DECREE NO 4,598, DE February 18, 2003.

Disposes on the implementation of the Economic Supplementation Agreement no 54, between the Governments of the Federative Republic of Brazil, the Argentine Republic, the Republic of Paraguay, the Eastern Republic of Uruguay and the United States Mexicans, July 5, 2002.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution that confers you the art. 84, inciso IV, of the Constitution, and

Considering that the 1980 Treaty of Montevideo, which created the Latin American Integration Association (ALADI), firmed by Brazil on August 12, 1980 and approved by the National Congress, through the Legislative Decree in the 66, of November 16, 1981, provides for the modality of Economic Supplementation Agreement ;

Considering that the Plenipotentiaries of the Federative Republic of Brazil, the Argentine Republic, the Republic of Paraguay, the Eastern Republic of Uruguay and the United Mexican States, based on the Treaty of Montevideo de 1980, signed, on July 5, 2002, in Buenos Aires, the Economic Supplementation Agreement in the 54, between the Governments of the Federative Republic of Brazil, the Argentine Republic, the Republic of Paraguay, the Eastern Republic of Uruguay and the States United Mexicans ;

DECRETA:

Art. 1 The Economic Supplementation Agreement in the 54, between the Governments of the Federative Republic of Brazil, the Argentine Republic, the Republic of Paraguay, the Eastern Republic of Uruguay and the United Mexican States, apensed by copy to the present Decree, will be executed and fulfilled as entirely as it contains.

Art. 2 This Decree goes into effect on the date of its publication.

Brasilia, February 18, 2003 ; 182 of Independence and 115 of the Republic.

LUIZ INACIO LULA DA SILVA

Celso Luiz Nunes Amorim

ECONOMIC SUPPLEMENTATION AGREEMENT No 54 CONCLUDED BETWEEN THE STATES PARTS OF MERCOSUR AND THE UNITED STATES MEXICANS

The Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, States Parties to the Common Market of the South (MERCOSUR) and the United Mexican States, henceforth the Parties ;

CONSIDERING that it is necessary to strengthen and deepen the process of integration of Latin America in order to achieve the objectives provided for in the Treaty of Montevideo 1980 ;

That regional economic integration is one of the instruments available to Latin American countries to advance their economic and social development in order to ensure a better quality of life for their peoples ;

That it is critical to offer economic actors clear rules for the development of the exchange of goods and services, as well as for the promotion of investments between the member countries of MERCOSUR and the United Mexican States ;

That the present Agreement constitutes an important factor for the expansion of the trade exchange between MERCOSUR and the United Mexican States ;

CONVEEM IN

Celebrate the present Economic Supplementation Agreement between the States Parties to MERCOSUR and the United Mexican States of conformity with the established in the Treaty of Montevideo 1980 and the Council of Ministers' Resolution 2 Exteriors of the Latin American Free Trade Association (ALALC), as well as the following provisions:

OBJECTIVES

Article 1.-The present Agreement has for objectives:

a) Create a Free Trade Area by eliminating gravel, restraints and other obstacles that affect reciprocal trade in order to logran the expansion and diversification of trade exchange ;

b) Establish a legal framework that allows to offer security and transparency to economic agents of the Parties ;

c) Establish a normative framework to promote and boost reciprocal investments ;

d) Promote supplementation and economic cooperation.

COVERAGE OF THE AGREEMENT

Article 2.-

1.-Form part of this Economic Supplementation Agreement the following agreements:

-Agreements concluded or coming to be concluded by the United Mexican States with each of the States Parties to MERCOSUR under the Treaty of Montevideo 1980: United Mexican States-Argentine Republic ; United States Mexican-Federative Republic of Brazil ; United Mexican States-The Eastern Republic of Uruguay ;

-The Agreement on the automotive sector between MERCOSUR and the United Mexican States and their respective attachments ; and

-The Agreements that are concluded between MERCOSUR and the United Mexican States under this Agreement and the Treaty of Montevideo 1980.

2.-As of the date of signature of this Agreement, periodic negotiations shall be developed to extend and progressively deepen any of the agreements referred to in the preceding paragraph.

3.-Agreements included in the Annexes to this Agreement shall be governed by the provisions set out therein and shall remain in force until the implementation of the Free Trade Agreement between MERCOSUR and the United Mexican States.

ECONOMIC AND COMMERCIAL COOPERATION

Article 3.-In order to support actions aimed at incrementing trade exchanges of goods and services, the signatory Parties will stimulate the following initiatives among others:

a) The promotion of business meetings and other complementary activities that broaden trade and investment relations between the private sectors of the Parties ;

b) The fostering and support of commercial promotion activities such as: seminars, trade missions, symposia, trade fairs and exhibitions and industrial ;

c) The development of trade facilitation activities ; and

d) The exchange of information on trade policies.

ADMINISTRATION OF THE AGREEMENT

Article 4.-The administration of this Agreement shall be in charge of an Integrated Administrator Commission, for one part, by the Common Market Group of MERCOSUR and, on the other part, by the Office of Economic Affairs of the United Mexican States.

The Administrator Commission will approve its internal regulation and meet in an ordinary way twice a year.

The Administrator Commission will adopt its decisions by consensus.

MEMBERSHIP

Article 5.-This Agreement shall be open to the accession of the other member countries of the Latin American Integration Association, upon

VALIDITY

Article 6.-This Agreement shall enter into force thirty (30) days after all Parties communicate to the General Secretariat of ALADI compliance with the requirements required by their legislation for that purpose and shall be in effect until it is replaced by a Free Trade Agreement between MERCOSUR and the United Mexican States.

EMENDAS AND ADEM

Article 7.-The Parties shall, by consensus, be able to confer on any amendment or addition to this Agreement. Such amendments or additions will be formalized upon subscription of additional protocols or modification.

The amendments or additions to the Annexes to this Agreement shall be effected in accordance with the procedures provided for therein and shall enter into force for the Signator Parties in accordance with them agreed upon.

PROTOCOLIZATION AND DEPOSIT

Article 8.-The Parties shall instruct their representatives together with the Latin American Integration Association (ALADI) for this Agreement to be protocolized to the Association.

The General Secretariat of the Latin American Integration Association (ALADI) will be the depositary of this Agreement, from which it will deliver duly certified copies to the Parties.

IN DO WHAT subscribes to this Agreement in the city of Buenos Aires, at the five days of the month of July 2002, in an original in the Spanish and Portuguese languages, both of which are equally valid texts. (a) By the Government of the Argentine Republic: Carlos Ruckauf ; By the Government of the Federative Republic of Brazil: Celso Lafer ; By the Government of the Republic of Paraguay: José Antonio Moreno Ruffinelli ; By the Government of the East Republic of Uruguay: Didier Opertti. By The United States Mexican: Luis Ernesto Derbez Bautista.