DECREE NO. 5,901, OF September 20, 2006.

Disposes on the execution of the Fifty Sixth Additional Protocol to the Economic Supplementation Agreement no 18, between the Governments of the Federative Republic of Brazil, of the Argentine Republic, of the Republic of Paraguay and the Eastern Republic of Uruguay, of March 28, 2006.

THE PRESIDENT OF THE REPUBLIC, in the use of the assignment that gives it 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), 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 Economic Supplementation Agreement;

Whereas the Plenipotentiaries of the Federative Republic of Brazil, the Argentine Republic, the Republic of Paraguay and the Eastern Republic of Uruguay, on the basis of the Treaty of Montevideo of 1980, signed, in Montevideo on November 29, 1991, the Agreement of Economic Complementation in the 18, between the Governments of the Federative Republic of Brazil, the Argentine Republic, the Republic of Paraguay and the Eastern Republic of Uruguay, incorporated into the Brazilian domestic law by the Decree no 550, of May 27 of 1992;

Considering that the Plenipotentiaries of the Republic Federative of Brazil, the Argentine Republic, the Republic of Paraguay and the Eastern Republic of Uruguay, on the basis of the Treaty of Montevideo of 1980, signed, in Montevideo, on March 28, 2006, the Fifty Sixth Additional Protocol to the Agreement of Economic Supplementation in the 18, between the Governments of the Federative Republic of Brazil, the Argentine Republic, the Republic of Paraguay and the Eastern Republic of Uruguay;

DECRETA:

Art. 1st The Fifteenth Additional Protocol to the Economic Supplementation Agreement no 18, between the Governments of the Federative Republic of the Brazil, from the Argentine Republic, the Republic of Paraguay and the Eastern Republic of Uruguay, apensed by copy to the present Decree, will be executed and fulfilled as entirely as if it contains.

Art. 2nd This Decree takes effect on the date of its publication.

Brasilia, 20 of september 2006; 185th of the Independence and 118th of the Republic.

LUIZ INACIO LULA DA SILVA

Celso Luiz Nunes Amorim

This text does not replace the one published in the D.O.U. of 9/21/2006.

ECONOMIC COMPLEMENTATION AGREEMENT NO. 18 CONCLUDED BETWEEN ARGENTINA, BRAZIL, PARAGUAY AND URUGUAY

Sequentieth Sixth Additional Protocol

The Plenipotentiaries of the Argentine Republic, of the Federative Republic of Brazil, of the Republic of Paraguay and the Eastern Republic of Uruguay, accredited by their respective Governments, second powers bestowed in good and due form, deposited opportunely at the General Secretariat of the Latin American Integration Association (ALADI),

TAKING INTO ACCOUNT the Eighteenth Additional Protocol to the Economic Supplementation Agreement No. 18 and the GMC Resolution No. 43/03,

DECK IN:

Article 1 °-Incorporate to the Economic Supplementation Agreement N ° 18 a Decision No. 40/05 of the Council of the Common Market of MERCOSUR concerning?Capital goods?, which is listed as Annex and is part of this Protocol.

Article 2º-This Protocol shall enter into force thirty days after the notification of the General Secretariat of the ALADI to the signatory countries of which it received the communication from the MERCOSUR Secretariat, informing the incorporation of the MERCOSUR standard and its corresponding Additional Protocol to the legal ordinances of the four States Parties to MERCOSUR.

The General Secretariat of the ALADI is expected to make such notification, if possible, on the same day as receiving the communication from the MERCOSUR Registry.

Article 3º-After its entry into force, the present Protocol shall modify the provisions of Articles 1 and 2 of Decision No. 34/03 and shall replace Article 11 of that Decision, which are contained in the Additional Protocol No. 48 of the ACE 18.

The General Secretariat of ALADI will be depositary of the present Protocol, of which it will send duly authenticated copies to the Governments of the signatory countries and to the Secretariat of MERCOSUR.

IN FÉ FROM WHAT, THE RESPECTIVE PLENIPOTENTIARIES SIGN THE present Protocol in the city of Montevideo, at the twenty-eight days of the month of March of the year two thousand and six, 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: Gonzalo Rodríguez Gigena.

ANNEX

MERCOSUR ul/cmc/dec. No. 40/05

CAPITAL GOODS

HAVING IN VISTA: The Treaty of Asuncion, the Black Gold Protocol, and Decisions No. 07/94, 22/94, 69/00, 01/01, 05/01, 02/03, 10/03 and 34/03 of the Council of the Common Market.

CONSIDERING:

That achieving the objectives of the Treaty of Assumption requires the adoption of instruments of trade policy that promote the competitiveness of the region.

That an appropriate management of the tariff policy of MERCOSUR must take into account the international economic conjuncture,

THE COUNCIL OF THE COMMON MARKET

DECIDE:

Art. 1-Extend, up to 1º January 2009, the entry into force of the provisions of the article first of Dec. CMC No. 34/03.

Art. 2-Until December 31, 2008 the States Parties you will be able to maintain the import regimes of capital goods prevailing in the States Parties, including the Exceptional Measures in the Tariff Scope provided for in the Dec. CMC N ° 02/03.

Art. 3-Replace article 11 of the Annex to Dec. CMC No. 34/03 by the following:

?Art. 11-A From 1º January 2011 will only be admitted imports, with the benefits provided for in this scheme, of new capital goods, their parts, parts and components, classified in the codes identified as?BK? in the Common Nomenclature of MERCOSUR, not produced that build on the Common List.?

Art. 4-Instruct to the High Level Group to Examine the Consistency and Dispersion of Common External Fee, approved by Dec. CMC No. 05/01, to be drawn up, by December 31, 2006, a proposal for a review of Common External Fee (TEC) for Capital Bens.

Art. 5-Request to the States Parties to instruct their respective Representations to the Latin American Integration Association (ALADI) for which to protocolize this Decision in the framework of the Economic Supplementation Agreement N ° 18, pursuant to the Res. GMC N ° 43/03.

Art. 6-States Parties should incorporate the present Decision to its national legal ordinances before 1/1/2006.

XXIX CMC-Montevideo, 08 /XII/05