DECREE NO. 6,561, OF September 11, 2008.

Disposes on the execution of the Sexagonth Fifth Additional Protocol to the Economic Supplementation Agreement nth 18, 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, of July 9, 2008.

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

Whereas the Treaty of Montevideo of 1980, which created the Latin American Integration Association (ALADI), firmed 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;

Considering that the Plenipotentiaries of the Argentine Republic, of the Federative Republic of Brazil, of the Republic of Paraguay and the Eastern Republic of Uruguay, on the basis of the Treaty of Montevideo of 1980, signed on November 29, 1991, in Montevideo, Uruguay, the Economic Supplementation Agreement No. 18, promulgated by Decree No. 550, of May 27 of 1992;

Considering that the Plenipotentiaries of the Argentine Republic, of the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, on the basis of the Treaty of Montevideo of 1980, signed, on July 9, 2008, in Montevideo, the Sexagtieth Fifth Additional Protocol to the Economic Supplementation Agreement No. 18, Between the Governments of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay,

DECRETA:

Art. 1th The Sexagtieth Fifth Additional Protocol to the Economic Supplementation Agreement nth 18, between the Governments of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, of July 9, 2008, apensed by copy to the present Decree, will be executed and fulfilled as entirely as it contains.

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

Brasilia, September 11, 2008; 187th da Independence and 120th of the Republic.

LUIZ INACIO LULA DA SILVA

Celso Luiz Nunes Amorim

ECONOMIC COMPLEMENTATION AGREEMENT N^o 18 CELEBRATED

BETWEEN ARGENTINA, BRAZIL, PARAGUAY, AND URUGUAY

Sexagtieth Fifth 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).

HAVING IN VIEW the Eighteenth Additional Protocol to the ACE-18 and the GMC Resolution No. 43/03.

CONVARISE:

Article 1-Incorporate to the Economic Supplementation Agreement N ° 18 a Decision N ° 16/07 of the Common Market Council concerning "MERCOSUR Source Regime", which appears as annex and integrates the present Protocol.

Article 2º-This Protocol shall enter into force 30 days after the notification of the General Secretariat of the ALADI to the signatory countries that it received the communication from the MERCOSUR Registry 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 effect such notification, as far as possible, on the same day it receives the communication from the Registry of MERCOSUR.

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

EM FÉ DO THAT, the respective Plenipotentiaries sign the present Protocol in the city of Montevideo, at the nine days of the month of July two thousand and eight, 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: Regis Percy Arslanian; By the Government of the Republic of Paraguay: Emilio Giménez Franco; By the Government of the Eastern Republic of Uruguay: Gonzalo Rodríguez Gigena

ANNEX

MERCOSUR ul/cmc/dec. No. 16/07

MERCOSUR ORIGIN REGIME

HAVING IN VISTA: The Treaty of Assumption, the Black Gold Protocol, Decisions No. 69/00, 28/03, 29/03, 35/03, 41/03 and 01/04 of the Common Market Council, Resolution No. 43/03 of the Common Market Group and Guideline No. 12/96 of the MERCOSUR Trade Commission and its modifications.

CONSIDERING:

The peculiar peculiarities of the economic steps observed in the States Parties of MERCOSUR and the common interest in reducing themselves existing differences in order to promote maximum consolidation, integration and utilisation of synergies between the economies of the region.

The need to contemplate the differences in the productive structures resulting from the economic size asymmetries, which are observed in the economies of the MERCOSUR member countries.

The convenience of modifying and updating, with this goal, the Source Regime of the MERCOSUR, in order to stimulate intrazone exports and to guarantee the smaller economic-size partners no less favorable conditions than those granted to third countries.

THE COUNCIL OF THE COMMON MARKET

DECIDE:

Art. 1-Notwithstanding the one set out in item c) of Article 3 of the Annex to CMC Decision No. 01/04, it shall be considered that a product complies with the tariff jump requirement if the CIF value of all materials does not originate from the States Parties used in your production that are not classified in a tariff position other than that of the product, does not exceed 10% of the FOB value of the exported product.

Art. 2-The provisions of the preceding Article shall not apply to the tariff positions subject to specific source requirements as set out in Annex I to the Annex to CMC Decision No. 01/04.

Additionally, when a State Party detects a negative effect on production national of some goods, depending on the ingress of imports to the amparo of the provisions of Article 1, will be able to present the case at the CCM, for the purpose of solving the problem identified on the basis of the appropriate corrective measures. On the assumption that a common solution is not agreed upon, the affected State Party may exclude the respective tariff position from the Article 1 reaches of this Decision.

Art. 3-Amend Article 1 of the CMC Decision No. 29/03, with the aim of establishing that the percentage of regional content in the MERCOSUR Origin Scheme, in order to outwit the condition of originating in Paraguay's products, is to a minimum of 40% percent. Such a differentiated origin regime will vigorously apply until December 31, 2022.

Art. 4-Exports from Paraguay and Uruguay to the remaining States Parties may not be subject to conditions of origin that are less favorable than exports from other countries.

Paraguay and Uruguay will be able to present at CCM those situations in which their exports for the remaining States Parties are subject to conditions of origin that are less favourable than exports from other countries. The CCM should raise as soon as possible the modifications that should be made to the MERCOSUR Origin Scheme to ensure compliance with the established in the first paragraph of this Article.

Art. 5-Request to the States Parties to instruct their respective Representations to the Latin American Integration Association (ALADI) to protocolize this Decision under the framework of the Economic Supplementation Agreement No. 18, pursuant to the terms established in GMC Resolution No. 43/03.

Art. 6-States Parties shall incorporate this Decision to their national legal ordinances before 31 /XII/07.

XXXIII CMC-Assumption, 28 /VI/07