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Decree No. 7147, April 1, 2010

Original Language Title: Decreto nº 7.147, de 1º de Abril de 2010

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DECREE NO. 7,147, OF 1º APRIL OF 2010.

Promuling the First Additional Protocol to the Economic Supplementation Agreement No. 59, signed between the Governments of the Republic of Argentina, of the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, States Parties to MERCOSUR, and the Governments of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, Paises-Members of the Andean Community, celebrated in Montevideo on October 18, 2004.

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

Considering that the Treaty of Montevideo from 1980, which created the Latin American Integration Association (ALADI), signed by Brazil on August 12, 1980 and promulgated by Decree No. 87,054 of March 23, 1982, provides for the modality of Economic Supplementation Agreement;

Whereas the Plenipotentiaries of the Argentine Republic, of the Republic Federative of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, States Parties to MERCOSUR, and the Republic of Colombia, the Republic of Ecuador, the Bolivarian Republic of Venezuela, Paises-Members of the Andean Community, on the basis of the Treaty of Montevideo of 1980, signed on October 18, 2004 the Economic Supplementation Agreement No. 59, promulgated by Decree No. 5,361, of January 31, 2005;

Considering that the Plenipotentiaries of the Argentine Republic, of the Federative Republic of the Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, States Parties to MERCOSUR, and the Republic of Colombia, the Republic of Ecuador, the Bolivarian Republic of Venezuela, Paises-Members of the Andean Community, on the basis of the Treaty of Montevideo of 1980, signed on October 18, 2004, in Montevideo, the First Additional Protocol to the Economic Supplementation Agreement No. 59;

Whereas the National Congress passed, by means of the Legislative Decree no 170, of May 14, 2009, the First Additional Protocol to the Agreement of Economic Complementation No. 59, signed between the Governments of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, States Parties to MERCOSUR, and the Governments of the Republic of Colombia, of the Republic of Ecuador and the Bolivarian Republic of Venezuela, Paises-Members of the Andean Community;

Whereas the instrument of ratification of the said Protocol was signed on May 27, 2009, the date on which the Agreement entered into force for Brazil, in the external legal plan;

DECRETA:

Art. 1st The First Additional Protocol to the Economic Supplementation Agreement No. 59, apensed by copy to the present Decree, it will be executed and fulfilled as entirely as it contains.

Art. 2nd are subject to the approval of the National Congress any acts that may result in revision of the said Agreement or that carries charges or gravy commitments to national heritage, in the terms of art. 49, inciso I, of the Constitution.

Art. 3rd This Decree enters in effect on the date of its publication.

Brasília, 1º April 2010; 189º of Independence and 122º of the Republic.

LUIZ INACIO LULA DA SILVA

Celso Luiz Nunes Amorim

ATA OF REATION

FIRST ADDITIONAL PROTOCOL TO THE ECONOMIC SUPPLEMENTATION AGREEMENT NO. 59, SIGNED

BETWEEN ARGENTINA, BRAZIL, PARAGUAY AND URUGUAY, STATES PARTS OF MERCOSUR AND THE

COLOMBIA, ECUADOR AND VENEZUELA, COUNTRIES-MEMBERS OF THE ANDINA COMMUNITY

In the city of Montevideo, at the twenty-six days of the month May of the year two thousand and five, the General Secretariat of the Latin American Integration Association (ALADI), in use of the colleges that gives it Resolution 30 of the Committee of Representatives, as a depositary of the signed Agreements and Protocols by the Governments of the member states of the Association, and of compliance with the established in its Article Third, makes the record:

First-Which found an error in the Portuguese version of the First Additional Protocol to the Economic Supplementation Agreement no 59, signed between the States Parties of MERCOSUR and Colombia, Ecuador and Venezuela, on October 18, 2004, in which it omitted to identify as?Article 7? the corresponding text.

Second-To to note that it was a transcription error, this General Secretariat intercaled, on page 2 of the Portuguese language version of the First Additional Protocol to the Economic Supplementation Agreement No. 59.?Article 7-? before the text that starts with?The part that receives the ...?

For that conste, this General Secretariat lavishments the present Rectification Act in place and on the date indicated, in an original, in the Portuguese and Spanish languages.

ECONOMIC COMPLEMENTATION AGREEMENT SIGNED BETWEEN THE GOVERNMENTS OF THE

REPUBLIC ARGENTINA, OF THE FEDERATIVE REPUBLIC OF BRAZIL, OF THE REPUBLIC OF PARAGUAY

And OF THE EASTERN REPUBLIC OF URUGUAY-STATES PARTS OF MERCOSUR AND THE GOVERNMENTS OF THE

DA VENEZUELA-MEMBER STATES OF THE ANDINA COMMUNITY

First Additional Protocol

SOLUTION REGIME OF CONTROVERSIES

CHAPTER I

PARTS AND SCOPE

Article 1-A Republic of Argentina, 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 Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, Member States-Members of the Andean Community, shall be named Signatary Parties. The?Contracting Parties? of the present Regime shall be MERCOSUR and the Paisels-Members of the Andean Community who sign the Agreement.

Article 2-The controversies that arise in relation to the interpretation, application or disfulfillment of the provisions contained in the Partial Scope of Economic Supplementation Agreement, concluded between MERCOSUR and the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela-(ACE N ° 59), henceforth named?Agreement? and of the instruments and protocols signed or which are signed in the framework of it shall be submitted to the Controversian Solution Procedure established in this Protocol.

Article 3-Notwithstanding the provisions of the Previous article The controversies arising in relation to the provisions of this Agreement, in the matters governed by the Marraquech Agreement by which the World Trade Organization was created (henceforth "WTO Agreement") and in the negotiated arrangements as per the even, they can be solved in one or other venue, the choice of the complaining party.

Once a procedure of solution of controversies according to the present Regime or with the WTO Agreement, the selected venue will exclude the other.

For the purposes of this Article, consider themselves to be initiated the procedures for solving controversies as per the Understanding Regarding Norms and Procedures by which the World Trade Organization Controls Solution is governed when the complaining party requests the integration of a panel in accordance with Article 6 of the mentioned Understanding.

Equally, consider themselves started the procedures for the solution of controversies as per the present Regime, once the solicitation of direct negotiations is presented. However, if you resort to the Administrative Commission, you will understand the procedure with the solicitation to convene the latter.

Article 4-For effect of the present Regime, may be parties to the controversy, henceforth termed? parts?, on the one hand, one or more States Parties to MERCOSUR and, by the other, one or more CAN Member States that sign this Agreement.

CAPITCHAPTER II

DIRECT NEGOTIATIONS

Article 5-The parties will seek to resolve the controversies to which Article 2 is referred to, by holding negotiations direct that allow to achieve a mutually satisfactory solution.

Direct negotiations will be conducted, in the case of MERCOSUR, through the Pro Tempore Presidency or by the National Coordinators of the Common Market Group, as the case may be, and in the case of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela by the national authority that each of the Member States designate, as the case may be, with the support of the General Secretariat of the Andina Community.

Direct talks will be able to be preceded by reciprocal consultations between the parties.

Article 6-To initiate the procedure, any of the parties will request in writing to the other party to conduct direct negotiations, specifying the grounds of the same, the factual circumstances and the legal grounds relating to the controversy, with copy to the remaining Signatary Parties, to the Pro Tempore Presidency of MERCOSUR and to the Presidency of the Andina Community Commission, through the General Secretariat of the Andean Community.

Article 7-A part that receives the request of holding direct negotiations should answer it within the ten (10) days later than the date of its receipt.

The parties will interchange the information necessary to facilitate direct negotiations and will confer on this information reserved treatment.

These negotiations will not be allowed to be prolonged by more than thirty (30) days, counted from the date of receipt of the formal request to start them, save when the parties decide to extend that deadline to the maximum of fifteen (15) additional days.

CAPITCHAPTER III

INTERVENTION OF THE ADMINISTRATING COMMISSION

Article 8-If within the time limit indicated in the third paragraph of Article 7 not if a mutually satisfactory solution is reached or if the controversy is resolved only in a partial manner, can the complaining party be able to request in writing that the Administrative Commission henceforth?Commission?, convene to discuss the matter or to proceed directly to arbitration.

The written request should include, in addition to the factual circumstances and the legal underpinnings related to the controversy, the provisions of the Agreement, Additional Protocols and instruments signed within the framework of the same, which consider themselves to be violated.

Article 9-A Commission is expected to gather within the following thirty (30) days, counted from the date of receipt by the Chair Pro Tempore of MERCOSUR and by the Presidency of the Andina Community Commission, through the General Secretariat of the Andean Community, of the solicitation referred to in the preceding Article.

If within the deadline set in this Article It is not possible to hold the meeting of the Commission or this does not pronounce as per Article 11, the claimant party may consider this step completed and request initiation of an arbitration procedure.

Article 10-A Commission will be able to accumulate by consensus two or more procedures concerning the cases you know, only when by their nature or eventual thematic linking, consider it expedient to examine them jointly.

Article 11-A Commission will evaluate the controversy and will give opportunity to the parties to expose their positions and, should it be necessary, provide additional information, with a view to reaching a mutually satisfactory solution.

The Commission will formulate the recommendations it estimates pertinent, to whose effect will have a time limit of thirty (30) days, counted from the date of its first meeting.

In its recommendations, the Commission will take into consideration the legal provisions of the Agreement, the instruments and Additional Protocols which it considers applicable and the relevant fact and law fundamentals.

Case does not arrive in the Commission for a mutually satisfactory solution or this does not issue its recommendation within the aforementioned time limit, it will be deemed to be terminated immediately at the due step in the this Chapter. The Commission, in its recommendation, will set the deadline for its adoption, won which, if the same has not been accepted by the parties or has been acquiesced only partially, the arbitral procedure will be allowed to begin.

When the Commission estimate needed the advice of Experts to formulate your recommendations, will order the participation of the same. In this case, you will have an additional 15 days to the deadline set out in the second paragraph of this Article to formulate your recommendation.

Experts should have to proven technical recognition and neutrality.

CAPITCHAPTER IV

ARBITRAL PROCEDURE

Article 12-When it is not possible to solve the controversy upon the application of the procedures laid down in Chapters II or III, or have won the deadlines set out in the Chapters mentioned without the corresponding trames having been fulfilled, any of the parties may request the commencement of the arbitral procedure, to the effect of which the effect will communicate such a decision to the other party, with copy to the remaining Signatary Parties, to the Pro Tempore Presidency of MERCOSUR and to the Presidency of the Commission of the Andean Community, through the General Secretariat of the Andina community, and for the General Secretariat of the ALADI.

Article 13-The parties declare to recognize as mandatory, ipso facto and without the need for special agreement, the jurisdiction of the Arbitral Tribunal to be constituted in each case to know and resolve the controversies to which the present Regime refers.

Article 14-Within 90 days of the entry into force of the Agreement, each of the Signatary Parties shall communicate each other to their list of arbitrators accompanied by the curriculum vitae detailed of each of them, to which will be conformed by ten (10) referees, two (2) of which will not be nationals of any of the Signatary Parties. The arbitrators should be a jurist of recognized competence in the subjects that may be the subject of controversy.

The Signatary Parties, within the fifteen (15) days counted from the date of receipt of the communication indicated in the paragraph previous, they will be able to request more information about the designated referees, which should be provided with the possible brevity.

Once met the deadline of fifteen days, the list will be deposited in the ALADI General Secretariat.

The list of arbitrators presented by una Part Signataria may not be objected to by the other Signatary Parties.

The ulterior modifications of the list will subject to the predicted in this Article.

Article 15-The Arbitral Tribunal in the face of which will trample the procedure, it will be composed of three (3) referees and will conform in the following manner:

( a) within the fifteen (15) days later than the communication to which Article 12 refers, the Parties shall designate an arbitrator and his alternate, chosen from among the list mentioned in Article 14;

b) within the same period, the parties shall designate by common agreement a third arbitrator of the said Article 14 list, which shall preside over the Arbitral Tribunal. This designation should fall in people who are not nationals of the parties;

c) if the assignments to which the inciso is referred to) do not take place within the expected timeframe, they will be effected by draw by the General Secretariat of the ALADI at the request of either party, the referees who integrate the mentioned list;

d) if the designation to which the inciso b refers is referred to, it will be effected by draw by the General Secretariat of the ALADI, at the request of any of the parties, among the non-national arbitrators of the parties that integrate the Article 14 list; and

e) of common Agreement, the parties will be able to assign arbitrators who do not fig. on the lists to which Article 14 is referred to.

The list of arbitrators will be the one constituted at the time of the beginning of the controversy, even if one of the Signatary Parts did not have communicated to your list. Without prejudice to the same, any Signatary Party may supplement it or modify it at any time without this affecting the designation of the arbitrators of the controversies that are ongoing.

The assignments predicted in the incisions a), b), (c), (d), and e) of the this Article should be communicated to the Contracting Parties and, in their case, to the General Secretariat of the ALADI.

The alternate members will replace the holder in the event of incapacity, escusa, impediment or suspicion, the latter, the latter, terms set out in the regulation of the present Regime.

Article 16-The members of the Arbitral Tribunal will act on a personal basis and not on the quality of representatives of the parties or of a Government. Therefore, the parties will refrain from giving them instructions and to exert on them any kind of influence in relation to the subjects submitted to the Arbitral Tribunal.

Article 17-When intervies in the same controversy various Parts Signatories, whether as claimants or claimants, they will be able to act before the Arbitral Tribunal in a joint or individual manner. In both cases they should agree the designation of a single common arbiter. If that designation does not take place, it will apply that established in Article 15.

Article 18-By request of a party, the Arbitral Tribunal will be able to accumulate two or more procedures, whenever there is identity as to matter and pretension.

Article 19-The Arbitral Tribunal will fix its headquarters, in each case, in the territory of one of the parties in the controversy. In all cases, the laude is to be issued in the territory of the party that must comply with it.

Article 20-A Commission will lay down the rules of procedure of the Arbitral Tribunals that consider necessary for the best application of this Regime, which shall ensure the parties the opportunity to be heard and shall ensure that the procedure is carried out in an expeditious manner. For the drafting of the rules, the Commission will take into consideration the following principles:

a) the procedure will ensure at the very least the right to a hearing before the Arbitral Tribunal, as well as the opportunity to present claims and replicas or written answers;

b) the hearings before the Court, the deliberations and conclusions, as well as all the writings and communications related to the controversy will have reserved character and will be of exclusive access to the Parties Signatories, under the conditions laid down in the regulation of the present Regime.

The documents qualified by the parties as confidential will be of exclusive access for the arbitrators, who should determine the supply of a non-confidential summary.

The lauds of the Arbitral Tribunal, its clarifications and provisions about enforcement measures will have public character; and

c) the procedure of the Arbitral Tribunal should provide for sufficient flexibility to ensure the quality of its work without unduly delaying the same.

Case the Commission did not adopt the rules of procedure referred to in this Article and, in general, in the event of a gap or omission of them, the Arbitral Tribunal shall lay down its own rules considering the principles before them. Should it be necessary, the Arbitral Tribunal will be able to agree on separate rules, with the consensus of the parties.

Article 21-The parties will inform the Arbitral Tribunal about the instances previously complied with the arbitral procedure and will present the fundamentals of fact and law of their respective positions.

The parties will be able to designate their representatives and advisors before the Arbitral Tribunal for the defense of their rights.

Article 22-On request of one of the parties and to the extent that there are reasons grounded to believe that maintenance of the situation object of the controversy would occasioned serious and irreparable damage, the Arbitral Tribunal unanimously could determine the application of provisional measures.

These measures will be subject to what, to this effect, we dispose of the Regulation of this Regime, which should provide for the constitution of guarantees or cautions, that the measures maintain due proportionality with the alleged damage, and safeguard the right of the parties to be in advance heard.

Interim measures do not will prejudge the outcome of the Laudo.

The parties will comply immediately, or within the time the Arbitral Tribunal determines, any interim measure, to which it will extend until it is dictated to the Laudo to which Article 26 is referred, save when the Tribunal decides to suspend them in advance.

Article 23-The Arbitral Tribunal may apply for information from any government entity, physical person or public or private legal person of the Signatary Parties it deems convenient. The Arbitral Tribunal may also, after the approval of the parties, be worth the contest of experts or experts for the best sustainment of the Laudo.

The Arbitral Tribunal will be able to confer confidentiality on information that is provided to it.

Article 24-The Arbitral Tribunal will take into account the arguments presented by the parties, the evidence produced and the reports received, without prejudice to other elements that it considers convenient.

Article 25-The Arbitral Tribunal will decide on the controversy on the basis of the provisions of the Agreement, its Additional Protocols and in the instruments signed within the framework of the same and the principles and provisions of international law applicable to the matter and in the relevant fact and law fundamentals.

Article 26-The Arbitral Tribunal will issue your Laudo in writing in a deadline of sixty (60) days, counted as of the date of acceptance of the last of its designated members.

The deadline before indicated may be extended by the Tribunal by a maximum of thirty (30) days, which will be notified to the parts.

The Arbitral Laudo will be adopted by majority, will be substantiated and signed by the members of the Court. This will not be able to substantiate votes in dissent and should maintain the confidentiality of the vote.

Article 27-The Arbitral Laureate should necessarily contain the following elements, without prejudice to others that the Arbitral Tribunal consider convenient add:

1. indication of the parties to the controversy;

2. the name and nationality of each of the members of the Arbitral Tribunal, and the date of the conformation of the same;

3. the names of the representatives of the parties;

4. the object of the controversy;

5. a report of the development of the arbitral procedure, including a summary of the practiced acts and the allegations of each of the parties;

6. The decision reached in relation to the controversy, by consigning the fundamentals of fact and law;

7. the period of compliance if it is the case;

8. the proportion of costs of the arbitral procedure that will correspond to each Party cover, as set out in Article 33;

9. the date and place on which it was issued; and,

10. the signature of all the members of the Arbitral Tribunal.

Article 28-When the Arbitral Tribunal's laureate concludes that the measure is incompatible with the Agreement, the party will be obliged to adopt the necessary measures to give it fulfillment.

Article 29-The arbitral lauds are unappealable, mandatory for the parties from the receipt of the respective notification and will have, in relation to the same, force of thing adjudicated.

The lauds must be complied with within a period of sixty (60) days, unless the Arbitral Tribunal sets a different deadline, taking into account the arguments put forward by the parties during the arbitral procedure.

The party obliged to comply with the Laudo shall, within a time limit of ten (10) days, notify the other party of the measures that it will adopt for such an effect.

Without prejudice to the willing in Article 31, should the party benefited by the Laureate understand that the measures that will be adopted are not satisfactory, it could raise the situation to the consideration of the Arbitral Tribunal. The Court will have a time limit of ten (10) days to rule on the topic.

The provisions of this Article will not suspend the deadline for compliance with the Laudo, save when the Court decides otherwise.

Article 30-Any of the parties will be able to request, within the fifteen (15) days following the date of notification of the Laudo, the clarification of the same with regard to their reach or the way to fulfill it. The interposition of this clarification feature will not suspend the deadline for compliance with the Laudo, unless the Tribunal decides otherwise, if so do so require the circumstances.

The Arbitral Tribunal will rule on the clarification within fifteen (15) days after its interposition.

Article 31-If within the time limit set out in Article 29, if there is no fulfilled the Arbitral Laureate or this has been fulfilled only partially, the complaining party may temporarily suspend the part claimed, concessions or other equivalent obligations, which aim to obtain the fulfilment of the Laudo, and shall communicate to this and the Commission its decision in writing, indicating with clarity and correctness the type of measures that it will adopt.

These measurements will not be able to extend beyond the compliance with the Laudo.

Case the part claimed to consider excessive the suspension of concessions or obligations adopted by the claimant, will communicate its objections to the other party and to the Commission and may request that the Arbitral Tribunal that issued the Laudo address whether the measure adopted is equivalent to the degree of injury suffered. The Tribunal shall have a period of thirty (30) days for its pronouncement, counted from the date on which it is constituted for that purpose.

Article 32-The situations to which Articles 29, 30 and 31 are to be referred to are to be resolved by the same Arbitral Tribunal that dictated the Laudo, however if the latter cannot be constituted with all the original titular members, to complete the integration will apply the procedure laid down in Article 15.

Article 33-Arbitral Tribunal's spending comprises the referees ' fees, as well as the spending of passages, trans-end costs, daily, whose reference values will be set by the Commission, notifications and too much providence that demigns the arbitration.

The spending of the Arbitral Tribunal, as they were defined in the first paragraph of this Article, will be distributed in equal amounts between the claimant party and the claimed party.

CAPITCHAPTER V

GENERAL PROVISIONS

Article 34-The communications that take place between MERCOSUR or its States Parties and the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, should be curated, in the case of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, to the national authority that each country-member designate and the General Secretariat of the Andina community and, in the case of MERCOSUR, the Pro Tempore Presidency or the National Coordinators of the Common Market Group, as the case may be, with copy to the Registry of MERCOSUR.

The Recommendations of the Commission, the Arbitral Laudo, its clarifications and pronouncements on retaliatory measures, will be communicated to all Signatary Parties and entities indicated in the preceding paragraph in full text.

Article 35-The deadlines to which this Regime is concerned are expressed in days gone by and will be counted from the day following the act or fact to which they refer. When the deadline starts or wins on a non-useful day, you will start counting or you will win on the following business day.

Article 36-The members of the Court Arbitral, when accepting their designation, will assume in writing the commitment to acting as per the provisions of this Regime.

Such a written commitment will be directed to the Secretary General of ALADI and in it manifold, upon sworn affidavit, independence in relation to the object interests of the controversy and the obligation to act with impartiality, not accepting suggestions from third parties nor the parties.

Article 37-In any step of the procedure, the party that submitted the complaint will be able to give up the same. In addition, the parties will be able to reach an agreement, by the conclusion of the controversy in both cases. Dismissals or agreements should be communicated in writing to the Commission or to the Arbitral Tribunal for these to adopt the measures fully fit.

Article 38-For effect of the fulfillment of this Regime, the exchange of documentation can be effected by the means more shipping dispatchs available, including facsimile and electronic mail, always and when it is immediately referred to the original documentation.

The said original documentation will give faith of date certain unless the Tribunal or, as the case may be, the parties, decide to confer such character on that indicated by the electronic or digital medium used.

Article 39-The controversies among the members of a Contracting Party will be resolved as per the regulations that vigorate in the interior of that Contracting Party.

Article 40-None of the acts performed nor the documentation presented in the course of the procedures provided for in this Regime will prejudgize the rights or obligations that the parties hold in the framework of other agreements.

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

IN FÉ FROM WHAT, THE RESPECTIVE Plenipotentiaries sign the present Protocol in the city of Montevideo, at the eighteen days of the month of October two thousand and four, in an original in the Portuguese and Spanish languages, being both texts being equally valid. (a.) By the Government of the Argentine Republic: Rafael Antonio Bielsa; By the Government of the Federative Republic of Brazil: Celso Amorim; By the Government of the Republic of Colombia: Carolina Barco Isakson; By the Government of the Republic of Ecuador: Leonardo Carrión Eguiguren; By the Government of the Republic of Paraguay: José Martínez Lezcano; By the Government of the Eastern Republic of Uruguay: Didier Opertti; By the Government of the Bolivarian Republic of Venezuela: Jesús Arnaldo Perez.