8. Promoting and enabling responsible business conduct as a strategic choice
Responsible Business Conduct (RBC) is a key element of a healthy business environment – one that attracts quality investment, minimises risks for businesses, ensures stakeholder rights are respected and ultimately leads to broader value creation. This chapter reviews Uruguay’s policies to promote RBC and their alignment with the OECD Guidelines for Multinational Enterprises. It also summarises Uruguay’s plans for establishing a National Contact Point (NCP), a key mechanism allowing the government to promote and implement the Guidelines and providing a mediation and conciliation platform for resolving practical issues that may arise.
Governments that adhere to the Declaration aim to encourage the positive contributions that businesses can make on economic and social progress. They commit to promote Responsible Business Conduct (RBC) principles and standards, as set out by the OECD Guidelines for Multinational Enterprises (the Guidelines). The Guidelines are the most comprehensive set of government-backed recommendations on RBC currently in existence (See Box 8.1). Observance of the Guidelines is supported by their unique implementation mechanism – the National Contact Points (NCPs).
Addressed by Adherents to the OECD Declaration on International Investment and Multinational Enterprises to businesses operating in or from their jurisdictions, the Guidelines set out principles and standards in all major areas related to RBC, including information disclosure, human rights, employment and industrial relations, environment, bribery and corruption, consumer interests, science and technology, competition, and taxation.
Their purpose is to ensure that business operations are in harmony with government policies, to strengthen the basis of mutual confidence between businesses and the societies in which they operate, to improve foreign investment climate, and to enhance the contribution of the private sector to sustainable development. The Guidelines, together with the UN Guiding Principles and the fundamental ILO Conventions, are one of the major international instruments on RBC.
The Guidelines do not aim to introduce differences of treatment between multinational and domestic enterprises - they reflect good practice for all. Adherents wish to encourage the widest possible observance of the Guidelines to the fullest extent possible, including among small- and medium-sized enterprises even while acknowledging that these businesses may not have the same capacities as larger enterprises.
The Guidelines are supported by a unique implementation mechanism of National Contact Points (NCPs), agencies established by adhering government to promote and implement the Guidelines. The NCPs assist enterprises and their stakeholders to take appropriate measures to further the implementation of the Guidelines. They also provide a mediation and conciliation platform for resolving practical issues that may arise.
RBC is a key element of a healthy business environment – one that attracts quality investment, minimises risks for businesses, ensures stakeholder rights are respected and ultimately leads to broader value creation. RBC principles and standards set out an expectation that businesses should avoid and address adverse impacts of business activities, while contributing to sustainable development in countries where they operate. RBC emphasises the integration and consideration of environmental and social issues into core business operations. A key element of RBC is risk-based due diligence, a process through which businesses identify, prevent and mitigate actual and potential adverse impacts, and account for how these impacts are addressed. RBC expectations extend to business activities throughout the entire supply chain and linked to business operations, products or services by a business relationship.
While it is the role of businesses to behave responsibly, Governments have a primary duty to protect the public interest and an important role in promoting and enabling RBC. The RBC chapter in the OECD Policy Framework for Investment is a useful reference for designing and implementing a strong RBC policy framework. This entails establishing and enforcing an adequate legal framework that protects the public interest and underpins RBC, while monitoring business performance and compliance with the law. Setting and communicating clear expectations on RBC and providing guidance on what those expectations mean is important, while encouraging and engaging industry and stakeholders in collective initiatives and providing recognition and incentives to businesses that exemplify good practice is encouraged. It also entails ensuring that RBC principles and standards are observed in the context of the government’s role as an economic actor.
This chapter summarises Uruguay’s plans for establishing an NCP, followed by a review of Uruguay’s general policies for enabling RBC; policies in specific areas covered by the Guidelines; RBC in the context of the role of the state as an economic actor; and an outlook and policy recommendations.
According to the Decision of the OECD Council on the Guidelines, adopted in 2000 and amended in 2011, all Adherents to the Declaration are required to set up an NCP. NCPs have a mandate to further the effectiveness of the Guidelines by undertaking promotional activities, handling inquiries, and contributing to the resolution of issues that arise if the Guidelines are not observed by businesses in specific instances. NCPs provide one of the few government-based, non-judicial grievance mechanisms with such an effective and broad application.
Adherents are required to make human and financial resources available to their NCPs so they can effectively fulfil their responsibilities, taking into account internal budget priorities and practices. In accordance with the Procedural Guidance of the Decision of the Council on the Guidelines, NCPs are expected to operate in accordance with the “core criteria” of visibility, accessibility, transparency and accountability.
In June 2019, the OECD Secretariat, together with the NCPs from Canada and Chile and the former WPRBC Chair (and current Dutch Ambassador to Uruguay), held a workshop with Uruguayan stakeholders to discuss RBC policies and NCP functioning and learn from peers. In addition, the Uruguayan authorities have engaged with OECD institutional stakeholders (BIAC, TUAC, and OECD Watch) to request advice on the draft plans for the NCP.
Based on this experience and engagement, Uruguayan authorities have set out the draft plan for the NCP as follows.
Institutional arrangements
NCP Structure
The Uruguayan authorities plan to establish an NCP by Executive Decree, to be promulgated in the last quarter of 2020. The Decree will include details on the composition of the NCP and the process for appointing NCP members. The NCP will report annually to the Parliament.
Uruguay envisions an NCP consisting of an inter-ministerial commission and an Executive Secretariat, assisted by a multi-stakeholder advisory body. The inter-ministerial commission will oversee the implementation of the NCP work plan, be in charge of reporting, external representation and co-operation, and make decisions on the resolution of specific instances. The Executive Secretariat will deal with administrative matters, organise promotional activities and be the main point of contact for external stakeholders, including in the context of submission of specific instances. The Executive Secretariat’s mission will also be of a technical nature, as it will notably assist the NCP in the handling of specific instances. Technical expertise in the field of RBC and human rights will be one of the requirements in hiring the Executive Secretariat staff. The multi-stakeholder advisory body will provide recommendations regarding promotional activities and the management of specific instances. The stakeholder advisory body will be informed about the submission and conclusion of specific instances (this information will also be made publicly available) and may provide general advice on case-handling. The advisory body will not be involved in the handling of individual cases.
The inter-ministerial commission will be composed of representatives from the Ministry of Economy and Finance (MEF); the Ministry of Labour and Social Security (MTSS); the Ministry of Foreign Affairs (MRREE); the Ministry of Housing, Territorial Planning and Environment (MVOTMA); and the Office of Planning and Budget (OPP). These ministries and agencies were selected for their expertise on topics relevant to RBC such as environment, employment, labour relations, consumer rights, competition, and relationship with the private sector within the framework of implementation of the 2030 Agenda for Sustainable Development. Human rights expertise in the advisory body will be provided by the National Secretariat of Human Rights and the National Human Rights Institution. The inter-ministerial commission will count five members (one per government entity) and an alternate from the same ministry or agency, for each member. The selection process for each representative will be at the discretion of its ministry. The inter-ministerial committee will make final decisions on specific instances. Should additional expertise be needed for the handling of a particular case, the NCP will consider setting up ad hoc technical committees comprising representatives of other relevant ministries, giving priority to ministry representatives active on the advisory body, or experts hired specifically for the case at hand. The inter-ministerial commission will be headed by the representative from the MEF Commercial Policy Advisorate, who will act as the head of the NCP. The choice of locating the head of the NCP and the Executive Secretariat in MEF was dictated by the transversal nature of the Ministry, and by the fact that it has the power to convene the various actors involved. The head of the NCP, like the other members of the inter-ministerial committee, will have one vote on NCP decisions. The head of the NCP will be the manager of the Executive Secretariat’s staff, and will convene the meetings of the inter-ministerial committee and advisory board. The inter-ministerial commission will be convened every two months, or upon request by one of its members.
An Executive Secretariat, composed of a part-time (20 hours per week) Executive Secretary and a full-time, dedicated Assistant, will be located in the General Directorate of Commerce of the MEF. Depending on the workload of the NCP, it may be possible to increase the staff of the Executive Secretariat at a later stage. Both the Executive Secretary and the Assistant will be selected through a competitive recruitment process led by the inter-ministerial commission.
The advisory body will be composed of a broad range of stakeholders and chaired by the head of the NCP. Organisations participating in the advisory body will be grouped by category – namely, civil society, labour unions, business organisations, academia and other relevant public sector institutions. Although there may be several organisations per category, each category of organisation will count as one vote. It would then be for all organisations within each category to coordinate on voting decisions.
Upon authorisation of the inter-ministerial committee, the Executive Secretariat will invite stakeholder organisations to join the advisory board. In the initial structure, it is envisioned that the Executive Secretariat will request participation from the following bodies: Ministry of Livestock, Agriculture and Fisheries; Ministry of Industry, Energy and Mining; Uruguay XXI; National Secretariat of Human Rights; National Secretariat of Environment, Water and Climate Change; National Human Rights Institution and Ombudsman's Office; Public Board of Transparency and Ethics (JUTEP); the Central Bank of Uruguay’s Information and Financial Analysis Unit (Asset Laundering Prevention); Representative of Congress of Governors; academia representative; Representative of the PIT-CNT (single trade union centre of Uruguay); Representative of business organisations (DERES / ACDE); Civil society representative with competency in the subject.
After the initial structure is established, the inter-ministerial committee or the Executive Secretariat will be able to propose that additional organisations join the advisory body as relevant. In addition, an online mechanism will be created to allow organisations that are not represented in the initial structure to request participation in the advisory body. These processes are meant to ensure the widest possible participation of stakeholders. All new organisations will have to be validated by the NCP based on criteria of competence in the field of RBC and the Guidelines. The advisory board may be consulted if necessary.
Uruguayan authorities have reported that local stakeholders have been consulted throughout the process of defining the structure of the NCP. A consultation workshop bringing together a wide range of stakeholders including NGOs, trade unions and government agencies was held in June 2019. Following this workshop, the MEF sent a questionnaire to 24 stakeholder organisations to gather views on the structure of the NCP and its advisory body. Six answers received from one business organisation, and four government agencies and one individual RBC expert were analysed by the MEF and used as input to develop a draft proposal for the structure of the NCP.
Stakeholder engagement
Throughout the planned process of establishing the NCP, efforts will be made to directly involve actors from government agencies, notably in the drafting of the Decree that will formally establish the NCP. Other stakeholders will be consulted through a consultation workshop prior to the approval of the Decree. Uruguay indicated that it intends to implement the following timeline for the process of preparing and approving the decree:
September 2020: first draft of the decree elaborated by MEF and submitted to the future members of the inter-ministerial commission.
Early October 2020: consultation workshop held with prospective members of the advisory body
Late October 2020: revision of the draft based on comments received.
Once the NCP is formally established, the Uruguayan authorities plan to organise a workshop gathering members of the advisory body and other interested stakeholders, to consult on the rules of procedures and the draft work plan of the NCP. The final version of the rules of procedure, integrating inputs gathered through the workshop, will be disseminated through relevant channels including website and social media. Going forward, the broad membership base of the advisory body is expected to facilitate ongoing engagement with diverse stakeholder groups.
A dedicated webpage for the NCP will be created in the first semester of 2021. The webpage will include information on the Guidelines and the due diligence guidance instruments, rules of procedure and contact information (phone and email) available in both Spanish and English. Links to the NCP’s website will be available on the website of each Ministry represented within the NCP. The website will also serve as a platform to publish recommendations issued by the advisory body, as well as information related to specific instances. In particular, both initial assessments and final statements will be made public within five working days of their respective completion dates. Information on past and future promotional events will also be available on the website.
Resources
The NCP will have a dedicated budget, to be defined and included in the next Budget Law Project for the period 2020-2024. Until the NCP budget is approved, resources will be temporarily allocated from the MEF to cover at least the hiring of one full-time and one part-time member, the creation of a webpage within the MEF website, attending two NCP meetings at the OECD in Paris, and organising promotional activities. Efforts will be made to allocate resources to mediation training for the members of the inter-ministerial commission and the Executive Secretary.
Handling of specific instances
The Executive Secretariat will be the main contact point for the submission of specific instances. Upon reception, specific instances will be transmitted to the inter-ministerial commission, which will handle cases and make decisions related to the resolution of specific instances. The inter-ministerial commission will aim to reach consensus but whenever a vote is necessary decisions will be made by simple majority.
The Executive Secretariat will inform the advisory body every time a specific instance is submitted. The Executive Secretariat will also inform the Advisory Body every time a specific instance is concluded, and submit the main conclusions before publication on the website.
As indicated above, the NCP will have the possibility to form ad hoc technical committees whenever specific expertise is required for the resolution of a specific instance. These ad hoc committees may be composed of government representatives, giving priority to government representatives who are members of the advisory body and have specific knowledge relevant to the specific instance concerned, or of experts hired specifically for the case at hand. Whenever a decision is made to set up an ad hoc technical committee, the NCP will notify the advisory body, which may provide advice on the composition of the committee.
For each specific instance handled by the NCP, the Executive Secretariat will prepare a report. The report will include a description of the claimant’s submission, procedure carried out by the NCP, a technical assessment, and the NCP's conclusions. The report shall be endorsed by all NCP members, or a mention should be made in the report in the event that unanimous endorsement cannot be achieved. The report will then be published on the NCP website within five working days (see also section on Stakeholder Engagement).
Promotional activities and next steps
The Uruguayan government has elaborated a draft plan for various activities the first year of functioning of the NCP. The first year will mainly focus on the administrative aspects of the establishment of the NCP and the development of rules of procedure through a consultative process. The members of the Executive Secretariat will be appointed by the MEF immediately after the NCP is formally established and not later than the first quarter of 2021, either through an open competitive process or through a direct appointment based on technical competence. Once all NCP members are selected or appointed, the NCP will draft the rules of procedure as well as terms of reference for the advisory body. The NCP will convene the first meeting with the advisory body to present the draft rules of procedures and terms of reference and a work plan in the second quarter of 2021. Budget allocations will be made in the second half of 2020.
The NCP will set up a website in the first half of 2021, on which the Guidelines will be made available in English and Spanish. A public launch event is planned also in the first semester of 2021 to introduce the NCP and raise awareness on RBC. Additionally, a workshop on RBC and the Guidelines (including the Procedural Guidance) will be held. While this event will be addressed primarily at the member organisations of the Advisory Body, it will be open to the participation of any institution interested in RBC. The Executive Secretariat will organise such workshops at least once a year and will publicise them widely.
Uruguay indicated that the Executive Decree would state that the NCP will only start handling specific instances after its rules of procedure have been approved so as to guarantee predictability for the parties. This is planned for the first semester of 2021. The status of any specific instance received before that date is unclear. Uruguay could consider prioritising the adoption of its Rules of Procedures (RoP), so as to be able to receive cases as quickly as possible after its creation, or accept to receive cases immediately and handle them based on draft versions of the RoP, clearly explaining the situation to the parties.
This section addresses Uruguay’s commitment to implement the Guidelines and the OECD Council Recommendations related to the Investment Declaration which concern RBC.1
There exists a growing interest in RBC in Uruguay among businesses, governments and other stakeholders.2 The most-commonly used term “social responsibility” seems to align broadly with the concept of RBC as outlined in the Guidelines covering the areas of environment, labour, human rights, anti-corruption and transparency. Multinational enterprises operating in Uruguay with strong RBC policies have traditionally been the main driving force for RBC promotion in the country. The Government’s understanding of sustainability as a way to create value and enhanced competitiveness has been growing and has been reflected in recent policies. Maintaining the increasing interest in RBC, as well as raising understanding on supply chain due diligence, also among domestic companies and SMEs will be key.
Uruguay has a solid legal framework and strong institutions underpinning RBC. It has put in place policies and regulations in various areas covered by the Guidelines, and trust in the government is high.3 The small size of the country and government have facilitated collaboration between different ministries and government agencies and have contributed to a relatively high degree of policy coherence.
A number of national strategies and policies have been launched to promote sustainability and cooperation with the business sector, particularly in the framework of the 2030 Agenda and the Sustainable Development Goals (SDGs).4 The “National Development Strategy for 2050” consists of a set of strategic guidelines to achieve the “Uruguay 2050 Vision”. Sustainable development is at the heart of this strategy.5 The private sector plays a strategic role within the 2050 Strategy particularly regarding the need to adopt and develop technologies for sustainability and face challenges such as climate change in an articulated manner with the Government and other relevant stakeholders.6
In 2016, the Government enacted the Law on the National Productive Transformation and Competitiveness System – known as "Uruguay Transforma" (Uruguay Transforms).7 The Law puts in place a Government technical support body (Ministerial Cabinet of productive transformation and competitiveness) responsible for proposing to the Executive Branch objectives, policies and strategies related to sustainable economic development, aimed at strengthening productivity and competitiveness, including related to science, technology and innovation.8 The Secretariat of this body works within the Office of Planning and Budget (OPP), which is also responsible for the implementation of the National Development Strategy for 2050.
Businesses have been active in promoting a common understanding and implementation of RBC standards in the country. Early initiatives include the creation, in 2010, of the Uruguayan chapter of the Global Compact with 24 national and multinational member companies9 and the mandate to incorporate social and environmental considerations into sustainable business strategies. However, in recent years Global Compact Uruguay has had a limited activity.10 The Corporate Social Responsibility Development Project (DERES), an initiative of the Catholic University of Uruguay, aims to promote Corporate Social Responsibility (CSR) through different actions and activities, such as the organisation of conferences and seminars and the development of toolkits, trainings and campaigns11. DERES was one of the founding organisations of the Local Network of the Global Compact, which has currently more than 100 partner companies.12 The Uruguayan Institute of Technical Standards (UNIT) has held several conferences and workshops based on the international standard ISO 26000 (UNIT-ISO 26000), with the aim of integrating Social Responsibility into organisations. 13 In addition, the UNIT has also launched and promoted a special printed edition of the standard, which includes a compendium with the most relevant related topics on CSR.14
Business associations are increasingly engaging in policy dialogue on RBC. The Chamber of Industry of Uruguay (CIU), established in 1898, is the largest representative industrial businesses entity.15 With the mission to seek business/industrial strengthening and to facilitate the insertion of its partners in international markets, the CIU includes, among its areas of work, “Environmental management” and “Social-Labour Relations”, as well as subgroups of work on “Sustainable Production and Energy Efficiency”. These are intended to actively collaborate with public authorities in the development of appropriate environmental regulations; support the sustainable development of the industrial sector; and tend to the development and continuous improvement of policies, programs and performance of companies in coherence with regional and international standards.16
Likewise, the National Chamber of Commerce and Services of Uruguay17 has a dedicated strategy to promote CSR in alliance with private and public actors such as the Inter-American Development Bank (IADB), the Presidency of the Republic (OPP and CIEDUR), DERES, and UNICEF, among others. Under its CSR strategy, the Chamber fosters alliances for the dissemination, communication and development of CSR policies by companies, particularly through awareness raising and training workshops with the collaboration of DERES (with whom they signed a cooperation agreement in 2007 for this purpose).18 Finally, the Confederation of Business Chambers (CCE), a cross-sectoral organisation constituted in 2016, facilitates coordination, representation, promotion and defence of the principles and common and general interests defined by its members.19 Although they do not have a specific CSR strategy, they include among their objectives contribution to the economic, cultural and technological development of the country and the elevation of social progress.20
The scope of RBC is broad and cross-cutting as business can have both positive and negative impacts on society. The review of Uruguay’s context and policy reference framework to implement the Guidelines also concerns the legal and regulatory framework in place in all areas covered by the Guidelines, as well as the commitment to the various international instruments cited in the Guidelines.
Non-financial disclosure
Clear and complete corporate information is important to a variety of users, from shareholders to workers, local communities, governments and society at large. Chapter III of the OECD Guidelines calls for timely and accurate disclosure on all material matters regarding the corporation, including the financial situation, performance, ownership and governance of the company. The Guidelines also encourage disclosure in areas where reporting standards are still evolving such as, for example, social, environmental and risk reporting.
The Fiscal Transparency Law (Law 19,484 of 2017) is the main instrument governing disclosure by companies in Uruguay. It was issued to comply with the international standards of International Tax Transparency, Prevention of Money Laundering and Financing of Terrorism.21 The Fiscal Transparency Law particularly focuses on the disclosure of financial information of all the resident and non-resident companies that operate in Uruguay, who must provide complete information – among other aspects – about their final beneficiaries and shareholders. Companies that do not comply with the provisions of the Law face significant financial penalties, which vary according to the seriousness of the infraction (for example, omitting the duty to inform; giving incomplete information or giving inaccurate information).
The Fiscal Transparency Law also extends the responsibility to provide information to all entities linked to the parent company, even if they are not under the supervision of the Central Bank of Uruguay. Following this regulation, the Central Bank of Uruguay (CBU) has released guidelines and forms for Uruguayan resident and non-resident companies to identify and report to the CBU their ultimate beneficiaries and their respective percentages of participation, as well as the chain of ownership. The CBU also set forth mechanisms for holders of nominative shares or quotas of Uruguayan entities to communicate their identification information and percentage of participation to the CBU.22
The Fiscal Transparency Law does not cover disclosure of non-financial information, nor are there any other provisions in Uruguay’s regulatory framework that require companies to report on social and environmental impacts of their operations or business relationships. However, there are examples of companies that have voluntarily incorporated non-financial reporting standards, including environmental and social governance reporting. Particularly, 39 companies in Uruguay have implemented the Global Reporting Initiative (GRI) standards, although many did not do so consistently (only for one or two years).23
Human rights
Enterprises can have an impact on virtually the entire spectrum of internationally recognised human rights. Chapter IV of the Guidelines draws on and is aligned with the UN Guiding Principles on Business and Human Rights. States have a primary duty to protect human rights. However, businesses are expected to respect human rights independently of the state ability and/or willingness to fulfil its human rights obligations. Failure either to enforce relevant domestic laws or to implement international human rights obligations, or the fact that the state may act contrary to those laws and obligations, do not diminish the obligation of businesses to respect human rights.
Uruguay is a Party to the key international instruments on internationally-recognised human rights, including the UN Universal Declaration of Human Rights, the UN International Covenant on Civil and Political Rights, and the UN International Covenant on Economic, Social and Cultural Rights.24
Human rights are protected by the Constitution. Articles 7, 72 and 332 expressly acknowledge their protection. The National Institution for Human Rights and Ombudsman's Person (INDDHH) is an independent institution responsible for the defence, promotion and protection in all its extension of the human rights recognised by the Constitution and international law. Its mission refers to suggesting corrective means, making non-binding recommendations and intervening in complaints for human rights violations, without entering into the jurisdictional, executive or legislative functions that correspond to the respective powers.25 Additional offices and special bodies exist within the State administration, for example the Secretariat of Human Rights – attached to the Presidency – which is the governing body that aims to incorporate a human rights approach in government policies, fulfilling the functions of promotion, design and coordination, as well as monitor and evaluate the correspondent policies and programs.26
Uruguay obtains a score of 98/100 in the 2019 ratings by Freedom House, making it one of the countries in the world with the highest level of freedom, political rights and civil liberties. Freedom of assembly and association is guaranteed by law and, according to Freedom House, generally respected in practice. A wide array of community organisations and national and international human rights groups are active in civic life.27
The Special Rapporteur on the issue of human rights obligations related to the enjoyment of a safe, clean, healthy and sustainable environment, from his mission in 2017, widely recognised the high standards of Uruguay both in protecting human rights and the environment. However, he recommended that the Government provide greater financial and technical support to INDDHH so that it can continue to address the relationship between human rights and environmental issues.28
Uruguay has made significant progress in a number of human rights policy areas, in particular regarding gender equality that is enshrined in Law 16,045 barring discrimination in the workplace, while Article 321 of the Penal Code makes domestic violence a distinct offence. Despite the legal provisions, in some cases women still have to confront inequality such as in employment or wage inequality. The Global Gender Gap Report 2018, for instance, ranks Uruguay 77th out of 149 countries in terms of women economic participation and opportunity.29
The Committee on the Elimination of Discrimination Against Women (CEDAW), in its concluding observations made for Uruguay in 2016, highlighted the positive progress made by the country in the matter, but also made a particular call (among other aspects) to apply the principle of equal remuneration for work of equal value.30 The Committee also called to establish a system to inform about good practices to eliminate gender pay inequality and promote women's access to decision-making positions, particularly through the preferential promotion of women and leadership training.
On the other hand, following his visit to Uruguay in 2017, the UN High Commissioner for Human Rights highlighted “inhumane” prison conditions, widespread violence against women and continuing impunity for violations committed during military rule among the challenges that the country faces regarding human rights.31
Employment and industrial relations
Chapter V focuses on the role of the Guidelines in promoting observance among enterprises of the international labour standards developed by the ILO, notably the fundamental principles and rights at work as recognised in the ILO 1998 Declaration on Fundamental Principle and Rights at Work. Other issues to be observed within the framework of applicable law, regulations and international labour standards concern the provision of adequate information to workers on performance and changes in company operations affecting workers, ensuring consultation and cooperation between employers and workers, observing employment and industrial relations standards, as well as providing adequate conditions of work covering wages and occupational safety and health at work.
Uruguay has ratified all eight fundamental Conventions of ILO and all four Governance Conventions.32 In 2012, Uruguay made history by being the first country to ratify ILO Convention No. 189 (C189) on decent work for domestic workers. The applicable legal norms for hiring workers in Uruguay are set out in the Constitution, specific Laws and Decrees, Acuerdos de Consejos de Salarios (the Agreements of the tri-partite Wage Councils), and regulations from the Ministry of Labour. Article 57 of the Constitution establishes the right for employees to participate in collective action, the right to strike and the right to organise unions. The ITUC-CSI Global Rights Index (2018) rates Uruguay in the first group (where there are sporadic violations of rights).33
Unions are numerous and politically influential. The Inter-Union Workers Plenary - National Workers Convention (PIT-CNT) is the main trade union, to which virtually all occupational unions are affiliated. PIT-CNT currently has more than 400 thousand affiliated workers.34 A recent development is the establishment of the Trade Union Confederation of Uruguay (CSGU), on the basis of split groups of the PIT-CNT (which, up to then, had affiliated all Uruguayan unions). The Uruguayan trade union movement plays an important role in the dialogue on labour policy, as well as other subjects which contribute to development and social inclusion.
The labour market is characterised by comprehensive regulations that promote equality and inclusiveness, but also introduce some rigidities that may unwillingly discourage hiring (IMF 2011, Chapter 3). The Ministry of Labour (MTSS) monitors the implementation of labour laws and regulations and provides technical assistance to employers and employees to ensure their corresponding rights.35 The MTSS also promotes the inclusion of the most vulnerable in the labour market, together with the Instituto Nacional de Empleo y Formación Profesional (INEFOP), a tripartite entity in charge of strengthening employment and implementing vocational training policies.36 A recent example of a MTSS-INEFOP joint initiative is the law establishing incentives for the creation of new jobs,37 which seeks to promote youth employment38 and creates a temporary programmeof employment subsidy.39 Likewise, the Ministry of Social Development (MDS) promotes strategies for inclusion such as “Uruguay Trabaja” (Uruguay works)40, which aims to develop social integration processes and promote employability of vulnerable persons, with limited educational levels and long-term unemployment. Public programs promote the development of skills aligned with employers’ needs, while direct policies protect women’s rights in the workplace and regulate issues such as maternity leave or breastfeeding rooms in the workplace.41
Informality concerns about 24% of workers, down from over 40% in 2004.42 According to the Economic Commission for Latin America and the Caribbean (ECLAC), the drop occurred during the economic boom, as most job creation was in the formal sector of the economy. Several additional policies reinforced the formalisation process, including the resumption of tripartite collective bargaining negotiations in 2005 (which had been abandoned in the 1990s), an increase in the minimum wage, and tax and health reforms.
The Uruguayan legal framework seeks to protect workers also in cases of labour outsourcing (subcontracting, intermediation and supply) and extend corporate responsibility in this regard to the entire supply chain. The 2008 Labour outsourcing and joint liability law (No. 18.251)43 mandates compliance with labour and social security obligations, including by any company that uses subcontractors, intermediaries or labour suppliers. According to the law, the main employer should exercise his/her right to be informed by the subcontractor, intermediation businessperson or the employment supplier firm about the compliance with labour, pension and insurance obligations. When this right is exercised, the liability for any failure to respect the above-mentioned obligations will be vicarious. Likewise, the law establishes that when the subcontractor, intermediation businessperson or employment supplier firm fails to pay any of the obligations, the main employer is entitled to withhold the payment to them, paying directly the workers and the public offices (for pensions and insurance obligations).44
The system of collective bargaining and conflict prevention remains an important component of peaceful industrial relations and contributes to sustainable development in Uruguay. However, it has raised some controversies, in particular with respect to its alignment with the ILO Right to Organise and Collective Bargaining Convention (No. 98, 1949). The ILO Committee on Freedom of Association has examined the issue since 2010 (Case No. 2699, which was still ongoing at the time of writing this Review) and the Committee of Experts also presented observations in 2010, 2011, 2012, 2015 and 2018. The Government and social partners still differ in their appreciation of progress made, especially regarding the role of the Ministry of Labour in the collective bargaining process, the duty of information in that framework, and the powers of the Higher Tripartite Council. A related problem is the widespread phenomenon of workplace occupation and picket lines, which act as disincentive to investment. On all these accounts, there may be value in reinforcing consultation mechanisms between social partners and presenting legislative proposals in the medium term.
Environment
Chapter VI calls on enterprises to take due account of the need to protect the environment, public health and safety, and generally to conduct their activities in a manner contributing to the wider goal of sustainable development. This entails sound environmental management that aims to control both direct and indirect environmental impacts; establishing and maintaining appropriate environmental management systems; improving environmental performance; being transparent about the environmental impacts and risks, including also reporting and communicating with outside stakeholders; being proactive in avoiding environmental damage; working to improve the level of environmental performance in all parts of their operations, even where this may not be formally required; and training and education of their employees with regard to environmental matters.
Uruguay is a Party to major multilateral environmental agreements, including the UN Convention on Biological Diversity (Uruguay signed the Convention at the Rio 92 Summit, and ratified it by Law (No. 16,408) on November 5, 1993); Uruguay has also ratified the Cartagena (2011) and Nagoya (2014) Protocols of the Convention and has signed the Nagoya-Lumpur Supplementary Protocol45. The country is also a Party to the UN Framework Convention on Climate Change (ratified on 18 August 1994) and its Kyoto Protocol (ratified on 5 February 2001)46. Uruguay is also a Party to the Paris Agreement (ratified on 19 October 2016). Uruguay has also signed and ratified the Regional Agreement on Access to Information, Public Participation and Justice in Environmental Matters in Latin America and the Caribbean (the Escazu Convention), which will enter into force once all the signatory countries ratify it.47
Article 47 of the Constitution establishes the protection of the environment as a matter of general interest and mandates all persons to abstain from any act that causes depredation, destruction or serious contamination to the environment. DINAMA (National Environment Directorate of the Ministry of Housing, Territorial Planning and the Environment) is responsible for implementation of environmental protection policies. In 2016, the National Environmental System, composed of various state agencies, was created to strengthen and co-ordinate public policies related to climate change. The Decree also created the National Environmental Cabinet, with the function of developing an integrated and equitable environmental policy, and the National Secretariat of Environment, Water and Climate Change to ensure coherence and alignment of climate and environmental policies.48
The environmental performance, as measured in the 2018 Yale Environmental Performance Index, is relatively satisfactory. Uruguay is ranked second in South America (after Colombia), 17th outside the OECD, and 47th globally. One of the main environmental concerns linked to agricultural activities in Uruguay is the use of pesticides. According to DINAMA, during the last 20 years technological innovation and the expansion of agriculture (especially associated with soybean cultivation) have increased the pressure on natural resources.49 Water resources have been the most affected by the use of pesticides. Several recent investigations have detected the widespread presence of pesticide residues in at least two of Uruguay's main rivers.50 In response to this, a Capacity Building Project for the environmentally appropriate management of pesticides is currently led by the National Environment Directorate, and financed with funds from the Global Environment Facility (GEF), with the technical support of FAO.51
The above had already been highlighted in 2017 by the Special Rapporteur on the issue of human rights obligations related to the enjoyment of a safe, clean, healthy and sustainable environment, during his visit to Uruguay. He stressed that expanding agricultural production through the use of fertilizers, agro-chemicals, and irrigation can cause environmental harm, including to water quality.52 However, he also acknowledged that the government has made continuous efforts to adopt a solid legal and institutional framework for the protection of the environment, including at the constitutional level, demonstrating the country’s long-standing commitment to maintaining a healthy environment and sustainable development.
Combating bribery, bribe solicitation and extortion
Chapter VII of the OECD Guidelines recognises the important role of the private sector in combating bribery and corruption. Enterprises should not, directly or indirectly, offer, promise, give, or demand a bribe or other undue advantage to obtain or retain business or other improper advantage, and should also resist the solicitation of bribes and extortion.
In comparison to other emerging economies, in Latin America but also globally, in Uruguay corruption is not perceived as a major issue. According to Latinobarómetro 2017, in particular, only 1% of the population considers it as the gravest problem facing the country, as against as 31% of Brazilians, 13% of Mexicans, and 12% of Chileans. Uruguay was ranked 23rd among 180 countries in the Transparency International’s Corruption Perception Index (CPI) in 2017. Uruguay’s ranking is higher than all non-OECD countries that are Adherents to the OECD Guidelines, as well as various OECD countries such as Chile (27th), Israel (34th), Poland (36th), Italy (53rd), Turkey (78th), or Mexico (138th).53
According to the 2017 World Economic Forum Executive Opinion Survey, corruption is rarely cited as a problematic factor for doing business in Uruguay (WEF, 2018). Although the sum lost in illicit financial flows from 2004 through 2013 is far from insignificant, USD 956 million per year on average, it is dwarfed by the estimated figures in other developing and emerging economies.54
Uruguay enacted a law against corruption in the public sector in 1998, which prohibits public officials from accepting bribes or facilitating payments.55 The acceptance of a bribe is a felony under the penal code. The legal framework against anti-money laundering (Laws 17.835/2004 and 18.494/2009 and Decree 226/10) includes corruption as a predicate offence. Uruguay is a Party to the Inter-American Convention against Corruption (IACAC, ratified on 28 October 1998) and to the United Nations Convention against Corruption (UNCAC, ratified on 10 January 2007). Uruguay has not signed the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.
An ecosystem of anticorruption institutions has been set up. The public prosecutor’s office (Fiscalía) is independent from government and has prosecuted some high-level Uruguayan officials for corruption in recent years. The Transparency and Public Ethics Committee (JUTEP) is the government office responsible for dealing with public sector corruption. Other institutions involved in preventing and combating corruption are the National Anti-money-laundering Secretariat, the Directorate-General for Combating Organised Crime, the Financial Information and Analysis Unit, and the special money-laundering parliamentary commission. Different stakeholders act in prevention and deterrence, including the private sector, community and civil society organisations, and the media. Uruguay’s continuous efforts to upgrade the fight against bribery and solicitation have also been acknowledged by the OAS Anticorruption Mechanism (MESICIC) (OAS, 2016).56
There is still scope for strengthening the transparency and accountability mechanisms in place in state-owned enterprises (SOEs), which represent a sizeable share of the corporate sector, in order to minimise opportunities for corruption.57 In this context, the Review of implementation of the United Nations Convention against Corruption recommended that non-monetary advantage be taken into account and that economic advantage, or advantage of an intangible nature as part of undue advantage, be criminalised.58
Compared with reforms aimed at strengthening integrity in the public sector, corruption prevention in the corporate sector has received significantly less attention in the public debate. For sure, rules on disclosure of ownership and control, governance by shareholders and supervisory boards and regulations governing accounting and auditing are in place (World Bank, 2006). Formal requirements are indeed necessary, but global good practices suggest that other actions may be necessary, such as providing interested parties (employees in particular) with specific information and training on anti-corruption compliance and business ethics. In this respect, local business should not spare efforts to develop ethics codes and other corporate measures aimed at preventing bribery and corruption.
Raising awareness of the channels for internal reporting is essential to ensure the effectiveness of any compliance programme. As discussed further in Chapter 8 of this Review, promotion of RBC principles and standards could play a role in preventing corruption. The OECD Guidelines recognise the important role of the private sector in combating bribery and corruption, and recommend that enterprises develop and adopt adequate internal controls, ethics and compliance programmes or measures for preventing and detecting bribery, on the basis of a risk assessment addressing the individual circumstances of an enterprise. The Guidelines also include recommendations for enterprises to introduce safeguards in their own policies to protect bona fide whistle-blowing activities. The OECD Due Diligence Guidance for Responsible Business Conduct provides practical guidance that can help enterprises avoid and address risks of corruption that may be associated with their operations, supply chains and other business relationships. So far, mainly large companies operating internationally, such as Conaprole, the dairy cooperative, have taken measures to actively promote ethical business internally (see Box 8.2).
Conaprole (Cooperativa Nacional de Productores de Leche), founded in 1936, is the largest private company in Uruguay, the country’s main exporter and the third-largest dairy company in South America. It collects milk from more than 2 000 medium and small producers who are the owners of the cooperative.
The Ethics Code of Conaprole – publically available and downloadable online – considers integrity, transparency, respect (covering equal opportunities and diversity), teamwork and excellence as the corporate values that make it possible to compete. The cooperative explicitly highlights its responsibility to respect human, labour and environmental rights, and build trust with local communities. The Code outlines the company’s obligations vis-à-vis its employees, clients and consumers, among others.
An Ethics Committee, composed of top managers, provides strategic orientation. Specific provisions concern gifts from customers and clients (that are prohibited), access to information, financial and non-financial contributions to political parties, conflicts of interest, and whistle-blowing.
Source: Conaprole’s Ethics Code (Código de Ética)
Consumer interests
Chapter VIII of the Guidelines calls on enterprises to apply fair business, marketing and advertising practices and to ensure the quality and reliability of the products that they provide. This includes co-operating fully with public authorities to prevent and combat deceptive marketing practices and to diminish or prevent serious threats to public health and safety or to the environment deriving from the consumption, use or disposal of their goods and services. It also includes supporting efforts to promote consumer education in order to improve the ability of consumers to make informed decisions, better understand the economic, environmental and social impacts of those decisions, and support sustainable consumption.
Consumer interests are safeguarded by the Constitution and the Consumer Defence Law (Law 17.250)59 of 2000. The Directorate for Consumer Defence (Dirección del Area de Defensa del Consumidor), housed in the Ministry of Economy and Finance, is responsible for its implementation and through information and advice to consumers about their rights and obligations and controlling effective compliance with regulations.60 The Directorate is also mandated to facilitate alternative mechanisms for the solution of conflicts originated in consumer relations, and advise the Ministry of Economy and Finance in the formulation and application of policies on consumer protection
Consumer welfare is also served through promoting fair, market-based corporate practices. The Law of Defence of Fair Competition61 (No. 18.159 of 2007) expressly aims to promote the well-being of current and future consumers and users, through the promotion and defence of competition, while stimulating economic efficiency, economic freedom and equal market access conditions. The law prohibits the limitation, restriction or unjustified agreement of the production, distribution and technological development of goods, services or productive factors, to the detriment of competitors or consumers. The Ministry of Economy and Finance, through the Commission for the Promotion and Defence of Competition (Comisión de Promoción y Defensa de la Competencia), guarantees its compliance through the imposition of monetary sanctions, recommendations and/or warnings.
Uruguay has also developed a "Consumer Defence Manual" which is the result of the joint effort of the Commission, the Secondary Education Council, the Council of Professional Technical Education (CETP), and the National Direction of Impressions and Official Publications (IMPO).62 The Manual aims to provide sufficient information to consumers to report inappropriate behaviours by companies that act dishonestly, abusively, or misleadingly with consumers, or that compete unfairly to capture the market – according to the behaviours typified in the Consumer Defence Law.
Science and technology
Chapter IX of the OECD Guidelines for MNEs recognises that enterprises are the main conduit of technology transfer across borders. It aims to promote technology transfer to host countries and contribution to their innovative capacities.
The Ministry of Industry, Energy and Mining (MIEM), develops and implements policies for the promotion of institutional and corporate good practices and initiatives in science, technology and innovation.63 Through incentives like the National Energy Efficiency Award (to promote savings and efficient use of energy in different sectors); and the energy efficiency contest for educational centres, it seeks to raise awareness about responsible practices regarding the efficient use of resources; promote the incorporation of energy efficiency measures; and generate references that promote the responsible use of resources both from institutions and businesses, as well as from the community.
Uruguay also has a specialised center (Industrial Extension Center - CEI) to promote public policies to strengthen innovation and competitiveness of SMEs within the following sectors: food, metallurgical, plastics, chemical and wood.64 The CEI offers technological and comprehensive diagnoses tailored to each SMEs situation, accompanied by an action plan which also sets out the financial support instruments available to lower the implementation cost, with the ultimate goal of stimulate demand for technology and innovation that positively contributes to the economy and society.
Competition
Chapter X of the Guidelines focuses on the importance of MNEs carrying out their activities in a manner consistent with all applicable competition laws and regulations, taking into account the competition laws of all jurisdictions in which their activities may have anti-competitive effects. Enterprises need to refrain from anti-competitive agreements, which undermine the efficient operation of both domestic and international markets. An important aspect of enterprises responsibilities in this regard is co-operation with competition authorities and promotion of awareness and training among employees on the importance of compliance, particularly among senior management.
The main legislation regulating competition is the Law of Defence and Promotion of Fair Competition (No. 18,159) of 2007 which expressly prohibits abuse of dominant position, as well as all practices, behaviours or recommendations, individual or concerted, that have the effect or purpose to restrict, limit, hinder, distort or prevent current or future competition is expressly prohibited. This law was reformed in 2019 (by Law 19.833), introducing notably a number of practices that are prohibited “per se” (in themselves), referring to concerted practices between competitors and characterised by being harmful to competition and consumers. These include agreements on prices or other commercial conditions; agreements to limit the production of goods or services; agreements to distribute markets; coordination in tenders or price contests; and the same practices carried out through a union or business association.
The Commission on the Promotion and Defence of Competition is a body that depends on the Ministry of Economic Affairs and Finance and is in charge of the implementation of the Law of Defence of Fair Competition. A UNCTAD voluntary peer review of Uruguay’s competition law and policy framework undertaken in 2016 highlighted that despite efforts, improvements could be made at both regulatory and institutional level to enhance protection and promotion of competition. This could include improving legal certainty, clarity and predictability as well as enhancing enforcement of the law. The peer review also concluded that the Commission on the Promotion and Defence of Competition would be strengthened by increased autonomy and resources.65
Taxation
Chapter XI of the Guidelines calls on enterprises to comply with both the letter and spirit of the tax laws and regulations of the countries in which they operate and make timely payments of their tax liabilities.
Uruguay is one of the few countries in the region that applies corporate taxes following the source principle: investments located and activities performed outside Uruguayan territory are not subject to taxation, regardless of nationality, domicile or residence of the parties participating in the transactions, and regardless of the place where the agreements are subscribed.66
In 2009, the OECD welcomed the formal endorsement by Uruguay of its tax information exchange standards. In particular, as of 1 December 2016 Uruguay is a Party to the amended Convention on Mutual Administrative Assistance in Tax Matters expanding its capacity to fight international tax avoidance and evasion. So far, the country has fully aligned with OECD standards by entering into more than 10 tax information exchange agreements and more than 15 double taxation agreements.67 Uruguay also become a Participant in the Committee on Fiscal Affairs, and agreed to start the automatic exchange of information in September 2018.
The State is the largest economic actor in Uruguay and therefore plays an important role in the promotion and implementation of RBC. According to the OECD Policy Framework for Investment (PFI), governments should exemplify RBC in their own role within the economy. This applies to all its activities, as employers, procurement agencies, business partners and commercial actors, including the practices of state-owned enterprises. It also extends to services from public agencies providing support to companies, as well as its donor activities. Not only is this in the public interest, it also enhances the government’s legitimacy in making recommendations on RBC to private businesses.68
State-owned enterprises
The Guidelines apply to all entities within the enterprise and all sectors whether private, state or mixed. Moreover, the Recommendation of the Council on Guidelines on Corporate Governance of State-Owned Enterprises (SOE Guidelines) recommends that SOEs should “observe high standards of responsible business conduct” and states that “expectations established by the government in this regard should be publicly disclosed and mechanisms for their implementation be clearly established.” The SOE Guidelines further recommend measures to report on foreseeable risks, including in the areas of human rights, labour, the environment, and risks related to corruption and taxation69.
SOEs – known as “Entes Autónomos y Servicios Descentralizados” (Autonomous Entities and Decentralised Services) – play an important role in the economy. The largest state-owned enterprises include the oil, cement, and alcohol company ANCAP, telecommunications company ANTEL, electric utility UTE, water utility OSE, and Uruguay’s largest bank BROU.70 Uruguayan SOEs are required to publish an annual report which is delivered (among others) to the Office of Planning and Budget (OPP) and the Ministry of Economy and Finance (MEF). The data set with information on public companies is published by the Office of Planning and Budget (OPP), but does not include non-financial information. Certain SOEs report regularly on a voluntary basis on environmental and social issues, notably on specific programmes, see in particular ANTEL and UTE.71 Further promoting and ensuring implementation of RBC principles and standards within SOEs could contribute to increased transparency and set an example for the uptake of responsible business practices by businesses at large.
Public procurement
Governments can also promote RBC principles and standards, through the engagement with enterprises that are recognised as behaving responsibly. The OECD Recommendation of the Council on Public Procurement72 encourages the use of secondary policy objectives, including responsible business conduct standards, for public procurement processes.
Public procurement in Uruguay is governed by Decree No. 150/012 “Financial accounting and financial administration of the state (TOCAF),”73 and implemented according to the Public Procurement Manual74, regulated, under the responsibility of the State Purchasing and Contracting Agency (ACCE). In 2015, general government public procurement accounted for approximately 6.3% of GDP and 19.1% of general government expenditure, which is below the OECD average of 12% and 29% respectively.75
The Uruguayan government has recently taken significant measures to position public procurement as a tool to foster RBC standards and principles through encouraging public entities and SOEs to include sustainability criteria in public procurement tenders. The Sustainable Public Procurement Policy is regulated under Decree 402/018 adopted in 2018,76 and seeks to protect inter alia human rights, labour rights and environmental standards through public procurement.
To implement the Decree, the Sustainable Public Procurement Programmehas been established by ACCE in March 2019 with the following specific objectives77:
design and implementation of a National Policy for Sustainable Public Procurement (SPP) and strengthening the existing legal framework to fully incorporate sustainability criteria in public procurement;
development of a set of tools, guides and documents, based on sustainable criteria and the life cycle approach for products and services, to be implemented in the Public Procurement System of Uruguay;
strengthening of the capacity of public buyers and national suppliers for an optimal incorporation of sustainability criteria in their activities;
design and implementation of a monitoring system to control compliance with sustainability standards.
No information is yet available on results achieved or progress made.
Trade and investment policy
Trade and investment policy can be important vehicles for governments to promote responsible business practices. By including considerations such as the protection of the environment, the implementation of labour standards, the fight against corruption, and the respect for human rights in trade and investment agreements, governments can promote responsible behaviour in global supply chains and the contribution of their trading and investment partners to sustainable development.
To date, Uruguay has concluded a number of trade78 and investment agreements79 to seek increased market access and attract international investment. A study of these agreements show that RBC-related language is increasingly included in their texts.
The latest free trade agreement (FTA) concluded by Uruguay with Chile in 2016 contains RBC-related language, with two chapters dedicated to labour and environmental issues that include specific articles on responsible business conduct.80 Likewise, the latest FTA negotiated by the Southern Common Market (MERCOSUR) established by Argentina, Brazil, Paraguay and Uruguay – in the framework of which Uruguay has concluded most of its trade agreements – also includes RBC-related language.81
The MERCOSUR and the EU reached a political agreement on 28 June 2019 for a comprehensive trade agreement82 whose goal is, among others, to “strengthen worker’s rights[,] […] ensure environmental protection, [and] encourage companies to act responsibly […]”83 To that effect, the trade agreement contains a dedicated chapter on trade and sustainable development aimed at enhancing the integration of sustainable development concerns in the Parties’ trade and investment relationships.84 In this chapter, the Parties agree that they should not lower labour or environmental standards in order to attract trade and that the agreement should not constrain their right to regulate on environmental or labour matters.85 They also undertake to promote the implementation of international labour standards86 and multilateral environmental agreements.87 The EU and the MERCOSUR also recognise the importance of responsible management of supply chains through responsible business conduct practices and agree to support the dissemination and use of the main relevant international instruments in the field (the OECD Guidelines, the UN Guiding Principles on Business and Human Rights, and the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy) and to provide a supportive policy framework for their implementation.88 The parties to the future trade agreement also commit to promote the OECD Recommendation of the Council on Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.89 90
RBC-related language appeared early on in Uruguay’s international investment agreements (IIAs). The bilateral investment treaty (BIT) concluded with Canada in 1997 for instance already contained a provision specifying that the treaty shall not constrain the signatories’ right to adopt and enforce measures designed to protect the environment.91 Several IIAs concluded later on by Uruguay include RBC-related language in their preambles and in various parts of the main body of the treaty.92
Particularly noteworthy is the BIT concluded by Uruguay and Japan in 2015 which contains RBC-related language in the preamble as well as in several articles. These provisions seek to discourage the loosening of environmental, labour, health and/or security standards and regulations in order to attract investment.93 They also specify that the treaty shall not constrain the signatories’ right to adopt and enforce public interest measures (such as measures necessary to protect health, human, animal or plant life, to ensure the conservation of natural resources, or to protect personal data).94 In addition, they establish the signatories’ commitments to take measures and make efforts to prevent and combat corruption in relation to the subject matters covered by the IIA.95
The increasing inclusion of RBC-related language in Uruguay’s trade and investment agreements is a welcome development. Not only does it enhance policy coherence and the government’s legitimacy in making recommendations on RBC, but it also improves Uruguay’s positioning as a country committed to sustainable development and responsible business practices, thereby fostering its competitiveness.
There is a strong legal framework underpinning RBC in Uruguay. Policies and regulations are in place and Uruguay has committed to the various international instruments cited in the Guidelines. The country enjoys a high level of human and labour rights protection and a developed system of social dialogue is in place. Compared to other emerging economies in Latin America but also globally, corruption is relatively low and the rule of law is well respected. While environmental protection is actively pursued by the Government, expanding agricultural production through the use of fertilisers, agro-chemicals, and irrigation has caused environmental impacts, including to water.
The government has been active in promoting responsible business practices and has engaged with stakeholders, including the private sector on social and environmental issues. Overall awareness of RBC issues is rising both among public and private sector entities, but led mainly by multinationals. Initiatives have nevertheless so far focused on more traditional CSR approaches and philanthropy: further efforts are needed to mainstream a risk-based approach to RBC. Developing a national, overarching framework specifically aimed at promoting RBC could also help engage a wider range of stakeholders, including SMEs, NGOs and trade unions and promote further policy coherence.
The existing high level of coordination and collaboration across government agencies and ministries due to the small size of both the country and government, and the fact that a number of RBC related issues, including environment, human rights and sustainability, are directly under the purview of the presidential office, offer significant advantages for the purpose of seeking coherence among all government policies on RBC.
The State plays an important role in the economy and measures have been taken recently to lead by example on RBC. In particular, notable efforts are under way to implement the use of public procurement as a strategic tool to foster sustainability. Further promoting and ensuring implementation of RBC principles and standards within SOEs could also contribute to increased transparency and set an example for the uptake of responsible business practices by businesses at large. Additionally, RBC standards in Uruguay have also been promoted through the country’s trade and investment agreements which increasingly include environmental and social standards. Uruguay could further evolve into an economy that promotes sustainability to enhance competitiveness.
Uruguay has set out and consulted on the plans for establishing the NCP, both with Uruguayan stakeholders as well as OECD institutional stakeholders. Uruguay envisions an NCP consisting of an inter-ministerial commission and an Executive Secretariat based in the Ministry of Economy, assisted by a multi-stakeholder advisory body. The Government plans to establish the NCP by Executive Decree in the first semester of 2020. While this timeline is ambitious, the Government foresees a longer time frame to operationalise the NCP after its creation through elaborate consultation processes to develop the terms of reference for the multi-stakeholder advisory body and the rules of procedure for handling specific instances. This would result in the NCP not being able to handle cases until approximately one year after its creation. With the support of the Secretariat, these processes could be expedited so as to ensure that the NCP is able to fully function as quickly as possible after its creation.
Establish an effectively functioning NCP to further the effectiveness of the Guidelines in accordance with the Decision of the Council on the OECD Guidelines for Multinational Enterprises, and in this regard ensure that the NCP will be fully functioning as soon as possible after its formal establishment by Executive Decree.
Undertake a capacity building exercise for the NCP within 12 months of adherence in line with the Action Plan to Strengthen National Contact Points for Responsible Business Conduct (2019-2021) [DAF/INV/RBC(2018)13/FINAL]. In that context, report back to the WPRBC on the progress made in implementing the recommendations from the capacity building exercise to improve the effective functioning of the NCP.
Promote the use of the OECD due diligence guidances by enterprises operating in or from Uruguay, actively support the use of due diligence by these enterprises, and ensure the widest possible dissemination of the various sector guidance and their use by various stakeholders.
Promote further policy coherence and improve coordination on RBC-related policies within the government.
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Government of Uruguay (2019s). SOEs of Uruguay. Retrieved from: www.transparenciapresupuestaria.opp.gub.uy/inicio/empresas-p%C3%BAblicas
Government of Uruguay (2019t). Uruguay’s Public Procurement Manual. Retrieved from: www.comprasestatales.gub.uy/ManualesDeUsuarios/manual-procedimiento-compras/DescripciondelManual.html
Government of Uruguay (2019u). State Purchasing and Contracting Agency (ACCE), 2019. Sustainable Purchases Program. Retrieved from: www.gub.uy/agencia-compras-contrataciones-estado/politicas-y-gestion/proyectos-innovacion/compras-sostenibles
Government of Uruguay (2019v). Uruguay XXI. Investment, Export and Country Brand promotion agency. Retrieved from: www.uruguayxxi.gub.uy/en/who-we-are/about-uruguay-xxi/
GRI (2019). GRI database. Retrieved from: www.database.globalreporting.org/search
INDDHH (2019). Mission. See: www.gub.uy/institucion-nacional-derechos-humanos-uruguay/institucional/cometidos
ITUC-CSI (2018). Global Rights Index. Retrieved from: www.ituc-csi.org/IMG/pdf/ituc-global-rights-index-2018-en-final-2.pdf
ITUC (2016). Social dialogue for sustainable development in Uruguay. Retrieved from: www.ituc-csi.org/IMG/pdf/tudcn-socila_dialogue_uk_web_v1.pdf
National Chamber of Commerce and Services of Uruguay (2019a). Retrieved from: www.cncs.com.uy/mision-autoridades/
National Chamber of Commerce and Services of Uruguay (2019b). Corporate Social Responsibility. Retrieved from: www.cncs.com.uy/responsabilidad-social/
OECD/UN ECLAC (2014), Multi-dimensional Review of Uruguay: Volume 1: Initial Assessment, OECD Development Pathways, OECD Publishing, Paris. Retrieved from: https://doi.org/10.1787/9789264209459-en
OECD (2019). OECD’s Tax Information Exchange Agreements (TIEAs). Retrieved from: www.oecd.org/ctp/exchange-of-tax-information/taxinformationexchangeagreementstieas.htm
OECD (2015a). Recommendation of the Council on the Policy Framework for Investment [C(2015)56/REV1], Chapter 7 Policies for enabling responsible business conduct.
OECD (2015b), The OECD Development Centre’s Governing Board welcomes Uruguay’s accession as 51st member. Retrieved from: www.oecd.org/countries/uruguay/uruguay-accession-as-51st-member.htm
OHCHR (2019). Uruguay's ratification status of human rights treaties: www.tbinternet.ohchr.org/_layouts/15/TreatyBodyExternal/Treaty.aspx?CountryID=188&Lang=SP
OHCHR (2018). General Recommendations of the Report of the Special Rapporteur on the issue of human rights obligations related to the enjoyment of a safe, clean, healthy and sustainable environment on his mission to Uruguay. Retrieved from: www.acnudh.org/wp-content/uploads/2018/08/G1802532.pdf
UNSD (2019), Uruguay. Retrieved from: www.data.un.org/en/iso/uy.html
PIT-CNT (2019): About us. Retrieved from: www.pitcnt.uy/el-pit-cnt/acerca-de
PWC (2018a), Doing in Business in Uruguay. Retrieved from: www.pwc.com.uy/es/acerca-de-nosotros/publicaciones/doing-business/doing-business-in-uruguay-2018.pdf
Transparency International (2018). Corruption Perceptions Index 2018. Retrieved from: www.cpi.transparency.org
Transparency International (2016). Uruguay overview of corruption and anti-corruption. Retrieved from: www.knowledgehub.transparency.org/assets/uploads/helpdesk/Country_profile_Uruguay_2016.pdf
U.S. Bureau of Economic and Business Affairs. (2018). Investment Climate Statements: Uruguay. Retrieved from www.state.gov/e/eb/rls/othr/ics/2018/wha/281785.htm
UN Global Compact Network (2019). Uruguay. Retrieved from: www.unglobalcompact.org/engage-locally/latin-america/uruguay
Uruguayan Institute of Technical Standards, the international standard ISO 26000 on social responsibility (2019). Retrieved from: www.unit.org.uy/normalizacion/sistema/26000/ See also on UNIT conferences and courses: www.unit.org.uy/novedades/ver/2017_responsabilidad_social_UNIT-ISO_26000
Uruguayan Confederation of Business Chambers (2019). Retrieved from: www.confederacionuy.com/quienes-somos
WEF (2018a). Global Competiveness Index. Retrieved from: www3.weforum.org/docs/GCR2018/05FullReport/TheGlobalCompetitivenessReport2018.pdf
WEF (2018b). Global Gender Gap Report. Retrieved from: www3.weforum.org/docs/WEF_GGGR_2018.pdf
World Bank (2019), country overview: Uruguay. Retrieved from: www.worldbank.org/en/country/uruguay/overview
World Bank (2018), Doing Business. Retrieved from: www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2018-Full-Report.pdf
World Bank (2017), Uruguay Overview. Retrieved from: www.worldbank.org/en/country/uruguay/overview
World Bank. (2014). Oriental Republic of Uruguay, Integration into Global Value Chain. The Dairy Industry and the ICT Industry. Retrieved from
www.documents.worldbank.org/curated/en/239321537906711662/pdf/AUS17180-WP-P157902-PUBLIC-ENGLISHGLOBAL-VALUE-CHAINS-c-final-002.pdf
WTO (2018). Trade Policy Review: Uruguay. Retrieved from www.wto.org/english/tratop_e/tpr_e/g374_e.pdf
Notes
← 1. OECD/LEGAL/0386OECD/LEGAL/0428OECD/LEGAL/0427OECD/LEGAL/0437, and the Recommendation of the Council on the OECD Due Diligence Guidance for Responsible Business Conduct [OECD/LEGAL/0443]
← 2. U.S. Bureau of Economic and Business Affairs. (2018). Investment Climate Statements: Uruguay. Retrieved March 31, 2019, from www.state.gov/reports/2018-investment-climate-statements/uruguay
← 3. OECD/UN ECLAC (2014), Multi-dimensional Review of Uruguay: Volume 1: Initial Assessment, OECD Development Pathways, OECD Publishing, Paris, https://doi.org/10.1787/9789264209459-en.
← 4. Information provided by the Uruguayan authorities and in particular its responses to questionnaires by the OECD Secretariat related to the Guidelines.
← 5. Office of planning and budget. Presidency of the Nation: National Development Strategy, Uruguay 2050. Retrieved from: http://200.40.96.180/images/Hacia_una_Estrategia_Nacional_de_Desarrollo_Uruguay_2050.pdf
← 6. Contributions to a 2050 development strategy. Office of Planning and Budget. 2019. Retrieved from: www.estrategiadesarrollo2050.gub.uy/sites/default/files/inline-files/Estrategia_Desarrollo_2050.pdf.
← 7. Law No. 19,472, enacted on December 23, 2016.
← 8. Transforma Uruguay. Retrieved from: www.transformauruguay.gub.uy/es.
← 9. UN Global Compact Network: Uruguay. Retrieved from: www.unglobalcompact.org/engage-locally/latin-america/uruguay.
← 10. Recent meetings were not reported during the Secretariat mission and the information on the website is outdated. See Global Compact Uruguay. (2019). Who we are. Retrieved from www.pactoglobal.uy
← 11. DERES. English brief. Retrieved from: www.deres.org.uy/english-brief/.
← 12. See DERES, ‘Partner companies’. Retrieved from: www.deres.org.uy/empresas/socia.
← 13. Uruguayan Institute of Technical Standards, the international standard ISO 26000 on social responsibility. Retrieved from: www.unit.org.uy/normalizacion/sistema/26000. See also on UNIT conferences and courses: www.unit.org.uy/novedades/ver/2017_responsabilidad_social_UNIT-ISO_26000.
← 14. UNIT (2010). UNIT-ISO 26000 Special Edition. Retrieved from: www.unit.org.uy/normalizacion/compendio/11.
← 15. Chamber of Industry of Uruguay. Retrieved from: www.ciu.com.uy/innovaportal/v/69/1/innova.front/que-es-la-ciu.html
← 16. See CIU Environmental Declaration: www.ciu.com.uy/innovaportal/file/83918/1/declaratoria_ambiental.pdf
← 17. National Chamber of Commerce and Services of Uruguay. Retrieved from: www.cncs.com.uy/mision-autoridades
← 18. National Chamber of Commerce and Services of Uruguay. Corporate Social Responsibility. Retrieved from: www.cncs.com.uy/responsabilidad-social
← 19. Uruguayan Confederation of Business Chambers: www.confederacionuy.com/quienes-somos
← 20. See CCE: Objectives. Retrieved from: www.confederacionuy.com/objetivos
← 21. General Tax Directorate of Uruguay (DGI). Available at: www.dgi.gub.uy/wdgi/afiledownload?2,4,1240,O,S,0,32956%3BS%3B1%3B115
← 22. Official communication from the BCU about the procedures. Available in: www.gpa.uy/files.php/archivos-externos/6652/2017-08-03-bcu-comunicado-2017-133.pdf?dl=false%2520Requiere%2520login:
← 23. More info on Uruguayan and LAC companies can be found on the GRI database: www.database.globalreporting.org/search
← 24. Uruguay's ratification status of human rights treaties: www.tbinternet.ohchr.org/_layouts/15/TreatyBodyExternal/Treaty.aspx?CountryID=188&Lang=SP. See also Study on legislative harmonisation in accordance with the human rights treaties ratified by Uruguay. Retrieved from: www.archivo.presidencia.gub.uy/_web/noticias/2006/09/ARMONIZACION.pdf
← 25. INDDHH. Mission. See: www.gub.uy/institucion-nacional-derechos-humanos-uruguay/institucional/cometidos
← 26. Secretariat of Human Rights. Mission. See: www.gub.uy/secretaria-derechos-humanos/institucional/cometidos
← 27. See Section E of the Freedom in the World Index “Associational and organisational rights”. Retrieved from: www.freedomhouse.org/report/freedom-world/2019/uruguay
← 28. See General Recommendations of the Report of the Special Rapporteur on the issue of human rights obligations related to the enjoyment of a safe, clean, healthy and sustainable environment on his mission to Uruguay (2018). Retrieved from: www.acnudh.org/wp-content/uploads/2018/08/G1802532.pdf
← 29. Global Gender Gap Report 2018. Retrieved from: www3.weforum.org/docs/WEF_GGGR_2018.pdf
← 30. CEDAW (2016). Concluding observations of the Committee on the Elimination of Discrimination against Women. Retrieved from: www.refworld.org.es/country,,CEDAW,,URY,,59b97ba84,0.html
← 31. OHCHR Uruguay: Zeid recognises human rights record, urges more efforts to tackle violations. Retrieved from: www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=22318&LangID=E
← 32. The Fundamental Conventions include: 1) Forced Labour Convention, 1930 (No. 29); 2) Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87); 3) Right to Organise and Collective Bargaining Convention, 1949 (No. 98); 4) Equal Remuneration Convention, 1951 (No. 100); 5) Abolition of Forced Labour Convention, 1957 (No. 105); 6) Discrimination (Employment and Occupation) Convention, 1958 (No. 111); 7) Minimum Age Convention, 1973 (No. 138); 8) Worst Forms of Child Labour Convention, 1999 (No. 182). The Governance Conventions (Priority) include: 1) Labour Inspection Convention, 1947 (No. 81); 2) Employment Policy Convention, 1964 (No. 122); 3) Labour Inspection (Agriculture) Convention, 1969 (No. 129); 4) Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144); See also ILO, NORMLEX, Country Profile for Uruguay: www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:11200:0::NO::P11200_COUNTRY_ID:102876
← 33. 2018 ITUC-CSI Global Rights Index. Retrieved from: www.ituc-csi.org/IMG/pdf/ituc-global-rights-index-2018-en-final-2.pdf
← 34. See: PIT-CNT: About us. Retrieved from: www.pitcnt.uy/el-pit-cnt/acerca-de
← 35. PwC. Doing Business in Uruguay. Retrieved from: www.pwc.com.uy/es/acerca-de-nosotros/publicaciones/doing-business/doing-business-in-uruguay-2018.pdf
← 36. See: INEFOP. Strategic Action Plan 2017-2019. Retrieved from: www.inefop.org.uy/Institucional/Plan-Estrategico-2017-2019-uc1345.
← 37. See: Law No. 19.689 of 2018 establishing incentives for the creation of new jobs. Retrieved from: www.legislativo.parlamento.gub.uy/temporales/docu8073181520931.htm. See also INEFOP (2019), Press release “INEFOP y MTSS dieron a conocer los principales cambios en la Ley N°19.689 de Promoción al Empleo”. Retrieved from: www.inefop.org.uy/Noticias/INEFOP-y-MTSS-dieron-a-conocer-los-principales-cambios-en-la-Ley-N-19-689-de-Promocion-al-Empleo-uc2629.
← 38. See: Law No. 19.689 of 2018 establishing incentives for the creation of new jobs, Chapter I. Retrieved from: www.legislativo.parlamento.gub.uy/temporales/docu8073181520931.htm.
← 39. See: Law No. 19.689 of 2018 establishing incentives for the creation of new jobs, Chapter II. Retrieved from: www.legislativo.parlamento.gub.uy/temporales/docu8073181520931.htm.
← 40. Ministry of Social Development. Retrieved from: www.gub.uy/ministerio-desarrollo-social/comunicacion/convocatorias/llamado-inscripciones-uruguay-trabaja
← 41. See for example Law 19.530 relative to the installation of breastfeeding rooms. Available at: www.impo.com.uy/bases/decretos/234-2018
← 42. See: CEPAL. Labor Informality in Uruguay Fell 17 Points in the Last Decade, According to an ECLAC Study www.cepal.org/en/noticias/la-informalidad-uruguay-cayo-17-puntos-la-ultima-decada-destaca-estudio-cepal
← 43. Labor outsourcing and joint liability law. Retrieved from: www.impo.com.uy/bases/leyes/18251-2008
← 44. PwC. Doing Business in Uruguay. Retrieved from: www.pwc.com.uy/es/acerca-de-nosotros/publicaciones/doing-business/doing-business-in-uruguay-2018.pdf
← 45. See Convention on Biological Diversity. List of parties. Retrieved from: www.cbd.int/information/parties.shtml#tab=3
← 46. See all environmental treaties ratified by Uruguay: www.observatoriop10.cepal.org/en/countries/43/treaties
← 47. For more information, see www.observatoriop10.cepal.org/en/treaties/regional-agreement-access-information-public-participation-and-justice-environmental
← 48. ICLG. Uruguay : Environment and Climate Change Law 2019. www.iclg.com/practice-areas/environment-and-climate-change-laws-and-regulations/uruguay
← 49. Ministry of Environment. Environmentally appropriate management of pesticides. Retrieved from: www.mvotma.gub.uy/ambiente/gestion-de-residuos-y-sustancias/sustancias-quimicas/plaguicidas
← 50. See: www.scidev.net/america-latina/medio-ambiente/noticias/hallan-residuos-de-pesticidas-en-peces-de-rios-uruguayos.html; www.elpais.com.uy/vida-actual/detectaron-primera-vez-presencia-pesticida-agua-lluvia-paysandu.html; and https://rioabierto.ladiaria.com.uy/articulo/2018/7/en-los-ultimos-siete-anos-el-mgap-aplico-131-multas-por-mal-uso-de-plaguicidas/
← 51. FAO. Public and private sectors of Uruguay work on pesticides. Retrieved from: www.fao.org/uruguay/noticias/detail/es/c/1103815/
← 52. OHCHR. Uruguay “inspiring” on environment but must do more, UN rights expert finds. Retrieved from: www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=21560&LangID=E
← 53. Corruption Perceptions Index 2018. Retrieved from: www.cpi.transparency.org
← 54. GFI (2015). Illicit Financial Flows from Developing Countries: 2004-2013 www.gfintegrity.org/wp-content/uploads/2015/12/IFF-Update_2015-Final-1.pdf
← 55. BTI Project. (2018). Country reports: Uruguay. Retrieved March 31, 2019, from www.bti-project.org/en/reports/country-reports/detail/itc/ury/
← 56. Such as the establishment of ‘Uruguay Concursa’ as a portal for central administration hiring, the adoption of clear criteria for advertising government hiring opportunities and of transparent procedures for the selection of contractors in those situations where direct contracting is used, and the implementation of electronic bidding.
← 57. See, for instance, Zipitría et al. (2019).
← 58. More information on the Implementation Review Mechanism (IRM) to effectively implement the Convention in Uruguay is available at: www.unodc.org/unodc/treaties/CAC/country-profile/CountryProfile.html?code=URY. See also: UNODC. Flagship study, State of Implementation of the United Nations Convention against Corruption: Criminalization, Law Enforcement and International Cooperation. Retrieved from: www.unodc.org/documents/treaties/UNCAC/COSP/session7/V.17-04679_E-book.pdf
← 59. Law 17.250. Consumer Defence Law. Retrieved from: www.bcu.gub.uy/Leyes%20y%20Decretos/Ley%2017250.pdf
← 60. Ministry of Economy. Consumer Defense. Retrieved from: www.consumidor.mef.gub.uy/10136/9/areas/mision-y-vision.html
← 61. Law of Defense of Fair Competition No. 18,159 of 2007. Retrieved from: www.legislativo.parlamento.gub.uy/temporales/leytemp103186.htm
← 62. MEF. Consumer Defense Manual. Retrieved from: www.consumidor.mef.gub.uy/innovaportal/file/10406/1/manual_de_defensa_del_consumidor.pdf
← 63. Ministry of Industry, Energy and Mining. Retrieved from: www.miem.gub.uy/institucional/ciencia-tecnologia-e-innovacion-una-vision-de-pais
← 64. Industrial Extension Center. About Retrieved: www.centrocei.org.uy/en/
← 65. UNCTAD (2016). Voluntary Peer Review of Competition Law and Policy. Uruguay. www.unctad.org/en/PublicationsLibrary/ditcclp2016d1_en.pdf
← 66. PwC. Doing Business in Uruguay. Retrieved from: www.pwc.com.uy/es/acerca-de-nosotros/publicaciones/doing-business/doing-business-in-uruguay-2018.pdf
← 67. OECD’s Tax Information Exchange Agreements (TIEAs). Retrieved from: www.oecd.org/ctp/exchange-of-tax-information/taxinformationexchangeagreementstieas.htm See also Uruguay, international agreements: Investor Guide. Retrieved from: www.uruguayxxi.gub.uy/guide/descargas/International%20agreements.pdf
← 68. Recommendation of the Council on the Policy Framework for Investment [C(2015)56/REV1], Chapter 7 Policies for enabling responsible business conduct.
← 69. See Annotations to Chapter V: Stakeholder Relations and Responsible Business, in particular paras. 110 and 117.
← 70. SOEs of Uruguay. Retrieved from: www.transparenciapresupuestaria.opp.gub.uy/inicio/empresas-p%C3%BAblicas
← 71. MEF. Management commitments of public companies 2018. Retrieved from: www.gub.uy/ministerio-economia-finanzas/comunicacion/publicaciones/rendicion-cuentas-2018-compromisos-gestion-lineamientos-presupuestales About UTE reporting: portal.ute.com.uy/institucional/ute-y-la-sociedad/responsabilidad-social-empresarial; About ANTEL reporting: www.antel.com.uy/institucional/antel-integra/gestion-responsable
← 72. OECD Recommendation of the Council on Public Procurement available at https://legalinstruments.oecd.org/en/instruments/OECD-LEGAL-0411
← 73. Decree 150/2012. Retrieved from: www.impo.com.uy/bases/decretos/150-2012
← 74. Uruguay’s Public Procurement Manual. Retrieved from: www.comprasestatales.gub.uy/ManualesDeUsuarios/manual-procedimiento-compras/DescripciondelManual.html
← 75. Izquierdo, Alejandro, Carola Pessino, and Guillermo Vuletin (eds.) (2018), Mejor gasto para mejores vidas – Cómo América Latina y el Caribe puede hacer más con menos, Inter-American Development Bank.
← 76. Decree 402/018. Sustainable Public Procurement Policy. Retrieved from: www.impo.com.uy/bases/decretos/402-2018
← 77. State Purchasing and Contracting Agency (ACCE), 2019. Sustainable Purchases Program. Retrieved from: www.gub.uy/agencia-compras-contrataciones-estado/politicas-y-gestion/proyectos-innovacion/compras-sostenibles
← 78. Government of Uruguay (2019). Ministry of Economy and Finance. Support to the Private Sector Unit. Trade Agreements. Retrieved from: www.mef.gub.uy/712/8/areas/acuerdos-comerciales.html.
← 79. Government of Uruguay (2019). Ministry of Economy and Finance. Support to the Private Sector Unit. Investment Agreements. Retrieved from: www.unasep.mef.gub.uy/726/8/areas/acuerdos-de-inversiones.html.
← 80. FTA concluded by Uruguay and Chile on 4 October 2016, Chapter 11 “Labour”, Article 11.8 “Responsible Business Conduct” and Chapter 12 “Environment”, Article 12.6 “Responsible Business Conduct”. Retrieved from: www.mef.gub.uy/26250/1/areas/ace-73-uruguay-chile.html.
← 81. Government of Uruguay (2019). Ministry of Economy and Finance. Support to the Private Sector Unit. Trade Agreements. Retrieved from: www.mef.gub.uy/712/8/areas/acuerdos-comerciales.html.
← 82. European Commission. Press release. 28 June 2019. EU and Mercosur reach agreement on trade. Retrieved from: www.ec.europa.eu/commission/presscorner/detail/en/IP_19_3396.
← 83. European Commission. EU-Mercosur trade agreement. Retrieved from: www.ec.europa.eu/trade/policy/in-focus/eu-mercosur-association-agreement/.
← 84. European Commission. EU-Mercosur trade agreement. Chapter on Trade and Sustainable Development, Article 1 “Objectives and scope”. Retrieved from: www.trade.ec.europa.eu/doclib/docs/2019/july/tradoc_158166.%20Trade%20and%20Sustainable%20Development.pdf.
← 85. European Commission. EU-Mercosur trade agreement. Chapter on Trade and Sustainable Development, Article 2 “Right to regulate and levels of protection”, Paragraphs 3, 4 and 5. Retrieved from: www.trade.ec.europa.eu/doclib/docs/2019/july/tradoc_158166.%20Trade%20and%20Sustainable%20Development.pdf.
← 86. European Commission. EU-Mercosur trade agreement. Chapter on Trade and Sustainable Development, Article 4 “Multilateral Labour Standards and Agreements”, Paragraph 3. Retrieved from: www.trade.ec.europa.eu/doclib/docs/2019/july/tradoc_158166.%20Trade%20and%20Sustainable%20Development.pdf. See also European Commission. EU-Mercosur trade agreement. Agreement in principle. Retrieved from: www.trade.ec.europa.eu/doclib/docs/2019/june/tradoc_157964.pdf.
← 87. European Commission. EU-Mercosur trade agreement. Chapter on Trade and Sustainable Development, Article 5 “Multilateral Environmental Agreements”, Paragraph 3. Retrieved from: www.trade.ec.europa.eu/doclib/docs/2019/july/tradoc_158166.%20Trade%20and%20Sustainable%20Development.pdf. See also European Commission. EU-Mercosur trade agreement. Agreement in principle. Retrieved from: www.trade.ec.europa.eu/doclib/docs/2019/june/tradoc_157964.pdf.
← 88. European Commission. EU-Mercosur trade agreement. Chapter on Trade and Sustainable Development, Article 11 “Trade and Responsible Management of Supply Chains”, Paragraphs 1 and 2(a). Retrieved from: www.trade.ec.europa.eu/doclib/docs/2019/july/tradoc_158166.%20Trade%20and%20Sustainable%20Development.pdf. See also European Commission. EU-Mercosur trade agreement. Trade and sustainable development. Retrieved from: www.trade.ec.europa.eu/doclib/docs/2019/june/tradoc_157957.pdf.
← 89. OECD Recommendation of the Council on Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas available at https://legalinstruments.oecd.org/en/instruments/OECD-LEGAL-0386
← 90. European Commission. EU-Mercosur trade agreement. Chapter on Trade and Sustainable Development, Article 11 “Trade and Responsible Management of Supply Chains”, Paragraph 3. Retrieved from: www.trade.ec.europa.eu/doclib/docs/2019/july/tradoc_158166.%20Trade%20and%20Sustainable%20Development.pdf.
← 91. BIT concluded by Uruguay and Canada on 29 October 1997, Annex 1 “General and specific exceptions”, Paragraph III “General exceptions and immunities”, subparagraphs (1) and (2). Retrieved from: www.unasep.mef.gub.uy/innovaportal/file/726/13/canada_uruguay_esp.pdf.
← 92. BIT concluded by Uruguay and the United States of America on 4 November 2005. Retrieved from: www.unasep.mef.gub.uy/innovaportal/file/726/13/acuerdo-inversiones-eeuu-uruguay.pdf. BIT concluded by Uruguay and Korea on 1 October 2009. Retrieved from: www.unasep.mef.gub.uy/innovaportal/file/726/13/appi-corea---uruguay_sp.pdf. BIT concluded by Uruguay and Japan on 26 January 2015. Retrieved from: www.unasep.mef.gub.uy/innovaportal/file/726/13/acuerdo-entre-japon-y-la-republica-oriental-del-uruguay-para-la-liberalizacion-promocion-y-protecci.pdf. BIT concluded by Uruguay and the United Arab Emirates on 24 October 2018. Retrieved from: www.parlamento.gub.uy/documentosyleyes/ficha-asunto/144396/ficha_completa. BIT concluded by Uruguay and Australia on 5 April 2019. Retrieved from: www.medios.presidencia.gub.uy/legal/2019/proyectos/09/mrree_418_convenio.pdf.
← 93. BIT concluded by Uruguay and Japan on 26 January 2015, Article 27 “Measures on health, security, environment and labour standards”. Retrieved from: www.unasep.mef.gub.uy/innovaportal/file/726/13/acuerdo-entre-japon-y-la-republica-oriental-del-uruguay-para-la-liberalizacion-promocion-y-protecci.pdf. For a similar provision see the BIT concluded by Uruguay and the United States of America on 4 November 2005, Article 12 “Investment and environment” and Article 13 “Investment and labour law”. Retrieved from: www.unasep.mef.gub.uy/innovaportal/file/726/13/acuerdo-inversiones-eeuu-uruguay.pdf.
← 94. BIT concluded by Uruguay and Japan on 26 January 2015, Article 22 “General and security exceptions”. Retrieved from: www.unasep.mef.gub.uy/innovaportal/file/726/13/acuerdo-entre-japon-y-la-republica-oriental-del-uruguay-para-la-liberalizacion-promocion-y-protecci.pdf. For another example, see the BIT concluded by Uruguay and the United Arab Emirates on 24 October 2018, Article 18 “General and security exceptions”. Retrieved from: www.parlamento.gub.uy/documentosyleyes/ficha-asunto/144396/ficha_completa.
← 95. BIT concluded by Uruguay and Japan on 26 January 2015, Article 14 “Measures against corruption”. Retrieved from: www.unasep.mef.gub.uy/innovaportal/file/726/13/acuerdo-entre-japon-y-la-republica-oriental-del-uruguay-para-la-liberalizacion-promocion-y-protecci.pdf.