DECREE NO. 5,661, OF January 3, 2006.

Disposes on the execution of the Quadragth Third Additional Protocol to the Economic Supplementation Agreement no 35, among the Governments of the Argentine Republic, of the Federative Republic of Brazil, of the Republic of Paraguay and the Eastern Republic of Uruguay, in the condition of States Parties to MERCOSUR, and the Republic of Chile, of September 30, 2005.

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

Considering that the Treaty of Montevideo of 1980, 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 no 66 of November 16, 1981, provides for the modality of Agreement of Economic Complementation;

Considering that the Plenipotentiaries of the Republic Argentina, of the Federative Republic of Brazil, of the Republic of Paraguay and of the Eastern Republic of Uruguay, in the condition of States Parties to MERCOSUR, and of the Republic of Chile, based on the Treaty of Montevideo of 1980, signed in Montevideo in 25 of June 1996, the Economic Supplementation Agreement no 35, incorporated into the Brazilian legal planning by the Decree no 2,075, of November 19, 1996;

Considering that the Plenipotentiaries of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, in the condition of States Parties to MERCOSUR, and of the Republic of Chile, based on the Treaty of Montevideo of 1980, signed, in Montevideo, on September 30, 2005, the Quadragth Third Additional Protocol to the Economic Supplementation Agreement no 35, among the Governments of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, in the condition of States Parties to MERCOSUR, and the Republic of Chile;

DECRETA:

Art. 1º The Quadragumth Third Additional Protocol to the Economic Supplementation Agreement in the 35, between the Governments of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, in the condition of States Parties to MERCOSUR, and of the Republic of Chile, apensed by copy to the present Decree, shall performed and fulfilled as entirely as it contains.

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

Brasilia, January 3, 2006; 185th of the Independence and 118th of the Republic.

LUIZ INÁCIO LULA DA SILVA

Celso Luiz Nunes Amorim

ECONOMIC COMPLEMENTATION AGREEMENT N ° 35 CELEBRATED

AMONG THE GOVERNMENTS OF THE STATES PARTIES OF MERCOSUR

AND THE GOVERNMENT OF THE REPUBLIC OF CHILE

Quadragyth Third Additional Protocol

The Plenipotentiaries of the Argentine Republic, of the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, in their condition of states Parts of the Southern Common Market (MERCOSUR) by one party, and of the Republic of Chile by another, accredited by their respective Governments second powers that were bestowed in good and due form, deposited opportunely at the General Secretariat of the Latin American Integration Association (ALADI).

HAVING IN VIEW THE MSC-CH Resolution No. 05/2005,

DECK IN:

Article 1º-Preferences outwarded by Chile to Uruguay.

a. For the goods of the position NALADI/SH 87.03 Chile grants Uruguay annual tariff contingents with 100% preference, under the table below and subject to the conditions of origin set out in the art. 3rd.

b. For the goods of the subheadings NALADI/SH 8701.20, 8704.10, 8704.22 (exclusively chassis-cab) and 8704.23 (exclusively chassis-cab) Chile grants Uruguay annual tariff contingents with 100% preference, the table below and subject to the conditions of origin established in art. 3rd.

Article 2º-Preferences outwarded by Uruguay to Chile.

a. For the goods of the subheadings NALADI/SH 8704.21 and 8704.31 Uruguay grants Chile annual tariff contingents of 700 units with 100% preference and subject to the conditions of origin set out in art. 3 o.

b. For the goods of the subheading NALADI/SH 8702.10 Uruguay grants Chile annual tariff contingent of 200 units with 100% preference and subject to the conditions of origin set out in art. 3rd.

Article 3º-Source Requirements.

a. Vehicles should comply with an index of regional content equal to or greater than 50% calculated by the following formula:

Total CIF imports of third party parts

{1- -------------------------------------------------------------------} x100

Export FOB price of the vehicle

b. In the case of new model vehicles, the regional content indices will be able to adjust to the following developments.

a. New vehicle will be considered, for the purposes of the preceding paragraph, the one that complies with some of the following alternatives:

1. produced from a platform that has not previously been produced in the exporting Signatary Part;

2. produced with a new bodywork on a platform previously produced in the territory of the exporting Signatary Part; and

3. produced by significant modification in a model brand produced in advance in the exporting Signatary Part. The modifications will require from new ferramental.

Article 4º-This Protocol shall enter into force 30 days after the date on which the General Secretariat of the ALADI communicates to the signatory countries the receipt of the notification from Chile and Uruguay, concerning compliance with the internal legal provisions for their putting into force.

The General Secretariat of ALADI will be depositary of this Protocol, from which it will send copies duly authenticated to the signatory Governments.

IN FÉ DO THAT, the respective Plenipotentiaries sign the present Protocol in the city of Montevideo, at the thirty days of the month of September of the thousand and five, in an original in the Portuguese and Spanish languages, being both texts being equally valid. (a.:) By the Government of the Argentine Republic: Juan Carlos Olima; By the Government of the Federative Republic of Brazil: Bernardo Pericás Neto; By the Government of the Republic of Paraguay: Juan Carlos Ramírez Montalbetti; By the Government of the Oriental Republic of Uruguay: Jorge Jure; By the Government of the Republic of Chile: Carlos Appelgren Balbontín.