Question

Economic, Social and Political Differences between Argentina, Uruguay and Parguay

Answer 1

Sol:

• Companies are seeking to expand Latin America should consider commercial opportunities generateby trade agreement between Argentina, uruguay and paraguay. Latin American countries promote the regional relationship to support each other growth and trade agreement offer new opportunity for business owners to access important benefits and new markets in other countries.
• One of the biggest economies in Latin America, the Argentina focus for foreign expansion of companies. Expanding multinational company should pay attention to relationship, Argentina maintains with other countries, especially these countries work to decrease bureaucratic barriers to start business such as the introduction of new legal entity structure in Uruguay.

Argentina, Uruguay and Paraguay trade relations

• Advantage of trade agreements between Argentina, Uruguay and Paraguay is enjoy the benefits of operating in stable trading environment. When expanding to Latin America these 3 countries should be on your radar. However, expanding to unknown country or select the right country according to your needs requires understanding and compliance.

Double taxation agreements

• Uruguay maintain double taxation agreement with Argentina and paraguay. The agreements prevent companies from receive the double taxation on the income obtained within the countries. Some of these agreements also providethe exchange of tax information.
• Uruguay is also has double taxation agreement with countries such as Spain, Sweden, Portugal, Mexico, India and etc. For foreign multinationals these countries are present attractive platforms to incorporate a company in Latin America.

Scientific agreements

• In May 2018 Argentina and Uruguay signed scientific cooperation treaty in Antarctica with the purpose of promoting scientific exchanges between both countries that have bases on the white continent via scientific cooperation and exchanges, scientific research activities and also technological development.

Tourism

• In recent years, Uruguayi develop the quality hotel infrastructure and tourist services to offering attractive natural conditions. The characteristics have contributed to Uruguay being Latin American country that receives the more tourist in relation to its population.One of the major important commercial relationship between Uruguay and Argentina is tourism. For Uruguay Argentine tourism is key. It represents 56% of the external tourism they receive each year 70% during the summer.
• The entry into the force of Tourism Law in 2015 generates tools to develop the productivity of sector, providing opportunities for foreign tourism business. Also Argentine holiday makers an important target market for tourism in Uruguay. In recent years the country managed to position itself as an important tourist destination to other country, receiving more visitors from countries such as Brazil, Paraguay and the US.

Agricultural machinery

Paraguay is consider by Argentina as one of the important destination for the Argentine agricultural machinery.For abroad business owners interested in expanding to Latin America the commercial relationship between Argentina and Paraguay especially in agricultural sector to offer a significant advantage to start business, that is,

• The proximity between Argentina and Paraguay decrease cost of offering sales services
• Have similar agricultural production systems
• Paraguay has area planted with traditional crops from Argentina (wheat, corn)
• Quality requirements are very flexible than other countries.