Globalization has brought about a rapidexpansion of international trade and a dramatic change intrade structure. The liberalization of trade in goods andservices, containerization, new integrated transportnetworks, advances in information communication technologyand modern business logistics have created unprecedentedbusiness opportunities for the trade and transportindustries, as firms increasingly rely on global supplychains for production and distribution. In response to thegovernment's request, this study assessesUruguay's potential as a logistics hub and as aregional distribution center. The competitiveness ofUruguay's logistics system is assessed from aninternational perspective and policy recommendations towardsfurther efficiency gains are provided. The study focuses onpolicies related to enhancing domestic and regional tradefacilitation and assesses the wider economic impact of suchreforms on logistics costs and trade.