MOSCOW, October 3 (RIA Novosti) - Foreign states are now prohibited to acquire land in Uruguay, following the enactment of a law that seeks to defend national sovereignty, EFE reported.
The law prohibits ownership of agricultural land for purposes of exploitation throughout the country to foreign companies located in Uruguay or directly or indirectly belonging to a foreign state, the agency said on Thursday.
The regulation also states the general interest in preservation and defense of the full sovereignty of the Uruguayan state in natural resources in general and in land in particular.
According to the Deputy Minister of Agriculture Enzo Benech, "there is a lot of land held by foreigners ... it was always a very contentious issue but difficult to legislate."
He also said that many countries are interested in the Uruguayan land due to territorial size of the country and its international standing as food producer in an increasingly demanding world.
Agriculture in Uruguay contributes approximately 10 percent to the country's GDP. It is also the main foreign exchange earner. The country is a member of Cairns group, a 19-member interest group of agricultural exporting countries as Canada, Argentina, Brazil and Australia.
