The forestry law of 1987 has been extremely successful with the increase of both timberland and autochthonous forests. Uruguay is the only Latin-American country in which the autochthonous forestation has increased (from 670.000 to 753.000 hectares). At the same time timberland boomed from 26.000 to 970.000 hectares currently, providing employment to 22.000 persons (which used to be 4.000). The value of exports increased from 12 M USD to 1.200 M USD. The challenge of commercializing timberland and simultaneously maintaining biodiversity has so far been very successful in Uruguay. The combination of sound public policies, fertile soils and excellent climatic conditions are the reasons behind this success.