1996 316 ACT

(September 13)

Official Journal No. 42,880 of 18 September 1996

By means of which the "Interpretive Protocol of Article 44 of the Treaty of Montevideo 1980" is approved.

CONGRESS OF REPUBLIC

DECRETA:

Having regard to the "Interpretive Protocol to Article 44 of the Treaty of Montevideo 1980", made in the city of Cartagena de Indias, Colombia, on June 13, 1994, the text of which reads as follows:

" ARTICLE 44 INTERPRETATIVE PROTOCOL

OF THE 1980 MONTEVIDEO TREATY

The Ministers of Foreign Affairs of the Republic of Argentina, the Republic of Bolivia, the Republic of Colombia, the Republic of Chile, the Republic of Ecuador, the United Mexican States, the Republic of Paraguay, Republic of Peru, the Eastern Republic of Uruguay and the Republic of Venezuela, and the Plenipotentiary of the Federative Republic of Brazil,

AGREE:

ARTICLE 1o. Pursuant to Article 44 of the Treaty of Montevideo 1980, member countries granting advantages, favors, franchises, immunities or privileges to products originating in or intended for any other Member or non-member country, for decisions or agreements which are not provided for in the Treaty itself or in the Cartagena Agreement, shall extend these treatments immediately and unconditionally to the other countries members of the Association.

ARTICLE 2o. Without prejudice to the provisions of the foregoing Article, member countries which are party to the agreements referred to in that Article may request the Committee of Representatives, temporary obligations laid down in Article 44 of the Treaty of Montevideo 1980, providing the basis for their application.

ARTICLE 3o. When applying for the suspension referred to in the second article and for the purposes of maintaining the balance of rights and obligations arising out of previously agreed agreements in the framework of the Treaty of Montevideo 1980, the petitioner will assume the commitment of:

(a) Develop bilateral negotiations with the other Member States so that the concessions granted to these countries will be maintained at a general level not less favourable to trade than the one resulting from the agreements reached in the the framework of the Treaty of Montevideo, 1980, which existed before the entry into force of the Agreements referred to in Article 1.

Such negotiations will be requested in a manner founded by the country that is affected, in order to receive compensation substantially equivalent to the loss of trade, under the preferences granted in non- provided for in the Treaty of Montevideo 1980.

For these purposes, the country concerned shall notify the applicant country of the suspension and the Committee of Representatives of the negotiations.

Unless the parties agree on a longer term, the negotiations must be initiated within thirty days of the respective request and must be concluded within one hundred and twenty days of initiation. The whole of the negotiations must not exceed a period of 24 months. At the request of the parties concerned, the Committee of Representatives may extend that period.

The compensation for the countries of lower economic development relative to the ALADI will have to take into account in particular the provisions of the Treaty of Montevideo 1980 on the most favorable differential treatment recognized to those countries.

b) Negotiate the application to the other member countries which have complied with the obligation to remove non-tariff restrictions within the framework of the Association, the most favourable treatment granted to a third country in instruments not provided for in the Treaty of Montevideo, 1980 on non-tariff restrictions.

c) Negotiating with the member countries that so request, the adoption of rules of origin-including qualification criteria, certification procedures, verification and/or control-in case the regime of origin agreed upon in the Agreements Article 1, which refers to the first article, contains more favourable general or specific treatments, both in terms of exports and imports, than those in force under the Treaty of Montevideo 1980.

ARTICLE 4. Finished the negotiations referred to in the third article, with satisfactory result for the parties, the country that requested the negotiations will grant its positive vote in favor of the suspension at the time when the Committee of Representatives considers such suspension.

If the outcome of the negotiations is considered insufficient, by the country concerned to restore the balance of the rights and obligations emanating from the Treaty of Montevideo 1980 and the agreements concluded under the aforementioned Treaty, the Committee of Representatives shall appoint the members of a Task Force, in consultation with the countries concerned, for the purpose of determining whether the compensation offered is sufficient.

(a) The Group shall determine, within 60 days of its establishment, whether the compensation offered is sufficient, in which case the country concerned shall grant its positive vote in favour of the final suspension at the time the Committee of Representatives consider such suspension.

(b) If within the sixty days of its constitution, the Special Group considers that the compensation offered during the negotiation is not sufficient, it will determine which in its judgment it is, as well as the amount by which the country concerned will be able to suspend substantially equivalent concessions.

i) If the country requesting the suspension referred to in the second article agrees, within a period of thirty days, to grant the compensation in accordance with the determination of the Special Group, the country concerned shall grant its vote. positive for the final suspension at the time the Committee of Representatives considers such suspension.

ii) Otherwise, the country concerned may withdraw concessions substantially equivalent to the compensation determined by the Special Group and may vote negatively on the suspension requested by the Committee of Representatives.

ARTICLE 5o. The suspension requested in accordance with the provisions of the second article will result in the following treatments:

(a) If no country shows, within a period of one hundred and twenty days, the intention to request negotiations, the Committee of Representatives shall grant the suspension requested definitively for a period of five years renewable by a new period not exceeding five years.

(b) In the event that any country requests negotiations, the suspension will be granted on a conditional basis by the Committee of Representatives for a period of five years.

At the end of the bilateral negotiations of the country that requested the suspension, in accordance with the second article, with the member countries that indicated their intention to negotiate, the Committee of Representatives will grant the final suspension, with the affirmative vote of two thirds of the Member States in respect of which this Protocol applies.

ARTICLE 6o. The Committee of Representatives shall monitor the implementation of each suspension granted in the terms of this Protocol and submit an annual report to the Association Council of Ministers.

ARTICLE 7o. This Protocol adopted by the Council of Ministers, with the affirmative vote of two-thirds of the member countries and without a negative vote, shall enter into force for the member countries that ratify it, in accordance with the respective constitutional procedures, at the time when the eighth instrument of ratification is deposited with the General Secretariat.

IN FE OF THE CUAL, the Ministers of Foreign Affairs and the Plenipotentiaries sign this Protocol in the city of Cartagena de Indias, Colombia, at the thirteen days of the month of June of a thousand nine hundred and ninety-four, in a original in the Spanish and Portuguese languages, both texts being equally valid and of which the General Secretariat of the Association will be deposited.

By the Governments of the Republics of Argentina, Bolivia, Federative of Brazil, Colombia, Chile, Ecuador, United Mexican States, Paraguay, Peru, Oriental of Uruguay, Venezuela.

(unreadable signatures)

EXECUTIVE BRANCH OF PUBLIC POWER

REPUBLIC OF THE REPUBLIC

Santa Fe de Bogota, D.C.

Approved the consideration of the honorable National Congress for the constitutional effects.

(Fdo.) ERNESTO SAMPER PIZANO

The Foreign Minister,

(Fdo.) RODRIGO PARDO GARCIA-PENA.

DECRETA:

ARTICLE 1A. Approve the "interpretative protocol to Article 44 of the Treaty of Montevideo, 1980", signed in Cartagena de Indias, Colombia, on June 13, 1994, the authenticated text of which is inserted.

ARTICLE 2A. Pursuant to article 1o. of Law 7a. In 1944, the "interpretative protocol of Article 44 of the Treaty of Montevideo of 1980", made in the city of Cartagena de Indias, Colombia, on June 13, 1994, as provided for in Article 1. of this law is approved, will force the country from the date on which the international link with respect to it is perfected.

ARTICLE 3A. This Law governs from the date of its publication.

The President of the honorable Senate of the Republic,

LUIS FERNANDO LONDONO CAPURRO.

The Secretary General of the honorable Senate of the Republic,

PEDRO PUMAREJO VEGA.

The President of the honorable House of Representatives,

GIOVANNY LAMBOGLIA MAZZILLI.

The President-General of the honourable House of Representatives,

DIEGO VIVAS TAFUR.

COLOMBIA-NATIONAL GOVERNMENT

Contact and post.

Execute previous Constitutional Court review

pursuant to article 241-10 of the Political Constitution.

Dada en Santa Fe de Bogota, D.C., a 13 de september de 1996.

ERNESTO SAMPER PIZANO.

The Foreign Minister,

MARIA EMMA MEJIA VELEZ.

The Minister of Foreign Trade,

MORRIS HARF MEYER