications, energy, etc.). 2. Human Development: ‐ Boost numbers of qualified staff employed in jobs. Website: http://gp.gub.uy/ PACC Conglomerate Among the activities carried out by the Sector Council, the conformation of the conglomerate Forest Wood PACC was promoted in Tacuarembó and Rivera. The aim of this group is to meet, coordinate, plan and execute public and private strategic actions. It assure that all Forest Wood Sector companies are represented (vertical companies, industrial companies and forestry producers), as well as other institutions related to the sector. 8.3. Other Institutions  Wood and Related Areas Industrial Association (Asociación de Industriales de la Madera y Afines): www.adimau.com.uy  Forestry Producers of the East (Productores Forestales del Este ‐ PROFODES): www.profodes.com  Wood and Furniture Competitiveness Forum in Uruguay and MERCOSUR, which operates in the orbit of the relevant departments of industry.  Program to support competitiveness and export promotion for small and medium‐
sized Enterprises (PACPYMES). It has a promotion program for second and third degree transformation of wood (Promadera: www.promadera.com.uy)  Uruguayan Chamber of Industry (CIU) ‐ www.ciu.com.uy  National Board of Energy (DNE) – MIEM ‐ www.dne.gub.uy  National System of Protected Areas ‐ MVOTMA (SNAP) ‐ www.snap.gub.uy For more information: http://pacc.opp.gub.uy/inicio/conglomerado
s/conglomerado_Forestal‐Madera/ 28
In its vision it aims to: be the industry leader in incorporating innovative technologies and processes, maximizing the use of resources through diversified production, contributing to economic growth and decentralized social development whilst maintaining environmental sustainability”. 22
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry Annex 1 ‐ Trade and investment protection agreements 1. General trade agreements Uruguay has been part of the World Trade Organization (WTO) since its creation in 1995 and is part of the Latin American Integration Association (ALADI, 1980) along with nine other South American countries, Cuba and Mexico. In the framework of ALADI, the Southern Common Market (MERCOSUR) was formed in 1991 with Argentina, Brazil and Paraguay. MERCOSUR became a customs union in 1995 with the free movement of goods, the elimination of customs duties and non‐tariff barriers between countries and a Common External Tariff for countries outside MERCOSUR. Since August 2012 Venezuela is a full member of MERCOSUR. Moreover, in the framework of ALADI, MERCOSUR has signed trade agreements with other South American countries: Chile (1996), Bolivia (1996), Colombia, Ecuador and Venezuela (2004), India (2004) and Peru (2005), Israel (2007), all of which form respective Free Trade Areas with tariff reduction schedules that should be completed no later than 2014/2019, according to the country. Uruguay also signed a bilateral free trade agreement with Mexico (2003) which has enabled the free movement of goods and services between both countries since June 2004, with certain exceptions that end in 2014. 2. Investment protection agreements Uruguay has signed investment protection and promotion agreements with 30 countries, including Spain, the U.S., Finland, Germany, Israel, Mexico, France and the U.K. All agreements signed by Uruguay guarantee foreign investors certain principles such as the clause of the most favored nation, provisions of fair and equal treatment, expropriation related clauses and no restrictions on transfers clauses. Likewise, all agreements signed by Uruguay on investments contain provisions related to 23
the settlement of disputes between an investor and the State where the investment is made and between States, including the possibility of resorting to an international court by an investor who has a claim against the State. It also has numerous double taxation agreements with countries in the region and the world. For further information regarding trade and investment protection agreements signed by Uruguay, you can access the following report: http://www.uruguayxxi.gub.uy/wp‐
content/uploads/2011/12/Acuerdos‐
Uruguay.pdf Annex 2 ‐ Types of forests The Forestry Law (Law 15,939) sets forth different types of forests: Protective forests: its main purpose is the protection of the soil, water and other renewable natural resources. The destruction of these forests is prohibited, but not their exploitation. This means that pruning, thinning, replacing old with new specimens without jeopardizing the permanence of the forest is permitted. Yielding forests: its main purpose is the economic exploitation of the specimens. They may be composed of any species suitable for the production of ligneous or non‐ligneous material29. Indigenous forests30: natural forests with native species. Any cutting or any other activity that threatens the survival thereof is prohibited31. General forests: those forests not included in the above‐mentioned categories. 29
Decree 191/06. Even though Indigenous forest fall in the category of protective forest, law 15,939 and Decrees 22/93, 24/93 and 330/93 establish specific regulations for the protection of indigenous forests. 31
The National Forest Authority (DGF, for its Spanish acronym) may make an exception based on a technical report. 30
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI Forest Industry Uruguay at a glance (2013)32 Official name Geographic location Capital city Area Population (2013) Population growth rate (2011) GDP per capita (2013) Currency Literacy rate Life expectancy at birth Government type Political division Time zone Official language: Oriental Republic of Uruguay
South America, bordering Argentina and Brazil Montevideo
176,215 km2. 95% of the territory is productive soil, suitable for agriculture and cattle breeding. 3.39 million
0.40% (annually)
US$ 16,421
Uruguayan peso ($)
98% 76 years
Democratic republic with presidential system 19 departments
GMT ‐ 03:00
Spanish
Main economic indicators 2008‐2013 Indicators 2008
2009
2010
2011 2012 2013
GDP (Var % per year) 7.2%
2.4%
8.4%
7.3% 3.7% 4.4%
GDP (Millions of U$S) 30,367
30,461
38,882
47,237 50,004 55,708
Population (Millions of people) 3.33
3.34
3.36
3.37 3.38 3.39
GDP per Capita (US$) 9,108
9,107
11,584
14,017 14,792 16,421
Unemployment rate – Annual Average (% EAP)
8.0%
7.7%
7.2%
6.3% 6.5% 6.5%
Exchange rate (Pesos per US$, Annual Average)
20.9
22.6
20.1
19.3 20.3 20.5
‐10.7%
7.7%
‐11.1%
‐3.7% 5.2% 0.8%
Exchange rate (Annual Average Variation)
Consumer Prices (Var % annually accumulated)
9.2%
5.9%
6.9%
8.6% 7.5% 8.5%
Exports of goods and services (Millions of US$)
9,372
8,711
10,719
12,868 13,398 13,603
Imports of goods and services (Millions of US$)
10,333
8,191
10,089
12,779 14,685 14,964
Commercial Surplus / Deficit (Millions of US$)
‐961
521
630
89 ‐1,287 ‐1,361
Commercial Surplus / Deficit (% of GDP)
‐3.2%
1.7%
1.6%
0.2% ‐2.6% ‐2.4%
Global Fiscal Surplus (% of GDP) ‐1.6%
‐1.7%
‐1.1%
‐0.9% ‐2.8% ‐2.4%
Gross capital formation (% of GDP) 23.2%
20.1%
18.9%
21.1% 23.6% 23.6%
Gross Debt (% of GDP) 58.3%
75.4%
61.4%
57.2% 62.3% 59.5%
Foreign Direct Investment (Millions of US$)
2,106
1,529
2,289
2,504 2,687 2,796
Foreign Direct Investment (% of GDP)
6.9%
5.0%
5.9%
5.3% 5.4% 5.0%
32
Sources: GDP data were taken from the IMF, foreign trade data from FDI, foreign exchange rates, international reserves and foreign debt come from the BCU, the population growth rate, literacy, unemployment and inflation come from the Statistics National Bureau. 24
[email protected] | www.uruguayxxi.gub.uy | @UruguayXXI