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Relations between the United States and the Uruguay traditionally have been positive, based on a common outlook and emphasis on democratic ideals.
In historical perspective, starting in the 1890s Uruguay took the lead in reaching out to the U.S. in order to counter the heavy British business presence. The U.S. responded in friendly fashion. Knarr argues:
The United States did not need to coerce Uruguay economically, politically, or militarily to achieve its goals; Uruguay was a friendly and stable nation that the United States could use as an economic and political gateway into the Southern Cone.[1]
The US supported the civic-military dictatorship in Uruguay from 1973 to 1985.
In 2002, The United States and Uruguay created a Joint Commission on Trade and Investment (JCTI) to exchange ideas on a variety of economic topics. In March 2003, the JCTI identified six areas of concentration until the eventual signing of the Free Trade Area of the Americas (FTAA): customs issues, intellectual property protection, investment, labor, environment, and trade in goods. In late 2004, the United States and Uruguay signed an Open Skies Agreement, which was ratified in May 2006. In November 2005, they signed a Bilateral Investment Treaty (BIT), which entered into force on November 1, 2006. A Trade and Investment Framework Agreement (TIFA) was signed in January 2007. More than 80 U.S.-owned companies operate in Uruguay, and many more market U.S. goods and services.
Uruguay cooperates with the U.S. on law enforcement matters such as regional efforts to fight drug trafficking and terrorism. It has also been very active in human rights issues.
From 1999 through early 2003, Uruguayan citizens were exempted from visas when entering the United States under the Visa Waiver Program. This exemption was withdrawn on April 16, 2003, based on the high overstay rates for Uruguayans and worldwide national security concerns.
Under Tabaré Vázquez, President of Uruguay from 2005 to 2010 and 2015 to 2020, Uruguay has taken positions on a number of issues which are very markedly different from those of the United States. However, under his right-wing successor, president Luis Lacalle Pou, since 2020, United States-Uruguay relations have again improved and strengthened.[2] Nevertheless, Vázquez sought the help of President George W Bush in the face of the crisis with Argentina around the Uruguay River pulp mill dispute.[3]
According to the 2012 U.S. Global Leadership Report, 40% of Uruguayans approve of U.S. leadership, with 22% disapproving and 38% uncertain.[4]