Title
FREE TRADE AGREEMENT BETWEEN THE SOUTHERN COMMON MARKET ("MERCOSUR") AND THE REPUBLIC OF SINGAPORE
Preamble
PREAMBLE
The Republic of Singapore, hereinafter referred to as "Singapore",
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, for the purposes ofthis Agreement, 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',
HAVING REGARD to the Treaty establishing the Common Market of the South between the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Oriental Republic of Uruguay;
REAFFIRMING their commitment to further strengthen and diversify their trade and investment relations;
AFFIRMING their conviction that this Agreement will enhance the competitiveness of their firms in global markets and the conditions of fair competition;
ACKNOWLEDGING the importance of transparency in international trade to the benefit of all stakeholders;
AIMING to promote economic and social development, to create new employment opportunities, to improve living standards and to ensure high levels of protection of health and safety and of the environment;
REAFFIRMING their commitment to promote international trade in such a way as to contribute to sustainable development in its economic, social and environmental dimensions;
RECOGNISING the condition and challenges faced by the Republic of Paraguay as landlocked developing country;
WILLING to support the growth and development of micro, small and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by this Agreement;
DETERMINED to promote and further strengthen the multilateral trading system, thereby contributing to the harmonious development and expansion of world trade;
BUILDING on their respective rights and obligations under the Marrakesh Agreement establishing the World Trade Organization and other multilateral, regional and bilateral agreements and arrangements to which they are party;
HAVE AGREED, in pursuit of the above, to conclude the following Free Trade Agreement:
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. Establishment of a Free Trade Area
The Parties to this Agreement hereby establish a free trade area, consistent with Article XXIV of GATT 1994 and Article V of GATS.
Article 1.2. Objectives
The objectives of this Agreement are to liberalise and facilitate trade and investment between the Parties in accordance with the provisions of this Agreement.
Article 1.3. Definitions of General Application
For the purposes of this Agreement, unless otherwise specified:
(a) "Agreement on Agriculture" means the Agreement on Agriculture contained in Annex 1A of the WTO Agreement;
(b) "Agreement on Government Procurement" means the Agreement on Government Procurement contained in Annex 4 of the WTO Agreement;
(c) "Agreement on Preshipment Inspection" means the Agreement on Preshipment Inspection contained in Annex IA of the WTO Agreement;
(d) "Anti-Dumping Agreement" means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 contained in Annex IA of the WTO Agreement;
(e) "Customs Valuation Agreement" means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 contained in Annex IA of the WTO Agreement;
(f) "day" means a calendar day;
(g) "DSU" means the Understanding on Rules and Procedures Governing the Settlement of Disputes contained in Annex 2 of the WTO Agreement;
(h) "GATS" means the General Agreement on Trade in Services contained in Annex 1B of the WTO Agreement;
(i) "GATT 1994" means the General Agreement on Tariffs and Trade 1994 contained in Annex IA of the WTO Agreement;
"Harmonized System or "HS" means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation. Section Notes, Chapter Notes and Subheading Notes as adopted and implemented by the State Parties in their respective laws and regulations;
(k) "IMF" means the International Monetary Fund;
(l) "Import Licensing Agreement" means the Agreement on Import Licencing Procedures contained in Annex IA of the WTO Agreement;
(m) "measure" means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action, practice or any other form, and includes measures taken by:
(i) central, regional or local governments and authorities;
(ii) non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities; and
(iii) MERCOSUR's decision-making bodies.
(n) "natural person of a State Party" means any natural person who is a national of Singapore or of a Signatory MERCOSUR State, according to their respective domestic legislation;
(o) "juridical person" means any legal entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;
(p) "State Parties" means Signatory MERCOSUR States and Singapore;
(q) "Parties" means Signatory MERCOSUR States, MERCOSUR and Singapore;
(r) "person" means a natural person or a juridical person;
(s) "person of a State Party" means a natural person or a juridical person of a State Party;
(t) "Safeguards Agreement" means the Agreement on Safeguards contained in Annex IA of the WTO Agreement;
(u) "SCM Agreement" means the Agreement on Subsidies and Countervailing Measures contained in Annex lA of the WTO Agreement;
(v) "SPS Agreement" means the Agreement on the Application of Sanitary and Phytosanitary Measures contained in Annex IA of the WTO Agreement;
(w) "TBT Agreement" means the Agreement on Technical Barriers to Trade contained in Annex IA of the WTO Agreement;
(x) "territory" means:
(i) with respect to Singapore, its land territory, internal waters and territorial sea, including the airspace above them, as well as any maritime area situated beyond the territorial sea which has been or might in the future be designated under its national law, in accordance with international law, as an area within which Singapore may exercise sovereign rights and jurisdiction with regards to the sea, the sea-bed, the subsoil and the natural resources;
(ii) with respect to each Signatory MERCOSUR State, its land territory, internal waters and territorial sea, including the airspace above them, as well as any maritime area situated beyond the territorial sea which has been or might in the future be designated under its national law, in accordance with international law, as an area within which each Signatory MERCOSUR State may exercise sovereign rights and jurisdiction with regards to the sea, the sea-bed, the subsoil and the natural resources;
For greater certainty, this definition includes the exclusive economic zone and the continental shelf, in accordance with international law, including the UNCLOS.
(y) "Treaty of Asuncion" means the Treaty for the constitution of a Common Market between the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Oriental Republic of Uruguay, done at Asuncion on 26 March 1991;
(z) "TRIPS Agreement" means the Agreement on Trade-Related Aspects of Intellectual Property Rights contained in Annex 1C of the WfO Agreement;
(aa) "UNCLOS" means the United Nations Convention on the Law of the Sea, done at Montego Bay on 10 December 1982;
(bb) "WIPO" means the World Intellectual Property Organization;
(cc) "WTO Agreement" means the Marrakesh Agreement Establishing the World Trade Organization done at Marrakesh on 15 April 1994;
(dd) "WTO" means the World Trade Organization.
Article 1.4. Trade and Investment Relations Governed by this Agreement
This Agreement applies to the trade and investment relations between, of the one part, Singapore, and of the other part, the Signatory MERCOSUR States and MERCOSUR. This Agreement does not apply to the trade and investment relations between individual Signatory MERCOSUR States.
Chapter 2. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS
Article 2.1. Scope
Unless otherwise provided for in this Agreement, this Chapter shall apply to trade in goods between the State Parties.
Article 2.2. Definitions
For the purposes of this Chapter:
(a) "advertising films and recordings" means recorded visual media or audio materials, consisting essentially of images or sound, showing the nature or operation of goods or services offered for sale or lease by a person of a State Party, provided that such materials are of a kind suitable for exhibition to prospective customers but not for broadcast to the general public;
(b) "commercial samples of negligible value" means commercial or trade samples imported in reasonable quantities and values, pursuant to each State Party's laws and regulations, or so marked, torn, perforated or otherwise treated that they are unsuitable for sale or for use except as commercial samples;
(c) "customs duty" includes a customs or import duty or a charge of any kind imposed on or in connection with the importation of a good, including a form of surtax or surcharge in connection with that importation, but does not include:
(i) a charge equivalent to an internal tax imposed in accordance with Article III(2) (National Treatment on Internal Taxation and Regulation) of GATT 1994;
(ii) an anti-dumping or countervailing duty imposed in accordance with Articles VI (Anti- dumping and Countervailing Duties) and XVI (Subsidies) of GATT 1994, the Anti- Dumping Agreement, the SCM Agreement, and Chapter 5 (Trade Remedies);
(iii) a fee or other charge imposed in accordance with Article VIII (Fees and Formalities connected with Importation and Exportation) of GATT 1994;
(iv) safeguard measures applied in accordance with Article XIX (Emergency Action on Imports of Particular Products) of GATT 1994, the Safeguards Agreement, and with Chapter 6 (Bilateral Safeguards);
(v) measures authorised by the WTO Dispute Settlement Body or under Chapter 18 (Dispute Settlement); and
(vi) measures adopted to safeguard a State Party's external financial position and its balance of payments, in accordance with Article XII (Restrictions to Safeguard the Balance of Payments) of GATT 1994 and the Understanding on Balance of Payments Provisions of GATT 1994.
(d) "duty-free" means free of customs duty;
(e) "goods admitted for sports purposes" means sports requisites admitted into the territory of the Importing State Party for use in sports contests, demonstrations or training in the territory of that Party;
(f) "import licensing" means an administrative procedure requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body of the importing State Party as a prior condition for importation into the territory of the importing State Party;
(g) "originating" means qualifying as originating under the rules of origin set out in Chapter 3 (Rules of Origin and Origin Procedures); and
(h) "printed advertising materials" means those goods classified in Chapter 49 of the Harmonized System, including brochures, pamphlets, leaflets, trade catalogues, yearbooks published by trade associations, tourist promotional materials and posters, that are used to promote, publicise or advertise a good or service, are essentially intended to advertise a good or service, and are supplied free of charge.
Article 2.3. National Treatment
Each State Party shall accord national treatment to the goods of another State Party in accordance with Article III (National Treatment on Internal Taxation and Regulation) of GATT 1994, including its interpretative notes. To this end, the obligations contained in Article III (National Treatment on Internal Taxation and Regulation) of GATT 1994, including its interpretative notes, are incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.4. Classification of Goods
For the purposes of this Agreement, the Parties shall apply their respective customs classification systems, at the eight-digit level, which shall be based on the HS in its 2017 version or any subsequent amendment thereto approved by the Parties.
Article 2.5. Customs Valuation
The Customs Valuation Agreement shall govern the customs valuation rules applied by the State Parties to their mutual trade.
Article 2.6. Elimination of Customs Duties on Imports
1. Unless otherwise provided for in this Agreement, each Party shall eliminate its customs duties on originating goods in accordance with its Schedule in Annex 2-A.
2. For each originating good under paragraph 1, the base rate of custom duties on imports shall be that specified in a Party's Schedule in Annex 2-A.
3. Unless otherwise provided for in this Agreement, a Party shall not increase any existing customs duty nor introduce any new customs duty, on the importation of a good originating in another Party. This shall not preclude a Party from raising a customs duty to the level established in its Schedule in Annex 2-A following a unilateral reduction.
4. On request of a Party, no sooner than 3 (three) years after entry into force of this Agreement for Singapore and all Signatory MERCOSUR States, the Parties shall consider accelerating the elimination of customs duties set out in their respective Schedules in Annex 2-A.
5. An agreement between the Parties to accelerate the elimination of a customs duty on an originating good shall supersede any duty rate or staging category determined pursuant to their Schedules in Annex 2-A for that good when approved by the Parties in accordance with their applicable legal procedures.
6. A Party may at any time unilaterally accelerate the elimination of customs duties on originating goods of another Party set out in its Schedule in Annex 2-A. A Party shall inform another Party as early as practicable before the new rate of customs duty takes effect.
7. For greater certainty, a Party shall not prohibit an importer from claiming for an originating good the rate of customs duty applied under the WTO Agreement.
Article 2.7. Goods Re-entered after Repair
1. A State Party shall not apply a customs duty to a good, regardless of its origin, that re-enters its territory after that good has been temporarily exported from its territory to the territory of another State Party for repair, provided that the importer or exporter proves that it is a free repair, due to a contractual obligation of guarantee, regardless of whether such repair could be performed in the territory of the State Party from which the good was exported for repair.
2. A State Party shall not apply a customs duty and internal taxes to a good, regardless of its origin, admitted temporarily from the territory of another State Party for repair.
3. For the purposes of this Article, "repair" means any processing operation undertaken on goods to remedy operating defects or material damage and entailing the re-establishment of goods to their original function and performance or to ensure their compliance with technical requirements for their use, without which the goods could no longer be used in the normal way for the purpose for which they were intended. Repair of goods includes restoring and maintenance. For greater certainty, repair does not include an operation or process that:
(a) destroys a good's essential characteristics or creates a new or commercially different good; or
(b) transforms an unfinished good into a finished good.
Article 2.8. Commercial Samples
Each State Party shall grant duty free entry of commercial samples of negligible value and printed advertising materials from the territory of another State Party.
Article 2.9. Temporary Admission of Goods
1. For the purposes of this Article, the term "temporary admission" means the customs procedure that allows goods to be brought into a State Party’s customs territory conditionally relieved from payment of import duties and taxes and without application of import restrictions or prohibitions of economic character, if such goods are brought into a State Party’s customs territory for a specific purpose, are intended for re-exportation within a specific period, and have not undergone any change except normal depreciation and wastage due to the use made of them, as provided for in that State Party’s laws and regulations.
2. Each State Party shall grant temporary admission, with total conditional relief from import duties and taxes, for the following goods, regardless of their origin:
(a) professional equipment, including equipment for the press or television, software, and broadcasting and cinematographic equipment, that is necessary for carrying out the business activity, trade or profession of a person who qualifies for temporary entry pursuant to the laws of the importing State Party;
(b) goods intended for display, demonstration or use at exhibitions, fairs, meetings or similar events, including their component parts, ancillary apparatus, and accessories;
(c) commercial samples and advertising films and recordings; and
(d) goods admitted for sports purposes.
3. Each State Party shall, on request of the person concerned and for reasons its customs authority considers valid, extend the time limit for temporary admission, with total conditional relief from import duties and taxes, beyond the period initially fixed.
4. A State Party shall not condition the temporary admission, with total relief from import duties and taxes, of the goods referred to in paragraph 1, other than to require that those goods:
(a) be used solely by or under the personal supervision of a national of another State Party in the exercise of the business activity, trade, profession or sport of that national;
(b) not be sold or leased while in its territory;
(c) be accompanied by a guarantee in an amount no greater than the charges that would otherwise be owed on entry or final importation, releasable on exportation of the goods;
(d) be capable of identification when imported and exported;
(e) be exported on the departure of the national referred to in subparagraph (a), or within any other period reasonably related to the purpose of the temporary admission that the State Party may establish, or within one year, unless extended;
(f) be admitted in no greater quantity than is reasonable for their intended use; and
(g) be otherwise admissible into the State Party's territory under its laws.
5. Each State Party shall grant temporary admission, with total conditional relief from import duties and taxes, for containers and pallets regardless of their origin, that are in use or to be used in the shipment of goods in international traffic.
6. If any condition that a State Party imposes under paragraph 3 has not been fulfilled, the State Party may apply the customs duty and any other charge that would normally be owed on the good in addition to any other charges or penalties provided for under its law.
7. Each State Party shall adopt and maintain procedures providing for the expeditious release of goods admitted pursuant to this Article. To the extent possible, those procedures shall provide that when a good admitted pursuant to this Article accompanies a national of another State Party who is seeking temporary entry, the good shall be released simultaneously with the entry of that national.
8. Each State Party shall permit a good temporarily admitted pursuant to this Article to be exported through a customs port other than the port through which it was admitted.
9. Each State Party shall, in accordance with its laws and regulations, provide that the importer or other person responsible for a good admitted pursuant to this Article shall not be liable for failure to export the good on presentation of satisfactory proof to the importing State Party that the good was destroyed within the period fixed for temporary admission, including any lawful extension.
10. Unless otherwise provided for in this Agreement:
(a) each State Party shall allow a container used in international traffic that enters its territory from the territory of another State Party to exit its territory on any route that is reasonably related to the economic and prompt departure of such container;
(b) a State Party shall not require any guarantee or impose any penalty or charge solely by reason of any difference between the port of entry and the port of departure of a container;
(c) a State Party shall not condition the release of any obligation, including any guarantee, that it imposes in respect of the entry of a container into its territory on its exit through any particular port of departure; and
(d) a State Party shall not require that the carrier bringing a container from the territory of another State Party into its territory be the same carrier that takes the container to the territory of that other State Party.
Article 2.10. Quantitative Import and Export Restrictions
1. Unless otherwise provided for in this Agreement, a State Party shall not adopt or maintain any prohibition or restriction other than duties, taxes and other charges on the importation of any good of another State Party or on the exportation or sale for export of any good destined for the territory of another State Party, except in accordance with Article XI (General Elimination of Quantitative Restrictions) of GATT 1994, including its interpretative notes. To this end, Article XI (General Elimination of Quantitative Restrictions) of GATT 1994, including its interpretative notes, or any equivalent provision of a successor agreement to which the State Parties are party, are incorporated into and made part of this Agreement, mutatis mutandis.
2. The Parties understand that GATT 1994 rights and obligations incorporated by paragraph 1 prohibit, in any circumstances in which any other form of restriction is prohibited, a State Party from adopting or maintaining:
(a) export or import price requirements, except as permitted in enforcement of anti-dumping and countervailing duty orders or price undertakings; or
(b) voluntary export restraints inconsistent with Article VI (Anti-dumping and Countervailing Duties) of GATT 1994, as implemented under Article 18 (Undertakings) of the SCM Agreement and Article 8 (Price Undertakings) of the Anti-Dumping Agreement.
Article 2.11. Export Prohibitions and Restrictions on Foodstuffs
1. Without prejudice to the conditions set out in Article 12(1) (Disciplines on Export Prohibitions and Restrictions) of the Agreement on Agriculture under which a State Party may apply an export prohibition or restriction, other than a duty, tax or other charge, on foodstuffs, a State Party that imposes such a prohibition or restriction on the exportation or sale for export of foodstuffs considered critical [1] to another State Party shall notify the measure to that other State Party as far in advance as practicable.
2. A State Party that is required to notify a measure pursuant to paragraph 1 shall respond to any question posed by another State Party regarding the measure, in writing, within 30 (thirty) days of the receipt of the question when feasible.
3. A State Party contemplating continuation of a measure notified pursuant to paragraph 1 beyond one year from the date it is imposed should notify the other State Parties as far in advance as practicable.