Uruguay's congress has approved a bill which will allow civil unions for both gay and unmarried couples.
This follows several other South and Central American governments approving rights for gay couples, including Mexico in March 2007 and Columbia in February 2007.
The move will no doubt be taken as a signal among the gay community and tourists that attitudes towards homosexuality are changing in the region.
Antonio Medina and Jorge Cerpa were among the first of Mexico's same-sex couples to get hitched earlier this year, with Mr Medina explaining that "with this law, a history of exclusion comes to an end".
Brazilian Green Party member, Fernando Gabeira, explained that the approval in Uruguay may pave the way for a similar introduction in Brazil, but that it was "just a supposition for the moment," reports China View.
According to Uruguay's bill, which is expected to be signed by president Tabare Vazquez, those who have lived together for more than five years will have the same rights as married couples.
Uruguay is the first Roman Catholic-dominated country in Latin America whose parliament has approved a nationwide bill for civil rights.
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