ARTICLE 1
Objective
The objective of this Annex is to facilitate the finding of a mutually agreed solution through a comprehensive and expeditious procedure with the assistance of a mediator.
ARTICLE 2
Provision of information
1. At the request of a Party, the other Party shall promptly provide information and respond to questions pertaining to any existing or proposed measure that materially affects the operation of Part III of this Agreement.
2. Information provided under this Article is without prejudice as to whether the measure is consistent with Part III of this Agreement.
ARTICLE 3
Initiation of the procedure
1. A Party may at any time request in writing to enter into a mediation procedure with respect to any measure by a Party adversely affecting trade between the Parties. The request shall be sufficiently detailed to present the concerns of the requesting party clearly and shall:
(a) identify the specific measure at issue;
(b) provide a statement of the alleged adverse effects that the requesting party believes the measure has, or will have, on trade between the parties; and
(c) explain how the requesting party considers that those effects are linked to the measure.
2. The mediation procedure may only be initiated by mutual agreement of the parties. If a request is made pursuant to paragraph 1, the party to which the request is made shall give sympathetic consideration to the request and deliver its written acceptance or rejection to the requesting party no later than 10 (ten) days after its receipt. Otherwise, the request shall be regarded as rejected.
3. Consultations, including under Chapter 29, are not required before initiating the mediation procedure. A party should in principle, nevertheless, avail itself of the other relevant cooperation or consultation provisions provided for in Part III of this Agreement before initiating the mediation procedure.
ARTICLE 4
Selection of the mediator
1. The parties shall endeavour to agree on a mediator no later than 15 (fifteen) days after the delivery of the acceptance referred to in Article 3(2) of this Annex.
2. A mediator shall not be a national of either party, unless the parties agree otherwise.
3. If the parties are unable to agree on the mediator within the time frame laid down in paragraph 1, either party may request the co-chair of the Joint Committee in trade configuration from the requesting party, or the co-chair's designee, to select the mediator by lot from the sub-list established under Article 29.8.(3)(c). Representatives of both parties shall be invited, with sufficient advance notice, to be present when the lots are drawn. In any event, the drawing of lots shall be carried out with the party or parties that are present.
4. The co-chair of the Joint Committee in trade configuration from the requesting party, or the co-chair's designee, shall select the mediator within 5 (five) days of the request made pursuant to Article 3(2) of this Annex.
5. Should the sub-list referred to in Article 29.8(3)(c) not be established at the time a request is made pursuant to paragraph 3, the mediator shall be drawn by lot from the individuals who have been formally proposed by one or both parties.
6. The mediator shall, in an impartial and transparent manner, assist the parties in bringing clarity to the measure and its possible trade effects, and in reaching a mutually agreed solution.
7. Annex 29-B applies to mediators, mutatis mutandis.
8. Rules 2 to 9 and 56 to 59 of the Rules of Procedure for Arbitration set out in Annex 29-A apply, mutatis mutandis.
ARTICLE 5
Rules of the mediation procedure
1. No later than 10 (ten) days after the appointment of the mediator, the party which invoked the mediation procedure shall deliver a detailed, written description of its concerns to the mediator and to the other party, in particular of the operation of the measure at issue and its trade effects. No later than 20 (twenty) days after the receipt of this description, the other party may deliver written comments on the description. Either party may include any information that it deems relevant in its description or comments.
2. The mediator may decide on the most appropriate way of bringing clarity to the measure concerned and its possible trade effects. In particular, the mediator may organise meetings between the parties, consult them jointly or individually, and provide any additional support requested by the parties. The mediator shall seek the assistance of, or consult with, relevant experts and stakeholders upon agreement of the parties.
3. The mediator shall not advise or comment on the consistency of the measure at issue with Part III of this Agreement. The mediator may offer advice and propose a solution for the consideration of the parties. The parties may accept or reject the proposed solution, or agree on a different solution.
4. The mediation procedure shall take place in the territory of the party to which the request was addressed, or by mutual agreement of the parties, in any other location or by any other means.
5. The parties shall endeavour to reach a mutually agreed solution no later than 60 (sixty) days after the appointment of the mediator. Pending a final agreement, the parties may consider possible interim solutions, particularly if the measure relates to perishable goods or other goods or services that rapidly lose their quality.
6. The solution may be adopted by means of a decision of the Joint Committee in trade configuration. The conclusion of the mutually agreed solution between the parties may be subject to the completion of any necessary internal procedures. Mutually agreed solutions shall be made publicly available without containing information that a party has designated as confidential.
7. On request of the parties, the mediator shall deliver a draft factual report to the parties, providing a brief summary of the measure at issue, the procedures followed and any mutually agreed solution reached, including possible interim solutions. The mediator shall allow the parties 15 (fifteen) days to comment on the draft report. After considering the comments of the parties received within that period, the mediator shall, within 15(fifteen) days, deliver a final factual report to the parties. The factual report shall not include any interpretation of Part III of this Agreement.
8. The procedure shall be terminated:
(a) by the adoption of a mutually agreed solution by the parties, on the date of the adoption thereof;
(b) by mutual agreement of the parties at any stage of the procedure, on the date of that agreement;
(c) by a written declaration of the mediator, after consultation with the parties, that further efforts at mediation would be to no avail, on the date of that declaration; or
(d) by a written declaration of a party after exploring any possible mutually agreed solutions under the mediation procedure and after having considered any advice and proposed solutions by the mediator, on the date of that declaration.
ARTICLE 6
Implementation of a mutually agreed solution
1. If the parties reached agreement on a solution, each party shall take the measures it considers necessary to implement the mutually agreed solution within the agreed timeframe.
2. The implementing party shall notify the other party, in writing, of any steps or measures taken to implement the mutually agreed solution.
ARTICLE 7
Confidentiality
Unless the parties agree otherwise, and without prejudice to Article 5(6), all steps of the procedure, including any advice or proposed solution, are confidential. However, any party may disclose to the public the fact that mediation is taking place.
ARTICLE 8
Relationship to dispute settlement procedures
1. The mediation procedure is without prejudice to the Parties' rights and obligations under dispute settlement procedures of Part III of this Agreement, or any other agreement.
2. A party shall not rely on, or introduce as evidence, in other dispute settlement procedures of Part III of this Agreement, or any other agreement, nor shall a panel take into consideration:
(a) positions taken by the other party in the course of the mediation procedure or information gathered under Article 5;
(b) the fact that the other party has indicated its willingness to accept a solution to the measure subject to mediation; or
(c) advice given or proposals made by the mediator.
3. A mediator shall not serve as a member of a panel in a dispute settlement proceeding under Part III of this Agreement or under the WTO Agreement, or any other agreement to which the Parties are party, involving the same matter for which he or she has been a mediator.
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(1) In the territories of Brazil, Paraguay and Uruguay, protection of the geographical indication "Českobudějovické pivo" is only sought in the Czech language.
In the territory of Uruguay the geographical indication "Českobudějovické pivo" shall be displayed non-prominently on the back label of the beer containers.
In the territory of Argentina, protection of the geographical indication "Českobudějovické pivo" is only sought in the Czech language, subject to the rights of trademark holders and provided that the geographical indication "Českobudějovické pivo" is displayed non‑prominently on the back label of the beer containers.(2) In the territory of Brazil, the protection of the geographical indication "Münchener Bier" shall not prevent the continued and similar use of the term "Münchener Bier" by any persons, including their successors and assignees, for a maximum period of 5 (five) years from the date of entry into force of this Agreement, provided that by that date such persons have used that term in a continuous manner with regard to the same or similar goods in the territory of Brazil and that the term "Münchener Bier" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.
The protection of the geographical indication "Münchener" in the territory of Paraguay is only sought in the German language.(3) Article 21.35(8) applies.(4) The protection of the geographical indication "Φέτα (Feta)" shall not prevent the continued and similar use of the term "Feta" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons have used that term in a continuous manner with regard to the same or similar goods in the territories of Argentina, Brazil and Uruguay and that such use of the term "Feta" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(5) The protection of the geographical indication "Jijona" shall not prevent the continued and similar use of the term "Turrón de Jijona" by any persons, including their successors and assignees, for a maximum period of 5 (five) years from the date of entry into force of this Agreement, provided that by that date such persons have used that term in a continuous manner with regard to the same or similar goods in the territories of Argentina and Paraguay and that such use of the term "Turrón de Jijona" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(6) Article 21.35(8) applies.(7) The protection of the geographical indication "Turrón de Alicante" shall not prevent the continued and similar use of the term "Turrón de almendras tipo Alicante" by any persons, including their successors and assignees, for a maximum period of 5 (five) years from the date of entry into force of this Agreement, provided that by that date such persons have used that term in a continuous manner with regard to the same or similar goods in the territories of Argentina and Paraguay and that such use of the term "Turrón de almendras tipo Alicante" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(8) The protection of the geographical indication "Jerez-Xérès-Sherry" shall not prevent the continued and similar use of the term "Jerez" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons have used that term in a continuous manner with regard to the same or similar goods in the territory of Argentina and that such use of the term "Jerez" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(9) Protection is not sought in the territory of Uruguay.(10) Protection is not sought in the territory of Argentina.(11) Protection is not sought in the territory of Argentina.(12) The protection of the geographical indication "Comté" shall not prevent the continued and similar use of the term "Comté" by any persons, including their successors and assignees, for a maximum period of 5 (five) years from the date of entry into force of this Agreement, provided that by that date such persons have used that term in a continuous manner with regard to the same or similar goods in the territories of Brazil and Uruguay and that such use of the term "Comté" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(13) Article 21.35(8) applies.(14) The protection of the geographical indication "Pont-l'Évêque" shall not prevent the continued and similar use of the term "Pont-l'Évêque" by any persons, including their successors and assignees, for a maximum period of 5 (five) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territory of Brazil and that such use of the term "Pont-l'Évêque" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(15) The protection of the geographical indication "Pruneaux d'Agen" shall not prevent the continued and similar use of the term "D'Agen" or "Ciruela D'Agen" by any persons, including their successors and assignees, for a maximum period of 10 (ten) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territory of Argentina and that such use of the term "D'Agen" or "Ciruela D'Agen" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(16) The protection of the geographical indication "Reblochon" / "Reblochon de Savoie" shall not prevent the continued and similar use of the term "Reblochon" or "Rebleusson" by any persons, including their successors and assignees, for a maximum period of 5 (five) years in the territory of Argentina and Brazil, and for a maximum period of 7 (seven) years in the territory of Uruguay, from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods and that such use of the term "Reblochon" or "Rebleusson" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(17) The protection of the geographical indication "Roquefort" shall not prevent the continued and similar use of the term "Roquefort" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territories of Brazil and Uruguay and that such use of the term "Roquefort" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(18) The protection of the geographical indication "Saint-Marcellin" shall not prevent the continued and similar use of the term "Saint-Marcellin" by any persons, including their successors and assignees, for a maximum period of 5 (five) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territories of Brazil and Uruguay and that such use of the term "Saint-Marcellin" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(19) The protection of the geographical indication "Bordeaux" shall not prevent the continued and similar use of the vine variety "Bordô" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territory of Brazil and that such use of vine variety "Bordô" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(20) The protection of the geographical indication "Bourgogne" shall not prevent the continued and similar use of the term "Borgoña" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territory of Argentina and that such use of the term "Borgoña" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(21) The protection of the geographical indication "Chablis" shall not prevent the continued and similar use of the term "Chablis" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territory of Argentina and that such use of the term "Chablis" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(22) The protection of the geographical indication "Champagne" shall not prevent the continued and similar use of the terms "Champagne", "Champaña" or "Método / Méthode Champenoise" by any persons, including their successors and assignees, for a maximum period of 10 (ten) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territories of Argentina, Brazil, Paraguay and Uruguay and that such use of the terms "Champagne", "Champaña" or "Método / Méthode Champenoise" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(23) The protection of the geographical indication "Margaux" shall not prevent the continued and similar use of the vine variety "Margot" by any persons, including their successors and assignees, for a maximum period of 5 (five) years from the date of entry into force of this Agreement, provided that by that date such persons have used that geographical indication in a continuous manner with regard to the same or similar goods in the territory of Brazil and that such use of vine variety "Margot" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(24) The protection of the geographical indication "Cognac" shall not prevent the continued and similar use of the term "Cognac" or "Coñac" in the territory of Argentina by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, and of the term "Conhaque" in the territory of Brazil by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods and that such use of the term "Cognac", "Coñac" or "Conhaque" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(25) The protection of the geographical indication "Asiago" shall not prevent the continued and similar use of the term "Asiago" by any persons, including their successors and assignees, for a maximum period of 5 (five) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territories of Brazil and Uruguay and that such use of the term "Asiago" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(26) Article 21.35(8) applies.(27) The protection of the geographical indication "Gorgonzola" shall not prevent the continued and similar use of the term "Gorgonzola" by any persons, including their successors and assignees, for a maximum period of 5 (five) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territories of Argentina, Paraguay and Uruguay and that such use of the term "Gorgonzola" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.
Article 21.35(8) applies.(28) The protection of the geographical indication "Grana Padano" shall not prevent the continued and similar use of the term "Grana" or "Tipo Grana Padano" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons have used that geographical indication in a continuous manner with regard to the same or similar goods in the territory of Argentina and that such use of the term "Grana" or "Tipo Grana Padano" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.
Article 21.35(8) applies.(29) The protection of the geographical indication "Mortadella Bologna" shall not prevent the continued and similar use of the term "Mortadela Bologna" or "Mortadela tipo Bologna" by any persons, including their successors and assignees, for a maximum period of 10 (ten) years from the date of entry into force of this Agreement, provided that by that date such persons have used that geographical indication in a continuous manner with regard to the same or similar goods in the territory of Brazil and that such use of the terms "Mortadela Bologna" or "Mortadela tipo Bologna" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(30) Article 21.35(8) applies.(31) The protection of the geographical indication "Pecorino Romano" shall not prevent the continued and similar use of the terms "Romano" or "Romanito" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons have used that geographical indication in a continuous manner with regard to the same or similar goods in the territories of Argentina and Uruguay and that such use of the terms "Romano" or "Romanito" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(32) The protection of the geographical indication "Prosciutto di Parma" shall not prevent the continued and similar use of the term "Presunto tipo Parma" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territory of Brazil and that such use of the term "Presunto tipo Parma" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(33) The protection of the geographical indication "Taleggio" shall not prevent the continued and similar use of the term "Taleggio" by any persons, including their successors and assignees, for a maximum period of 5 (five) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territories of Argentina and Brazil and that such use of the term "Taleggio" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(34) The protection of the geographical indication "Asti" shall not prevent the continued and similar use of the term "método Asti" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territory of Brazil and that such use of the "método Asti" as been accompanied by a legible and visible indication of the geographical origin of the product concerned.(35) The protection of the geographical indication "Emilia / Dell'Emilia" shall only be effective in the territory of Argentina upon registration of the trademark "Emilia Nieto Senetiner" therein unless the application for such registration of the trademark is withdrawn.(36) The protection of the geographical indication "Marsala" shall not prevent the continued and similar use of the term "Marsala" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territory of Argentina and that such use of the term "Marsala" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(37) The protection of the geographical indication "Prosecco" shall not prevent the continued and similar use of the vine variety "Prosecco" or "Proseco" by any persons, including their successors and assignees, for a maximum period of 5 (five) years from the date of entry into force of this Agreement in the territory of Argentina and Paraguay and for a maximum period of 10 (ten) years from the date of entry into force of this Agreement in the territory of Brazil, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territories of Argentina, Paraguay and Brazil and that such use of vine variety "Prosecco" or "Proseco" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(38) The protection of the geographical indication "Grappa" shall not prevent the continued and similar use of the terms "Grappa" or "Grapa" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territories of Argentina and Brazil and that such use of the terms "Grappa" or "Grapa" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.
Article 21.35(8) applies.(39) The protection of the geographical indication "Tokaj" / "Tokaji" shall not prevent the continued and similar use of the terms "Tokaj", "Tokaji" or "Tocai" by any persons, including their successors and assignees, for a maximum period of 5 (five) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territories of Argentina and Brazil and that such use of the terms "Tokaj", "Tokaji" or "Tocai" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.(40) Article 21.35(8) applies.(41) The protection of the geographical indication "Oporto" / "Port" / "Port Wine" / "Porto" / "Portvin" / "Portwein" / "Portwijn" / "vin du Porto" / "vinho do Porto" shall not prevent the continued and similar use of the term "Oporto" by any persons, including their successors and assignees, for a maximum period of 7 (seven) years from the date of entry into force of this Agreement, provided that by that date such persons used that geographical indication in a continuous manner with regard to the same or similar goods in the territory of Argentina and that such use of the term "Oporto" has been accompanied by a legible and visible indication of the geographical origin of the product concerned.
PROTOCOL ON COOPERATION
ARTICLE 1
General principles
1. The Parties recall the establishment of a free trade area pursuant to Article 9.1 of the 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 (hereinafter referred to as "the EU–MERCOSUR Partnership Agreement"), with the objectives set out in Article 9.2 of the EU–MERCOSUR Partnership Agreement, which will contribute to increasing the overall income and prosperity in both regions and to reducing inequalities, in line with the United Nations Sustainable Development Goals.
2. The Parties are committed to a cooperation partnership that will contribute to peace and prosperity, based on respect, trust, and shared values and interests, jointly addressing challenges and seizing opportunities arising from the EU–MERCOSUR Partnership Agreement. Accordingly, the cooperation partnerships addressed in this Protocol are inspired by a vision whereby both Parties jointly define the priorities, design and objectives pursued.
3. The Parties recognise the need to facilitate the adaptation of MERCOSUR economic actors, particularly micro, small and medium-sized enterprises and entrepreneurs (hereinafter referred to as "SMEs"), women, smallholding farmers, indigenous peoples and local and traditional communities, to the new economic and trade environment generated by the establishment of the free-trade area, enabling them to gain competitiveness in the MERCOSUR and the EU markets and reap the benefits of the EU–MERCOSUR Partnership Agreement.
4. Therefore, in complement to the cooperation provisions enshrined in Article 4.2 ofthe EU–MERCOSUR Partnership Agreement, the Parties reiterate their commitment to engage in cooperation partnerships with the chief purpose of facilitating the implementation of the EU–MERCOSUR Partnership Agreement, with a particular emphasis on its Part III, by contributing to their ability to fully take advantage of the possibilities brought about by the EU–MERCOSUR Partnership Agreement and addressing potential adverse impacts on vulnerable economic sectors and industries, underlining the need to take into account the specific challenges of landlocked developing countries.
5. The cooperation envisaged under this Protocol may comprise activities jointly involving all Signatory MERCOSUR States or one or several individual Signatory MERCOSUR States over specific sectors and segments, including their SMEs. The Parties will make full use of the possibilities offered inter alia by the EU-LAC Global Gateway Investment Agenda.
6. The Parties agree that MERCOSUR and the Signatory MERCOSUR States can benefit from all types of resources provided under this Protocol taking into account, among others, the specific challenges of landlocked developing countries to ensure market access and equal opportunities to benefit under the EU–MERCOSUR Partnership Agreement.
ARTICLE 2
Financial mechanisms
EU financial support may take the form of grants, loans, guarantees and technical cooperation and could be integrated with resources of MERCOSUR and the Signatory MERCOSUR States as well as other financial resources from national, regional and international financial institutions in order to further pursue the objectives of the EU–MERCOSUR Partnership Agreement. The European Union will also seek to establish a specific MERCOSUR programme as a main channel to streamline cooperation under the EU–MERCOSUR Partnership Agreement and can also make use of existing programmes and instruments to channel assistance to MERCOSUR and the Signatory MERCOSUR States, using both bilateral and regional programmes, loans and budgetary guarantees to development finance institutions. In line with the Team Europe Initiative of the European Commission, support by the European Union may include contributions from Member States and not only from the European Union budget. Given the new economic and trade conditions that could emanate from the EU–MERCOSUR Partnership Agreement, financial support by the European Union will include new resources not available at present under other programmes, to be preferentially channelled through a specific MERCOSUR programme as outlined above.
ARTICLE 3
Monitoring and implementation
1. The Parties recall that, pursuant to Article 2.4(6) of the EU–MERCOSUR Partnership Agreement, a Subcommittee on International Cooperation and Development is established to promote, coordinate and supervise the implementation of cooperation activities in the areas referred to in Part II of the EU–MERCOSUR Partnership Agreement, as well as the follow up, monitoring and evaluation of those cooperation initiatives.
2. In addition to the tasks provided for in Article 2.4 of the EU–MERCOSUR Partnership Agreement, the Subcommittee on International Cooperation and Development shall steer the direction, define the priorities and shape the design of the partnership programmes of the joint work on cooperation established in this Protocol, as well as monitor regularly the availability of funds for the activities referred herein. It may also submit recommendations to the Joint Committee referred to in Article 2.3 of the EU–MERCOSUR Partnership Agreement.
3. For the purposes of planning the effective implementation of cooperation underthe EU–MERCOSUR Partnership Agreement, the Parties agree to start discussing, in the Subcommittee on International Cooperation and Development, ongoing and planned cooperation actions, within one year of the entry into force or start of provisional application of the EU–MERCOSUR Partnership Agreement. Also within this period, the Parties, acting in the framework of the Subcommittee on International Cooperation and Development, will agree on the process for approval of projects that will fall under the scope of this Protocol.