On October 22, 2014, the Third Specialized Seminar on International Trade was held in the auditorium of the School of Business and Social Sciences. The speakers were Isidoro Hodara, Juan Labraga, Juan José Riva, Akio Yoshimoto, and Andrea Lacuesta.
The event was organized by the Department of International Studies at Universidad ORT Uruguay in Universidad ORT Uruguay.
A more efficient system
First, Mr. Labraga presented Uruguay’s newly created Investment and Foreign Trade Information System, known as Siicex.
The focus was on updating existing tools and exploring new proposals. Siicex was established in response to the need to address foreign trade from a systemic perspective.
Due to the nature of their functions, various government agencies are typically involved specifically in matters related to foreign trade. Their overall objectives are to facilitate, improve, and document foreign trade and investment processes.
SIICEX’s goal is to implement an integrated online information system for foreign trade and investment, which did not previously exist in Uruguay. The purpose of the website, he added, is to provide a platform where all institutions—public or private—that produce reports, guides, and other materials can publish them there.
Labraga believes that the greatest value added by the content lies in the export process.has very interestinghas . They help us think of exporting as a process: from the initial preparations for export through to the actual execution of the export. They tell us what needs to be done at each step,” he said.
“I believe this is a tool that is beginning to give foreign trade the role it deserves in Uruguay. As always, the tools lag behind reality,” he said, adding, “Foreign trade is essential for the country.”
Global Competitiveness Index: Survey
Economist Isidoro Hodara discussed Uruguay’s ranking in the World Economic Forum’s Global Competitiveness Index. This data serves to give an idea of where each country stands on some of the factors that contribute to competitiveness.
“I think that if you ask, ‘What is competitiveness?’ in Uruguay, most people say: ‘What was the closing rate of the dollar? How much did wages rise?’ And based on that, they answer whether we are more or less competitive,” said Hodara.
He went on to explain that competitiveness is a much broader concept, one that is more enduring over time and less subject to short-term fluctuations. He added: “The countries at the top of the rankings are always at the top, and those that aren’t doing so well are always lagging behind.”
This index is compiled annually using the same methodology, covering 144 countries.
According to Hodara, greater competitiveness “must lead to higher productivity and prosperity. In Uruguay, we’re frankly doing poorly, for example, in terms of market size. We’re not doing badly in technology. But when it comes to the efficiency of the labor market, we’re doing very poorly,” he added. “We have to improve, but we know where we stand.”
Theses That Grow
During this session of the seminar, two papers were presented, both of which were based on revised versions of theses. The first presenter was Juan José Riva, who holds a bachelor’s degree in International Studies from the university. Riva discussed competitiveness in Uruguayan companies and analyzed factors ranging from exchange rates to the structure of government agencies.
He wrote his thesis with a colleague, Marcelo Gil. They examined Uruguay’s export promotion mechanisms and took an interest in the work of Uruguay XXI, as well as the government agencies and public and private entities involved in export promotion.
They defined competitiveness as the extent to which a nation can, under conditions of free trade and open markets, produce goods and services that stand up to the test of international markets.
“That test is the stepping stone that will enable the Uruguayan company to break into the international market. We wanted to see what the government is doing to help Uruguayan companies pass the test of international markets,” Riva explained.
They launched the project in 2012. The following year, they were awarded the National Academy of Economics Prize.
Andrea Lacuesta and Akio Yoshimoto, both graduates, wrote the thesis together with Santiago Cortés, who was not present at the seminar. They examined the country’s service sector and its current state.
“Since 1980, it has experienced spectacular growth and expanded worldwide. This has been driven by new information technologies, which have enabled companies to meet new demands and tap into new markets,” Yoshimoto explained.
“Who are the main players in this new trade? Businesses,” Lacuesta added, noting that Uruguay is “a country geared toward exporting global services.”