PROTOCOL Law 25.663 Approve the Protocol of Olives for the Settlement of Disputes in Mercosur, signed on 18 February 2002.

The Senate and Chamber of Deputies of the Argentine Nation assembled in Congress, etc. sanction with force of Law:

ARTICLE 1 The OLIVS PROTOCOL FOR THE SOLUTION OF CONTROVERSES IN MERCOSUR, signed in Olivos, Province of Buenos Aires, on 18 February 2002, consists of CINCUENTA AND SEIS (56) articles, whose authenticated photocopy is part of this law.

ARTICLE 2 Contact the national executive branch.

IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, ON 9 OCT 2002. _ CHANGE. . JUAN C. MAQUEDA. . Eduardo D. Rollano. . Juan C. Oyarzún.

PROTOCOL OF OLIVES FOR THE SOLUTION OF CONTROVERSES IN MERCOSUR

The Argentine Republic, the Federal Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, henceforth referred to as "States Parties";

IN ACCOUNT the Treaty of Asunción, the Protocol of Brasilia and the Protocol of Ouro Preto;

RECOGNIZING

That the evolution of the integration process in the Mercosur area requires the development of the dispute resolution system;

CONSIDERING

The need to ensure the proper interpretation, application and compliance of the fundamental instruments of the integration process and the normative set of Mercosur in a consistent and systematic manner;

Agreed

The desirability of making specific changes to the dispute resolution system in order to consolidate legal security in the Mercosur area;

They've agreed the following:

CHAPTER I CONTROVERSING STATES PARTIES Article 1

Scope of application

1. Disputes arising between States Parties on the interpretation, application or non-compliance with the Treaty of Asunción, the Ouro Preto Protocol, the protocols and agreements concluded under the Treaty of Asunción, the decisions of the Common Market Council, the resolutions of the Common Market Group and the directives of the Mercosur Trade Commission shall be subject to the procedures established in this Protocol.

2. Disputes within the scope of this Protocol that may also be subject to the dispute settlement system of the World Trade Organization or other preferential trade schemes that are individual parties to Mercosur may be submitted to one or another forum on the election of the requesting party. Without prejudice, the parties to the dispute may, in common agreement, agree on the forum.

Once a dispute settlement procedure is initiated in accordance with the preceding paragraph, neither party may resort to the mechanisms established in the other forums for the same purpose, as defined in the terms of Article 14 of this Protocol.

However, within the framework of this numeral, the Council of the Common Market shall regulate aspects of the forum option.

CHAPTER II MECHANISMS RELATING TO TECHNICAL ASPECTS Article 2

Establishment of mechanisms

1. Where deemed necessary, mechanisms may be established to resolve divergences between States parties on technical aspects regulated by common trade policy instruments.

2. The rules of operation, the scope of these mechanisms and the nature of the pronouncements issued in them will be defined and approved by the Decision of the Common Market Council.

CHAPTER III CONSULTATIONS Article 3

Application regime

The Common Market Council may establish mechanisms for the application of advisory opinions to the Permanent Review Tribunal by defining its scope and procedures.

CHAPTER IV DIRECT NEGOTIATIONS Article 4

Negotiations

States parties to a dispute shall seek to resolve it, first of all, through direct negotiations.

Article 5

Procedure and deadline

1. Direct negotiations shall not, except agreement between the parties to the dispute, exceed a period of fifteen (15) days from the date on which one of them informed the other of the decision to initiate the dispute.

2. The States parties to a dispute shall inform the Common Market Group, through the Administrative Secretariat of Mercosur, of their efforts during the negotiations and the results thereof.

CHAPTER V INTERVENTION OF THE MERCATE GROUP ASUN Article 6

Optional procedure to GMC

1. If direct negotiations do not reach an agreement or if the dispute is resolved only partially, any of the States parties to the dispute may directly initiate the arbitration procedure provided for in Chapter Vl.

2. Without prejudice to the provisions of the previous paragraph, States parties to the dispute may, in common agreement, submit it to the Common Market Group.

(i) In this case, the Common Market Group will assess the situation, giving opportunity to the parties to the dispute to issue their respective positions by requiring, where necessary, the advice of selected experts from the list referred to in Article 43 of the present Protocol.

(ii) The costs incurred by this advice shall be borne in equal amounts by the State party to the dispute or in the proportion determined by the Common Market Gnupo.

3. The dispute may also be brought to the consideration of the Common Market Group if another State, which is not a party to the dispute, justifiedly required such a procedure at the end of direct negotiations. In that case, the arbitrary procedure initiated by the requesting State Party shall not be interrupted, except agreement between the States parties to the dispute.

Article 7

Attributions of GMC

1. If the dispute is submitted to the Common Market Group by the States parties to the dispute, it shall make recommendations which, if possible, shall be expressed and detailed for the settlement of the dispute.

2. If the dispute is taken into consideration by the Common Market Group at the request of a State not a party to it, the Common Market Group may make comments or recommendations thereon.

Article 8

Period for GMC intervention and pronunciation

The procedure described in this Chapter shall not be extended for a period exceeding thirty (30) days from the date of the meeting at which the dispute was submitted for consideration by the Common Market Group.

CHAPTER VL ARBITRAL PROCEDURES AD HOC Article 9

Beginning of the arbitration stage

1. Where the dispute could not have been settled in accordance with the procedures set out in Chapters IV and V, any of the States parties to the dispute may inform the Mercosur Administrative Secretariat of its decision to resort to the arbitration procedure set out in this Chapter.

2. The Mercosur Administrative Secretariat shall immediately notify the other or other States involved in the dispute and the Common Market Group.

3. The Administrative Secretariat of Mercosur will be responsible for administrative arrangements that are required for the development of procedures.

Article 10

Composition of the Ad Hoc Arbitral Tribunal

1. The arbitral proceedings shall be brought before an Ad Hoc Court consisting of three (3) arbitrators

2. The arbitrators shall be appointed as follows:

(i) Each State Party to the dispute shall designate one (1) arbitrator holder of the list provided for in Article 11.1 within fifteen (15) days, from the date on which the Mercosur Administrative Secretariat has communicated to the States parties to the dispute the decision of one of them to resort to arbitration.

At the same time, an alternate arbitrator shall designate from the same list to replace the holder in the event of his inability or excuse at any stage of the arbitral proceedings.

(ii) If one of the States parties to the dispute had not appointed its arbitrators within the time limit specified in paragraph 2 (i), they shall be appointed by lot, by the Mercosur Administrative Secretariat within the term of two (2) days, counted from the expiry of that time, among the arbitrators of that State of the list provided for in Article 11.1.

3. The President arbitrator shall be appointed as follows:

(i) The States parties to the dispute shall jointly designate the third arbitrator, to be chaired by the Ad Hoc Arbitral Tribunal, of the list provided for in Article 11.2 (iii), within fifteen (15) days, from the date on which the Mercosur Administrative Secretariat has communicated to the States parties to the dispute the decision of one of them to resort to arbitration.

At the same time, an alternate arbitrator shall designate from the same list to replace the holder in the event of his or her incapacity or excuse at any stage of the arbitral proceedings.

The President and his alternate may not be nationals of the States parties to the dispute

(ii) If there is no agreement between the States parties to the dispute to elect the third arbitrator, within the specified time limit, the Administrative Secretariat of Mercosur, at the request of any of them, shall proceed to designate it by lot from the list of Article 11.2(iii), excluding the nationals of the States parties to the dispute.

(iii) Persons designated to act as third arbitrators shall be liable within a maximum of three (3) days from the notification of their designation, on their acceptance to act in a dispute

4. The Mercosur Administrative Secretariat shall notify the arbitrators of their designation.

Article 11

Lists of arbitrators

1. Each State Party shall designate twelve (12) arbitrators, who shall include a list to be registered with the Mercosur Administrative Secretariat. The designation of the arbitrators, together with the detailed curriculum vitae of each of them, shall be notified simultaneously to the other States Parties and the Administrative Secretariat of Mercosur.

(i) Each State Party may request clarification on persons designated by other States Parties to integrate the list referred to in the preceding paragraph within thirty (30) days from such notification.

(ii) The Administrative Secretariat of Mercosur shall notify the States Parties of the consolidated list of arbitrators of Mercosur, as well as its successive amendments.

2. Each State Party shall also propose four (4) candidates to integrate the list of third arbitrators. At least one of the arbitrators indicated by each State party for this list shall not be a national of any of the Mercosur States Parties.

(i) The list should be notified to the other States Parties through the Pro Tempore Presidency, accompanied by the curriculum vitae of each of the proposed candidates.

(ii) Each State Party may seek clarification of the persons proposed by other States Parties or submit justified objections to the candidates indicated, in accordance with the criteria set out in article 35, within thirty (30) days after such proposals are notified to it.

Objections should be communicated through the Pro Tempore Presidency to the proposing State Party. If, within a period not exceeding thirty (30) days of notification, no solution shall be reached, the objection shall prevail.

(iii) The consolidated list of third-party arbitrators and their successive modifications, accompanied by the curriculum vitae of the arbitrators, shall be communicated by the Pro Tempore Presidency to the Mercosur Administrative Secretariat, which shall register and notify the States Parties.

Article 12

Representatives and advisers

The States Parties to the dispute shall designate their representatives to the Ad Hoc Arbitral Tribunal and may also designate advisers for the defence of their rights.

Article 13

Unification of representation

If two or more States Parties maintain the same position in a dispute, they may unify their representation before the Ad Hoc Arbitral Tribunal and designate an arbitrator of common agreement, within the time limit set forth in Article 10.2(i).

Article 14

Object of controversy

1. The object of the dispute shall be determined by the submission and response writings presented to the Ad Hoc Arbitral Tribunal, which could not be subsequently extended.

2. The approaches that the parties make in the writings mentioned in the previous numeral will be based on the issues that were considered in the previous stages, covered by this Protocol and the Annex to the Ouro Preto Protocol.

3. The States parties to the dispute shall report to the Arbitral Tribunal Ad Hoc in the writings referred to in paragraph 1 of this article on the instances before the arbitral proceedings and shall make a statement of the factual and lawful grounds of their respective positions.

Article 15

Interim measures

1. The Ad Hoc Arbitral Tribunal may, at the request of the party concerned and to the extent that there are substantial presumptions that the maintenance of the situation may cause serious and irreparable damage to one of the parties to the dispute, issue the provisional measures it deems appropriate to prevent such damage.

2. The Court may at any time terminate such measures.

3. In the event that the award was subject to review, the provisional measures that had not been left without effect before the award was issued shall be maintained until its treatment at the first meeting of the Permanent Review Tribunal, which shall decide on its continuity or cessation.

Article 16

Arbitral award

The Arbitral Tribunal Ad Hoc shall issue the award within a period of sixty (60) days, extended by decision of the Tribunal for a period of up to thirty (30) days, counted from the communication made by the Mercosur Administrative Secretariat to the parties and to the other arbitrators, informing the acceptance by the arbitrator President of his designation.

CHAPTER VLI PROCEDURES Article 17

Revision appeal

1. Any of the parties to the dispute may submit a review appeal to the Permanent Review Tribunal, against the award of the Ad Hoc Arbitral Tribunal within a period not exceeding fifteen (15) days from the notification thereof.

2. The remedy shall be limited to the questions of law dealt with in the dispute and the legal interpretations developed in the award of the Ad Hoc Arbitral Tribunal.

3. The awards of the Ad Hoc Tribunals issued on the basis of the principles ex aequo et bono shall not be subject to review.

4. The Administrative Secretariat of Mercosur shall be responsible for any administrative arrangements entrusted to it for the development of the procedures and shall keep the States parties to the dispute and the Common Market Group informed.

Article 18

Composition of the Permanent Review Tribunal

1. The Permanent Review Tribunal shall consist of five (5) arbitrators.

2. Each State Party of Mercosur shall designate one (1) arbitrator and its alternate for a period of two (2) years, renewable for no more than two consecutive periods.

3. The fifth arbitrator, who shall be appointed for a period of three (3) non-renewable years except under contract of the States Parties, shall be unanimously elected from the States Parties, from the list referred to in this numeral, at least three (3) months before the expiration of the term of office of the fifth arbitrator in exercise. Such arbitrator shall have the nationality of any of the States Parties to Mercosur. All this without prejudice to the provisions of paragraph 4 of this article.

Not achieving unanimity, the designation shall be by lot to be made by the Mercosur Administrative Secretariat among the members of that list, within two (2) days of the expiration of that period.

The list for the appointment of the fifth arbitrator will consist of eight (8) members. Each State Party shall propose two (2) members to be nationals of the Mercosur countries.

4. States Parties may, in common agreement, define other criteria for the appointment of the fifth arbitrator.

5. At least three (3) months before the termination of the arbitrator ' s mandate, the States Parties shall manifest themselves in respect of their renewal or propose new candidates.

6. In the event of the expiry of the period of action of an arbitrator who is in a dispute, the arbitrator shall remain in office until its conclusion.

7. The procedures described in this article shall apply, as appropriate, to the provisions of article 11.2.

Article 19

Permanent availability

The members of the Permanent Review Tribunal, once they accept their designation, shall be available on a permanent basis to act when convened.

Article 20

Functioning of the Tribunal

1. When the dispute involves two States Parties, the Tribunal shall consist of three (3) arbitrators. Two (2) arbitrators shall be nationals of each State party to the dispute, and the third party to the Presidency shall be appointed, by drawing lots to be carried out by the Director of the Administrative Secretariat of Mercosur, among the remaining arbitrators who are not nationals of the States parties to the dispute. The President ' s appointment shall be made on the day following the date on which the Court shall be constituted for all purposes:

2. When the dispute involves more than two States parties, the Permanent Review Tribunal shall consist of five (5) arbitrators.

3. States Parties may, in common agreement, define other criteria for the functioning of the Tribunal set out in this article.

Article 21

Response of the review and time limit for the award

1. The other party to the dispute shall have the right to reply to the remedy of review filed within the period of fifteen (15) days of notification of the submission of such a remedy.

2. The Permanent Review Tribunal shall rule on the appeal within a maximum period of thirty (30) days from the submission of the reply referred to in the previous numeral or the expiry of the deadline for the submission, as the case may be. By decision of the Tribunal the period of thirty (30) days may be extended for fifteen (15) more days.

Article 22

Scope of pronunciation

1. The Permanent Review Tribunal may confirm, modify or revoke the legal grounds and decisions of the Ad Hoc Arbitral Tribunal.

2. The award of the Permanent Review Tribunal shall be final and shall prevail over the award of the Ad Hoc Arbitral Tribunal.

Rule 23

Direct access to the Permanent Review Tribunal

1. The parties to a dispute, concluded by the procedure set out in articles 4 and 5 of this Protocol, may expressly agree to submit themselves directly and in the sole instance to the Permanent Review Tribunal, in which case it shall have the same powers as an Ad Hoc Arbitral Tribunal and shall, as appropriate, rule 9, 12, 13, 14, 15 and 16 of this Protocol.

2. In this case the awards of the Permanent Review Tribunal shall be binding on the States parties to the dispute on the basis of the receipt of the respective notification, shall not be subject to review appeal and shall have in relation to the parties the force of judgement.

Article 24

Exceptional and urgent measures

The Common Market Council may establish special procedures to deal with exceptional cases of urgency, which may cause irreparable damage to the Parties.

CHAPTER VIII ARBITRAL LAUDS Article 25

Adoption of awards

The awards of the Ad Hoc Arbitral Tribunal and those of the Permanent Review Tribunal shall be adopted by a majority, shall be founded and subscribed by the President and by the other arbitrators. The arbitrators may not cast votes in dissent and shall maintain the confidentiality of the vote. The deliberations will also be confidential and will be maintained at all times.

Article 26

Obligatority of awards

1. The awards of the Arbitral Tribunals Ad Hoc are binding on the States parties to the dispute on the basis of their notification and shall have, in relation to them, the force of a judgement if the period provided for in Article 17.1 has elapsed to lodge the remedy for review, it shall not be filed.

2. The awards of the Permanent Review Tribunal are inapplicable, binding on the States parties to the dispute on the basis of their notification and shall have, in relation to them, the force of judgement.

Article 27

Obligation of enforcement of awards

The awards must be fulfilled in the manner and with the extent to which they were rendered. The adoption of compensatory measures under this Protocol does not exempt the State party from its obligation to comply with the award.

Rule 28

Clarification remedy

1. Any State Party to the dispute may request clarification of the award of the Ad Hoc Arbitral Tribunal or the Permanent Review Tribunal and the manner in which the award shall be enforced within fifteen (15) days of its notification.

2. The respective court shall issue an appeal within fifteen (15) days of the submission of the application and may grant an additional period for the performance of the award.

Rule 29

Period and modality of compliance

1. The awards of the Ad Hoc Tribunals or those of the Permanent Review Tribunal, as appropriate, shall be fulfilled within the time limit established by the respective courts. If a term is not determined, the awards shall be fulfilled within thirty (30) days of the date of notification.

2. In the event that a State party lodges the review appeal, the performance of the award of the Ad Hoc Arbitral Tribunal shall be suspended during the review proceedings.

3. The State party obliged to comply with the award shall inform the other party to the dispute as well as the Common Market Group, through the Mercosur Administrative Secretariat, of the measures it shall take to comply with the award, within 15 days of its notification.

Article 30

Divergences on the performance of the award

1. In the event that the State benefited by the award understands that the measures taken do not comply with the award, it shall have a period of thirty (30) days since the adoption of such measures, to bring the situation to the consideration of the Ad Hoc Tribunal or the Permanent Review Tribunal, as appropriate.

2. The respective Tribunal shall have a period of thirty (30) days from the date on which it became aware of the situation, to resolve the issues referred to in the previous numeral.

3. If it is not possible to convene the Intervening Arbitral Tribunal, another shall be made up of the necessary alternates referred to in articles 10.2 and 10.3.

CHAPTER IX Rule 31

Compensatory measures

1. If a State party to the dispute does not fully or partially comply with the award of the Arbitral Tribunal, the other party to the dispute shall have the power, within the period of one (1) year, from the day after the expiration of the period referred to in article 29.1, and irrespective of the application of the procedures of article 30, to initiate the application of temporary compensatory measures, such as the suspension of concessions or other equivalent obligations, aimed at obtaining the award.

2. The State party benefiting from the award shall first seek to suspend the equivalent concessions or obligations in the same sector or sectors concerned. In the event that it deems the suspension in the same sector impracticable or ineffective, it may suspend concessions or obligations in another sector, and should indicate the reasons underlying that decision.

3. The compensatory measures to be taken shall be formally informed by the State party that they shall apply them, with a minimum advance of fifteen (15) days, to the State party which must comply with the award.

Rule 32

Faculty of questioning compensatory measures

1. If the State party benefited from the award applied compensatory measures as it considered insufficient the performance of the award, but the State party obliged to comply with the award considered that the measures it adopted were satisfactory, the latter would have a period of fifteen (15) days from the notification provided for in article 31.3, to take the situation to the consideration of the Arbitral Tribunal Ad Hoc or the Permanent Review Tribunal, as appropriate, which would have a period of thirty (30) days in respect.

2. In the event that the State party obliged to comply with the award considers the compensatory measures applied excessive, it may request, up to 15 (15) days after the application of such measures, that the Ad Hoc Tribunal or the Permanent Review Tribunal, as appropriate, be pronounced in this regard, within a period not exceeding thirty (30) days from its constitution.

(i) The Tribunal shall rule on the compensatory measures taken. It will assess, as the case may be, the groundwork for applying them in a sector other than the affected one, as well as their proportionality with respect to the consequences arising from the breach of the award.

(ii) In analysing proportionality, the Tribunal shall take into consideration, inter alia, the volume and/or value of trade in the affected sector, as well as any other injury or factor that has affected the determination of the level or amount of compensatory measures.

3. The State party which took the compensatory measures shall bring them into line with the decision of the Tribunal within a maximum of 10 days, unless the Tribunal establishes another period.

CHAPTER X COMMON PROVISIONS TO CHAPTERS VI and Vil Article 33

Jurisdiction of the courts

States Parties declare that they recognize as mandatory, ipso facto and without special agreement, the jurisdiction of the Ad Hoc Arbitral Tribunals that in each case are constituted to know and resolve the disputes referred to in this Protocol, as well as the jurisdiction of the Permanent Review Tribunal to know and resolve disputes in accordance with the powers conferred upon it by this Protocol.

Rule 34

Applicable law

1. The Ad Hoc Arbitration Tribunals and the Permanent Review Tribunal shall decide the dispute on the basis of the Treaty of Asunción, the Ouro Preto Protocol, the protocols and agreements concluded under the Treaty of Asunción, the decisions of the Common Market Council, the resolutions of the Common Market Group and the directives of the Mercosur Trade Commission and the principles and provisions of international law applicable to the subject matter.

2. This provision does not restrict the authority of the Ad Hoc Arbitral Tribunals or the Permanent Review Tribunal when acting in a direct and unique instance, in accordance with article 23 of the decision of the ex aequo et bono dispute, if the parties so agree.

Rule 35

Qualification of arbitrators

1. The arbitrators of the Ad Hoc Arbitral Tribunals and those of the Permanent Review Tribunal shall be jurists of recognized competence in matters that may be the subject of disputes and have knowledge of the normative set of Mercosur.

2. The arbitrators shall observe the necessary impartiality and functional independence of the Central or direct Civil Service of the States Parties and have no interest whatsoever in the dispute. They shall be appointed according to their objectivity, reliability and good judgment.

Article 36

Costs

1. The costs and fees incurred by the arbitrators ' activities shall be met by the country that designates them and the cats of the President of the Ad Hoc Arbitral Tribunal shall be paid by equal shares by the States parties to the dispute, unless the Tribunal decides to distribute them in a different proportion.

2. The costs and fees incurred by the arbitrators of the Permanent Review Tribunal shall be equally settled by the States parties to the dispute, unless the Tribunal decides to distribute them in a different proportion.

3. Expenditures referred to in the preceding paragraphs may be paid through the Mercosur Administrative Secretariat. Payments may be made through a Special Fund that may be established by States Parties upon depositing contributions relating to the budget of the Administrative Secretariat, in accordance with Article 45 of the Ouro Preto Protocol, or at the time of commencement of the procedures provided for in Chapters VI or VIl of this Protocol. The Fund shall be administered by the Mercosur Administrative Secretariat, which shall be held annually to the States Parties on its use.

Rule 37

Fees and other expenses

The fees, transfer expenses, accommodation, roads and other expenses of the arbitrators shall be determined by the Common Market Group.

Rule 38

Headquarters

The headquarters of the Permanent Review Tribunal will be the city of Asunción. However, for substantial reasons the Tribunal may meet, exceptionally, in other cities of Mercosur. Ad Hoc Arbitral Tribunals may meet in any city of Mercosur States Parties.

Chapter XI: Rule 39

Scope of application

The procedure set out in this Chapter shall apply to claims made by individuals (physical or legal persons) on the basis of the sanction or application, by any of the States Parties, of legal or administrative measures of restrictive, discriminatory or unfair competition, in violation of the Treaty of Assumption, of the Ouro Preto Protocol, of the protocols and agreements concluded under the Common Markets Agreement, of the Decisions of the Mercy.

Article 40

Start of the procedure

1. The individuals concerned shall formalize the claims before the National Section of the Common Market Group of the State Party where they have their habitual residence or the headquarters of their business.

2. Individuals must provide elements to determine the veracity of the violation and the existence or threat of injury, so that the claim is admitted by the National Section and to be evaluated by the Common Market Group and by the group of experts, if called.

Rule 41

Procedure

1. Unless the claim relates to an issue that has prompted the initiation of a dispute settlement procedure in accordance with Chapters IV to VIl of this Protocol, the National Section of the Common Market Group that has admitted the claim under Article 40 of this Chapter shall consult with the National Section of the Common Market Group of the State Party to which the violation is attributed in order to seek, through them, an immediate solution to the question raised. Such consultations shall be terminated automatically and without further action if the matter has not been resolved within fifteen (15) days after the communication of the claim to the State party to which the violation is attributed, unless the parties have decided another time limit.

2. After the consultations had been completed without a solution, the National Section of the Common Market Group will raise the demand without further formality to the Common Market Group.

Rule 42

Intervention of the Common Market Group

1. Received the claim, the Common Market Group will evaluate the requirements set out in article 40.2, on which the National Section was admitted, at the first meeting following its receipt. If you conclude that you are not meeting the necessary requirements to give it a course, you will reject the claim without further processing, and you must decide by consensus.

2. If the Common Market Group does not reject the claim, it will be considered accepted. In this case the Common Market Group will immediately proceed to convene a group of experts, which will have to issue a ruling on its origin in the improbable term of thirty (30) days after its designation.

3. Within this period, the panel of experts will give opportunity to the particular claimant and to the States involved in the claim, to be heard and to present their arguments in a joint hearing.

Rule 43

Expert group

1. The group of experts referred to in article 42.2 shall consist of three (3) members designated by the Common Market Group or, in the absence of agreement on one or more experts, they shall be elected by a vote to be made by States Parties among the members of a list of twenty-four (24) experts. The Administrative Secretariat of Mercosur shall notify the Common Market Group of the name of the expert or of the experts who have received the greatest number of votes. In the latter case, and unless otherwise decided by the Common Market Group, one (1) of the designated experts shall not be a national of the State against which the claim was made, nor of the State in which the individual formalized his claim, in the terms of article 40.

2. In order to constitute the roster of experts, each State Party shall designate six (6) persons of recognized competence in matters that may be the subject of the claim. This list will be registered with the Mercosur Administrative Secretariat.

3. Costs derived from the performance of the expert group shall be borne in the proportion determined by the Common Market Group or, in the absence of agreement, in equal amounts by the parties directly involved in the claim.

Rule 44

Expert group opinion

1. The expert group will raise its views to the Common Market Group.

(i) If the unanimous Views verify the origin of the claim made against a State Party, any other State Party may require remedial action or annulment of the measures in question. If its request does not prosper within a period of fifteen (15) days, the State Party which did so may resort directly to the arbitral proceedings under the conditions set out in Chapter VI of this Protocol.

(ii) Received the opinion that it considers improper the claim unanimously, the Common Market Group shall immediately terminate the claim within the scope of this Chapter.

(iii) In the event that the expert group does not reach unanimity to issue the opinion, it will raise its different conclusions to the Common Market Group, which will immediately terminate the claim under this Chapter.

2. The finalization of the claim by the Common Market Group, in the terms of subparagraphs (ii) and (iii) of the previous numeral, shall not prevent the claimant State Party from launching the procedures provided for in Chapters IV to VI of this Protocol.

CHAPTER XII GENERAL PROVISIONS Rule 45

Transaction or withdrawal

At any stage of the proceedings, the party presenting the dispute or the claim may desist from the dispute, or the parties involved may reach a transaction, with the dispute or the claim concluded in both cases. The withdrawals or transactions must be communicated through the Mercosur Administrative Secretariat to the Common Market Group, or to the appropriate Tribunal, as appropriate.

Rule 46

Confidentiality

1. All documents submitted in the scope of the procedures provided for in this Protocol are reserved for the parties to the dispute, except for arbitral awards.

2. At the discretion of the National Section of the Common Market Group of each State Party and where this is necessary for the preparation of the positions to be submitted to the Tribunal, such documents may be made available exclusively to the sectors with interest in the matter.

3. Notwithstanding the provisions of paragraph 1, the Common Market Council shall regulate the mode of dissemination of the written and presentations of the disputes already concluded.

Rule 47

Regulation

The Common Market Council shall approve the regulation of this Protocol within sixty (60) days of its entry into force.

Rule 48

Target

1. All deadlines set forth in this Protocol are peremptory and shall be counted for days from the day after the act or act referred to. However, if the expiration of the time limit for submitting a written or performing an errand does not occur on a working day at the headquarters of the Mercosur Administrative Secretariat, the submission of the writing or performance of the proceedings must be made on the first working day immediately after that date.

2. Notwithstanding the provisions of the previous paragraph, all time limits provided for in this Protocol may be amended in common by the parties to the dispute. The deadlines for the proceedings before the Ad Hoc Arbitral Tribunals and the Permanent Review Tribunal may be amended when the parties to the dispute so request the Tribunal concerned and grant it.

CHAPTER XIII TRANSITORY PROVISIONS Rule 49

Initial reports

States Parties shall make the first designations and notifications provided for in articles 11, 18 and 43.2 within thirty (30) days of the entry into force of this Protocol.

Rule 50

Controversies pending

The disputes under way, initiated in accordance with the regime of the Protocol of Brasilia, shall be governed exclusively by it until its complete conclusion.

Rule 51

Rules of procedure

1. The Permanent Review Tribunal shall adopt its own Rules of Procedure within thirty (30) days after its constitution which shall be approved by the Council of the Common Market.

2. The Ad Hoc Arbitration Tribunals shall adopt their own rules of procedure, taking as a reference the Model Rules to be approved by the Common Market Council.

3. The rules referred to in the preceding numerals of this article shall ensure that each of the parties to the dispute has full opportunity to be heard and to present its arguments and ensure that the proceedings are conducted expeditiously.

CHAPTER XIV FINAL PROVISIONS Rule 52

Vigilance and deposit

1. This Protocol, an integral part of the Treaty of Assumption, shall enter into force on the thirtieth day after the deposit of the fourth instrument of ratification.

2. The Republic of Paraguay shall be the depositary of this Protocol and of the instruments of ratification and shall notify the other States Parties of the date of deposits of such instruments by sending a duly authenticated copy of this Protocol to the other States Parties.

Rule 53

System review

Before the conclusion of the process of convergence of the common external tariff, the States Parties shall undertake a review of the current dispute settlement system in order to adopt the Permanent Dispute Settlement System for the Common Market referred to in paragraph 3 of Annex III to the Treaty of Assumption.

Rule 54

Accession or denunciation ipso jure

1. Adherence to the Treaty of Assumption shall mean ipso jure, accession to this Protocol.

2. The denunciation of this Protocol shall mean ipso jure, the denunciation of the Treaty of Asunción.

Rule 55

Derogation

1. The present Protocol derogates from its entry into force the Protocol of Brasilia for Dispute Settlement, signed on 17 December 1991 and repeals the Regulations of the Protocol of Brasilia, Decision CMC 17/98.

2. However, as long as disputes under the Protocol of Brasilia are not fully concluded, and until the procedures provided for in Article 49 are completed, the Protocol of Brasilia and its Rules of Procedure will continue to apply, as appropriate.

3. The references to the Protocol of Brasilia made in the Protocol of Ouro Preto and its Annex shall be deemed referred to this Protocol as appropriate.

Rule 56

Languages

They shall be official languages in all procedures provided for in this Protocol by Spanish and Portuguese.

Made in the city of Olivos, Province of Buenos Aires, Argentine Republic, on the eighteenth day of the month of February of the year two thousand two in an original in the Spanish and Portuguese languages, both texts being equally authentic.

(Signed)

Republic of Argentina

Eduardo DUHALDE

Carlos RUCKAUF

(Signed)

For the Federal Republic of Brazil

Fernando Henrique CARDOSO

Celso LAFER

(Signed)

For the Republic of Paraguay

Luis GONZALEZ MACCHI

José Antonio MORENO RUFFINELLI

(Signed)

For the Eastern Republic of Uruguay

José BATLLE IBAÑEZ

Didier OPERTTI