Title
PARTNERSHIP AGREEMENT BETWEEN THE EUROPEAN UNION AND ITS MEMBER STATES, OF THE ONE PART, AND THE COMMON MARKET OF THE SOUTH, THE ARGENTINE REPUBLIC, THE FEDERATIVE REPUBLIC OF BRAZIL, THE REPUBLIC OF PARAGUAY AND THE ORIENTAL REPUBLIC OF URUGUAY, OF THE OTHER PART
Preamble
THE KINGDOM OF BELGIUM,
THE REPUBLIC OF BULGARIA,
THE CZECH REPUBLIC,
THE KINGDOM OF DENMARK,
THE FEDERAL REPUBLIC OF GERMANY,
THE REPUBLIC OF ESTONIA,
IRELAND,
THE HELLENIC REPUBLIC,
THE KINGDOM OF SPAIN,
THE FRENCH REPUBLIC,
THE REPUBLIC OF CROATIA,
THE ITALIAN REPUBLIC,
THE REPUBLIC OF CYPRUS,
THE REPUBLIC OF LATVIA,
THE REPUBLIC OF LITHUANIA,
THE GRAND DUCHY OF LUXEMBOURG,
HUNGARY,
THE REPUBLIC OF MALTA,
THE KINGDOM OF THE NETHERLANDS,
THE REPUBLIC OF AUSTRIA,
THE REPUBLIC OF POLAND,
THE PORTUGUESE REPUBLIC,
ROMANIA,
THE REPUBLIC OF SLOVENIA,
THE SLOVAK REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
Contracting Parties to the Treaty on European Union and the Treaty on the Functioning of the European Union, hereinafter referred to as "the Member States",
and
THE EUROPEAN UNION, hereinafter referred to as "the Union" or "the EU",
of the one part,
AND
THE ARGENTINE REPUBLIC,
THE FEDERATIVE REPUBLIC OF BRAZIL,
THE REPUBLIC OF PARAGUAY,
THE ORIENTAL REPUBLIC OF URUGUAY,
State Parties to the Common Market of the South signatories of this Agreement, hereinafter referred to as "Signatory MERCOSUR States",
and
THE COMMON MARKET OF THE SOUTH, hereinafter referred to as "MERCOSUR",
of the other part,
hereinafter jointly referred to as "the Parties",
for the purposes of this Agreement MERCOSUR refers to the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Oriental Republic of Uruguay,
CONSIDERING the deep historical, cultural, political and economic ties that unite their peoples and inspired by their common values;
CONSIDERING that MERCOSUR and the European Union wish to reinforce those ties and intensify their relations on the basis of dialogue and cooperation, with a view to establishing a strategic partnership;
RECALLING the Parties' firm commitment to the principles of international law, to the Charter of the United Nations ("UN"), to democracy, the rule of law and human rights and to fundamental freedoms;
CONSIDERING that respect for democratic principles and human rights as laid down in the Universal Declaration of Human Rights and other relevant international human rights instruments, for international humanitarian law, and for the principles of the rule of law underpins the internal and international policies of the Parties and constitutes an essential element of this Agreement;
REAFFIRMING their support for democratic institutions and values, which are indispensable for the development of their respective integration processes and their mutual relationship;
MOTIVATED to contribute to the reinforcement of multilateralism, to international peace and security and to the promotion of a fair and democratic international order;
RECOGNISING the important contribution to disarmament and non-proliferation of the proclamation of Latin America and the Caribbean as a zone of peace, free of nuclear weapons, in accordance to the Treaty of Tlatelolco and its additional protocols, and reaffirming their commitments to promote nuclear disarmament;
REAFFIRMING the values, purposes and principles of the Charter of the United Nations, signed on 26 June 1945, in San Francisco, at the conclusion of the United Nations Conference on International Organization ("the UN Charter");
REAFFIRMING the shared aim of promoting economic and social development which underpins this Agreement, and considering that market liberalisation should be complemented by the promotion of social development and the reduction of inequalities through adequate access to employment, education and health, and the elimination of extreme poverty;
REAFFIRMING their commitment to strengthen and develop the multilateral trading system through the application of transparent, equitable and non-discriminatory rules, with a view to the promotion of increasingly dynamic and open international trade which ensures the increased participation of developing countries in international trade, investment and technology flows;
REAFFIRMING their commitment to promote international trade in such a way as to contribute to sustainable development in its economic, social and environment dimensions, involving all relevant stakeholders, including civil society and the private sector, and to implement this agreement in a manner consistent with their respective laws and international commitments on labour and environmental matters;
BUILDING UPON the rights and obligations assumed by the Parties as members of the World Trade Organization ("WTO");
DESIRING to improve the competitiveness of their enterprises, by providing them with a predictable legal framework for their trade and investment relations, with special attention to micro, small and medium enterprises;
REAFFIRMING the need to promote the respect of internationally recognised guidelines and principles of corporate social responsibility and responsible business conduct, including the Organisation for Economic Co-operation and Development ("OECD") Guidelines for Multinational Enterprises, amongst enterprises operating in their territories;
CONSIDERING that the strengthening of the multilateral trading system can be achieved through multilateral trade negotiations which aim at ambitious, comprehensive and balanced results, the promotion of economic development and the improvement of human welfare;
TAKING INTO ACCOUNT that the Parties consider regional integration and open regionalism to be important instruments for economic and social development which enhance the international integration of their economies, promote closer ties between their peoples and contribute to international stability;
WELCOMING the adoption of the 2030 Agenda for Sustainable Development document "Transforming our World: the 2030 Agenda for Sustainable Development" adopted by the United Nations General Assembly on 25 September 2015 (hereinafter referred to as "the 2030 Agenda") and the Paris Agreement adopted under the United Nations Framework Convention on Climate Change, done at Paris on 12 December 2015 (hereinafter referred to as the "Paris Agreement") and calling for their swift implementation;
CONSCIOUS of the need to promote the growth and development of the Parties and to reduce existing disparities, giving special attention to the needs and difficulties faced by Paraguay as a landlocked country;
RECOGNISING the long history of migration between European Union and MERCOSUR countries, and its positive contribution to their relationship as well as to their social, cultural and economic development;
BEARING IN MIND the internationally agreed provisions on special and differential treatment for developing countries;
RECOGNISING that this Agreement preserves the right of the Parties to regulate within their territories in conformity with their internal laws and regulations as well as the Parties' flexibility to achieve legitimate policy objectives, such as those concerning public health, safety, the environment, education, public morals and the promotion and protection of cultural diversity;
REAFFIRMING the Parties' right to exploit their natural resources in accordance with their own environmental policies, and sustainable development goals;
BEARING IN MIND the Interregional Framework Cooperation Agreement between the European Community and its Member States, of the one part, and the Southern Common Market and its Party States, of the other part, signed in Madrid on 15 December 1995, as well as its annexed Joint Declaration on political dialogue and the purpose of establishing a partnership based on reinforced political dialogue, trade liberalisation, the promotion of investment and the deepening of cooperation;
CONSIDERING that cooperation between the European Union and MERCOSUR is implemented through a variety of instruments;
RECALLING the decision of the meeting of Heads of State and Government from MERCOSUR and the European Union in June 1999 in Rio de Janeiro to attach renewed priority to their relations in the political, economic, trade, cultural and cooperation fields, aiming at building a deeper and fuller partnership between both regions, which should be based on democracy, sustainable development and economic growth with social justice;
REAFFIRMING their commitment to further strengthen, liberalise and diversify their trade and investment relations;
LOOKING FORWARD, in this context, to increasing their trade and investment relations through the establishment of a free trade area in conformity with General Agreement on Tariffs and Trade 1994 and WTO rules;
WILLING to strengthen cooperation between the Parties, on the basis of an open and permanent dialogue in all areas of mutual interest, in particular in the political, economic, commercial, financial, legal and judicial, freedom and security, scientific and technological, social and cultural fields;
CONSCIOUS of the importance of involving civil society in the context of the partnership between the Parties;
CONSCIOUS, that, in order to intensify their relationship in all areas of common interest, it is essential to bring the existing political dialogue between the Parties to a new stage;
CONSIDERING the specific regional integration experiences of the Parties, from which they can mutually benefit according to their own needs;
REAFFIRMING the importance of their shared principles and values in the field of social development;
CONSIDERING the importance of cultural dialogue as a means to achieve better mutual understanding between the Parties, to promote cultural diversity and to foster cultural links between their citizens;
NOTING that, in the event that the Parties decide, within the framework of this Agreement, to enter into specific agreements in the area of freedom, security and justice which may be concluded by the European Union pursuant to Title V of Part Three of the Treaty on the Functioning of the European Union, the provisions of such future agreements would not bind Ireland unless the European Union, simultaneously with Ireland as regards its respective previous bilateral relations, notifies MERCOSUR that Ireland has become bound by such agreements as part of the European Union in accordance with Protocol No 21 on the position of Ireland in respect of the area of freedom, security and justice, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union; noting that any subsequent internal measures of the European Union which may be adopted pursuant to Title V of Part three of the Treaty on the Functioning of the European Union to implement this Agreement would not bind Ireland, unless it has notified its wish to take part in such measures or accept them in accordance with Protocol No 21; also noting that such future agreements or subsequent internal measures of the European Union would fall within Protocol No 22 on the position of Denmark, annexed to the Treaty on European Union and the Treaty on the Functioning of the European Union;
RECOGNISING the differences in economic and social development between and within the Parties;
HAVE AGREED AS FOLLOWS:
Body
PART I
GENERAL PRINCIPLES AND INSTITUTIONAL FRAMEWORK
CHAPTER 1
INITIAL PROVISIONS
ARTICLE 1.1
General definitions
For the purposes of this Agreement:
(a) "1995 Interregional Framework Cooperation Agreement" means the Interregional Framework Cooperation Agreement between the European Community and its Member States, of the one part, and the Southern Common Market and its Party States, of the other part, signed in Madrid on 15 December 1995;
(b) "Interim Trade Agreement" means the Interim Agreement on Trade between the European Union, of the one part, and the Common Market of the South, the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Oriental Republic of Uruguay, of the other part, to be concluded;
(c) "SMEs" means small and medium-sized enterprises, which includes micro, small and medium-sized enterprises and entrepreneurs;
(d) "third country" means a country or territory outside the territorial scope of application of this Agreement;
(e) "UNCLOS" means the United Nations Convention on the Law of the Sea, done at Montego Bay on 10 December 1982; and
(f) "WTO" means the World Trade Organization.
ARTICLE 1.2
General principles
1. Respect for democratic principles, human rights and fundamental freedoms as laid down in the Universal Declaration of Human Rights and other international human rights instruments to which they are party, as well as for the principles of the rule of law underpins the internal and international policies of the Parties and constitutes an essential element of this Agreement.
2. The Parties confirm their strong commitment to the shared principles and objectives as expressed in the UN Charter. The promotion of sustainable economic and social development, as well as the equitable distribution of the benefits of this Agreement, are among the guiding principles for the implementation of this Agreement.
3. The Parties reaffirm their attachment to the principles of good governance, including principles such as governmental transparency and the fight against corruption, ethical and accountable government, independence of the judiciary and the protection of the rights of minorities.
ARTICLE 1.3
Scope
This Agreement establishes a partnership between the Parties based on shared values, including reciprocity, and common interest. It shall strengthen the partnership between the EU Party and the MERCOSUR Party and lead to a strategic relationship in the political, cooperation and trade fields, as well as other areas to be agreed upon.
ARTICLE 1.4
General objectives
This Agreement provides for:
(a) an institutional framework which forms the basis of the partnership;
(b) the enhancement of political dialogue through new institutional mechanisms;
(c) cooperation between the Parties aiming at contributing to the achievement of the general objectives of this Agreement by taking advantage of existing or future innovative cooperation instruments that are capable of providing added value to the relationship; and
(d) the expansion and diversification of the Parties' biregional trade relations and the specific objectives and provisions set out in Part III of this Agreement, which should contribute to higher economic growth, the gradual improvement of the quality of life in both regions and to the better integration of both regions into the world economy.
CHAPTER 2
INSTITUTIONAL FRAMEWORK
ARTICLE 2.1
Summit
1. The highest level of political and policy dialogue between the EU Party and the MERCOSUR Party shall be at summit level. Summits shall be held as necessary and as mutually agreed.
2. The Summits shall provide the opportunity to evaluate progress in the implementation of this Agreement, set out the objectives for its future evolution and discuss other topics of common interest.
ARTICLE 2.2
Joint Council
1. A Joint Council is hereby established to oversee the fulfilment of the objectives of this Agreement and supervise its implementation. The Joint Council shall address the matters covered by this Agreement and shall examine any major issue arising within the framework of this Agreement, as well as interregional, multilateral or international questions of common interest.
2. The Joint Council shall meet at ministerial level at regular intervals, at least on a biennial basis or on an ad-hoc basis as mutually agreed. It may also meet via teleconference, video-conference or through other means, as mutually agreed by the Parties.
3. The Joint Council shall be composed of representatives of each of the Parties at ministerial level in accordance with the Parties' respective internal arrangements and taking into consideration the specific issues to be addressed. The Joint Council shall meet in all necessary configurations, by mutual agreement.
4. When the Joint Council addresses any matter related to Part III of this Agreement, it shall be composed of representatives of each of the Parties with responsibility for trade-related matters (hereinafter referred to as "Joint Council in trade configuration").
5. The Joint Council shall adopt its own rules of procedure and the rules of procedure of the Joint Committee.
6. The Joint Council shall be co-chaired by one representative of the EU Party and one representative of the MERCOSUR Party in accordance with the provisions laid down in its rules of procedure and taking into consideration the specific issues to be addressed at any given session.
7. The Joint Council shall examine proposals and recommendations and have the power to take decisions, including on the interpretation of provisions, and make appropriate recommendations as provided for in this Agreement. Decisions and recommendations shall be adopted by agreement of the Parties and in accordance with the rules of procedure of the Joint Council. Decisions shall be binding on the Parties, which shall take all necessary measures, in accordance with their internal procedures, to implement them. Within the scope of Part II of this Agreement, the Joint Council shall also have the power to take decisions and make recommendations as mutually agreed by the Parties.
8. The Joint Council may delegate to the Joint Committee any of its functions, including the power to take binding decisions, in accordance with the Joint Council's rules of procedure.
ARTICLE 2.3
Joint Committee
1. A Joint Committee is hereby established.
2. The Joint Committee shall assist the Joint Council in the performance of its duties.
3. The Joint Committee shall prepare the meetings of the Joint Council and shall be responsible for the correct implementation of this Agreement.
4. The Joint Committee shall be composed of representatives of each of the Parties at senior official level or as otherwise designated by the Parties in accordance with their internal arrangements and taking into consideration the specific issues to be addressed at any given session.
5. When the Joint Committee addresses any matter related to Part III of this Agreement it shall be composed of representatives of each of the Parties with responsibility for trade-related matters (hereinafter referred to as "Joint Committee in trade configuration").
6. When the Joint Committee addresses any matter related to Part II of this Agreement it shall be composed of representatives of each of the Parties with responsibility for those matters, in accordance with the Parties' respective internal arrangements.
7. The Joint Committee shall have the power to take decisions as provided for in this Agreement or where such power has been delegated to it by the Joint Council. The Joint Committee shall adopt decisions by agreement of the Parties. The decisions shall be binding on the Parties, which shall take the measures necessary for the implementation of those decisions. When exercising delegated powers, the Joint Committee shall take its decisions in accordance with the rules of procedure of the Joint Council.
8. Without prejudice to the specific provisions in Chapter 29, any Party may refer any issue concerning the application or interpretation of the Agreement to the Joint Committee.
9. The Joint Committee shall be co-chaired by one representative of the MERCOSUR Party and one representative of the EU Party, taking into consideration the specific issues to be addressed in any given session.
10. The Joint Committee shall generally meet once a year to review the implementation of this Agreement, on a date and with an agenda agreed in advance by the Parties, alternately in Brussels and in a signatory MERCOSUR State. Additional meetings may also be convened by mutual agreement, at the request of either the EU Party or MERCOSUR. It may also meet via teleconference, video-conference or through other means, as mutually agreed by the Parties.
ARTICLE 2.4
Subcommittees and other bodies
1. The Joint Committee may decide to set up subcommittees or other bodies to assist in the exercise of its functions and to address specific tasks or subjects. It may decide to change the tasks assigned to, or to dissolve, any subcommittees or other structure set up for these purposes.
2. The Joint Committee shall adopt rules of procedure which determine the composition, duties and functioning of the subcommittees and other bodies.
3. The creation or existence of any subcommittees shall not prevent the Parties from bringing any matter directly to the Joint Committee.
4. Except as otherwise provided for in this Agreement, subcommittees and other bodies established by this Agreement or by the Joint Committee shall report on their activities to the Joint Committee regularly or when requested.
5. The Subcommittees addressing trade and trade-related matters, which are established pursuant to Article 9.9(4) shall be governed by Article 9.9 and shall report to the Joint Committee in trade configuration.
6. A Subcommittee on International Cooperation and Development is hereby established to promote, coordinate and supervise the implementation of cooperation activities in the areas referred to in Part II of this Agreement, as well as the follow-up, monitoring and evaluation of those cooperation initiatives. It shall assist the Joint Committee in the performance of its functions regarding these matters.
ARTICLE 2.5
Joint Parliamentary Committee
1. A Joint Parliamentary Committee is hereby established to foster closer relations and ensure regular dialogue between the European Parliament and the Parliament of MERCOSUR.
2. The Joint Parliamentary Committee shall consist of members of the European Parliament, on the one hand, and of members of the Parliament of MERCOSUR on the other. It shall meet at intervals which it shall itself determine.