“There are two things more attractive than the incentives offered by the Uruguayan government…” said the British ambassador

this British Ambassador Faye O’Connor, Arrived in Uruguay in 2019 and is about to complete his mission in Uruguay.

He will return on July 28 next year U.K.who will take up his new post at the Foreign Office in London.

O’Connor joined the British Foreign Service in 2001 and has held a number of positions in the British Foreign Service. Prime Minister’s Office From London, Mexico, Moscow and New York.

In Uruguay, it will be replaced by diplomats Malcolm Greenwho has extensive experience in multilateral affairs, starts in August.

The following are excerpts from the discussion with O’Connor.

What did he leave behind, and what did he leave behind?
We are taking stock and the truth is, I am very proud of what we have achieved in these four years. Much of my first year of management was disrupted by covid-19. So the balance is just over three years. We have achieved in areas such as climate change, international cooperation and trade. For me, business is the most important of the three areas and perhaps the least known. In 2021, we launched Joint Trade Committee We had two preliminary meetings, one in Uruguay and one in the UK, where we signed agreements on health, intellectual property and audiovisual. All of them promised to be very fruitful. For example, people from the Uruguayan audiovisual industry will go to London Film Festival in October. Last January, we brought in some producers from the UK, and the idea was to co-produce.

What audiovisual co-production agreements have you signed?
The two parties signed a memorandum of understanding National Standards Committee (Film and Audiovisual Institutions) and British Film Institute This is the first project of its kind for the BFI worldwide. In this way we are looking for innovative ideas to strengthen collaboration on many topics.

Photo: National Archives

What can you tell us about bilateral trade?
In the four years since the start of the operation, bilateral trade has increased by more than 80% to US$500 million. Uruguayan exports of rapeseed and soybeans to the UK have increased, but the growth of bilateral trade in services has been very significant and now accounts for 23% of the total. Specifically, Uruguayan imports of services from the UK have increased sevenfold in the most diverse sectors. The flow of services from Uruguay to our country has tripled, especially in the IT (Information Technology) sector. This shows where we are heading in the future.

British companies have also recently arrived in Uruguay, which ones would you highlight?
In the construction sector we have Foster and Partners, in infrastructure projects we have Turner and Townsend, in the financial sector we have Rhisco in risk management consultancy, in HR consultancy we have AON, in data analytics we have Rhisco, in marketing and customer experience we have The Shopper Agency and in business performance consultancy we have Amosca. All these British companies are now present in Uruguay. Uruguayan companies that already have a presence in the UK include Dynamo (software solutions), RUA Group (capital investments) and Biominds Lab (biotechnology and biomedical research). They are still very active.

What was the reason for this business movement?
Since 2020, Uruguayan businessmen have sent four trade missions to the UK and British have sent six trade missions to the UK. Part of our strategy is to promote bilateral relations. The Prado Expo platform is also very important to showcase the UK’s contribution to agricultural technology.

Are the fiscal or economic incentives for foreign investment put in place by the Uruguayan government attractive to UK companies?
Yes, I think so, although two things are more attractive to British companies: sustainable development and Uruguay’s leadership in the second energy transition. We have two British funds, Cúbico and Atlántica Sustainable Investments, which have invested in and acquired wind and solar parks in Uruguay. Cúbico has become the second largest producer of renewable electricity in the country after UTE. Atlántica Sustainable Investments was the first company in the renewable energy sector to agree to sell energy to a private company (Coca-Cola). This was achieved through market liberalization here, which has increased competition and is very good for everyone. This is a major attraction for us and will continue to be relevant with green hydrogen. We have a British company, Johnson Matthey (JM), involved in the Chilean HIF project in Paysandú, which uses its technology for methane decarbonization. JM has become part of the HIF alliance and is protected by it. Another very attractive aspect is Uruguay’s status as a stable, reliable and democratic country with access to the Mercosur market.

Which UK companies are entering the Mercosur market from Uruguay?
Especially pharmaceuticals. In 2016, AstraZeneca announced that it would build a logistics center in Uruguay to sell its products to Mercosur countries. Indeed, the center continued to develop and transferred about $100 million from Uruguay to these countries in 2023. Due to this success, we decided to help the company GlaxoSmithKline Biopharmaceuticalsthe company also announced in 2022 that it would develop a logistics center in Uruguay, which is already operational. All this took place during the visit of President Luis Lacalle Pou to the UK in May 2022. In its first year, in 2023, GSK transferred $28 million in Mercosur. Very AstraZeneca GlaxoSmithKline wants to do more research in Uruguay. Our hope is that with Uruguay joining the PCT (Patent Cooperation Treaty), the door to these initiatives is more open.

But Uruguay made a reservation to Chapter II of the PCT when it joined this year. Are UK research companies still actively considering this restriction?
They are still waiting for that part, but Uruguay has taken a very good step and the country’s willingness to complete the process and the progress it is making towards that goal is also taken into account.

Do you consider the yet-to-be-signed Free Trade Agreement (FTA) between Uruguay and the United Kingdom to be an open question?
We have to do it. In my country, we have a new government, which is a very big change because our previous conservative government had been in power for 14 years. I have been in the Foreign Office for 23 years and in my long career, this is the second time that there has been such a big change. The new (Labor) government has said it wants to refocus on relations with Europe and developing countries and to take more leadership on sustainable development and climate change. He has also said that he will focus on security and prosperity, which means more international trade. Our common interest with Uruguay in sustainable projects and trade development will not change. It will increase.

The UK has supported Uruguay in a number of initiatives related to sustainable development, what are the themes they have been most engaged with during this period?
We were able to provide some support to the Minister of Economy and Finance (Azucena Arbeleche) in issuing bonds tied to sustainable achievements. We advised on the issuance of the bonds and before they were listed on the London Stock Exchange. For me, this instrument is completely cutting edge in terms of climate change objectives and rewarding compliance with environmental goals. It was very successful. Arbeleche successfully secured Uruguay’s first loan World Bank The conditions associated with green targets can be a complete game changer.

During your tenure, the UK was involved in some joint venture initiatives, what did they do specifically?
The collaboration with UTE in the field of transport electrification is very close. We work hand in hand with them to advise on setting up an effective charging network. We also push hard on the issue of green hydrogen, an industry that I can see growing a lot, just like the services sector.

What are they doing about security in Uruguay?
The situation in Uruguay is stable, but there is still much to do in terms of prevention. These days our new Defense Attaché arrived in the country, who will be responsible only for Uruguay. In the past, this position was located in Buenos Aires and performed functions for Argentina, Paraguay and Uruguay. Now it is only for Uruguay. We have collaborated with the country on security issues, in particular on the project “Identification of cybersecurity risks and how to mitigate them” developed by Uruguayan actors, for whom we provide advice. The Armed Forces, BCU, Customs and other actors are involved.

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Does the program cover risks associated with drug trafficking?
In March this year, we started working with the Air Force, Police, Ministry of Defence and Home Office on a project on border management in northern Uruguay, which involved UK mapping and satellite imagery technology. The idea is to create an algorithm that can identify from imagery weak points along the border, including landing points for illegal small aircraft. This can be done not only at land borders, but also at sea. This will be a Uruguay specific algorithm and will be ready by October next year.

As announced, the UK is moving forward with the extraction of around 500 million barrels of oil in the South Atlantic. How is your project progressing?
The Falkland Islands are a British Overseas Territory, but they also have a great deal of autonomy. They have their own parliament, are 100% economically independent, and make their own decisions.

But in this case, the UK has already approved the island for this type of mining. Does that mean it will be done?
The position of the previous UK government (the Conservatives) was to try to avoid developing these types of resources if it was not absolutely necessary. We will see what happens with the new UK government, although, as I just said, it has no power to decide the islanders’ issues. However, it may be different now whether to support the initiative. As far as I know, the islanders themselves are negotiating with international companies (not just British companies) to see if they can do something that works for them. Personally, my preference is that we all continue to develop more wind and solar farm projects, considering climate change. I also want to comment that the UK had some restrictions on new onshore wind farms, which the new government lifted two or three days after coming to power. This is a very clear example of its intention to “run” towards renewable energy.

As your mission comes to an end, what are the unanswered questions?
There always is. We have been successful in trade, but there is still much to do. Young Uruguayans can travel, study or work in the UK, and young British people can come to Uruguay. So far this year, the UK has issued 57 visas to young Uruguayans thanks to this new agreement. This will continue to grow. We must continue to develop cooperation, especially commercial cooperation.