ACUERDOS Law 25.841 Approve a Framework Agreement on the Environment of MERCOSUR, signed in Asunción. Sanctioned: November 26, 2003. Enacted: January 9, 2004.

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

ARTICLE 1 Approve the MARCO AGREEMENT ON MERCOSUR'S ENVIRONMENT, signed in REREPUBLICA DEL PARAGUAY el on 22 June 2001, which consists of ONCE (11) articles and UN (1) annex, 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, TO THE VEINTISEIES OF THE MONTH OF NOVEMBER OF THE YEAR DOS MIL TRES.

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EDUARDO O. CHANGE. . MARCELO G. LOPEZ ARIAS. . Eduardo D. Rollano. . Juan Estrada.

MARCO AGREEMENT ON ENVIRONMENT OF MERCOSUR

PREAMBULO

The Argentine Republic, the Federal Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, henceforth known as the States Parties:

RESALTING the need to cooperate for the protection of the environment and the sustainable use of natural resources, with a view to achieving better quality of life and sustainable economic, social and environmental development;

Agreed to the benefits of civil society participation in the protection of the environment and the sustainable use of natural resources;

RECOGNIZING the importance of cooperation among States parties with the objective of supporting and promoting the implementation of their international environmental commitments, noting existing national legislation and policies;

RECALLING the principles of sustainable development envisaged in Agenda 21, adopted at the United Nations Conference on Environment and Development in 1992;

CONSIDERING that trade and environmental policies should be complemented to ensure sustainable development within MERCOSUR;

Agreed to the importance of a legal framework that facilitates the effective protection of the environment and the sustainable use of the natural resources of States parties.

ACUERDAN:

CHAPTER I

Principles

Art. 1 States parties reaffirm their commitment to the principles set out in the 1992 Rio Declaration on Environment and Development.

Art. 2° States Parties shall consider implementing those principles of the 1992 Rio Declaration on Environment and Development, which have not been the subject of international treaties.

Art. 3rd In their actions to achieve the object of this Agreement and implement its provisions, the States Parties shall, inter alia, be guided by:

(a) Promotion of environmental protection and more effective use of available resources through sectoral policy coordination, based on principles of gradualness, flexibility and balance;

(b) Incorporation of the environmental component into sectoral policies and inclusion of environmental considerations in decision-making within MERCOSUR to strengthen integration;

(c) Promotion of sustainable development through mutual support among the environmental and economic sectors, avoiding measures that restrict or distort, arbitrarily or unjustifiedly, the free movement of goods and services within MERCOSUR;

(d) Priority and comprehensive treatment of the causes and sources of environmental problems;

(e) Promoting effective participation of civil society in addressing environmental issues; and

(f) Promoting the internalization of environmental costs through the use of economic and regulatory management instruments.

CHAPTER II

Object

Art. 4° This Agreement is aimed at sustainable development and environmental protection, through the articulation of economic, social and environmental dimensions, contributing to a better quality of the environment and the lives of the population.

CHAPTER III

Cooperation in Environmental Matters

Art. 5° States Parties shall cooperate in the implementation of international environmental agreements to which they are a party. Such cooperation may include, where appropriate, the adoption of common policies for the protection of the environment, the conservation of natural resources, the promotion of sustainable development, the submission of joint communications on issues of common concern and the exchange of information on national positions in international environmental forums.

Art. 6° The States Parties will deepen the analysis of the environmental problems of the subregion with the participation of relevant national agencies and civil society organizations, with the following actions to be implemented:

(a) To increase the exchange of information on environmental laws, regulations, procedures, policies and practices as well as their social, cultural, economic and health aspects, in particular those that may affect trade or competitiveness conditions within MERCOSUR;

(b) Incentivize national environmental policies and instruments, seeking to optimize environmental management;

(c) To seek the harmonization of environmental legislation, considering the different environmental, social and economic realities of MERCOSUR countries;

(d) Identify sources of financing for the development of the capacities of States Parties, in order to contribute to the implementation of this Agreement;

(e) To contribute to the promotion of environmentally sound and safe working conditions so that, in the context of sustainable development, it is possible to improve quality of life, social welfare and employment generation;

(f) To contribute to the proper and timely consideration of relevant environmental aspects by other MERCOSUR forums and bodies;

(g) Promoting the adoption of policies, productive processes and non-degrading services in the environment;

(h) To encourage scientific research and the development of clean technologies;

(i) Promoting the use of economic tools to support the implementation of policies for the promotion of sustainable development and environmental protection;

(j) To encourage the harmonization of legal and institutional guidelines with a view to preventing, controlling and mitigating environmental impacts in States parties, with particular reference to border areas;

(k) To provide, in a timely manner, information on disasters and environmental emergencies that may affect other States parties, and where possible, technical and operational support;

(l) To promote formal and non-formal environmental education and to promote knowledge, behavioural habits and integration of values geared to the transformations needed to achieve sustainable development within MERCOSUR;

(m) To consider cultural aspects, where appropriate, in environmental decision-making processes; and

(n) develop sectoral agreements, on specific topics, as necessary for the achievement of the object of this Agreement.

Art. 7° The States Parties shall agree on working guidelines that cover the thematic areas envisaged as Annex to this instrument, which are of a enunciative nature and will be developed in line with the MERCOSUR environmental work agenda.

CHAPTER IV

General provisions

Art. 8° Disputes between States parties regarding the application, interpretation or non-compliance with the provisions of this Agreement shall be resolved through the dispute settlement system in force in MERCOSUR.

Art. 9° This Agreement shall last indefinitely and shall enter into force within 30 days of deposit of the fourth instrument of ratification.

Art. 10° The Republic of Paraguay shall be the depositary of this Agreement and other instruments of ratification.

Art. 11° The Republic of Paraguay shall notify the Governments of other States Parties of the date of deposit of the instruments of ratification and of the entry into force of this Agreement.

Made in the city of Asunción on 22 June 2001, in an original, in the Portuguese and Spanish languages, both texts being equally authentic.

Annex

THEMATIC AREAS

1. Sustainable management of natural resources

1.a. wildlife

1.b. forests

1.c. Protected areas

1.d. biodiversity

1.e. biosecurity

1.f. Water resources

1.g. fish and fishery resources

1.h. soil conservation

2. Quality of life and environmental planning

2.a. basic sanitation and drinking water

2.b. urban and industrial wastes

2.c. Hazardous waste

2.d. Hazardous substances and products

2.e. protection of the atmosphere/air quality

2.f. land use planning

2.g. urban transport

2.h. Renewable sources and/or energy alternatives

3. Environmental policy instruments

3.a. Environmental legislation

3.b. economic instruments

3.c. Education, information and environmental communication

3.d. Environmental control instruments

3.e. Environmental Impact Assessment

3.f. Environmental accounting

3.g. Environmental management of companies

3.h. Environmental technologies (research, processes and products)

3.i. information systems

3.j. Environmental emergencies

3.k. valuation of environmental products and services

4. Environmentally sustainable productive activities

4.a. Ecotourism

4.b. sustainable agricultural

4.c. Business environmental management

4.d. Sustainable forest management

4.e. Sustainable fishing