Title
Economic Complementation Agreement signed between the Governments of the Argentine Republic, of the Federative Republic of Brazil, of the Republic of Paraguay and the Eastern Republic of Uruguay, the member States of MERCOSUR and the Government of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, member countries
Preamble
The Andean Community
The Governments of the Argentine Republic, of the Federative Republic of Brazil, of the Republic of Paraguay and the Eastern Republic of Uruguay, the member States of MERCOSUR and the Government of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, member countries of the Andean Community shall be referred to as "" parties. for the purposes of this Agreement, the contracting parties are a party MERCOSUR and the other party of the member countries of the Andean Community entering into the Agreement,
Whereas it is necessary to strengthen the integration process in Latin America, in order to achieve the objectives set out in the Montevideo Treaty 1980, through the conclusion of agreements open to the other member countries of the Latin American Integration Association (ALADI) for the establishment of an enlarged economic area;
Whereas giving operators clear and predictable rules for the development of trade and investment, and thus to foster a more active participation in economic and trade relations between the States parties of MERCOSUR and the Andean Community Member States;
On 17 December 1996 was on signed Economic Complementarity Agreement No. 36, establishing a free trade area between the Republic of Bolivia and MERCOSUR;
On 25 August 2003 on was signed Economic Complementarity Agreement No. 58 through establishing a free trade area between the Republic of Peru and MERCOSUR;
The establishment of free trade areas in Latin America is an important tool for closer integration schemes;
Regional economic integration as one of the essential tools for the countries of Latin America progress in their economic and social development, ensuring a better quality of life for their peoples;
On 16 April 1998 was signed a framework agreement between the Andean Community and MERCOSUR that provides for the Negotiation of a free trade area between the parties;
On 6 December 2002 was on signed Economic Complementarity Agreement No. 56, between the Andean Community and MERCOSUR that provides for the establishment of a free trade area;
The validity of democratic institutions constitutes an essential element for the development of regional integration process;
The States parties of MERCOSUR, through the conclusion of the 1991 Treaty of Asunción and the Andean countries through the conclusion of the Cartagena Agreement 1969, have taken a significant step towards the achievement of the objectives of the Latin American integration;
The Marrakesh Agreement Establishing the World Trade Organization (WTO), is the framework of rights and obligations which shall be adjusted trade policies and the obligations of this Agreement;
The Parties shall promote competition and reject the exercise of restrictive practices;
The integration process must include aspects relating to the development and full use of physical infrastructure,
Agree
In the present economic complementarity agreement under the Montevideo Treaty 1980 and resolution 2 of the Council of Ministers of LAFTA.
Body
Title I. OBJECTIVES AND SCOPE
Article 1-.
This agreement aims at:
- Establishing the legal and institutional framework for economic cooperation and integration and physical that contributes to the creation of an enlarged economic area that is likely to facilitate the free movement of goods and services and the full use of production factors, in conditions of competition between the contracting parties;
- The formation of a free trade area between the contracting parties through the expansion and diversification of trade and the elimination of non-tariff restrictions and no-arancelarias affecting the reciprocal trade;
- To achieve the harmonious development of the region, taking into consideration the asymmetries resulting from the different levels of economic development of the Parties;
- To promote the development and use of physical infrastructure, with special emphasis on the development of integration brokers to lower costs and the generation of competitive advantages in regional and reciprocal trade with third countries outside the region;
- Promote and encourage investments between economic operators of the Parties;
- Promoting complementarity and cooperation in economic, energy, science and technology;
- Promote consultations, where appropriate, in trade negotiations with third countries or groups of countries extraregional.
Article 2-.
The provisions of this Agreement shall apply in the territory of the Parties Signatories.
Title II. TRADE LIBERALIZATION PROGRAM
Article 3-.
The Contracting Parties shall form a Free Trade Area through a Programme of Trade Liberalization, which is applied to products originating from the territories of the Parties. The programme shall consist of concessions and progressive automatic applicable on existing tariffs for imports from third countries in each party, a signatory at the time of the application of preferences in accordance with its laws.
Notwithstanding the preceding paragraph, for the products listed in annex I, the relief shall apply only on tariffs set out in that annex.
For products not listed in annex I, preference shall be applied on the total tariffs, including the additional customs duties.
In the trade in goods between the contracting parties, the classification of goods shall be governed by the nomenclature of the Harmonized Commodity Description and Coding System of goods, in the version regional naladisa 96 and their future updates, which shall not modify the terms and conditions of access negotiated for administering the Commission shall define the date of entry into force of such updates.
For the purpose of providing transparency in the application and scope of preferences, the Contracting Parties shall notify each compulsorily from the entry into force of this Agreement, the resolutions issued heats or rendered by their respective competent bodies based on the Harmonised System explanatory notes. before any divergence of interpretation, the parties may have recourse to the World Customs Organization (WCO) without prejudice to paragraph (e) of article 41 of this Agreement.
This agreement incorporates the tariff preferences previously negotiated between the parties in the partial scope agreements within the framework of ALADI, as reflected in the manner in the programme of trade liberalization.
Furthermore, this agreement incorporates the tariff preferences and other conditions of access previously negotiated in regional agreements within the framework of ALADI, as reflected in the manner in the programme of trade liberalization. however, shall apply the tariff preferences and other conditions of access being applied by the parties on the date of signature of this agreement, under the regional agreement concerning the regional tariff preference and regional agreements of market opening in favour of the Least Developed Countries (NAM), Economic relative to the extent that such preferences and other conditions of access are more favourable than those laid down in this Agreement.
However, shall remain in force the provisions of the agreements of partial scope agreements and regional, where they concern matters not covered by this Agreement.
Article 4-.
For the purpose of implementing the programme of trade liberalization, the Parties
Signatories agree among themselves, and their schedules of specific rules and disciplines, contained in annex II.
Article 5-.
The Signatory Parties may not adopt taxes and charges of equivalent effect other than customs duties affecting trade covered by this Agreement. With respect to the existing at the date of signature of the Agreement, only the taxes and charges set forth in the Complementary Notes may be maintained, which may be modified but without increasing their incidence. The aforementioned Notes are contained in Annex III.
The term "changes" shall be understood to mean customs duty and any other equivalent effect charge that affect imports originating in the parties. Similar fees and surcharges are not included in this concept when they are equivalent to the cost of services rendered, nor are anti-dumping or countervailing duties.
Article 6-.
The Parties shall not maintain or introduce new non-tariff restrictions to their reciprocal trade. The term "restrictions" any measure or mechanism that prevents or hinders imports or exports of a Contracting Party, except those permitted by the WTO.
Article 9-.
The Contracting Parties Shall, Within a Period No Greater Than One Hundred and Eighty (180) Days from the Date of Entry Into Force of this Agreement, Exchange Lists of Measures Affecting Their Reciprocal Trade, such as, Non-automatic Licensing, Prohibitions or Restrictions on the Importation and Requirements for Registration or Similar Solely for the Purpose of Transparency. The inclusion of measures in that list does not prejudge their validity and relevance.
Furthermore, the Contracting Parties shall keep each other informed through the competent national authorities, on any changes to such measures and shall transmit copies thereof to the General Secretariat of ALADI for information.
In the case of standards and technical regulations and conformity assessment and sanitary and phytosanitary measures, apply for transparency procedures specified in annexes.
Article 10-.
Nothing in this Agreement shall be construed to prevent a Signatory Party from adopting or applying measures pursuant to Article 50 of the Treaty of Montevideo 1980 and/or Articles XX and XXI of the General Agreement on Tariffs and Trade (GATT) 1994. Agreement on Tariffs and Trade (GATT) 1994.
Article 11-.
Used goods, including those identified as such in headings or subheadings of the Harmonized System, will not benefit from the Trade Liberalization Program.
Title III. SYSTEM OF ORIGIN
Article 12-.
The Parties shall apply to imports under the programme of Ttade liberalization, the rules of origin contained in Annex Iv to this agreement
Title IV. National Treatment
Article 13-.
In matters of national treatment, the Signatory Parties shall be governed by the provisions of Article III of GATT 1994 and Article 46 of the Treaty of Montevideo 1980.
Title V. ANTIDUMPING AND COUNTERVAILING MEASURES
Article 14-.
In the Application of Anti-dumping or Countervailing Measures , the Contracting Parties Are Regulated by Their Respective Laws, Which Shall Be Consistent with the Agreement on Implementation of Article Vi of the General Agreement on Tariffs and Trade 1994 and the Agreement on Subsidies and Countervailing Measures of the WTO.
Furthermore, the Contracting Parties shall comply with the commitments in respect of subsidies in the area of the WTO, without prejudice to article 18.
Article 15.
In the event that one of the Signatory Parties of a Contracting Party applies antidumping or countervailing measures on imports from third countries, it shall inform the other Contracting Party for the evaluation and follow-up of imports into its market of the products subject to the measures, through the competent national agencies.
Article 16-.
The Contracting Parties or Signatories shall inform any Amendment or Repeal of its laws , regulations or provisions in matters of Anti-dumping or countervailing duties , within Fifteen (15) Days after the issuance of the respective standards in the office body. Such notification shall be made through the mechanism provided for in Title XXIII of the Agreement.
Title VI. PRACTICES THAT RESTRICT FREE COMPETITION
Article 17-.
The Contracting Parties shall promote the actions necessary to provide an appropriate framework to identify and punish any restrictive practices of free competition.
Title VII. APPLICATION AND USE OF SUBSIDIES
Article 18-.
The signatory parties "condemn any unfair trade practice and undertake to eliminate the measures that may cause to bilateral trade distortion in accordance with the WTO.
To this end, the parties agree not to apply the reciprocal trade industrial subsidies which are contrary to the WTO.
However, the contracting parties agree not to apply the reciprocal trade in agricultural, any form of export subsidies.
Where a Party decides to support its agricultural producers, domestic support guide their policies towards those that:
a) Not have or have minimal distortive effects on trade or production; or
b) Are exempt from any reduction commitments pursuant to article 6 of the WTO Agreement on Agriculture and subsequent amendments.
Products which do not comply with the provisions of this article shall not benefit from the programme of trade liberalization.
The contracting party affected by any of these measures may apply to the other contracting party of detailed information on the alleged subsidy applied. the party signatory consulted shall provide detailed information in a period of fifteen (15) days. within thirty (30) days of the receipt of the information shall be conducted a consultation between the parties involved.
Done this consultation, if it is the existence of export subsidies, the Contracting Party concerned may suspend the benefits of trade liberalization the product or products to which the measure.
Title VIII. Safeguard
Article 19-.
The Contracting Parties shall adopt the safeguards regime contained in Annex V.
Title IX . DISPUTE SETTLEMENT
Article 20-.
Disputes arising from the interpretation, application or breach of this Agreement and the Protocols and complementary instruments adopted within the framework of this Agreement shall be settled in accordance with the Dispute Settlement Regime subscribed by means of an Additional Protocol to this Agreement, which shall be incorporated by the Signatory Parties in accordance with the provisions of their domestic legislation.
The said Additional Protocol shall enter into force and shall be fully applicable for all the Signatory Parties as of the date of the last ratification. Signatory Parties as of the date of the last ratification.
During the period between the date of entry into force of this Agreement and the date of entry into force of the Additional Protocol, the transitional mechanism contained in Annex VI shall apply. The Parties to the dispute, by mutual agreement, may apply by default the provisions contained in the Additional Protocol in all matters not provided for in the said Annex. The Signatory Parties may provide for the provisional application of the Protocol to the extent that their national laws so provide. to the extent that their national legislation so permits.
Title X. CUSTOMS VALUATION
Article 21-.
In their reciprocal trade, the Signatory Parties shall be governed by the provisions of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 and by Resolution 226 of the ALADI Committee of Representatives.
Title XI. STANDARDS, TECHNICAL REGULATIONS AND CONFORMITY ASSESSMENT
Article 22-.
The Signatory Parties shall be governed by the provisions of the Standards, Technical Regulations and Conformity Assessment Regime, contained in Annex VII.
Title XII. SANITARY AND PHYTOSANITARY MEASURES
Article 23-.
The Contracting Parties undertake to prevent sanitary and phytosanitary measures from becoming unjustified barriers to trade. The Signatory Parties shall be governed by the provisions of the Sanitary and Phytosanitary Measures Regime, contained in Annex VIII.
Title XIII. SPECIAL MEASURES
Article 24-.
- The Republic of Argentina, the Federative Republic of Brazil, the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, adopt to Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, adopt for their respective reciprocal trade, the Regime of Special Measures contained in Annex IX, for the products listed in the Appendices of the mentioned Annex.
The Republic of Paraguay and the Oriental Republic of Uruguay will continue evaluating the possible application of the Special Measures Regime, contained in Annex IX, for reciprocal trade with the Republic of Ecuador. In the meantime, the products included by the Republic of Ecuador in their respective Appendices to Annex IX, will maintain their current levels and conditions of preference and will not benefit from the application of the the application of the tariff reduction schedules set out in Annex II for reciprocal trade between the countries the countries mentioned in this paragraph.
Title XIV. PROMOTION AND EXCHANGE OF COMMERCIAL INFORMATION
Article 25-.
The Contracting Parties shall support each other in the programs and tasks of trade dissemination and promotion, facilitating the activity of official and private missions, the organization of fairs and exhibitions, the holding of informative seminars, market studies and other actions aimed at making the best use of the Trade Liberalization Program and of the opportunities offered by the procedures agreed upon in trade matters.
Article 26-.
- For the purposes foreseen in the previous Article, the Contracting Parties shall program activities that facilitate reciprocal promotion by public and private entities in both Contracting Parties, for the products of their interest, included in the Trade Liberalization Program of this Agreement.
Article 27-. The Parties Shall Exchange Information on Vacancies and Regional and Global Applications of Their Export Products
The Parties shall exchange information on vacancies and regional and global applications of their export products.
Title XV.
Article 28-.
The Contracting Parties shall promote the adoption of measures to facilitate the provision of services. Likewise and within a period to be defined by the Administrative Commission, the Signatory Parties shall establish the appropriate mechanisms for the liberalization, expansion and progressive diversification of trade in services in their territories, in accordance with the rights, obligations and commitments derived from the respective participation in the General Agreement on Trade in Services of the WTO (GATS), as well as in the General Agreement on Trade in Services of the WTO (GATS), as well as in the General Agreement on Trade in Services of the WTO (GATS), as well as in other regional and hemispheric fora.
Title XVI . INVESTMENTS AND DOUBLE TAXATION
Article 29-.
The Signatory Parties shall endeavor to stimulate the realization of reciprocal investments, with the objective of intensifying bilateral trade and technology flows, in accordance with their respective national legislations.
Article 30-.
The Signatory Parties shall consider the possibility of entering into new Agreements on the Promotion and Reciprocal Protection of Investments. Bilateral agreements entered into between the Signatory Parties as of the date of this Agreement shall remain in full force and effect.
Article 31-.
The Signatory Parties shall consider the possibility of entering into new Agreements to avoid double taxation. The bilateral agreements entered into between the Signatory Parties as of the date of this Agreement shall remain in full force and effect.
Title XVII. INTELLECTUAL PROPERTY
Article 32-.
The Signatory Parties will be governed by the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights, as well as by the rights and obligations contained in the 1992 Convention on Biological Diversity. They will also seek to develop rules and disciplines for the protection of traditional knowledge.
Title XVIII. Transport
Article 33-.
The Signatory Parties shall promote the facilitation of land, river, lake, maritime and air transportation services, in order to provide adequate conditions for the better circulation of goods and persons, in response to the increased demand that will result from the expanded economic space. expanded economic space.
Article 34-.
The Administrative Commission shall identify those agreements entered into within the framework of MERCOSUR or its Member States and the Andean Community or its Member Countries whose application by both Contracting Parties is of common interest.
Article 35-.
The Contracting Parties may establish rules and specific commitments aimed at facilitating land, river, lake, maritime and air transport services that fall within the framework indicated in the rules of this Title and establish the deadlines for their implementation. their implementation.
Title XIX. INFRASTRUCTURE
Article 36-.
The Signatory Parties shall promote initiatives and cooperation mechanisms that allow for the development, expansion and modernization of infrastructure in various areas, in order to generate competitive advantages in reciprocal trade.
Title XX. SCIENTIFIC AND TECHNOLOGICAL COMPLEMENTATION
Article 37-.
The Contracting Parties shall endeavor to facilitate and support forms of collaboration and joint initiatives in science and technology, as well as joint projects.
For such purposes, they may agree on reciprocal technical assistance programs, aimed at raising the productivity levels of the referred sectors, obtaining the maximum use of the available resources and stimulating the improvement of their competitive capacity, both in the markets of the region and internationally. The aforementioned technical assistance shall be developed between the competent national institutions. The Contracting Parties shall promote the exchange of technology in the areas of agriculture, industry, technical standards, animal and plant health and others considered to be of mutual interest, taking into account the scientific and technological agreements in force between the Signatory Parties to this Agreement.
Title XXI. Cooperation
Article 38-.
The Parties shall encourage joint initiatives to promote productive integration, the competitiveness of enterprises and their participation in the reciprocal trade with special emphasis on small and medium-sized enterprises (SME).
The Parties shall endeavour to promote cooperation and financial mechanisms for seeking funding mechanisms, inter alia, the development of infrastructure projects and to promoting mutual investment.
Title XXII. FREE ZONES
Article 39-.
The Signatory Parties agree to continue to address the issue of free zones and special customs areas. free trade zones and special customs areas.