Key Benefits:
LAW 1000 OF 2005
(December 30)
Official Journal No. 46.137 of 30 December 2005
COLOMBIA CONGRESS
By means of which the "Economic Complementation Agreement", signed between the Governments of the Republic of Argentina, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of the 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, Member Countries of the Andean Community and the "First Additional Protocol" Controversies ", signed in Montevideo, Uruguay, at eighteen (18) days of the month of October of two thousand four (2004).
COLOMBIA CONGRESS
Having regard to the text of the "Economic Complementation Agreement", 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, the Republic of Ecuador and the Bolivarian Republic of Venezuela, the Member Countries of the Andean Community and the "First Additional Protocol-Settlement Regime for Controversies", signed in Montevideo, Uruguay, at eighteen (18) days of the month of October two thousand four (2004).
(To be transcribed: photocopy of the full text of the above international instruments is attached).
BILL NUMBER 243 OF 2005 SENATE, 373 OF 2005 HOUSE
by means of which the "Agreement of Economic Complementation undersigned between the Governments of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, States Parties" is hereby approved of Mercosur and the Governments of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, member countries of the Andean Community and the "First Additional Protocol Regime for the Settlement of Controversies", signed in Montevideo, Uruguay, at eighteen (18) days of the month of October two thousand four (2004).
The Congress of the Republic,
Having regard to the text of the Economic Complementation Agreement between the Governments of the Republic of Argentina, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, the States Parties to Mercosur, and the Governments of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, the Member States of the Andean Community and the 'First Additional Protocol on Dispute Settlement', signed in Montevideo, Uruguay, at eighteen (18) days of the month of October two thousand four (2004).
(To be transcribed: photocopy of the full text of the above international instruments is attached).
Bogotá, D. C., Doctors
LUIS HUMBERTO GOMEZ GALLO
President
Honorable Senate of the Republic
CORRALES JATTIN ZULEMA
President
Honorable House of Representatives
MANUEL RAMIRO VELASQUEZ
President
Senate Second Committee
CARLOS JULIO GONZALEZ
President
Second Chamber Commission
Reference: Bill " through which the Economic Complementation Agreement between the Governments of the Republic of Argentina, the Federative Republic of Brazil, the Republic of Paraguay and the Republic of Argentina is approved Eastern Uruguay, States Parties to Mercosur and the Governments of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, Member States of the Andean Community and the First Additional Protocol- Solution of Controversies ', signed in Montevideo Uruguay, at the eighteen (18) days of the month of October two thousand four (2004) ".
Presidents Presidents:
In application of article 163 of the Political Constitution and Articles 169 numeral 2 and 191 of the 5th Act In 1992, I would like to ask the honourable Congress of the Republic, through its distinguished conduit, to proceed as a matter of urgency, and to arrange for the joint deliberation of the corresponding permanent constitutional commissions for the purpose of giving first discussion of the reference bill.
For the national government and the country, this Agreement is of particular importance, which represents a fundamental step for the consolidation of the process of Latin American integration, through the expansion of the markets and the expansion of the reciprocal trade. The Agreement consolidates existing trade flows between the two economic blocs, expands a large market for domestic exports while facilitating the entry of inputs and capital goods at lower costs, contributing to the this way to strengthen the national productive apparatus.
The Agreement between the Andean Community and Mercosur responds to the constitutional mandate to promote the integration of the Latin American community " and complies with the provisions of the National Development Plan, approved by the Congress of the Republic, which provides for the subscription of such an agreement, as one of the pillars of Colombian foreign policy.
This initiative closes the cycle of subscription of free trade agreements in South America and is a fundamental part of the process of internationalization of the national economy, which currently advances on trade fronts. as important as the negotiation for the signing of a Free Trade Agreement with the United States.
This Agreement has been in temporary effect since the first of February of this year, in accordance with Decree 141 of 26 January 2005 and its ratification by the Congress of the Republic is of the utmost importance as a message to the Colombian productive sector.
Cordially,
ALVARO URIBE VELEZ
The Foreign Minister,
Carolina Barco Isakson.
The Minister of Commerce, Industry and Tourism,
Jorge H. Botero.
SECOND PERMANENT CONSTITUTIONAL COMMISSION
FOREIGN RELATIONS AND NATIONAL DEFENSE
HONORABLE SENATE OF THE REPUBLIC
Bogotá, D. C., April 28, 2005
Doctor
ORLANDO ROSA ' S WAR
Secretary General
Second Commission
House of Representatives
City
Cordial greeting:
For your knowledge and relevant purposes I allow you to annex to this copy of the URGENT MESSAGE sent by the National Government of Bill 243 of 2005 Senate, " by means of which the agreement of complementation is approved The Economic and Financial Committee of the European Communities, the Economic and Financial Committee, the Economic and Financial Committee, the Economic and Financial Committee, the Economic and Financial Committee, the Economic and Financial Committee and the Committee of the European Communities Republic of Ecuador and the Bolivarian Republic of Venezuela, member countries of the Andean Community, and The First Additional Protocol-Regime for Settlement of Controversies '; signed in Montevideo, Uruguay, at eighteen (18) days of October of two thousand four (2004).
I would also like to inform you that the complete file is available for the purpose of taking the respective photocopies for the Second Commission of the House, all of which for reasons of logistical restriction of this Commission we are not able to supply.
Any additional information about this will be addressed at the Secretariat of this Commission.
Felipe Ortiz Marulanda,
Secretary General Commission Second Senate of the Republic
Annex as enunciated.
* * *
CSCP.3.2.600.05
Bogotá, D. C., April 25, 2005
Doctor
CARLOS JULIO GONZÁLEZ VILLA
President-Second Constitutional Commission
Honorable House of Representatives
City
Respected President:
Comedies allow me to refer you, for the relevant purposes, message of urgency to the Bill of Law number 243 of 2005 Senate, " by means of which the agreement of economic complementation undersigned between the Governments of the Republic is approved Argentina, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, the States Parties to Mercosur and the Governments of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, member countries of the Andean Community, and the First Additional Protocol-Regime of Solution of Controversies '; signed in Montevideo, Uruguay, at eighteen (18) days of October of two thousand four (2004). " In addition to the photocopy of the file containing the bill.
Once we have the resolution of the joint session of the second commissions we will be referring it.
Cordial greeting,
Orlando Guerra de la Rosa,
Secretary Commission Second, National Defense and Foreign Relations.
Attachment: What's announced.
* * *
Bogotá, D. C.,
Doctors
LUIS HUMBERTO GOMEZ GALLO
President
Honorable Senate of the Republic
CORRALES JATTIN ZULEMA
President
Honorable House of Representatives
MANUEL RAMIRO VELASQUEZ
President
Senate Second Committee
CARLOS JULIO GONZALEZ
President
Second Chamber Commission
Reference: Bill " through which the Economic Complementation Agreement between the Governments of the Republic of Argentina, the Federative Republic of Brazil, the Republic of Paraguay and the Republic of Argentina is approved Eastern Uruguay, States Parties to Mercosur and the Governments of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, Member States of the Andean Community and the First Additional Protocol- Solution of Controversies ', signed in Montevideo Uruguay, at the eighteen (18) days of the month of October two thousand four (2004) ".
Presidents Presidents:
In application of article 163 of the Political Constitution and Articles 169 numeral 2 and 191 of the 5th Act In 1992, I would like to ask the honourable Congress of the Republic, through its distinguished conduit, to proceed as a matter of urgency, and to arrange for the joint deliberation of the corresponding permanent constitutional commissions to give effect to the First debate on the draft law of the reference.
For the National Government and for the country, this Agreement is of particular importance, which represents a fundamental step for the consolidation of the process of Latin American integration, through the expansion of the markets and the expansion of the reciprocal trade. The Agreement consolidates existing trade flows between the two economic blocs, expands a large market for domestic exports while facilitating the entry of inputs and capital goods at lower costs, contributing to the this way to strengthen the national productive apparatus.
The Agreement between the Andean Community and Mercosur responds to the constitutional mandate to promote the integration of the Latin American community " and complies with the provisions of the National Plan of Bbbsrollo, approved by the Congress of the Republic, which provides for the subscription of such an agreement, as one of the pillars of Colombian foreign policy.
This initiative closes the cycle of subscription of free trade agreements in South America and is a fundamental part of the process of internationalization of the national economy that currently advances on trade fronts. important as the negotiation for the signing of a Free Trade Agreement with the United States.
This Agreement has been in place since the first of February of this year, in accordance with Decree 141 of 26 January 2005, and its ratification by the Congress of the Republic is of the utmost importance as a message to the Colombian productive sector. Cordially,
ALVARO URIBE VELEZ
The Foreign Minister,
Carolina Barco Isakson.
The Minister of Commerce, Industry and Tourism,
Jorge H. Botero.
INDEX
AGREEMENT TEXT
ANNEX I
REFERRED TO THE SECOND PARAGRAPH OF ARTICLE 3
ANNEX II
COMMERCIAL RELEASE PROGRAM
Appendix 1
Preferences granted by Colombia, Ecuador v Venezuela, member countries of the Andean Community, Argentina, Brazil, Paraguay and Uruguay, Mercosur States Parties
Preferences granted by Colombia
Preferences granted by Ecuador
Preferences granted by Venezuela
Explanatory Notes
Appendix 2
Preferences granted by Argentina, Brazil, Paraguay and Uruguay, Mercosur States Parties, to Colombia, Ecuador and Venezuela, member countries of the Andean Community
Preferences granted by Argentina
Preferences granted by Brazil
Preferences granted by Paraguay
Preferences granted by Uruguay
Explanatory Notes
Appendix 3
Relief from Colombia, Ecuador and Venezuela, member countries of the Andean Community to Argentina, Brazil, Paraguay and Uruguay, States Parties to Mercosur with two or more timetables applicable to each item or other negotiating conditions
Appendix 3.1: Colombia grants Argentina
Appendix 3.2: Colombia grants Brazil
Appendix 3.3: Colombia grants Paraguay
Appendix 3.4: Colombia grants Uruguay
Appendix 3.5: Ecuador grants Argentina
Appendix 3.6: Ecuador grants Brazil
Appendix 3.7: Ecuador grants Paraguay
Appendix 3.8: Ecuador grants Uruguay
Appendix 3.9: Venezuela grants Argentina
Appendix 3.10: Venezuela grants Brazil
Appendix 3.11: Venezuela grants Paraguay
Appendix 3.12: Venezuela grants Uruguay
Appendix 4
Relief from Argentina, Brazil, Paraguay and Uruguay, Mercosur States Parties, to Colombia, Ecuador and Venezuela, member countries of the Andean Community with two or more schedules applicable to each item or other trading conditions
Appendix 4.1: Argentina grants Colombia
Appendix 4.2: Argentina grants Ecuador
Appendix 4.3: Argentina grants Venezuela
Appendix 4.4: Brazil grants Colombia
Appendix 4.5: Brazil grants Ecuador
Appendix 4.6: Brazil grants Venezuela
Appendix 4.7: Paraguay grants Colombia
Appendix 4.8: Paraguay grants Ecuador
Appendix 4.9: Paraguay grants Venezuela
Appendix 4.10: Uruguay grants Colombia
Appendix 4.11: Uruguay grants Ecuador
Appendix 4.12: Uruguay grants Venezuela
ANNEX III
CHARGES AND CHARGES AFFECTING BILATERAL TRADE (Article 5)
Additional notes from Ecuador
Additional notes from Venezuela
Additional notes from Brazil
Additional notes from Paraguay
Additional notes from Uruguay
ANNEX IV
SOURCE REGIME
Appendix 1: Source Certificate
Appendix 2: Source-specific requirements for automotive products
Appendix 3: Specific requirements of bilateral origin
Appendix 3.1: Agreed between Argentina and Colombia
Appendix 3.2: Agreed between Argentina and Ecuador
Appendix 3.3: Agreed between Argentina and Venezuela
Appendix 3.4: Agreed between Brazil and Colombia
Appendix 3.5: Agreed between Brazil and Ecuador
Appendix 3.6: Agreed between Brazil and Venezuela
Appendix 3.7: Agreed between Paraguay and Colombia
Appendix 3.8: Agreed between Paraguay and Ecuador
Appendix 3.9: Agreed between Paraguay and Venezuela
Appendix 3.10: Agreed between Uruguay and Colombia
Appendix 3.11. Agreed between Uruguay and Ecuador
Appendix 3.12: Agreed between Uruguay and Venezuela
ANNEX V
SAFEGUARDS REGIME
ANNEX VI
TRANSIENT DISPUTE RESOLUTION REGIME
ANNEX VII
REGIME OF STANDARDS, TECHNICAL REGULATIONS AND CONFORMITY ASSESSMENT
ANNEX VIII
SANITARY AND PHYTOSANITARY MEASURES REGIME
Appendix 1: Format for counter-reporting of sanitary and phytosanitary measures, Article 26
ANNEX IX
SPECIAL MEASURES SYSTEM
Appendix 1 Colombia
Appendix 2 Colombia
Appendix 1 Ecuador
Appendix 2 Ecuador
Appendix 1 Venezuela
Appendix 2 Venezuela
" ECONOMIC COMPLEMENTATION AGREEMENT CONCLUDED BETWEEN THE GOVERNMENTS OF THE ARGENTINE REPUBLIC, THE FEDERAL REPUBLIC OF BRAZIL, THE REPUBLIC OF PARAGUAY AND THE EASTERN REPUBLIC OF URUGUAY, STATES PARTS OF MERCOSUR AND THE GOVERNMENTS OF THE REPUBLIC OF COLOMBIA, THE REPUBLIC OF ECUADOR AND THE BOLIVARIAN REPUBLIC OF VENEZUELA, MEMBER COUNTRIES OF THE ANDEAN COMMUNITY
The Governments of the Republic of Argentina, 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 of the Bolivarian Republic of Venezuela, Member Countries of the Andean Community shall be referred to as "Signatory Parties". For the purposes of this Agreement, the "Contracting Parties" are, on the one hand, Mercosur and the other part of the the Andean Community subscribing to the Agreement,
Considering
That it is necessary to strengthen the process of integration of Latin America, in order to achieve the objectives provided for in the Treaty of Montevideo 1980, by means of agreements opened to the participation of the other member countries of the Latin American Integration Association (Aladi) to allow the creation of an enlarged economic space;
That it is appropriate to offer to economic agents clear and predictable rules for the development of trade and investment, in order to promote in this way a more active participation of the same in the economic and commercial relations between the States Parties to Mercosur and the Member Countries of the Andean Community;
That on December 17, 1996, the Economic Complementation Agreement No. 36 was signed, establishing a Free Trade Zone between the Republic of Bolivia and Mercosur [Common Market of the South];
That on August 25, 2003 the Economic Complementation Agreement No. 58 was signed, establishing a Free Trade Zone between the Republic of Peru and Mercosur;
That the formation of free trade areas in Latin America is a relevant means of approximating existing integration schemes;
That regional economic integration is one of the essential instruments for Latin American countries to advance in their economic and social development, ensuring a better quality of life for their peoples;
That on April 16, 1998, a Framework Agreement was signed between the Andean Community and Mercosur that provides for the negotiation of a Free Trade Zone between the Parties;
That on December 6, 2002, the Economic Complementation Agreement No. 56 was signed, between the Andean Community and Mercosur, which establishes the formation of a Free Trade Area;
That the validity of democratic institutions is an essential element for the development of the regional integration process;
That the States Parties to Mercosur, through the subscription of the Treaty of Asuncion of 1991 and the Andean countries through the signing of the Cartagena Agreement of 1969, have taken a significant step towards achieving the objectives of the Latin American integration;
That the Marrakesh Agreement establishing the World Trade Organization (WTO) constitutes the framework of rights and obligations to which the trade policies and commitments of this Agreement will be adjusted;
That the Parties promote free competition and reject the exercise of restrictive practices;
That the integration process should encompass aspects relating to the development and full utilization of the physical infrastructure,
AGREE
To conclude the present Economic Complementation Agreement, under the Treaty of Montevideo 1980 and Resolution 2 of the Council of Ministers of the ALALC.
T I T U L O I
GOALS AND SCOPE
Article 1. This Agreement has the following objectives:
-Establish the legal and institutional framework for economic and physical cooperation and integration that will contribute to the creation of an enlarged economic area that will facilitate the free movement of goods and services and the full use of the production factors, under conditions of competition between the Contracting Parties;
-Forming a free trade area between the Contracting Parties by expanding and diversifying trade and eliminating tariff and non-tariff restrictions affecting reciprocal trade;
-To achieve harmonious development in the region, taking into consideration the asymmetries derived from the different levels of economic development of the Signatory Parties;
-Promote the development and use of physical infrastructure, with special emphasis on the establishment of integration corridors that will allow the reduction of costs and the generation of competitive advantages in regional trade reciprocal and with third countries outside the region;
-Promote and boost investments among economic agents of the Signatory Parties;
-Promote complementarity and economic, energy, scientific and technological cooperation;
-Promote consultations, where appropriate, in trade negotiations conducted in third countries and regional extra-country groupings.
Article 2. The provisions of this Agreement shall apply in the territory of the Signatory Parties
T I T U L O II
COMMERCIAL RELEASE PROGRAM
Article 3. The Contracting Parties shall establish a Free Trade Area through a Trade Liberation Program, which shall apply to products originating in and coming from the territories of the Signatory Parties. This programme shall consist of progressive and automatic reliefs applicable to tariffs in force for the import of third countries into each Signatory Party at the time of the application of the preferences in accordance with the provisions of the provided in their legislation.
By way of derogation from the preceding paragraph, for the products listed in Annex I, the relief shall apply only to the duties entered in that Annex.
For products not listed in Annex I, the preference shall be applied to the total of the duties, including additional customs duties.
In the trade of goods between the Contracting Parties, the classification of the goods shall be governed by the Nomenclature of the Harmonized System of Designation and Coding of Goods, in its regional version NALADISA 96 and its future updates, which will not change the scope and the negotiated access conditions, for which the Administrative Commission will define the date of the implementation of these updates.
For the purpose of printing transparency to the application and scope of the preferences, the Signatory Parties shall be notified of the entry into force of this Agreement, the classification decisions issued or issued. by their respective competent bodies on the basis of the Harmonised System Explanatory Notes. In the event of differences of interpretation, the Parties may use the World Customs Organization (WCO), without prejudice to Article 41 (e) of this Agreement.
This Agreement incorporates the previously negotiated tariff preferences between the Signatory Parties in the Partial Scope Agreements in the framework of the Aladi, in the manner as reflected in the Trade Release Program.
Also, this Agreement incorporates the tariff preferences and other conditions of access negotiated prior to the Regional Outreach Agreements in the framework of the Aladi, in the form as reflected in the Trade Liberation Program. However, the tariff preferences and other conditions of access which are being applied by the Signatory Parties on the date of subscription of this Agreement shall apply, under the Regional Agreement on Preference Regional Tariff (PAR) and the Regional Opening Agreements on Markets in favour of the countries of minor economic development (NAM), in so far as these preferences and other conditions of access are more favourable than those which are set out in this Agreement.
However, the provisions of the Partial Scope Agreements and the Regional Scope Agreements shall remain in force when they relate to matters not covered by this Agreement.
Article 4. For the purposes of implementing the Trade Liberation Program, the Signatory Parties agree with each other, the specific timelines and their rules and disciplines, contained in Annex II.
Article 5. The Signatory Parties may not adopt levies and charges for equivalent effects other than customs duties affecting trade covered by this Agreement. As regards existing ones to the date of subscription of the Agreement, only the charges and charges contained in the Additional Notes may be maintained, which may be modified but without increasing the incidence of such charges.
The abovementioned Notes are listed in Annex III.
"levies" shall mean customs duties and any other surcharge having equivalent effect on imports originating in the Signatory Parties. Similar charges and surcharges are not included in this concept where they are equivalent to the cost of the services provided or the anti-dumping or countervailing duties.
Article 6. The Signatory Parties shall not maintain or introduce new non-tariff restrictions on their reciprocal trade. 'Restrictions' means any measure or mechanism that prevents or hinders imports or exports of a Signatory Party, except those permitted by the WTO
Article 7. The Contracting Parties shall keep each other informed, through the competent national bodies, of any amendments to customs duties and shall send copies thereof to the General Secretariat of the Aladi for their information.
Article 8. In the case of import licences, the Signatory Parties shall be governed by the provisions of the Agreement on Procedures for the Processing of Import Licences of the WTO.
Article 9. The Contracting Parties shall, within a period of no more than one hundred and eighty (180) days from the date of entry into force of this Agreement, exchange lists of measures affecting their reciprocal trade, such as non-automatic licences, prohibitions or limitations on the import and requirements of registration or the like, for the exclusive purpose of transparency. The inclusion of measures in that list does not prejudge its validity or legal relevance.
The Contracting Parties shall also keep each other informed through the competent national bodies, on any amendments to those measures, and shall forward copies thereof to the General Secretariat of the Aladi for their information.
In the case of standards, technical regulations and conformity assessment and sanitary and phytosanitary measures, the transparency procedures provided for in the specific annexes apply.
Article 10. Nothing in this Agreement shall be construed as preventing a Signatory Party from adopting or implementing measures in accordance with Article 50 of the Treaty of Montevideo 1980 and/or with Articles XX and XXI of the General Agreement. on Tariffs and Trade (GATT) 1994.
Article 11. Used goods, including those identified as such in consignments or subheadings of the Harmonised System, shall not benefit from the Trade Release Programme.
T I T U L O III
SOURCE REGIME
Article 12. The Signatory Parties shall apply to imports under the Trade Release Scheme, the Origin Regime contained in Annex IV to this Agreement.
T I T U L O IV
NATIONAL TREATMENT
Article 13. In the field of national treatment, the Signatory Parties shall be governed by the provisions of Article III of the GATT 1994 and Article 46 of the Treaty of Montevideo 1980.
T I T U L O V
ANTI-DUMPING AND COUNTERVAILING MEASURES
Article 14. In the application of anti-dumping or countervailing measures, the Signatory Parties shall be governed by their respective laws, which shall be consistent with the Agreement on the Application of Article VI of the General Agreement on Tariffs. Customs and Trade 1994, and the WTO Agreement on Subsidies and Countervailing Measures.
Likewise, the Signatory Parties shall comply with the commitments made in respect of grants in the field of the WTO, without prejudice to the provisions of Article 18.
Article 15. Where one of the Signatory Parties of a Contracting Party applies anti-dumping or countervailing measures on imports from third countries, it shall inform the other Contracting Party for the assessment and monitoring of imports into its market of the products covered by the measures, through the competent national bodies.
Article 16. The Contracting Parties or Signatory Parties shall report any amendment or repeal of their laws, regulations or anti-dumping or countervailing duty provisions within 15 days of the publication of the the respective rules in the official dissemination body. Such communication shall be made through the mechanism provided for in Title XXIII of the Agreement.
T I T U L O VI
RESTRICTIVE PRACTICES OF FREE COMPETITION
Article 17. The Contracting Parties shall promote the actions necessary to provide an appropriate framework for identifying and sanctioning any restrictive practices of free competition.
T I T U L O VII
APPLYING AND USING GRANTS
Article 18. The Signatory Parties condemn any unfair trade practices and undertake to remove any measures which may cause distortions of bilateral trade, in accordance with the provisions of the WTO. In this regard, the Signatory Parties agree not to apply to reciprocal industrial trade subsidies that are contrary to the WTO provisions.
However, the Signatory Parties agree not to apply to reciprocal agricultural trade, all forms of export subsidies. When a Party decides to support its agricultural producers, it will orient its internal support policies towards those that:
(a) do not have any distortion effects or have minimal effects on trade or production, or
(b) are exempt from any reduction commitments under Article 6.2 of the WTO Agreement on Agriculture and its subsequent amendments. Products that do not comply with this Article will not benefit from the Commercial Release Program.
The Signatory Party deemed to be affected by any of these measures may request the other Party Signatory detailed information on the allegedly applied grant. The consulted Signatory Party shall submit detailed information within 15 days. Within thirty (30) days of receipt of the information, a consultation meeting will be held between the Signatory Parties involved.
This consultation, if the existence of export subsidies is found, the affected Signatory Party may suspend the benefits of the Commercial Release Program to the product or products benefited by the measure.
T I T U L O VIII
SAFEGUARDS
Article 19. The Contracting Parties adopt the Safeguards Regime contained in Annex V.
T I T U L O IX
CONTROVERSY SOLUTION
Article 20. Disputes arising out of the interpretation, application or non-compliance with this Agreement and of the additional Protocols and instruments adopted in the framework of this Agreement shall be determined in accordance with the Disputes under an Additional Protocol to this Agreement, which shall be incorporated by the Signatory Parties in accordance with the provisions of their internal legislation.
This Additional Protocol shall enter into force and shall be fully applicable to all Signatory Parties as of the date of the last ratification.
During the period between the date of entry into force of this Agreement and the date of entry into force of the Additional Protocol, the transitional mechanism set out in Annex VI shall apply. The Parties to the dispute, by mutual agreement, may apply the provisions contained in the Additional Protocol in any event not provided for in the said Annex.
Signatory Parties may provide for the provisional application of the Protocol to the extent that their national legislation so permits.
T I T U L O X
CUSTOMS VALUATION
Article 21. In their reciprocal trade, the Signatory Parties shall be governed by the provisions of the Agreement on the Application of Article VII of the General Agreement on Tariffs and Trade 1994 and by Resolution 226 of the Committee of the Representatives of the Parties. of the Aladi.
TIT U L O XI
STANDARDS, TECHNICAL REGULATIONS AND EVALUATION
OF COMPLIANCE
Article 22. The Signatory Parties shall be governed by the provisions of the Rules of Procedure, Technical Regulations and Conformity Assessment, as set out in Annex VII.
T I T U L O XII
SANITARY AND PHYTOSANITARY MEASURES
Article 23. The Contracting Parties undertake to ensure that sanitary and phytosanitary measures are not constituted as unjustified barriers to trade.
Signatory Parties shall be governed by the provisions of the Sanitary and Phytosanitary Measures Regime, contained in Annex VIII.
T I T U L O XIII
SPECIAL MEASURES
Article 24. The Republic of Argentina, the Federative Republic of Brazil, the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela adopt, for their respective reciprocal trade, the Special Measures Regime contained in the Annex IX, for the products listed in the Appendices to that Annex.
The Republic of Paraguay and the Eastern Republic of Uruguay will continue to evaluate the possible application of the Special Measures Regime, contained in Annex IX, for reciprocal trade with the Republic of Ecuador. In the meantime, the products included by the Republic of Ecuador in their respective Appendices to Annex IX will maintain their current levels and conditions of preference and will not benefit from the application of the established relief schedules. in Annex II for reciprocal trade between the countries referred to in this paragraph.
T I T U L O XIV
PROMOTING AND EXCHANGING BUSINESS INFORMATION
Article 25. The Contracting Parties shall support the programmes and tasks of commercial dissemination and promotion, facilitating the activity of official and private missions, the organisation of trade fairs and exhibitions, the holding of information seminars, market and other actions aimed at the best use of the Trade Liberation Program and the opportunities provided by the procedures to be agreed in commercial matters.
Article 26. For the purposes set out in the previous Article, the Contracting Parties shall schedule activities to facilitate reciprocal promotion by public and private entities in both Contracting Parties for the products of their interest, included in the Trade Release Program of this Agreement.
Article 27. The Signatory Parties shall exchange information on the regional and global offers and demands of their export products.
T I T U L O XV
SERVICES
Article 28. The Contracting Parties shall promote the adoption of measures to facilitate the provision of services. In addition and within a period to be defined by the Administrative Commission, the Signatory Parties shall establish the appropriate mechanisms for the progressive liberalisation, expansion and diversification of trade in services in their territories, in accordance with with the rights, obligations and commitments arising from the respective participation in the General Agreement on Trade in WTO Services (GATS), as well as in other regional and hemispheric fora.
T I T U L O XVI
INVESTMENTS AND DOUBLE TAXATION
Article 29. The Signatory Parties shall endeavour to encourage reciprocal investment, with the aim of intensifying bilateral trade and technology flows, in accordance with their respective national laws.
Article 30. The Signatory Parties shall examine the possibility of signing new Agreements on the Promotion and Reciprocal Protection of Investments. The bilateral agreements entered into between the Signatory Parties to the date of this Agreement shall remain in full force.
Article 31. The Signatory Parties shall examine the possibility of entering into new Agreements to avoid double taxation. The bilateral agreements entered into between the Signatory Parties to the date of this Agreement shall remain in full force.
T I T U L O XVII
INTELLECTUAL PROPERTY
Article 32. The Signatory Parties shall be governed by the Agreement on the Aspects of Intellectual Property Rights Related to Trade in the WTO, as well as the rights and obligations contained in the Convention on Biological Diversity of 1992. They will also seek to develop standards and disciplines for the protection of traditional knowledge.
T I T U L O XVIII
TRANSPORT
Article 33. The Signatory Parties shall promote the facilitation of land, river, lake, sea and air transport services in order to provide the appropriate conditions for the best circulation of goods and persons, taking into account the increased demand will result from the expanded economic space.
Article 34. The Administrative Commission shall identify those agreements concluded within the framework of Mercosur or its States Parties and the Andean Community or its Member Countries whose application by both Contracting Parties is of common interest.
Article 35. The Contracting Parties may lay down specific rules and commitments to facilitate land, river, lake, sea and air transport services which fall within the framework laid down in the rules of this Title and set out the deadlines for implementation.
T I T U L O XIX
INFRASTRUCTURE
Article 36. The Signatory Parties shall promote initiatives and cooperation mechanisms to enable the development, extension and modernisation of infrastructure in a number of areas, for the purpose of generating competitive advantages in reciprocal trade.
T I T U L O XX
SCIENTIFIC AND TECHNOLOGICAL COMPLEMENTATION
Article 37. The Contracting Parties shall endeavour to facilitate and support forms of collaboration and joint initiatives in the field of science and technology, as well as joint research projects.
For such purposes, they will be able to agree on reciprocal technical assistance programs, aimed at raising the productivity levels of these sectors, obtaining the maximum use of the resources available and stimulating the improvement of their competitive capacity, both in the region's and international markets.
This technical assistance will be developed between the competent national institutions.
The Contracting Parties shall promote the exchange of technology in agricultural, industrial, technical standards and animal and plant health and other areas considered to be of mutual interest.
For these purposes, the signed agreements on scientific and technological matters between the Signatory Parties to this Agreement shall be taken into account.
T I T U L O XXI
COOPERATION
Article 38. The Signatory Parties shall jointly promote initiatives aimed at promoting productive integration, the competitiveness of enterprises and their participation in reciprocal trade, with particular emphasis on small and medium-sized enterprises. (SMEs).
The Signatory Parties will seek to promote mechanisms of financial cooperation and the search for financing mechanisms aimed, among others, at the development of infrastructure projects and the promotion of reciprocal investments.
T I T U L O XXII
FREE ZONES
Article 39. The Signatory Parties agree to continue to address the issue of free zones and special customs areas.
T I T U L O XXIII
ADMINISTRATION AND ASSESSMENT OF THE AGREEMENT
Article 40. The administration and evaluation of this Agreement shall be the responsibility of a Management Committee composed of the Common Market Group of the Common Market of the South (Mercosur), a Contracting Party and the Representatives of the Member Countries of the Andean Community. Commission, signatories to this Agreement, by the other Contracting Party. The Administrative Commission shall be constituted within sixty (60) days from the date of entry into force of this Agreement and in its first meeting shall establish its rules of procedure. The delegations of the two Contracting Parties shall be chaired by the representative appointed by each of them.
The Administrative Commission shall meet in ordinary sessions at least once a year, instead of and date to be determined by mutual agreement and, in extraordinary sessions, when the Contracting Parties, prior consultations, agree.
The Administrative Commission shall adopt its decisions by agreement of the Signatory Parties. For the purposes of this Article, the Administrative Commission shall be deemed to have taken a decision by consensus on a matter under consideration, if neither of the Signatory Parties formally opposes the adoption of the decision, without prejudice to the provisions of the Dispute Settlement Scheme.
Article 41. The Administrative Commission shall have the following powers:
a) Vellar for compliance with the provisions of this Agreement and its Additional Protocols and Annexes;
b) Determine in each case the modalities and time limits in which the negotiations for the achievement of the objectives of this Agreement will be conducted, and may constitute working groups for this purpose;
c) To periodically evaluate the progress of the Trade Release Program and the general functioning of this Agreement;
d) To deepen the Agreement, including by accelerating the Trade Liberation Program, for any product or group of products which, by common agreement, the Signatory Parties agree to;
e) Define the date of the implementation of the updates of the Naladisa 96 referred to in the fourth paragraph of Article 3 of this Agreement and seek to resolve any differences of interpretation regarding classification tariff;
f) Contribute to the settlement of disputes in accordance with the provisions of Annex VI and the Additional Protocol approving the Dispute Settlement Regime;
g) To monitor the application of the trade disciplines agreed between the Contracting Parties, such as the origin regime, the safeguards regime, anti-dumping and countervailing measures and restrictive practices of the free movement. competence;
h) Modify the Rules of Origin and set or modify specific requirements of origin;
i) Establish, where appropriate, procedures for the application of the trade disciplines referred to in this Agreement and propose to the Contracting Parties any modifications to such disciplines;
(j) Establish appropriate mechanisms for the exchange of information relating to national law provided for in Article 16 of this Agreement;
k) Call on the Signatory Parties to comply with the objectives and provisions set out in Annex VII to this Agreement concerning Standards, Technical Regulations and Conformity Assessment and those set out in Annex VIII, Sanitary and Phytosanitary Measures;
(l) Exchange information on the negotiations which the Contracting Parties or Signatory Parties undertake with third countries to formalize agreements not provided for in the Treaty of Montevideo 1980;
m) Meet the other tasks entrusted to the Administrative Commission under the provisions of this Agreement, its Additional Protocols and other instruments signed in its field or by the Contracting Parties;
(n) Previewing, in its rules of procedure, the establishment of bilateral consultations between the Signatory Parties on the matters referred to in this Agreement; and (o) determining the reference values for the arbitrators ' fees to which refers to the Dispute Settlement Regime.
or) Determine the reference values for the arbitrators ' fees referred to in the Dispute Settlement Regime.
T I T U L O XXIV
GENERAL PROVISIONS
Article 42. As from the date of entry into force of this Agreement, the Signatory Parties decide to leave without effect the negotiated tariff preferences and the regulatory aspects related thereto, which are contained in the Partial Scope Agreements. Economic complementation N ° 28, 30, 39 and 48, in the Partial Scope Agreements of Renegotiation No 18, 21, 23 and 25 and in the Trade Agreements N ° 5 and 13, signed in the framework of the Treaty of Montevideo 1980. However, the provisions of such agreements which are not incompatible with this Agreement or where they relate to matters not covered by this Agreement shall remain in force.
Article 43. The Party concluding an agreement not provided for in the Treaty of Montevideo 1980 shall:
(a) Inform the other Signatory Parties within fifteen (15) days of the agreement, accompanying the text of the agreement and its complementary instruments, and
b) Announce, at the same opportunity, the willingness to negotiate, within ninety (90) days, concessions equivalent to those granted and received in a comprehensive manner.
T I T U L O XXV
CONVERGENCE
Article 44. On the occasion of the Conference on Evaluation and Convergence, as referred to in Article 33 of the Treaty of Montevideo 1980, the Contracting Parties shall examine the possibility of proceeding to the progressive convergence of the treatments provided for in the Present Agreement.
T I T U L O XXVI
ADHESION
Article 45. In compliance with the provisions of the Treaty of Montevideo 1980, this Agreement is open to accession, by prior negotiation, of the other member countries of the Aladi. Accession will be formalized once its terms have been negotiated between the Contracting Parties and the acceding country, through the conclusion of an Additional Protocol to this Agreement which shall enter into force thirty (30) days after being deposited in the General Secretariat of the Aladi.
T I T U L O XXVII
VALID
Article 46. This Agreement shall have an indefinite duration and shall enter into force bilaterally between the Signatory Parties which have communicated to the General Secretariat of the Aladi that they have incorporated it into their domestic law, in the terms of their respective legislation. The General Secretariat of the Aladi shall inform the respective Signatory Parties of the date of bilateral validity.
Without prejudice to Article 20, the Signatory Parties may apply this Agreement on a provisional basis as long as the necessary formalities for the incorporation of the Agreement into its domestic law are fulfilled. The Signatory Parties shall communicate to the General Secretariat of the Aladi the provisional application of the Agreement, which shall in turn inform the Signatory Parties of the date of bilateral application where appropriate.
T I T U L O XXVIII
COMPLAINT
Article 47. The Signatory Party wishing to denounce this Agreement shall communicate its decision to the Administrative Commission, with sixty (60) days before the deposit of the respective instrument of denunciation in the General Secretariat of the Aladi. The denunciation shall take effect for the Signatory Parties, after one year after the deposit of the instrument, and thereafter shall cease for the Complainant Party the acquired rights and obligations contracted under this Agreement. Without prejudice to the foregoing and before the six (6) months following the formalisation of the complaint, the Signatory Parties may agree on the rights and obligations which shall remain in force for the period to be agreed.
T I T U L O XXIX
AMENDMENTS AND ADDITIONS
Article 48. Amendments or additions to this Agreement may only be made by consensus of the Signatory Parties. They shall be subject to approval by decision of the Administrative Commission and formalised by Protocol.
T I T U L O XXX
FINAL PROVISIONS
Article 49. The General Secretariat of the Aladi shall be deposited with this Agreement, from which it shall send duly authenticated copies to the Signatory Parties.
Article 50. The importation by the Federative Republic of Brazil of the products included in this Agreement shall not be subject to the application of the Additional to the Fleet for the Renewal of the Merchant Navy, established by Decree-Law No 2404 of 23 of December 1987, in accordance with the provisions of Decree No 97945 of 11 July 1989, amending and supplementing it.
Article 51. The import by the Republic of Argentina shall not be subject to the application of the Statistics Rate redeployed by Decree No. 389 dated March 23, 1995, its modifications and additions.
Article 52. The time limits referred to in this Agreement shall be expressed in calendar days and shall be counted from the day following the act or act referred to therein, without prejudice to the provisions of the relevant Annexes.
T I T U L O XXXI
TRANSIENT PROVISIONS
FIRST. In order to facilitate the full implementation of the Additional Protocol referred to in Article 20, the Signatory Parties, within ninety (90) days from the entry into force of this Agreement, shall draw up their list of arbitrators. communicate to the other Signatory Parties accompanying the relevant detailed curriculum vitae of the designated parties. The list shall be composed of ten (10) jurists of recognised competence in matters which may be subject to controversy, two (2) of which shall not be nationals of any of the Signatory Parties.
The Signatory Parties, within fifteen (15) days from the date of receipt of the communication referred to in the preceding paragraph, may request further information on the appointed arbitrators.
The information requested must be supplied as soon as possible.
The list of arbitrators submitted by a Signatory Party may not be objected to by the other Signatory Parties.
Fulfilled the deadline of fifteen (15) days, the list will be deposited with the General Secretariat of the Aladi.
SECOND. The Administrative Commission shall, at its first meeting, provide the necessary actions for the drawing up of the Rules of Procedure of the Arbitration Courts and the Rules of Procedure of the Additional Protocol dealing with Article 20, in order to ensure that agreed to the date of entry into force of the latter.
THIRD. The Additional Protocol dealing with Article 20 shall be submitted for ratification by the Signatory Parties which so require before one hundred and eighty (180) days from the entry into force of this Agreement.
FOURTH. As regards pharmaceutical products, cosmetics, food and other products for human use, the Signatory Parties undertake to ensure the transparency of their legal provisions and to ensure that the other Parties are the same. treatment granted to their nationals in relation to their technical and scientific assessment laws and procedures.
The Administrative Commission at its first meeting, with the presence of the corresponding technical representatives, will form a group responsible for consultations and elaborate specific proposals on matters relating to the products mentioned above. in the preceding paragraph. IN FE OF THE CUAL, the respective Plenipotentiaries subscribe to this Protocol in the city of Montevideo at the eighteen days of October of two thousand four, in an original in the Spanish and Portuguese languages, both texts being equally valid.
By the Government of the Republic of Argentina,
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 Carrion Eguiguren.
By the Government of the Republic of Paraguay,
Jose Martinez Lezcano.
By the Government of the Eastern Republic of Uruguay,
Didier Opertti.
By the Government of the Bolivarian Republic of Venezuela,
Jesus Arnaldo Perez.
December 20, 2004.
This is a true copy of the original.
Juan F. Rojas Penso,
Ambassador
Secretary General.
ECONOMIC COMPLEMENTATION AGREEMENT NUMBER 59 SIGNED BETWEEN THE GOVERNMENTS OF THE ARGENTINE REPUBLIC, THE FEDERAL REPUBLIC OF BRAZIL, THE REPUBLIC OF PARAGUAY AND THE EASTERN REPUBLIC OF URUGUAY, STATES PARTIES TO MERCOSUR GOVERNMENTS OF THE REPUBLIC OF COLOMBIA, THE REPUBLIC OF ECUADOR AND THE BOLIVARIAN REPUBLIC OF VENEZUELA, MEMBER COUNTRIES OF THE ANDEAN COMMUNITY
First Additional Protocol
DISPUTE RESOLUTION REGIME
CHAPTER I
Parties and scope of application Article 1. The 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 Countries of the Andean Community, shall be called Signatory Parties. The "Contracting Parties" to this Regime are the Mercosur and the Member Countries of the Andean Community that subscribe to the Agreement.
Article 2. Disputes arising in connection with the interpretation, application or non-compliance with the provisions of the Agreement on the Partial Scope of Economic Complementation, concluded between Mercosur and the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela (ACE N ° 59), hereinafter referred to as the "Agreement" and the instruments and protocols signed or signed in the framework of the Agreement, shall be subject to the Disputes as set out in this Protocol.
Article 3. Notwithstanding the provisions of the foregoing Article, any disputes arising in connection with the provisions of this Agreement, in matters governed by the Marrakesh Agreement establishing the World Organisation of the Trade (hereinafter referred to as the "WTO Agreement") and in the conventions negotiated in accordance with it, may be settled in one or another forum, at the choice of the claimant party. Once a dispute settlement procedure has been initiated under this Regime or one under the WTO Agreement, the selected forum shall be mutually exclusive.
For the purposes of this article, dispute settlement procedures shall be deemed to have been initiated in accordance with the Understanding of the Rules and Procedures governing the Dispute Settlement of the World Trade Organization. Trade when the party
claimant requests the integration of a panel in accordance with article 6 of that Understanding.
The procedures for settling disputes under this Regime will also be considered to be initiated, once the request for direct negotiations has been submitted. However, if the Administrative Commission is to be established, the procedure shall be deemed to be initiated with the request for the latter's call.
Article 4. For the purposes of this Regime, may be parties to the dispute, hereinafter referred to as "parties", on the one hand, one or more States Parties to Mercosur and, on the other, one or more CAN Member Countries that subscribe to this Agreement. Agreement.
CHAPTER II Direct Negotiations
Article 5. The parties will seek to resolve the disputes referred to in Article 2 by conducting direct negotiations to reach a mutually satisfactory solution.
Direct negotiations will be conducted, in the case of Mercosur, through the Pro Tempore Presidency or the National Coordinators of the Common Market Group, as appropriate, 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 member country designates, as appropriate, with the support of the General Secretariat of the Andean Community.
Direct negotiations may be preceded by reciprocal consultations between the parties.
Article 6. In order to inorder the procedure, any of the parties shall request in writing the other party the conduct of direct negotiations, specifying the reasons for them, the circumstances in fact and the legal bases. In the case of the dispute, with a copy to the other Signatory Parties, the President Pro Tempore of Mercosur and the Presidency of the Commission of the Andean Community through the General Secretariat of the Andean Community.
Article 7. The party receiving the request for the conclusion of direct negotiations shall reply within ten (10) days after the date of its receipt. The parties shall exchange the information necessary to facilitate the direct negotiations and shall give such information reserved.
These negotiations may not be prolonged for more than thirty (30) days, counted from the date of receipt of the formal request to initiate them, unless the parties agree to extend that period to a maximum of fifteen (15) days. additional.
CHAPTER III
Intervention by the Administrative Commission
Article 8. If, within the period referred to in the third paragraph of Article 7, no mutually satisfactory solution is reached or if the dispute is only partially resolved, the claimant party may either request in writing to meet the Commission, hereinafter the "Commission", to deal with the matter or to proceed directly to the arbitration.
The written request must include in addition to the circumstances of fact and the legal bases related to the dispute, the provisions of the Agreement, Additional Protocols and instruments signed in the framework of the Agreement, consider to be violated.
Article 9. The Commission shall meet within the next thirty (30) days from the date of receipt by the President Pro Tempore of Mercosur and the Presidency of the Commission of the Andean Community through the General Secretariat of the Andean Community, of the application referred to in the previous Article. If within the time limit laid down in this Article it is not possible to hold the meeting of the Commission or the Commission shall not act in accordance with the
article 11, the claimant party may terminate this stage, and request the commencement of an arbitration procedure.
Article 10. The Commission may, by consensus, accumulate two or more procedures relating to cases which it knows only when, by its nature or possible subject-matter, it considers it appropriate to examine them together.
Article 11. The Commission shall assess the dispute and give the parties an opportunity to present their positions and if necessary provide additional information, with a view to reaching a mutually satisfactory solution.
The Commission shall make any recommendations it considers relevant, for the purposes of which it shall have a period of thirty (30) days from the date of its first meeting.
In its recommendations, the Commission shall take into account the legal provisions of the Agreement, the additional instruments and protocols it considers applicable and the relevant legal and factual grounds. If the Commission does not reach a mutually satisfactory solution or does not issue its recommendation within the time limit referred to above, it shall be immediately terminated by the end of the period provided for in this Chapter. The Commission shall, in its recommendation, set the time limit for its adoption, which shall not have been accepted by the parties or have been partially complied with, the arbitration procedure may be initiated.
When the Commission considers expert advice necessary to formulate its recommendations, it will order its participation. In this case, you will have an additional 15 days to the deadline provided for in the second paragraph of this article to make your recommendation. Experts shall have proven technical recognition and neutrality.
CHAPTER IV
Arbitration procedure
Article 12. Where the dispute could not have been resolved by the application of the procedures provided for in Chapters II or III or the time limits provided for in those Chapters have expired without the corresponding formalities being completed, any the parties may request the initiation of the arbitral proceedings for which they shall communicate that decision to the other party, with a copy to the other Signatory Parties, to the Chair Pro Tempore of Mercosur and to the Presidency of the Commission of the Andean Community through the General Secretariat of the Andean Community and the General Secretariat of the Aladi.
Article 13. The parties declare that the jurisdiction of the arbitral tribunal, in each case, is mandatory, ipso facto and without special agreement, in order to ascertain and resolve the disputes referred to in this Regime.
Article 14. Within 90 days of the entry into force of the Agreement, each of the Signatory Parties shall communicate to each other their list of arbitrators accompanied by the detailed curriculum vitae of each of them, which shall be composed of: 10 (10) arbitrators, two (2) of which shall not be nationals of any of the Signatory Parties. The arbitrators shall be jurists of recognised competence in matters which may be the subject of dispute. The Signatory Parties, within fifteen (15) days from the date of receipt of the communication referred to in the preceding paragraph, may request further information on the appointed arbitrators, which shall be supplied to the brevity possible.
Within 15 days, the list will be deposited with the General Secretariat of the Aladi.
The list of arbitrators submitted by a Signatory Party may not be objected to by the other Signatory Parties.
The subsequent modifications to the list will be subject to the provisions of this article.
Article 15. The arbitral tribunal before which the proceedings shall be conducted shall be composed of three (3) arbitrators and shall be made up as follows: (a) Within fifteen (15) days after the communication referred to in Article 12, the appoint an arbitrator and his alternate, chosen from the list referred to in Article 14;
b) Within the same period of time, the parties shall appoint by common agreement a third arbitrator referred to in Article 14, who shall preside over the arbitral tribunal. This designation shall be borne by persons who are not nationals of the parties;
(c) If the designations referred to in subparagraph (a) are not made within the time limit, they shall be made by lot by the General Secretariat of the Aladi, at the request of either party, among the arbitrators who make up the mentioned list;
(d) If the designation referred to in subparagraph (b) is not made within the prescribed period, it shall be drawn up by a draw by the General Secretariat of the Aladi, at the request of either party, from among the non-national arbitrators of the Parts of the list in Article 14; and
(e) By common agreement, the parties may designate arbitrators which do not appear on the lists referred to in Article 14.
The list of arbitrators will be constituted at the time of the beginning of the controversy, even if one of the Signatory Parties has not communicated its list. Without prejudice to this, any Signatory Party may supplement or amend it at any time, but this shall not affect the appointment of the arbitrators of the disputes in progress.
The designations provided for in subparagraphs (a), (b), (c), (d) and (e) of this Article shall be communicated to the Contracting Parties and, where appropriate, to the General Secretariat of the Aladi.
The alternate members shall replace the holder in the event of incapacity, excuse, inhibition or recusal, the latter, in accordance with the terms laid down in the Rules of Procedure of this Regime.
Article 16. The members of the arbitral tribunal shall act in a personal capacity and not as representatives of the parties or of a Gabiemo. Accordingly, the parties shall refrain from giving instructions to them and from exercising on them any kind of influence with respect to matters submitted to the arbitral tribunal.
Article 17. Where several Signatory Parties are involved in the same dispute, either as a claimant or a claimant, they may act before the Court of Arbitration in a joint or individual manner. In both cases they shall agree to the designation of a single common arbitrator. If that designation is not made, it shall apply as set out in Article 15.
Article 18. At the request of a party, the arbitral tribunal may accumulate two or more proceedings, provided that there is identity in terms of matter and claim.
Article 19. The arbitral tribunal shall establish its seat, in each case, in the territory of one of the parties to the dispute. In all cases, the award shall be made in the territory of the party that must comply with it.
Article 20. The Commission shall establish the rules of procedure of the Arbitration Courts which it considers necessary for the best application of this Regime, which shall ensure that the parties have the opportunity to be heard and shall ensure that the procedure is made in an expeditious manner. For the purposes of drawing up the rules, the Commission shall take into account the following
:(a) The procedure shall at least guarantee the right to a hearing before the Arbitration Court, as well as the opportunity to present pleadings and replies in writing;
(b) The hearings before the Court, the deliberations and conclusions, as well as all the written and communications related to the dispute, shall be of a reserved nature and shall be of exclusive access to the Signatory Parties, conditions laid down in the Regulation of this Regime.
Documents qualified by the parties as confidential shall be of exclusive access to the arbitrators, who shall determine the provision of a non-confidential summary.
Arbitral awards, their clarifications and provisions on enforcement measures shall be of a public nature;
(c) The procedure of the arbitral tribunal shall provide for sufficient flexibility to ensure the quality of its work without undue delay.
If the Commission has not adopted the rules of procedure referred to in this Article and in general in case of a vacuum or omission thereof, the Arbitration Court shall establish its own rules taking into account the principles before referred to. If necessary, the Arbitration Court may agree on different rules, with the consent of the parties.
Article 21. The parties shall report to the Court of Arbitration on the instances fulfilled prior to the arbitral proceedings and shall present the grounds of fact and the right of their respective positions.
The parties may appoint their representatives and advisers to the Arbitration Court for the defence of their rights.
Article 22. At the request of a party and to the extent that there are reasonable grounds for believing that the maintenance of the situation which is the subject of the dispute would cause serious and irreparable damage, the Court of Arbitration may, acting unanimously, provide for the application of provisional measures.
Such measures shall be subject to the provisions of the Rules of Procedure of this Regime, which shall provide for the provision of guarantees or guarantees; whereas the measures shall be proportionate to the alleged damage; and right of the parties to be previously heard.
Provisional measures will not prejudge the outcome of the Laudo.
The parties shall comply immediately or within the time limit determined by the Arbitration Court, any interim measure, which shall extend until such time as the Laudo referred to in Article 26, except that the
Court decided to lift them early.
Article 23. The arbitral tribunal may require information from any governmental entity, natural person, or public or private legal person of the Signatory Parties that it deems appropriate. The arbitral tribunal may also, after approval of the parties, avail itself of the contest of experts or experts for the best sustenance of the Laudo.
The Arbitral Tribunal may confer confidentiality on the information provided to it.
Article 24. The arbitral tribunal shall take into consideration the arguments put forward by the parties, the evidence produced and the reports received, without prejudice to other elements which it considers appropriate.
Article 25. The arbitral tribunal shall decide on the dispute on the basis of the provisions of the Agreement, its Additional Protocols and the instruments signed in the framework of the Agreement and the principles and provisions of international law applicable in this field. and the relevant facts and law grounds.
Article 26. The arbitral tribunal shall issue its award in writing within sixty (60) days from the date of acceptance of the last of its appointed members.
The above deadline may be extended by the Court for a maximum of thirty (30) days, which will be notified to the parties.
The Arbitral Award shall be adopted by a majority, shall be founded and signed by the members of the Tribunal. It shall not be able to substantiate votes in dissent and shall maintain the confidentiality of the vote.
Article 27. The Arbitral Award shall necessarily contain the following elements, without prejudice to others which the Arbitration Court considers appropriate to include:
1. Indication of the Parties to the dispute.
2. The name and nationality of each member of the arbitral tribunal and the date of its formation.
3. The names of the representatives of the parties.
4. The object of the controversy.
5. A report on the development of the arbitral proceedings, including a summary of the acts performed and the allegations of each of the parties.
6. The decision reached in relation to the dispute, including the grounds of fact and law.
7. The compliance deadline if applicable.
8. The proportion of the costs of the arbitral proceedings to be covered by each party as laid down in Article 33. 9. The date and place where it was issued; and
10. The signature of all members of the Arbitration Court.
Article 28. Where the Arbitration of the Arbitration Court concludes that the measure is incompatible with the Agreement, the Party shall be required to take the necessary measures to comply with the Agreement.
Article 29. The arbitral awards are unappealable, obligatory for the parties from the receipt of the respective notification and shall have regard to them force of res judicata.
The Lauds must be met within sixty (60) days, unless the arbitral tribunal sets a different time limit, taking into account the arguments put forward by the parties during the arbitral proceedings.
The party required to comply with the Laudo shall, within ten (10) days, notify the other Party of the measures it shall take to that effect.
Without prejudice to the provisions of Article 31, in case the party benefited by the Laudo understands that the measures to be taken are not satisfactory, it may raise the situation to the consideration of the
Arbitral Tribunal. The Court will have a period of ten (10) days to rule on the issue.
The provisions of this article will not suspend the time limit for the execution of the Laudo, unless the Tribunal decides otherwise.
Article 30. Either party may request, within fifteen (15) days after the date of notification of the Laudo, the clarification of the same in respect of its scope or the way to comply with it. The interposition of this clarification remedy shall not suspend the time limit for the execution of the Laudo, unless the Tribunal decides otherwise, if the circumstances so require.
The Arbitral Tribunal shall rule on the clarification within fifteen (15) days of its interposition.
Article 31. If, within the time limit laid down in Article 29, no compliance has been made to the Arbitral Laudo or has been only partially complied with, the Claimant Party may temporarily suspend the Claimed Party concessions or other obligations. (a) to obtain compliance with the Laudo and to inform the Commission and the Commission of its decision in writing, indicating clearly and accurately the type of measures to be taken. These measures may not extend beyond the implementation of the Laute.
In the event that the claimed party considers excessive the suspension of concessions or obligations adopted by the claimant party, it shall communicate its objections to the other party and the Commission and may request that the Arbitration Court which issued the Laubo takes a decision on whether the measure taken is equivalent to the degree of injury suffered. The Court shall have a period of thirty (30) days for its delivery, counted from the date on which it is established for that purpose.
Article 32. The situations referred to in Articles 29, 30 and 31 must be resolved by the same arbitral tribunal which the Laudo issued, but if it cannot be established with all the original members who are the holders to complete the integration, shall apply the procedure laid down in Article 15.
Article 33. The expenses of the arbitral tribunal include the fees of the arbitrators, as well as the costs of tickets, transfer costs, viatics, whose reference values the Commission establishes, notifications and other fees that the arbitration demands. The expenses of the arbitral tribunal as defined in the first paragraph of this article shall be distributed in equal amounts between the claimant and the claimed party.
CHAPTER V
General provisions
Article 34. Communications between Mercosur or its States Parties and the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela shall be submitted in the case of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, to the national authority that each member country designates and to the General Secretariat of the Andean Community and in the case of Mercosur, to the Presidency Pro Tempore or to the National Coordinators of the Market Group Common, as appropriate, with a copy to the Mercosur Secretariat.
The recommendations of the Commission, the Arbitration Award, its clarifications, and the pronouncements on retaliatory measures, shall be communicated to all Signatory Parties and entities referred to in the preceding paragraph in full text.
Article 35. The time limits referred to in this Scheme shall be expressed in calendar days and shall be counted from the day following the act or event to which it relates. Where the time limit starts or expires on a non-working day, the following working day shall start to run or expire.
Article 36. The members of the arbitral tribunal, in accepting their appointment, shall assume in writing the commitment to act in accordance with the provisions of this Regime. Such written undertaking shall be addressed to the Secretary-General of the Aladi and shall, by means of a sworn declaration, express independence in respect of the interests covered by the dispute and the obligation to act with impartiality not accepting suggestions from third parties or parties.
Article 37. At any stage of the procedure, the party that filed the complaint may desist from it. The parties will also be able to reach a compromise, with the controversy in both cases being concluded. Withdrawal or transactions shall be communicated in writing to the Commission or to the arbitral tribunal for the purpose of taking the appropriate measures.
Article 38. For the purposes of complying with this Regime, the exchange of documentation may be carried out by the most expeditious means of dispatch, including facsimile and electronic mail, provided that it is sent immediately the original documentation.
Such original documentation shall give a true date of faith unless the Court or, as the case may be, the parties, agree to confer such a character on it by the electronic or digital means used.
Article 39. Disputes between members of a Contracting Party shall be resolved in accordance with the regulations governing the interior of that Contracting Party.
Article 40. None of the actions taken or documentation submitted in the course of the procedures provided for in this Regime shall prejudge the rights or obligations that the parties have in the framework of other Agreements.
The General Secretariat of the Latin American Integration Association, Aladi, will be deposited with this Protocol, from which it will send duly authenticated copies to the governments of the Signatory Parties. IN FE OF THE CUAL, the respective Plenipotentiaries subscribe to this Protocol in the city of Montevideo, at the eighteen days of October of two thousand four, in an original in the Spanish and Portuguese languages, both texts being equally valid.
By the Government of the Republic of Argentina,
Rafael Antonio Bielsa.
By the Government of the Federative Republic of Brazil,
Celso ...
By the Government of the Republic of Colombia,
Carolina Barco Isakson.
By the Government of the Republic of Ecuador,
Leonardo Carrion E.
By the Government of the Republic of Paraguay,
Jose Martinez Lazcano.
By the Government of the Eastern Republic of Uruguay,
Didier Opertti.
By the Government of the Bolivarian Republic of Venezuela,
Jesus Amado Perez.
December 20, 2004.
This is a faithful copy of the original.
Juan F. Rojas Penso,
Ambassador-General Secretary.
EXECUTIVE BRANCH OF PUBLIC POWER
PRESIDENCY OF THE REPUBLIC
Bogotá, D. C., February 28, 2005
Approved. sometanse to the consideration of the honorable Congress
National for Constitutional Effects.
(Fdo.) ALVARO URIBE VELEZ
The Foreign Minister,
(Fdo.) Carolina Barco Isakson.
DECRETA:
Article 1. Please approve the " Economic Complementation Agreement signed between the governments of the Republic of Argentina, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, States Parties to the Mercosur and the governments of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, Member Countries of the Andean Community "and the" First Additional Protocol-Regime for the Settlement of Controversies ", signed in Montevideo, Uruguay, at eighteen (18) days of the month of October two thousand four (2004).
Article 2. In accordance with the provisions of Article 1 of Law 7ª of 1944, the " Economic Complementation Agreement signed between the governments of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay, and of the Eastern Republic of Uruguay, the States Parties to Mercosur and the Governments of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, Member Countries of the Andean Community and the First Additional Protocol -Regime of Settlement of Controversies ", signed in Montevideo, Uruguay, at eighteen (18) In October, two thousand four (2004), which under article 1 of this law are approved, will force the country from the date on which the international link with respect to them is perfected.
Article 3. This law applies from the date of its publication. Given in Bogotá, D. C., to the ... Presented to the honorable Congress of the Republic by the Minister of Foreign Affairs and the Minister of Commerce, Industry and Tourism. Carolina Boat Isakson, Minister of Foreign Affairs; Jorge Humberto Botero, Minister of Commerce, Industry and Tourism.
EXPLANATORY STATEMENT
Honorable Congressmen:
On behalf of the National Government, and in compliance with articles 150 numeral 16, 189 numeral 2 and 224 of the Constitution of Colombia, we present to the honorable Congress of the Republic the bill, " by means of which the ' Agreement of Economic Complementation undersigned between the governments of the Republic of Argentina, of the Federative Republic is approved from 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, Member Countries of the Andean Community 'and the' First Additional Protocol-The System of Controversies ' ", signed in Montevideo, Uruguay, at eighteen (18) days of the month of October of two thousand four (2004).
This document consists of four parts and three attachments. The first part presents the political and legal background to the Agreement. The second describes some considerations of economic order that surrounded the negotiation of the same. The third outlines some salient features of the treaty and the latter part contains the conclusions.
In the first annex, the economic background of our trade relationship with Mercosur is developed. The second annex describes in detail the main features of the treaty, and in the third annex presents our exportable offer and the conditions of access of Colombian goods to Mercosur.
1. Political and legal background to the Agreement
1.1 Historical Evolution of Latin American Integration
On February 18, 1960, the Treaty of the creation of the Latin American Free Trade Association (ALALC) was signed in Montevideo, in order to promote the economic integration of Latin American countries, through the expansion of the size of the Latin American Free Trade Association (ALALC). of its markets and the expansion of its reciprocal trade. The initial agreement covered seven countries: Argentina, Brazil, Chile, Mexico, Paraguay, Peru and Uruguay. Later, Colombia, Ecuador, Bolivia and Venezuela joined.
On May 26, 1969 the Andean countries(1) based on the principles of equality, justice, peace, solidarity and democracy, and determined to achieve these ends through the formation of a system of integration and cooperation that is conducive to the balanced economic development of their peoples, and aware that integration is a historic, political, social, economic and cultural mandate in order to preserve their sovereignty and independence, signed the Andean Subregional Integration Agreement in Cartagena de Indias, today's constitutive charter Andean Community of Nations.
On August 12, 1980, the Treaty of Montevideo was signed, which instituted the Latin American Integration Association (ALADI), replacing the 1960 Treaty by which the ALALC had been created. With this replacement, a new operational legal order was established to advance the integration process, which was complemented by the resolutions adopted on the same date by the Council of Foreign Ministers of the European Union. ALALC.
35 years after the Andean Pact was created, today the Andean Community, CAN, and sharing the central objective exalted in this Agreement to promote the development of the countries in conditions of equity through economic and social cooperation and On 18 October, the Agreement on the Partial Reach of Economic Complementation No 59 was signed between Colombia, Ecuador and Venezuela, members of the Andean Community and the States Parties to Mercosur, as a step forward. towards that great role of 1960, the formation and consolidation of the great community of nations
The confluence between the Andean Community and Mercosur [Common Market of the South], a broad-based grouping in the region's integration efforts, must be seen as a historic opportunity to promote the development of our countries, increase productive complementarity, deepen trade exchange, promote a territorial approach to development, promote sectoral processes and the articulation of regional physical infrastructure (transport, telecommunications and energy), as well as strengthening the negotiating power vis-à-vis third countries and international organisations.
The signing of this Agreement, after more than ten years of interrupted negotiations, constitutes the basis of the South American integration, as seven of the ten countries of the Continent have signed it. In addition, Bolivia is part of the Andean Community and since the mid-1990s it has a free trade zone with Mercosur; Peru is finalizing the negotiation of an Agreement similar to ACE 59; and Chile is an associate member of the Mercosur and has deep agreements with all the countries in the area.
1.2 The Treaty of Montevideo 1980
The Treaty of Montevideo, 1980, which created the Latin American Integration Association, ALADI, was approved by Colombia through Law 45 of 1981. The aim is to continue the process of integration aimed at promoting the economic, social, harmonious and balanced development of the region. The objective of the process is to arrive in the long term, gradually and progressively, to the establishment of a common Latin American market. Argentina, Bolivia, Brazil, Colombia, Chile, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela signed the agreement. The Republic of Cuba recently joined.
The Treaty lays down various principles, including pluralism, convergence, flexibility, differential treatment and multiplicity. The principle of flexibility allows for the concertation of agreements with partial scope, which is regulated in a manner compatible with the progressive achievement of convergence and the strengthening of integration links. The multiplicity makes possible different forms of consultation between the Member States, using all the instruments that are capable of dynamising and expanding markets at regional level. The most relevant elements of the Treaty of Montevideo 1980 are:
-Previews the use of three basic mechanisms for the achievement of its objectives: regional tariff preference; regional reach agreements and partial-scope agreements (Article 4).
-Sets out the mandatory characteristics and requirements to be provided by the above mechanisms, as well as the options that may be developed by member countries (Articles 6 to 14).
-Regulates in detail the agreements of partial scope, which may be commercial, economic, agricultural, promotion of trade and other modalities, among which, among others, matters such as cooperation scientific and technological, the promotion of tourism and the preservation of the environment. (Articles 7 to 14).
-Previews the possibility of partial-scope agreements containing trade-release modalities and specific rules on origin, safeguard clauses, non-tariff restrictions, withdrawal of concessions, negotiation of concessions; denunciation and coordination and harmonization of policies, with the provision that, if specific rules have not been agreed upon in them, the rules adopted by the Member States with a general scope (Article 9, literal and) must be applied; (g)
-Enables the conclusion of partial-scope agreements with non-member countries of the ALADI, i.e.: a) With other countries and areas of integration of Latin America (Articles 24 and 25); b) With other areas of integration from outside Latin America (Article 26), and (c) With other developing countries and areas of integration outside Latin America (Article 27);
-Creates as political bodies of the ALADI to the Council of Foreign Ministers, called "the Council"; the Conference of Evaluation and Convergence, called the "Conference", and the Committee of Representatives, called the "Committee", all They are intergovernmental, that is to say, made up of Ministers or officials of the governments of the Member States (Articles 28 to 37). It also creates the General Secretariat as a technical body (Article 38), and
-Fixed the powers and powers of the aforementioned bodies as regards the management, administration and implementation of the Treaty (Articles 28 et seq.).
As mentioned above, the treaty that is being submitted to the Congress today is an agreement of partial scope for economic complementation concluded in the framework of the Treaty of Montevideo 1980.
1.3 Constitutional and Legal Framework for International Relations and Foreign Trade in Colombia
The Preamble of the Political Constitution of 1991 indicates that the Colombian people, in exercise of their sovereign power, are "committed to promoting the integration of the Latin American community." Article 9 of the Constitution states that " the State's foreign relations are based on national sovereignty, in the
respect for the self-determination of the peoples and for the recognition of the principles of international law accepted by Colombia. "
Article 150 assigns to the Congress of the Republic the approval or approval of the international treaties to be held by the National Government and the issuance of the general rules based on which the National Government must regulate foreign trade.(2) For its part, Article 189 attributes to the President of the Republic such regulation and assigns the direction of international relations and the celebration of treated with other States and international law entities.(3) Article 224 authorizes the provisional application of treaties of an economic nature and (a) trade, signed in the field of an international body which so provides.
On his turn, Article 226 states that the State "will promote the internationalization of economic relations ... on the basis of equity, reciprocity and national convenience." Article 227 that " will promote economic integration ... with the other nations and especially with the countries of Latin America and the Caribbean through the conclusion of treaties (...) on equity, equality and reciprocity (...) ".
For its part, the Law 7th of 1991-the Framework Law on Foreign Trade-establishes the legal framework for the management of foreign trade and international trade relations in Colombia.
1.4 Economy Internationalization Policy in the National Development Plan
Law 812 of 2003-National Development Plan, in the septate numerals of the literals a) and b) of article 8, establishes the general guidelines to which the Government must be subject in the development of foreign relations and international trade, within a policy of insertion of Colombia into the world economic environment. There is an explicit mandate to advance a " negotiation for the formation of a free trade zone between the Andean Community and the countries of the Common Market of the South (Mercosur), or a negotiation with some of these two countries. blocks where there is consensus ".
" A. (...) 7. Foreign relations and international cooperation policy.
The National Government will work on a positive insertion of Colombia into the international environment. In this sense, foreign policy will be harmonized with the priorities of domestic policy, seeking its proper understanding by the international community. International promotion and increased exports will be the main objective of Colombian foreign policy (...)
In bilateral relations, political dialogue will be strengthened at all levels and economic and trade interests will be promoted, seeking to encourage investment and to attract cooperation towards the National Government's priority programs and territorial entities.
In particular, the countries of Latin America and the Caribbean will strengthen the integral development of the border areas and will promote the strengthening and consolidation of the Andean Community. The United States will advance the use of the ATPDEA; the process of negotiating Colombia for the FTAA within a pluralistic and participatory framework that integrates regional needs with national interests; negotiation Bilateral free trade agreements; and the promotion of Temporary Protected Status (TPS) to the Colombian community. And with Europe we will work for an Association Agreement between the Andean Community and the European Union, which incorporates the preferences of the Generalized Andean Preferences System, and the dismantling of trade barriers for our exports.
B. (...) 7. Commercial policy
It will continue with the implementation of the 1999-2009 Strategic Plan Exporter as a long-term international insertion strategy involving the private sector, the public sector and the academy. New strategies for the diversification of the target markets for Colombian exports will be included within the Strategic Plan.
The Free Trade Agreement for the Americas (FTAA) will be sought to be balanced, remove unnecessary barriers to international trade in goods and services, allow for an opening in public procurement markets, and have a greater discipline in the internal aid for agricultural products, for which spaces and instances of citizen participation will be implemented, that will allow to know the needs of the different social sectors affected and involved, in the national territory.
It will be sought that the negotiations taking place within the World Trade Organization (WTO) are aimed at achieving a reform of the world trade in agricultural products and the elimination of the tariff and tariff peaks, among others.
Efforts will be made to consolidate a free trade agreement with the United States and other nations. In this regard, negotiations will be brought forward for the formation of a free trade zone between the Andean Community and the countries of the Common Market of the South (Mercosur), or a negotiation with some countries of these two blocs where there is consensus. Colombia will deepen agreements with Central America and the Caribbean, Asia, the Pacific, the Middle East and the European Union to ensure a greater presence in these regions.
The Ministry of Commerce, Industry and Tourism will actively participate in the dissemination and training of new tariff benefits and the identification of products and potential buyers derived from the Law of Preferences. Andean Tariff (ATPA).
Agricultural export promotion processes will continue, providing reasonable protection for agricultural production and strengthening market intelligence within the framework of the World Trade Organization. " (Highlighted outside of the text).
All these purposes should be considered part of Colombia's national interest in the negotiations.
In particular, the mandate to bring forward negotiations with the Mercosur countries is met with the signing of the agreement that the government submits to the Congress on this occasion. One of the most salient features of the ACE-59 was the consolidation of the integration between the nations of the Andean Community and the Mercosur nations, with only the negotiations between Peru and Mercosur being closed. course.
1.5 Definition of Colombia's General Interest in International Trade Negotiations
The Political Constitution does not define Colombia's "general interest" in international trade negotiations. According to the Foreign Trade Framework Law, the national interests that must be guaranteed in the commercial negotiation processes are those that allow " 1. Promote the internationalization of the Colombian economy to achieve a growing and sustained pace of development. 2. To promote and promote the foreign trade in goods, technology and services, and in particular exports. 3. To stimulate integration processes and bilateral and multilateral trade agreements that expand and facilitate the country's external transactions. 4. To promote the modernization and efficiency of local production, to improve its international competitiveness and to adequately meet the needs of the consumer. 5. To seek legal and equitable competition for local production and to grant adequate protection, in particular, against unfair practices of international trade. 6. To support and facilitate the private initiative and the management of the various economic agents in the foreign trade operations (...) " (article 2nd Law 7th of 1991).
Article first of the Charter states that "Colombia is a Social State of Law" founded "on the prevalence of the general interest," and the article 209 provides that "The administrative function is at the service of the general interests". In this context, the general interest of Colombia includes, without limitation, the principles laid down in the preamble and the first articles of the Constitution, such as general prosperity, peaceful coexistence, justice, access for all the inhabitants of health, education and work, the preservation of the environment and the validity of a democratic and participatory political order.
Therefore, it is clear that the general interest of Colombia in the trade negotiations is not exclusively identified with the economic and political interests of sectors, trade unions, companies, business groups, associations, trade unions or individual non-governmental organisations. The construction of the national interest is a constant challenge, since it is not the simple sum of the interests of each of the individuals that make up the society. The national interest includes but is not exhausted by the reconciliation of very diverse and sometimes contradictory interests, which include:
The essential aims of the Social State of Law defined by the Political Constitution, such as human dignity, work, justice, freedom, economic and social development, solidarity, general prosperity, the effectiveness of principles and constitutional rights, participatory democracy, national independence, peaceful coexistence and the validity of a fair order.
Social goods like health and education.
The interests of the Colombians of tomorrow, such as the protection of natural resources and the environment.
The purposes of internationalization of the economy established in Law 812 of 2003-National Development Plan, cited above.
The various regional and local interests and concerns.
The need to have a productive apparatus capable of competing in a globalized world, taking into account the threats and sectoral opportunities of the various branches of production and economic activities.
The protection of consumers and users of goods and services. It is up to the Congress of the Republic, in exercise of its constitutional power to approve or impose the international treaties, to evaluate and determine whether the CAN-Mercosur agreement that is being submitted to its consideration today effectively responds in its This is a global approach to Colombia's national interest, taking into account both the political and cultural aspirations of Latin American integration, as well as the commercial realities derived from the productive structures of both groups of countries.
2. Mercosur offers Colombia a potential market of 216 million inhabitants, with a gross domestic product of around 569 billion dollars, which allows it to demand for its products. The total amount of $74,000 million has been imported in the near $100 billion, and exports close to $100 billion over the last few years.
Brazil is the most representative country of the Bloc (more than 75% of the total sub-regional GDP and about 70% of the total trade), it has a GDP per capita of US$ 2,760, which implies an important consumption capacity, if one takes into account that the Colombia's GDP per capita is US$ 1,822.(4)
subhead] However, Mercosur has not been an important destination for Colombian exports. In part because there are structural restrictions on Colombia's exportable supply and because it has mainly targeted the markets of the United States and the Andean Community. Another element that hinders the growth of trade is the high cost of transportation between the cities of Colombia and the cities of Mercosur. But also because the trade agreements we have historically had with these countries have been temporary, which has inhibited the development of trade flows. The stability that a program of liberation grants as the content in this Agreement will have a positive impact on exports and investment both domestic and foreign with effects on production and employment.
Obtaining stable and timely preferential access to the fourth market of the continent generates suitable conditions for encouraging investment processes with export guidance, which in addition with preferential access to other markets important strategy for the country, will allow in the medium term, the expanded use of larger economies of scale.
This follows from a study conducted by the International Economics Center of the Argentine Foreign Ministry,(5) in which it can be appreciated that in a scenario without tariffs production The Andean countries have the potential to penetrate the Mercosur market.
The study indicates, taking as a reference point the period 1998-2002, that the Andean countries ' offer could displace Argentine sales in the market of Brazil for US$ 750 million and sales of Brazil in the market of Argentina for US$ 1,400 millions.
According to the same study, among the products with "strong" capacity to penetrate the Brazilian market are plastics, pharmaceutical products, synthetic filaments, and rubber and their manufactures. Andean products that could also displace Argentine sales in the Brazilian market, but with a lower capacity include dairy products, skins and hides, diverse products of the chemical industry, organic chemicals and filaments synthetic and artificial. The Andean products with "strong" capacity to displace Brazil in the market of Argentina are vehicles and parts, machines and apparatus, textile articles and garments, paper and cardboard. Iron and steel foundry appear with less capacity.
A study carried out by Fedesarrollo(6) shows that among the productive sectors that present relevant indicators of penetration for Colombian exports in Mercosur are the chain textiles, clothing, leather products, beverages and tobacco, paper products and publications, as well as sectors based on natural resources such as forestry, wood products, vegetables and fruits. At the sector level, Colombia has unexploited competitive advantages. As shown in Annex 1, the potential of the country in the enlarged market of Mercosur reaches more than 75% of the products currently exported and about 30% of the imports from the Regional Block (which is equivalent to double the average exports from Colombia to the world).
In summary and according to the results of the studies mentioned and with the evaluations made by the Colombian private sector during the negotiations, an agreement with Mercosur creates for Colombia export opportunities in sectors The country's important economy and allows the country to import capital goods and raw materials and inputs at lower costs, generating increases in the competitiveness of the national productive apparatus.
On the other hand, the agreement does not leave the sensitive sectors unprotected. Indeed, the essentially competitive character of the economies of the Mercosur countries vis-à-vis the Colombian economy, in a wide range of sectors, both agricultural and industrial, together with the very superior size of these economies, made it necessary to Colombia will propose a negotiation with a protectionist approach, which is duly reflected in the final result.
Regarding the projected behavior of Colombia's imports from Mercosur, the Fedesarrollo study shows that the largest increases could be made in the following sectors: sugar, vehicles, and auto parts, milk, and derivatives, and rice. These products, with the exception of sugar, which is kept "encapsulated"(7), have been placed in the slowest relief basket (15 years) and in the case of products included in the Andean System of Franjas Price, the relief was only agreed upon the fixed component of the stabilization mechanism.
3. The Can-Mercosur Treaty
With this Agreement a Free Trade Zone is being formed through a Trade Liberation Program, which applies to products originating in and coming from the territories of the Signatory Parties (Colombia, Ecuador, Venezuela, CAN and Argentina, Brazil, Paraguay and Uruguay for Mercosur). This Program consists of progressive and automatic reliefs applicable to the duties in force for the importation of third countries into each Signatory Party.(8) The Agreement provides for the promoting the exchange of commercial information between the parties, stimulating reciprocal investment, improving the conditions for the transport of goods and persons, promoting initiatives and cooperation mechanisms to develop, expand and modernise the infrastructure in a variety of areas, supporting and facilitating initiatives joint research on science and technology as well as joint research projects.
The Agreement regulates trade in industrial and agricultural goods, and as such includes tariff relief programs and related issues such as: rules of origin, technical, sanitary and phytosanitary standards, safeguards and a the mechanism for the settlement of binding disputes since the entry into force of the Agreement. The substantial elements of these topics are set out in Annex 2.
The treaty respects the "asymmetry" provided for in ALADI(9), which is developed in the text of the agreement and becomes effective within the agreed deadlines. In fact, according to the criteria defined by the government, after consultation with the private sector and the Joint Committee on Foreign Trade(10), the bulk of Colombian production will be cut off in 12 years and a few highly sensitive products will remain in the 15-year basket. For their part, raw materials, inputs and capital goods not produced will be located in the immediate or six-year basket.
In the agricultural sector, the agreement responds adequately to the essentially competitive nature of Mercosur's economies against Colombia. According to assessments made by the Colombian private sector during the negotiations, our productive apparatus is not capable of competing in the short term with the Mercosur countries in a wide range of sectors, and this disparity is particularly pronounced in agricultural matters. This led to a fundamentally defensive negotiation on agricultural matters.
This is reflected in the maintenance of instruments such as the following. For the products included in the Price Stabilization Mechanism, the tariff relief offered by Colombia is 15 years and will apply only on the part of the tariff entered in Annex 1 of the Agreement, which allows for the and the permanence of that Mechanism. The wheat and barley strips for which the preferences will be granted on the whole of the applied tariff were excluded from this treatment.
Additional to the aforementioned protection, it was achieved that Brazil and Argentina by Mercosur will accept the existence of an agricultural safeguard, which can be applied in an agile and efficient manner before
unforeseen behaviour in terms of both prices and volume for those products in the agricultural sector most sensitive to the temporary distortions of these two variables in sub-regional trade.
Finally, it is important to highlight the role played by the Colombian private sector in the development and closure of this negotiation. Thanks to the spaces of interaction between government and private sector created in the framework of the negotiations of the CAN and the FTAA, the different associations and production associations worked in total coordination with the negotiating team.
The representatives of the various sectors of agricultural and industrial production in the country actively participated in the definition of the positions that were taken to the table, even accompanying the team to the negotiations.
4. Conclusions
In conclusion, the CAN-Mercosur Agreement, which is being submitted to the Congress today, meets the following purposes:
represents a fundamental step in the consolidation of the process of economic integration of the Latin American countries initiated in 1960, through the expansion of their markets and the expansion of their reciprocal trade.
Closes the free trade agreement subscription cycle with South American nations.
Generates a political incentive to advance the process of trade integration with Central America and the Caribbean, with whom Colombia has lower-level trade agreements.
Responds to the constitutional mandate to "promote the integration of the Latin American community."
Complies with the mandate established in Law 812 of 2003-National Development Plan, to advance a " negotiation for the formation of a free trade zone between the Andean Community and the countries of the Common to the South (Mercosur), or a negotiation with some countries of these two blocs where there is consensus. "
represents an opportunity to explore and expand Colombian trade, as national production will have preferential access to one of the continent's largest markets.
Maintains and deepens the current historical heritage of trade flows.
It is a mechanism to increase the competitiveness of the national productive apparatus, by facilitating the production of inputs, raw materials and cheaper capital goods, allowing the reduction of production costs.
Guarantees sufficient conditions of asymmetry in tariff relief against the largest economies in the region, Argentina and Brazil, which are Colombia's competitors in the production of goods.
Allows the Colombian productive apparatus to gradually make the necessary changes in its productive structure to meet the challenges of the negotiation processes to come.
This new Agreement, in conjunction with the previous agreements of Colombia in the framework of the CAN (with Bolivia, Ecuador, Peru, Venezuela), Mexico and Chile, enhance the geographical location of the country as an attraction center for investment, which will see in Colombia a productive and export platform to the main markets of the continent.
The negotiation with Mercosur is part of the country's internationalization strategy. Within a few months the negotiations with the United States will surely have been concluded, with Colombia also having preferential and permanent tariff access to that market. In addition, we will continue with technical and diplomatic efforts to ensure that the European Union, Central America, Canada, and some Asian countries are included in the set of countries that Colombians have preferential access to.
In this context, the National Government through the Minister of Foreign Affairs and the Minister of Commerce, Industry and Tourism, requests the honorable Congress of the Republic, to approve the Economic Complementation Agreement signed between the governments of the Republic
Argentina, 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, Member Countries of the Andean Community "and the" First Additional Protocol-Regime for Settlement of Controversies, signed in Montevideo, Uruguay, at the eighteen (18) days of October of two thousand four (2004), instruments that constitute the starting point for the consolidation of the South American Community of Nations.
Of the honorable congressmen, Carolina Barco Isakson,
Minister of Foreign Affairs;
Jorge Humberto Botero,
Minister of Commerce, Industry and Tourism.
REPUBLIC OF THE REPUBLIC
GENERAL SECRETARY
(Art. 139 and ss. Law 5th of 1992)
On the 4th of April 2005, the Law Project 243, with each and every constitutional and legal requirement, was established in this office by the Min. Rel. Ext. and Min. Com. Exterior.
The Secretary General,
Emilio Otero Dajud.
ANNEXES TO THE EXPLANATORY STATEMENT
Annex I. Economic Background
ANNEX II. Description of the agreement of partial scope of economic complementation between Colombia, Ecuador and Venezuela and the States Parties of Mercosur.
ANNEX III. Exportable offer and conditions of access of Colombian goods to Mercosur.
ANNEX I Economic Background
1. Colombia's Trade Relations with Mercosur
El Comercio] The bloc of Mercosur countries participates with about 6 percent of Colombia's total trade with the Americas and 4 percent of the world's trade. However, the trade balance has traditionally been loss-making, which reached US$ 1.069 billion for the year 2004.
Historically Colombia has maintained a deficit in the trade balance with Mercosur. As of 2000, the deterioration of Colombia's trade balance against the bloc was growing, ranking at about US$ 1.069 million in 2004, for an increase of 18.4% over the previous year (US$1.020 million); the largest In recent years, due mainly to the sustained increase in imports since 2002 as a result of the increase in demand in Colombia(1), the recovery of the economy Argentina(2) and the devaluation of its currency (3).
In 2004, 70% of the trade imbalance corresponded to the deficit with Brazil (US$750 million). Argentina participated with 23% (US$246 million) and the remaining 7% corresponded to Uruguay and Paraguay.
exports to this trade bloc represent about 1.5 percent of the total exported by Colombia to the world and 2 percent of the total exported to the Americas. Colombia's exports to Mercosur are concentrated in Brazil, whose participation is 76 percent, followed by Argentina with 20 percent. Brazilian participation has been increasing since between 1992 and 1995 it was close to 48% similar to the percentage of Argentina.
During the 1990s, Colombian exports to Mercosur were growing steadily, from US$ 125 million in 1993, to about US$ 351 million in 2000. Subsequently, during the following three years and in 2003, Colombian exports to Mercosur were valued at US$ 117.5 million, equivalent to a decrease of 10.4% compared to 2002. For 2004, a sales rebound was presented to the southern bloc, reaching US$ 181.5 million, 55% higher than in the previous year.
The increase in exports from the sector of basic chemistry, oil and coal, mainly, was highlighted. 1.2 Imports from Colombia from Mercosur
On the other hand, imports (CIF), which in the 1990s had not increased significantly, were boosted during 2000 and 2001, with growth of 21% and 27% respectively. In 2003, they increased by 18% to the US$ 1.114 million purchased, again rebounding in 2004 to about US$ 1.25 billion, 24% higher than in 2003.
The increase in imports of metalworking, agro-industry and basic chemistry products is highlighted.
On average, Colombian purchases from this sub-regional bloc account for 7% of total Colombian purchases in the world and 11% of total purchases in the Americas. For its part, 71% of Colombia's purchases from Mercosur come from Brazil, 22% from Argentina and 6% from Uruguay and Paraguay.
2. Trade with Brazil
2.1 Trade Balance Colombia-Brazil With Brazil the trade balance has been deficit. However, since 1997 the deficit was steadily decreasing, and in 2000 it was US$ 190.4 million, that is to say that there was a decrease of about 80% compared to the deficit of the year 1997 (US$ 345.2).
However, in the last three years, Colombia's trade deficit with Brazil again widened, ranking at approximately US$ 750 million in 2004, up 20.2% from the year immediately preceding (US$624 million).
2.2 Exports from Colombia to Brazil
About 50% of Colombia's sales to Brazil corresponded to the basic industry, especially chemistry, with a share of 49% of the total exported. Primary products with a 24% share, mainly oil and its derivatives, and coal, remain in importance.
At the beginning of the 1990s, Colombia's sales to Brazil did not exceed US$ 60 million per year. They were subsequently increased to record the largest exports in the decade for US$ 283.6 million during 2000. In 2002 and 2003, exports fell by 34% and 17%, respectively, in the latter year by US$ 91.4 million.
However, in 2004, there was an important recovery in sales to Brazil, growing close to 50% compared to 2003, ranking in the $138.7 million exported. The main contribution to the positive variation was given by the increase in sales in the sector of basic chemistry, oil and coal.
2.3 Imports from Colombia from Brazil
In 2004, Colombian imports of Brazilian products were US$ 970 million, for growth of 26.2% over the previous year (US$769 million).
The main variation was mainly due to purchases of inputs and raw materials from the metalworking and basic chemistry sector.
On average, 25% of Colombia's purchases made in Brazil correspond to machinery and equipment, 17% to basic chemistry, 16.1% to light industry, especially chemistry and garments; 11% are imports from the industry. automotive and 12% of metallurgy.
3. Bilateral trade with Argentina
3.1 Balance Trading
The trade imbalance with Argentina reached its lowest level in 1999 when a deficit of US$ 62.2 million was recorded. However, since that year it was steadily increasing and amounted to US$ 174.9 million in 2002 and US$ 207.1 million in 2003, resulting from the substantial fall in Colombian exports due to the recession and currency problems. Argentina, in particular in 2002, when Argentina's GDP decreased by about 11%.
For 2004, the deficit with the southern country increased by 18.8%, reaching US$ 246.1 million, due especially to the increase in imports.
Colombian sales to Argentina have decreased considerably in recent years. Considering that in 2002 it added US$ 13.2 million compared to the $37 million exported in 2001, it is undoubted that the currency disorders that affected Argentina had a great influence on this behavior.
When the index of the Real Bilateral Exchange Rate is observed, there is a strong decrease in the competitiveness of Colombian products compared to Argentines from the year 2002.
For the year 2004, there was a rebound in sales to Argentina, adding nearly $35.6 million, for growth over the previous year of 88%. The main contribution to the positive variation was due to increases in sales of basic chemistry and coal.
On average about one-third of exports are products of basic chemistry (38% of total). The light industry participates with 33%, whose main sales are publishers and plastic products; 9.6% of exports to Argentina correspond to primary products, especially coffee, coal and flowers.
Among the main products exported in 2003 are caprolactam, polyvinyl chloride, tires, coffee, books, gum and plastics, among others.
Colombia, on average, buys from Argentina mainly basic industrial goods (24%), especially basic chemistry, followed by agricultural products (22%), mainly yellow corn and (18%) of agricultural products, in particular, crude oil.
Imports (CIF), in recent years have remained at levels close to US$ 200 million. However, for the year 2004, purchases from Argentina amounted to US$ 321.9 million for a growth of 25.1% over the previous year (US$257.1 million).
The main products imported by Colombia originating in Argentina are yellow hard corn, crude oil oils, raw aluminum, soy oil, sunflower oil, frozen fish and ethylene copolymers. other.
3. Colombia trade with Uruguay and Paraguay
Exports to Uruguay in 2004 were US$ 5.6 million, while imports (FOB) from that country were US$ 23.1 million, resulting in a trade deficit of more than US$ 17 million. This same proportion has been maintained in recent years.
Uruguay is bought basically wool, followed by chemicals, soy, odoriferous mixtures, denim, silk fabrics, wool and leather fabrics, among others; and we sell you anti-aftosas vaccines, editorials and chemicals.
Exports to Paraguay in 2004 were US$ 1.7 million, while imports (FOB) from this country amounted to US$ 57.2 million. For Paraguay, insecticides, bottles and printed products are sold, and are bought almost exclusively soy and soy and cotton cakes.
ANNEX II
Description of the agreement of partial scope of economic complementation between Colombia, Ecuador and Venezuela and the States Parties of Mercosur
The CAN-Mercosur Agreement focuses on the release of trade flows of goods, both agricultural and industrial, and on the establishment of disciplines such as safeguards, the regulation of non-tariff barriers, the mechanism of dispute settlement and the creation of the institutions responsible for administering the agreement.
This is not an agreement of the so-called state of the art, where disciplines are also negotiated for services, investments, intellectual property, and public purchases, among others, which are included in other treaties. signed by Colombia, as is the case with the Andean Community and the G-3.
1. Nature of the Agreement
In accordance with the general aspects of the Montevideo Treaty, previously reviewed, the Agreement on the Partial Reach of Economic Complementation between the CAN and the Mercosur [Common Market of the South], which is submitted to the approval of the Colombian legislator, is no more than the implementation and development of one of the integration mechanisms provided for under that Treaty.
This Agreement responds to the need to expand the links of integration in economic and trade matters between the South American nations that have signed it and constitutes one more link in the search for the strengthening of the ties of friendship and solidarity among the participants.
2. Incorporation of the agreement into Colombian law Based on the provisions of article 224 of the Political Constitution, which authorizes the provisional application of treaties of an economic nature The Agreement on the Partial Scope of Economic Complementation No. 59 between the Andean Community and Mercosur, the subject of the present explanatory statement, has been put into provisional application as of 1 February 2005, in respect of the countries of Central and Eastern Europe. which shall apply it on the same date, in accordance with Article 46 of the Treaty, which was implemented through Decree 141 of January 26, 2005.
3. Content of the Agreement
3.1 General aspects
The Agreement aims to establish a Free Trade Area of goods and is a very important step for strengthening the unity of South America and for the ALADI member states who will be able to adhere to the agreement. Subsequent time if they so wish, subject to the relevant negotiations. The Free Trade Zone established through a Trade Liberation Program applies to products originating in and coming from the territories of the Signatory Parties. This programme consists of progressive and automatic reliefs applicable to the tariffs in force for the import of third countries into each Signatory Party.
The Agreement provides for a taxatively stated aim of promoting the exchange of commercial information between the parties, stimulating reciprocal investments, improving the conditions of transport of goods and persons, promoting initiatives and mechanisms cooperation to develop, expand and modernise infrastructure in various fields, and to support and facilitate joint initiatives in science and technology, as well as joint research projects. With regard to the National Treatment, Article 13 of the Agreement provides for the guarantee of that principle in the terms of Article 46 of the Treaty of Montevideo 1980 and Article III of the GATT 1994. In addition, Article 2 of the Treaty provides that the rules contained in the general text, as well as in its annexes and additional or amending protocols, apply in the territory of the signatory parties.
On subsidies for industrial products, the text sets out the commitment for the parties not to apply for their reciprocal trade those that are contrary to what is established in the World Trade Organization. In agriculture, the commitment is not to apply to reciprocal trade subsidies for export and to guide domestic aid within the criterion of no or minimum distortion of trade.
With regard to the application of the most favored Nation criterion, the agreed text provides that the Party that concludes an agreement with a country that is not a member of the Latin American Integration Association, ALADI, must inform the other Parties. Signatarias and announce the willingness to negotiate concessions equivalent to those granted and received in a comprehensive manner.
For the signatory countries, Article 43 of ACE-59 replaces Article 44 of the Treaty of Montevideo 1980 and its amending and regulatory provisions, including resolutions 43 and 44 of ALADI. In fact, the countries subscribing to the CAN-Mercosur treaty are also ALADI subscribers and instead of keeping silent in the face of an issue already regulated in ALADI, they decided to regulate among them differently the extent of benefits such as the conclusion of agreements with third countries by one of the members. The countries subscribing to the ACE-59 considered that the new equilibrium reached between the parties as a result of the subscription of the same, generated conditions different from those derived from the 1980 Treaty of Montevideo, which required rules different in the field of MFN between them.
ACE-59 regulates in a comprehensive way the case that a member country decides to negotiate trade preferences with third countries after the agreement is signed. The only obligation of the parties in such a scenario is to announce within 90 days the willingness to negotiate concessions equivalent to those granted and received in a comprehensive manner, an obligation that must be fulfilled "in good faith".
There is no obligation to extend concessions on specific products. There is also no obligation to extend concessions unilaterally; any extension of additional concessions by Colombia in favour of Mercosur, or vice versa, on the occasion of the conclusion of an agreement with third countries, is subject to the the willingness to make new negotiations aimed at obtaining new concessions from the Mercosur countries in favor of Colombia, or vice versa.
Because of this, this clause generates an efficient incentive to deepen trade relations with Mercosur as much as possible, but without compromising the overall strategy of internationalization of the economy.
El Tiempo] If in future Colombia considers it appropriate to further deepen its trade relations with Mercosur, the relevant negotiations should be dealt with in a comprehensive manner and guided by the levels of competitiveness and sensitivity of the devices. In the light of the magnitude and importance of the new trade opportunities that these countries are willing to make to Colombia in exchange for new concessions on our part. This applies even if the deepening of relations with Mercosur is due to the application of Article 43 of the ACE-59.
This new agreement, in conjunction with the previous agreements of Colombia within the framework of the Andean Community (with Bolivia, Ecuador, Peru, Venezuela), Mexico and Chile, and those obtained as a result of the negotiations underway or close to being initiated with the United, Europe, Canada and other nations, enhances the geographical location of the country as an attraction center for investment, which will see in Colombia a productive and export platform to the main markets of the continent.
The agreement regulates trade in industrial and agricultural goods, and as such includes tariff relief programs and related issues such as: rules of origin, technical, sanitary and phytosanitary standards, safeguards and a a binding dispute settlement mechanism since the entry into force of the agreement, the main elements of which are highlighted below:
3.2 Tariff Relief Program
In the release program, the principles of asymmetry that govern in the ALADI are considered, which, when taking into account the different levels of development of the countries, are translated both in differentiated periods of relief and in the initial preference.
In this way, the deadlines for the relief of Colombia and the Mercosur countries are as follows:
Colombia: Immediate, 6 (intermediate), 12 (general) and 15 years (sensitive).
Brazil: Immediate, 4 (intermediate), 8 (general) and 15 years (sensitive).
Argentina: Immediate, 5 (intermediate), 10 (general) and 15 years (sensitive).
Uruguay: Immediate, 6 (intermediate), 12 (general) and 15 years (sensitive).
Paraguay: Immediate, 6 (intermediate), 12 (general) and 15 years (sensitive) with 2 years of grace.
The previously negotiated preferences (historical heritage) that have regulated trade with these countries over the last few years are preserved and deepened in the agreement, so that this will be the starting point for the reliefs from the products benefiting from this treatment.
Additionally, the agreement preserves the tariff preferences and other conditions of access established in the Regional Agreements of the Regional Tariff Preference, PAR, and the Market Access Nomine, NAM. These agreements are also reflected in initial points of relief committed by the countries in the general timetable: while Argentina and Brazil give Colombia an initial preference of 30%, Colombia grants these two countries 15%; Uruguay and Colombia, because they are considered countries of similar level of development, start the program of liberation with a reciprocal preference of 25%; and Paraguay is awarded 35% and receives 15%.
According to the criteria defined by the government after consultation with the private sector and the Joint Committee on Foreign Trade, the bulk of Colombian production will be cut off in 12 years and some highly sensitive products such as Those covered by the Andean System of Prices, footwear, wooden furniture, home appliances and automotive goods will remain in the 15-year basket. For their part, raw materials, inputs and capital goods not produced will be located in the immediate or six-year basket.
The tariff reduction of Colombian production in the mentioned terms and conditions will allow a gradual rearrangement of the current production structure to the new conditions of competition, which is supported by the accelerated relief of raw materials and non-produced capital goods. In the meantime, export products will have preferential access in shorter terms to the most important markets of Mercosur, which will enable them to take advantage of the new opportunities offered by this trade agreement.
3.3 Safeguard Clauses and Special Measures
The text of safeguards provides for the possibility for the parties to take measures to control increases in imports of products from another Party that cause or threaten to cause damage to domestic production, throughout the period. release program (15 years) and 4 years. The dismantling of this mechanism will depend on the evaluation made by the Administrative Commission at the expiration of the deadline.
On the other hand, the possibility was incorporated into the articulated possibility that, in the event in which the Administrative Commission of the agreement determines the desirability of eliminating the general safeguard, it is previously substituted to its elimination by a measure special (currency safeguard) to correct imbalances arising from massive devaluations of the currency of one of the partners.
As for the agricultural sector, a safeguard mechanism for those products from the most sensitive agricultural sector was agreed in the agreement.
This measure is automatically applied by two factors: by volume when the growth of imports is more than 20%, and provided that the share of the exporting party is more than 20% of the total imports; and prices when the fall in import prices is greater than 15%, at the entry of the agreement and 20% after the fifth year.
The application of the safeguard will consist of the suspension of the increase of the margin of preference established in the agreement or the decrease or suspension of the margin of preference agreed. It will be automatically and provisionally applicable for ninety days, subject to threat checking or damage testing and charges will be returned if there is no check.
In the case of Colombia the measure covers 30 subheadings (citrus, coffee, cocoa, potato, corn flour, etc.) and can be activated by volume for 57 subheadings (chicken meat, dairy, rice, corn and oils, etc.) belonging to the SAFP.
3.4 Standards, technical regulations and conformity assessment
The purpose of this annex is to prevent the technical rules and regulations of the parties from becoming unnecessary technical barriers to reciprocal trade, in accordance with the provisions of the WTO and the ALADI. In addition, the parties agreed to conclude, as far as possible, agreements for recognition between their respective authorities in order to determine the equivalence of their rules and regulations.
3.5 Pharmaceuticals
A provision was introduced into the agreement whereby the parties are obliged to recognise the undertakings of their trading partners, conditions of access identical to those granted to their nationals in respect of the importation and marketing of pharmaceutical products. The foregoing in response to the existence of a law in force in Argentina under which the Colombian industry does not have the possibility to access the Argentine market for these products.
Additionally, and in order to guarantee the real, effective and reciprocal access to the market, the commitment of the Argentine Republic to carry out visits to the Colombian companies interested in (a) to verify compliance with the requirements of standards for the production and quality control of pharmaceutical products.
In case of default, Colombia will be able to apply to imports originating in Argentina, reciprocal conditions of access to which Argentina applies on Colombia's exports to that market.
3.6 Agriculture
For the products included in the Price Stabilization Mechanism, the tariff relief provided by Colombia is 15 years and will apply only on the part of the tariff entered in Annex 1 of the agreement. In this sense, Annex 1, column 3, is titled "Tariff Subject to the Liberation Program" and points to the part of the tariff subject to dismount, which allows the validity and permanence of the Price Stabilization Mechanism as established in the Andean legislation in force and its subsequent amendments or substitutions in accordance with the Andean tariff policy, without exceeding the consolidated tariff levels of the WTO. The wheat and barley strips for which the preferences will be granted on the whole of the applied tariff were excluded from this treatment.
In sugar, it was agreed to propose a commercial release program under the same criteria established for other products included in the Price Stabilization Mechanism, but this will start its application when the Parties so agree. agree.
3.7 Health and phytosanitary measures
Through this Annex, the Parties undertake to ensure that their sanitary and phytosanitary measures are only applied as soon as they are necessary to protect the health and life of humans and animals or to preserve plants based on scientific principles, in accordance with the provisions of the WTO. Mechanisms and procedures are also established with duly agreed deadlines, through which the parties will bring forward processes of harmonisation and equivalence of their respective measures as an instrument of trade facilitation.
3.8 Source Rules
The negotiation on rules of origin was developed under the inspiration of the ALADI regulations, maintaining the two general criteria of origin and strengthened the verification and control mechanisms of origin of the goods. In this way, the change of departure was achieved as the first criterion of origin qualification and has traditionally been used by the bulk of our exports to the countries of the ALADI and the Andean Community. As a second criterion of origin, a regional content was negotiated, starting at 50% and will be 55% after the eighth year of the agreement. During this period there is a commitment to analyse the possibility of reaching 60% of the regional content value.
The specific requirements of origin negotiated with each of the Mercosur countries are compatible with the Colombian production structure. In the case of agricultural products they shall be considered as originating if they are wholly obtained and the products of the agro-industry, if they are made from agricultural raw materials such as coffee, milk and sugar produced in Colombia. thus stimulating their demand. In industry, the requirements of origin allow the incorporation of raw materials that are currently imported from third countries.
The negotiation of specific requirements of origin was given on a bilateral basis for most of the productive sectors. However, for the automotive sector a plurilateral origin regime was negotiated, characterized by incorporating the Andean regulations for the classification of origin of the sector. This regime sets increasing levels of integration of parts and parts of the sub-region until 2011, from this year the continuity of the commercial release program is conditional on the Parties defining the origin requirement that will govern for later years. However, from 2012 onwards, the levels of preference and the requirements of origin in force will be retained as of 31 December 2011.
The automotive sector will benefit as the industry will maintain the supply conditions for both regional and third-country raw materials.
3.8.1 Specific Requirements of Origin Colombia-Argentina
Colombia and Argentina agreed that for some agricultural products, organic and inorganic chemistry, pesticides, plastic manufacturing, textiles and clothing, bicycles, motorcycles, and some capital goods will apply specific sources of origin rather than the general criteria of qualification of origin of the agreement.
The specific rules in the agricultural sector were negotiated in order to ensure that agro-industrial products are manufactured from agricultural raw materials produced in Colombia, as in the case of coffee, palm, sugar, milk and meat. of bovine animals, or in their absence of originating inputs. In this sector, there are requirements for final goods such as milk and its derivatives; soya, palm and coconut oils; sausages; lactose and lactose syrup; cocoa preparations; fruit and vegetable preparations; coffee preparations and essences; certain food preparations such as yeasts, wild cards, flanks and gelatins; and ethyl alcohol.
For capital goods such as machinery and electrical appliances, the requirement provides for a 50% value test of regional content. The purpose of the requirement is that all machinery benefiting from preferential treatment shall incorporate at most 50% of non-originating materials in the total value of the goods. In motorcycles and bicycles the value of regional content is 55%, however, for motorcycles an annual quota awarded by Argentina of 2000 units was negotiated between 50 cc and 125 cc that will meet a regional content value of 40%.
The existing inequalities in the productive structures of the two countries led to the establishment of the general rule as specific requirements of origin for a fixed period of 3 years for plastic articles and 2 years for pesticides. These requirements allow production from active ingredients and non-originating polypropylene to confer origin. In turn, it was agreed that during the period of validity of the requirements the Administrative Commission of the agreement will define the criterion of origin that will be applied once that period ends. If no agreement is reached, the release program will be suspended and returned to its initial level.
The length of the requirement will facilitate the creation of commercial ties between the producers of both countries because access is obtained with preferential treatment since the beginning of the agreement for final goods and raw materials. In addition to this relationship, elements will emerge to evaluate Mercosur countries as suppliers of raw materials in terms of prices, volumes, quality and opportunity.
This is a key element in identifying opportunities to provide inputs, and therefore, in the definition of the specific requirements of origin that will regulate this trade agreement once the period of validity of the products is met. requirements.
In textiles and clothing the requirement makes it possible to incorporate naylon and elastomers from third countries, in addition there is a "de minimis" clause through which up to 7% by weight of non-originating fibres or yarns may be incorporated into textiles and for some garments made of synthetic or artificial fibres such as sweaters and socks. In this sector they "encapsulated"(4) some products of confections such as combinations and inwaters, panties, T-shirts, wool or cotton sweaters, complementary garments for babies, wool or cotton socks, gloves, handkerchiefs, shawls, bed linen, toilet or kitchen, curtains and quilts.
In addition to the confections, the articles of steel and iron were "encapsulated" due to the impossibility of reaching a requirement of origin according to the Colombian production structure, and that it did not restrict the export offer to that market. It was therefore agreed that the Administrative Commission should define the origin requirement for the steel industry and the confections, and thus be able to implement the trade release program of the agreement.
3.8.2 Specific requirements of origin Colombia-Brazil
Colombia and Brazil negotiated specific origin requirements for some agricultural products, organic and inorganic chemicals, plastic manufacturing, textiles and clothing, iron, steel and their manufacturing, bicycles, motorcycles, some capital goods and IT assets, and telecommunications.
In the agricultural sector, requirements for milk and its derivatives were agreed; soybean, palm and coconut oils; sausages; lactose and lactose syrup;
cocoa preparations; preparations of fruit and vegetables; preparations and essences of coffee; certain food preparations such as yeasts, wild cards, flanks and gelatine; and ethyl alcohol. The specific rules were negotiated under the philosophy of obtaining agro-industrial products from agricultural raw materials produced in Colombia, as in the case of coffee, palm, sugar, milk and beef, or in their Sub-regional inputs defect.
For organic and inorganic chemicals, the general rule of the agreement was agreed. However, the Administrative Commission must define the concept of molecular transformation before 2006, in order to be used as an alternative qualification criterion from the following year. Molecular transformation will make it easier for the products in this sector to comply with origin, because there are cases where the raw materials and the final products are classified by the same tariff heading, preventing the good from being It is considered as originating from the criterion of change of departure even when processes were carried out which imply that the final good has a new molecular identity to that of the raw materials used.
For capital goods, the requirement requires the fulfilment of a value test in such a way that the FOB value of non-originating materials does not exceed 50% of the CIF value of the final good. For IT and telecommunications goods and bicycles the percentage is 55%.
In the case of motorcycles it was agreed to meet the regional content value of the agreement. However, Brazil granted Colombia a quota of 7500 motorcycles between 50cc and 125cc complying with a regional content of 40%.
Due to differences in the production structures of the two countries, they were agreed in textiles, garments, plastic manufacturing, steel and metalworking, temporary origin requirements that allow the importation of some of the third countries to be incorporated in the production of these goods and to qualify as originating. During the period of validity of the requirements, the Administrative Commission must define the criterion of origin to be applied after the end of the period and, if no agreement is reached, the release program will be frozen at the level reached at that time. year.
The time of the requirement will allow commercial ties to be generated between the producers of both countries that will allow elements to evaluate the Mercosur countries as suppliers of raw materials in terms of prices, volumes, quality and opportunity. This is a key element in the identification of opportunities to provide inputs and, therefore, in the definition of the specific requirements of origin that will regulate this trade agreement once the period of validity of the requirements.
In textiles and clothing the requirement allows to incorporate naylon and elastomers from third countries, in addition there is a clause through which it can be incorporated up to 7% by weight of fibers or non-originating yarn in tissues, and for some Garments such as bras, panties, sweaters, T-shirts, baby garments and socks, the "de minimis" is 10% by weight. These requirements will be in place until December 2006.
The requirement agreed in plastic articles allows to consider as originating the ones made from polypropylene from outside the sub-region. The requirement expires in December 2005.
In steel and iron manufacturing, Brazil gave Colombia a total of 491,000 tonnes a year through 2007. The quotas were distributed in 6 groups of products according to the Colombian export offer, giving the plans, laminates and profiles greater. Out of the quota is required to consider a originating product to be manufactured with cast iron, cast iron or cast iron in the region.
3.8.3 Specific Requirements for Origin with Paraguay
With Paraguay and Uruguay, countries with a degree of industrial development lower than in Colombia, requirements have been agreed that will allow to incorporate raw materials that have traditionally been imported from countries other than the Andean Community and the Mercosur. Specific requirements for certain products of oilseeds, lactose and lactose syrup were agreed between Colombia and Paraguay.
preparations and essence of coffee and other food preparations. These requirements seek to benefit from tariff preferences for products that use as raw materials coffee, sugar, and Colombian palm oil as well as Paraguayan soy.
3.8.4 Specific Requirements for Origin with Uruguay
Colombia and Uruguay agreed on specific origin requirements for dairy products and their derivatives, vegetables, strawberries, blackberries, blackberries, cherries, wheat flour, lactose and lactose syrup, cereal-based preparations, preparations and substance coffee, preparations for soups and potages, ice-cream, and other food preparations, petroleum oils and gases, sublimated sulphur and shoes.
The agreed requirements are intended to ensure that the preferential access of agricultural products is wholly obtained or produced from sub-regional inputs such as milk, sugar and coffee. Similarly, in order for certain industrial goods to be originating, oil, polains and higher parts of footwear produced in the territory of one or more of the Parties must be used.
3.9 Dispute resolution
The agreement provides for a transitional dispute settlement mechanism applicable from its entry into force and an Additional Protocol that will enter into force once the parties comply with their respective requirements to incorporate them into law. their national legislation.
The transition involves three stages in its procedure, the last of which is before a Group of Experts whose decisions are binding in international law unless the Administrative Commission of the agreement decides by consensus. abide by them. The definitive mechanism is much more complete and detailed and also consists of three stages. Its difference with the proposal lies in two fundamental aspects:
1. The intervention stage of the Administrative Commission is optional, that is, that the party that requested the initiation of the procedure can skip this stage and move directly to the constitution of the Court of Arbitration.
2. The Court award is binding in international law for the parties and does not require approval by the Administrative Commission.
If the decision of that Arbitration Group is not met by the country in violation, within the time limit set for the effect, a procedure will be brought forward to the establishment of the measures that the affected Party may apply, in accordance with the provisions of Article 31 of the First Additional Protocol. Those measures consist of the temporary suspension of concessions or other equivalent obligations. The definitive mechanism will enter into force once the Congresses of the countries are approved, in accordance with national legislation.
3.10 Agreement Administration
Within the Provisions for the Administration of the Agreement, a Administrative Commission is established, its functions are set and it is arranged that it will adopt its own rules of procedure.
3.11 Other Provisions
Finally, the agreement also provides for provisions of a traditional nature in these types of international instruments, such as rules on adherence, validity, denunciation and final provisions.
ANNEX III
Exportable offer and conditions of access of Colombian goods to Mercosur
El Tiempo] Once the conditions of the trade balance and the sector structure of the Colombian market in relation to Mercosur are described in general terms, it is important to highlight the asymmetry conditions present in the access of Colombian goods to the Mercosur [Common Market of the South]. market.
As noted in the general statistics of trade, a situation of trade deficit of Colombia persists against the Mercosur countries that for the year 2003 exceeded US$ 715 million as a whole, with the exception of the trade surplus The deficit in 2003 was more than US$ 98 million; compared with Brazil, it was close to $500 million, and with Uruguay, it was more than $100 million.
However, this persistent deficit situation in our country's trade balance against Mercosur could be reduced and even eliminated thanks to the conditions of access to markets that will be presented with the approval of the Economic Complementation.
1. Colombia-Argentina Goods Access(5)/In the negotiations conducted between Colombia and Argentina, 5 categories of relief were established for the entire tariff universe, which set deadlines for immediate liberalization, 10, 12 and 15 years, in addition to maintaining the preferences granted under the Economic Complementation Agreement number 48 by Argentina for Colombia, within a maximum period of 8 years. In all cases these categories provide for linear and automatic release programs.
In the same way, Colombia establishes 5 categories of relief that set deadlines for immediate liberalization, at 6, 12 and 15 years, and also maintains the preferences granted under the Economic Complementation Agreement No. 48 Colombia to Argentina, no more than 10 years.
Source: Ministry of Commerce, Industry and Tourism.
1.1 Immediate Relief Category
Argentina will grant immediate relief to 11.9% of the Colombian tariff universe, which represents 13.8% of the total value of the foreign purchases made by this country in 2003. It should be noted that Colombia exports mainly printed papers, vitamins, fixers, roses, and gum arabica to Argentina. There is then an unexplored export offer of more than $1.5 billion, within which the coal (US$1.3 billion exported to the world in 2003), electric energy (US$63 million), gold in the raw or powder (US$16 million), organic and inorganic chemicals, fertilizers, cosmetic preparations, plastics and articles thereof, leather, and paper products such as towels and sanitary tampons.
Since the entry into force of the agreement, these products may be exported to Argentina without the payment of tariffs, for the benefit of the country.
The immediate relief basket from Colombia to Argentina represents 10.3% of the tariff universe, mainly raw materials and inputs not produced locally as inorganic and organic chemicals, seeds and fruits. oilseeds, fruits and edible fruits, essential oils, photographic products, certain raw materials for the production of paper and graphic arts, precious stones and metals, raw materials for steel, metalworking and some capital goods. Placing these products in this category seeks to increase the total supply of these goods to cover production costs of the production apparatus and thus increase their competitive capacity.
At the request of representatives of the productive sector, some final products were also placed in this category, such as pharmaceutical products and sanitary towels, in which the relief is reciprocal and is intended to Colombian companies can increase their participation in the Argentine market.
1.2 Deepening of Existing Preferences-ACE number 48
13.8% of the tariff universe corresponds to products included in the ACE number 48, which represent 26.8% of the total value of exports to Argentina(6), and will be allowed maximum relief in 8 years, with more accelerated relief periods to the extent that existing preferences are greater.
The import of these goods by Colombia from Argentina represents 35.7% of the total value of the imports from Argentina. These products will be deducted maximum in 10 years.
Within the mentioned products that are beneficiaries of tariff preferences of about 50% by Argentina to Colombia, they stand out due to their important levels of trade, fuels, chemicals products organic, plastic, paper and products for graphic arts, textile fibres and articles of ferrous and non-ferrous metals, fans and some machinery.
In the same sectors mentioned, there are also preferences granted by Colombia to Argentina whose initial margins of preference are on average of about 30%, lower than those received, and thus imply a reduction in slower local versus the tariff access you get in that market.
1.3 6-Year Relief Category
It is important to mention that Colombia granted an intermediate category of 6-year relief for 225 subheadings (3.4% of the tariff universe) that represent an imported value from Argentina of around US$ 450,000, for the period January-August 2004, highlighting the import of natural juices and extracts, and wheat starch.
1.4 10-Year Relief Category
in addition, Colombia will grant Argentina a 12-year tariff reduction for 57.6 percent of the tariff universe. Therefore, favorable asymmetry conditions for Colombia, and deadlines for relief in line with the needs of the national productive sector.
It is worth emphasizing that the top 50 industrial products exported to Argentina and that they will enjoy 10-year tax relief, represent only 0.58% of their export potential, which suggests that the Argentine market represents a space for Colombia's exports, which has not yet been sufficiently exploited.
1.5 12-Year Relief Category
As mentioned above, Colombia will grant Argentina a 12-year allowance for 57.6% of the tariff universe, which represents an import value in the January-August 2004 period of US$ 22.9 million, 20.3% of the total value imported.
It is important to mention that in this period of relief, the majority of Colombian production was located, not only against Argentina but against the other Mercosur countries, guaranteeing a sufficient period of adjustment to develop activities leading to the strengthening of the national productive apparatus in the face of external competition.
Within this category of relief, due to their level of commercial exchange in recent years, exports from Colombia to Argentina of rubber articles with high relief in the form of taco, coffee, cocoa, butter, land, Fanned colours, and curved glass.
Argentina granted a 12-year tax break for 52 tariff subheadings in the chemical, plastic, metallurgical and metal-mechanical sectors, which require this deadline in order to make the necessary adjustment to the competition that may come from Colombia, or from another Andean country. However, the previous historical heritage is preserved, maintaining the preference of Colombia's exports to that market. Colombia placed these products in the same period of relief.
1.6 15-Year Relief Category
In 15-year tax relief, Colombia included a total of 459 subheadings that add up to an imported value in 2003 of US$ 13.8 million and for the January-August period of 2004 US$ 13.2 million, from Argentina. This category included national productions that have a high sensitivity to the Mercosur countries, such as meat and dairy products, fats and oils, paints and varnishes, bar soap, plastic articles, ceramic products, footwear, household appliances, wood or plastic furniture and automotive products, among others. Additionally, in this timeline Colombia included some resins, fibers, textiles and clothing, given that Argentina was unable to place them in a lower term of relief, arguing the high sensitivity of these lines of Production in the face of Colombia's competitive capacity, which is corroborated by comparing export figures for these products from the two countries to the world.
2. Colombia-Brazil goods access(7) /
In the negotiations conducted, Brazil established 5 categories of relief for the entire tariff universe, which set deadlines for immediate liberalization, 4, 8 and 15 years, in addition to maintaining the preferences granted under the Economic Complementation Agreement number 39 by Brazil to Colombia within a maximum period of 6 years. In all cases these baskets provide for linear and automatic release programs.
In the same way, Colombia establishes 5 categories of relief that set deadlines for immediate liberalization, at 6, 12 and 15 years, and maintains the preferences granted under the Economic Complementation Agreement No. 39 Colombia to Brazil within 10 years.
Colombia's exports of goods to Brazil are 5 times higher than the value exported to Argentina; this situation suggests a greater dynamism in trade with Brazil. However, Colombia's exports to this country did not represent, in 2003, even 1% of the total exported to the world; while the total value of Colombian imports 4.4% came from Brazil.
2.1 Immediate relief category
Brazil will grant immediate tax access to 1,234 subheadings of the tariff universe, which represent 23.1% of the total imported by Brazil, leaving Colombia with an exportable potential that exceeds $1.6 billion at the time of entry into validity of the agreement.
Colombia, for its part, will grant immediate relief for 1,599 subheadings of the tariff universe, mainly in fruits and edible fruits, oil seeds and fruits, gums and resins, and in goods not produced as heavy machinery, raw materials and inputs, and reciprocal relief in some pharmaceutical products.
As Brazil is one of the main producers in South America of capital goods, it is expected this way, to be able to consolidate permanent tariff reductions that contribute to the strengthening of the Colombian productive apparatus.
2.2 Deepening Existing Preferences-ACE number 39
It is of great importance to emphasize that while Colombia will be giving Brazil the relief of the products included in the ACE 39, a historical patrimony, in 10 years, Brazil will be reducing by 6, presenting a favorable asymmetry for our products and a opportunity to deepen and boost bilateral trade.
The products of the historical heritage that Brazil will give to Colombia, represent 63% of the value exported by our country to this
target, mainly plastics and their manufacturing, carbon, chemical industry, and textiles.
For its part, Colombia will give Brazil a tax relief for the assets that make up the historical patrimony and that represent 20.8% of the value of Brazil's exports to Colombia, within which products of the chemical industry are highlighted. petrochemicals (mainly gasoline), glass, and machinery.
2.3 4-Year Relief Category
Brazil will tax 442 subheadings of the tariff universe within 4 years. Colombia registered exports to this destination worth approximately US$ 600,000 in 2003, representing 0.7 of the total imported by Brazil, mainly waste from the food industry, fats, a variety of hides and skins from cattle called "Box Calf", grills and spectrometers among others; with a potential exportable potential of US$ 168 million.
2.4 6-Year Relief Category
In this category, Colombia included 904 subheadings of the tariff universe representing 3.3% of the total imported from Brazil in 2003, and 4.5% for the period January-August 2004, mainly fats and oils, salt, sulphur, land and stones, and those, metal ores, products of the chemical industry, and those raw materials that have a tariff on third countries of 5% among others.
2.5 8-Year Relief Category
Of the total of the tariff universe Brazil will be down 39% in 8 years, corresponding to 2,540 subheadings and that total more than US$ 6 million of the total value imported from Colombia, highlighting the Colombian sales of crude oils, some bakery and pastry products, jams, jellies, jams, chemicals, plastics and rubber products, among others.
2.6 12-Year Relief Category
Given the characteristics and structure of the Colombian production apparatus, it can be said that the majority of Colombian production (1,730 subheadings 27% of the tariff universe) have been located within a period of relief of 12 years, compared with a As Brazil, it is one of the most important elements of this negotiation, since it minimises the risk of abrupt increases in imports, it consolidates potential spaces of export growth for the goods of greater value aggregate, which will have the possibility to take advantage of economies of scale in a market extended within a maximum of 8 years for 99% of the tariff universe, and reinforces the country's conditions as a pole for attracting foreign investment.
In this category, Colombian exports of bamboo and other vegetable materials, jams, jellies, jams, yeasts, products of the chemical industry and oils, among others, are highlighted.
2.7 15-Year Relief Category
In the 15-year relief category, Colombia placed 240 subheadings, the production of which has a high sensitivity to the Mercosur countries, especially in the face of Brazil, such as meat and dairy products, milling products, fats and oils. cocoa, paints and varnishes, bar soap, plastic articles, ceramic products, footwear, household appliances, wood or plastic furniture, and automotive products, among others.
For its part, Brazil in this basket placed 56 subheadings, mainly cocoa and automotive goods.
3. Colombia-Paraguay goods access(8)/
Paraguay established 5 categories of relief for all industrial goods, which set deadlines for immediate liberalization, to 6, 12 and 15 years, in addition to maintaining the preferences granted under the scope of the agreement. Partial of Renegotiation number 18 by Paraguay to Colombia within a maximum period of 10 years.
In consideration of the smaller relative size of Paraguay and its situation in the Mediterranean country, the 12-year-old basket has two years of grace. The others are linear and automatic.
the same way, Colombia establishes 5 categories of relief that set deadlines for immediate liberalization, at 6, 10 and 15 years, and maintains the preferences granted by Colombia to Paraguay within a maximum period of 10 years. In all cases these baskets provide for linear and automatic release programs.
As mentioned above, Paraguay is the only country with which Colombia reached a surplus situation in 2003, but trade with this country remains extremely small: only 0.01% of our exports Paraguay, and industrial imports from this country were insignificant(9).
This reinforces the idea that the dynamism that trade between Colombia and Mercosur could achieve would grow if the potential of the agreement is exploited, although it must be borne in mind that Colombia's high sensitivity to the Paraguay's main export product (crude oil), generated a concentration of the program of liberation towards Colombia in the categories of relief in 12 and 15 years.
3.1 Immediate Relief Category
In this category, Colombia placed 1,363 subheadings, which represent an import value in Colombia around US$ 39,000 for 2003, 6.5% of the total imported from Paraguay, and US$ 21,594 for the January-August 2004 period.
The main products with exports to Paraguay are about US$ 38,755 for 2003, and US$ 62,712 for the January-August 2004 period, with crude oil, coal, electric power being highlighted. textiles, and products from the chemical industry.
3.2 6-Year Relief Category
Currently, Colombia does not export to Paraguay any of the products that this country will be reducing to 6 years, which implies an exportable potential of more than US$ 3 million a year, given that Colombia does export to the world by these codes. tariff. For its part, Colombia will be reducing 964 subheadings of the tariff universe in 6 years, accounting for 1.6% of total Colombian imports from Paraguay, with a value of close to US$ 10,000.
3.3 10-Year Relief Category
The goods from Paraguay that will be deducted in 10 years represent 55.1% of the tariff universe (3,592 subheadings), and 19.8% of the total value of the imports from this country in 2003, and 17.3% for the period January-August 2004, stressing, however, the little value (US$ 119,000) that they represent within the total imported by Colombia, mainly, cakes and other solid residues from the extraction of the oil from soy, footwear and fuels, among others.
3.4 12-Year Relief Category
Paraguay will be reducing 69% of the tariff universe (4,510 subheadings) in this category, which represent a value imported by this country of about US$ 700,000 for the year 2003. Included in this category were mainly goods such as meat, fish, fruits and vegetables, coffee, fats and oils, sugars, vegetables, products of the chemical and pharmaceutical industry, and plastic, among others.
3.5 15-Year Relief Category
In this category Colombia placed 307 subheadings representing 53% of the value imported by Colombia in 2003, and 73.2% for the January-August 2004 period, mainly meat and dairy, fats and oils, cocoa, footwear, appliances electrical and furniture, among others.
4. Access of goods Colombia-Uruguay(10)/
In the negotiations conducted with Paraguay, 5 categories of relief were established for the entire tariff universe, which set deadlines for immediate liberalization, at 6, 12 and 15 years, in addition to maintaining the preferences granted. under the Partial Scope Agreements numbers 23 and 25 within a maximum period of 10 years. As part of the ALADI framework for the same level of development, Colombia established the same 5 categories of relief.
As with Paraguay, the potential of trade between Colombia and Uruguay is important. This country bought only 0.04% of the value of its imports in 2003, worth US$ 4.2 million, while Uruguay exported US$ 122 million to Colombia in the same year. However, the fact that Colombia will have immediate relief for 12% of its products, which added a value exported in 2003 of about US$ 2 million, implies great opportunities for insertion and consolidation of our products. industry in Uruguay.
4.1 Immediate Relief Category
Products to be immediately deducted by Uruguay registered exports to this destination in 2003 for more than US$ 2 million, representing 47.8% of the total exported, highlighting the chemical and pharmaceutical industries.
The products with the greatest export potential to Uruguay that will have immediate relief are, among others, petroleum and petrochemical products, coal and pharmaceutical chemistry.
Colombia, for its part, will grant immediate relief to 1,546 products that represent a value of imports from Uruguay close to US$ 50 million in 2003, and US$ 36 million for the January-August 2004 period.
4.2 Deepening existing preferences-ACE numbers 23 and 25
With respect to the historical patrimony negotiated with Uruguay, the preferences were maintained, but in addition, in order to strengthen the trade relationship between Colombia and Uruguay, the reciprocal extension of the historical patrimony for goods was agreed. sensitive, which Colombia had awarded to Argentina or Brazil. Thus, the total historical heritage relief category represents 16% of the value exported from Colombia to Uruguay, mainly textiles and clothing, and pharmaceutical products; and 10% of the value of Uruguay's exports to Uruguay. Colombia, mainly of the metalworking and chemical industries.
4.3 6-Year Relief Category
In the 6-year relief category, Colombia placed 826 subheadings representing 0.2% of the total imports from Uruguay registered in 2003, and 12.7% of the tariff universe, mainly parts of machines and electrical appliances with their own function, hollow tubes and profiles and inorganic tanning products, inter alia.
For its part, Uruguay placed 620 subheadings in this category, which represent 9.5% of the tariff universe, registering as our main export product the sale of electric accumulators.
4.4 12-Year Relief Category
In this category Colombia placed 2,193 subheadings, 33.6% of the tariff universe, thus guaranteeing the time required for the national production apparatus to make the necessary adjustments and guarantee opportunities for insertion. effective.
This category mainly included products such as meat, fish, legumes, flours, fats and oils, cocoa, chemicals, paints, hides and textiles, among others.
For its part, Uruguay placed 3,527 subheadings in this category, 54.1% of the tariff universe, mainly fish, dairy, fruit and vegetables, fats and oils, chemicals, paints and varnishes, soaps and rubber, among others. other.
4.5 15-Year Relief Category
In this category, Colombia placed 362 subheadings, 5.5% of the tariff universe, accounting for 20.3% of the total imports from Uruguay in 2003, and 15.7% for the January-August 2004 period (around US$ 17). (million), mainly products such as meat and dairy products, fats and oils, rubber and footwear, among others.
For its part, Uruguay placed 282 subheadings in this category, 4.3% of the tariff universe, mainly meat, fats and oils, footwear and electrical appliances, among others.
In conclusion, and as the figures show, the CANMercosur Agreement represents an enormous opportunity to explore and expand Colombian trade. National production will have preferential access to one of the continent's largest markets, maintains the current historical heritage and will have the production of cheaper inputs, raw materials and capital goods.
On the other hand, it will have the sufficient conditions of asymmetry in tariff relief, mainly in the face of the largest economies in the region, Argentina and Brazil, which will allow the Colombian productive apparatus to carry out gradually the necessary changes in its productive structure to face the challenges of the processes of negotiation to come. This is of particular importance in the case of Mercosur, given the competing and non-complementary nature of the economies of both trade blocs, as we produce the same goods with similar labor prices.
TABLE 1
Colombia's offer to Mercosur
ARGENTINA
| Cronogram | Subheadings | Participation% | EXPO ARG | Participation% | IMPO ARG | Participation% |
| Immediate | 670 | 10.3 | 500.868 | 2.7 | 1.659.503 | 1.4 |
| 6 years | 225 | 3.4 | 0 | 0.0 | 77,015 | 0.1 |
| 12 years | 3,758 | 57.6 | 8.337,612 | 44.6 | 27.586.521 | 23.5 |
| 15 years | 459 | 7.0 | 405,746 | 2.2 | 13.815.910 | 11.8 |
| PH | 877 | 13.4 | 5.011.037 | 26.8 | 39.455.429 | 33.6 |
| PH sensitive | 28 | 0.4 | 0 | 0.0 | 2.462.723 | 2.1 |
| View Appendix 2.1 | 504 | 7.7 | 4.441.323 | 23.8 | 32.458.518 | 27.6 |
| Used assets | 3 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| GENERAL TOTAL | 6.524 | 100 | 18.696.586 | 100 | 117,515,619 | 100 |
Value of trade for 2003.
BRAZIL
| Cronogram | Subheadings | Participation% | EXPO BRA | Participation% | IMPO BRA | Participation% |
| Immediate | 1,599 | 24.5 | 13.397.237 | 14.9 | 143.921,049 | 24.4 |
| 6 years | 904 | 13.9 | 6.376,993 | 7.1 | 19.212.638 | 3.3 |
| 12 years | 1,730 | 26.5 | 6.964,803 | 7.8 | 65.798,887 | 11.2 |
| 15 years | 240 | 3.7 | 990.395 | 1.1 | 16,745,987 | 2.8 |
| PH | 802 | 12.3 | 49.275.001 | 54.9 | 120.337,864 | 20,4 |
| PH sensitive 54 | 0.8 | 6.524.051 | 7.3 | 2.083.226 | 0.4 | |
| View Appendix 3.2 | 1.192 | 18.3 | 6.159.110 | 6.9 | 220.947.431 | 37.5 |
| Used assets | 3 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| GENERAL TOTAL | 6.524 | 100 | 89.687.590 | 100 | 589.047.082 | 100 |
Value of trade for 2003.
PARAGUAY
| Cronogram | Subheadings | Participation | % EXPO PAR | Participation% | IMPO PAR | Participation% |
| Immediate | 1.363 | 20,9 | 38.755 | 2.8 | 39.462 | 6.5 |
| 6 years | 964 | 14,8 | 0 | 0.0 | 9,766 | 1.6 |
| 10 years | 3,592 | 55.1 | 1.172,570 | 85.8 | 119.360 | 19,8 |
| 15 years | 307 | 4.7 | 85.336 | 6.2 | 318.796 | 52.8 |
| PH | 11 | 0.2 | 0 | 0.0 | 108.336 | 17.9 |
| PH sensitive | 1 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| View Appendix 3.3 | 283 | 4.3 | 69,553 | 5.1 | 8,200 | 1.4 |
| View Explanatory Note %1 | 0.0 | 0 | 0.0 | 0 | 0.0 | |
| Used assets | 2 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| GENERAL TOTAL | 6.524 | 100 | 1.366.214 | 100 | 603,920 | 100 |
URUGUAY
| Cronogram | Subheadings | Participation% | EXPO URU | Participation% | IMPO URU | Participation% |
| Immediate | 1,546 | 23.7 | 1.715.245 | 40.2 | 49.378,948 | 40.5 |
| 6-years | 826 | 12.7 | 6,969 | 0.2 | 273,951 | 0.2 |
| 12-years | 2.193 | 33.6 | 301,455 | 7.1 | 17.497,979 | 14.3 |
| 15 -years | 362 | 5.5 | 245,592 | 5.8 | 24.773,991 | 20,3 |
| PH | 1.025 | 15.7 | 1.071.952 | 25,1 | 18.793.124 | 15.4 |
| PH sensitive | 27 | 0.4 | 16.294 | 0.4 | 208.534 | 0.2 |
| View appendice-3.4 | 530 | 8.1 | 866.446 | 20.3 | 10.981,440 | 9.0 |
| View Explanatory Note | 13 | 0.2 | 44.981 | 1.1 | 108,699 | 0.1 |
| Used assets | 2 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| GENERAL TOTAL | 6.524 | 100 | 4.268,934 | 100 | 122,016,665 | 100 |
Value of trade for 2003.
MERCOSUR OFFER TO COLOMBIA
ARGENTINA
| Cronogram | Subheadings | Participation% | EXPO ARG | Participation% | IMPO ARG | Participation% |
| Immediate | 775 | 11.9 | 315.026 | 3.965,715 | ||
| 10-years | 3,738 | 57.3 | 302.351 | 1.379,993 | ||
| 12-years | 52 | 0.8 | 9.041 | 23.809 | ||
| 15 -years | 209 | 3.2 | 117 | 1.899.104 | ||
| PH | 1.348 | 20,7 | 399.504 | 7.101.253 | ||
| View appendice-3.1 | 399 | 6.1 | 320.210 | 8.147,858 | ||
| Used assets | 3 | 0.0 | 0 | 0 | ||
| GENERAL TOTAL | 6.524 | 100 | 1.346.249 | 0 | 22.517.732 | 0 |
Value of trade for the January-August 2004 period.
BRAZIL
| Cronogram | Subheadings | Participation% | EXPO BRA | Participation% | IMPO BRA | Participation% |
| Immediate | 1.235 | 18.9 | 108.890.922 | 18.5 | 20,726.130 | 23.1 |
| 4-years | 442 | 6.8 | 11.787.283 | 2.0 | 609,576 | 0.7 |
| 8-years | 2,540 | 38.9 | 162.740,894 | 27.6 | 6.162.845 | 6.9 |
| 15 -years | 56 | 0.9 | 4.354,665 | 0.7 | 1.307,864 | 1.5 |
| PH | 1,192 | 18.3 | 122.066,077 | 20.7 | 56.421.386 | 62.9 |
| PH sensitive | 16 | 0.2 | 371,500 | 0.1 | 280.290 | 0.3 |
| View appendice-3.2 | 1,040 | 15.9 | 178.835,741 | 30.4 | 4.179.499 | 4.7 |
| Used assets | 3 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| GENERAL TOTAL | 6.524 | 100 | 589.047.081 | 100 | 89.687,590 | 100 |
Value of trade for the January-August 2004 period.
PARAGUAY
| Cronogram | Subheadings | Participation% | EXPO PAR | Participation% | IMPO PAR | Participation% |
| Immediate | 963 | 14,8 | 0 | 0.0 | 20,918 | 1.5 |
| 6-years | 30 | 0.5 | 0 | 0.0 | 0 | 0.0 |
| 12-years | 4,510 | 69.1 | 534,333 | 88.5 | 692,600 | 50.7 |
| 15 -years | 769 | 11.8 | 59.320 | 9.8 | 563.388 | 41.2 |
| PH | 5 | 0.1 | 0 | 0.0 | 768 | 0.1 |
| View appendice-3.3 | 244 | 3.7 | 10.261 | 1.7 | 88.540 | 6.5 |
| View Explanatory Note | 1 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| Used assets | 2 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| GENERAL TOTAL | 6.524 | 100 | 603,914 | 100 | 1.366.214 | 100 |
Value of trade for the January-August 2004 period.
URUGUAY
| Cronogram | Subheadings | Participation% | EXPO URU | Participation% | IMPO URU | Participation% |
| Immediate | 781 | 12.0 | 63.393,743 | 52.0 | 2.038.761 | 47.8 |
| 6-years | 620 | 9.5 | 1.526.263 | 1.3 | 6.445 | 0.2 |
| 12-years | 3,527 | 54.1 | 32.652.965 | 26.8 | 295.163 | 6.9 |
| 15 -years | 282 | 4.3 | 4.942.603 | 4.1 | 245,599 | 5.8 |
| PH | 882 | 13.5 | 12.514.739 | 10.3 | 811.192 | 19,0 |
| PH sensitive | 32 | 0.5 | 7,698 | 0.0 | 16,294 | 0.4 |
| View appendice-3.4 | 398 | 6.1 | 6.978,654 | 5.7 | 855.480 | 20.0 |
| Used assets | 2 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| GENERAL TOTAL | 6.524 | 100 | 122.016.665 | 100 | 4.268,934 | 100 |
Value of trade for the January-August 2004 period.
TABLE 2
Mercosur offer to Colombia
ARGENTINA
| Cronogram | Subheadings | Participation% | EXPO ARG | Participation% | IMPO ARG | Participation% |
| Immediate | 775 | 11.9 | 3.820.041 | 3.3 | 2.584,924 | 13.8 |
| 10-years | 3,738 | 57.3 | 31.221,630 | 26.6 | 1,420.040 | 7.6 |
| 12-years | 52 | 0.8 | 5.066.533 | 4.3 | 170.086 | 0.9 |
| 15 -years | 209 | 3.2 | 18.085,692 | 15.4 | 1.809.112 | 9.7 |
| PH | 1.348 | 20,7 | 37.239.460 | 31.7 | 6.420.393 | 34.3 |
| View appendice-3.1 | 399 | 6.1 | 22.082.263 | 18.8 | 6.292.031 | 33.7 |
| Used assets | 3 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| GENERAL TOTAL | 6.524 | 100 | 117.515.619 | 100 | 18,696,586 | 100 |
Value of trade for 2003.
BRAZIL
| Cronogram | Subheadings | Participation% | EXPO BRA | Participation% | IMPO BRA | Participation% |
| Immediate | 1.235 | 18.9 | 108.890.922 | 18.5 | 20,726.130 | 23.1 |
| 4-years | 442 | 6.8 | 11.787.283 | 2.0 | 609,576 | 0.7 |
| 8-years | 2,540 | 38.9 | 162.740,894 | 27.6 | 6.162.845 | 6.9 |
| 15 -years | 56 | 0.9 | 4.354,665 | 0.7 | 1.307,864 | 1.5 |
| PH | 1,192 | 18.3 | 122.066,077 | 20.7 | 56.421.386 | 62.9 |
| PH sensitive | 16 | 0.2 | 371,500 | 0.1 | 280.290 | 0.3 |
| View appendice-3.2 | 1,040 | 15.9 | 178.835,741 | 30.4 | 4.179.499 | 4.7 |
| Used assets | 3 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| GENERAL TOTAL | 6.524 | 100 | 589.047.081 | 100 | 89.687,590 | 100 |
Value of trade for 2003.
PARAGUAY
| Cronogram | Subheadings | Participation% | EXPO PAR | Participation% | IMPO PAR | Participation% |
| Immediate | 963 | 14,8 | 0 | 0.0 | 20,918 | 1.5 |
| 6-years | 30 | 0.5 | 0 | 0.0 | 0 | 0.0 |
| 12-years | 4,510 | 69.1 | 534,333 | 88.5 | 692,600 | 50.7 |
| 15 -years | 769 | 11.8 | 59.320 | 9.8 | 563.388 | 41.2 |
| PH | 5 | 0.1 | 0 | 0.0 | 768 | 0.1 |
| View appendice-3.3 | 244 | 3.7 | 10.261 | 1.7 | 88.540 | 6.5 |
| View Explanatory Note | 1 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| Used assets | 2 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| GENERAL TOTAL | 6.524 | 100 | 603,914 | 100 | 1.366.214 | 100 |
Value of trade for 2003.
URUGUAY
| Cronogram | Subheadings | Participation% | EXPO URU | Participation% | IMPO URU | Participation% |
| Immediate | 781 | 12.0 | 63.393,743 | 52.0 | 2.038.761 | 47.8 |
| 6-years | 620 | 9.5 | 1.526.263 | 1.3 | 6.445 | 0.2 |
| 12-years | 3,527 | 54.1 | 32.652.965 | 26.8 | 295.163 | 6.9 |
| 15 -years | 282 | 4.3 | 4.942.603 | 4.1 | 245,599 | 5.8 |
| PH | 882 | 13.5 | 12.514.739 | 10.3 | 811.192 | 19,0 |
| PH sensitive | 32 | 0.5 | 7,698 | 0.0 | 16,294 | 0.4 |
| View appendice-3.4 | 398 | 6.1 | 6.978,654 | 5.7 | 855.480 | 20.0 |
| Used assets | 2 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| GENERAL TOTAL | 6.524 | 100 | 122.016.665 | 100 | 4.268,934 | 100 |
Value of trade for 2003.
1998 Law 424
(January 13)
by which international conventions are ordered to follow
subscribed by Colombia.
The Congress of Colombia
DECRETA:
Article 1. The National Government through the Foreign Ministry will submit annually to the Senate and Chamber of Foreign Relations Committees, and within the first thirty (30) calendar days after the legislative period starts every 20 July, a detailed report on how the existing International Conventions signed by
are being fulfilled and developedColombia with other states.
Article 2. Each dependency of the National Government charged with implementing the International Treaties of its competence and requiring reciprocity in the isms, will transfer the relevant information to the Ministry of Foreign Affairs and the Ministry of Foreign Affairs. Second Commissions.
Article 3. The full text of this law shall be incorporated as an annex to any and all International Conventions that the Ministry of Foreign Affairs presents to the Congress.
Article 4. This law governs from its enactment.
The President of the honorable Senate of the Republic,
Amylkar Acosta Medina.
The Secretary General of the honorable Senate of the Republic,
Pedro Pumarejo Vega.
The President of the honorable House of Representatives,
Carlos Squirla Ballesteros.
The Secretary General of the honorable House of Representatives,
Diego Vivas Tafur.
COLOMBIA-NATIONAL GOVERNMENT
Publish and execute.
Dada en Santa Fe de Bogota, D. C., on January 13, 1998.
ERNESTO SAMPER PIZANO
The Foreign Minister,
Maria Emma Mejia Velez
EXECUTIVE BRANCH OF PUBLIC POWER
PRESIDENCY OF THE REPUBLIC
Bogotá, D. C., on February 28, 2005.
Approved. Submit to the consideration of the honorable National Congress for the constitutional effects.
(Fdo.) ALVARO URIBE VELEZ
The Foreign Minister,
(Fdo.) Carolina Barco Isakson.
DECRETA:
Article 1 °. Approve the " Agreement on economic complementation concluded between the Governments of the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay, States Parties
Mercosur and the governments of the Republic of Colombia, the Republic of the Quador and the Bolivarian Republic of Venezuela, member countries of the Andean Community 'and the' First Additional Protocol-Regime for the Resolution of the United Nations ', signed in Montevideo Uruguay, at eighteen (18) days of the month of October two thousand four (2004) ".
Article 2 °. In accordance with the provisions of Article 1 (1) of Law 7ª of 1944, the " Agreement of Economic Complementation concluded between the Governments of the Republic of Argentina, the Federal Republic of Brazil, the Republic of Paraguay and the Republic of the Republic of Eastern Uruguay, States Parties to Mercosur and the Governments of the Republic of Colombia, the Republic of Ecuador and the Bolivarian Republic of Venezuela, Member States of the Andean Community and the First Additional Protocol- Dispute settlement ', subscribed to
in Montevideo Uruguay, at the eighteen (18) days of October of two thousand four (2004) ", which under article 1 of this law are approved, will force the country from the date on which the international link is perfected
regarding the isms.
Article 3 °. This law applies from the date of its publication. The resident of the honorable Senate of the Republic,
Claudia Blum de Barberi.
The Secretary General of the honorable Senate of the Republic,
Emilio Ramon Otero Dajud.
The President of the honorable House of Representatives,
Julio E. Gallardo Archbold.
The Secretary General of the honorable House of Representatives,
Angelino Lizcano Rivera.
COLOMBIA-NATIONAL GOVERNMENT
Communicate and comply.
Execute, after revision of the Constitutional Court, according to the
article 241-10 of the Political Constitution.
Dada en Bogotá, D. C., at 30 December 2005.
ALVARO URIBE VELEZ
The Vice Minister of Multilateral Affairs, in charge of the functions
from the Foreign Minister's Office,
Alejandro Borda Rojas.
The Minister of Mines and Energy, in charge of the functions of the
Office of the Minister of Commerce, Industry and Tourism,
Luis Ernesto Mejia Castro.
------------------
1. Representatives of Bolivia, Colombia, Chile, Ecuador and Peru, based on the Declaration of Bogotá (1966) and the Declaration of America (1967), signed the Cartagena Agreement. Venezuela subsequently acceded to the Agreement in 1973 and Chile withdrew in 1975
2. Numerals 16 and 19 literal b).
3. Numerals 2 and 25.
4. NOTE: Official figures. Economic Integration Direction calculations.
5. NOTE: Opportunities and Threats of a Mercosur Andean Community Agreement for Argentina and Brazil. International Economics Center of the Ministry of Foreign Affairs of Argentina. September 2003
6. Colombian Trade Policy: Negotiation scenarios between the Andean Community and Mercosur, Fedesarrollo in 1999
7. This implies that the relief program for this product does not start until the countries do not find the right conditions for the effect.
8. The tariff preferences and other access conditions set out in the Regional Agreements on Regional Tariff Preference, PAR, and the Market Access Nomine, NAM, are preserved.
9. This principle, referred to in Articles 3 and 18 of the TM80, is the product of the differences in the economic development levels of the Member States. For that matter, Argentina and Brazil adopt more accelerated tariff relief programs than those required by Colombia.
10. In session on 25 November 2003. The Joint Committee on Foreign Trade is the highest level of dialogue between the National Government and the productive sector, made up of the President of the Republic, the Economic Area Ministers and the representative of the productive
---------------------
1 The GDP growth levels in Colombia have been 1.9% in 2002, 3.8% in 2003 and 3.9% projected for 2004 (DNP), which boosted the purchase of raw materials and inputs such as metallurgy and chemistry, especially from Brazil.
2 Following an 11% drop in 2002, Argentina's gross domestic product (GDP) grew by almost 9% in 2003 and continued to increase in 2004, with growth projected to be around 7% (Latin America Focus).
3 As of 2002 Argentina's nominal exchange rate entered the system of administrative flotation, with which it went from a fixed exchange rate of 1-1 to devaluing around 3 pesos per dollar. (CEPAL).
4. The initiation of the relief program is subject to subsequent agreement of the parties
5 See Tables 1 and 2 for detailed statistical information.
6 January-August 2004.
7. See Tables 1 and 2 for detailed statistical information.
8. See Tables 1 and 2 for detailed statistical information
US$ 138,000 imported from Paraguay versus US$ 12.162 billion imported from the world.
10 See Tables 1 and 2 for detailed statistical information
