Uruguay: Finnish pulp mills granted use of Fray Bentos free-trade zone until 2053

Uruguay: Finnish pulp mills granted use of Fray Bentos free-trade zone until 2053

The Uruguayan Government this week extended the term of exploitation of the Fray Bentos duty-free zone to the company UPM until 2053, it was reported in Montevideo.

The extension allows the Finnish pulp mill’s two plants to operate under the same regime, it was explained.

The decree signed by Beatriz Argimón as acting president also states that the technical services of the National Directorate of Free Zones greenlighted the allowance because it complied with the formal requirements, the obligations, generated employment, increased investments, and created economic linkages. It also mentions that UPM Fray Bentos is promoting a plan of additional investments this year for the free zone of private exploitation. For these reasons, the government decided to grant the extension requested by UPM until April 14, 2053.

As per the agreements in force, the company could request the extension before the first expiration (2034). The exploitation of this exclusive zone for the Finnish company had been granted in 2004 for a term of 30 years; however, before that deadline was reached.

The decree also states that UPM’s request to extend the term goes hand in hand with its other free zone. In 2019, one of UPM’s branches was authorized to operate a free zone in Durazno, near Pueblo Centenario and the city of Paso de los Toros, which would be in force for 30 years from the completion of the works of the pulp mill, which ended this year.

Therefore, so that both free trade zones “are guaranteed to be in force until the same date”, which would be until 2053, UPM requested the early extension of the Fray Bentos free trade zone.