ever, fruit and vegetable growing is mostly family-run, with no rationalization of productive inputs used.Even though in general Uruguayan products will not benefit from the above mentioned tariff reductions, the Agreement with Chile will be advantageous for certain products such as rice, dairy products, beef and the apparel industry.In the case of rice, Chile approved a quota of 14,000 tons for Uruguay until the year 2000 (presently the quota is 4,000 tons for shipments from September through December only).In the case of dairy products, Uruguay can now access the Chilean market with an advantageous tax of 40% and progressive reductions of up to a 100% by the year 2000. Up to the signing of the Agreement, Chile had refused to negotiate with Uruguay the introduction of dairy products.Regarding beef, until October 1, 1996 Uruguay had a quota of 750 tons per year, with a tax of 50%. Thanks to the agreement, Uruguay will be able to export 3,000 tons of beef per year (50% of frozen and 50% of fresh meat).The textile sector was granted an additional quota for some articles with a 100% tax exepmtion (usual tax in this sector is 40%). Moreover, Uruguayan leather garments were completely liberalized in the Chilean market.Additionally, the MERCOSUR-Chile agreement opens new opportunities for business and investment in Uruguay....
