The first centenary finds the consolidated regime, generating a return of almost six times for each dollar exonerated and approximately 30 thousand jobs.

The history of sustained growth in the free zone system, whose execution has a positive impact throughout society, began on June 20, 1923 with an advanced initiative for the time. The First Free Zone Law It was replaced by others until reaching the current regulations, which governs since 1987.

The original proposals to establish a regime of free zones in the country emerged during the first presidency of José Batlle y Ordóñez (1903-1907), when two technical missions were sent to Europe and the United States, in order to study the port regime.

From this analysis, initiatives directed to the establishment of free zones in Montevideo, Colonia, and Nueva Palmira, with the aim of promoting the establishment of commercial and industrial companies on the basis of customs extraterritoriality and exemption to the users of the users of the users of All types of taxes.

With Law No. 7,593 of June 20, 1923, the creation of free zones in the port area of ​​Colonia and Nueva Palmira was approved and the State was enabled to establish a third in Bella Unión. To stimulate trade and industry, the fractionation and transformation of tax -free raw material was allowed.

In this way, with the placement in 1925 of the fundamental stone in Colonia, the public policy of free zones in Uruguay began to materialize.

In this territory, the development of shipping, landing, transformation, improvement and classification of matters of foreign origin, free of customs rights and any internal tax were allowed.

The manufacturing and industrial establishments based in these areas benefited from an exemption of taxes. Meanwhile, the raw materials imported from abroad could be freely re -exported, as well as the products made there.

This regulation was replaced in December 1949 after the approval of Law No. 11,392, which established a regime of frank areas and deposits with broad facilities, creating, as well as its antecedent, a customs franchise restricted of an essentially industrial nature, which was sought Facilitate commercial exchange.

The last regulations, which came with the approval of Law No. 15,921 in December 1987, innovated and facilitated the investment, created private free zones and the contractual regime for users, widely exceeding the results achieved with the previous legislation.

Under Law No. 15,921, which had some modifications in 2017, the industrial, commercial and service free zones multiplied in Uruguay, currently with 15 authorized in various regions, among which the UPM II cellulose plant stands out, considered The largest private investment in the country.

In 2022 the construction of the first exclusive free zone of services in Punta del Este began, and this year the installation of a project with similar characteristics in Colonia was approved.

According to the report prepared by the Center for Economic and Social Reality Studies (Ceres) based on data extracted from the last census of free zones of 2019 of the Ministry of Economy and Finance (MEF), until that year there were more than 1,000 companies enabled to operate in Franco territory, which directly occupied more than 15,000 people, with an average remuneration that doubled that of workers' extra regime.

The investment made by free zone companies during 2019 was close to US $ 500 million, 5.6% of the total investments of Uruguay. On the other hand, exports of goods and services from free zones exceeded US $ 5.3 billion that year, about a third of the total exports of the country.

It is estimated that until 2019 (period that does not consider extensions of certain free zones or UPM II) the economic activity of companies in the regime represented 5% of the internal gross product (GDP). In turn, almost 14,000 additional positions were generated indirectly, reaching 29,000 jobs, 2% of the total employed in the national territory.

The tax exemptions granted to Frankish territories totaled US $ 280 million between 2014 and 2019. The benefit generated by companies reached about US $ 1.6 billion annually on average.

This means that, for every dollar exonerated, free zones generated the country a return almost six times higher, without considering the positive effects on the increase in the productivity of human resources, the adoption of innovative business practices, the incorporation of standards of international quality and technology transfer, among other aspects.

The Free Zone Chamber of Uruguay, an entity that brings together developers and users of the regime, is proposed towards the future of the regime and its contributions to Uruguay in the coming years.