Relations between the United States and the Uruguay traditionally have been positive, based on a common outlook and emphasis on democratic ideals.
History
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]
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.
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 This exemption was withdrawn on April 16, 2003, based on the high overstay rates for Uruguayans and worldwide national security concerns.
Knarr, James C. Uruguay and the United States, 1903-1929: Diplomacy in the Progressive Era. (Kent State University Press; 2012) online review
Spear, Jane E. "Uruguayan Americans." Gale Encyclopedia of Multicultural America, edited by Thomas Riggs, (3rd ed., vol. 4, Gale, 2014), pp. 475–483. online
Whitaker, Arthur P. The United States and the southern cone: Argentina, Chile, and Uruguay (1976) online