RESTRICTED
WORLD TRADE WT/COMTD/7
30September 1996
ORGANIZATION(96-3894)
Original: Spanish Committee onTrade andDevelopment
LATIN AMERICAN INTEGRATION ASSOCIATION
Theattached communication wasreceived from thePermanent Delegation ofUruguay on
16August 1996 with therequest thatitbecirculated toWTO Members.
_______________
The Permanent Delegation ofUruguay totheUnited Nations Office and International
Organizations atGeneva presents itscompliments totheSecretariat oftheWorld Trade Organization
andhasthehonour tosubmit, onbehalf ofthemember States oftheLatin American Integration
Association (LAIA), theattached Report ontheimplementation oftheprovisions relating to"Differential
andMoreFavourableTreatment,ReciprocityandFullerParticipationofDevelopingCountries"(Enabling
Clause) bythese States during theperiod 1993-1994.
Additional information concerning theperiod 1991-1992 isalsoattached asanAnnex.WT/COMTD/7
Page 2
TABLE OFCONTENTS
Page
I. Information onmeasures taken byLAIA member countries under
the1980 Treaty ofMontevideo during 1992 4
1. Regional trade during 1991/1992 4
1.1 1991 4
1.2 1992 7
2. Agreements andmodifications in1992 11
2.1 Trade agreements (Annex 1) 11
2.2 Economic Complementarity Agreements (Annex 2) 11
2.3 Other types ofagreements (Annex 3) 23
2.3.1 Agreements signed under Article 13ofthe
1980 Treaty ofMontevideo
(Trade Promotion Agreements) 23
2.3.2 Agreements signed under Article 14ofthe
1980 Treaty ofMontevideo 25
2.4 Partial-Scope Agreements on"Renegotiation of
Concessions Granted during theperiod 1962/1980"
(Annex 4) 29
2.5 Regional agreements (Annex 5) 30
2.6 Agreements concluded with non-LAIA Latin
American countries (Article 25ofthe
1980 Treaty ofMontevideo) Article 6 30
II. Information onmeasures taken byLAIA member countries under
the1980 Treaty ofMontevideo during theperiod 1993/1994 34
1. Regional trade during 1993/1994 34
1.1 1993 34
1.2 1994 37
2. Agreements andmodifications during theperiod 1993/1994 40
2.1 Trade agreements (Annex 7) 40
2.2 Economic complementarity agreements (Annex 8) 41
2.2.1 Additional protocols 41
2.2.2 Conclusion ofnew Agreements 43
2.2.3 Agreements concluded byParaguay 69
2.2.4 Lapsed Economic Complementarity Agreements 69
2.3 Agricultural agreements (Annex 9) 70
2.4 Other types ofpartial-scope agreements (Annex 10) 70WT/COMTD/7
Page 3
Page
2.4.1 Agreements signed under Article 13ofthe
1980 Treaty ofMontevideo 70
2.4.2 Agreements concluded under Article 14ofthe
1980 Treaty ofMontevideo 72
2.5. Agreements forthe"Renegotiation ofconcessions granted
intheperiod 1962-1980" (Annex 11) 73
2.6 Regional agreements 74
2.7 Agreements concluded bytheMember countries
with non-LAIA-member Latin American countries
(Article 25ofthe1980 Treaty ofMontevideo) (Annex 12) 75
ANNEXES
Annex 1 - Trade Agreements (1992) 81
Annex 2 - Economic Complementarity Agreements (1992) 84
Annex 3 - Other Types ofPartial-Scope Agreements (1992) 86
A. Partial-Scope Agreements under Article 13
ofthe1980 Treaty ofMontevideo
(Trade Promotion Agreements) 86
B. Partial-Scope Agreements under Article 14
ofthe1980 Treaty ofMontevideo 87
Annex 4 - Agreements onRenegotiation ofConcessions Granted
During thePeriod 1962/1980 (1992) 88
Annex 5 - Regional Agreements (1992) 89
Annex 6 - Agreements Concluded with non-LAIA Latin American
Countries (1992) 90
Annex 7 - Trade Agreements (1993-1994) 91
Annex 8 - Economic Complementarity Agreements (1993-1994) 95
Annex 9 - Agricultural Agreements (1993-1994) 99
Annex 10 - Other Types ofPartial-Scope Agreements (1993-1994) 100
A. Partial-Scope Agreements under Article 13ofthe
1980 Treaty ofMontevideo (Trade Promotion
Agreements) 100
B. 1980 Treaty ofMontevideo, Article 14 101
Annex 11 - Agreements onRenegotiation ofConcessions Granted
During thePeriod 1962/1980 (1993-1994) 102
Annex 12 - Agreements Concluded with non-LAIA Latin American
Countries (1993-94) 105WT/COMTD/7
Page 4
GATT ENABLING CLAUSE
I. INFORMA TIONONMEA SURES TAKENBYLAIAMEMB ERCOUNTRI ESUNDER THE
1980 TREATY OFMONTEVIDEO DURING 1992
TheLAIA member countries which arealsoGATT contracting parties hereby inform theWorld
Trade Organization 'sCommittee onTrade andDevelopment ofthemeasures taken under the1980
Treaty ofMontevideo bilaterally oramong groups ofcountries in1992, thus supplementing the
information relating to1991, duly submitted bytheLAIA General Secretariat andreproduced inGATT
documents L/6985 of5March 1992 andL/6985/Add.1 of9April 1992.
ThisReport contains twoparts, thefirstdealing withtrade during 1992, andthesecond covering
regionalandpartial-scopeagreementsconcludedbyLAIAmembercountriesthatarepartytotheGeneral
Agreement, andchanges intreatment granted during theperiod inquestion.
1. Regional trade during 1991/1992
1.1 1991
After reaching anall-time record level in1990, thevalue ofaggregate exports ofthecountries
oftheregion dropped slightly to$110,873 million in1991. This decrease, which waspartly dueto
afallinworld oilprices after theresolution ofthePersian Gulf crisis, halted theupward trend since
1987 inwhich trade increased atanaverage annual rateof13percent.
Incontrast with thedevelopments oftheprevious year, when nine countries intheregion
increased their aggregate exports, theperformance varied widely in1991. While Colombia (8per
cent), Chile (6percent) andEcuador (5percent) moderately increased their external sales, exports
increased rather modestly inBrazil (1percent), declined significantly inParaguay (-23 percent),
Venezuela (-14 percent), andUruguay (-8percent), andcontracted toalesser extent inArgentina
(-3percent), Bolivia (-3percent), Peru (-3percent) andMexico (-2percent).
InColombia growth wasduetoanincrease innon-traditional exports (30percent), since oil
sales fellsharply (26percent) because ofadrop inprices andproblems created byrepeated attacks
onpipelines. Coffee exports declined asaresult ofafurther fallinworld prices. Inspite ofthe
reduction inthevalue ofcopper sales, duetothefall(-12percent) initsprice ontheworld market,
exports from Chile grew because ofincreased sales ofproducts other than copper, reinforcing atrend
which hademerged inprevious years.
Inspite ofthesignificant drop inoilprices, thevalue ofEcuador 'saggregate exports increased
asaresult ofafurther expansion intheexport ofprimary products such asshrimps andbananas. Shrimp
exports accounted foronesixth oftotal exports andtheliberalization oftheEastern European market,
increaseddemandintheRepublicofKorea,reducedcompetitionfromthecountriesofAsiaandimproved
world prices ledtoremarkable growth inbanana exports over recent years. Themodest riseinBrazilian
exportswasbasedonincreasedexportsofbasicproductsandsemi-manufactures,assalesofmanufactures
reached anew low.
InParaguay exports fellforthesecond consecutive year, following thesharp increase recorded
in1989, because oflowsoya prices (-3percent) andtheshrinkage ofthephysical volumes exported,
only partially offset bytheincrease incotton exports. Thereduction ofexports byVenezuela was
duetothefallinoilprices compared totheprices recorded inthemonths during thePersian Gulf
conflict, coupled withtheequally unfavourable trend fornon-petroleum exports. Thevalue ofaggregateWT/COMTD/7
Page 5
exports ofUruguay fellasaconsequence oflower traditional exports: wool, duetothefall(-21percent)
ofitsworld price andmeat products, which were exported insmaller quantities, inspite ofa5per
cent increase initsaverage price.
Inthecase ofArgentina, exports were notasdynamic asinprevious periods, which were
characterized byinternal recession andahigh realrateofexchange. Theexchange ratefellby30per
centin1991, afallwhich wasoffset inpartbythereduction ofexport taxes. This reduction didnot
succeed inpreventing thereduced levels oftotal exports, caused bythefallinaverage prices anda
major reduction ofvolumes exported. InBolivia thevalue ofexports decreased primarily because
ofafallinunitvalue and, toalesser extent, involume. Theunitvalue wasparticularly affected by
thefallintinprices forthesecond consecutive year. Although exports offishmeal andcotton by
Peru rose andexports ofnon-traditional products increased slightly, thevalue ofexports ofmetals
fellsharply because ofplunging world prices. Stagnation ofexports byMexico could betraced to
aweakening ofpetroleum prices, asother exports, mainly agricultural products andmanufacturers,
continued toexpand significantly.
Thevalue ofaggregate imports, confirming thetrend observed theprevious year, grew by
21percentin1991 toatotal of$100,995 million. This increase applied, invarying proportions, to
10countries intheregion andonly Colombia suffered areduction initstotal export sales. Themajor
factors contributing togrowth were higher imports byMexico (+$8,544 million), Argentina
(+$4,198 million) andVenezuela (+$3,434 million), which together accounted forover 90percent
oftheincrease intheregional aggregate (+$17,740 million).
Improvements inproduction andinvestment were theprincipal reasons forstrong growth in
thevalue ofimports byMexico. Importation ofinputs andcapital goods expanded themost, while
thegrowth rateofimportation ofconsumer items fellto15percent, following anannual average rate
close to90percentduring theprevious three-year period. InArgentina, duetotheincrease indomestic
demand, thefallintherealrateofexchange andliberalization mechanisms, thevalue ofimports more
than doubled. With theexception ofsome products receiving special treatment, themaximum tariff
wasreduced to22percentandspecific duties andquantitative restrictions ontheimportation ofcertain
products were lifted. InVenezuela, thanks totheconsiderable expansion indomestic demand and
thedecline intherealrateofexchange, imports rose sharply, tomore than 50percent.
InBrazil aggregate imports roseby2percent, with adrop inoilimports, duetothecontraction
ofitsprice ontheworld market andanincrease inimports ofother products, especially agricultural
products, inthiscase tooffset thedecline indomestic production, andother goods asaresult ofthe
liberalization policy adopted in1990. Chile hada6percent increase notwithstanding stagnation in
theimportation ofcapital goods andtheeffect oftheadjustment policy initiated some time earlier.
The11percent contraction inthevalue ofaggregate imports byColombia resulted from thefallin
investment andtheslackening ofthecountry 'seconomic growth rate. Despite thesevere recession,
trade liberalization andalowlevel intherealrateofexchange, thevalue ofaggregate imports went
upby7percent inPeru.
Trade liberalization, which mainly stimulated imports ofcapital andconsumer goods, ledto
anapproximately 30percent increase inimports byEcuador. Duties were fixed atlevels ranging
between 5and35percent, andmeasures designed toeliminate quantitative restrictions were adopted.
Uruguay andParaguay increased thevalues oftheir imports by10and8percent respectively, due
primarily totheerosion oftheir realrates ofexchange. InBolivia thesharp expansion ofimports
from therestoftheworld, coupled with moderate growth inimports from LAIA countries, accounted
forthe40percent riseinthevalue oftheir aggregate imports.WT/COMTD/7
Page 6
Asaconsequence ofadrop ofover 4percentinthevalue ofexports totherestoftheworld
andvigorous growth, ofover 20percent, intotal imports fortheregion from other countries, the
surplus inthistrade fellsignificantly, toalevel of$10,413 million, almost onethird ofthatinthe
previous year.
Thevalue ofintraregional exports grew in1991 (24percent) forthesixth consecutive year,
reaching anewhistoric record of$15,085 million, anamount which basically doubles thetotal recorded
in1985. This significant increase wasdue,inthemain, tothesharp expansion oftrade inmanufactures
(34percent) which amounted to$7,638 million, over halfthetotal amount ofreciprocal exports.
Likewise, acorresponding increase inthiscategory ofproducts (+$1,932 million) covered 66per
cent oftheincrease intheintraregional aggregate.
Thesignificant riseinreciprocal trade produced differing results inthevarious countries.
Brazil hadthehighest increase (+$1,744 million) and, toalesser extent, Colombia (+$457 million),
Peru (+$250 million), Argentina (+$241 million), Venezuela (+$78 million), Ecuador (+$56 million)
andBolivia (+$22 million). However Paraguay (-$99 million) andUruguay (-$36 million) hadfalling
exports inthiscategory oftrade.
Themajor exporters intheyearunder consideration, indecreasing order ofvalues, were Brazil,
with afigure covering 33percentoftotal intraregional exports andArgentina (22percent), followed
byChile (9percent), Venezuela (8percent), Colombia (7percent), Mexico (6percent), Uruguay
(4percent), Peru (4percent), Bolivia (3percent), Ecuador (2percent) andParaguay (2percent).
Brazil ($3,285 million) wasthemain destination ofexports intheregion, followed byArgentina
($2,525 million), Chile ($1,895 million), Mexico ($1,350 million), Venezuela ($1,346 million), Peru
($1,185 million), Colombia ($925 million), Paraguay ($755 million), Uruguay ($750 million), Ecuador
($533 million) andBolivia ($536 million).
Thestructure ofreciprocal exports bysubregions andaccording toexports between theregions
in1991 wasasfollows: intra-subregional exports ofMERCOSUR ($5,103 million) accounted for
34percent oftheLAIA total, GRAN (Andean Group) -MERCOSUR reciprocal exports
($2,908million),19percent,MERC OSUR-Chile($2,030million),13percent,GRANintra-subregional
exports ($1,769 million), 12percent, MERCOSUR-Mexico reciprocal exports ($1,439 million), 10per
cent, GRAN-Chile ($967 million), 6percent, GRAN-Mexico ($702 million), 5percent and
Chile-Mexico ($167 million), 1percent.
Thevalue ofintra-MERCOSUR exports grew by24percentto$5,103 million in1991. Exports
byBrazil ($2,308 million) expanded bynearly 75percentandArgentina 'sexports ($1,978 million)
by8percent, while reciprocal trade between both countries (Argentina: $1,489 million; Brazil:
$1,475 million) accounted for58percentoftheintra-subregional total. Incontrast, exports byParaguay
($259 million) andUruguay ($558 million) declined by32and6percent respectively.
Brazilian exports toArgentina grew considerably (129 percent) with avalue equal to64per
centofthesumofexports tothesubregion. Brazilian exports toParaguay alsoincreased (30percent),
at$496 million, andtoUruguay (15percent) with atotal of$337 million.
Themoderate increase inexports byArgentina wasduetoanincrease inexports toBrazil
(5percent), Paraguay (21percent), with atotal of$178 million, andUruguay (18percent), with
atotal of$311 million.WT/COMTD/7
Page 7
Thefallinexports byParaguay wasattributable primarily todecreased sales toBrazil (-35 per
cent) which fellto$203 million, andacontraction inthevalue ofexports toArgentina (-20percent)
which dropped to$45million.
After aperiod ofgrowth in1989 and1990, when thetotal exceeded $500 million, exports
byUruguay toBrazil fell(-24 percent) to$384 million in1991, while sales toArgentina doubled
to$163 million, anincrease which wasnotsufficient tooffset theabove-mentioned contraction.
Thetotal value ofintra-subregional exports oftheAndean Group (GRAN) countries in1991
stood at$1,769 million, 40percent higher than inprevious years. This increase canbasically be
explained bythesharp riseinexports byColombia (109 percent), which totalled $779 million, Bolivia
(50percent), with $90million andPeru (18percent), with atotal of$252 million, andasmaller
riseinexports byEcuador (8percent) andVenezuela (3percent), amounting to$204 and$252 million
respectively.
Exports byColombia toVenezuela andPeru more thandoubled, totalling $430 and$213 million
respectively, while exports inEcuador grew byalmost 70percent, at$127 million.
Theriseinexports byBolivia tothesubregion wasentirely duetohigher exports toColombia
amounting to$31million in1991, while exports toPeru, themain market forBolivian exports tothe
GRAN countries, remained intheregion of$54million.
Inthecase ofEcuador, theincrease wasattributable totheexpansion ofexports toPeru
($164 million), partly offset bythefallinsales toVenezuela which, after rising to$18million in1990,
dropped toamere $7million in1991.
Peru increased itsexports toEcuador (61percent), Venezuela (44percent) andColombia
(11percent), totalling $45, $82and$104 million respectively, butexports toBolivia (-38 percent)
fellto$21million.
TheslightincreaseinthevalueofexportsbyVenezuelatothesubregionwascausedbyincreased
sales toPeru (150 percent) andEcuador (55percent) andreduced exports toColombia (-15 percent),
which remained theprincipal destination ofexports inthesubregion, at$308 million.
1.2 1992
Thevalue ofaggregate exports fortheregion asawhole increased by4percentin1992, to
$115,717 million, thehighest trading level everattained, inspite ofthemoderate expansion previously
mentioned. Regional export markets were particularly influenced byreduced economic growth inthe
industrialized countries accompanied bylower demand forbasic products, whose prices were further
cut,andmanufactures. Inthiscontext, thegrowth ofexports intheregion wasrather varied. While
inBrazil (14percent) andChile (10percent) exports outside theregion expanded considerably, they
grew toalesser extent inEcuador (7percent), Peru (5percent), Uruguay (3percent), Argentina
(2percent) andMexico (1percent), whereas thevalue ofexports from Bolivia (-15percent), Paraguay
(-11 percent), Venezuela (-5percent) andColombia (-5percent) fell.
TheriseinBrazilian exports, which reached anunprecedented record level waschiefly the
result ofasharp increase insales totheregion (54percent), especially toArgentina (106 percent)
asituation created simultaneously byArgentina 'sliberalization policy andpreferences granted under
MERCOSUR, andtheadvantageous exchange raterelationship with theArgentinean peso.WT/COMTD/7
Page 8
Aggregate exports byChile were more dynamic thanduring theprevious yearduetoan11per
centincrease incopper exports anda16percentincrease inexports tocountries outside theregion.
Copper exports were again affected bythefallinworld prices, amply offset bytheincrease inexport
volumes.
InEcuadorgrowthresultedfromthesharpexpansionofpetroleumexports,inspiteofareduction
ofmore than 2percentinunitvalue, accompanied byasignificant riseinprocessed seafood, partly
offset bylower shrimp exports, following anactive period forshrimp exports inprevious years. In
addition, exports ofbanana, cocoa andcoffee fell. Inspite ofthelowrealexchange rateandweather
conditions thataffected exports ofagricultural products andfish, Peru hada5percentgrowth, directly
attributable torising exports ofmetallic minerals. InUruguay growth wascreated byanupturn in
traditional exports butthepace ofexpansion ofnon-traditional exports slowed, inspite ofthefavourable
exchangeraterelationshipwithArgentinathatledtoasignificantincreaseinexportstoArgentina(53per
cent). Thesharp increase inexports ofwheat andcorn notwithstanding, Argentina 'saggregate exports
grew only modestly because ofadecline insales ofoilseeds andother agricultural products with a
slight increase inthesales ofindustrial goods. Thesimilarly modest increase inexports byMexico
wasduetolimited growth insales totheUnited States, theovervalued national currency andflat
petroleum sales, towhich could beadded, various problems impinging onexports ofother primary
products. Nevertheless exports ofmanufactures rose(6percent), albeit lesssharply thanintheprevious
year (11percent).
Theabrupt drop inexports byBolivia wasdue, inthemain, tothereduction ofexports of
natural gastoArgentina (-47 percent), wolfram andnon-monetary gold, along with reduced sales
ofnon-traditional products such assoya, sugar andcoffee. However, exports oftinandzincincreased
andpartly offset theshortfall. The 11percent drop inParaguay 'sexports waschiefly duetoa
significant reduction incotton sales, down almost 60percent, inspite ofaconsiderable increase in
soya seed exports andincreased exports ofsoya meal andoil.Thecontraction ofexports byVenezuela
resulted from reduced sales ofoil,duetoadrop inboth unit value andvolume, andalso of
non-petroleum products. InColombia coffee exports declined (4percent) despite asharp increase
inthevolume exported asaresult ofafurther reduction initsworld price. Petroleum exports fell
slightly forthesame reason andthesituation wascompounded bytheeffect ofseveral attacks on
pipelines. Exports ofcoal, ferronickel compounds andnon-monetary gold.
Thevalue oftotal aggregate imports grew by23percentin1991 to$124,666 million, sothat
thegrowth rateofimports washigher than intheprevious year. Although thisincrease applied, in
varying proportions, toninecountries intheregion, itwasparticularly marked inthecaseofArgentina
(80percent), which accounted for28percentoftheregional total. Itwasalsosignificant inColombia
(35percent), Uruguay (30percent), Chile (27percent), Venezuela (26percent), Mexico (26per
cent), Peru (24percent) andBolivia (14percent) andmore moderate inEcuador (7percent), whereas
Brazil andParaguay both hadreductions of3percent.
Thesignificant riseinimports byArgentina resulted from aconsiderable expansion ofdomestic
demand, liberalization andadrop intherealrateofexchange, factors which ledtoawidespread increase
inimports ofallcategories ofproducts.
InColombia, increased imports stemmed from theliberalization policy which ledtoa30per
centriseinthepurchase ofcapital goods, 20percentinthecaseofconsumer goods, and26percent
forintermediate goods. Increased domestic demand inUruguay, mainly forconsumer durables, together
with lower costduetotheappreciation ofthecurrency andtariff cuts, ledtohigher import activity
inUruguay. Inthecase ofChile, expansion wasduetosharp economic growth, areduction inthe
realrateofexchange andasignificant inflow ofcapital leading tohigher imports ofcapital andconsumer
goods. InVenezuela theriseinimports followed from thesharp increase ineconomic activity, tariffWT/COMTD/7
Page 9
reductions andthelowrealrateofexchange. InMexico imports ofcapital andconsumer goods in
particular, continued toincrease, with theresult thatthevalue ofimports roseforthesixth consecutive
year, towellover fourtimes thelevel in1986. Inspite oftheeconomic recession, trade liberalization
andalower realrateofexchange contributed toanincrease inimports, primarily ofconsumer goods,
even though there were significant rises inimports ofother categories ofgoods. Bolivia 'simport
expansion, which responded mainly tothedemand forintermediate goods byindustry andconstruction,
reached14percentdespiteadevaluationthatwasdesignedtolimitimports.Themoremoderateincrease
recorded inEcuador, duetohigher imports ofconsumer durables, capital goods andthetransport sector
goods, wascurbed inthefinal months of1992 when thecountry began toimplement aneweconomic
programme.
Economic recession, particularly inindustrial activity, andtheriseintherealrateofexchange
ledtoaslight decline inthevalue ofBrazil 'saggregate imports. Thedeepening ofthecountry 's
liberalizationprogrammewasnotenoughtoavoidacontractionofimportsinParaguay,asaconsequence
ofahigher realrateofexchange andthereduction incapital flows from abroad.
Stagnation inthevalue ofexports totherestoftheworld andthesharp increase ofimports
from those countries meant thattheregion 'strade balance insuch trade went from asurplus of
$10,413 million in1991 toadeficit of$8,346 million in1992.
In1992 thevalue oftotalintraregional exports again reached ahistoric peak of$19,412 million,
up29percentfrom theprevious year. Yetagain, themajor factor contributing totheincrease was
thesignificant expansion ofreciprocal exports ofmanufactures (42percent), whose increase
(+$3,226 million) wasresponsible for75percentoftheregional aggregate (+$4,327 million). The
share oftotal trade inthiscategory ofproducts ($10,864 million) intheintraregional total went from
alittle over than 50percent in1991 toalmost 56percent in1992. Although themost significant
increase contributing totherisewashigher exports byBrazil (+$2,655 million), there were also
substantial increases inexports byArgentina (+$549 million), Mexico (+$410 million), Chile
(+$350 million), Colombia (+$206 million) andVenezuela (+$131 million).
Thebreak-down ofreciprocal exports bysubregion in1992 wasasfollows: MERCOSUR
intra-subregionalexports($7,215million),37percentoftheLAIAtotal,GRAN-MERC OSURreciprocal
exports ($3,153 million), 16percent, MERCOSUR-Chile ($2,589 million), 13percent, GRAN
intra-subregional exports ($2,210 million), 12percent, MERCOSUR-Mexico ($2,065 million), 11per
cent, GRAN-Chile ($1,004 million) and GRAN-Mexico ($935 million), both 5percent, and
Chile-Mexico ($241 million), 1percent.
Thevalue ofintra-MERCOSUR exports increased sharply (41percent) in1992, largely due
tothespectacular growth inBrazilian exports (78percent) which rose to$4,098 million, ofwhich
$3,041 million consisted ofexports toArgentina, which more than doubled, $543 million inexports
toParaguay, up9percent, and$514 million inexports toUruguay, 53percentmore than in1991.
Exports byArgentina tothesubregion rose 18percent, foratotal of$2,327 million. Sales
toBrazil totalled $1,671 million, Uruguay, $384 million, andParaguay, $272 million, representing
increases of12,23and53percent respectively. Reciprocal exports between Brazil andArgentina
($4,712million)accountedfor65percentofthesubregionaltotaland24percentofoverallintraregional
exports for1992.
Subregional exports byUruguay ($544 million) andParaguay ($246 million) fellby3and5per
cent. Inthecase ofUruguay, thiswasduetoa53percent increase intotal exports toArgentina
($250 million) anda26percent reduction ofexports toBrazil ($284 million), whereas Paraguay 'sWT/COMTD/7
Page 10
lowfigures were attributable toa16percentdrop initsexports toBrazil ($171 million) only partly
offset byincreased exports (42percent) toArgentina ($64 million).
Intra-subregional exports bytheAndean Group climbed to$2,210 million in1992, up25per
centovertheprevious year. Thisgrowth wasprimarily duetosignificant increases insales byVenezuela
(50percent) andColombia (28percent), with totals of$666 and$995 million respectively. Thetotal
exports ofthese twocountries represented 75percentofintra-subregional trade andreciprocal exports
between them (Venezuela, $498 million; Colombia, $580 million) representing 49percentofthetotal.
LAIA
Aggregate External Trade ofMember Countries According toDestination orOrigin
LAIA -Rest oftheWorld
1991-1992
(Millions ofdollars)
CountryExports f.o.b. Imports c.i.f. Balance
1991 1992 92/91 % 1991 1992 92/91 % 1991 1992
LAIA
Argentina 3,369 3,918 16.3 2,748 4,981 81.3 621 -1,030
Bolivia 435 296 -32.0 367 402 9.5 68 -106
Brazil 4,938 7,593 53.8 3,947 3,870 -2.0 991 3,723
Colombia 1,109 1,315 18.6 986 1,432 45.2 123 -117
Chile 1,269 1,619 27.6 2,032 2,392 17.7 -763 773
Ecuador 350 405 15.7 462 489 5.8 112 -84
Mexico 958 1,365 42.8 1,524 2,019 32.5 -566 -651
Paraguay 327 312 -4.6 495 598 20.8 -168 -286
Peru 543 630 16.0 1,035 1,232 19.0 -492 -602
Uruguay 634 672 6.0 751 933 24.2 -117 -261
Venezuela 1,153 1,284 11.4 1,273 1,667 31.0 -120 -383
TOTAL 15,085 19,412 28.7 15,620 20,015 28.1 * *
REST OFTHE WORLD
Argentina 8,609 8,317 -3.4 5,527 9,890 78.9 3,082 -1,573
Bolivia 465 469 0.9 625 728 16.5 -160 -259
Brazil 26,684 28,383 6.4 19,030 18,476 -2.9 7,654 9,907
Colombia 6,160 5,594 -9.2 3,981 5,252 31.9 2,179 342
Chile 7,720 8,302 7.5 5,421 7,064 30.3 2,299 1,238
Ecuador 2,501 2,637 5.4 1,886 2,012 7.8 635 625
Mexico 26,000 25,840 -0.6 36,612 46,064 25.8 -106,121 -20,224
Paraguay 410 345 -15.9 965 824 -14.6 -555 -479
Peru 2,675 2,747 2.7 1,778 2,259 27.1 897 488
Uruguay 940 948 0.9 801 1,077 34.5 139 -129
Venezuela 13,624 12,723 -6.6 8,769 11,005 -25.5 4,855 1,718
TOTAL 95,788 96,305 0.5 85,375 104,651 22.6 10,413 -8,346
TOTAL
Argentina 11,978 12,235 2.1 8,275 14,871 79.7 3,703 -2,636
Bolivia 900 765 -15.0 992 1,130 13.4 -92 -365
Brazil 31,622 35,976 13.8 22,977 22,346 -2.7 8,645 13,630
Colombia 7,269 6,909 -5.0 4,967 6,684 34.6 2,302 225
Chile 8,989 9,921 10.4 7,453 9,456 26.9 1,536 465
Ecuador 2,851 3,042 6.7 2,328 2,501 7.4 523 541
Mexico 26,958 27,208 0.9 38,136 48,083 26.1 -11,178 -20,875
Paraguay 737 657 -10.9 1,460 1,422 -2.6 -723 -765
Peru 3,218 3,377 4.9 2,813 3,491 24.1 405 -114
Uruguay 1,574 1,620 2.9 1,552 2,010 29.5 22 -390
Venezuela 14,777 14,007 -5.2 10,042 12,672 26.2 4,735 1,335
TOTAL 110,873 115,717 4.4 100,995 124,666 23.4 * *
Notes: Thedata forexports byBolivia correspond toofficial customs values anddata forimports ofMexico andVenezuela areexpressed
f.o.b. Data from Mexico includes trade generated byassembly plants.
Preparation: Statistical Unit, LAIA General Secretariat.
Source: Data supplied bymember countries.WT/COMTD/7
Page 11
2. Agreements andmodifications in1992
TheAnnex tothisReport liststhepartial-scope andregional agreements concluded andineffect,
aswell asanyAmending Protocols agreed bythesignatories.
2.1 Trade agreements (Annex 1)
Theabove-mentioned Annex liststheTrade Agreements, indicating thesignatories, industrial
sector concerned, thedate oftheagreement andadditional protocols adopted during 1992.
Nonewtrade agreements were concluded among LAIA member countries during theyearunder
consideration.
Ontheother hand, various changes were made, basically intheagreements where theagreed
preferences were temporary, i.e.forafixed period. Insuch cases preferences arenegotiated fora
period ofoneortwoyears according totheproduction andconsumption prospects fortheproducts
negotiated.
Theextension ofthese preferences isusually agreed forequal andsuccessive periods, essentially
following therecommendations made bybusiness circles intheindustry concerned.
Itistobenoted thatbytheexpress decision ofthesignatories, Trade Agreement No.1relating
tostatistical machines, towhich Brazil, Chile andMexico were signatories, lapsed on29October 1992.
2.2 Economic Complementarity Agreements (Annex 2)
Economic Complementarity Agreement No.2between Brazil andUruguay
Thesixteenth additional protocol, signed on26May 1992, establishes theinclusion ofnew
products (Annex 1),themodification ofnegotiating conditions forproducts covered bytheAgreement
(Annex 2),thelifting ofquotas byBrazil fortheimportation ofvarious products (Annex 3)andthe
updating ofAdditional Notes (Annex 4).
Economic Complementarity Agreement No.11between theRepublic ofArgentina andtheRepublic
ofColombia
Economic Complementarity Agreement No.13between theRepublic ofArgentina andtheRepublic
ofParaguay
On30December 1992 and8November 1992, respectively, theParties signed protocols for
thetransposition ofpreferences granted under these agreements totheNomenclature oftheLatin
American Integration Association based ontheHarmonized Commodity Description andCoding System
(NALADISA).
Economic Complementarity Agreement No.14between theRepublic ofArgentina andtheFederative
Republic ofBrazil
Five Additional Protocols were signed in1992. Three ofthese referred totheMotor-Vehicle
Regime ineffect between thetwocountries, asfollows:WT/COMTD/7
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Ninth Additional Protocol (5March 1992)
This protocol widens thescope ofapplication oftheMotor-Vehicle Regime ineffect between
Argentina andBrazil, including "commercial orordinary tractors, andadapted orreinforced models".
Twelfth Additional Protocol (28December 1992)
Thetwelfth Additional Protocol includes several products onthe"Common ListofParts and
Components"; modifies Article 14oftheMotor-Vehicle Industry Regime relating tothedescription
oftheorigin ofproducts included inthatlist.
Thirteenth Additional Protocol (29December 1992)
Thequota granted toArgentina fortheexport of"passenger vehicles ofanyweight andengine
capacity, andmulti-purpose vehicles weighing upto1,500 kgs. ofliveweight, buses andtrucks" has
been increased, with effect from thedate ofsignature.
Complementarity Agreement ontheIron andSteel Sector
Eleventh Additional Protocol (21October 1992)
Under this Protocol, theGovernments ofArgentina and Brazil agreed toenter into a
Complementarity Agreement ontheIronandSteel Sector with certain main objectives. These include
theissuing ofguidelines forthemethodical integration oftheironandsteel industry, thedevelopment
anddiversification inthesupply ofironandsteel products onthemarkets ofthesignatory countries,
thepromotion ofaharmonized framework ofclear andpredictable rules toincrease investment and
trade,theencouragementofindustrialcomplementarityamongironandsteelenterprisesinbothcountries
and theenhancement oftheperformance ofsectoral enterprises together with their respective
governments.
Thescope ofapplication oftheSectoral Agreement ontheIron andSteel Industry includes
theproducts inChapters 72and73(Annex 1oftheAgreement) intheNALADISA entries.
Liberalization programme
Theoperative instruments formalized cover thefollowing:
- Products, originating inthesignatory countries, which arenotconsidered regularly
produced (Category I),listed inAnnex 3oftheAgreement: 100percentpercentage
preference;
- ironandsteel products forwhich thecapacity forregular production exists, butwhich,
forvarious reasons, have been imported from anyorigin during theyears 1988,1989
and1990 (Category II):100percentpercentage preference, applicable totheproducts
listed inAnnex 4oftheAgreement originating inthesignatory countries, with the
quotas setbytheAgreement;
- products forwhich installed productive capacity and regular production exists
(Category III),notincluded inCategories IandII.Alististobemade ofproducts,
originating ineachsignatory country, forwhose importation aliberalization programme
willbeestablished. Thenecessary harmonization offactors related tocompetitivenessWT/COMTD/7
Page 13
ofenterprises, including ongoing privatization andrestructuring plans, willbetaken
intoaccount;
- Subsectoral Agreements. During thetransition period leading uptotheestablishment
oftheCommon Market, asmentioned inAAP.CE 14,Article 1,subparagraph (a),
various specific conditions fortheintegration ofsubsectors may benegotiated.
TheIron andSteel Sector Agreement may conclude industrial complementarity agreements
among iron andsteel industries inthesignatory countries inorder forthem toderive economies of
scale, topromote specialization andtogenerate newinvestments, while taking intoconsideration the
natural anddynamic comparative advantages ofeach country, with theultimate goal ofachieving
increased complementarity andefficiency among theabove-mentioned industries. Harmonization of
theseIndustrialComplementarityAgreementslieswithinthecompetenceoftheCommonMarketGroup,
where appropriate.
Inaneffort tofacilitate theeffectiveness oftheabove-mentioned instruments, thesignatories
must undertake, atthevery least:
- Torefrain from making, orresuming thepayment ofsubsidies forinvestment inplants,
fortheproduction andtrade inironandsteel, except inaconsensual andharmonized
fashion, forthebenefit ofthesignatory countries, andinaccordance with international
obligations andongoing privatization programmes and/or restructuring;
- nottoimpose price controls orinfluence freetrade iniron andsteel products;
- toensure free access andequal conditions forsignatories totheimports andraw
materials fortheproduction ofiron andsteel inthesignatory countries;
- promote international competitiveness intheSector, without exceeding international
values ininputs andcosts ofhigh incidence intheproductive structure oftheSector;
- toactinunity toneutralize theeffects ofunfair trading bynon-signatory countries;
- tohasten thereduction inthenumber ofironandsteel items onthelistofexemptions
inAAP.CE No.14;
- toinform theother signatory country ofprogress made inongoing privatization and/or
restructuring programmes, andnottoallow unfair trading practices among signatory
countries;
- tocoordinate positions inregional andinternational economic andtrade forums; and
- tosupport andharmonize allaspects linked totheimprovement oftechnology inthe
enterprises ofthesignatory countries, such astechnical standardization, research and
technological innovation, policies onindustrial competitiveness, environmental policy,
among others.
Rules ofOrigin
Without prejudice totherules oforigin established under ACE/14, thespecific clause onorigin
intheIronandSteel Sector Agreement provides that"should beproduced from products under NALADI
(CCCN) heading 7306 smelted orprocessed into ingots inthesignatory countries". ItisworthWT/COMTD/7
Page 14
mentioning thatNALADI heading 7306 corresponds intheAssociation 'scurrent Nomenclature based
ontheHarmonizedSystem(NALADISA)toheadings7204.50.00,7206.10.00,7206.90.00,7207.11.00,
7207.12.00, 7207.19.00, 7207.20.00, 7218.10.00, 7218.90.00, 7224.10.00 and7224.90.00.
Administration oftheAgreement
ResponsibilityfortheadministrationoftheAgreementshallliewiththeCommonMarketGroup,
with thecollaboration ofaPermanent Working Group fortheiron andsteel industry (GTPS), who
shallhavethedutytorecommendguidelinesintheoperativeinstrumentsforintegrationdescribedearlier;
toadvise ontheevaluation andimplementation ofpolicies insofar asthey affect theiron andsteel
industry. They willalsorecommend atimetable forharmonization tofacilitate theestablishment of
theCommon Market; recommend measures forthecoordination oftheinterests ofthesector, for
theorchestration oftheAgreement anditsimprovement inorder toachieve greater harmony during
thetransitional period leading uptotheestablishment oftheCommon Market.
Period ofvalidity
TheSectoralAgreementontheIronandSteelIndustryshallhaveeffectfromthedateofsignature
until 31December 1994.
Seventh Additional Protocol (10February 1992)
Asof1January 1992, thisAdditional Protocol deepens preferences resulting from the
Agreement 'sautomatic tariff-cutting timetable, andapplies toawide range ofproducts.
Similarly,preferencesgrantedfortheimportationoftyresweremodified,andseveralconcessions
fortheimportation ofproducts covered bythefollowing sectors were incorporated intotheAgreement 's
liberalization programmes:
- Petrochemicals sector;
- chemicals sector;
- dyes andpigments sector;
- pharmaceutical andchemicals sector.
Under theregime established foreconomic complementarity inthe"Food processing sector",
thequota for"Malted barley kernels" wasincreased by100,000 tonnes.
TheregimeestablishedundertheAgreementforeconomiccomplementarityintheCapitalGoods
sector hasexpanded the"common list" ofproducts treated as"national product", thatis,zero-rated
imports, andtheremoval ofallnon-tariff restrictions.
Tenth Additional Protocol toACE/14 (3June 1992)
This Protocol deepens apreference granted byArgentina for"methyl alcohol" andincorporates
apreference granted byBrazil forthisproduct.
Economic Complementarity Agreement No.16between theGovernments ofArgentina andChile
Thefollowing three additional Protocols were signed in1992:WT/COMTD/7
Page 15
Second Additional Protocol (17June 1992)
This Protocol incorporates theDispute Settlement Regime intoEconomic Complementarity
Agreement No.16andsupersedes theprovisional version ofthisProtocol which hadbeen adopted.
Thescope ofapplication shall bedetermined bythedisputes arising intheinterpretation,
implementation ornon-application oftheprovisions ofEconomic Complementarity Agreement No.16
andagreements, protocols andother additional decisions orresolutions signed within theframework
oftheAgreement.
Any disputes aretoberesolved through direct negotiations, between thesignatory countries
(Chapter II),which may notexceed 30days from thedate ofthesubmission ofacomplaint byany
oneoftheparties.
Ifasolution hasnotbeen reached through direct negotiations, oneoftheparties may submit
thecase forconsideration bytheCouncil (Chapter III).
Ifthedispute cannot beresolved through theprocedures indicated inChapters IIandIII,the
parties may resort toanarbitration procedure (Chapter IV).
Incompliance withthearbitration procedure, signatory countries must fulfil various obligations,
themost important ofwhich aregiven below:
- Thesignatory country which decides toresort toarbitration must notify itsintention
inwriting totheother signatory, through itsnational coordinating body;
- thesignatory countries shall state thattheyrecognize asbinding, ipsofacto andwithout
theneed foraspecial agreement, thejurisdiction ofthearbitration tribunal established
ineach case tostudy andresolve disputes arising inrelation toAgreement No.16,
andundertake tocomply with itsdecisions;
- thearbitration proceedings willtakeplace before anadhoctribunal comprised ofthree
arbitrators selected from aroster offivemembers foreach signatory country. The
procedure will establish rules fortheappointment andselection ofthearbitration
tribunal, aswellastheobligation ofmember countries toinform thetribunal ofrequests
previously submitted toarbitration, with abrief statement onthefactual andlegal
grounds fortheir respective positions.
Article 19provides thatthearbitration tribunal shall hand down decisions ondisputes in
accordance withtheprovisions oftheEconomic Complementarity Agreement signed between Argentina
andChile, agreements, protocols andother supplementary provisions orresolutions signed, orwhich
may besigned, within theframework oftheAgreement, andalsoinkeeping with theprinciples and
provisions oftheapplicable international law.
Chapter Visoneofthemost important provisions anditanticipates aprocedure forclaims
byindividuals, which may bebrought before thenational coordinating body ifthecomplaining party
isconsidered tobeaffected bytheapplication ofmeasures having arestrictive ordiscriminatory effect,
inviolation oftheEconomic Complementarity Agreement andother provisions signed within thecontext
oftheAgreement.
TheCouncil willoversee theproper application oftheDispute Settlement Regime and, in
accordance with thedevelopment oftheEconomic Complementarity Agreement andtheneeds whichWT/COMTD/7
Page 16
mayarise inthecourse ofitsapplication, willreview itafter aperiod oftwoyears from thisResolution,
unless itisdeemed necessary torevise itearlier.
Thesecond Article establishes thattheProtocol willhave effect from thedate ofsignature.
Third Additional Protocol (8December 1992)
TheGovernments ofArgentina andChile signed theChile-Argentina Agreement regulating
theTraffic inAnimals, Birds andLivestock, concluded between theNational Service ofAnimal Health
(SENASA) ofArgentina andtheAgriculture andLivestock Service (SAG) ofChile, intheir capacity
astechnical bodies responsible fortheprotection andimprovement ofanimal health intheir respective
countries.
Fourth Additional Protocol (29December 1992)
This Protocol modifies Article 4ofEconomic Complementarity Agreement No.16relating
totheoperation ofpreferences included inAnnexes IandIIoftheAgreement andupdates theAdditional
Notes regulating theimportation ofproducts negotiated intheAgreement.
Economic Complementary Agreement No.17between theGovernments ofChile andMexico
First Additional Protocol (23July 1992)
InaccordancewiththeTransitionalProvisionsofEconomicComplementarityAgreementNo.17,
thisProtocol repeals thePartial-Scope Agreement forthe"Renegotiation ofconcessions granted during
theperiod 1962/1980" No.37andthereciprocal treatment agreed inTrade Agreements Nos. 5,16
and21under the1980 Treaty ofMontevideo.
Thesecond article provides thattheGeneral Secretariat should incorporate themost favourable
preferences granted bysignatory countries fortheimportation ofthenegotiated products inthe
Agreements inquestion intoAnnex 2ofAgreement No.17,under theprovisions ofArticle 5.
Economic Complementarity Agreement No.18between Argentina, Brazil, Paraguay andUruguay
(MERCOSUR)
First Additional Protocol (28February 1992)
Thefirstarticle stipulates thattheproducts under theNALADI (CCCN) items registered by
Argentina, Brazil, Paraguay andUruguay should beremoved from thelistsofproducts excluded from
thetariff-cutting timetable referred toinArticles 4and5ofEconomic Complementarity Agreement
No.18.
Article 2establishes that, asof1January 1992, products removed from thelistofexemptions
should beincorporated intothetariff-cutting timetable with a54-per-cent percentage preference.
Second Additional Protocol (17June 1992)
TheGovernments ofArgentina, Brazil, Paraguay andUruguay, incompliance with theRules
ofOrigin ofEconomic Complementarity Agreement No.18,Chapter II,(Declaration, certification
andverification, Article 12),signed anAdditional Protocol ontheestablishment ofaharmonized regime
ofprocedures andadministrative sanctions forcases offalsification ofcertificates oforigin.WT/COMTD/7
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Economic Complementarity Agreement No.19between Argentina andBolivia
On28April 1992, theGovernments ofArgentina and Bolivia signed aProtocol to
Complementarity Agreement No.19concluded on13December 1989.
Objectives oftheAgreement
Pursuant toArticle 1,theAgreement seeks to:
(a) Strengthen economic andtrade relations between thesignatory countries;
(b) stimulate integration, economic cooperation and, inparticular, industrial
complementarity;
(c) encourage, energize anddiversify trading trends, particularly ofindustrial goods, and
thedevelopment ofservices;
(d) promote investment intheindustrial sectors, forthebenefit oftherespective markets
andthird countries;
(e) facilitate thecreation andoperation ofbinational enterprises;
(f) create theappropriate conditions fortheachievement ofdynamic equilibrium, inboth
quantitative andqualitative terms, ininternational trade between thetwosignatories.
Liberalization programme
Theliberalization programme willbeimplemented through thefollowing instruments:
- Transactions carried outunder percentage preferences negotiated between thesignatory
countries (Annexes IandIIoftheAgreement);
- transactions carried outthrough industrial complementarity projects.
Inthecase oftaxes, feesandother internal charges, products originating intheterritory of
asignatory country shall receive nolessfavourable treatment intheterritory oftheother signatory
countries than thetreatment those countries apply tosimilar national products.
InAnnexes IandII,theAgreement listspercentage preferences andother agreed conditions
fortheimportation ofnegotiated products, originating inandcoming from theterritories ofsignatories
classified according totheNomenclature oftheAssociation.
Trade restrictions
Thesignatory countries undertake nottoapply non-tariff restrictions totrade ingoods covered
bytheagreed liberalization programme, andthey stipulate thatinthecase oflegal oradministrative
rules requiring licences, import permits orthelike, these shall begranted andissued within amaximum
period oftwenty (20) working days, running from thedate theapplication foranimport licence is
submitted.WT/COMTD/7
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Industrial complementarity
Thesignatory countries agreed tostimulate mutual industrial complementarity between public
and/or private enterprises with aview toachieving thefullest useofproductive resources, toderive
thebenefits ofimproved economies ofscale, increase bilateral trade andtofacilitate theexport ofgoods
produced with components from themember countries tothird markets.
Tothisend, thesectors most disposed toindustrial complementarity willbedetermined by
common agreement, andpriority willbegiven tosectors implying optimal useoftheproductive and
technological resources oftheparties.
Under theagreement, industrial complementarity will becarried outmainly through the
implementation ofprojects arising outofagreements between enterprises inthesignatory countries
which willbeevaluated bythecompetent technical bodies inthose countries.
ASpecial Commission willbeestablished tostudy industrial complementarity projects. Among
themain powers ofthisCommission willbethatoftaking thenecessary steps with theenterprises
participating intheprojects with aview toreconciling thepublic andprivate interests ofthesignatory
countries, aswell assupervising theimplementation oftheprojects approved.
Itisworth mentioning thatthesignatory countries willgrant percentage preference ofupto
onehundred (100) percentonimport duties, tothird countries forendproducts, intermediate inputs
andparts traded intheimplementation ofapproved industrial complementarity projects.
Forthepurposeofcalculatingthelocalcontentofproducts,goodsimportedfromothersignatory
countries willbeconsidered national.
Benefits granted through industrial complementarity projects shall alsobeextended only to
those enterprises participating intheprojects, andshall beapplied under theconditions established
ineach agreed project.
Rules ofOrigin
Thebenefits derived from theAgreement areapplied exclusively toproducts considered as
originating intheterritory ofthemember countries, inaccordance with theprovisions oftheLAIA
General Regime ofOrigin established inCommittee ofRepresentatives Resolution 78.
Safeguard clauses
Safeguard clauses may beapplied, inaccordance with Committee ofRepresentatives
Resolution 70ontheGeneral Regime ofSafeguards.
Consultation regime
InArticle 7,theAgreement states thatifproblems emerge inreciprocal trade, asaconsequence
ofmeasures adopted bythesignatory countries, consultations may beinitiated attherequest ofthe
complaining country, with aview toresolving thesituation. These consultations must beconcluded
within amaximum period oftwenty (20)working days, running from thesubmission oftherequest
bythecountry affected.WT/COMTD/7
Page 19
Economic cooperation
Article 18provides thateconomic cooperation activities between thesignatory countries shall
bepromoted, taking intoaccount therespective plans andpolicies ofnational andsectoral development
andobjectives andprogrammes fortheprocess ofregional integration, aswell asthepossibilities for
existing complementarity, bearing inmind thediffering levels ofeconomic development.
Article 20establishes thatthesignatory countries shall foster theadoption ofmeasures favouring
coordinationandcomplementarityintheirindustrialactivities,andstimulateinvestmentsandthecreation
ofjoint enterprises inorder tosatisfy domestic andexternal demand.
Tothisend, totheextent possible andwithin theframework ofjoint participation, theparties
willencourage investments aimed atstimulating complementarity inthepublic sector, with aview
toimproving theproductive infrastructure, aswell asintheprivate sector, inorder toencourage
operations based onthefullest possible useofproductive factors andtechnological resources insignatory
countries.
Thesignatory countries agreed topromote thestrengthening ofmutual communications asfar
aspossible, especially inthetransport ofgoods, inaneffort tofacilitate trade andtoconsolidate the
process ofintegration among theparties.
Period ofvalidity, duration anddenunciation
Economic Complementarity Agreement No.19willenter intoforce onthedateofitssignature
andhave anindefinite duration. Likewise, asignatory country maywithdraw from itbycommunicating
itsdecision totheother party 90days before depositing thecorresponding instrument ofdenunciation
with theLAIA General Secretariat. Allrights andobligations under theAgreement shall cease for
thedenouncing country, buttreatment granted toagreed products willremain inforce foraperiod
ofoneyear, unless, otherwise agreed bythesignatories.
Protocol ofAdjustment ofEconomic Complementarity Agreement No.19signed on14December 1992
This Protocol records thetransposition ofthepreferences granted inthisAgreement tothe
LAIA Nomenclature based ontheHarmonized Commodity Description and Coding System
(NALADISA).
Economic Complementarity Agreement No.20between Argentina andVenezuela
TheGovernments ofArgentina andVenezuela, recalling their decision todevelop andfulfil
international obligations entered intobythesignatory countries under theGeneral Agreement onTariffs
andTrade (GATT), theLatin American Integration Association (LAIA); andtheTreaty ofIntegration,
CooperationandDevelopmentwithBrazilandtheTreatyofAsunciónestablishingtheSouthernCommon
Market (MERCOSUR), onthepartofArgentina, andtheCartagena Agreement establishing theAndean
Group, onthepartofVenezuela, agreed tosign Economic Complementarity Agreement No.20on
6October 1992. Itsmain objectives areto:
(a) Facilitate, expand, diversify andliberalize trade between thesignatory countries;
(b) promote reciprocal investment andencourage entrepreneurial initiative;WT/COMTD/7
Page 20
(c) facilitate alltransactions related totrade andreciprocal investment orjoint transactions
which may bedevised tooperate inthird markets, bytheelimination ofobstacles to
transport, financial flows andother services linked tosuch activities;
(d) facilitate thedevelopment ofprojects ofcommon interest inthefield ofeconomic
complementarity inallitsaspects, such asthose related toindustry, mining and
infrastructure;
(e) aimtoensure thatbilateral tradeflows areestablished onabalanced andharmonious
foundation, while attempting toeliminate irregularities through activities thatpromote
expansion anddynamic adjustment oftrade;
(f) contribute,withintheframeworkoftheirrespectivesubregionalstructuresofintegration,
tostrengthenconvergenceactivitieswhichmaybeagreedonintheprocessesmentioned.
Liberalization programme
Asof1October 1992, theAgreement willincorporate products negotiated bythesignatory
countries intotheLAIA framework, which areincluded inEconomic Complementarity Agreement
No.10andTrading Agreements Nos. 5,13and18.
The incorporation ofthese products shall take place with dueconsideration forexisting
preferences andtreatments intheagreements mentioned.
Annexes IandIIoftheAgreement lists theconcessions granted bysignatory countries for
theimportation ofagreed products.
Thetariff preferences remain ineffect until 31December 1994.
Trade restrictions
The signatory countries have agreed tothegradual andbalanced dismantling ofexisting
restrictions onforeign trade andtheadoption ofregimes aimed ateliminating alllegal oradministrative
rules preventing orimpairing access tomarkets through prohibitions, licences, import permits and
anyother obstacles tofreetrade incompatible with therules oftheGeneral Agreement onTariff and
Trade (GATT).
Annexes IandIIcontain Additional Notes identifying existing restrictions. TheCouncil for
Economic Complementarity provided forinArticle 18oftheAgreement shall recommend themeasures
necessary toenable thegradual dismantling ofthese measures. Similarly, thesignatory countries
undertake nottointroduce new restrictions onreciprocal trade.
Rules ofOrigin
Thebenefits oftheagreed preferences between theparties fortheimportation ofagreed products
shall beregulated bytheGeneral Rules ofOrigin adopted inLAIA Committee ofRepresentatives
Resolution 78.This regime may besupplemented bytheadoption ofspecific rules oforigin which
willprevail over therules ofgeneral scope.WT/COMTD/7
Page 21
Safeguard clauses
The signatory countries have approved theOriginal Regime onSafeguards adopted in
Resolution 70oftheLAIA Committee ofRepresentatives.
Dispute settlement
Disputes arising intheimplementation ofthisAgreement aretoberesolved through direct
negotiations between thesignatory countries.
Ifasolution isnotreached within aperiod of30days from thenotification ofthedispute,
thisterm may beextended, bymutual agreement, andthesignatory countries willsubmit thedispute
forconsideration bytheCouncil, asprovided inArticle 18,which, after assessing thesituation, will
formulate relevant recommendations fortheresolution ofthedispute within aperiod of60days. To
thisend, theCouncil may establish orconvene panels ofexperts orgroups ofexperienced persons
toactastechnical advisors.
TheCouncil willalsoapprove adefinitive regime fordispute settlements within sixmonths
ofitsestablishment.
Unfair trading practices
If,during thecourse ofreciprocal trade, situations ofdumping orunfair practices derived from
thepayment ofexport subsidies arise, thecountry affected may apply measures determined byits
domestic legislation.
Tothisend,countries mayimpose countervailing andanti-dumping duties, asprovided intheir
respective domestic legislation, upon proof ofinjury tothedomestic industry orthreat thereof ormaterial
retardation ofsuch industry.
Innoinstance shall theabove-mentioned duties exceed themargin ofdumping ortheamount
ofthecorresponding subsidy; itshall belimited asfaraspossible totheamount necessary toavoid
theinjury, threat ofinjury orretardation.
Thesignatory countries willadopt their decisions taking intoaccount their status ascontracting
partiestotheGeneralAgreementonTariffsandTrade(GATT),andadopt,asareference,theAgreement
onImplementationofArticleVIoftheGeneralAgreementonTariffsandTrade(GATT),(Anti-Dumping
Code) andtheAgreement onInterpretation andApplication ofArticles VI,XVIandXXIII oftheGeneral
Agreement onTariffs andTrade (GATT).
Trade cooperation
Thesignatory countries willsetuptrade promotion andinformation programmes, facilitating
official andprivate trade missions, organization oftrade fairs andexhibitions, arrangement ofseminars,
market research andother activities aimed atimproved utilization ofpreferences within theliberalization
programme andtheopportunities presented bytheagreed trade procedures.
Incarrying outtheabove-mentioned tasks, theparties willplanactivities tofacilitate reciprocal
promotion bypublic andprivate entities intherespective countries ofproducts contained inthe
Agreement 'strade programme.WT/COMTD/7
Page 22
Technology
Thetwocountries undertake toassist andsponsor joint initiatives aimed atstrengthening the
technological capacity oftheir productive sectors with aview toincreasing their competitiveness and
export potential.
Privatesectorparticipationininnovativeprocessesfavouringlinksbetweenresearchandindustry
willbeparticularly encouraged.
Likewise, both parties willexchange information ontheir experience inthedevelopment of
new technologies applied toproduction.
Transport
Thesignatory countries will, within theframework ofexisting bilateral agreements onair
transport, encourage further cooperation soastoensure efficient service between their territories.
Similarly, theparties agree toestablish mechanisms tofacilitate anddevelop theoperation ofregular
andnon-regular services forpassengers andcargo, with aview tostrengthening tourism andtrade
between thetwocountries.
Thesignatories alsoundertake toestablish mechanisms tofacilitate anddevelop thebilateral
maritime transport services required toincrease trade between thecountries.
Similarly,inaccordancewithexistinglegislation,freeaccesswillbeaccordedtocargooriginating
in,andintended fortransport byseabetween thecountries.
Agreementsbetweenshippingcompaniesinbothcountrieswillbeencouragedinordertoincrease
bilateral maritime transport.
Technical standardization
Thesignatories willsignspecific Agreements andProtocols forthetechnical andadministrative
facilitation ofreciprocal trade toensure thattheapplication ofrequirements relating toquality, food
safety, plant andanimal health does notcreate obstacles totrade.
Government procurement
Thesignatories willnegotiate aprogramme aimed atdeveloping amethodology forgradual
harmonizationofgovernmentprocurementpolicies,underconditionsofreciprocityandnon-discrimination
between suppliers inboth countries.
Administration oftheAgreement
Thesignatories have agreed tocreate aCouncil forEconomic Complementarity (theCouncil)
comprised ofgovernment representatives from both countries.
This Council willsetuptheWorking Groups itdeems necessary forthedischarge ofitsduties.
Harmonization with Subregional Agreements
According toArticle 24,thesignatory countries agree thattheimplementation oftheAgreement
shall becompatible with theobligations undertaken byVenezuela under theCartagena Agreement,WT/COMTD/7
Page 23
andbyArgentina, within theframework oftheTreaty ofIntegration, Cooperation andDevelopment
with Brazil andtheTreaty ofAsunción establishing theSouthern Common Market (MERCOSUR).
Evaluation oftheAgreement
Attherequest ofeither party, theCouncil will periodically evaluate theprovisions and
preferences granted intheAgreement forthepurpose ofachieving harmonious andbalanced progress
towards integration andgenerating equitable benefits forboth thecountries.
Period ofvalidity andduration
TheAgreement willhave anindefinite duration andwillenter intoforce forthesignatories
simultaneously. Itwilltherefore have effect only from thedate onwhich both Governments have
incorporated itintotheir domestic law, inaccordance with their respective national legislation.
Denunciation
Acountry may denounce theAgreement bycommunicating itsdecision totheother parties
180days before itdeposits theinstrument ofdenunciation with theLAIA General Secretariat.
Therights andobligations under theAgreement willautomatically cease forthedenouncing
country atthetime offormal denunciation.
Lapsed agreements
The signature ofthisnew Agreement revokes thePartial-Scope Agreement ofEconomic
Complementarity No.10signed byArgentina andVenezuela on2May 1988, aswell aspreferences
granted reciprocally inTrade Agreements Nos. 5,13and18fortheChemicals, Phonographic and
Photographic Sectors, respectively.
2.3 Other types ofagreements (Annex 3)
2.3.1 AgreementssignedunderArticle13ofthe1980TreatyofMontevideo(TradePromotion
Agreements)
Trade Promotion Agreement between Argentina and Paraguay forthesupply ofgas, signed
31January 1992 (LAIA/AAP.PC/1)
On31January 1992, theGovernments ofArgentina andUruguay, inaccordance with the1980
Treaty ofMontevideo, signed apartial-scope agreement forthesupply ofArgentina natural gasto
Uruguay through oneormore gaslines. This Agreement willbeimplemented with riskcapital without
expenditures orbacking from theStates Parties.
TheGovernment ofArgentina hasguaranteed thatthere willbenoform ofrestrictions onthe
export ofnatural gastoUruguay.
Thecountrieshavealsoagreedtorespectgasprocurementandtransportcontractssignedbetween
enterprises inboth countries, aswell astogrant, intheir respective jurisdictions, concessions or
authorizations fortheconstruction ofoneormore gaspipelines according tothelegislative framework
inforce ineach country.WT/COMTD/7
Page 24
TheAgreement entered intoforce onthedateofitssignature, 31January 1992, andwillhave
anindefinite duration. Itcanbedenounced only after 30years from thedateofitsentry intoforce,
through written communication totheother party.
Trade Promotion Agreement between Bolivia andBrazil forthesupply ofnatural gas, signed on
17August 1992 (LAIA/AAP.PC/2)
On31August1992theGovernmentsofBoliviaandBrazil,underthe1980TreatyofMontevideo,
signed apartial-scope agreement toestablish theterms fortheexport, trade andtransport ofnatural
gasproduced inBolivia toBrazil.
TheGovernment ofBolivia undertakes nottoapply export restrictions, andsimilarly, Brazil
undertakes nottoapply import restrictions, uptotheagreed maximum volumes.
Ithasalsobeen established thatnatural gassales shall beexempt from import duties andexport
taxes oranyother form ofnon-tariff restriction.
Thecountrieshavealsoagreedtorespectgasprocurementandtransportcontractssignedbetween
operators inboth countries, andtogrant, intheir respective jurisdictions, concessions orauthorizations
fortheconstruction oroperation ofgaspipelines andforthetransport ofgas.
Theagreement entered intoforce onthedateofitssignature, 17August 1992, andwillhave
anindefinite duration. Itcanbedenounced only after 35years running from thedateofitsentry into
force, bymeans ofawritten communication totheLAIA General Secretariat.
Trade Promotion Agreement between Argentina andBolivia forthesupply ofnatural gas, signed
29September 1992 (LAIA/AAP.PC/3)
On29September 1992 theGovernments ofArgentina andBolivia, under the1980 Treaty of
Montevideo, signed apartial-scope agreement fortheestablishment ofterms forthesupply ofnatural
gasfrom Bolivia toArgentina, adapting them, intheshort term, totheprocess ofderegulation in
Argentina 'senergy market. From thesigning oftheAgreement, transactions relating togassupply
were tobeadjusted according tomarket conditions.
Acting through GasdelEstado oranyother relevant body, Argentina willbuyBolivian natural
gasfrom 1May 1992 tothe31December 1993, insimilar volumes andquality asthatwhich isstated
intheexisting contract, attheprice ofUS$1 permillion BTU, plus aspecial payment.
Argentina willmake thespecial payment ofUS$110 million, inmonthly instalments, which
willberemitted toBolivia fortheconstruction ofbinational integration works onBolivian territory.
During thissame period, Bolivia willallow access toitsdomestic market forpetroleum and
petroleum-based products ofArgentinean origin under specific conditions asestablished inArticle 5
oftheAgreement.
From 1January 1994 to30April 2002, Argentina grants freeandunrestricted access ofBolivian
natural gastothedomestic Argentinean market, guaranteeing thatBolivian gaswillreceive similar
treatment togasproduced inArgentina.
Bolivia willgrant Argentina freeandunrestricted access ofpetroleum andpetroleum-based
products ofArgentinean origin totheBolivian domestic market.WT/COMTD/7
Page 25
TheAgreement willrunfrom 1May 1992 andwillbeofindefinite duration.
2.3.2 Agreements signed under Article 14ofthe1980 Treaty ofMontevideo
River Transport Agreement fortheParaguay-Paraná Waterway, between Argentina, Bolivia, Brazil,
Paraguay andUruguay, signed on26June 1992 (LAIA/AAP/A 14TM/5)
On26June 1992, theMinisters ofForeign Affairs ofArgentina, Bolivia, Brazil, Paraguay
andUruguay, under the1980 Treaty ofMontevideo, signed theRiver Transport Agreement onthe
Paraguay-Paraná Waterway (Puerto deCáceres-Puerto deNueva Palmira), atValle deLasLeñas,
Mendoza Province, Argentina.
The Agreement isaimed atestablishing aharmonized system ofriver transport which is
considered fundamental forthedevelopment andexpansion ofproduction andtrade inthefivesignatory
countries. Inthiscontext, theParaguay-Paraná Waterway, inaddition torepresenting oneofthemost
important physical integration projects oftheregion, provides broad prospects foreconomic andsocial
development toavastzone ofinfluence intheriparian countries.
Object andscope oftheAgreement
TheAgreementseekstofacilitatenavigation,tradeandgoodstransportalongtheParaguay-Paraná
Waterway (Puerto deCáceres-Puerto deNueva Palmira), through theestablishment ofacommon
framework ofrules forthedevelopment, modernization andupgrading ofsuch operations, soasto
permit access toforeign markets under competitive conditions.
TheWaterway comprises theParaguay andParaná rivers, including thevarious branches of
theParaná, from Cáceres inBrazil toNueva Palmira inUruguay, andtheTamengo Canal, tributary
oftheRíoParaguay, shared byBolivia andBrazil.
Theprovisions oftheAgreement apply tonavigation, trade andtransport ofgoods andpersons
using theWaterway, except forthepassage ofwarships andother vessels involved inactivities unrelated
totrade.
Freedom ofnavigation, equal treatment andfreedom oftransit
Thesignatory countries reciprocally recognize freedom ofnavigation ofvessels under their
respective flags, aswell asthepassage ofvessels flying theflags ofthird countries, throughout the
Waterway.
TheAgreement guarantees freedom oftransit along theWaterway ofthevessels, goods and
persons, coming from anyofthecountries ortravelling toanyofthem, including third countries.
Likewise, itensures equality oftreatment with regard tolevies, tariffs, fees, charges, duties andothers,
without anydiscrimination whatsoever against vessels flying foreign flags.
Reservation ofregional andnational cargo
Thetransport ofgoods andpersons between thesignatory countries originating andending
inlocal ports along theWaterway, aswell astheduties, treatments andconditions established under
theAgreement isreserved forship owners ofthesignatory countries.
Theexercise oftheright tothereservation ofnational cargo, willbecarried outmultilaterally
anditsintroduction willbebased ontheprinciple ofreciprocity.WT/COMTD/7
Page 26
When theAgreement enters intoforce, existing restrictions onthetransport ofspecified goods
orpersons reserved entirely orpartially forvessels sailing under thenational flagofthecountry of
destination oroforigin, shall beeliminated infavour ofvessels flying theflagofmember countries
oftheWaterway.
National cabotage transport isreserved forvessels oftherespective countries andwillnotfall
within thescope oftheAgreement anditsProtocol.
Waterway ship-owner
ForthepurposeoftheAgreement,"Waterwayship-owner"referstoship-ownersofthesignatory
countries recognized assuch bytheir respective laws.
Bodies oftheAgreement
Thebodies oftheAgreement are:
(a) TheIntergovernmental Waterway Committee (CIH), abody under theTreaty ofthe
River Plate Basin, which isthepolitical organ;
(b) theCommission oftheAgreement, which isthetechnical body.
Entry intoforce andduration
TheAgreement anditsadditional protocols shall enter intoforce 30days after thedateonwhich
theLAIA General Secretariat notifies thesignatory countries ofthereceipt ofthefinal notification
onthefulfilment oftheinternal legal provisions fortheentry intoforce andwillhave aduration of
10years.
Accession
TheAgreement willremain open foraccession, upon negotiation, byLAIA Member countries
wishing toparticipate inallaspects oftheParaguay-Paraná Waterway Programme.
Denunciation
Any signatory totheAgreement may denounce itasfrom fouryears after itsentry intoforce.
Tothisend, itshall notify itsdecision 60days inadvance, anddeposit theinstrument inquestion with
theLAIA General Secretariat, which shall inform theother signatories ofthedenunciation.
Supplementary protocols
Inaddition totheprinciples andprovisions listed above, thesignatories totheAgreement have
signed specific additional protocols on:customs matters; navigation andsafety; insurance; equality
ofopportunity forgreater competitiveness; dispute settlement andprovisional suspension offlags.
Allthese protocols establish common rules togovern transport andtrade onthewaterway.
Partial-Scope Agreement forCooperation andTrade inGoods Used forEnvironmental Conservation
andProtection, between Argentina andBrazil, signed on27June 1992 (ALADI/AAP/A14TM/6)
Inthefirm belief thatthesolution ofmany environmental problems depends ontheintegration
process andthattheobjectives ofthatprocess cannot befulfilled without tackling environmental issues,WT/COMTD/7
Page 27
andtaking intoaccount thatinthisfield the1980 Treaty ofMontevideo provides forthepossibility
ofconcluding agreements between countries oftheregion, theGovernments ofArgentina andBrazil
on27June 1992 signed aPartial-Scope Agreement forcooperation andtrade ingoods used for
environmental conservation andprotection.
Object oftheAgreement
The object oftheAgreement istoencourage thesignatories totake specific steps for
environmental conservation andprotection, promote intraregional trade ingoods used forthispurpose,
andfacilitate thetemporary admission ofgoods andpersons inemergency situations.
Trade ingoods
TheAgreement provides fortotal exemption from duties andnon-tariff restrictions applied
bythesignatories toimports ofequipment, materials andproducts, including parts andcomponents,
used tomeasure, detect andcombat environmental pollution, whether intheair,rivers, lakes, seas
orelsewhere;protectionoftheexistingwildlifefloraandfaunaandtheirenvironmentsintheirrespective
countries; aswell asforreforestation, irrigation, alternative energy sources andother exclusively
environmental purposes covered bytheAgreement.
Rules ofOrigin
Thebenefits stemming from theapplication oftheAgreement willexclusively concern products
considered asoriginating intheterritory ofitssignatories inaccordance with thegeneral regime of
origin adopted bytheAssociation anditsregulations.
Temporary admission ofpersons andgoods
Thesignatories undertake tofacilitate, inemergencies:
(a) Themovement andtemporary stayofpersons entering their respective territories in
order toparticipate injoint activities undertaken todefend and safeguard the
environmental assets covered bythisAgreement; and
(b) thetemporary admission into their respective territories, aswell asthedeparture
therefrom, ofaircraft, ships andother vehicles andtheir operators andequipment and
objects, instruments, machinery andanyother elements entering ordeparting inorder
tofulfil joint activities undertaken toprotect andsafeguard environmental assets.
Administration oftheAgreement
TheAgreementwillbeadministeredbyaCommissioncomprisingthepermanentrepresentatives
ofthesignatories toLAIA, which willberesponsible inter aliafordetermining thenature, useor
destination oftheproduct orproducts falling within thescope ofthisAgreement.
Other provisions (accession, withdrawal, entry intoeffect andduration)
TheAgreement willbeopen foraccession, through negotiation, totheother member countries
oftheAssociation.WT/COMTD/7
Page 28
Asignatory country wishing todenounce theAgreement shall soinform theother signatory
countries 90days inadvance ofdepositing thecorresponding instrument ofwithdrawal withtheGeneral
Secretariat.
TheAgreement provides forentry intoforce on27June 1992, with aduration offiveyears
from thatdate, extendable forsimilar consecutive periods, provided none ofthesignatories opposes
doing sowith advance notice of90days from anyexpiry date.
Partial-Scope Agreement fortheFormation oftheLatin American Common Market forBooks, between
Brazil andUruguay, signed on30December 1992 (ALADI/AAP/A14TM/7)
Inthecontext ofthe1980 Treaty ofMontevideo, on30December 1992 theGovernments of
Brazil andUruguay signed aPartial-Scope Agreement fortheFormation oftheLatin American Common
Market forBooks.
Asstated initspreamble, thepremise fortheAgreement isthattheintegration process includes
various spheres -economic, social, cultural andscientific -which must evolve inajoint andarticulated
manner. Thecultural dimension ofintegration isessential, asabetter reciprocal understanding of
thevalues, customs, skills andcultures ofthepeoples oftheregion isfundamental iftheprocess is
tobefully successful.
Object oftheAgreement
Theobject oftheAgreement istocreate theLatin American Common Market forBooks, in
order toenhance levels ofeducation, training, information andreciprocal understanding concerning
thedifferent cultures ofthepeoples oftheregion.
Free movement ofbooks
TheAgreement provides forfullexemption from duties andnon-tariff restrictions onimports
ofbooks, booklets andmagazines ofaliterary, scientific, artistic, technical andeducational nature
published orprinted inBrazil orUruguay, andalso covers albums, stamp books, drawing books,
manuscript orprinted music andcartographical works.
Such products originating inasignatory country shall enjoy intheterritory oftheother
signatories treatment nolessfavourable, interms ofinternal taxes andother charges, thanthataccorded
tothelikedomestic products.
Books, booklets andmagazines ofnational authors ofasignatory country thatarecovered by
thisAgreement willenjoy intheother signatory countries thesame copyright protection astheygrant
tobooks, booklets andmagazines ofnational authors intheir own territories.
Rules ofOrigin
Thegoods covered bytheAgreement willbeconsidered asoriginating inthesignatory countries
inthecase ofbooks, booklets andmagazines written bynational authors ofthesignatory countries
orbyforeign authors provided thework isinthepublic domain, isprinted andpublished intheterritory
ofanyofthesignatory countries, andfulfils thespecified requirements.WT/COMTD/7
Page 29
Other provisions (accession, administration oftheAgreement, entry intoforce andduration)
TheAgreement isopen toaccession, through negotiation, bytheother member countries of
theLatin American Integration Association andLatin American countries thatarenotmembers ofthe
LAIA.
TheAgreement willbeadministered bythePermanent Representatives ofthesignatories to
theAssociationandtherepresentativesdesignatedbytheGovernmentsofnon-LAIAmembersignatories,
who willensure thatitsprovisions areproperly implemented andrecommend totheir Governments
whatever measures theyconsider necessary toimprove andexpand theLatin American Common Market
forBooks.
TheAgreement willenter intoforce on30December 1992 foranindefinite duration.
Agreement onUnified Basic Regulations Governing Road Traffic between Argentina, Bolivia, Brazil,
Chile, Paraguay, Peru andUruguay, signed on20September 1992
TheGovernments ofArgentina, Bolivia, Brazil, Chile, Paraguay, Peru andUruguay, conscious
oftheneed toencourage theintegration andsafety ofinternational road traffic andconsidering that
uniform rules intheir respective countries willcontribute tothisend, agreed tosign, intheframework
ofthe1980 Treaty ofMontevideo, anAgreement onUnified Basic Regulations Governing Road Traffic,
which wassigned on29September 1992.
Therules established bytheAgreement constitute aminimum uniform regulatory framework
forinternational vehicle traffic intheterritory ofthesignatory countries. Theprovisions cover inter
aliadefinitions, general rules oftheroad, conditions ofvehicles, driving licences, road signs, accidents
andcompulsory insurance.
TheAgreement willcome intoforce 30days following thedateatwhich theLAIA General
Secretariat informs thesignatories thatithasreceived atleast fournotifications from signatory countries
relating tothefulfilment ineach country oftheinternal legal formalities required fortheAgreement
toenter intoforce, including administrative arrangements.
TheAgreement willhave aduration offiveyears, automatically extendable forsimilar periods,
unless asignatory country decides otherwise, inwhich casetheAgreement willhave toberenegotiated.
TheAgreementisopenforaccession,throughnegotiation,bytheotherLAIAmembercountries.
2.4 Partial-Scope Agreements on"Renegotiation ofConcessions Granted during theperiod
1962/1980" (Annex 4)
Bymeans ofvarious additional protocols tothePartial-Scope Agreements on"Renegotiation",
in1992 thecountries introduced various modifications, primarily concerning theextension oftheir
preferences.
Thus, modifications were made tothefollowing Agreements:
Agreement No.10-Brazil/Colombia
TheEighth Protocol/Revision 3,signed on14February 1992, suspends foroneyear asfrom
thedateofsigning oftheSecond Additional Protocol (14October 1991) thespecific requirement of
origin fortheimportation oftheproduct "malted grain barley, including brewer 'sbarley".WT/COMTD/7
Page 30
Revision4,signedon29September1992,extendsforoneyearthesuspensionoftherequirement
oforigin fortheabove-mentioned product.
Agreement No.11-Brazil/Ecuador
TheProtocol recording theadjustment ofthepreferences granted under thisAgreement tothe
LAIANomenclaturebasedontheHarmonizedCommodityDescriptionandCodingSystem(NALADISA)
wassigned on13October 1992.
Agreement No.28-Chile/Peru
TheNinth Additional Protocol, signed on29December 1992, extends thevalidity ofthe
preferences included intheSeventh Additional Protocol until 31December 1994.
Agreement No.29-Ecuador/Mexico
TheSeventh Additional Protocol signed on2December 1992 extends theAgreement until
31December 1994.
Agreement No.35-Brazil/Uruguay
TheThirdAdditionalProtocol,signedin1992,establishesthatthepreferencesnegotiatedwithout
aperiod ofvalidity willremain inforce foroneyearasfrom 5April 1992 andunless expressly otherwise
decided bythesignatory governments bymutual agreement willlapse on5April 1993.
2.5 Regional agreements (Annex 5)
Regional Agreement onCultural, Educational andScientific Cooperation andExchange (ALADI/AR7)
With theaccession ofBolivia totheAgreement onCultural, Educational andScientific
CooperationandExchange,carriedoutbyAdditionalProtocolof27April1992,allthemembercountries
oftheAssociation hadbecome participants intheAgreement, which thusbecame aRegional Agreement.
2.6 Agreements concluded withnon-LAIA Latin American countries (Article 25ofthe1980 Treaty
ofMontevideo) (Annex 6)
In1992, only onenew agreement wasconcluded under Article 25ofthe1980 Treaty of
Montevideo. Theagreement inquestion between Venezuela andthemember States oftheCaribbean
Community (CARICOM), wassigned on13October 1992.
Trade andInvestment Agreement between theGovernment ofVenezuela andtheCaribbean Community
(CARICOM) (ALADI/AAP/A25TM/24)
Objectives
Thefundamental objective ofthisAgreement istoestablish closer economic andtrade relations
between theparties through:
(a) Thepromotion andexpansion ofsales ofgoods originating intheCaribbean community
(CARICOM), through, inter alia,unilateral duty-free access totheVenezuelan market;WT/COMTD/7
Page 31
(b) thepromotion ofinvestments aimed attaking advantage oftheparties 'markets and
strengthening their competitiveness ininternational trade;
(c) thecreation andoperation ofjoint regional enterprises; and
(d) theencouragement ofmechanisms forthepromotion andprotection ofinvestments
made bynationals oftheparties.
Administration oftheAgreement
TheVenezuela/CARICOMJointTradeandInvestmentCouncilestablishedunderthe"Principles
foraMultilateral Agreement between Venezuela andtheCaribbean Community" willberesponsible
foradministering theAgreement.
Liberalization programme
Venezuela grants toproducts originating inCARICOM member States freeaccess toitsmarket
through theelimination ofnon-tariff barriers andtheimplementation ofatariff-cutting programme
asfollows:
Alistofproducts recorded inAnnex IoftheAgreement receive immediate duty-free market
access; aphased reduction intariffs byfour equal annual steps begins on1January 1993 sothatby
1January 1996 duty-free treatment willbeapplied tothegoods identified inAnnex IIoftheAgreement;
andproducts listed inAnnex IIIwillreceive most-favoured-nation treatment.
Under itscustoms tariff CARICOM willgrant most-favoured-nation treatment toallimports
from Venezuela andalso undertakes torefrain from applying non-tariff barriers, without prior
consultation between theparties, other than those inforce orauthorized bytheTreaty Establishing
theCaribbean Community.
Rules ofOrigin
Therules oforigin tobeapplied areestablished inAnnex IVoftheAgreement.
Safeguard clauses
Venezuela willapply transitional safeguards when products originating inanyoftheCARICOM
member States arebeing imported insuch increased quantities astocause serious injury tothedomestic
industry thatproduces likeordirectly competitive goods, orwhere necessary toredress imbalances
inthebalance ofpayments ortosafeguard itsexternal financial position.
TheAgreement establishes thetypes ofmeasure Venezuela may adopt ineach ofthese cases,
subject toprior notification oftheJoint Council andparties having asubstantial exporting interest in
theproduct concerned.
Thesafeguard measures willbeapplied only foraslong asisnecessary torepair theserious
injury. They may beinforce foruptooneyear.
Dispute settlement
TheJoint Council isthebody responsible forsettling anydisputes thatmay arise, forwhich
purpose itwilllaydown theguidelines andmechanisms within sixmonths oftheentry intoforce ofWT/COMTD/7
Page 32
theAgreement. These mechanisms may include negotiation, investigation, mediation, conciliation
andarbitration.
Denunciation
Signatory countries maydenounce theAgreement bycommunicating their decision inwriting
totheother party. Thedenunciation willtakeeffect after aperiod ofsixmonths from thedateofreceipt
ofthecommunication inquestion.
Trade inservices
Inorder todevelop cooperation inthissector theparties willtakeastheir basis theresults of
theGATT Uruguay Round, bymaking amendments oradditions totheAgreement.
Unfair business practices
Intheeventofdumpingordistortionsderivingfromtheapplicationofexportsubsidiesorinternal
subsidies ofanequivalent nature, theaffected party may apply theappropriate measures under its
domestic legislation, which must anycase beinconformity with theGATT stipulations.
Investments
Thepartiesundertaketoencouragethepromotionandprotectionofinvestmentsbytheirnationals
through theconclusion ofbilateral agreements between Venezuela andtheCARICOM member States
onanindividual basis inaccordance with their domestic laws andlegislation.
Entry intoforce
TheAgreement willenter intoforce when bothparties have notified through diplomatic channels
thatalltheinternal legal formalities have been fulfilled. Inanycase, these legal procedures must be
fulfilled by1January 1993.
Accession
TheAgreement isopen toaccession bytheother LAIA member countries, subject tonegotiation
between theparties andthecountries wishing toaccede totheAgreement, pursuant toArticle 9(a)
ofthe1980 Treaty ofMontevideo.
During theperiod inquestion thefollowing Agreements signed under Article 25ofthe
1980 Treaty ofMontevideo were modified asfollows:
(a) Agreement between Venezuela andHonduras (ALADI/AAP/A25TM/16)
Agreement between Venezuela andGuatemala (ALADI/AAP/A25TM/23)
Agreement between Venezuela andNicaragua (ALADI/AAP/A25TM/25)
Agreement between Venezuela andCosta Rica (ALADI/AAP/A25TM/26)
Agreement between Venezuela andElSalvador (ALADI/AAP/A25TM/27)
ByAdditional Protocols totherespective Agreements, signed on29September 1992, the
signatory countries incorporate theconsolidated schedule ofCentral American exportable products
thatwillenter theVenezuelan market with azero tariff, while maintaining theother benefits granted
byVenezuela under each Agreement.WT/COMTD/7
Page 33
(b) Agreement between Venezuela andTrinidad andTobago (ALADI/AAP/A25TM/2)
TheFirst Additional Protocol signed on14October 1992 expands theliberalization programme
under theAgreement byincorporating tariff preferences granted bythetwocountries fornewproducts.
(c) Agreement between Brazil andCuba (ALADI/AAP/A25TM/3)
Under theFirst Additional Protocol, signed on22July 1992, thescope oftheAgreement is
expanded byincorporating preferences granted bythetwocountries forimports ofnew products
originating intheir respective territories.WT/COMTD/7
Page 34
II. INFORMA TIONONMEA SURES TAKENBYLAIAMEMB ERCOUNTRI ESUNDER THE
1980 TREATY OFMONTEVIDEO DURING THE PERIOD 1993/1994
Inpursuance ofparagraph 4(a)oftheMinisterial Decision of28November 1979 regarding
"Differential andmore Favourable Treatment, Reciprocity andFuller Participation ofDeveloping
Countries", known astheEnabling Clause, thedelegations submitting thisreport inform theother
contracting parties totheGeneral Agreement ofthemeasures taken under the1980 Treaty ofMontevideo
in1993/1994 bythecountries which aremembers oftheLAIA andalsoGATT contracting parties
forthepurpose ofreducing oreliminating theimport tariffs andnon-tariff measures applying toproducts
traded among them.
Theaccession ofParaguay totheGeneral Agreement on6January 1994 modifies thecontent
oftheprevious report submitted totheCommittee onTrade andDevelopment, since Paraguay has
concluded partial-scope agreements andparticipates inregional agreements which insome cases antedate
theperiod under consideration.
Consequently, 10ofthe11countries members oftheAssociation are,asoftheendoftheperiod
covered bythisreport, contracting parties totheGeneral Agreement onTariffs andTrade (GATT):
Argentina, Bolivia, Brazil, Colombia, Chile, Mexico, Paraguay, Peru, Uruguay andVenezuela.
Thisfact,together withthechanges thathave occurred overthepasttwoyears intheAgreements
concluded, which were reported attheappropriate time, justify asthorough aspossible areview of
thecurrent state oftheliberalization mechanism agreed under theprovisions ofthe1980 Treaty of
Montevideo.
Inaddition toproviding information ontheagreements concluded andthechanges made during
theperiod under consideration, thecountries submitting thisreport consider itworthwhile topresent
some observations onintraregional trade during thisperiod. While thisinformation concerns all
11member countries oftheAssociation, itindicates thesignificance andimportance fortheregion
oftheintegration process promoted bythe1980 Treaty ofMontevideo.
This report therefore contains twoparts, thefirstdealing with intraregional trade during the
period 1993/1994, andthesecond covering regional andpartial-scope agreements concluded bymember
countries thatarecontracting parties totheGeneral Agreement, andchanges intreatment granted prior
toandduring theperiod inquestion.
1. Regional trade during 1993/19941
1.1 1993
Thetotal value ofaggregate exports ofthe11LAIA countries roseby8percentin1993 with
respect totheprevious year to$145,055 million, anall-time record. This expansion wasduetothe
increase intheoverall volume (9percent) which wasoffset inpartbyafall(3percent) intheunit
values asaresult ofthedrop ininternational prices ofmost ofthemain export products ofthecountries
intheregion, e.g.lead (-25percent), fishmeal (-23 percent), zinc (-19 percent), copper (-12 per
1Itshould beborne inmind thatthetrade results appearing inthisreport areaffected bytheinclusion, in
thefigures forMexico, oftrade generated bythecountry 'sin-bond processing industry (empresas maquiladoras ).
This wasdone attherecommendation oftheStatistical Division oftheUnited Nations andtheDivision of
Information andStatistics oftheGeneral Secretariat oftheLAIA. Thetotal value ofexports for1993 reached
$21,900 million, while thevalue ofimports reached $16,400 million; in1994, exports totalled $26,300 million
andimports, $20,500 million.WT/COMTD/7
Page 35
cent), iron(-11percent), tin(-10percent), crude oil(-9percent), cocoa (-7percent), wool (-6per
cent) andmaize (-5percent). This trend wasonly partly offset byarecovery intheprices ofbananas
(17percent), rawsugar (10percent), bovine meat (7percent), soya (6percent), mild coffee (4per
cent) andcotton (2percent).
Theincrease inthecurrent value oftotal sales wastheresult ofanexpansion thattook place
ineight countries oftheregion reflected primarily inanincrease inthefigures forMexico
(+$5,636million),Brazil(+$2,621million),Venezuela(+$1,201million),Argentina(+$883million)
andColombia (+$560 million) and, toamuch lesser extent forParaguay, Bolivia andPeru. These
figures were partly offset byadrop inthefigures forChile (-$595 million), Ecuador (-$22 million)
andUruguay (-$13 million).
Overall imports intheregion grew more moderately thaninthepreceding years, gaining 10per
centover theprevious year tobring thetotal figure to$153,087 million. This expansion, duealmost
exclusively toanincrease inthevolume ofimports (8percent), washelped byinjections ofcapital
from abroad, andaffected allofthemember countries with theexception ofVenezuela.
Althoughtheincreasewasgeneral,itwasfuelledprimarilybyBrazil(+$4,954million),Mexico
(+$3,238 million), Colombia (+$3,157 million), Argentina (+$1,912 million) and Chile
(+$1,086 million), who together areresponsible foralmost theentire expansion intheregion.
Theaverage aggregate terms oftrade forthemember countries asawhole declined by4per
centin1993, primarily owing toafallintheexport unitvalue index. This decline affected most of
thecountries, inparticular Venezuela, Peru andBolivia, with decreases approximating 13percent.
OnlyinArgentina,ParaguayandUruguaywasthereanimprovementinthetermsoftrade,withincreases
ranging from 1.5to2.9percent.
Thenegative trade balance with therestoftheworld thatemerged during thefirsthalfof1992
andgrew during thesecond half, reached almost $3,600 million in1993.
In1993, thevalue ofintraregional exports increased by22percent, reaching anall-time record
of$23,688 million after eight consecutive years ofexpansion. Over thepastthree years, theaverage
annual growth rateincreased by25percent asagainst 13percent fortheperiod 1988-1990.
During 1993, intraregional trade wasaffected bytwodistinct factors. Theabundance ofhard
currency intheregion asaresult ofaninflux offoreign capital andforeign debt relief, while pushing
down realexchange rates anddiscouraging exports incertain cases, atthesame timestimulated imports,
inparticular intraregional imports. Indeed, while thevalue ofintra-LAIA trade measured interms
ofexports grew 22percent, imports from therestoftheworld rose only 10percent. Ontheother
hand, thefallintheinternational prices ofoil,minerals andmetals, which jointly account for
approximately onequarter ofthevalue ofintraregional trade, hadanegative influence.
The increase inreciprocal sales in1993 does notreflect thecontrast among thedifferent
countries. While theriseconcerned 10oftheregion 'strading partners, itdidnotextend toPeru, and
thegreatest increases were restricted tothemain suppliers, Brazil (+$1,553 million) andArgentina
(+$1,369 million). Confirming thetrend observed during thefirst half oftheyear, Argentina
($5,166 million) wasforthesecond year running thecountry which attracted themost investments
intheregion followed byBrazil ($4,716 million), Chile ($2,423 million), Colombia ($1,992 million),
Mexico ($1,832 million), Venezuela ($1,733 million), Uruguay ($1,536 million, Paraguay
($1,413 million), Peru ($1,346 million), Bolivia ($879 million) andEcuador ($652 million).WT/COMTD/7
Page 36
Thevalue ofintra-subregional exports ofthecountries oftheCartagena Agreement reached
$2,892 million in1993, thehighest level attained bytheAndean Group inits25years ofexistence.
This figure ismore than 30percent higher than thefigure fortheprevious year andrepresents
considerably more than twice thevalue recorded only three years earlier (1990: $1,264 million), an
increase which isduetothefullentry intoforce ofthefree-trade area, although Peru didnotapply
theliberalization programme toallofitsproducts. Theshare ofintra-Andean Group exports intotal
intraregional exports hasremained close to12percent over thepastyears.
While theintra-subregional exports oftheAndean Group rosesteadily, aggregate sales tothe
restoftheLAIA countries, after growing 23percent in1990 and11percent in1991, fellslightly
over thepasttwoyears, finally stagnating atslightly more than $1,730 million. Asaresult ofthese
trends, thevalue ofintra-subregional exports, which used torepresent 36percentoftotal exports to
theLAIA, effectively reached thelevel ofsales oftherest ofthemember countries in1991
($1,778 million) andexceeded thatlevel by$474 million in1992 and$1,085 million in1993, with
theshare inintra-subregional exports reaching 62percentofthetotal value ofexports totheregion.
That year, sales bytheAndean countries totherestoftheLAIA countries totalled $1,807 million of
which $930 million went toMERCOSUR, $427 million toChile and$450 million toMexico.
Thevalueofintra-MERC OSURexportsincreasedforthesixthyearrunning,reachingahistorical
record exceeding $10thousand million, 39percenthigher than in1992, andconfirming thedynamic
trend ofthepastfewyears. Theshare ofintra-MERCOSUR exports inoverall intraregional exports,
some 30percent in1987 and1988, rose to34percent over thethree years from 1989 to1991 to
reach 37percent in1992 and42percent in1993.
Thesharp andsustained increase inintra-subregional exports isprimarily duetotheincreasing
growth inthesales ofmanufactured goods, which rose by40percentin1991 andby53percentin
1992, doubling the1990 figure, andthen again by40percentin1993, reaching some 6,200 million,
tripling the1990 figure. Theshare ofmanufactured products inreciprocal trade rose from 50per
centoftheoverall value forthree years earlier tomore than 60percentoftheoverall values forthe
lasttwoyears.
Thevalue ofaggregate intraregional exports from thecountries oftheAsunción Treaty tothe
restofthecountries intheregion grew byfivepercentover thelastyear, reaching $5,561 million,
ofwhich$2,507millionrepresentexportstothecountriesoftheAndeanGroup,$1,796millionrepresent
exports toChile and$1,258 million, exports toMexico. Over thepasttwoyears, Brazilian exports
have represented 67percentofthetotal exports ofthesubregion totheremaining LAIA countries,
andArgentine exports have represented 29percent.
After seven years ofexpansion, thevalue ofChilean exports totheregion grew once again
in1993, albeit atalower ratethan during thetwopreceding years (11percent), reaching atotal of
$1,798 million. This growth wasdueprimarily toincreased sales ofmanufactured goods andfoodstuffs
toArgentina, thetotal value ofwhich reached $588 million, almost athird oftotal Chilean exports
intheregion. Exports totheAndean Group totalled $569 million, toMERCOSUR $1,105 million
andtoMexico $124 million.
Inspite ofthedrop insales ofintermediate goods, thanks tothesurge inthesaleofcapital
goods, which doubled, andofconsumer goods, which increased bymore than 50percent, overall
exports from Mexico totheLAIA countries grew by18percentto$1,602 million in1993. However,
Mexico 'sshare intotal exports remained at3percent, thelowest intheregion. Exports totheAndean
Group reached $634 million, toMERCOSUR $768 million andtoChile $200 million.WT/COMTD/7
Page 37
1.2 1994
Thevalue ofaggregate exports ofthecountries oftheregion in1994 roseby16percent, 4per
centabove theworld average, toreach $168,852 million, anall-time record. Theshare ofaggregate
exports inworld exports rose slightly, reaching 4.2percent. This growth waslargely duetothe
economicrecoveryintheindustrializedcountriesandtheresultingincreaseindemandforbasicproducts,
whose international prices, reversing thedownward trend ofthepastfewyears, increased considerably.
However, theprices ofcertain important export products intheregion fell,e.g.crude oil(-5percent),
whose current value felltothelowest level since 1988, iron (-10 percent) andbeef (-9percent).
Theincrease inthevalue ofaggregate exports during 1994 reflects theexpansion which took
place inallofthecountries oftheregion without exception, anexpansion dueprimarily toincreases
intheexports ofMexico (+$8,722 million), Brazil (+$4,961 million), Argentina (+$2,721 million),
Chile (+$2,043 million), Venezuela (+$1,442 million) andPeru (+$1,045 million). Thetotalincrease
inthevalue ofexports forthose countries represents 88percent oftheincrease intotal aggregate
exports.
Thegrowth rateofaggregate imports rosein1994, reaching 20percent, giving atotal value
of$183,387 million. This figure confirmed thetendency thathadbeen emerging forsome time for
imports togrow more rapidly than exports. Theabundance ofhard currency intheregion duetothe
influx ofcapital from abroad continued topush down realexchange rates, thereby stimulating imports,
already favoured bytariff cutsandtheeconomic recovery ofthecountries intheregion. Moreover,
there hasbeen asignificant increase invarious countries oftheregion intheimport ofcapital goods,
reflecting anincrease ininvestment andeconomic activity. While theincrease inaggregate imports
in1994 affected 10countries, Venezuela experienced aconsiderable drop inimports (-27 percent)
inacontext ofeconomic recession andforeign exchange control. Inabsolute terms, thegreatest increase
wasrecorded inMexico (+$13,979 million), Brazil (+$8,523 million), Argentina (+$4,807 million),
Colombia (+$2,054 million), Peru (+$1,395 million) andEcuador (+$1,070 million). Thenotable
increase inMexico 'sforeign trade, which isprimarily with therestoftheworld, reflects aconsiderable
strengthening ofitstieswith theUnited States inconnection with NAFTA.
In1994, following thefairly generalized decline intheaverage terms oftrade during the
preceding year dueprimarily toafallintheexport unitvalue index, theterms oftrade improved in
most ofthecountries oftheregion while declining inParaguay, Venezuela, Argentina andUruguay.
Thetrade deficit ofLAIA countries with respect totherestoftheworld grew considerably
in1994, increasing by$5,393 million toatotal of$14,202 million.
Thevalue ofintraregional exports continued togrow in1994 fortheninth consecutive year,
albeit atasomewhat slower ratethan during theprevious year, reaching anew all-time record of
$28,241 million, 19percenthigher than in1993. Over thepastfour years, theaverage annual rate
ofincrease inthevalue ofintraregional exports hasbeen 23percent, significantly higher than forthe
three-year period 1988-1990 (13percent).
Theshare ofintraregional exports inoverall value ofexports grew slightly in1994 toreach
17percent, afigure which does notreflect thegreat disparity between thedifferent countries. While
thevalue ofexports tothecountries oftheregion from Argentina, Bolivia, Paraguay andUruguay
represented between 39and53percentoftheir respective overall exports, inBrazil, Colombia, Chile,
Ecuador, Peru andVenezuela itrepresented from 14to22percent, andinMexico, only 3percent,
thelowest figure fortheregion.WT/COMTD/7
Page 38
Although theincrease inreciprocal exports in1992 affected allofthecountries, the32per
centincrease inexports from Argentina (+$1,670 million) accounts formost ofthatgrowth withBrazil,
Venezuela, Chile andtheremaining countries contributing toalesser extent.
In1994, Brazil andArgentina together accounted for60percentoftheregion 'sexports. That
figure rises to68percentwith theaddition ofthethird supplier, Venezuela, andto92percentwith
theinclusion ofChile, Mexico, Colombia andUruguay. Theremaining 8percent wasdistributed
among Peru, Ecuador, Bolivia andParaguay.
Following atwo-year period during which Argentina wasthemain destination forintraregional
exports, Brazil took thelead in1994 with 22percent oftotal exports, followed byArgentina with
21percent andChile with 10percent.
Thestructure ofreciprocal exports bysubregion andbetween subregions didnotundergo any
significantchangewithrespectto1993.Theintra-subregionalexportsofMERC OSUR($12,044million)
accounted for43percent oftheLAIA total, thereciprocal exports between theAndean Group and
MERC OSUR($3,963million)for14percent,intra-AndeanGroupexports($3,477million)andexports
between MERCOSUR andChile ($3,436 million) for12percent each, reciprocal exports between
MERCOSUR andMexico ($2,099 million) for7percent, trade between theAndean Group andChile
($1,268 million) andtheAndean Group andMexico ($1,490 million) for5percenteach, andbetween
Chile andMexico ($464 million) for2percent.
Intra-subregional exports inthecountries oftheCartagena Agreement totalled $3,477 million
in1994, thehighest level ever reached bytheAndean Group inmore than aquarter ofacentury of
existence. This figure, which represents a20percentriseover theprevious year, accounts foralmost
60percent oftotal intraregional exports oftheAndean countries ($5,889 million).
Intraregional exports bycountries oftheAndean Group topartners outside thesubregion rose
to$2,412 million in1994 representing agrowth of33percent, considerably higher than thegrowth
ofreciprocaltrade.Ofthatamount,$1,259millionworthofexportswenttoMERC OSUR,$496million
worth toChile and$657 million worth toMexico.
The value ofintra-MERCOSUR exports grew fortheseventh year running, reaching
$12,044 million, 20percenthigher than in1993 andanall-time record forreciprocal trade between
themember countries. However, thisgrowth ratewasconsiderably lower than intheprevious year
(39percent), representing aconsiderable slow-down inthepace ofgrowth recorded over thepast
fewyears. Theshare ofintra-subregional exports intotal intraregional exports remained between 42
and43percent during theperiod 1993-1994.
During1994,thevalueofexportsfromtheMERC OSURcountriestotheAndeanGrouptotalled
$2,704 million; toChile, $2,073 million; andtoMexico, $1,375 million.
Thevalue ofreciprocal exports between Chile andMexico surged by43percentin1994 with
respect totheprevious year, reaching $464 million, reflecting a64percent increase forChile with
$203 million worth ofexports, andalesser increase of31percentforMexico with $261 million worth
ofexports. Chilean exports totheMERCOSUR countries totalled $1,363 million, andtotheAndean
Group, $772 million, while Mexican exports tothose subregions reached $724 million and$833 million
respectively.WT/COMTD/7
Page 39
External Trade ofMember Countries According toDestination orOrigin LAIA -Rest ofWorld
1993-1994
(Millions ofdollars)
CountryExports f.o.b. C.i.f. imports Balance
1993 1994 94/93(%) 1993 1994 93/94 (%) 1991 19942
LAIA
Argentina 5,287 6,957 31.6 5,434 6,607 21.6 -147 350
Bolivia 302 436 44.4 449 515 14.7 -147 -79
Brazil 9,146 9,745 6.5 4,986 6,756 35.5 4,160 2,989
Colombia 1,475 1,577 6.9 2,315 2,669 15.3 -840 -1,092
Chile 1,798 2,338 30.0 2,424 2,883 18.9 -626 -545
Ecuador 517 704 36.2 436 1,010 131.7 81 -306
Mexico 1,602 1,818 13.5 2,166 2,587 19.4 -564 -769
Paraguay 343 469 36.7 707 1,094 54.7 -364 -625
Peru 582 782 34.4 1,376 1,736 26.2 -794 -954
Uruguay 813 1,025 26.1 1,143 1,468 28.4 -330 -443
Venezuela 1,823 2,390 31.1 1,475 1,249 -15.3 348 1,141
TOTAL 23,688 28,241 19.2 22,911 28,574 24.7 * *
REST OFTHE WORLD
Argentina 7,831 8,882 13.4 11,349 14,983 32.0 -3,518 -6,101
Bolivia 507 688 35.7 728 681 -6.5 -221 7
Brazil 29,451 33,813 14.8 22,314 28,797 29.1 7,137 5,016
Colombia 5,994 7,340 22.5 7,526 9,226 22.6 -1,532 -1,886
Chile 7,528 9,031 20.0 8,118 8,266 1.8 -590 765
Ecuador 2,503 3,013 20.4 2,117 2,613 23.4 386 400
Mexico 50,230 58,736 16.9 63,201 76,759 21.5 -12,971 -18,023
Paraguay 382 348 -8.9 982 1,331 35.5 -600 -983
Peru 2,762 3,607 30.6 2,855 3,890 36.3 -93 -283
Uruguay 794 893 12.5 1,190 1,239 4.1 -396 -346
Venezuela 13,385 14,260 6.5 9,796 7,028 -28.3 3,589 7,232
TOTAL 121,367 140,611 15.9 130,176 154,813 18.9 -8,809 -14,202
TOTAL
Argentina 13,118 15,839 20.7 16,783 21,590 28.6 -3,665 -5,751
Bolivia 809 1,124 38.9 1,177 1,196 1.6 -368 -72
Brazil 38,597 43,558 12.9 27,300 35,553 30.2 11,297 8,005
Colombia 7,469 8,917 19.4 9,841 11,895 20.9 -2,372 -2,978
Chile 9,326 11,369 21.9 10,542 11,149 5.8 -1,216 220
Ecuador 3,020 3,717 23.1 2,553 3,623 41.9 467 94
Mexico 51,832 60,554 16.8 65,367 79,346 21.4 -13,535 -18,792
Paraguay 725 817 12.7 1,689 2,425 43.6 -964 -1,608
Peru 3,344 4,389 31.3 4,231 5,626 33.0 -887 -1,237
Uruguay 1,607 1,918 19.4 2,333 2,707 16.0 -726 -789
Venezuela 15,208 16,650 9.5 11,271 8,277 -26.6 3,937 8,373
TOTAL 145,055 168,852 16.4 153,087 183,387 19.8 * *
Note: The data forBolivian exports areofficial customs values, andthedata forMexican andVenezuelan imports aref.o.b. values. The
figures forMexico include trade generated bythein-bond processing industry.
Preparation: LAIA General Secretariat, Statistical Unit.
Source: Data supplied bymember countries.WT/COMTD/7
Page 40
2. Agreements andmodifications during theperiod 1993/1994
TheAnnexes tothisreport listthepartial-scope andregional agreements thatareineffect as
well asanyamending protocols agreed bythesignatories.
2.1 Trade agreements (Annex 7)
Theabove-mentioned annex liststheagreements inthecategory oftrade agreements, indicating
thesignatories, industrial sector concerned, date oftheagreement andadditional protocols adopted
during 1993 and1994.
During theperiod under consideration nofurther agreements ofthiskindwere concluded among
member countries.
Ontheother hand, various changes were made, basically intheagreements where theagreed
preferences were temporary, i.e.forafixed period. Insuch cases preferences arenegotiated fora
period ofoneortwoyears according totheproduction andconsumption prospects fortheproducts
concerned. Theextension ofthese preferences isusually agreed forequal andsuccessive periods,
essentially following therecommendations made bybusiness circles intheindustry concerned.
AsmaybeseenfromthelistintheAnnex,thetradeagreementscoverawiderangeofproduction
sectors, some ofthem grouped insubsectors (forexample those concerning thechemical industry)
whileothersconcernspecificsectors(phonographicindustry,photographicindustry,householdelectrical
andheating appliances, andsoforth).
Themore important changes made intheperiod 1993/1994 include thefollowing:
(a) IntheAdditional Protocols signed attheendof1993, thevalidity clause governing
allofthetrade agreements was amended toprovide fortheir validity until
31December 1994 andtheir automatic extension forsuccessive periods ofoneyear
unless oneofthesignatories expressly states otherwise.
Inthatcase, theobligations assumed andtherights acquired would automatically lapse
forthatcountry andthedenunciation clause contained intheagreement(s) inquestion
would nolonger apply.
Itshould bepointed outthattheextension ofthetrade agreements beyond thestipulated
time-period wastheresult ofanexpress decision bythegovernments ofthesignatory
countries toadopt the Additional Protocols extending their validity until
31December 1995.
(b) 1993 sawacontinuation oftheprocess oftransposing products negotiated between
given pairs ofcountries toother agreements concluded between them, essentially
economic complementarity agreements, with theresult thatcertain agreements have
lapsed(TradeAgreementNo.24betweenArgentinaandMexico)whileotheragreements
which previously involved three ormore countries have been transformed intobilateral
agreements asparticular signatory countries refrained from renewing their preferences.
Indeed, theprocess which sawtheincorporation in1991 and1992 ofproducts negotiated under
different trade agreements between Argentina andChile, Brazil andChile, andArgentina andBrazil
intotherespective partial-scope agreements concluded between those countries hasbeen extended to
cover products negotiated between Argentina andMexico, Argentina andVenezuela, Brazil andWT/COMTD/7
Page 41
Venezuela, andChile andVenezuela, which have been incorporated intoEconomic Complementarity
Agreements Nos. 6,20,27and23respectively.
Participation ofParaguay intrade agreements
Inaccordance with theCouncil ofMinisters, Resolution 2,Article 6,theconcessions granted
inthetrade agreements areautomatically extended totheeconomically less-developed countries without
anycompensationinreturn,regardlessofwhetherornotthecountryconcernedhasnegotiatedoracceded
totheagreement.
Paraguay istherefore thebeneficiary ofthepreferences granted bymember countries under
each ofthetrade agreements concluded between twoormore countries thatareinforce atthedate
ofthisreport.
2.2 Economic complementarity agreements (Annex 8)
2.2.1 Additional protocols
Thelistofcurrent agreements indicates thatmember countries have made anumber ofchanges
intheeconomic complementarity agreements concluded prior totheperiod under consideration, most
ofwhich have been examined inthereports submitted totheGATT CONTRACTING PARTIES.
This isthecaseoftheagreements concluded between Brazil andUruguay (No. 2);Chile and
Uruguay (No. 4);Mexico andUruguay (No. 5);Argentina andMexico (No. 6);Mexico andPeru
(No. 8);Argentina andPeru (No. 9);Argentina andColombia (No. 11); Argentina andParaguay
(No. 13); Argentina andBrazil (No. 14); Bolivia andUruguay (No. 15); Argentina andChile (No. 16);
Chile andMexico (No. 17); Argentina, Brazil, Paraguay andUruguay (No. 18); Argentina andBolivia
(No. 19)andArgentina andVenezuela (No. 20),inwhich most oftheamendments introduced concern
theextension oftherange ofproducts covered bytheir liberalization programmes andthedeepening
oftheagreed preferences formutual trade inproducts originating intheir respective territories.
However, there areother changes worth mentioning, forexample:
- ACE 2(Brazil andUruguay)
ThesignatorycountriesincorporatedintotheAgreementarrangementsfortheregulation
oftrade inmotor vehicles andestablished aharmonized system ofprocedures and
administrative sanctions applicable incase offorgery ofcertificates oforigin (17th
and18th Additional Protocols of12and19July 1993 respectively).
- ACE 13(Argentina andParaguay)
Asystem wasintroduced todealwith cases offorgery ofcertificates oforigin similar
totheoneinACE 2(First Additional Protocol of27December 1994).
- ACE 14(Argentina andBrazil)
Pursuant toArticle 8oftheAgreement, thesignatories reduced their respective lists
ofexceptions totheliberalization timetable, withdrawing theproducts listed inthe
Additional Protocols of8February 1993 (14th) and13January 1994 (24th) asfrom
1January 1993 and1January 1994 respectively.WT/COMTD/7
Page 42
Atthesame time, they incorporated inACE 14asystem ofprocedures applicable incase of
forgery ofcertificates oforigin identical tothose contained inthepreviously-mentioned agreements
(17th Additional Protocol dated 4May 1993).
- ACE 15(Bolivia andUruguay)
TheSecond Additional Protocol oftheAgreement, dated 12July1994, fully replaced
theoriginal Protocol ofACE 15dated 12April 1991 asofitssignature.
- ACE 16(Argentina andChile)
ThesignatoriesoftheAgreementadoptedanumberofadditionalprotocolsincorporating
new rules governing:
(a) Interconnection ofgasnetworks andsupply ofnatural gasbetween specific
areas intheterritory ofboth countries (Fifth Additional Protocol of
12January 1993);
(b) transport andsupply ofliquid hydrocarbons (Eighth Additional Protocol of
3September 1993); and
(c) facilitation ofinternational airtransport activities (Ninth Additional Protocol
of3November 1993).
- ACE 18(Argentina, Brazil, Paraguay andUruguay)
Pursuant toArticle 7oftheAgreement, thesignatories reduced their listsofexceptions
totheliberalization timetable, withdrawing theproducts listed intheThird Additional
Protocol dated 26February 1993 and the Fifth Additional Protocol dated
17February 1994 asfrom 1January 1993 and1January 1994 respectively.
They alsointroduced intoACE 18anumber ofadditional rules governing:
(a) Settlement ofdisputes between signatories (Protocol ofBrasilia), formally adopted by
theAssociation through theFourth Additional Protocol of27January 1994;
(b) replacement oftheAgreement 'sGeneral Regime ofOrigin anditsamendments bythe
MERCOSUR Rules ofOrigin through theEighth Additional Protocol dated
30December 1994;
(c) regulations tobeapplied tothesugar sector until thefinal adoption oftheregime for
thatsector (Ninth Additional Protocol of30December 1994);
(d) harmonization ofthetreatment granted intheterritory ofMERCOSUR togoods from
thefree-trade zones, industrial freezones, export processing zones andspecial customs
areas (Eleventh Additional Protocol of30December 1994);
(e) establishment ofaprocess fortheharmonization ofnon-tariff restrictions (Twelfth
Additional Protocol of30December 1994); and
(f) establishment ofaregime governing theapplication ofexport incentives (Thirteenth
Additional Protocol of30December 1994).WT/COMTD/7
Page 43
2.2.2 Conclusion ofnew agreements
During thetwo-year period 1993-1994, themember countries oftheAssociation concluded
atotal of13new economic complementarity agreements, allbilateral, inwhich the11countries
participated. Thelistbelow setsforth themain characteristics ofeach agreement:
(a) Economic complementarity Agreement No. 21,concluded between Argentina and
Ecuador on13May 1993
Liberalization programme
This Agreement contains aselective listofproducts which includes andbuilds upon thelist
ofproducts negotiated between thetwocountries intheframework oftheLAIA inthePartial-Scope
Agreement forthe"Renegotiation ofconcessions granted intheperiod 1962/1980" (AAP.R/5) and
Partial Scope Economic Complementarity Agreement No.3.These twoAgreements lapsed asofthe
dateonwhich theGovernments ofArgentina andEcuador incorporated theAgreement intheir domestic
legislation.
Thetariff preferences affecting those products, consisting inapercentage reduction oflevies
onimports from third countries, were applied tovarying degrees according totheinterest oftheparties
ineach product negotiated.
Thelistofproducts negotiated andthepreferences applied tothem wasincorporated intothe
Agreement through theFirst Additional Protocol of4November 1993.
Trade restrictions
Under Article 6,thesignatory countries commit themselves tothegradual andbalanced phasing
outofexisting restrictions toforeign trade andtotheadoption ofregimes aiming ateliminating all
legal oradministrative regulations thatimpede orinterfere with market access such asprohibitions,
licences, import permits oranyother obstacles tofreetrade.
Thesignatory countries alsoundertake nottointroduce restrictions toreciprocal trade other
than those expressly setforth intheAgreement.
Regime ofOrigin (Article 24)
Fortheimplementation ofthese provisions oftheAgreement thesignatory countries adopt
theGeneral Regime ofOrigin established inLAIA Committee ofRepresentatives Resolution 78.This
Regime canbecompleted through theadoption ofspecific rules oforigin totakeprecedence over the
general rules.
Safeguard clauses (Article 25)
Fortheimplementation ofthese provisions oftheAgreement, thesignatories adopt aGeneral
Regime ofSafeguards established inLAIA Committee ofRepresentatives Resolution 70.
Dispute settlement (Article 23)
Such disputes asmayarise intheimplementation ofthisAgreement willbesettled provisionally
through negotiations between theparties until theAdministrative Council adopts adefinitive regime.WT/COMTD/7
Page 44
Validity oftheAgreement
Inaccordance with Article 30,theAgreement isvalid foranindefinite period oftime, while
thetariff preferences were originally valid until 31December 1994.
TheSecond Additional Protocol totheAgreement, dated 17November 1994, extended the
validity ofpreferences granted bythesignatories until 30June 1995.
Denunciation (Article 32)
Asignatory may denounce theAgreement bysonotifying theother parties 180days prior to
thedeposit ofthecorresponding instrument ofdenunciation with theLAIA General Secretariat.
Therights acquired andobligations assumed under theAgreement willautomatically cease
forthedenouncing party atthetime offormal denunciation, except inrespect oftariff preferences
received orgranted, which remain inforce foronefurther year from thedateofformal denunciation,
aswell asanyother matters forwhich aperiod ofvalidity haspreviously been established.
Other provisions
ACE 21alsocontains provisions inrespect of:
- Thesignature ofspecific agreements andprotocols forthetechnical andadministrative
enhancement ofreciprocal trade aimed atensuring thattheapplication ofquality, food,
phytosanitary andzoosanitary standards andrequirements does notstand intheway
oftrade (Article 18);
- negotiation ofaprogramme fortheelaboration, onthebasis ofreciprocity and
non-discrimination between suppliers ofthetwocountries andother GATT contracting
parties, ofamethodology forthegradual harmonization ofgovernment procurement
policies (Article 19).
(b) Economic Complementarity Agreement No.22,concluded byBolivia andChile on
6April 1993
Liberalization programme
Thesignatoriesagreetogranteachothertariffpreferencesonaselectivelistofproductsincluding
those covered bythePartial-Scope Agreement forthe"Renegotiation ofconcessions granted inthe
period 1962/1980" (AAP.R/27).
ThesaidPartial-Scope Agreement lapsed asofthedateonwhich Bolivia andChile gave full
effect toEconomic Complementarity Agreement No.22.
Thetariff preferences affecting thesaidproducts were applied tovarying degrees according
totheinterest oftheparties ineach product negotiated.
Thelistofproducts negotiated andthepreferences applied tothem wasincorporated intothe
Agreement asSecond Additional Protocol of15October 1994.WT/COMTD/7
Page 45
Trade restrictions
With respect totheapplication ofrestrictions defined inArticle 4,paragraph 3,thesignatories
undertake todotheir utmost toprevent theapplication ofmeasures which might stand inthewayof
reciprocal trade, and,asregards theproducts included intheliberalization programme, nottointroduce
non-tariff restrictions other than those referred toinArticle 50ofthe1980 Treaty ofMontevideo.
Regime ofOrigin
ThesignatorieswillapplytoimportsundertheAgreement'sliberalizationprogrammetheGeneral
RegimeofOriginoftheLAIAestablishedinLAIACommitteeofRepresentativesResolution78,without
prejudice tothespecific rules oforigin setforth intheAgreement orestablished byitsAdministrative
Commission.
Safeguard clauses
Subject toprior notice, thesignatories mayapply toimports carried outunder theliberalization
programme theLAIA 'sRegional Regime ofSafeguards established inLAIA Committee of
Representatives Resolution 70,within certain limits setforth inArticles 8and9oftheAgreement.
Dispute settlement
ChapterXIIIACE22establishesaregimeforthesettlementofdisputeswhichmayarisebetween
theparties inconnection with theinterpretation oftheprovisions oftheAgreement, their application
ornon-application, orinanyother connection apart from unfair trading practices andconditions of
competition.
This regime provides fortheorganization ofconsultations between theparties through specific
procedures setforth inArticle 27. Ifnomutually satisfactory solution canbefound, thedispute is
brought before anarbitration panel, thecomposition andterms ofreference ofwhich aresetforth in
Articles 28to32.
Unfair trading practices andconditions ofcompetition (Articles 10and11)
Inaddition tocondemning dumping andallunfair trading practices aswell asthegranting of
export subsidies orother internal subsidies with equivalent effects, thesignatories establish thatifsuch
situations should arise intheir reciprocal trade, either with respect totheproducts negotiated under
theAgreement ortothose thathave notbeen negotiated, theaffected country willapply remedial
measures determined byitsdomestic legislation, subject tothecriteria andprocedures established under
theGeneral Agreement onTariffs andTrade (GATT) asofthedate ofsignature ofACE 22.
Validity oftheAgreement (Article 33)
Economic Complementarity Agreement No.22entered intoforce asofthedateofitssignature
foranindefinite period oftime.
Denunciation (Articles 38and39)
Ifasignatory country should decide todenounce theAgreement, itmust sonotify theother
signatories oradherents atleast 180days prior tothedateofdeposit ofthecorresponding instrument
ofdenunciation with theLAIA General Secretariat.WT/COMTD/7
Page 46
Therights acquired andobligations assumed under theAgreement willautomatically cease
forthedenouncing party atthetime offormal denunciation, except inrespect oftariff preferences
received orgranted, which remain inforce foronefurther year from thedateofformal denunciation.
Thefollowing Agreements alsoform partofEconomic Complementarity Agreement No.22:
- Cooperation Agreement inthefield ofTourism between theMinistry ofTourism of
theRepublic ofBolivia andtheNational Tourism Service oftheRepublic ofChile,
concluded inSantiago on11May 1994 and adopted bytheAssociation on
7September 1994 (First Additional Protocol);
- Technical Coordination andCooperation Agreement inthefield ofagricultural and
forestry quarantine, quarantine pests, phytosanitary products andtransgenic material
(Third Additional Protocol concluded on17November 1994);
- Agreement onthePromotion andReciprocal Protection ofInvestments between Bolivia
andChile (Fourth Additional Protocol, concluded on22September 1994); and
- Agreement between theNational Institute forExport Promotion oftheRepublic of
Bolivia andtheGeneral Department ofInternational Economic Relations oftheMinistry
ofForeign Relations oftheRepublic ofChile fortheencouragement andpromotion
oftrade between the two countries (Fifth Additional Protocol, singed on
21September 1994).
(c) EconomicComplementarityAgreementNo.23,concludedbetweenChileandVenezuela
on2April 1993
Liberalization programme
Thesignatories undertake tofreetheir reciprocal trade from alllevies by1January 1999 at
thelatest, inaccordance with atimetable ofautomatic, across-the-board reductions tobeapplied as
follows:
(i) General reduction (Articles 3(a)and4)
Reduction oflevies applied tothird countries infiveconsecutive annual stages starting
on1July 1993 andreaching 0percent on1July 1997.
Products previously negotiated between thetwocountries inconnection with the
Partial-Scope Agreement forthe"Renegotiation ofconcessions granted intheperiod
1962/1980" (AAP.R/16) willcontinue toenjoy thetariff preferences provided forin
thatAgreement until they areovertaken bythereduction programme described inthe
previous paragraph.
(ii) Special tariff cuts(Article 3(b))
Theproducts included inAnnex 1ofACE 23willbesubject totariff cutsbeginning
on1July 1993 andcontinuing with sixconsecutive annual tariff cuts starting on
1January 1994, finally reaching the"zero" tariff on1January 1999.WT/COMTD/7
Page 47
(iii) Motor vehicle sector (Article 5,paragraph 2)
Asfrom 1July1993, imports ofproducts inthemotor vehicle sector listed inAnnexes 4
and5,unused andoriginating inthesignatory countries, willbefreefrom tariffs and
non-tariff restrictions.
(iv) Exceptions (Article 5,paragraph 1)
The products listed inAnnex 3oftheAgreement remain exempted from the
liberalization programme andtheelimination ofnon-tariff restrictions.
Non-tariff restrictions (Article 2)
Asfrom 1January 1993, theproducts included intheAgreement 'sautomatic reduction
programme benefit from thecomplete removal ofallnon-tariff restrictions, with theexception ofthose
referred toinArticle 50ofthe1980 Treaty ofMontevideo.
Thesignatoriesalsoundertaketorefrainfromintroducingnewrestrictionsonimportsoriginating
intheState party.
Regime ofOrigin (Article 8)
Thesignatories willapply toimports carried outunder theliberalization programme theLAIA
General Regime ofOrigin established inLAIA Committee ofRepresentatives Resolution 78.
Without prejudice tothatRegime, theAgreement 'sAdministrative Commission willhave the
power toestablish rules oforigin forspecific products orsectors different from those oftheGeneral
Regime.
Automobiles andgoods transport vehicles included inAnnex 4and5oftheAgreement are
subject tothespecific rules oforigin setforth inArticles 11and12.
Safeguard clauses
Subject toprior notice, thesignatories mayapply toimports carried outunder theAgreement 's
liberalization programme theLAIA Regional Regime ofSafeguards established inLAIA Committee
ofRepresentatives Resolution 70,within thelimits established insubparagraphs (a)and(b)ofArticle 14.
Dispute settlement
Forthesettlement ofanydisputes which may arise inconnection with theinterpretation of
theprovisions oftheAgreement, their application ornon-application, orinanyother connection apart
from unfair trading practices, theparties submit thecasetotheprocedures laiddown inChapter XVI
oftheAgreement.
This regime provides fortheorganization ofconsultations between theparties orforthe
intervention oftheAdministrative Commission forACE 23.
Ifthedispute cannot besettled through theabove channels, thementioned Commission
immediately appoints anarbitration panel, thecomposition andterms ofreference ofwhich areset
forth inArticle 31,subparagraphs (c)and(d),ofACE 23.WT/COMTD/7
Page 48
Unfair trading practices (Article 15)
If,during thecourse ofreciprocal trade, situations ofdumping orother unfair trading practices
ordistortions deriving from theapplication ofexport subsidies orinternal subsidies with equivalent
effects should arise, thecountry affected may apply measures determined byitsdomestic legislation
withrespecttoanti-dumpingduties,countervailingdutiesoradvaloremsurchargessubjecttotherelevant
provisions oftheGeneral Agreement onTariffs andTrade (GATT), using asareference theGATT
Codes onAnti-Dumping andSubsidies.
Government procurement (Article 18)
TheAgreement 'sAdministrative Commission willdefine theconditions governing government
procurement between signatories, taking dueaccount ofthecriteria established intheGeneral Agreement
onTariffs andTrade (GATT) toensure thatthesignatories enjoy open andcompetitive access to
government procurement.
Validity (Article 34)
ACE 23enters intoforce atthemoment ofitssignature foranindefinite period oftime.
Denunciation (Article 35)
Ifasignatory country wishes towithdraw from theAgreement, itmust sonotify theother
signatories 180days prior tothedeposit ofthecorresponding instrument ofdenunciation withtheLAIA
General Secretariat.
Therights acquired andobligations assumed under theAgreement willautomatically cease
forthedenouncing party atthetime offormal denunciation except asregards thetreatment received
orgranted with respect totheimport ofnegotiated products, which remains inforce foronefurther
yearfrom thedateofthedeposit ofthecorresponding instrument ofdenunciation, provided thesignatory
countries donotagree onadifferent period oftime atthemoment ofdenunciation.
(d) Economic Complementarity Agreement No.24concluded between Colombia andChile
on6December 1993
Liberalization programme
Thesignatories undertake tofreetheir reciprocal trade from alllevies by1January 1999 at
thelatest, according toatimetable ofautomatic, across-the-board reductions applied asfollows:
(i) General reduction (Article 3a)
Reduction oflevies applied tothird countries infiveconsecutive stages (two six-month
stages andthree annual stages) starting on1January 1994 andreaching zero percent
tariff asof1January 1997.
Thetimetableofreductionsalsoappliestoproductsnegotiatedbetweenthetwocountries
inthePartial-Scope Agreement forthe"Renegotiation ofconcessions granted inthe
period 1962/1980" (AAP.R/14) subject totheconditions setforth inAnnex 2of
ACE 24.WT/COMTD/7
Page 49
(ii) Special tariff cuts(Article 3b)
Theproducts included inAnnex 1ofACE 24willbesubject toatimetable ofreductions
infiveannual consecutive stages starting on1January 1994 andreaching zero per
cent tariff asof1January 1999.
(iii) Motor vehicle sector (Article 10)
Asfrom 1January 1994, imports ofproducts inthemotor vehicle sector listed in
Annexes 4and5oftheAgreement andoriginating inthesignatory countries willbe
freefrom levies andrestrictions.
(iv) Exceptions (Article 5)
Thetariff cutting programme willnotapply totheproducts exempted bythesignatory
countries inaccordance with thelistcontained inAnnex 3oftheAgreement.
Non-tariff restrictions (Article 2andAnnex 3)
Asfrom 1January 1994 thesignatories willeliminate allnon-tariff restrictions theymayhave
been applying, with theexception ofthose referred inArticle 50ofthe1980 Treaty ofMontevideo
andthose affecting theproducts included inthelistofexceptions referred toinsubparagraph (iv)above.
Colombia andChile alsoundertake nottointroduce anynewrestrictions toreciprocal trade.
Regime ofOrigin (Article 8)
Thesignatories willapply toimports carried outunder theliberalization programme theLAIA
General Regime ofOrigin established inLAIA Committee ofRepresentatives Resolution 78.
Without prejudice tothatRegime, theAgreement 'sAdministrative Commission willhave the
power toestablish andmodify therules oforigin forspecific products orsectors different from those
oftheGeneral Regime.
Automobiles andgoods transport vehicles included inAnnexes 4and5oftheAgreement are
subject tothespecific rules oforigin setforth inArticle 11.
Safeguard clauses
Subject toprior notice, thesignatories mayapply toimports carried outunder theAgreement 's
liberalization programme theLAIA Regional Regime ofSafeguards established inLAIA Committee
ofRepresentatives Resolution 70,within thelimits established insubparagraphs (a)and(b)ofArticle 14.
Dispute settlement
Forthesettlement ofanydisputes which may arise inconnection with theinterpretation of
theprovisions oftheAgreement, with their application ornon-application, orinanyother connection
apart from unfair trading practices, theparties submit thecase totheprocedures laid down in
Chapter XVII oftheAgreement.
This regime provides fortheorganization ofconsultations between theparties orforthe
intervention oftheAgreement 'sAdministrative Commission.WT/COMTD/7
Page 50
Ifthedispute cannot besettled through theabove channels, thementioned Commission
immediately appoints anarbitration panel, thecomposition andterms ofreference ofwhich areset
forth inArticle 32,subparagraphs (c)and(d),ofACE 24.
Unfair trading practices (Article 15)
If,during thecourse ofreciprocal trade, situations ofdumping orother unfair trading practices
ordistortions deriving from theapplication ofexport subsidies orinternal subsidies with equivalent
effects should arise, thecountry affected may apply measures determined byitsdomestic legislation
with respect toanti-dumping duties, countervailing duties oradvalorem surcharges, subject tothe
relevant provisions oftheGeneral Agreement onTariffs andTrade (GATT), using asareference the
GATT Codes onAnti-Dumping andSubsidies.
Government procurement (Article 18)
TheAgreement 'sAdministrative Commission willdefine theconditions governing government
procurement between signatories, taking dueaccount ofthecriteria established intheGeneral Agreement
onTariffs andTrade (GATT) toensure thatthesignatories enjoy open andcompetitive access to
government procurement.
Validity (Article 34)
ACE 24willenter intoforce atthemoment ofitssignature foranindefinite period oftime.
Denunciation (Article 35)
Ifasignatory country wishes todenounce theAgreement, itmust sonotify theother signatories
180days prior tothedeposit ofthecorresponding instrument ofdenunciation with theLAIA General
Secretariat.
Therights acquired andtheobligations assumed under theAgreement willautomatically cease
forthedenouncing party atthetime offormal denunciation, except asregards thetreatment received
orgranted with respect totheimport ofnegotiated products, which remains inforce foronefurther
year from thedateofdeposit ofthecorresponding instrument ofdenunciation, provided thesignatory
countries donotagree onadifferent period oftime atthemoment ofdenunciation.
ACE 24includes anAgreement onCooperation andCoordination intheField ofAgricultural
HealthbetweentheAgriculturalandLivestockServiceofChileandtheColombianAgriculturalInstitute.
Theterms oftheAgreement aresetforth inAnnex 6.
(e) Economic Complementarity Agreement No.25,concluded between Brazil andPeru
on31December 1993
Liberalization programme (Article 2andAnnexes IandII)
Theprogramme applies toaselected listofproducts forwhich thesignatory countries grant
tariff preferences onimports intheform ofapercentage reduction oflevies inconnection with their
domestic tariffs onimports from third countries.WT/COMTD/7
Page 51
Non-tariff measures
Thesignatories may apply toimports ofnegotiated products only those non-tariff measures
thathave been expressly declared intheSupplementary Notes totheAgreement, andundertake not
toapply new restrictions ortotighten thedeclared restrictions.
Regime ofOrigin (Annex III)
Inorder todetermine theorigin ofnegotiated products, thesignatory countries establish their
own regime which, asarule, coincides with theLAIA General Regime ofOrigin established by
Committee ofRepresentatives Resolution 78.
Safeguard clauses (Article 12)
Under theAgreement, theapplication ofsafeguard clauses isgoverned bytheLAIA Regional
Regime established byLAIA Committee ofRepresentatives Resolution 70.
Dispute settlement
Forthesettlement ofanydispute which may arise inconnection with theinterpretation ofthe
provisions oftheAgreement, with their application ornon-application orinanyother connection, the
signatories submit thecase totheprocedures laiddown inAnnex IVoftheAgreement.
ThisregimeprovidesfortheorganizationofconsultationsthroughtheAgreement'sAdministrative
Commission.
Ifthedispute cannot besettled through theabove procedures, theCommission immediately
appoints anarbitration panel, thecomposition andterms ofreference ofwhich aresetforth inthe
above-mentioned Annex IV.
Unfair competition (Articles 26and27)
Thesignatories condemn allforms ofunfair trade practices andundertake toeliminate any
measures thatcould distort international trade. Accordingly, they undertake nottogrant subsidies
thataffect trade between thetwocountries asfrom theentry intoforce oftheAgreement.
If,during thecourse ofreciprocal trade, situations ofdumping orother unfair trading practices
ordistortions deriving from theapplication ofexport subsidies orinternal subsidies with equivalent
effects should arise, thecountry affected mayimmediately submit awritten request totheAdministrative
Commission forconsultations with theother signatory with aview tofinding asolution.
Ifnounderstanding isreached within aperiod of30days following thereception ofthe
above-mentioned request, theaffected signatory may apply anyrelevant measures provided forinits
domestic legislation thatarecompatible with theCode onAnti-dumping, theCode onSubsidies and
Countervailing Measures andtheCode onCustoms Valuation oftheGeneral Agreement onTariffs
andTrade (GATT).
Validity (Article 37)
Three years, automatically renewable foridentical periods unless oneoftheparties notifies
otherwise 60days prior tothedate oftermination.WT/COMTD/7
Page 52
Thepreferences granted between thetwocountries remained valid until 31December 1994,
onwhich date, bymutual agreement, they were extended until 30June 1995 through theSecond
Additional Protocol.
Denunciation (Articles 39and40)
Ifasignatory country wishes todenounce theAgreement, itmust sonotify theother signatory
90days prior tothedeposit ofthecorresponding instrument ofdenunciation with theLAIA General
Secretariat.
Therights acquired andtheobligations assumed under theAgreement willautomatically cease
forthedenouncing party atthetime offormal denunciation except asregards thetreatment received
orgranted with respect totheimport ofnegotiated products, which remains inforce foronefurther
year from thedate offormal denunciation.
(f) Economic complementarity Agreement No.26concluded between Bolivia andBrazil
on27January 1994
Liberalization programme (Articles 2and6,andAnnexes IandII)
Theprogramme isapplicable toaselected listofimports forwhich thesignatories grant tariff
preferences which willbeapplied totheratevalid atthetime ofsignature oftheAgreement.
Non-tariff restrictions
Thesignatories undertake toprevent theapplication ofmeasures thatmight stand intheway
ofreciprocal trade. They willalsorefrain from applying non-tariff restrictions tonegotiated products,
except those expressly mentioned intheSupplementary Notes totheAgreement andthose included
inArticle 50ofthe1980 Treaty ofMontevideo.
Regime ofOrigin (Annex III)
Inordertodeterminetheoriginofnegotiatedproducts,thesignatoriesestablishtheirownregime
which, asarule, coincides with theLAIA General Regime ofOrigin established byLAIA Committee
ofRepresentatives Resolution 78.
Safeguard clauses (Article 16)
Theapplication ofsafeguard clauses under thisAgreement isgoverned bytheLAIA Regional
Regime established byLAIA Committee ofRepresentatives Resolution 70.
Dispute settlement
Forthesettlement ofanydisputes which may arise inconnection with theinterpretation of
theprovisions oftheAgreement, with their application ornon-application, orinanyother connection,
thesignatories submit thecase totheprocedure laiddown inAnnex IVoftheAgreement.
ThisregimeprovidesfortheorganizationofconsultationsthroughtheAgreement'sAdministrative
Commission.WT/COMTD/7
Page 53
Ifthedispute cannot besettled through theabove procedure, theCommission immediately
appoints anarbitration panel, thecomposition andterms ofreference ofwhich aresetforth inthe
above-mentioned Annex IV.
Unfair trading practices andconditions ofcompetition
Thesignatories condemn allforms ofunfair trading practices andundertake toeliminate any
measures thatcould cause distortion tointernational trade. Accordingly, they undertake nottogrant
subsidies thataffect trade between thetwocountries asfrom theentry intoforce oftheAgreement
(seeChapter VII).
If,during thecourse ofreciprocal trade, situations ofdumping orother unfair trading practices
ordistortions deriving from theapplication ofexport subsidies orinternal subsidies with equivalent
effects should arise, thecountry affected may immediately request theAdministrative Commission
inwriting toorganize consultations with theother signatory country inorder tofindasolution.
Ifnounderstanding isreached within aperiod of30days following thereception oftheabove-
mentioned request, theaffected signatory mayapply anyrelevant measures provided forinitsdomestic
legislationthatarecompatiblewiththeCodeonAnti-Dumping,theCodeonSubsidiesandCountervailing
Measures, andtheCode onCustoms Valuation oftheGeneral Agreement onTariffs andTrade (GATT).
Validity (Article 45)
TheAgreement entered intoforce onthedayofitssignature andremained inforce, inprinciple,
until 31December 1994.
TheSecond Additional Protocol totheAgreement extended itsvalidity aswell asthevalidity
ofthepreferences agreed between itssignatories until 30June 1995.
(g) EconomicComplementarityAgreementNo.27,concludedbetweenBrazilandVenezuela
on15July 1994
Market access ofgoods (Article 2)
WiththeexceptionoftheprovisionsoftheSupplementaryNotestotheAgreement,eachsignatory
grants national treatment tothegoods oftheother party inconformity with Article IIIoftheGATT,
including itsinterpretative notes.
Liberalization programme (Articles 3and4)
Thesignatories agree togrant each other tariff preferences onaselective listofproducts in
theform ofapercentage reduction oftariffs onimports from third countries, valid asoftheentry of
thegoods intotheir respective territories.
Thelistsofnegotiated products arecontained inAnnexes IandIItotheAgreement andinclude,
inter alia,theproducts negotiated between thetwocountries inthePartial-Scope Agreement forthe
"Renegotiation ofconcessions granted intheperiod 1962/1980" (AAP.R/13) andinTrade Agreements
Nos. 5,13,16,18and27.
Thepreferences granted were initially valid until 31December 1994 (Article 8);their validity
wasextended until 30June 1995 through theSecond Additional Protocol totheAgreement, signed
on15November 1994.WT/COMTD/7
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Non-tariff restrictions
With theexception oftheSupplementary Notes totheAgreement, thesignatory countries must
refrain from adopting ormaintaining anyprohibition orrestriction ontheimport ofanygood from
theother signatory country orontheexport orsaleforexport ofanygood destined fortheterritory
oftheother signatory country, except asprovided intheGATT anditsrelevant instruments.
Regime ofOrigin (Article 10)
Inorder todetermine theorigin ofnegotiated products, thesignatory countries adopt theLAIA
General Regime established byLAIA Committee ofRepresentatives Resolution 78.
Safeguard clauses (Article 11)
Thesignatories adopt theRegional Regime ofSafeguards established byLAIA Committee of
Representatives Resolution 70until such time asthey adopt aSpecial Regime ofSafeguards forthe
Agreement inconformity with theprovisions oftheGATT.
Dispute settlement
Forthesettlement ofanydispute which may arise inconnection with theinterpretation ofthe
provisions oftheAgreement, with their application ornon-application orinanyother connection, the
signatories submit thecase totheprocedures laiddown inArticle 26.
This regime provides fortheorganization ofconsultations between theparties orviathe
Agreement 'sAdministrative Commission.
Ifthedispute cannot besettled through theabove procedures, theCommission immediately
appoints aPanel, thecomposition andterms ofreference ofwhich aregoverned bytheprovisions of
subparagraphs (c)and(d)oftheabove-mentioned Article 26.
Trade inservices (Article 22)
Thesignatories undertake toinitiate talks withaview toexamining thepossibility ofnegotiating
anagreement ontrade inservices, through theadoption ofanAdditional Protocol which would take
dueaccount oftheAgreement onTrade inServices oftheWorld Trade Organization andofthedifferent
regional agreements currently being negotiated inthatrespect, particularly intheframework ofthe
LAIA.
Unfair trading practices (Article 23)
Inconformity with their domestic legislation andwith theprovisions oftheGeneral Agreement
onTariffs andTrade (GATT), oftheAgreement onSubsidies andCountervailing Measures andof
theAgreement ontheImplementation oftheArticle VIofGATT 1994, thesignatories may establish
andapplyanti-dumpingandcountervailingdutiesinsituationswherepursuanttoanobjectiveexamination
based onpositive evidence itisdetermined thatimported products have been dumped orsubsidized
andthatthere isinjury orthreat ofinjury, anditcanbedemonstrated thatthere isacausal relationship
between thementioned practices (dumping orsubsidies) andtheinjury orthreat ofinjury.WT/COMTD/7
Page 55
Validity oftheAgreement (Article 32)
TheAgreement isvalid foranindefinite period oftime.
Denunciation (Articles 33and34)
Ifasignatory country wishes todenounce theAgreement, itmust sonotify theother signatory
atleast 90days prior tothedeposit ofthecorresponding instrument ofdenunciation with theLAIA
General Secretariat.
Therights acquired andtheobligations assumed under theAgreement willautomatically cease
forthedenouncing party atthetime offormal denunciation, except asregards thepreferential treatment
received orgranted with respect totheimport ofnegotiated products, which remains inforce forone
further year starting from thedate offormal denunciation.
Thepreferences granted forafixed period oftime expire asagreed, provided theexpiry date
falls within theone-year period referred toabove.
(h) Economic Complementarity Agreement No. 28,concluded between Ecuador and
Uruguay on1May 1994
Liberalization programme
Thesignatories grant each other atariff preference onreciprocal imports intheform ofa50per
centreduction ofthelevies applied toimports from third countries thatarenotmembers oftheLAIA
(Article 2).
This preference does notapply toproducts expressly exempted byboth countries inaccordance
with thelists contained inAnnex 1totheAgreement, ortoproducts negotiated previously inthe
Partial-Scope Agreement forthe"Renegotiation ofconcessions granted intheperiod 1962/1980"
(AAP:R 24),which enjoy thepreferential treatment setforth inAnnexes IIandIIIoftheAgreement
(Articles 2and3).
Thepreferences agreed under thementioned Articles remain valid until 30June 1995 (First
Additional Protocol signed on17November 1994).
Non-tariff restrictions
The signatory countries have agreed tothegradual andbalanced phasing outofexisting
restrictions onforeign trade andtheadoption ofregimes aimed ateliminating alllaws andregulations
preventing orimpairing access tomarkets through prohibitions, licences, import permits andanyother
obstacles tofreetrade (Article 6).They alsoundertake nottointroduce newrestrictions onreciprocal
trade.
Regime ofOrigin
Inorder todetermine theorigin ofnegotiated products, thesignatory countries adopt theLAIA
General Regime established byLAIA Committee ofRepresentatives Resolution 78(Article 23).WT/COMTD/7
Page 56
Safeguard clauses
Thesignatories adopt aRegional Regime ofSafeguards established inLAIA Committee of
Representatives Resolution 70.
Dispute settlement
Such disputes asmay arise intheimplementation oftheAgreement willberesolved through
direct negotiations between thesignatory countries (Article 22).
Should nosolution befound within aperiod of30days from thenotification ofthedispute,
extendable bymutual agreement, thesignatory countries willsubmit thedispute forconsideration by
theCouncil, asprovided inArticle 19,which, after assessing thesituation, willformulate relevant
recommendations foritsresolution within aperiod of60days. Tothatend, theCouncil mayestablish
orconvene panels ofexperts orgroups ofexperienced persons toactastechnical advisors.
TheCouncil willalsoapprove adefinitive regime fordispute settlement within sixmonths
ofitsestablishment.
Unfair trading practices
If,during thecourse ofreciprocal trade, situations ofdumping orunfair practices deriving
fromtheapplicationofexportsubsidiesshouldarise,thecountryaffectedmayapplymeasuresdetermined
byitsdomestic legislation.
Tothatend, countries mayimpose anti-dumping andcountervailing duties asprovided intheir
domestic legislation upon proof ofinjury tothedomestic industry orthreat thereof ormaterial retardation
ofsuch industry.
Innoinstance willtheabove-mentioned duties exceed themargin ofdumping ortheamount
ofthesubsidy, asapplicable; they willbelimited asfaraspossible totheamount necessary toavoid
theinjury, threat ofinjury orretardation.
Government procurement
Thesignatories willnegotiate, under conditions ofreciprocity andnon-discrimination between
suppliers inboth countries andother GATT contracting parties, aprogramme aimed atdeveloping
amethodology forthegradual harmonization ofgovernment procurement policies (Article 18).
Validity
This Agreement isvalid foranindefinite period oftime (Article 30).
Denunciation
Any ofthesignatory countries may denounce theAgreement bynotifying theother parties
180days prior tothedeposit ofthecorresponding instrument ofdenunciation with theLAIA General
Secretariat (Article 32).
Therights acquired andtheobligations assumed under theAgreement willautomatically cease
forthedenouncing party atthetime offormal denunciation, except asregards thetariff preferencesWT/COMTD/7
Page 57
received orgranted, which remain inforce foronefurther year from thedateofformal denunciation,
orwith respect toother areas forwhich adeadline hasalready been established.
(i) EconomicComplementarityAgreementNo.25,concludedbetweenBoliviaandParaguay
on15March 1994
Liberalization programme
Thesignatory countries grant each other apercentage preference applicable tothetariff inforce
atthetime ofthesignature oftheAgreement, andundertake torefrain from imposing ontheimport
ofnegotiated products anylevies other than their customs tariff (Articles 5and6).
Tothatendthey incorporated intotheAgreement thepreferences agreed bytheir respective
governments regarding theimport ofproducts negotiated inthePartial-Scope Agreement forthe
"Renegotiation ofconcessions granted intheperiod 1962/1980" (AAP.R 17)with themodifications
andadditions agreed inJune 1994 (First Additional Protocol signed on11November 1994).
Trade restrictions
Thesignatories undertake toprevent theapplication ofsuch measures asmayimpede reciprocal
trade andtorefrain from applying non-tariff restrictions ontheimport ofproducts included inthe
Agreement (Article 7).
Regime ofOrigin
Inorder todetermine theorigin ofnegotiated products, thesignatory countries adopt theLAIA
General Regime established inLAIA Committee ofRepresentatives Resolution 78(Article 18).
Safeguard clauses
Thesignatories adopt theRegional Regime ofSafeguards established inLAIA Committee of
Representatives Resolution 70.
Dispute settlement
Forthesettlement ofsuch disputes which may arise inconnection with theinterpretation of
theprovisions oftheAgreement, with their application ornon-application, orwith anyother disputes
apart from those provided forintheChapter onunfair trading practices, thesignatories submit the
case totheprocedures laiddown inAnnex II.
This regime provides foramechanism ofconsultations ornegotiations either directly between
theparties orwithin theAgreement 'sAdministrative Commission.
Ifnomutually satisfactory solution canbefound, thedispute willbesubmitted forconsideration
anddecision toanArbitral Panel, thecomposition andterms ofreference ofwhich aresetforth in
Articles 3onwards oftheabove-mentioned Annex IItotheAgreement.
Unfair trading practices andconditions ofcompetition
Thesignatories condemn allforms ofunfair trading practices andundertake toeliminate any
measures thatmight cause distortions tointernational trade. Tothatend,theywillrefrain from grantingWT/COMTD/7
Page 58
subsidies thataffect trade between thetwocountries asfrom theentry intoforce oftheAgreement
inaccordance with theprovisions oftherelevant Chapter (Article 21).
If,during thecourse ofreciprocal trade, situations ofdumping andunfair trading practices,
ordistortions deriving from theapplication ofexport subsidies orequivalent internal subsidies should
arise, theaffected country mayimmediately submit awritten request totheAdministrative Commission
forconsultations with theother signatory with aview tofinding asolution. Ifanagreement isnot
reached with aperiod of30days from thereception ofthementioned request, theaffected country
may apply appropriate measures determined byitsdomestic legislation provided they arecompatible
with therelevant regulations adopted within theframework oftheGeneral Agreement onTariffs and
Trade (GATT) (Article 22).
Validity
Article 53ofACE 29provides foritsentry intoforce onthedayofitssignature foraperiod
lasting until 31December 1994.
However, thesignatories agreed toextend thevalidity oftheAgreement until 30June 1995
(Second Additional Protocol, signed on15November 1994).
Denunciation
Ifasignatory country wishes todenounce theAgreement, itmust sonotify theother signatories
90days prior tothedeposit ofthecorresponding instrument ofdenunciation with theLAIA General
Secretariat (Article 55).
Therights acquired andtheobligations assumed under theAgreement willautomatically cease
forthedenouncing party atthetime offormal denunciation, except asregards thepreferential treatment
received andgranted with respect totheimport ofnegotiated products, which remains inforce for
onefurther year from thedate oftheformal denunciation (Article 56).
(j) Economic Complementarity Agreement No. 30,concluded between Ecuador and
Paraguay on15September 1994
Liberalization programme
TheGovernment 'sofEcuador andParaguay agreed togrant each other atariff preference on
reciprocal imports intheform ofa40percentreduction ofthelevies applied toimports from third
countries thatarenotmembers oftheLAIA (Article 2).This tariff preference does notapply toproducts
mentioned inthelistsofexceptions foreach party tobeincorporated intotheAgreement through the
signature ofanAdditional Protocol.
Theproducts negotiated selectively between thetwocountries andlisted inAnnexes IandII
oftheAgreement, which include, inter alia,theproducts mentioned inthePartial Scope Agreement
forthe"Renegotiation ofconcessions granted intheperiod 1962/1980" (AAP.R 19),willbenefit from
thetariff concessions setforth inthesaidAnnexes (Article 3).
Thetariff preferences remain valid until 30June 1995 (First Additional Protocol, signed on
17November 1994).WT/COMTD/7
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Non-tariff restrictions
Thesignatories may apply toimports ofnegotiated products only those restrictions which are
declared intheSupplementary Notes oftheAgreement, andundertake torefrain from introducing any
new restrictions toreciprocal trade orfrom tightening their declared restrictions (Article 7).
Regime ofOrigin
Inorder todetermine theorigin ofnegotiated products, thesignatory countries adopt theLAIA
General Regime established byLAIA Committee ofRepresentatives Resolution 78(Article 15).
Safeguard clauses
Where imports arecarried outinconditions orquantities thatthreaten tocause oractually cause
seriousdamagetothedomesticindustryforsimilarordirectlycompetitivegoods,thesignatorycountries
may apply safeguards subject totheterms andconditions setforth inChapter VoftheAgreement.
TheAgreement setsforth thefactors tobetaken intoaccount indetermining serious injury
orthreat ofserious injury (Article 17)andprovides forthenegotiation ofentitlements inorder toavoid
interrupting trade flows oftheproduct inquestion (Article 18). Italsosetsadeadline forthevalidity
ofthesafeguard clause invoked (one year) andprovides foritspossible extension foranadditional
consecutive period ofoneyear (Article 19).
Settlement ofdisputes
ACE 30does notcontain anyspecific rules with respect tothesettlement ofdisputes thatmay
arise between theparties inthecourse ofitsimplementation.
However, one ofthefunctions oftheAdministrative Commission created pursuant to
Chapter XIV oftheAgreement istoprovide thegovernments ofthesignatory countries with such
proposals asitdeems appropriate forthesettlement ofdisputes arising from theinterpretation and
application oftheAgreement.
Validity
Five years, automatically extendable foridentical periods oftime except where oneofthe
signatories expressly requests otherwise within 90days prior totheexpiry date (Article 33).
Denunciation
IfasignatorycountrywishestowithdrawfromtheAgreementitmustprovidetheothersignatory
with formal notification tothateffect andsubmit theinstrument ofdenunciation totheLAIA General
Secretariat within 60days (Article 34).
Therights acquired andtheobligations assumed under theAgreement willautomatically cease
forthedenouncing party atthetime offormal denunciation, except asregards thepreferences received
orgranted under themechanisms provided fortherein, which remain inforce foronfurther yearstarting
from thedate oftheformal denunciation.WT/COMTD/7
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(k) EconomicComplementarityAgreementNo.31,concludedbetweenBoliviaandMexico
on10September 1994
TheGovernments oftheRepublic ofBolivia andtheUnited Mexican States, inconformity
with their decision todevelop, inter alia,their rights andobligations under theGeneral Agreement
onTariffs andTrade (GATT), the1980 Treaty ofMontevideo, andother bilateral andmultilateral
integration andcooperation instruments, concluded aFree Trade Agreement, registered with theLAIA
asPartial-Scope Economic Complementarity Agreement No.31.
Given thewide range ofsubjects covered bytheAgreement, thedescription below ischiefly
limited totheprovisions concerning trade ingoods between theparties.
National treatment
Each party willaccord national treatment forgoods from theother party inconformity with
Article IIIoftheGATT including itsinterpretative notes, which forms anintegral partoftheAgreement
(Article 3-02).
Tariff cutting
Pursuant toArticle 3-03, each party willprogressively phase outitstariffs inaccordance with
different tariff-cutting categories until theyhave eliminated them completely forthedifferent products
within aseries ofdeadlines ranging from 1January 1995 to1January 2009.
The above-mentioned Article also stipulates thataparty may adopt ormaintain tariffs in
conformity with itsrights andobligations under theGATT onoriginating goods included under the
tariff headings expressly setapart inthetariff-cutting listofeach party.
Thetariff-cutting programme covers tariff preferences previously negotiated orgranted by
theparties within theframework oftheLAIA, which willcease tobevalid intheir respective instruments
asofthedate ofentry intoforce oftheAgreement.
Non-tariff measures
Except asprovided inArticle XIoftheGATT including itsinterpretative notes, which has
been incorporated intoandforms anintegral partofthisAgreement, theparties must refrain from
adopting ormaintaining anyprohibition orrestriction whatsoever onimports ofanygoods from the
territory oftheother party oronexports orsaleforexport ofanygood destined fortheterritory of
theother party (Article 3.08).
Rules ofOrigin
Chapter VoftheAgreement setsforth therules governing thedetermination oforigin ofgoods
traded between thetwocountries.
Article 5-03 stipulates thatagood shall beconsidered asoriginating intheterritory ofaparty
when:
- Itisobtained orproduced wholly within theterritory ofoneorboth parties in
accordance with thedefinition provided inArticle 5-01;WT/COMTD/7
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- itisproduced intheterritory ofoneorboth parties using exclusively materials which
qualify under thisChapter asoriginating;
- itisproduced intheterritory ofoneorboth parties using non-originating materials
thatmeet change oftariff classification andother requirements assetforth intheAnnex
tothisArticle, andthegood itself complies with theother relevant provisions ofthis
Chapter;
- itisproduced intheterritory ofoneorboth parties using non-originating materials
which meet change intariff classification andother requirements, andwhen thegood
itself complies with requirements regarding thevalue ofregional content asspecified
intheAnnex tothisArticle andwith theother relevant provisions ofthisChapter;
- itisproduced intheterritory ofoneorboth parties andmeets theregional content
value requirement specified intheAnnex tothisArticle aswell astheother relevant
provisions ofthisChapter;
- or,with theexception ofthegoods covered byChapters 61and63oftheHarmonized
System, thegood isproduced intheterritory ofoneorboth parties, butoneormore
ofthenon-originating materials used initsproduction does notmeet thechange in
tariff classification criterion because:
(i) Itwasimported intotheterritory ofoneoftheparties prior toassembly or
disassembled butwas classified asanassembled good inconformity with
General Rule 2(a)oftheHarmonized System; or
(ii) theheading forthegood inquestion isthesame forthegood itself asforits
parts, andthatheading isnotdivided intosub-headings orthesub-heading is
thesame forthegood itself asforitsparts,
Provided thevalue oftheregional content ofthegood, determined inaccordance with
Article 5-04, isnotlessthan 50percent, except where otherwise stipulated inArticles 5-15 or5-20,
when using thetransaction value method, orlessthan 41.66 percentwhen using thenetcostmethod,
andthegood complies with theother applicable provisions ofthisChapter.
Forthepurposes ofthisChapter, theproduction ofagood using non-originating materials
thatmeet thechange intariff classification andother requirements asspecified intheAnnex tothis
Article must take place wholly intheterritory ofoneorboth parties, andallregional content value
requirements foragood must befulfilled intheir totality intheterritory ofoneorboth parties.
TheAnnex toArticle 5-03 referred toabove contains thespecific rules oforigin fortheproducts
mentioned therein.
Safeguard measures
Theparties may apply aregime ofsafeguards toimports ofgoods under thetariff-cutting
programme onthebasis ofclear andstrict criteria andforaspecific period oftime (Article 7-02).
Such measures may bebilateral ifthevolume ofimports ofoneorseveral goods benefiting
from thetariff-cutting programme increases atarateandinconditions which cause serious injury or
threat ofserious injury tothedomestic industry forlike, similar ordirectly competitive products, subject
totherules setforth inArticle 7-03.WT/COMTD/7
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Fortheapplication ofcomprehensive measures, theparties maintain their rights andobligations
with respect totheapplication ofsafeguards inconformity with Article XIX oftheGATT.
Dispute settlement
Thepartieswillalwaysendeavourtoreachanunderstandingontheinterpretationandapplication
oftheAgreement through cooperation andconsultations, andwilldotheir utmost toachieve amutually
satisfactory solution toanyissue thatmight affect itsoperation (Article 19-01).
Should anydisputes arise between theparties ontheapplication orinterpretation ofthe
Agreement, orshould oneparty consider thatameasure applied orplanned bytheother party is
inconsistent with itsobligations under theAgreement ormight leadtotermination orimpairment for
expressly defined reasons, theprocedures setforth inChapter XIX willapply.
Such disputes asmay arise inconnection with theAgreement, with theGATT andwith
agreements negotiated inconformity with theGATT may besettled intheforum ofthecomplaining
party'schoice.However,onceadisputesettlementprocedurehasbeeninitiatedthroughtheCommission,
good offices, conciliation, ormediation asprovided forinArticle 19-05, orthrough aGATT procedure,
theuseofaforum other than theoneselected isprecluded.
Unfair international trade practices
Theparties condemn allunfair international trade practices andrecognize theneed toeliminate
export subsidies andother domestic policies thatcause trade distortions (Article 8-02).
Theparties undertake torefrain from granting new direct subsidies forexports ofgoods to
theterritory oftheother party andtoeliminate those which stillexist upon entry intoforce ofthis
Agreement (Article 8-03).
Moreover, they willapply their legislation with respect tounfair international trade practices
inconjunction with theprovisions ofChapter VIII oftheAgreement andwith theprovisions and
procedures oftheAgreement ontheImplementation ofArticle VIoftheGATT, andintheAgreement
ontheimplementation ofArticles VI,XVI andXXIII oftheGATT (Article 8-04)
Services
This subject isdealt withinageneral context inachapter entitled "General Principles regarding
Trade inServices" which establishes:
- Thelegal framework forthesectoral negotiation ofservices;
- thescope ofso-called trade inservices initsvarious forms;
- commitments withrespect to:national treatment, most-favoured-nation treatment, local
presence,bindingofmeasures,quantitativerestrictions,futureliberalization,procedures,
technicalcooperation,recognitionofprofessionalqualificationsandgrantingoflicences.
Telecommunications
TheAgreement establishes thebasis onwhich toguarantee access topublic telecommunications
networks andservices onreasonable andnon-discriminatory terms andconditions.WT/COMTD/7
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Atthesame time, itcontains provisions designed toguarantee security andconfidentiality of
messages.
Itsetsforth acommitment toavoiding, within theframework ofstandardization measures,
anytechnical damage ortechnical andelectromagnetic interference, andguarantees user security.
Professional services
TheAgreement establishes rules governing thegradual phasing-out, intheterritories ofthe
parties, ofbarriers totrade inprofessional services.
Temporary entry ofbusinessmen
TheAgreement aims tofacilitate thetemporary entry ofbusinessmen from thethree countries
asameans offulfilling itsobjective ofintensifying commercial business relations ingeneral andmaking
trade relations between thesignatory countries more secure.
Itshould bepointed out,however, thatthisChapter alsotakes account oftheneed toguarantee
border security andtoprotect employment ofcitizens intheir respective territories. Thus, theabove
provisions aresubject tolegislation onmigrations.
Financial services
Themain features are:
- Thescope ofapplication oftheAgreement islimited exclusively totheprivate sector
andexcludes activities thatareconsidered public.
- Theright ofestablishment, national treatment andmost-favoured-nation treatment are
confirmed without limitations.
- Prudential measures arerecognized asaright ofthemember countries without being
regarded asrestrictive measures.
- TheChaptercontainsacommitmenttotransparency,subjecttoanumberofreservations
with regard toaspects ofconfidentiality specific tothefinancial sector.
- AWorking Group onFinancial Services iscreated tomonitor theapplication ofthe
Chapter anditssubsequent development.
- Provisions aremade forsafeguard measures incases where thegranting ofbenefits
under thisChapter causes serious economic andfinancial trouble.
Exceptions
Article XXofGATT anditsinterpretative notes areincorporated intotheAgreement andform
anintegral partthereof with respect to:
- Thesecond part(trade ingoods), except where itsprovisions apply toservices orto
investment; and
- thefourthpart(technicalbarrierstotrade),exceptwhereitsprovisionsapplytoservices.WT/COMTD/7
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Validity
TheAgreement enters intoforce on1January 1995 following anexchange ofcommunications
certifying thatthenecessary legal formalities have been completed (Article 21-04).
Denunciation
Either party maydenounce theAgreement. Thedenunciation comes intoeffect 180days after
itsnotification totheother party unless theparties agree onanother period oftime.
(1) Economic Complementarity Agreement No.32,concluded between Chile andEcuador
on20December 1994
Liberalization programme
Thesignatories agree tofreetheir reciprocal trade from alllevies by1January 2000 atthe
latest, inconformity withatimetable ofautomatic, across-the-board reductions tobeapplied asfollows:
(i) General reduction (Article 3(b)). Reduction oflevies applied tothird countries infour
consecutive annual stages starting on1January 1995 andreaching zero percent by
1January 1998;
(ii) special tariff cuts(Article 3(c)). Reduction oflevies applied tothird countries fora
listofproducts (Annex 2oftheAgreement) insixconsecutive annual stages starting
on1January 1995 andreaching zero tariff asof1January 2000;
(iii) products forming part ofthePartial-Scope Agreement forthe"Renegotiation of
preferences granted intheperiod 1962/1980" (AAP.R 15),concluded between thetwo
countries willbegranted areciprocal tariff preference of100percentstarting onthe
date ofsignature ofACE 32(Annex 1);
(iv) motor vehicle sector. Imports ofunused products inthissector (Annexes 4and5of
theAgreement) willbefreed from levies inthree consecutive annual stages starting
on1January 1995 andreaching zero tariff asof1January 1997;
(v) exceptions. Theliberalization programme willnotbeapplied toproducts contained
inthelistofexceptions common toboth countries appearing inAnnex 3tothe
Agreement.
Non-tariff restrictions
Theproducts included intheliberalization programme willbefreed ofallnon-tariff restrictions
asof1January 1995, with theexception ofthose referred toinArticle 50ofthe1980 Treaty of
Montevideo. Atthesame time, thesignatories undertake nottointroduce newrestrictions toreciprocal
trade (Article 2).
Regime ofOrigin
Inorder todetermine theorigin ofnegotiated products, thesignatory countries adopt theLAIA
General Regime established inLAIA Committee ofRepresentatives Resolution 78(Article 7).WT/COMTD/7
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Without prejudice tothatregime theAgreement 'sAdministrative Commission willhave the
power toestablish andmodify therules oforigin forspecific products orsectors thatdonotcorrespond
totheLAIA General Regime ofOrigin.
Safeguard clauses
Subject toprior notice, thesignatories mayapply toimports carried outunder theliberalization
programmetheLAIARegionalRegimeofSafeguardsestablishedbyLAIACommitteeofRepresentatives
Resolution 70,within thelimits established inArticle 13,subparagraphs (a)and(b)ofACE 32.
Dispute settlement
Forthesettlement ofanydisputes which may arise inconnection with theinterpretation of
theprovisions oftheAgreement along with their application ornon-application, orinanyother
connection apart from unfair trading practices (Chapter VIofACE 32),thesignatories submit thecase
totheprocedures setforth inArticle 32oftheAgreement.
This regime provides fortheorganization ofconsultations either directly between theparties
orthrough theAgreement 'sAdministrative Commission.
Ifthedispute cannot besettled through theabove channels, theAdministrative Commission
immediately appoints anarbitration panel, thecomposition interms ofreference ofwhich setforth
intheabove-mentioned Article 32.
Unfair trading practices
Article 14ofACE 32stipulates thatif,during thecourse ofreciprocal trade, situations of
dumping orother unfair trading practices ordistortions deriving from theapplication ofexport subsidies
orinternal subsidies with equivalent effects should arise, thecountry affected may apply measures
determinedbyitsdomesticlegislation.Atthesametime,andwithoutprejudicetotheabove,information
willbeexchanged through thecompetent national bodies asindicated inArticle 33oftheAgreement.
Thetwocountries undertake toapply their rules withrespect toanti-dumping andcountervailing
duties andadvalorem surcharges inconformity with theGeneral Agreement onTariffs andTrade
(GATT), andwilladopt asareference theGATT Codes onAnti-Dumping andSubsidies.
Thesignatories recognize thatpublic pricing policies mayhave adistorting effect onbilateral
trade. Consequently they agree nottoresort topublic pricing policies andpractices thatmight cancel
orundermine thebenefits deriving directly orindirectly from theAgreement (Article 15).
Government procurement
TheAgreement 'sAdministrative Commission willdefine, during thefirstyear ofvalidity of
theAgreement, thescope andconditions governing government procurement between thesignatories.
Inthatconnection, dueaccount willbetaken ofthecriteria established intheGeneral Agreement on
Tariffs andTrade (GATT) toensure thatthesignatories enjoy open, transparent, fairandcompetitive
access togovernment procurement (Article 17).
Services
Thesignatories willpromote theimprovement ofconditions aimed atfacilitating thesupply
ofservices from onecountry toanother, taking dueaccount oftheGeneral Agreement onTrade inWT/COMTD/7
Page 66
Services oftheUruguay Round. Tothatendthey instruct theAdministrative Commission tosubmit,
atitsfirst meeting, adraft protocol onthenegotiation ofservices (Article 24).
Validity
TheAgreement willbevalid from themoment ofitssignature foranindefinite period oftime.
Denunciation
Ifasignatory country wishes towithdraw from theAgreement, itmust sonotify theother
signatory 180days prior tothedeposit ofthecorresponding instrument ofdenunciation with theLAIA
General Secretariat (Article 35).
Therights acquired andtheobligations assumed under theAgreement willautomatically cease
forthedenouncing party atthetime offormal denunciation, except asregards thetreatment received
orgranted with respect totheimport ofnegotiated products, which remain inforce foronefurther
year starting from thedateofdeposit ofthecorresponding instrument ofdenunciation, provided the
signatory countries donotagree onanother period oftime atthemoment ofdenunciation.
(m) Economic Complementarity Agreement No.33,concluded between Colombia, Mexico
andVenezuela on13June 1994
Most oftheprovisions ofthisAgreement, known byitssignatories asthe"Free Trade
Agreement",areverysimilartothoseofEconomicComplementarityAgreementNo.31betweenBolivia
andMexico described above.
Thus, theobservations concerning thechapters onnational treatment, non-tariff measures,
safeguard measures anddenunciation inACE 31arealsovalid forACE 33.
Asregardaccessofgoodstothemarketsofthesignatorycountries,therelevantchapterstipulates
thatexcept where otherwise provided intheAgreement, theparties willprogressively phase outtheir
import taxes onoriginating goods in10equal consecutive stages, with thefirst stage beginning on
1January 1995 andthenine remaining stages beginning on1July1996, achieving total liberalization
asof1July 2004.
Notwithstanding, aparty mayadopt ormaintain import taxes inaccordance with itsobligations
andrights under theGATT ongoods explicitly identified initsschedule intheprogramme ofreductions
until otherwise agreed bytheparties inconformity with theprovisions oftheAgreement.
There arealsovarious situations inwhich theimport taxtobeapplied isdetermined according
tospecific conditions assetforth inAnnex 1toArticle 3-04.
ACE 33incorporates thetariff preferences previously negotiated between theparties aswell
astheRegional Tariff Preference (PAR) with respect tothetariff universe andtheextension ofthe
PAR between Mexico andVenezuela, assetforth intheabove-mentioned Annex 1toArticle 3-04.
Thepreferences previously negotiated andgranted between theparties intheframework of
theLAIA lapse asofthedate ofentry intoforce oftheAgreement.WT/COMTD/7
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Regime ofOrigin
Theregime oforigin setforth inACE 33isessentially thesame astheregime described above
with respect toACE 31.
There is,however, onedifference worth mentioning: inACE 33,when oneormore ofthe
non-originating materials used intheproduction ofthegoods donotmeet thechange intariff
classification criterion, theyareconsidered tobeoriginating materials ifthevalue oftheregional content
isnotlessthan thedifferent percentages established fortheproducts intheAnnex toArticle 6-03 or
inArticle 6-18.
Unfair trading practices
Therules applicable tounfair international trading practices aresetforth inChapter IXofthe
Agreement.
Thesaidchapter stipulates thatasofthedateofentry intoforce oftheAgreement, theparties
willrefrain from granting subsidies onexports ofindustrial goods destined forthemarkets oftheparties
(Article 9-02).
Subsidies ontheexport ofagricultural goods willgradually bephased outinaccordance with
Article 5-08 oftheAgreement.
Iffollowing anobjective examination based onpositive evidence itisdemonstrated thatimports
have been dumped orexport subsidies applied which distort thenormal conditions ofcompetition, and
itisshown thatthere hasbeen damage orthreat ofdamage tothedomestic industry forlikeorsimilar
goods, theimporting party may establish andapply countervailing quotas determined byitsdomestic
legislation andinaccordance withtheAgreement aswellastheprovisions oftheGATT, theAgreement
ontheImplementation ofArticle VIoftheGATT (Code onAnti-Dumping), andtheAgreement on
theInterpretation andImplementation ofArticles VI,XVI andXXIII oftheGATT (Code onSubsidies
andCountervailing Duties) (Article 9-03).
Services
Thissubject isdealt withinageneral context inachapter entitled "General Principles Regarding
Trade inServices" which establishes:
- Thelegal framework forthesectoral negotiation ofservices;
- thescope ofso-called trade inservices initsvarious forms;
- agreements on: national treatment, most-favoured-nation treatment, non-obligatory
local presence, binding ofmeasures, restrictions onnon-discriminatory quantitative
measures, future liberalization, reciprocity andoverall balance, technical cooperation,
andgranting oflicences andcertificates.
Sectoral negotiations aretotakeplace over aperiod ofeight months starting from thesignature
oftheAgreement.WT/COMTD/7
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Transport
Provisions aremade forfreeaccess tothecargo transported byships operating under thenational
flagaswellasthose operated, chartered orleased bynational shipping companies andthose considered
tobenational-flag carriers under thelegislation ofeach country.
With respect toairtransport, noprovision ismade fortheapplication oftheAgreement to
national andinternational airtransport services. Forthemoment, itwillonly apply tomajor aircraft
repair andmaintenance services, other specialized services andcomputerized repair services.
Asregards landtransport, theparties willstudy measures aimed atenhancing itsdevelopment.
Inthefield ofmultimodal transport, therules were harmonized where necessary.
Telecommunications
TheAgreement establishes thebasis onwhich toguarantee access topublic telecommunication
networks andservices onreasonable andnon-discriminatory terms andconditions.
Atthesame time, itcontains provisions designed toguarantee security andconfidentiality of
messages.
Itsetsforth acommitment toavoiding, within theframework ofstandardization measures,
anytechnical damage ortechnical andelectromagnetic interference, andguarantees user security.
TheAgreement provides fortheliberalization oftrade invalue-added services, with afew
temporary exceptions inthevideotext andimproved packet-switching services.
Professional services
TheAgreement setsforth therules governing thegradual phasing out,intheterritories ofthe
Parties, ofbarriers totrade inprofessional services.
Temporary entry ofbusinessmen
TheAgreement aims tofacilitate thetemporary entry ofbusinessmen from thethree countries
asameans offulfilling itsobjective ofintensifying commercial business relations ingeneral andmaking
trade relations between thesignatory countries more secure.
Itshould bepointed out,however, thatthisChapter alsotakes account oftheneed toguarantee
border security andtoprotect employment ofcitizens intheir respective territories. Thus, theabove
provisions aresubject tolegislation onmigrations.
Financial services
Themain features are:
- Thescope ofapplication oftheAgreement limited exclusively totheprivate sector
andexcluding activities thatareconsidered public.
- Theright ofestablishment, national treatment andmost-favoured-nation treatment are
confirmed without limitations.WT/COMTD/7
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- Prudential measures arerecognized asaright ofthemember countries without being
regarded asrestrictive measures.
- TheChaptercontainsacommitmenttotransparency,subjecttoanumberofreservations
with regard toaspects ofconfidentiality specific tothefinancial sector.
- AWorking Group onFinancial Services iscreated tomonitor theapplication ofthe
Chapter anditssubsequent development.
- Provisions aremade forsafeguard measures incases where thegranting ofbenefits
under thisChapter causes serious economic andfinancial trouble.
- Thecountries willsubmit their reservations regarding general commitments within
aperiod ofeight months following theentry intoforce oftheAgreement.
Exceptions
Article XXoftheGATT anditsinterpretative notes areincorporated intotheAgreement and
form anintegral partthereof with respect toChapters IIandIX,except where itsprovisions apply
toservices orinvestment, andtoChapter XIV except where itsprovisions apply toservices.
Validity
Finally, ACE 33enters intoforce on1January 1995 following anexchange ofcommunications
certifying thatthenecessary legal formalities have been completed, andwillremain inforce fora
minimum ofthree years.
Once thattime period haselapsed, itsduration willbeindefinite.
2.2.3 Agreements concluded byParaguay
TheRepublic ofParaguay concluded Economic Complementarity Agreements with Argentina
on28November 1989 (Agreement No.13), with Bolivia on15March 1994 (Agreement No.29),
with Ecuador on15September 1994 (Agreement No.30),aswellasAgreement No.18withArgentina,
Brazil andUruguay on29November 1991 onthecreation oftheSouthern Common Market
(MERCOSUR).
ACE 13andACE 18were duly included inthereports submitted totheGATT fortheperiods
covering their respective dates ofsignature.
Asregards theother twoAgreements (Nos. 29and30), they areincluded inthesection on
new agreements ofthisreport under subparagraphs 2(i)and2(j).
2.2.4 Lapsed Economic Complementarity Agreements
With thesignature ofanew economic complementarity agreement between Argentina and
Ecuador on15March 1993 (seeAgreement No.21,subparagraph 2(a)), Economic Complementarity
Agreement No.3,concluded between thetwocountries on24May 1984, wasrendered void.WT/COMTD/7
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2.3 Agricultural agreements (Annex 9)
During theperiod covered bythisreport, three new countries officially acceded tothe
Partial-Scope Agreement fortheliberalization andexpansion ofintraregional trade inseeds, concluded
on22November 1991 between Argentina, Bolivia, Brazil, Colombia, Chile, Paraguay, Peru and
Uruguay.
Thethree newparties areEcuador, Cuba andVenezuela which, bydepositing their instruments
ofaccession on26August 1993, 19January 1994 and14April 1994 respectively, assumed allofthe
obligations andcommitments deriving from theAgreement andacquired alloftherights established
therein fortheother parties.
2.4 Other types ofpartial-scope agreement (Annex 10)
2.4.1 Agreements signed under Article 13ofthe1980 Treaty ofMontevideo
(a) Sanitary andPhytosanitary Agreement (AAP.PC/4) concluded between Argentina,
Brazil, Paraguay andUruguay on18May 1994
Basic rights andobligations
Thesignatories have theright toadopt such sanitary andphytosanitary measures asmay be
necessary toprotect thelifeandhealth ofhuman beings andanimals, topreserve plant health andto
avert theharmful effects ofinputs used inagricultural andlivestock protection andproduction.
They willensure thatthemeasures arenotapplied toends other thanthose specified, thatthey
arebased onexisting scientific principles, andthattheydonotdiscriminate arbitrarily between countries
inwhich likeorsimilar conditions prevail orbetween their own territory andtheterritory ofanother
signatory.
Validity
This Agreement isvalid foranindefinite period oftime, andmay berevised infullorinpart
subject toagreement between itssignatories.
Denunciation
Ifacountry wishes todenounce theagreement itmust notify itsdecision 180days prior to
thedeposit ofitsinstrument ofdenunciation with theLAIA General Secretariat.
Thefollowing annexes form partoftheAgreement:
(i) Definitions;
(ii) transparency ofsanitary andphytosanitary regulations;
(iii) control, inspection andapproval procedures; and
(iv) procedures forthetechnical analysis ofdisputes.WT/COMTD/7
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(b) Partial-Scope Agreement ontheFacilitation ofTrade (AAP.PC/5) concluded between
Argentina, Brazil, Paraguay andUruguay on18May 1994
ThepurposeoftheAgreementistoestablishthetechnicalandoperationalarrangementsgoverning
integrated border controls between itssignatories.
The Agreement contains provisions regarding definitions (Chapter I),general control
arrangements (Chapter II),collection oftaxes, feesandother levies (Chapter III),officials (Chapter IV),
offences andviolations committed byofficials intheintegrated control areas (Chapter V),and
installations, material, equipment andgoods they require tofulfil their duties (Chapter VI).
TheAgreement enters intoforce onthedayofitssignature foranindefinite period oftime.
Onthesame date, thesignatory countries signed theFirst Additional Protocol, known asthe
"Recife Agreement", concerning operational procedures fortheregulation ofcustoms control.
(c) Partial-Scope Agreement ontheLiberalization ofTrade inHydrocarbons (AAP.PC/6),
concluded between Argentina andBolivia on18May 1994
Liberalization ofproducts
Theparties agree tothetotal andreciprocal elimination oflevies andtorefrain from applying
anynew non-tariff restrictions onimports ofproducts included intheAgreement (Annex I).
Regime ofOrigin
Inorder todetermine theorigin ofnegotiated products, theparties adopt theLAIA General
Regime ofOrigin established byLAIA Committee ofRepresentatives Resolution 78.
Safeguard clauses
Theparties may apply safeguard clauses inaccordance with theRegional Regime established
byLAIA Committee ofRepresentatives Resolution 70.
Settlement ofdisputes
Such disputes asmayarise between theparties with respect totheinterpretation orapplication
oftheAgreement willbesolved through direct negotiations between thesignatory countries, which
may usetheservices ofexperts andtechnical specialists.
Unfair trading practices
Thesignatory countries willobserve thecriteria andprocedures established intheGATT and
itsCodes.
Validity
TheAgreement enters intoforce onthedate ofitssignature. Theelimination oflevies on
imports offats, oilsandlubricants andother hydrocarbon derivatives comes intoeffect automatically
120days after thedate ofsignature.WT/COMTD/7
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(d) Partial-Scope Agreement ontheFacilitation ofTransport ofDangerous Goods
(AAP.PC/7), concluded between Argentina, Brazil, Paraguay and Uruguay on
30December 1994
This Agreement regulates thetransport ofdangerous goods between theStates parties of
MERCOSUR, andcontains theoperating standards forland transport (Annex I)andthetechnical
standards, definition andclassification ofdangerous goods (Annex II).
Expert Commissions willbesetupinorder todraw up,revise andupdate theAnnexes tothe
Agreement, andwillmeet atintervals ofnomore than twoyears.
(e) Partial-Scope Agreement onthefacilitation ofmultimodal transport ofgoods
(AAP.PC/8), concluded between Argentina, Brazil, Paraguay and Uruguay on
30December 1994
ThisAgreement applies tocontracts forthemultimodal transport ofgoods between thesignatory
countries inconformity with theestablished rules regarding documentation, responsibility andclaims
linked tothedifferent operations.
Such disputes asmayarise between theparties inconnection withtheapplication, interpretation
ornon-application oftherules setforth intheAgreement willbesolved through direct negotiations.
Should such negotiations failtoachieve anagreement, theprocedures setforth intheDispute
Settlement Regime oftheTreaty ofAsunción willbeapplied.
Multimodal transport ofdangerous goods willbegoverned bytheprovisions ofthe"Agreement
ontheTransport ofDangerous Goods within MERCOSUR" andoftheICAO international airtransport
regulations andtheIMO maritime transport regulations.
The qualification ofdangerous goods will bebased ontherelevant United Nations
recommendations.
2.4.2 Agreements concluded under Article 14ofthe1980 Treaty ofMontevideo
(a) Agreement onInternational Land Transport (AAP.A14TM/3), concluded between
Argentina, Bolivia, Brazil, Chile, Paraguay, Peru andUruguay
First Additional Protocol
The First Additional Protocol onviolations andsanctions, recorded asAnnex IVofthe
Agreement, wassigned on15April 1994.
Itcontains rules with respect totheresponsibility oftheinternational land transport agents,
tothedefinition ofviolations andtheir classification, andtothesanctions tobeapplied inaccordance
with thelevel ofoffence orviolation.
(b) Partial-Scope Agreement onCooperation andTrade inGoods used forEnvironmental
ConservationandProtection(AAP.A14TM/6),concludedbetweenArgentinaandBrazilWT/COMTD/7
Page 73
Protocol ofAccession byUruguay
Through aProtocol ofAccession signed on15July1994, theGovernments ofArgentina, Brazil
andUruguayformalizedtheaccessionoftheEasternRepublicofUruguaytothePartial-ScopeAgreement
onCooperation andTrade inGoods used forEnvironmental Conservation andProtection.
Inconformity withArticle 30oftheAgreement, Uruguay willexempt from levies andnon-tariff
restrictions theimport ofproducts listed inthesaidProtocol.
First Additional Protocol
On8July1993, theGovernments ofArgentina andBrazil signed theFirst Additional Protocol
inwhich they agree toincorporate intotheAgreement alistofproducts forwhich reciprocal trade
willbeexempted from levies andnon-tariff restrictions.
2.5 Agreements forthe"Renegotiation ofconcessions granted intheperiod 1962-1980" (Annex 11)
Asprovided forbytheEvaluation andConvergence Conference atitsSecond Special Session
inDecember 1981, thenegotiations launched withaview totheincorporation intotheintegration process
ofthe1980 Treaty ofMontevideo oftheconcessions granted bycontracting parties under theLAFTA
Liberalization Programme closed on30December 1983.
Since thatdatethere have been various modifications tothepartial scope agreements forthe
renegotiation ofthe"LAFTA heritage", most ofwhich consist inadeepening oftheoriginal preferences,
theinclusion ofnewproducts notnegotiated under theLAFTA liberalization mechanisms, therevision
ofsome negotiated conditions, such astheestablishment ofimport quotas agreed inconjunction with
tariff preferences granted byMember countries, aswell asthereview andadjustment oftherules
governing theimplementation andoperation ofthese agreements.
Itshould beemphasized thatsome agreements inthiscategory have been terminated bytheir
signatories, who consider thattheobjectives ofResolution 1oftheCouncil ofMinisters have been
achieved inallrespects, andhave therefore chosen topromote effective economic complementarity
through agreements ofother kinds, usually economic complementarity agreements.
Accordingly,theyjoinedtheRenegotiationsAgreementswhichremainedvoidduringtheprevious
years, theagreements concluded between Argentina andEcuador (AAP.R/5); Bolivia andBrazil
(AAP.R/8); Brazil andPeru (AAP.R/12); Brazil andVenezuela (AAP.R/13); Colombia andChile
(AAP.R/14); Chile andEcuador (AAP.R/15); Chile andVenezuela (AAP.R/16); Bolivia andParaguay
(AAP.R/17); Ecuador andParaguay (AAP.R/19); Ecuador andUruguay (AAP.R/24); Bolivia and
Chile (AAP.R/27); Mexico andVenezuela (AAP.R/30); Bolivia andMexico (AAP.R/31); and
Colombia andMexico (AAP.R/40).
Further totheprovisions ofResolution 1oftheCouncil ofMinisters, Paraguay included
partial-scope agreements fortherenegotiation ofconcessions granted during theLAFTA period with
theother Member countries oftheAssociation, which were signed on30April 1983.
These agreements were mentioned inthereport covering theyear inquestion. Itshould be
mentioned thattwoofthese agreements (AAP.R/17 with Bolivia andAAP.R/19 with Ecuador) were
rendered void bythesignature in1994 ofEconomic Complementarity Agreements Nos. 29and30
respectively.WT/COMTD/7
Page 74
2.6 Regional agreements
On19October 1993, aRegional-Scope Agreement onscientific andtechnological cooperation
wasconcluded between themembers oftheAssociation. Itspurpose istopromote cooperation aimed
atassimilatinganddevelopingknowledge,andacquiringanddisseminatingtechnologyanditsapplication
while atthesame time ensuring specialization, inter-dependence andcomplementarity ofactions
conducted bytheMember countries within theframework ofintegration.
Under thisAgreement, theMember countries, either inpairs oringroups, may conduct joint
activities aimed, inter alia,at:
- Implementation ofjoint scientific research projects inspecialized centres within the
countries, bothinthepublic andprivate sectors andintheuniversities, withthepossible
participation ofenterprises aswell;
- researchanddevelopmentofnewproductsandtechniqueswithrespecttomanufacturing,
administration ofproduction andtechnological management; and
- disseminationoftechnologicalprogressusingsupportservicesfortheinnovationsystem,
technological information, patents, licences, etc.
Scientific andtechnological cooperation may takedifferent forms depending ontheinterests
expressed bytheMember countries. Itmay include, inter alia:
- Exchange ofknowledge andtheresults ofresearch andexperiments; exchange of
information ontechnologies, patents andlicences between researchers, research
institutes, universities, enterprises andtechnological service suppliers;
- exchange andreciprocal supply ofgoods, materials, equipment andservices required
inconnection with specific projects;
- exchange andtraining ofscientific, technical andspecialized personnel aswell as
representatives ofindustrial andcommercial organizations interested incooperation;
- organization ofseminars, symposiums andconferences;
- joint research onscientific andtechnological problems with aview tothepractical
utilization oftheresults obtained;
- creation, operation and/or utilization ofscientific andtechnical facilities andtestand/or
experimental production centres; and
- other forms ofscientific andtechnical corporation aimed atenhancing theoverall
development oftheMember countries inconformity with their respective economic
andsocial development policies.
This Regional Agreement isvalid foranindefinite period oftime.WT/COMTD/7
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2.7 Agreements concluded bytheMember countries with non-LAIA-member Latin American
countries (Article 25ofthe1980 Treaty ofMontevideo) (Annex 12)
During theperiod 1993-1994, Colombia andPeru concluded three new agreements with
non-LAIA-member Latin American countries under Article 25ofthe1980 Montevideo Treaty. The
terms ofthese treaties aresetforth below.
(a) AgreementbetweenColombiaandPanama,concludedon9July1993(AAP/A25TM/29)
Liberalization programme andnon-tariff measures
Thetwoparties agreed togrant each other tariff preferences ontheimport ofproducts included
intheAgreement (Annexes IIandIII). These preferences consist inpercentage reduction applied to
import duties valid forthird countries.
Moreover,90daysaftertheentryintoforceoftheAgreement,thesaidproductswillbeexempted
from allnon-tariff restrictions, with theexception ofthose setforth inArticle 50ofthe1980 Treaty
ofMontevideo.
Theparties may atanytime amend thelistofproducts andthepreferences granted, ensuring
thatthebalance oftheAgreement ismaintained.
Regime ofOrigin
ThecountriesundertaketoapplytotheirimportsundertheAgreementrulesforthedetermination
oftheorigin ofgoods andcertification procedures established according totheprovisions ofAnnex I
oftheAgreement. These rules willbegoverned bythegeneral principle ofchange intariff classification
where there isasubstantial transformation involved, andtheapplication ofspecific requirements for
each product, including theconcept ofcumulative origin.
Safeguard clauses
Theparties only apply safeguards when they consider thatimports arebeing carried outin
conditions andquantities thatcause orthreaten tocause serious damage tothedomestic industry for
similar ordirectly competitive goods. Tariff safeguard measures may only beapplied onanon-
discriminatory andtemporary basis foraperiod ofoneyear extendable foranidentical period ifthe
reasons fortheir introduction persists. Such measures willconsist inthere-establishment ofthetariff
applied tothird countries.
Theparties maintain their rights andobligations under Article XIX oftheGeneral Agreement
onTariffs andTrade (GATT) with respect toanyemergency measures adopted byoneoftheparties.
Dispute settlement
Disputes willbesettled through direct consultations between thecoordinating entities ofthe
parties.
Ifthepartiesareunabletoreachasolution,theysubmitthedisputetotheAdministrativeCouncil
(Chapter XIV oftheAgreement) andmaycallupon theadvice oftechnical experts. TheCouncil will
select adispute settlement procedure based oninternational standards currently inforce.WT/COMTD/7
Page 76
Unfair foreign trading practices
Ifsituations ofdumping orother unfair trading practices should arise, theaffected party applies
measures determined byitsdomestic legislation, using asareference theprovisions ofGATT andits
Codes onAnti-Dumping andonSubsidies.
Government procurement
TheAdministrativeCouncildefinestherulesgoverninggovernmentprocurement,takingaccount
oftherelevant provisions oftheGATT.
Validity
TheAgreement enters intoforce assoon astheparties notify thattheyhave fulfilled thedomestic
legal requirements.
Itisvalid forfiveyears, automatically extendable byidentical periods, unless oneoftheparties
notifies theothers ofitsintention nottoextend itatleast 90days prior totheexpiry oftheperiod in
question.
Denunciation
Theparties maydenounce theAgreement (Article 39)witheffect 180days following notification
oftheLAIA Secretariat bytheGovernment ofColombia.
Thetreatment granted fornegotiated products willremain inforce foroneyear following the
date ofexpiry oftheAgreement.
(b) Agreement between Peru andCuba, concluded on25August 1994 (AAP/A25TM/30)
Liberalization programme
Thesignatories undertake togrant each other tariff preferences onthebasis ofaselective list
ofproducts contained inAnnexes IandIIoftheAgreement.
These preferences consist inapercentage reduction ofthelevies recorded inthenational tariff
ofPeru, andthemost-favoured-nation tariff inthecase ofCuba.
Import restrictions
Theparties undertake toeliminate immediately allnon-tariff restrictions onproducts included
under theAgreement except those covered byArticle 50ofthe1980 Treaty ofMontevideo.
Rules ofOrigin
Theparties willapply toimports under theAgreement rules forthedetermination oftheorigin
ofgoods (Annex III)andprocedures fortheir certification andverification.
Safeguard clauses
Theparties may apply transitory andnon-discriminatory remedial measures when theimport
ofoneorseveral products included intheAgreement iscarried outinquantities orconditions that
cause serious prejudice tothedomestic industry forlike, similar orsimply competitive products.WT/COMTD/7
Page 77
Such measures may lastuptooneyear andmay beextended foranother year ifthecauses
which gave risetotheir introduction persist.
Themeasure willconsist inthere-establishment ofthelevel applied tothird countries.
Ifupon expiry ofthesetdeadline thecauses thatgave risetothemeasures persist, theimporting
country takes thenecessary steps tonegotiate thewithdrawal oftheproducts inquestion 30days before
theexpiry date.
Article 15stipulates thattheparties shall conserve their rights andobligations under Article XIX
oftheGATT andtheFinal ActoftheUruguay Round, once ithasbeen ratified bytheparties, inrespect
ofanyemergency measure adopted byoneoftheparties inimplementing theAgreement.
Unfair foreign trading practices
Thecountries undertake toapply therules established under theGATT andtheFinal Actof
theUruguay Round.
Services
TheAgreement provides formeasures tofacilitate trade inservices, taking dueaccount ofthe
Negotiations oftheUruguay Round.
Validity
TheAgreement isvalid foraperiod ofthree years, automatically extendable forfurther identical
periods unless oneoftheparties provides notification, atleast 90calendar days prior totheexpiry
oftheperiod inquestion, ofitsintention nottoextend it(Article 31).
This Agreement cancels andreplaces thePartial-Scope Agreement concluded between the
Governments ofPeru andCuba on28April 1987 (AAP/A25TM/18) asfrom thedateofitsentry into
force.
Denunciation
Either oftheparties may denounce theAgreement with effect 180calendar days after ithas
sonotified theother Party inwriting, unless both parties decide onadifferent time-period.
(c) Agreement between Colombia and CARICOM, concluded on24July 1994
(AAP/A25TM/31)
Liberalization programme
Theparties undertake topromote atrade liberalization programme taking dueaccount ofthe
difference inlevels ofdevelopment between Colombia andCARICOM ingeneral andbetween Colombia
andthecountries considered tobetheleast developed within CARICOM inparticular.
With respect toimports from theCARICOM countries, Colombia undertakes toeliminate non-
tariff barriers andtoimplement atariff-cutting programme involving:
Alistofproducts forimmediate tariff cutting (Annex I);tariff cutting inthree equal one-year
stages starting with theentry intoforce oftheAgreement (Annex II);andalistofgoods selected fromWT/COMTD/7
Page 78
CARICOM 'slistofavailable exports formost-favoured-nation treatment (Annex III)tobenegotiated
asfrom thefourth year following theentry intoforce oftheAgreement.
Inapplyingitscustomsduty,CARICOMwillgrantmost-favoured-nationtreatmenttoallimports
from Colombia andundertakes nottoapply non-tariff barriers other than those inforce orauthorized
under theTreaty Establishing theCaribbean Community.
Starting from thefourth year, thecountries considered tobethemost developed inCARICOM
(Barbados, Guyana, Jamaica, andTrinidad andTobago) willintroduce atariff-cutting programme aimed
ateliminating orreducing levies onthebasis ofanegotiated listofColombian export goods.
Thesaidlistwillbedrawn upduring theassessment conducted bytheJoint Council created
under theAgreement during thethird year ofvalidity oftheAgreement.
Regime ofOrigin
Therules oforigin tobeapplied during thefirstthree years ofvalidity oftheAgreement are
those setforth inAnnex IV.
Atthebeginning ofthesecond year, theJoint Council willbegin areview ofthose rules with
aview toestablishing adefinitive setofrules asfrom thefourth year.
Theprocedures forthecertification andverification oforigin ofgoods setforth intheAgreement
willbebased onthegeneral principle ofchange oftariff classification, provided such change implies
asubstantial transformation, although specific requirements maybeestablished forindividual products.
Theconcept ofcumulative origin willalsobeincluded inorder tofavour thedevelopment of
aproduction chain among theparties.
Safeguard clauses
Thesignatories mayintroduce transitory safeguard measures incases where goods areimported
inquantities such astocause orthreaten tocause injury totheimporting party 'sdomestic industry
forsimilar ordirectly competitive goods, orwhere necessary tocorrect disruptions inthebalance of
payments.
Such measures may beapplied foroneyear, extendible foronefurther year.
Dispute settlement
Unsettled disputes between theparties may bebrought before theJoint Council, which will
define thedispute settlement procedures andmechanisms tobeapplied within sixmonths following
theentry intoforce oftheAgreement.
Denunciation
Asignatory maydenounce theAgreement byproviding theother party with written notification
ofitsdecision. Thedenunciation willcome intoeffect sixmonths after reception ofthenotification.
The LAIA General Secretariat must beinformed byColombia ofsuch application ofthe
denunciation clause.WT/COMTD/7
Page 79
Trade inservices
Theresults oftheUruguay Round willbetaken asabasis forthedevelopment ofcooperation
inthissector.
Unfair trading practices
Ifsituationsofdumpingordistortionderivingfromtheapplicationofexportsubsidiesorinternal
subsidies should arise, theaffected party may apply appropriate measures determined byitsdomestic
legislation, which must comply with therelevant GATT provisions currently inforce.
Validity
TheAgreement willbevalid foranindefinite period oftime andwillenter intoforce assoon
astheParties notify thecompletion oftheir domestic legal formalities.
Accession
TheAgreement isopen foraccession totheother LAIA member countries inconformity with
Article 9,subparagraphs (a)and(b)of5m.89. Itshould bepointed outthatsuch benefits asmay
derive from thisAgreement willnotapply toBahamas unless itobtains accession following negotiations
between thetwoparties.
During theperiod inquestion, anumber ofagreements were modified asindicated below for
each case:
(a) Agreement between Mexico andCosta Rica (AAP/A25TM/1)
Through theThird Additional Protocol signed on24November 1993, thesignatory countries
modified thefollowing provisions oftheAgreement:
- Regime oforigin (Articles 10and11).
Forthedetermination oftheorigin ofnegotiated products, thesignatories willapply
theprovisions ofLAIA Committee ofRepresentatives Resolution 78.They willuse
thecertification form approved inAgreements 25and91ofthesaidCommittee.
- Validity oftheAgreement (Article 16).
TheAgreement willbevalid foroneyear starting on24November 1993, extendable
byidenticalperiodsunlessoneofthepartiesprovidesnotificationtothecontrary60days
prior totheexpiry oftheperiod inquestion.
- Administrative Commission (Article 18).
Inorder toimprove thefunctioning oftheAgreement, theparties agree tosetupan
Administrative Commission composed ofrepresentatives oftheMinistry ofTrade and
Industrial Promotion forMexico andtheMinistry oftheEconomy andForeign Trade
forCosta Rica.
TheThird Additional Protocol replaces thepreferences granted byCosta Rica fortheimport
ofnegotiated products assetforth inAnnex Ithereto.WT/COMTD/7
Page 80
(b) Agreement between Argentina andCosta Rica (AAP/A25TM/2)
Agreement between Argentina andElSalvador (AAP/A25TM/3)
Agreement between Argentina andCuba (AAP/A25TM/4)
Agreement between Mexico andGuatemala (AAP/A25TM/10)
Agreement between Uruguay andCuba (AAP/A25TM/17)
Agreement between Brazil andCuba (AAP/A25TM/21)
Thesignatories oftheabove Agreements signed Additional Protocols extending their validity
tothefollowing dates:
Agreement No.2:31December 1994 (First Additional Protocol signed on25May 1994);
Agreement No.3:31December 1994 (First Additional Protocol signed on28February 1994);
Agreement No.4:30June 1995 (Third Additional Protocol signed on4November 1994);
Agreement No.10: 6June 1994 (Seventh Additional Protocol signed on3June 1994);
Agreement No.17: 30June 1995 (First Additional Protocol signed on9December 1994);
Agreement No.21:30June 1995 (Second Additional Protocol signed on31October 1994).
(c) Agreement between Mexico andNicaragua (AAP/A25TM/13)
Through theFirst Additional Protocol, signed on4October 1993, thesignatories amended
thefollowing provisions oftheAgreement:
- Regime ofOrigin (Articles 9and10).
Forthedetermination oftheorigin ofnegotiated products, thesignatory countries will
apply theprovisions ofLAIA Committee ofRepresentatives Resolution 78,andwill
usethecertification form approved byAgreements 25and91ofthesaidCommittee.
- Validity oftheAgreement (Article 25).
TheAgreement willbevalid foroneyear starting on4October 1993, extendable by
identical periods unless oneoftheparties provides notification ofthecontrary 60days
prior totheexpiry ofthetime-period inquestion.
- Administrative Commission (Article 27).
Inorder toimprove thefunctioning oftheAgreement, theparties undertake tosetup
anAdministrative Commission made upofrepresentatives oftheMinistry ofTrade
andIndustrialPromotionforMexicoandtheMinistryoftheEconomyandDevelopment
forNicaragua.
TheFirst Additional Protocol replaces thepreferences granted byNicaragua forimports of
negotiated products assetforth inAnnex Ithereto.
(d) Agreement between Mexico andElSalvador (AAP/A25TM/15)
TheThird Additional Protocol signed on11January 1994 provides fortheamendment ofa
tariff preference granted byMexico fortheproduct classified under theheading TIGISA 6302.60.01.WT/COMTD/7
Page 81
ANNEX 1
TRADE AGREEMENTS (1992)
1980 Treaty ofMontevideo, Article 10
"Trade agreements areexclusively aimed towards trade promotion among member countries,
andshall besubject tothespecific rules tobeestablished forthatpurpose."
Resolution 2oftheCouncil ofMinisters, Article 6
(Implementing provisions)
"Trade agreements areexclusively aimed towards trade promotion among member countries.
Such agreements shall besubject, inter alia,tothefollowing rules:
(a) Their provisions shall beaimed towards trade objectives andaccordingly shall not
comprise commitments inregard toproduction specialization;
(b) they shall cover those headings ofthenomenclature which fallwithin thesector
concerned;
(c) theyshall comprise tariff concessions andcommitments fortheelimination orreduction
ofnon-tariff restrictions, andmayinclude temporary, perquota ormixed concessions,
regarding surpluses andshortfalls, andlikewise measures relating tocounter-trade;
(d) theyshall takespecial account ofrecommendations bytheentrepreneurial sector; and
(e) theconcessions setforth therein shall beautomatically extended, without thegrant
ofcompensation,totherelativelyless-developedcountries,independentlyofnegotiation
andaccession totheagreement concerned."
Agreement
No.Signatory countries Original
ProtocolAdditional Protocols Observations
No. Date
5 Chemical industry
Argentina, Brazil, Chile, Mexico,
Uruguay, Venezuela20.12.82 16 30.11.92 AR-BR-CH-
ME-UR-VE
7A Refrigeration andair-conditioning
Argentina, Uruguay24.12.82 1 30.11.92 AR-UR
7B Electrical household appliances
Argentina, Uruguay24.12.82 6 30.11.92 AR-UR
9 Electricity generation, transmission
anddistribution
Brazil, Mexico29.11.82 Naladisa
Adjustment
Prot.30.11.92 BR-MEWT/COMTD/7
Page 82
Agreement
No.Signatory countries Original
ProtocolAdditional Protocols Observations
No. Date
10 Office machines
Argentina, Brazil, Mexico29.11.82 10 30.11.92 AR-BR-ME
12 Electronics andelectrical
communications
Brazil, Mexico29.11.82 Naladisa
Adjustment
Port.30.11.92 BR-ME
13 Phonography
Argentina, Brazil, Mexico,
Uruguay, Venezuela2.12.82 4 30.11.92 AR-BR-ME-
UR-VE
15 Chemicals andpharmaceuticals
Argentina, Brazil, Mexico10.12.81 16 30.11.92 AR-BR-ME
16 Petrochemicals
Argentina, Brazil, Chile, Mexico,
Uruguay, Venezuela28.11.82 29
3030.11.92
30.11.92AR-BR-ME-
VE-ME-VE
17A Refrigeration andair-conditioning
Argentina, Brazil15.11.82 6 30.11.92 AR-BR
17B Household electrical mechanical
andheating appliances
Argentina, Brazil15.11.82 6 30.11.92 AR-BR
18 Photography
Argentina, Brazil, Mexico,
Uruguay, Venezuela24.12.82 15 30.11.92 AR-BR-ME-
UR-VE
19 Electronics andelectrical
communications
Argentina, Brazil, Mexico,
Uruguay29.11.82 8 30.11.92 AR-BR-ME-
UR
20 Dyes andpigments
Argentina, Brazil, Chile, Mexico10.12.81 12 30.11.92 AR-BR-ME
21 Chemicals (surpluses anddeficits)
Argentina, Brazil, Chile, Mexico,
Uruguay10.12.81 22 30.11.92 AR-BR-CH-
ME-UR
22 Essential oils, aromatic chemicals,
perfumes andflavourings
Argentina, Brazil, Mexico29.11.82 11 30.11.92 AR-BR-MEWT/COMTD/7
Page 83
Agreement
No.Signatory countries Original
ProtocolAdditional Protocols Observations
No. Date
26 Articles andappliances forhospital,
dental, veterinary andlikeuses
Argentina, Brazil, Mexico28.11.84 9 30.11.92 AR-BR-ME
27 Glass
Brazil, Mexico, Venezuela28.11.84 1 30.11.92 BR-ME-VEWT/COMTD/7
Page 84
ANNEX 2
ECONOMIC COMPLEMENTARITY AGREEMENTS (1992)
1980 Treaty ofMontevideo, Article 11
"Economiccomplementarityagreementsareaimed,amongotherobjectives,topromotemaximum
utilization ofproduction factors, stimulate economic complementarity, ensure equitable conditions for
competition, facilitate entry ofproducts intotheinternational market, andencourage thebalanced and
harmonious development ofmember countries.
These agreements shall besubject tothespecific rules tobeestablished forthatpurpose."
Resolution 2oftheCouncil ofMinisters, Article 7
"Economiccomplementarityagreementsareaimed,amongotherobjectives,topromotemaximum
utilization ofproduction factors, stimulate economic complementarity, ensure equitable conditions for
competition, facilitate entry ofproducts intotheinternational market, andencourage thebalanced and
harmonious development ofmember countries.
These agreements shall besubject tothefollowing rules:
(a) They may bebased ontariff reduction andonindustrial programming;
(b) they may cover oneoranumber ofsectors;
(c) theyshall contain aprogramme oftariff reduction forthesector orsectors concerned,
andmay provide fortheelimination orreduction ofnon-tariff restrictions;
(d) they shall bevalid foraminimum period ofthree years andamaximum period tobe
determined ineach agreement;
(e) theyshall include measures toensure thebalanced andharmonious application oftheir
benefits toparticipating countries, onthebasis ofthethree country categories, and
procedures fortheevaluation andadjustment ofimbalances; and
(f) they may include, inter alia,provisions inregard to:
(i) harmonization oftreatment applied toimports from third countries inrespect
ofproducts covered bytheagreement, andlikewise rawmaterials andparts
used intheir manufacture;
(ii) coordination ofgovernment programmes andincentives designed tofacilitate
economic complementarity, andharmonization oftreatment applied tocapital
andservices offoreign origin linked totheproducts covered bytheagreement;
(iii) regulations designed toprevent unfair trade practices;WT/COMTD/7
Page 85
(iv) regulation ofcounter-trade; and
(v) definition ofother measures forharmonization ofinstruments andpolicies,
andlikewise theestablishment ofcomplementary measures intheareas of
technological development, financing, physical infrastructure andanyother
areas deemed relevant."
Agreement
No.Signatory countries Original
ProtocolAdditional Protocols Observations
No. Date
2 Brazil, Uruguay (TEP) 20.12.82 16 26.5.92 Trade
Expansion
Protocol (TEP)
11 Argentina, Colombia 28.4.88 Naladisa
Adjust.30.12.92
13 Argentina, Paraguay 28.11.89 Naladisa
Adjust.8.11.92
14 Argentina, Brazil 20.12.90 7
9
10
11
12
1320.2.92
5.3.92
3.6.92
21.10.92
28.10.92
29.12.92
16 Argentina, Chile 2.8.91 2
3
417.6.92
8.12.92
29.12.92
17 Chile, Mexico 22.9.91 1 23.7.92
18 Argentina, Brazil, Paraguay,
Uruguay29.11.91 1 28.2.92 Southern
Common
Market
(MERCOSUR)
19 Argentina, Bolivia 28.4.92 - - Original
Agreement
20 Argentina, Venezuela 6.10.92 - - Original
AgreementWT/COMTD/7
Page 86
ANNEX 3
OTHER TYPES OFPARTIAL-SCOPE AGREEMENT (1992)
A. Partial-Scope Agreements under Article 13ofthe1980 Treaty ofMontevideo (Trade Promotion
Agreements)
(a) 1980 Treaty ofMontevideo, Article 13
"Trade promotion agreements shall refer tonon-tariff matters andtendtopromote intraregional
trade flows. They shall besubject tothespecific rules tobeestablished forthatpurpose."
Resolution 2oftheCouncil ofMinisters, Article 9
"Trade promotion agreements shall refer tonon-tariff matters andtendtopromote intraregional
trade flows.
Tothisend, they may take intoconsideration, among other matters, thefollowing aspects:
(a) Trade rules:
- Subsidies andcountervailing measures;
- unfair business practices;
- import licensing andformalities;
- other technical matters relating toregional trade.
(b) Other rules relating tonon-tariff matters:
- Payments;
- financial cooperation;
- animal andplant health cooperation;
- facilitation oftransport;
- government procurement."
Agreement
No.Sector/signatory countries Original Protocol Additional Protocols
No. Date
1 Agreement onthesupply of
natural gas
Argentina, Uruguay31.1.92 Noadditional protocols
2 Agreement onthesupply of
natural gas
Bolivia, Brazil17.8.92 Noadditional protocols
3 Agreement onthesupply of
natural gas
Argentina, Bolivia29.9.92 Noadditional protocolsWT/COMTD/7
Page 87
B. Partial-Scope Agreements under Article 14ofthe1980 Treaty ofMontevideo
(b) 1980 Treaty ofMontevideo, Article 14
"Member countries may establish, through thecorresponding regulations, specific rules to
conclude other modalities ofpartial-scope agreements.
Forthispurpose, they shall take into consideration, among other matters, scientific and
technological cooperation, tourism promotion andpreservation oftheenvironment."
Resolution 2oftheCouncil ofMinisters, Article 10
"Member countries may establish, through thecorresponding regulations, specific rules to
conclude other modalities ofpartial-scope agreements.
Forthispurpose, they shall take into consideration, among other matters, scientific and
technological cooperation, tourism promotion andpreservation oftheenvironment."
Agreement
No.Sector/signatory countries Original Protocol Additional Protocols
No. Date
5 Paraguay-Parana river
transport
Argentina, Bolivia, Brazil,
Paraguay, Uruguay29.6.92 1
2
3
4
5
626.6.92
26.6.92
26.6.92
26.6.92
26.6.92
26.6.92
6 Cooperation andexchange of
goods used forenvironmental
conservation
Argentina, Brazil27.6.92 - -
7 Latin American Common
Market forBooks
Brazil, Uruguay30.12.92 Noadditional protocols
8 Uniform basic rules oftransit
Argentina, Bolivia, Brazil,
Chile, Paraguay, Peru,
Uruguay29.9.92 Noadditional protocolsWT/COMTD/7
Page 88
ANNEX 4
AGREEMENTS ONRENEGOTIATION OFCONCESSIONS GRANTED
DURING THE PERIOD 1962/1980 (1992)
Resolution 1oftheCouncil ofMinisters, Article 1
"The contracting parties shall incorporate intothenewintegration scheme established bythe
1980 Treaty ofMontevideo, signed on12August 1980, theconcessions granted innational schedules,
listsofnon-extensive benefits andcomplementarity agreements.
Tothatend, they shall renegotiate those concessions byup-dating, improving oreliminating
them, soastoachieve agreater strengthening andbalance oftrade flows.
Theresults oftherenegotiation shall beconsistent withtheprovisions andmechanisms provided
forinthe1980 Treaty ofMontevideo."
Resolution 433oftheStanding Executive Committee, Articles 1and2
(Implementing provisions)
"The partial-scope agreements ‘onrenegotiation ofpreferences granted during theperiod
1962/1980 shall aimtoincorporate intothenewintegration scheme established bythe1980 Treaty
ofMontevideo theresults oftherenegotiation provided forinResolution 1oftheCouncil ofMinisters.
Therights andobligations established inthose agreements shall beapplicable exclusively to
thecountries which sign oraccede tothem.
Theagreements referred tointhepreceding Article shall bebased onthegrant ofpreferences
inrespect ofthecustoms duties and/or other restrictions applied bythecountries participating therein
totheimport ofnegotiated products originating intheir respective territory.
Thepreferences recorded inthose agreements maylikewise, onatemporary orseasonal basis,
besubject toimport quotas, orapply toproducts ofoneormore sectors ofthetariff nomenclature
oftheAssociation."
Agreement
No.Signatory countries Original Protocol Additional Protocols
No. Date
10 Brazil, Colombia 30.4.83 8/Rev.3
8/Rev.414.2.92
29.9.92
11 Brazil, Ecuador 30.4.83 Naladisa
Adjustment13.10.92
28 Chile, Peru 30.4.83 9 29.12.92
29 Ecuador, Mexico 30.4.83 7 30.12.92
35 Brazil, Uruguay 30.4.83 13 20.4.92WT/COMTD/7
Page 89
ANNEX 5
REGIONAL AGREEMENTS (1992)
1980 Treaty ofMontevideo, Article 6
Regional-scope agreements arethose inwhich allmember countries participate.
They shall bedrawn upwithin theframework oftheobjectives andprovisions ofthepresent
Treaty, andmayrefer tothesame matters andinclude those instruments foreseen forthepartial-scope
agreements provided forinthethird section ofthepresent Chapter.
Agreement
No.Original
ProtocolAdditional Protocols Countries Area
No. Date
7 27.10.88 Accession of
Bolivia27.4.92 All Cooperation and
Exchange inthe
Cultural, Educational and
Scientific AreasWT/COMTD/7
Page 90
ANNEX 6
AGREEMENTS CONCLUDED WITH NON-LAIA
LATIN AMERICAN COUNTRIES (1992)
1980 Treaty ofMontevideo, Article 25
"Likewise, member countries maydraw uppartial-scope agreements withother Latin American
countries andareas ofeconomic integration, inaccordance with thevarious modalities foreseen inthe
third section ofChapter IIofthepresent Treaty, andunder theterms oftherespective regulative
provisions.
Notwithstanding theabove, these agreements shall besubject tothefollowing rules:
(a) Concessions granted byparticipating member countries shall notbeextensive tothe
others, excepting therelatively less-developed countries;
(b) when amember country includes products already negotiated inpartial agreements
with other member countries, concessions granted may behigher than those agreed
with theformer; inthiscase, consultation with theaffected member countries shall
becarried outinorder tofindmutually satisfactory solutions, unless therespective
partial agreements include clauses concerning automatic extension orwaiver of
preferences contained inthepartial agreements referred tointhepresent Article; and
(c) they shall bemultilaterally assessed bythemember countries within theCommittee
inorder toascertain thescope oftheagreements drawn upandfacilitate participation
ofother member countries therein."
Agreement
No.Signatory countries Original Protocol Additional Protocols
No. Date
16 Venezuela, Honduras 20.2.86 1 29.9.92
20 Venezuela, Trinidad and
Tobago4.8.89 1 14.10.92
21 Brazil, Cuba 16.10.89 1 22.7.92
23 Venezuela, Guatemala 30.10.85 1 29.9.92
24 Venezuela, Caricom 13.10.92 No
Additional
Protocols
25 Venezuela, Nicaragua 15.8.8611 29.9.92
26 Venezuela, Costa Rica1
1 29.9.92
27 Venezuela, ElSalvador 10.3.86 2 29.9.92
1Protocol notyetdeposited with theGeneral Secretariat.WT/COMTD/7
Page 91
ANNEX 7
TRADE AGREEMENTS (1993-1994)
1980 Treaty ofMontevideo, Article 10
"Trade agreements areexclusively aimed towards trade promotion among member countries,
andshall besubject tothespecific rules tobeestablished forthatpurpose."
Resolution 2oftheCouncil ofMinisters, Article 6
(Implementing provisions)
"Trade agreements areexclusively aimed towards trade promotion among member countries.
Such agreements shall besubject, inter alia,tothefollowing rules:
(a) Their provisions shall beaimed towards trade objectives andaccordingly shall not
comprise commitments inregard toproduction specialization;
(b) they shall cover those headings ofthenomenclature which fallwithin thesector
concerned;
(c) theyshall comprise tariff concessions andcommitments fortheelimination orreduction
ofnon-tariff restrictions, andmayinclude temporary, perquota ormixed concessions,
regarding surpluses andshortfalls, andlikewise measures relating tocounter-trade;
(d) theyshall takespecial account ofrecommendations bytheentrepreneurial sector; and
(e) theconcessions setforth therein shall beautomatically extended, without thegrant
ofcompensation,totherelativelyless-developedcountries,independentlyofnegotiation
andaccession totheagreement concerned."
Agreement
No.Sector/signatory countries Original
ProtocolAdditional Protocols
No. Date
5 Chemical industry
Argentina, Brazil, Chile,
Mexico, Uruguay, Venezuela20.12.82 17
18
19
20
21
22
23
247.10.93 AR-VE
30.12.93 AR-BR-CH-ME-UR-VE
15.11.94 CH-VE
30.12.94 AR-ME
30.12.94 BR-VE
30.12.94 AR-BR-CH-UR-VE*
30.12.94 BR-ME
30.12.94 ME-UR
*Liberalization programme inforce intheAgreement under Additional Protocol No.22.
Granting country Beneficiary countries
Argentina
Brazil
Chile
Uruguay
VenezuelaBrazil-Uruguay
Argentina-Chile-Uruguay
Brazil-Uruguay
Argentina-Brazil-Chile-Venezuela
UruguayWT/COMTD/7
Page 92
Agreement
No.Sector/signatory countries Original
ProtocolAdditional Protocols
No. Date
7A Refrigeration andair-
conditioning
Argentina, Uruguay24.12.82 2
312.11.93 AR-UR
30.12.94 AR-UR
7B Electrical household
appliances
Argentina, Uruguay24.12.82 7
812.11.93 AR-UR
30.12.94 AR-UR
9 Electricity generation,
transmission anddistribution
Brazil, Mexico29.11.82 5
612.11.93
30.12.94
10 Office machines
Argentina, Brazil, Mexico29.11.82 11
12
13
1412.11.93 AR-BR-ME
30.12.94 AR-ME
30.12.94 AR-BR
30.12.94 BR-ME
12 Electronics andelectronic
communications
Brazil, Mexico29.11.82 6
712.11.93
30.12.94
13 Phonography
Argentina, Brazil, Mexico,
Uruguay, Venezuela2.12.82 5
6
7
8
9
10
117.10.93 AR-VE
30.12.93 AR-BR-ME-UR-VE
30.12.94 AR-ME
30.12.94 BR-VE
30.12.94 AR-BR-UR-VE*
30.12.94 BR-ME
30.12.94 ME-UR
*Liberalization programme inforce intheAgreement under Additional Protocol No.9.
Granting country Beneficiary countries
Argentina
Brazil
Uruguay
VenezuelaBrazil-Uruguay
Argentina-Uruguay
Argentina-Brazil-Venezuela
Uruguay
15 Chemicals and
pharmaceuticals
Argentina, Brazil, Mexico10.12.81 13
14
15
1612.11.93 AR-BR-ME
30.12.94 AR-ME
30.12.94 AR-BR
30.12.94 BR-ME
16 Petrochemicals
Argentina, Brazil, Chile,
Mexico, Uruguay, Venezuela6.12.82 31
32
33
34
3530.12.93 AR-BR-CH-ME-UR-VE
30.12.94 AR-ME
30.12.94 BR-VE
30.12.94 AR-BR
30.12.94 BR-MEWT/COMTD/7
Page 93
Agreement
No.Sector/signatory countries Original
ProtocolAdditional Protocols
No. Date
17A Refrigeration andair-
conditioning
Argentina, Brazil15.11.82 7
812.11.93 AR-BR
30.12.94 AR-BR
17B Household electrical,
mechanical andheating
appliances
Argentina, Brazil15.11.82 7
812.11.93 AR-BR
30.12.94 AR-BR
18 Photography
Argentina, Brazil, Mexico,
Uruguay, Venezuela24.12.82 16
17
18
19
20
21
22
237.10.93 AR-VE
30.12.93 AR-BR-ME-UR-VE
30.12.93 BR-ME-VE
30.12.94 AR-ME
30.12.94 BR-VE
30.12.94 AR-BR-UR-VE*
30.12.94 BR-ME
30.12.94 ME-UR
*Liberalization programme inforce intheAgreement under Additional Protocol No.21.
Granting country Beneficiary countries
Argentina
Brazil
Uruguay
VenezuelaBrazil-Uruguay
Argentina-Uruguay
Argentina-Brazil-Venezuela
Uruguay
19 Electronics andelectrical
communications
Argentina, Brazil, Mexico,
Uruguay29.11.82 9
10
11
12
1312.11.93 AR-BR-ME-UR
30.12.94 AR-ME
30.12.94 AR-BR-UR
30.12.94 BR-ME
30.12.94 ME-UR
20 Dyes andpigments
Argentina, Brazil, Chile,
Mexico10.12.81 13
1412.11.93 BR-ME
30.12.94 BR-ME
21 Chemicals (surpluses and
deficits)
Argentina, Brazil, Chile,
Mexico, Uruguay10.12.81 23
24
25
2629.12.93 AR-BR-CH-ME-UR
30.12.94 AR-ME
30.12.94 AR-BR-UR
30.12.94 BR-ME
22 Essential oils, aromatic
chemicals, perfumes and
flavourings
Argentina, Brazil, Mexico29.11.82 12
13
14
1512.11.93 AR-BR-ME
30.12.94 AR-ME
30.12.94 AR-BR
30.12.94 BR-ME
24 Electronics andelectrical
communications
Argentina, Mexico29.11.82 10 30.12.94 Annuls thepreferences
agreed between the
signatoriesWT/COMTD/7
Page 94
Agreement
No.Sector/signatory countries Original
ProtocolAdditional Protocols
No. Date
26 Articles andappliances for
hospital, dental, veterinary
andlikeuses
Argentina, Brazil, Mexico28.11.84 10
11
12
1312.11.93 AR-BR-ME
30.12.94 AR-ME
30.12.94 AR-BR
30.12.94 BR-ME
27 Glass
Brazil, Mexico, Venezuela28.11.84 2
3
430.12.93 BR-ME-VE
30.12.94 BR-VE
30.12.94 BR-MEWT/COMTD/7
Page 95
ANNEX 8
ECONOMIC COMPLEMENTARITY AGREEMENTS (1993-1994)
1980 Treaty ofMontevideo, Article 11
"Economiccomplementarityagreementsareaimed,amongotherobjectives,topromotemaximum
utilization ofproduction factors, stimulate economic complementarity, ensure equitable conditions for
competition, facilitate entry ofproducts intotheinternational market, andencourage thebalanced and
harmonious development ofmember countries.
These agreements shall besubject tothespecific rules tobeestablished forthatpurpose."
Resolution 2oftheCouncil ofMinisters, Article 7
"Economiccomplementarityagreementsareaimed,amongotherobjectives,topromotemaximum
utilization ofproduction factors, stimulate economic complementarity, ensure equitable conditions for
competition, facilitate entry ofproducts intotheinternational market, andencourage thebalanced and
harmonious development ofmember countries.
These agreements shall besubject tothefollowing rules:
(a) They may bebased ontariff reduction andonindustrial programming;
(b) they may cover oneoranumber ofsectors;
(c) theyshall contain aprogramme oftariff reduction forthesector orsectors concerned,
andmay provide fortheelimination orreduction ofnon-tariff restrictions;
(d) they shall bevalid foraminimum period ofthree years andamaximum period tobe
determined ineach agreement;
(e) theyshall include measures toensure thebalanced andharmonious application oftheir
benefits toparticipating countries, onthebasis ofthethree country categories, and
procedures fortheevaluation andadjustment ofimbalances; and
(f) they may include, inter alia,provisions inregard to:
(i) harmonization oftreatment applied toimports from third countries inrespect
ofproducts covered bytheagreement, andlikewise rawmaterials andparts
used intheir manufacture;
(ii) coordination ofgovernment programmes andincentives designed tofacilitate
economic complementarity, andharmonization oftreatment applied tocapital
andservices offoreign origin linked totheproducts covered bytheagreement;
(iii) regulations designed toprevent unfair trade practices;WT/COMTD/7
Page 96
(iv) regulation ofcounter-trade; and
(v) definition ofother measures forharmonization ofinstruments andpolicies,
andlikewise theestablishment ofcomplementary measures intheareas of
technological development, financing, physical infrastructure andanyother
areas deemed relevant."
Agreement
No.Sector/signatory countries Original
ProtocolAdditional Protocols
No. Date
2 Brazil, Uruguay (TEP) 20.12.82 17
18
1912.7.93
19.7.93
10.12.93Trade
Expansion
Protocol
(TEP)
3 Argentina, Ecuador 24.5.84 Replaced by
ECA 21
4 Chile, Uruguay 1.2.85 3
431.12.93
18.11.94
5 Mexico, Uruguay 7.5.86 Naladisa
Adjustment
Prot.
3
4
531.5.93
14.12.93
29.12.93
30.12.94
6 Argentina, Mexico 24.10.86 5
Naladisa
Adjustment
Prot.
1
213.10.93
28.11.93
31.5.94
30.12.94
8 Mexico, Peru 25.3.87 1 17.5.94
9 Argentina, Peru 11.3.88 Naladisa
Adjustment
Prot.
1
2
39.2.93
27.12.93
15.11.94
22.12.94
11 Argentina, Colombia 28.4.88 1
229.11.93
18.11.94
13 Argentina, Paraguay 28.11.89 1 27.12.94WT/COMTD/7
Page 97
Agreement
No.Sector/signatory countries Original
ProtocolAdditional Protocols
No. Date
14 Argentina, Brazil 20.12.90 14
15
16
17
18
19
20
21
22
23
24
25
26
278.2.93
29.1.93
22.4.93
4.5.93
22.6.93
23.8.93
20.9.93
5.10.93
18.11.93
30.12.93
13.1.94
8.3.94
26.7.94
12.12.94
15 Bolivia, Uruguay 12.4.91 1
2
35.8.91
12.7.94
15.11.94
16 Argentina, Chile 2.8.91 5
6
7
8
9
10
11
12
1312.1.93
24.3.93
31.7.93
3.9.93
3.11.93
3.2.94
7.7.94
31.10.94
22.11.94
17 Chile, Mexico 22.9.91 2 16.11.93
18 Argentina, Brazil, Paraguay,
Uruguay29.11.91 3
4
5
6
8
9
11
12
1326.2.93
27.1.94
17.2.94
11.7.94
30.12.94
30.12.94
30.12.94
30.12.94
30.12.94
19 Argentina, Bolivia 28.4.92 1
229.6.93
15.11.94
20 Argentina, Venezuela 6.10.92 1 15.11.94
21 Argentina, Ecuador 13.5.93 1
24.11.93
17.11.94
22 Bolivia, Chile 6.4.93 1
2
3
4
57.9.94
15.10.94
17.11.94
22.9.94
21.9.94WT/COMTD/7
Page 98
Agreement
No.Sector/signatory countries Original
ProtocolAdditional Protocols
No. Date
23 Chile, Venezuela 2.4.93 1 15.11.94
24 Colombia, Chile 6.12.93 1
212.7.94
4.11.94
25 Brazil, Peru 31.12.93 1
226.10.94
15.11.94
26 Bolivia, Brazil 27.1.94 1
215.7.94
15.11.94
27 Brazil, Venezuela 15.7.94 1
229.7.94
15.11.94
28 Ecuador, Uruguay 1.5.94 1 17.11.94
29 Bolivia, Paraguay 15.3.94 1
211.11.94
15.11.94
30 Ecuador, Paraguay 15.9.94 1 17.11.94
31 Bolivia, Mexico 10.9.94
32 Chile, Ecuador 20.12.94
33 Colombia, Mexico, Venezuela 13.6.94WT/COMTD/7
Page 99
ANNEX 9
AGRICULTURAL AGREEMENTS (1993-1994)
1980 Treaty ofMontevideo, Article 12
"Agricultural agreements areaimed topromote andregulate intraregional trade ofagricultural
andlivestock products. They shall contemplate flexibility elements bearing inmind theparticipating
countries'socio-economiccharacteristicsofproduction.Theseagreementsmayrefertospecificproducts
orgroups ofproducts, andmay bebased ontemporary, seasonal, perquota ormixed concessions,
oroncontracts between State orpara-State organizations. They shall besubject tothespecific rules
tobeestablished forthatpurpose."
Resolution 2oftheCouncil ofMinisters, Article 8
"Agricultural agreements areaimed topromote andregulate intraregional trade ofagricultural
andlivestock products. They shall contemplate flexibility elements bearing inmind theparticipating
countries'socio-economiccharacteristicsofproduction.Theseagreementsmayrefertospecificproducts
orgroups ofproducts, andmay bebased ontemporary, seasonal, perquota ormixed concessions,
oroncontracts between State orpara-State organizations.
They may contain, inter alia,provisions inregard to:
(a) Volume andconditions ofmarketing;
(b) period ofvalidity oftheagreement;
(c) sanitary andquality requirements;
(d) price-setting systems;
(e) financing;
(f) information mechanisms; and
(g) commitments oninputs orgoods related totheagricultural sector."
Agreement
No.Sector/signatory countries Original
ProtocolAdditional Protocols
No. Date
2 Liberalization andexpansion
ofintraregional trade inseeds
Argentina, Bolivia, Brazil,
Colombia, Chile, Ecuador,
Paraguay, Peru, Uruguay,
Venezuela, Cuba22.11.91 Acc. 1
Acc. 2
Acc. 3Ecuador 26.8.93
Cuba 19.1.94
Venezuela 14.4.94WT/COMTD/7
Page 100
ANNEX 10
OTHER TYPES OFPARTIAL-SCOPE AGREEMENT (1993-94)
A. Partial-Scope Agreements under Article 13ofthe1980 Treaty ofMontevideo (Trade Promotion
Agreements)
(a) 1980 Treaty ofMontevideo, Article 13
"Trade promotion agreements shall refer tonon-tariff matters andtendtopromote intraregional
trade flows. They shall besubject tothespecific rules tobeestablished forthatpurpose."
Resolution 2oftheCouncil ofMinisters, Article 9
"Trade promotion agreements shall refer tonon-tariff matters andtendtopromote intraregional
trade flows.
Tothisend, they may take intoconsideration, among other matters, thefollowing aspects:
(a) Trade rules:
- Subsidies andcountervailing measures;
- unfair business practices;
- import licensing andformalities;
- other technical matters relating toregional trade.
(b) Other rules relating tonon-tariff matters:
- Payments;
- financial cooperation;
- animal andplant health cooperation;
- facilitation oftransport;
- government procurement."
Agreement
No.Sector/signatory countries Original
ProtocolAdditional Protocols
No. Date
4 Sanitary andPhytosanitary
Agreement
Argentina, Brazil, Paraguay,
Uruguay18.5.94 Noadditional protocols
5 Trade Facilitation Agreement
Argentina, Brazil, Paraguay,
Uruguay18.5.94 1 18.5.94WT/COMTD/7
Page 101
Agreement
No.Sector/signatory countries Original
ProtocolAdditional Protocols
No. Date
6 Agreement forthe
liberalization oftrade in
hydrocarbons andtheir
derivatives
Argentina, Bolivia18.3.94 Noadditional protocols
7 Agreement forthefacilitation
oftransport ofdangerous
goods
Argentina, Brazil, Paraguay,
Uruguay30.12.94 Noadditional protocols
8 Agreement forthefacilitation
ofmultimodal goods transport
Argentina, Brazil, Paraguay,
Uruguay30.12.94 Noadditional protocols
B. 1980 Treaty ofMontevideo, Article 14
"Member countries may establish, through thecorresponding regulations, specific rules to
conclude other modalities ofpartial-scope agreements.
Forthispurpose, they shall take into consideration, among other matters, scientific and
technological cooperation, tourism promotion andpreservation oftheenvironment."
Resolution 2oftheCouncil ofMinisters, Article 10
"Member countries may establish, through thecorresponding regulations, specific rules to
conclude other modalities ofpartial-scope agreements.
Forthispurpose, they shall take into consideration, among other matters, scientific and
technological cooperation, tourism promotion andpreservation oftheenvironment."
Agreement
No.Sector/signatory countries Original
ProtocolAdditional Protocols
No. Date
3 International land transport
Argentina, Bolivia, Brazil,
Chile, Paraguay, Peru,
Uruguay1.1.90 1 15.4.94
6 Cooperation andexchange of
goods used forenvironmental
conservation
Argentina, Brazil, Uruguay27.6.92 1
Accession of
Uruguay8.7.93
15.7.94WT/COMTD/7
Page 102
ANNEX 11
AGREEMENTS ONRENEGOTIATION OFCONCESSIONS GRANTED
DURING THE PERIOD 1962/1980 (1993-1994)
Resolution 1oftheCouncil ofMinisters, Article 1
"The contracting parties shall incorporate intothenewintegration scheme established bythe
1980 Treaty ofMontevideo, signed on12August 1980, theconcessions granted innational schedules,
listsofnon-extensive benefits andcomplementarity agreements.
Tothatend, they shall renegotiate those concessions byup-dating, improving oreliminating
them, soastoachieve agreater strengthening andbalance oftrade flows.
Theresults oftherenegotiation shall beconsistent withtheprovisions andmechanisms provided
forinthe1980 Treaty ofMontevideo."
Resolution 433oftheStanding Executive Committee, Articles 1and2
(Implementing provisions)
"The partial-scope agreements ‘onrenegotiation ofpreferences granted during theperiod
1962/1980 'shall aimtoincorporate intothenew integration scheme established bythe1980 Treaty
ofMontevideo theresults oftherenegotiation provided forinResolution 1oftheCouncil ofMinisters.
Therights andobligations established inthose agreements shall beapplicable exclusively to
thecountries which sign oraccede tothem.
Theagreements referred tointhepreceding Article shall bebased onthegrant ofpreferences
inrespect ofthecustoms duties and/or other restrictions applied bythecountries participating therein
totheimport ofnegotiated products originating intheir respective territory.
Thepreferences recorded inthose agreements maylikewise, onatemporary orseasonal basis,
besubject toimport quotas, orapply toproducts ofoneormore sectors ofthetariff nomenclature
oftheAssociation."
Agreement
No.Signatory countries Original
ProtocolAdditional Protocols
No. Date
3 Brazil, Chile 30.4.83 12
13
Naladisa
Adjustment
Prot.
1415.3.93
15.7.94
15.7.94
31.10.94
5 Argentina, Ecuador 30.4.83 Replaced byECA 21
8 Bolivia, Brazil 30.4.83 Replaced byECA 26WT/COMTD/7
Page 103
Agreement
No.Signatory countries Original
ProtocolAdditional Protocols
No. Date
9 Brazil, Mexico 30.4.83 8
Naladisa
Adjustment
Prot.
130.12.93
15.7.94
30.12.94
10 Brazil, Colombia 30.4.83 8/Rev.5
8/Rev.6
Naladisa
Adjustment
Prot.
1
223.3.83
9.12.93
10.7.94
18.11.94
7.12.94
11 Brazil, Ecuador 30.4.83 6
74.5.93
17.11.94
12 Brazil, Peru 30.4.83 Replaced byECA 25
13 Brazil, Venezuela 31.12.81 Replaced byECA 27
14 Colombia, Chile 30.4.83 Replaced byECA 24
15 Chile, Ecuador 30.4.83 Replaced byECA 32
16 Chile, Venezuela 30.4.83 Replaced byECA 23
17 Bolivia, Paraguay 30.4.83 Replaced byECA 29
18 Colombia, Paraguay 30.4.83 2
331.10.94
18.11.94
19 Ecuador, Paraguay 30.4.83 Replaced byECA 30
20 Paraguay, Peru 30.4.83 3 15.11.94
21 Paraguay, Venezuela 30.4.83 3 15.11.94
23 Colombia, Uruguay 30.4.83 6
Naladisa
Adjustment
Prot.
120.12.93
10.7.94
18.11.94
24 Ecuador, Uruguay 30.4.83 Replaced byECA 28
25 Uruguay, Venezuela 31.12.81 3
Naladisa
Adjustment
Prot.
427.5.94
27.5.94
15.11.94
26 Argentina, Chile,
Paraguay, Uruguay30.4.83 29
30
3128.7.94
18.11.94
30.12.94
27 Bolivia, Chile 30.4.83 Replaced byECA 22WT/COMTD/7
Page 104
Agreement
No.Signatory countries Original
ProtocolAdditional Protocols
No. Date
28 Chile, Peru 30.4.83 Naladisa
Adjustment
Prot.
128.6.94
9.12.94
29 Ecuador, Mexico 30.4.83 Naladisa
Adjustment
Prot.
8
931.5.93
20.12.93
2.12.94
31 Bolivia, Mexico 30.4.83 Replaced byECA 31
33 Peru, Uruguay 30.4.83 3
430.12.93
15.11.94
34 Brazil, Paraguay 30.4.83 2
330.4.93
30.12.94
35 Brazil, Uruguay 30.4.83 14
1521.3.93
30.12.94
38 Mexico, Paraguay 30.4.83 Naladisa
Adjustment
Prot.31.5.93
40 Colombia, Mexico 26.8.83 Naladisa
Adjustment
Prot.10.7.94WT/COMTD/7
Page 105
ANNEX 12
AGREEMENTS CONCLUDED WITH NON-LAIA
LATIN AMERICAN COUNTRIES (1993-94)
1980 Treaty ofMontevideo, Article 25
"Likewise, member countries maydraw uppartial-scope agreements withother Latin American
countries andareas ofeconomic integration, inaccordance with thevarious modalities foreseen inthe
third section ofChapter IIofthepresent Treaty, andunder theterms oftherespective regulative
provisions.
Notwithstanding theabove, these agreements shall besubject tothefollowing rules:
(a) Concessions granted byparticipating member countries shall notbeextensive tothe
others, excepting therelatively less-developed countries;
(b) when amember country includes products already negotiated inpartial agreements
with other member countries, concessions granted may behigher than those agreed
with theformer; inthiscase, consultation with theaffected member countries shall
becarried outinorder tofindmutually satisfactory solutions, unless therespective
partial agreements include clauses concerning automatic extension orwaiver of
preferences contained inthepartial agreements referred tointhepresent Article; and
(c) they shall bemultilaterally assessed bythemember countries within theCommittee
inorder toascertain thescope oftheagreements drawn upandfacilitate participation
ofother member countries therein."
Agreement
No.Signatory countries Original
ProtocolAdditional Protocols
No. Date
1 Mexico, Costa Rica 22.7.82 3 24.11.93
2 Argentina, Costa Rica 31.8.83 1 25.5.94
3 Argentina, ElSalvador 27.8.83 1 28.2.94
4 Argentina, Cuba 16.3.84 3 4.11.94
10 Mexico, Guatemala 4.9.84 7 3.6.94
13 Mexico, Nicaragua 8.4.85 1 4.10.93
15 Mexico, ElSalvador 6.2.86 3 11.1.94
17 Uruguay, Cuba 6.3.87 1 9.12.94
21 Brazil, Cuba 16.10.89 2 31.10.94
23 Venezuela, Guatemala 30.10.85 2 29.1.93
29 Colombia, Panama 9.7.93 Noadditional protocols
30 Peru, Cuba 25.8.94 Noadditional protocols
31 Colombia, Caricom 24.7.94 Noadditional protocols