WORLD TRADE  
ORGANIZATION   
WT/COMTD/81 
18 December 2012 
 (12-6918) 
Committee on Trade and Development Original: Spanish 
  
 
LATIN AMERICAN INTEGRATION ASSOCIATION (LAIA) 
 
BIENNIAL REPORT TO THE WTO 
 
Information on Measures Taken by LAIA Member Countries under  
the 1980 Treaty of Montevideo during the period  
1 January 1997 to 31 August 1999 
   The following attached report was rece ived from the delegation of Uruguay 
on 4 October 2012 for circulation to WTO Members. 
 
_______________ 
 WT/COMTD/81 
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  CONTENTS 
 
Page 
 
I.  INTRODUCTION .................................................................................................................. ................. 3  
II.  AGREEMENTS REACHED AND AMENDMENTS MADE ............................................................. 4  
A.  TRADE AGREEMENTS (ANNEX 1) ............................................................................................................... 4  
1.  Amendments made ............................................................................................................... ................... 4  
2.  Trade agreements re ndered in valid ............................................................................................. .......... 5 
B.  ECONOMIC COMPLEMENTARITY AGREEMENT (ANNEX 2).......................................................................... 6  
1.  Additional protocols .......................................................................................................... ...................... 6  
2.  Signing of new agreements ..................................................................................................... ................ 9  
3.  Economic Complementarity Ag reements rendered  invalid ............................................................... 19  
C.  OTHER PARTIAL -SCOPE AGREEMENTS (ANNEX 3) ................................................................................... 19  
1.  Agreements signed under Article 13 of  the 1980 Treaty of Montevideo........................................... 19  
2.  Agreements signed under Article 14 of  the 1980 Treaty of Montevideo........................................... 21  
D.  AGREEMENTS ON THE RENEGOTIATION OF THE CONCESSIONS GRANTED DURING 
THE 1962/1980  PERIOD (ANNEX 4) .......................................................................................................... 23  
1.  Extensions .................................................................................................................... .......................... 23  
2.  Renegotiation agreements  rendered invalid ..................................................................................... ... 23 
E.  REGIONAL AGREEMENTS (ANNEX ) .......................................................................................................... 24  
1.  Amendments to regional agreements in force following Cuba's a ccession to the 1980 
Treaty of Montevideo .......................................................................................................... .................. 24  
2.  Other amendments to regional agreements ....................................................................................... . 25 
F.  AGREEMENTS SIGNED BETWEEN ASSOCIATION MEMBER COUNTRIES AND NON-MEMBER 
LATIN AMERICAN COUNTRIES (ARTICLE 25 OF THE 1980  TREATY OF MONTEVIDEO ) (ANNEX  6) ........... 26  
1.  Additional Protocols .......................................................................................................... .................... 26  
2.  Agreements rend ered invalid ................................................................................................... ............ 26  
G.  AGRICULTURAL AGREEMENTS  ................................................................................................................. 26  
III.  OTHER INTEGRATIVE MEASURES  CARRIED OUT WITHIN THE 
LAIA FRAMEWORK DURING THE 1997-1998 PERIOD ............................................................. 27  
IV.  TRENDS IN TRADE ............................................................................................................... ............. 28  
ANNEXES Protocols signed during the period 1 January 1997 to 31 August 1999 .......................................... 33  
ANNEX  1 Trade agr eements ............................................................................................................ ................ 33  
ANNEX  2 Economic Complement arity Agreem ents ....................................................................................... 3 6 
ANNEX  3 Other Types of Partia l-Scope Agr eements ..................................................................................... . 41 
ANNEX  4 Renegotiation Agreements for Concessions Granted during the 1 962/1980 Period ....................... 44  
ANNEX  5 Regional Agreements  .................................................................................................................. 47  
ANNEX  6 Agreements Established between LAIA Member Countries and Latin American 
Countries not Memb ers of LAIA ................................................................................................. ... 49 WT/COMTD/81 
 Page 3 
 
 
  I. INTRODUCTION 
 Pursuant to paragraph 4(a) of the Mini sterial Decision of 28 November 1979 regarding 
"Differential and More Favourable Treatment, Reciprocity, and Fulle r Participation of Developing 
Countries," the Latin American Integration As sociation (LAIA) member countries submit, 
for consideration by the other World Trade Orga nization Member countries, this report, which 
describes the trade which took place during the period  1997 to 1998 and summarizes the situation and 
the progress made in the various mechanisms a nd instruments negotiated within the framework 
of the 1980 Treaty of Montevideo. Regarding the latt er aspect, taking into account the date when this 
report was prepared and the importance of the ev ents, it is deemed appropriate to extend the 
information period up to 31 August 1999. 
 
 During the period examined, the regional in tegration process continued to make progress, 
both as regards the consolidation of the agreements established and th e expansion of the existing trade 
liberalization process.  
 The Tenth Meeting of the LAIA Council of Ministers was held during this period and 
reaffirmed members countries' commitment to the re gional integration process and their determination 
to reinforce LAIA's role in expanding trade liberalization. 
  Cuba's request for accession to the 1980 Tr eaty of Montevideo, its acceptance by the 
Council of Ministers in November 1998, and Cuba 's subsequent integration as a full member 
on 26 August 1999, is one of the most salient features of this period and brings the number 
of LAIA member countries up to 12. It is therefor e important to point out that the 12 LAIA members 
– Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Uruguay and 
Venezuela – also belong to the World Trade Organization.  
 Following its accession to the 1980 Treaty of M ontevideo, Cuba had to assume all the rights 
and obligations imposed both by Regional Agreem ent No. 4, which establishes the regional tariff 
preference, and by the regional agreements on opening  markets (Regional Agreements Nos. 1, 2 and 3 
in favour of Bolivia, Ecuador and Paraguay, resp ectively). Likewise, Cuba concluded an Economic 
Complementarity Agreement with Venezuela (ECA 40), which replaces, with virtually the same scope, the Agreement reached between the two countries under Article 25 
of the 1980 Treaty of Montevideo (A25TM/35). 
  Moreover, the deepening of the regional in tegration process during the period was chiefly 
demonstrated by the observance of the various gradual tariff reduction schedules established in the 
economic complementarity agreements signed in recent years. Some of these agreements have, 
through compliance with the corresponding tariff reduc tion schedules, already resulted in free trade in 
almost all goods.   This furthering of preferential schemes has b een reflected in the dynamic trade relations 
among member countries. Intraregional trade c ontinued to grow over the period 1997-1998, 
reaching a record level in 1997. 
 
 Worthy of note in relation to the expansi on of the integration process was the signing of a 
new economic complementarity agreement between Ch ile and Peru in June 1998, which sets the goal 
of achieving a free trade area between the parties, among other commitments.  
 Another important event was the conclusi on of a framework agreement between the 
Andean Community and MERCOSUR in April 1998, expressing the determination to negotiate an 
economic complementarity agreement with the goal of establishing a free trade area between 
the two subregions. As a first step towards achie ving this objective, an economic complementarity WT/COMTD/81 
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  agreement between Brazil and four Andean Co mmunity countries (Colombia, Ecuador, Peru 
and Venezuela) was signed.
1 
  In addition to discussing the particular features of the new Agreements signed, Section II of this report indicates the amendments made  to other partial-scope agreements signed 
among LAIA member countries and with other La tin American and Caribbean countries. Also 
discussed are the advances made in terms of regional agreements.   Section III discusses the progress made in relati on to customs cooperation and the reciprocal 
credits and payments system. It also deals w ith Cuba's request for accession to the 1980 Treaty 
of Montevideo. 
  Section IV reports on trends in in LAIA count ries, both as regards trade with third countries 
and intraregional transactions.  II. AGREEMENTS REACHED AND AMENDMENTS MADE 
 As evidenced in previous reports, during the first half of the 1990s the regional integration 
process was characterized by dynamism and by the si gning of a series of so-called "new-generation" 
partial-scope agreements, which go beyond tariff issues and cover other matters such as market 
access, cooperation, and physical integration - ma tters which take the integration process beyond 
tariff preferences. 
 
 This report refers to the activities of me mber countries during the period 1 January 1997 
to 31 August 1998, both as regards the conclusion of ne w partial-scope or regi onal agreements – with 
a brief description of their content – and the amendm ents to agreements already signed, in each case 
identifying the subject of the amendment. 
 
 During the period in question, ne gotiations between MERCOSUR and the 
Andean Community intensified with the commitment to conclude a free trade agreement as of 2000. 
Within this framework, an economic complementarity agreement was signed between Brazil and four Andean countries (Colombia, Ecuador , Peru, and Venezuela). The other MERCOSUR 
countries are continuing negotiations with the Andean  Community and, with a view to maintaining 
trade flows, the tariff preferences agreed in the corresponding bilate ral agreements were renewed in 
succession. 
 The annexes to this report identify the par tial-scope and regional ag reements reached and 
in force. Where these exist, they also identify th e duly signed corresponding protocols of amendment. 
 
A. T
RADE AGREEMENTS (ANNEX 1) 
The agreements in the form of trade agreem ents are indicated in the relevant annex, 
together with a list of their signatories, the indu strial sectors to which they relate, the additional 
protocols, the dates of signature and a summary of the amendments' scope.  
1. Amendments made 
 No new trade agreements among memb er countries have been concluded. 
 
                                                      
1 It should be noted that there is an Econ omic Complementarity Agreement (ECA No. 36) 
between Bolivia (an Andean Community member coun try) and MERCOSUR which sets the goal of creating 
a free trade area. WT/COMTD/81 
 Page 5 
 
 
   On the other hand, changes have been made , mostly to those agreements in which the 
preferences agreed were of a temporary nature, i.e. for a fixed term or with an expiry date.   Some of the most important amendm ents during the period 1997-1998 were: 
 
(a) The dissociation of Argentina and Brazil from Trade Agreements Nos. 5, 13, 18 
and 19, corresponding, respectively, to the chemicals, phonographic, photographic, and electronics and electrical communications sectors. The commitments undertaken and the rights acquired by these two countri es under these Agreements automatically 
ceased on 1 October 1997 as the prefer ences agreed were not renewed; 
(b) the dissociation of Brazil from Trade Agreem ents Nos. 5 and 21 (chemicals sector); 
No. 9 (electricity generation); No. 10 (office machines); Nos. 12 and 19 (electronics); No. 13 (phonographic sector); No. 15  (chemicals-pharmaceuticals); 
No. 16 (petrochemicals); No. 18 (photogra phic sector); No. 20 (dyes and pigments); 
No. 22 (essential oils); No. 26 (paramedical and hospital articles) and No. 27 (glass 
sector) signed with Mexico. The commitments undertaken and the rights acquired 
under these Agreements automatically ceased when Brazil did not renew the 
preferences agreed; and 
(c) the extension of the preferences agreed by Uruguay and Mexico in Trade Agreements 
Nos. 5, 13, 18 and 19 until 31 December 2000. Likewise, the preferences agreed by Uruguay and Venezuela in Trade Agre ements Nos. 5 and 13 were extended 
until 31 December 1999. 
2. Trade agreements rendered invalid 
During the period examined, the followi ng trade agreements became invalid: 
 
- Trade Agreement No. 7A signed in th e "refrigeration and air conditioning" 
sector, in which Argentina and Uruguay participated. The Agreement became 
invalid as from 1 October 1997; 
- Trade Agreement No. 7B signed in th e "household electrical appliances" 
sector, in which Argentina and Uruguay participated. The Agreement became 
invalid as from 1 October 1997; 
- Trade Agreement No. 9 signed in the "generation, transmission and 
distribution of electricity" sector, in which Brazil and Mexico participated. 
The Agreement became invalid as from 1 January 1998; 
- Trade Agreement No. 10 signed in th e "office machines" sector, in which 
Argentina, Brazil and Mexico participat ed. The Agreement became invalid as 
from 1 January 1998; 
- Trade Agreement No. 12 signed in the "electronics and electrical 
communications" sector, in which Brazil and Mexico participated. The Agreement became invalid as from 1 January 1998; 
- Trade Agreement No. 15 signed in the "chemicals-pharmaceuticals" sector, 
in which Argentina, Brazil and Mexico  participated. The Agreement became 
invalid as from 1 January 1998; WT/COMTD/81 
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  - Trade Agreement No. 16 signed in the "petrochemicals" sector, in which 
Argentina, Brazil, Chile, Mexico and Venezuela participated. The Agreement 
became invalid as from 1 January 1998; 
- Trade Agreement No. 20 signed in the "d yes and pigments" sector, in which 
Argentina, Brazil, Chile and Mexico participated. The Agreement became 
invalid as from 1 January 1998; 
- Trade Agreement No. 21 signed in the "chemicals (surpluses and shortfalls)" 
sector, in which Argentina, Brazil, Ch ile, Mexico and Uruguay participated. 
The Agreement became invalid as from 1 January 1998; 
- Trade Agreement No. 22 signed in the "essentials oils, aromatic chemicals,, 
perfumes and flavourings" sector in wh ich Brazil and Mexico participated. 
The Agreement became invalid as from 1 January 1998; 
- Trade Agreement No. 26 signed in the "articles and appliances for hospital, 
medical, dental, veterinary and like uses" sector, in which Argentina, Brazil and Mexico participated. The Agreement became invalid as from 
1 January 1998; 
- Trade Agreement No. 27 signed in the "glass" sector, in which Brazil, 
Mexico and Venezuela participated. The Agreement became invalid as from 
1 January 1998. 
B. E
CONOMIC COMPLEMENTARITY AGREEMENT (ANNEX 2) 
1. Additional protocols 
 The member countries of the Association have  been engaged in multiple negotiation activities 
related to the signing of a dditional protocols which amende d the economic complementarity 
agreements in effect during the period 1997-1998. Th e majority of these amendments essentially deal 
with extending the validity of the preferences nego tiated or, in some cases, expanding liberalization 
programmes by granting new preferences. The follo wing economic complementarity agreements have 
been amended in accordance with the foregoing: 
 
- Mexico and Uruguay (ECA No. 5); 
- Argentina and Mexico (ECA No. 6); 
- Mexico and Peru (ECA No. 8); 
- Argentina and Peru (ECA No. 9); 
- Argentina and Colombia (ECA No. 11); 
- Argentina and Venezuela (ECA No. 20); 
- Argentina and Ecuador (ECA No. 21); 
- Bolivia and Chile (ECA No. 22); 
- Brazil and Peru (ECA No. 25); 
- Brazil and Venezuela (ECA No. 27); 
- Ecuador and Uruguay (ECA No. 28); 
- Ecuador and Paraguay (ECA No. 30); 
- MERCOSUR-Chile (ECA No. 35); 
- MERCOSUR-Bolivia (ECA No. 36). 
 
 It should also be noted that various kinds of amendments were made to the 
following agreements. WT/COMTD/81 
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ECA No. 1 (Argentina and Uruguay) 
  Established the conditions governing reciprocal  trade in automotive-sector products between 
Argentina and Uruguay in 1997 and 1998 (Fourth  Additional Protocol of 13 August 1997 
and Fifth Additional Protocol of 5 November 1998). 
 
ECA No. 2 (Brazil and Uruguay) 
  Established the vehicle quotas for 1997, 1998 and 1999 to be covered by the 
Agreement's automotive regime, regulating reciprocal  trade in the sector (Twenty-Second Additional 
Protocol of 28 February 1997; Twenty-Third  Additional Protocol of 12 February 1998; 
and Twenty-Fourth Additional Protocol of 23 December 1998).  
ECA No. 16 (Argentina and Chile) 
  The agreements reached between the two Governments for the purpose of facilitating 
implementation of the mining projects entitled "El Pachón" and "Pascua Lama" were formalized and made operative (Nineteenth Additional Protoc ol of 29 January 1997; Twentieth Additional 
Protocol of 29 January 1997; Twenty-Seco nd Additional Protocol of 30 March 1998; 
and Twenty-Third Additional Protocol of 30 March 1998). 
 
 The Agreement also incorporates standards fo r electrical interconnection and electric power 
supply between the two countries. Article 1 of these regulations provides that each party shall 
promote and encourage a legal regime that allows na tural or legal persons to engage in free trade, 
export, import and transport of electric power be tween the two countries (Twenty-First Additional 
Protocol of 29 December 1997). 
 
ECA No. 18 (Argentina-Brazil-Paraguay-Uruguay) 
  As approved by the Common Market Council through Decisions No. 5/94 and No. 24/94, the incorporation of the final adaptation regime to  the customs union was formalized. This adaptation 
regime determines the duties to be applied annua lly to intra-MERCOSUR trade for a list of tariff 
headings corresponding to each of the signatory c ountries. The tariff reduction programme provided 
in this regime has been in force since 1 Ja nuary 1995 and applies until the rates reach 0% 
(1 January 1999 for Argentina and Brazil; 1 January 2000 for Paraguay and Uruguay) 
(Seventh Additional Protocol of 1 December 1998). 
 
 It was also agreed to designate the Common Market Group as the body responsible for administering ECA No. 18 with the task of ensu ring compliance with the ECA and registering the 
instruments required to facilitate the establishmen t of the Common Market (Eighteenth Additional 
Protocol of 17 December 1997).  
 In addition, the Regulations for impl ementing the MERCOSUR Safeguards Regime 
(Nineteenth Additional Protocol of 17 Decemb er 1997) were adopted. As provided in these 
Regulations and in accordance with Article s 1 and 5 of Annex II to ECA No. 18, 
this Safeguards Regime applies exclusively to imports from third countries.  
 As provided by Article 1 of these Regulations, safeguard measures mean those envisaged 
in Article XIX of the General Agreement on Ta riffs and Trade – GATT 1994 (Emergency Action 
on Imports of Particular Products) applicable to imports from non-MERCOSUR member countries 
and according to the interpretation in  the Agreement on Safeguards of the 
World Trade Organization (WTO). WT/COMTD/81 
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 On this basis, the MERCOSUR Safeguards Regul ations set out a series of provisions in the 
various chapters that are, for the most part , consistent in scope with the rules in the 
WTO Agreement on Safeguards, to which are added pr ocedural regulations for dealing with safeguard 
measures, regulating separately situations that affect MERCOSUR as a single entity from those that 
only affect one particular member country. 
  It was also agreed to adopt the World Trad e Organization's Agreement on the Application of 
Sanitary and Phytosanitary Measures as a regul atory framework for applying sanitary and 
phytosanitary measures in member countries. In this  respect, the parties agreed that the work on 
harmonizing sanitary and phytosanitary measures ta king place in various negotiating forums should 
be adapted to the rules laid down in the afor ementioned WTO Agreement (Twentieth Additional 
Protocol of 5 March 1998).   Furthermore, the Protocol on Cooperati on and Reciprocal Assistance among MERCOSUR 
Customs Administrations in order to prevent and combat customs offences was incorporated into 
ECA No. 18. Under this Protocol, member countries undertake to provide assistance and ensure reciprocal cooperation through their respective cust oms administrations to prevent, investigate and 
punish any customs offence, both as regards matters of common interest and t hose of interest to a 
particular member country (Twenty-Firs t Additional Protocol of 5 March 1998). 
 
 A list of products subject to the MERCOSU R Rules of Origin was also established, 
setting out the requirements to be met, in each ca se, for imports by countries that signed the 
Agreement. Countries were also authorized to require compliance with MERCOSUR origin for all 
tariff headings not included in the aforementioned lists  up to 1 January 1999. In addition, in order to 
ensure that the instruments used  in intra-MERCOSUR trade are co mpatible with the trade policy 
aspects to be found in other agreements signed by MERCOSUR with LAIA countries (for example, 
with Chile and Bolivia), the restrictions on the "drawback" or temporary admission regimes established by the Thirteenth Additional Protoc ol of 30 December 1994 would not be applied up 
to 1 January 1999 (Twenty-Second Ad ditional Protocol of 8 August 1998). 
 
ECA No. 22 (Bolivia and Chile) 
  It was agreed to incorporate the Agreem ent on Cooperation and Coordination in Matters 
of Forestry and Agricultural Health concluded between the two countries in April 1993 into ECA No. 22. The aforementioned Agreement c oncerns principles, standards and procedures 
relating to animal and plant health requirements governing trade in animals and plants between 
Bolivia and Chile. It should be emphasized that the parties undertake to ensure that the animal and 
plant health measures applied under this Agre ement are consistent with the World Trade 
Organization's Agreement on the Applicati on of Sanitary and Phytosanitary Measures 
(Eighth Additional Protocol of 23 December 1997).   The parties also adopted an agreement on st andardization measures under which they agreed 
some additional provisions in addition to those in the WTO's Agreement on Technical Barriers to 
Trade (Ninth Additional Protocol of 1 January 1998).  
ECA No. 23 (Chile and Venezuela) 
 
 A tariff reduction programme was established for products included in the lists of exceptions 
to the liberalization programme, found in Annex 3 to  the Agreement. Under this programme, various 
time-frames for tariff reduction are determined and include time-limits of 5, 7, 9, 10, 12, 14 
and 15 years depending on the pr oduct concerned (Third Additiona l Protocol of 1 September 1998). WT/COMTD/81 
 Page 9 
 
 
  ECA No. 24 (Colombia and Chile) 
 As in ECA No. 23, the parties agreed to establish a special tariff reduction programme for 
products contained in the lists of exceptions  to the liberalization programme (Annex 3). 
This programme determines tari ff reduction schedules which range from immediate reduction up to a 
maximum term of 15 years (Sixth A dditional Protocol of 14 August 1997). 
ECA No. 35 (MERCOSUR-Chile) 
 
 The parties entirely replaced Appendix 4 and Article 15 of Annex 13 and established special 
requirements of origin to be met by products in the telecommunications and informatics sectors in 
order to be eligible for the preferences provide d in the Agreement (Sixth Additional Protocol 
of 11 September 1997 and Eighth Additi onal Protocol of 23 January 1998). 
 The heading concerning "Other fish prepar ations" with the description "Surimi products" 
was incorporated into the regime of origin (Ninth Additional Protocol of 25 June 1998) 
and a certificate of origin regime was established for mineral products exported through pipelines 
(Twelfth Additional Protocol of 13 October 1998). 
 Lastly, to comply with Article 51 of the Ag reement, the parties incorporated into the 
liberalization programme new preferences emerging from the negotiations held after the signature 
of the Chile-Canada Agreement (Fourteenth Additional Protocol of 13 October 1998). 
 
ECA No. 36 (MERCOSUR-Bolivia) 
 
 The parties adopted a new format for certificates of origin (First Additional Protocol 
of 10 December 1998), entirely replacing the special re quirements of origin to be met by products in 
the telecommunications and informatics sectors (Second Additional Protocol of 5 August 1998), 
and amending the preferences for hydrocarbons (Thi rd Additional Protocol of 21 January 1999) 
and Article 42 of the Agreement (Fourth Additional Protocol of 29 June 1999). 
 
2. Signing of new agreements 
 In total, three new economic complementarity agreements within the LAIA were signed over 
the period between 1 January 1997 and 31 August 1999, two of which were bilateral, namely, 
the Agreement between Chile and Peru (ECA No. 38) and the Agreement between Cuba and 
Venezuela (ECA No. 40). The remaining agreemen t was a plurilateral one, namely, the Agreement 
between Brazil and four Andean Community countr ies (Colombia, Ecuador, Peru and Venezuela) 
(ECA No. 39). 
 The main features of each ag reement are described below. 
Economic Complementarity Agreement No. 38  
signed by Chile and Peru on 22 June 1998 
 
- Objectives 
  The basic objective of the Agreement is to  create an extended economic area within the 
shortest possible time so as to allow the free mo vement of goods and services and facilitate full 
utilization of production factors. The Agreement also  sets the following objectives: to reinforce trade 
relations between the signatories; to foster coordina ted action in international economic forums and in 
relations with industrialized countries with a view to negotiating access to global markets; to promote WT/COMTD/81 
Page 10  
 
  economic complementarity; to boost investment aime d at taking full advantage of markets in the 
signatories; and to strengthen their capac ity for competition on global markets. 
 - Trade liberalization programme 
 
 The liberalization programme in this agreemen t covers the tariff universe and the reduction 
schedule started to apply as of 1 July 1998, with th e majority of tariff headings being fully liberalized 
in July 2003.   The Agreement, however, provides for differe nt time-frames for the elimination of import 
duty and these are: 
 
 Immediate liberalization as of 1 July 1998 for a list of 2,600 headings in the 
NALADISA, corresponding to 38% of the total number of headings in this nomenclature; 
 an automatic and linear reduction schedule lasting five years for a list 
of 2,440 headings in the NALADISA (35% of the total) so that they are wholly duty 
free as of 1 July 2003; 
 a ten-year automatic and linear reduction schedule with a liberalization timetable 
starting on 1 July 2002. The tariff headings in  this category are therefore to be wholly 
duty free as of 1 July 2008. The concessions for this period include 729 headings in 
the NALADISA; 
 a 15-year reduction schedule with a linear  and automatic time-frame beginning 
on 1 July 2008. These headings (270) are to be duty free as of 1 July 2013; 
 an 18-year reduction schedule beginning on 1 Ju ly 2008, with the headings under this 
category (24) becoming wholly duty free as of 1 July 2016; 
 there is a special reduction schedule for the textiles sector, which provides for 
different time-frames and levels for trade liber alization. A first group of headings (45) 
is to be wholly duty free over a period of close to three years, even though there are two different reduction schedules. All textile  products included in this classification 
are to be duty free as of 1 January 2001. There are three liberalization time-frames for 
the remaining textile products lasting five, six and eight years, respectively. 
 The starting point for the agreed reductions is the national tariff schedule in effect in each 
country at the time of the negotiations and whose level is specifically indicated in the Agreement itself.   The Agreement also includes some concessions th at were in effect between the two countries 
prior to its conclusion and these have been inco rporated as the starting point for the reduction. 
 - Products exempt 
 
 The products subject to the price band system (Chile) or to variable specific duties (Peru) are excluded from the liberalization programme. Wheat a nd wheat-flour, oilseeds, edible vegetable oils 
and sugar are the products exempt in the case of Chile.   For Peru, they are: wheat, rice, sugar, maize and dairy produce. WT/COMTD/81 
 Page 11 
 
 
   
- Non-tariff restrictions 
  As part of the liberalization programme, bot h countries undertook not to apply or maintain 
any non-tariff restrictions on reciprocal trade, wh ether on imports or exports, either in the form 
of quotas, licensing or any other measures, without prejudice to the provisions of Article 50 
of the 1980 Treaty of Montevideo and Articles XX and XXI of the GATT 1994.  - Origin regime 
 
 For a negotiated product to be considered as origin ating in the territory of one of the parties, 
the Agreement lays down the following classification criteria in an annex:  
(a) Goods wholly produced in the territory of the signatory countries solely and 
exclusively using material originating in either country; 
(b) animal, plant or mineral products extracted, harvested or gathered, born or bred or 
captured in the territory of the parties and GATT exclusive economic zones by vessels registered, chartered or leased by companies established in either country; 
(c) products of the sea caught outside territorial  waters by vessels registered in the 
signatory countries; 
(d) goods produced on board factory vessels using marine species provided that the 
vessels are registered in the signatory countries; 
(e) goods obtained by natural or legal persons be longing to one of the signatory countries 
from the seabed or subsoil outside territorial waters; 
(f) goods produced using non-originating material provided that they result from a 
production process carried out in the territories of the parties and giving them a new 
specification through a change in tariff classification in the NALADISA; 
(g) goods that do not comply with the change  in tariff classification provided that 
the c.i.f. value of non-originating materials does not exceed 50% of the f.o.b. export value of the goods; 
(h) goods resulting from mounting or assembly operations carried out within the 
territories of the signatories using non-originating materials, whether or not there is a 
change in tariff heading, providing that the c.i.f. value of the non-originating 
materials does not exceed 50% of the f.o. b. export value of the goods; and 
(i) wrapping, containers, cases, packaging, covers and like materials containing the 
respective goods provided that these comply w ith the origin requirements specified. 
 The Agreement also determines specific origin requirements for a list of products and these 
take precedence over the general criteria. 
  The Agreement provides for the "cumulation" pr inciple for determining origin. According to 
this principle, materials originating in a signatory  country and used to produce or transform the said 
goods are deemed to originate in the other signato ry country. This criterion applies both to general 
criteria of origin and specific origin requirements. 
 WT/COMTD/81 
Page 12  
 
  - Safeguard clauses 
 
 The Agreement has three different regimes fo r the application of safeguards: bilateral 
safeguards, provisional safeguards and global safeguards.  
(a) Bilateral safeguards 
A bilateral safeguard may be applied wh en there are unforeseen circumstances, 
particularly as a result of the concessions granted. It starts to apply at the latest one year from the date of initiation of  the procedure and remains in effect for 
up to two years, renewable for one further year. 
(b) Provisional safeguards 
In critical circumstances where delay would cause damage which it would be difficult 
to repair, the Agreement allows the possi bility of adopting a provisional safeguard 
measure pursuant to a preliminary but objec tive determination of clear evidence that 
imports have caused or are threatening to cause serious injury to the 
domestic industry. 
Such a provisional measure may not exceed 180 days and may not be applied again 
until 360 days have elapsed since the adoption of the original measure. 
(c) Global safeguards 
According to Article 3, each signatory may also apply the safeguards provided 
by Article XIX of the GATT 1994 and the WTO Agreement on Safeguards. 
- Unfair trade practices 
 
 The Agreement condemns any unfair trade pract ices and the parties undertake to eliminate 
measures that may distort bilateral trade.  
 In this connection, both countries undertake not to grant any new export subsidies that affect 
trade between them and, by 31 December 2002 at the la test, not to apply export  subsidies to bilateral 
trade. In addition, it is provided that, after 31 December 2002, any products  receiving export subsidies 
shall not benefit from the liberalization programme agreed.   If any unfair practice occurs in bilateral trade, the parties will apply their domestic legislation, 
which must be based on the relevant WTO rules. 
 - National treatment 
  Article 19 establishes that a signatory country sh all accord to the products of the other country 
treatment no less favourable than that accorded to like products of national origin. Such treatment 
applies in respect of taxes, fees and other charges, as  well as in relation to le gislation, regulations and 
other rules affecting the sale, purchase, distributio n and use of the products on the domestic market. 
 WT/COMTD/81 
 Page 13 
 
 
  - Customs valuation 
 
 The signatories determined that the Ag reement on Implementation of Article VII 
of the General Agreement on Tariffs and Trade 1994, including the respective reservations notified to 
the WTO by each of the countries, would govern the customs valuation regime applicable to 
reciprocal trade. 
 - Government procurement 
  The parties agreed that during the first y ear in which the Agreement was in force the 
provisions regulating the negotiation of government procurement between the two countries would be 
addressed and proposals made.  - Sanitary and phytosanitary measures 
 
 Both countries undertake to prevent sanitary  and phytosanitary measures from constituting 
barriers to trade; to that end, in a special annex, they determined that this issue shall be governed by 
the provisions in the WTO Agreement on the Appli cation of Sanitary and Phytosanitary Measures. 
  In addition, the Agreement contains a commi tment to create the n ecessary mechanisms and 
tools for achieving transparency, fluidity and time- frames for procedures for granting authorizations, 
certificates and sanitary listing or registration. Fo r these purposes, the time-limits for sanitary listing 
and/or registration in force under each country's domestic legislation apply. 
  The Agreement on Cooperation and Coordina tion in Agricultural and Livestock Health 
Matters between the two Government s forms part of the Agreement. 
 
- Services 
  The Agreement includes the co mmitment to adopt measures to  liberalize bilateral trade 
in services. A period of one year is therefore given for formulating a pertinent proposal.  
 Likewise, in the area of tourism, it is agr eed to conclude a cooperation agreement for the 
purpose of joint promotion of integrated tourism routes vis-à-vis  third countries 
and technical assistance.  - Dispute settlement 
  A dispute settlement regime is established, to  be responsible for settling disputes arising in 
relation to interpretation or im plementation of the Agreement's provisions, or non-compliance, by 
means of reciprocal consultations and direct negot iations with a view to arriving at a satisfactory 
solution. Negotiations between the parties may not l ast for more than 20 days. If no settlement of the 
dispute is reached at the end of this period,  an administrative commission may be convened. 
This commission must meet within 15 days from receipt of the request and has a further 15 days in 
which to propose a solution. If the commission fails to resolve the dispute, an ad hoc arbitral tribunal 
may be established.   There is no appeal against rulings by the arbitral tribunal, which are binding on the parties. 
If 30 days after the ruling has been notified, one of the parties has not complied with it, the other party 
may adopt temporary compensatory measures.  WT/COMTD/81 
Page 14  
 
  - Other provisions 
 
 The agreement also contains provisions on investment, economic c ooperation, intellectual 
property and free zones. The parties undertake to set up a working group to review opportunities for 
industrial complementarity in the automotive sector. 
 
 As explicitly stipulated by the parties, upon  the entry into force of this Agreement, 
the preferences and standards established by both countries in ECA No. 28 became invalid. 
 
Economic Complementarity Agreement No. 39 signed  by Colombia, Ecuador, Peru and Venezuela  
(members of the Andean Community) and Brazil 
 
- Objectives 
  By signing this Agreement, the parties agreed to establish fixed margins of preference as a 
first step towards creating a free trade area between the Andean Community and MERCOSUR. 
 - Trade liberalization programme 
 Both Brazil, on the one hand, and the Andean  Community member countries, on the other, 
agreed to grant a series of reciprocal tariff pref erences for the import of the selectively negotiated 
products expressly included in the Agreement. These preferences consist of fixed percentage 
reductions applied to their respective import tariffs applicable to third countries (Annexes I and II to 
the Agreement). A special list of products is al so established under which Ecuador grants to and 
receives from Brazil exclusive tariff pref erences (Annex III to the Agreement). 
  The parties agreed not to maintain or intr oduce any new non-tariff restrictions on their 
reciprocal trade which might affect the products covered by the Agreement. 
 - Origin regime 
  The benefits derived from the Agreement appl y to products which qualify as originating in 
the signatory countries in accordance with the Gene ral Origin Regime approved by Resolution 78 of 
the LAIA Committee of Representatives. Specific orig in requirements applicable to certain products 
are annexed to the Agreement.  - National treatment 
 As regards national treatment, the Agreement est ablishes that the parties shall be governed by 
the provisions of Article 46 of the 1980 Treaty of Montevideo and Article III of the GATT 1994. It is 
also provided that the parties may take measures in accordance with the commitments they have 
undertaken pursuant to the WTO Agreemen t on Trade-Related Investment Measures. 
 - Customs valuation 
 It is provided that the parties shall be gove rned by the commitment s undertaken pursuant to 
the Agreement on Implementation of Article VII of  the General Agreement on Tariffs and Trade 1994 
and Resolution 226 of the LAIA Committee of Representatives.  WT/COMTD/81 
 Page 15 
 
 
  - Anti-dumping and countervailing measures 
 
 The parties agreed to be governed by their r espective domestic legislati on and determined that 
this should be consistent with the pertinent WTO Agreements in force. 
 
- Safeguard clauses 
 
 The parties agreed to comply with the provi sions of Resolution 70 of the LAIA Committee 
of Representatives as regards the products covered by the liberalization programme. It is stipulated, 
however, that the said provisions shall not hi nder the due application of the WTO Agreement 
on Safeguards, where applicable. 
 - Technical barriers to trade and sanitary and phytosanitary measures 
  The parties undertake not to adopt, maintain, or apply technical regulations, conformity 
assessment procedures, metrological provisions, or sanitary or phytosanitary measures which 
constitute unnecessary barriers to trade. To this end,  specific provision is made to ensure that these 
matters are governed by the WTO Agreement on T echnical Barriers to Trade, the WTO Agreement 
on the Application of Sanitary and Phytosanitary Measures, and the LAIA Framework Agreement for 
Trade Promotion through the Overcoming of Technical Barriers to Trade.  
- Dispute settlement 
 
 The Agreement establishes a dispute settlement mechanism by means of which disputes that may arise from implementation of the Agreement are to be resolved through reciprocal consultation 
and direct negotiation within a maximum period of  30 calendar days. Subject to agreement by the 
parties, this period may be extended by th e same amount of time. Upon the lapse of the 
aforementioned periods, the parties shall refer th e matter to the administrative commission of the 
Agreement for its consideration. After assessing the situation, within 45 days the commission shall 
make the relevant recommendations for settlement of  the dispute. To that end, the commission may 
call upon expert groups to provide the technical advice it deems pertinent.  
- Entry into force 
 
 The Agreement entered into force on 16 August 19 99 for a term of two years, renewable by 
agreement of the parties. In th e event of the signing of an economic complementarity agreement 
establishing a free trade area between MERCOSUR a nd the Andean Community, the Agreement shall 
be superseded by the new ECA. 
  The entry into force of this Agreement rendere d invalid the tariff preferences and related rules 
included in the following: Partial-Scope Re negotiation Agreement No. 10 between Brazil 
and Colombia; Partial-Scope Renegotiation Ag reement No. 11 between  Brazil and Ecuador; 
Partial-Scope Economic Complement arity Agreement No. 25 between Brazil and Peru; and Economic 
Complementarity Agreement No. 27 between Brazil and Venezuela. It is stipulated, however, that the 
provisions in these Agreements and their Protocol s which concern matters not covered by the new 
Agreement shall remain in force, as will provisions th at are not inconsistent with the new Agreement. 
Economic Complementarity Agreement No. 40 signed by Cuba and Venezuela 
 The Governments of the two countries, emphasizing the need to strengthen Latin America's 
integration process and the priority to be given to  expanding economic relations between them, agreed 
on 27 August 1999 to sign an Economic Compleme ntarity Agreement, which rendered invalid and WT/COMTD/81 
Page 16  
 
  superseded the Partial-Scope Agreement signed in  accordance with Article 25 of the 1980 Treaty of 
Montevideo (AAP/A25TM/35) and has virtually the same scope. 
- Objectives 
 
 The Agreement has the following objectives: 
 
(a) To facilitate, expand, diversify and prom ote trade between the parties and all 
related operations; 
(b) to ensure that the bases for bilateral foreign trade flows are harmonized and balanced; 
(c) to reinforce trade by granting tariff and non-tariff preferences between Cuba 
and Venezuela; and 
(d) to adopt the measures and take the action n eeded to catalyse the integration process, 
for which purpose cooperation, investment and economic complementarity activities between the parties will be boosted. 
- Tariff preferences 
 
 The parties agree to grant tariff preferences based on a selective list of products set out in Annexes I and II to the Agreement.   These tariff preferences consist of a percentage  reduction in the duties imposed by the parties 
on their imports from third countries given most-fa voured-nation treatment and may be modified by 
common agreement and subject to negotiation. 
 - Non-tariff restrictions 
  The parties agreed that, as of the entry into fo rce of the Agreement, they could not adopt or 
maintain restrictions on the impor t of the products negotiated, excep t for measures intended to protect 
public morals, safety, human, animal or plant life or health, etc.  - Domestic tax treatment 
  In respect of taxes, fees and other domestic charges, products originating in the territory of a 
party shall, in the territory of the other party, be accorded treatment no less favourable than that 
applicable to domestic products under like circumstances.  - Rules of origin 
 
 The parties shall apply the rules for determining the origin of goods to imports covered by the 
Agreement, together with the procedures for certif ying and verifying them, as listed in Annex III 
to the Agreement.  - Safeguard clauses 
 
 The parties may apply remedial measures on a temporary basis when any of the products 
covered by the Agreement are imported in such quantities or under such conditions as to cause or 
threaten to cause serious injury to the domest ic industry producing like, similar or simply 
competitive goods.  WT/COMTD/81 
 Page 17 
 
 
   The safeguard may be imposed for up to one year  and is renewable for the same period if the 
causes for which it was imposed persist and shall cons ist of an increase in the tariff, which may not 
exceed the tariff applicable to third parties for the same product, at the time the measure is adopted. 
  The parties shall conserve their rights a nd obligations under the Agreement on Safeguards 
of the World Trade Organization (WTO) in relation to any emergency measures adopted by one of the 
parties to the Agreement when implementing it.  - Withdrawal of preferences 
 
 During the validity of the Agreement, ther e shall be no unilateral withdrawal of the 
preferences agreed; the exclusion of a preference as a result of negotiations on revising the Agreement 
or the expiry of a temporary preference at the end of its term shall not be considered withdrawal.  - Unfair international trade practices (dumping and subsidies) 
  If situations caused by dumping or subsidies arise in trade, the parties may determine and 
apply anti-dumping and countervailing duties, in accor dance with their respective domestic legislation 
and with the relevant provisions in the Agre ement on Subsidies and Countervailing Measures 
of the World Trade Organization (WTO).  
- Trade in services 
 
 In order to facilitate the supply of services by one party in another, the Agreement's 
administrative commission is requested to draw up  an agreement on trade in services, taking into 
account the General Agreement on Trade in Serv ices of the World Trade Organization (WTO), 
as well as the various regional agreements being negotiated. 
 - Transport 
  In order to facilitate transport between their respective territories, the parties will put forward 
proposals and hold bilateral negotiations, signi ng additional protocols to the Agreement 
for this purpose. 
 - Technical standardization 
  The parties may sign additional protocols to the Agreement intended to create disciplines and 
procedures in support of the growth of bilateral trade, ensuring that the preparation, adoption or 
implementation of technical and i ndustrial standards, public health requirements and plant and animal 
health standards do not become barriers to trade.  - Investment 
 
 The parties agreed to boost reciprocal invest ment by signing a bilateral investment promotion 
and protection and trade treaty.  - Double taxation 
 
 The parties agreed to initiate negotiations  on concluding an agre ement to avoid double 
taxation so as to promote investment and foster enterprise creation.  WT/COMTD/81 
Page 18  
 
  - Trade cooperation 
 
 The parties shall encourage trade cooperation in order to take better advantage of the 
preferences granted and the trading opportunities a fforded. Such cooperation shall be in the form 
of action such as trade dissemination and promotion programmes, facilitating official and private 
missions, holding fairs, exhibitions, inform ation seminars and market surveys. 
  They shall also promote the training of qualified experts in areas of interest.  - Intellectual property 
  Parties shall grant protection and adequate means of defence to nationals of the other party on 
the same conditions as those given to its own nationals.   It was also agreed that any advantage, prefer ence, privilege or immunity given by a party to 
its nationals shall immediately be granted without conditions to owners of intellectual property rights 
in the other party.  - Dispute settlement 
  Disputes that may arise in relation to the inte rpretation, application or  implementation of the 
Agreement or non-compliance with its provisions shall be resolved by means of direct consultation or 
through mediation or arbitration.  - Administration and evaluation of the Agreement 
 
 The parties shall regularly evaluate the provisions and preferences granted under the 
Agreement in order to make harmonized and bala nced progress on issues of integration with the 
ultimate aim of generating fair  benefits for both countries. 
  The Agreement shall be enforced by an administrative commission, chaired by the 
Foreign Trade Institute in the case of Venezuela and by the Ministry of Foreign Trade in Cuba's case. 
 
- Entry into force and term 
  The Agreement shall enter into force on the date on which both Governments have 
incorporated it into thei r respective legal systems. 
 
 The Agreement shall be for a term of three y ears, renewable automatically for the same length 
of time provided that neither of the parties notifies its  intention not to renew it at least 90 days prior to 
the end of the respective period.   The Agreement shall render invalid and shall replace the Partial-Scope Agreement signed by 
the Governments of Venezuela and Cuba under Article 25 of the 1980 Treaty of Montevideo 
(AAP/A25TM/35) as of its entry into force.  - Withdrawal 
 
 Either party may withdraw from the Agreement, notifying the other party of its 
decision 180 days prior to deposit of the resp ective instrument of withdrawal with the 
General Secretariat of the LAIA.  WT/COMTD/81 
 Page 19 
 
 
   Once the withdrawal has been formalized, th e commitments made and rights acquired under 
the Agreement shall automatically cease for the country withdrawing. 
 - Accession 
 
 The Agreement is open to accession, subject to acceptance and negotiation by the remaining 
LAIA countries and other Latin Am erican and Caribbean countries. 
 - Consistency with regiona l agreements - Convergence 
 
 The parties determine that the Agreement sha ll be applied in a manner consistent with the 
commitments they have assumed under othe r preferential-type trade agreements. 
  They shall also promote the convergence of this  Agreement with other integration agreements 
of Latin American and Caribbean countries, in  accordance with the mechanisms established 
in Chapter IV of the 1980 Treaty of Montevideo. 
 
3. Economic Complementarity Agreements rendered invalid 
 As mentioned in section 2, the signing of ECA No. 38 between Chile and Peru rendered 
invalid the preferences and related rules in Pa rtial-Scope Economic Comp lementarity Agreement 
No. 28 signed by Chile and Peru. 
 
 Likewise, the signing of ECA No. 39 among Brazil and Colombia, Ecuador, Peru and Venezuela rendered invalid the tariff preferences and related rules contained in Partial-Scope 
Economic Complementarity Agreements Nos.  25 and 27 signed by Brazil with Peru 
and Venezuela, respectively. 
C. O
THER PARTIAL -SCOPE AGREEMENTS (ANNEX 3) 
1. Agreements signed under Article 13 of  the 1980 Treaty of Montevideo 
Energy Integration Agreement signed by Argentina and Bolivia  
(AAP.PC/10 of 16 February 1998) 
 
 The objective of this Agreement is to optimize the use of natural energy resources, liquid and 
gaseous hydrocarbons and electric power. 
 For this purpose, the Agreement lays down pr ovisions intended to facilitate and permit trade 
in and transport of energy between Argentina and Bolivia. 
 It also includes rules to encourage and perm it private investment in developing the use 
of hydroelectricity jointly by the two countries on shared water resources. 
 It promotes, inter alia, conditions for competitiveness, tr ansparency in procurement, 
the development of infrastructure and non-appli cation of restrictions on trade in hydrocarbons 
and electric power. WT/COMTD/81 
Page 20  
 
  Framework Agreement for Trade Promotion through the Overcoming 
of Technical Barriers to Trade in LAIA Member Countries 
(AAP.PC 11 of 8 December 1997) 
 The objective of the Agreement is to preven t the development, adoption and application 
of technical regulations, technical standards and conformity assessment from becoming unnecessary 
technical barriers to intraregional trade. 
 By signing this Agreement, the signatories rea ffirmed the rights and obligations contained in 
the Agreement on Technical Barriers to Trade (TBT) of the World Trade Organization. 
 It should also be noted that, on 8 December 1997, all LAIA member countries, except for 
Uruguay, signed this Agreement and it came into force on 31 July 1998 after having been 
incorporated into the legal systems of three countri es. In late 1998, Argentina, Brazil, Chile, Ecuador 
and Peru had incorporated the Agreement into their domestic legislation. Uruguay subsequently 
acceded to the Agreement on 3 March 1999. 
 An administrative commission, composed of representatives from the signatories, 
is responsible for administering the Agreement; the General Secretariat of the LAIA acts as secretary 
of the administrative commission, which is respon sible for adopting its own rules of procedure. 
Lastly, it should be noted that the commission is currently being set up. 
Agreement on Energy Cooperation between the Argentine Republic  
and the Republic of Peru (AAP.PC/12 of 12 August 1998) 
 The Agreement is based on the advantages and the necessity of establishing cooperation 
programmes and projects between the two countries in the area of energy. The Agreement provides 
the following mechanisms for engaging in such cooperation: 
(a) Promotion of new technologies; 
(b) exchange of scientific and technical information; 
(c) mutual assistance in training scientific and technical personnel; 
(d) exchange of experts and academics for courses and seminars; 
(e) mutual consultation on scientific and technological problems; 
(f) coordination for the training of joint working groups in scientific 
and technological research; 
(g) technical cooperation to develop new sources of energy; 
(h) exchange of knowledge on rational use of energy so as to protect the environment; 
(i) collaboration in creating enterprises for the production, marketing and transport 
of energy; 
(j) exchange of information on legal regulations; and 
(k) cooperation in creating harmonized legal standards to permit better regional 
integration of energy. WT/COMTD/81 
 Page 21 
 
 
   
Animal Health Agreement between the Argentine Republic  
and the Republic of Peru (AAC.PC/13 of 12 August 1998) 
  The objective of the Agreement is to draw  up joint programmes for Argentina and Peru 
dealing with regulations on trade in live animals and their products and to establish mechanisms for 
the necessary technical cooperation and ongoing information on animal health.   The Agreement's provisions provide for a pe rmanent commitment to exchange information 
and to identify animals and animal products of priority  interest for trade and, on that basis, to draw up 
proposals for sanitary regulations on trade between the two countries. 
 
Agreement on Cooperation and Coordination on Matters of Plant Health and  
Quarantine between the Argentine Re public and the Republic of Peru  
(AAP.PC/14 of 12 August 1998) 
 
 The Agreement promotes cooperation between the two countries in order to prevent the 
introduction, installation and propagation of phyto sanitary problems subject to quarantine regulations 
in plants and other agricultural products traded between the two countries.   Under the Agreement, a standing joint Argen tine-Peruvian phytosanitary technical group was 
set up with the main task of recommending work prog rammes in specific areas of mutual interest for 
the purpose of implementing the Agreement.  
First Additional Protocol to the Ag reement on Facilitating the Transport 
of Dangerous Goods (AAP.PC/7) signed by Argentina, Brazil, 
Paraguay and Uruguay (AAP.PC/7.1 of 16 July 1998) 
 
 Through this Protocol, the regime on violati ons and sanctions applicable to land transport 
of dangerous goods in MERCOSUR countries is incor porated into the Agreement on Facilitating the 
Transport of Dangerous Goods as Annex III.  2. Agreements signed under Article 14 of  the 1980 Treaty of Montevideo 
Framework Agreement on the Creation of the Free Trade Area  
between MERCOSUR and the Andean Community  
(AAP/A14TM/11 of 16 April 1998) 
 The purpose of this Agreement is to establis h the legal and institutional framework for the 
creation of a free trade area between MERCOSUR and the Andean Community. As part of the 
negotiating bases for achieving reciprocal liberali zation of trade, it was agreed that between 
1 October 1998 and 31 December 1999 the parties w ould negotiate a free trade agreement covering 
the tariff universe, to enter into force on 1 January 2000.   As regards the participation of Bolivia, it wa s specifically stated that ECA No. 36 would 
apply to its relations with MERCOSUR. Bolivia  nonetheless may take part in the negotiations 
between MERCOSUR and the Andean Community in order to harmonize this Agreement, 
where appropriate, with the new Agreement signed by the parties. WT/COMTD/81 
Page 22  
 
  Framework Agreement on Trade and Investment, Concluded  
between MERCOSUR and the Member Countries of the  
Central American Common Market (CACM)  
(AAP/A14TM/12 of 18 April 1998) 
 Reaffirming the importance of promoting a suitable framework for trade and investment, 
MERCOSUR and the Central American countries signe d this framework agreement, which has the 
following objectives: 
(a) To tighten economic links in the areas of trade, investment and transfer 
of technology; 
(b) to identify jointly and expeditiously the speci fic steps and actions that lead to closer 
trade links among the parties; 
(c) to preserve the functioning of free market economies and to underline the importance 
of private sector initiatives as sources of prosperity with a view to boosting economic development; 
(d) to strengthen and diversify coopera tion activities among the parties; 
(e) to foster investment among the parties; and 
(f) to agree on mechanisms to promote and protect investment. 
 
Mining Cooperation Agreement between Argentina 
and Ecuador (AAP/A14TM/13) of 2 June 1999 
 
 This agreement was signed in accordance w ith Article 4 of the Regional Agreement on 
Scientific and Technological Cooperation among LA IA Member Countries and is governed by the 
provisions of the 1980 Treaty of Montevideo and Resolution 2 of the Council of Ministers, where applicable.  
 Under this Agreement, the signatories agre e to promote the establishment of specific 
cooperation programmes and projects related to ore minerals, non-ore  minerals, evaporites, and ore 
concentrates, both as regards basic and applied resear ch, with the aim of promoting innovation and the 
development of new products, as well as the st art-up of production and marketing enterprises. 
  It was agreed to implement a scientific and technical cooperati on programme among the 
institutions responsible for these matters in each signatory country. 
  It was also agreed to establish an action programme linked to the legal framework for investment in the sector, study and research into th e legislative advances made in comparative law, 
the building of efficient institutional capacity, impl ementation of an environm ental protection system, 
mining, etc. 
  This programme provides for various forms of cooperation with mutual assistance for training 
of scientific and technical personnel; exchange of ex perts and professionals with expertise in courses 
and seminars; mutual consultation on legal, sc ientific and technological issues; the creation 
of working groups to conduct studies and research proj ects; transfer of environmental technology, etc. 
 
 It is planned to develop impl ementation agreements, to be inco rporated into the Agreement in 
the form of protocols, which will cover th e specific terms and forms of cooperation. WT/COMTD/81 
 Page 23 
 
 
   
Incorporation of Various Regulations into the National Legal Systems of Argentina, Bolivia, 
Brazil, Paraguay, and Uruguay in Accordan ce with the Regulatory Power Conferred by 
the Santa Cruz de la Sierra Agre ement and its Additional Protocols 
Paraguay-Paraná Waterway  Transport Agreement 
(AAP/A14TM/5) 
 
 Pursuant to the provisions of the Santa Cruz de la Sierra Agreement, on 3 December 1998 the 
following seven regulations concerning the Pa raguay-Paraná waterway were registered: 
 
- Single Regulation on the Transport of Goods on Deck on Waterway Vessels, 
dated 19 June 1996 (AAP/A14/TM/5.R1 of 3 December 1998); 
- Single Regulation on Buoyage, date d 19 June 1996 (AAP/A14/TM/5.R2 
of 3 December 1998); 
- Uniform Glossary of Port Services on the Paraguay-Paraná Waterway, 
dated 19 June 1996 (AAP/A14/TM/5.R3 of 3 December 1998); 
- Regulations on Preventing Collisions, dated 19 June 1996 (AAP/A14/TM/5.R4 
of 3 December 1998); 
- Regulations for Determining the Tonna ge of Vessels on the Paraguay-Paraná 
Waterway, dated 19 June 1996 (AAP /A14/TM/5.R5 of 3 December 1998); 
- Communications Plan for the Safety of Navigation on the Paraguay-Paraná 
Waterway, dated 19 June 1996 (AAP /A14/TM/5.R6 of 3 December 1998); 
- Single Regime on Maximum Dimensions for Convoys on the Paraguay-Paraná 
Waterway, dated 19 June 1996 (AAP /A14/TM/5.R7 of 3 December 1998). 
D. AGREEMENTS ON THE RENEGOTIATION OF THE CONCESSIONS GRANTED DURING 
THE 1962/1980  PERIOD (ANNEX 4) 
1. Extensions 
The majority of the additional protocols to these agreements signed during the period covered 
by this report refer to the extension of tariff prefer ences in the short term in order to maintain trade 
flows whilst the signatory countries continue thei r negotiations on agreemen ts of broader scope. 
The attached series of annexes details the exte nsion-related additional protocols corresponding 
to each agreement. 
2. Renegotiation agreements rendered invalid 
 As of 1 January 1998, the tariff preferen ces negotiated under Renegotiation Agreement No. 9 
signed by Brazil and Mexico became invalid.   Moreover, following Brazil's signature of ECA No. 39 with Colombia, Ecuador, 
Peru and Venezuela (see ECA No. 39 under section 2), the preferences and related rules 
in Renegotiation Agreements Nos. 10 and 11 si gned by Brazil with Colombia and Ecuador, 
respectively, were rendered invalid.  WT/COMTD/81 
Page 24  
 
  E. R
EGIONAL AGREEMENTS (ANNEX ) 
1. Amendments to regional agreements in force following Cuba's accession 
to the 1980 Treaty of Montevideo 
 Following Cuba's accession to the LAIA in July 1999 and taking into account Article 58 
of the 1980 Treaty of Montevideo2, Cuba had to assume all the right s and obligations derived from the 
regional agreements on opening up markets for the benefit of countries at a relatively less advanced 
stage of economic development and the regional agre ement introducing the regional tariff preference. 
  The acceding country's commitments in the aforementioned regional agreements were formalized by signing additional protocols, which set out the terms for Cuba's participation. 
 
- Fourteenth Additional Protocol to the Regional Agreement Opening Up the Market 
to Bolivia (AR.AM1.14 of 26 July 1999) 
- Nineteenth Additional Protocol to the Regional Agreement Opening Up the Market 
to Ecuador (AR.AM2.19 of 26 July 1999) 
- Fifteenth Additional Protocol to the Re gional Agreement Opening Up the Market 
to Paraguay (AR.AM3.15 of 26 July 1999) 
 Pursuant to the provisions in Article 58 of  the 1980 Treaty of Montevideo and as a result 
of its accession, Cuba assumed all the commitments derived from the three regional agreements opening up the market to Bolivia, Ecuador and Paraguay (AR.NAM1; AR.NAM2; and AR.NAM3). 
 
 Inasmuch as the regulations in these regional ag reements are identical for the three countries 
at a less advanced stage of economic developmen t and the scope of the additional protocols is 
virtually the same, a single set of comments valid for all was issued.   As already mentioned, the purpose of the ag reements on opening up markets is to create 
conditions conducive to the particip ation of countries at a relatively less advanced stage of economic 
development in the Association's economic integrat ion process, giving them preferential treatment for 
placing their products on markets in member countries.   Accordingly, member countries have undertaken to eliminate customs duties and other restrictions affecting imports of products origina ting in countries at a relatively less advanced stage 
of economic development and specifically listed in each agreement. 
  As a result of this undertaking, Cuba incl uded a list of products in each of these regional 
agreements, which is set out in the respective an nexes, and totally and unreservedly eliminated 
customs tariffs and other restrictions on imports from Bolivia, Ecuador and Paraguay, as applicable. 
 
- Third Additional Protocol to the Regiona l Agreement Establishing the Regional Tariff 
Preference (AR.PAR 4.3 of 26 July 1999) 
 
 Also as a result of its accession, Cuba, as a country  at an intermediate stage of development, 
duly had to assume all the rights and obligations  derived from Regional Agreement No. 4, which 
introduced the regional tariff preference, and amendments thereto. 
 
                                                      
2 Pursuant to Article 58 of the 1980 Treaty of Montev ideo, any country acceding mu st give effect to the 
commitments assumed under the regional agre ements within 30 days of its accession. WT/COMTD/81 
 Page 25 
 
 
   By means of this Third Additional Protocol, Cuba included a list of 960 headings exempt 
from application of the regional preferential tariff.   Even though Regional Agreement No. 4,  which introduces and regulates the regional 
preferential tariff established by Article 5 of the 1980 Treaty of Montevideo, was duly notified to the 
contracting parties, it is useful to highlight its ma in features in order to understand more clearly the 
scope of the amending protocol.   Under this agreement, the Association's member  countries reciprocally grant imports a tariff 
preference consisting of a percentage reduction of th e duty applicable to imports from third countries. 
 
 The regional preferential tariff applies to the im port of any type of product originating in the 
territory of member countries.   Products included in the lists of exceptions established in accordance with the Agreement's 
provisions are not subject to the regional preferential tariff. 
  Member countries have undertaken to apply the regional preferential tariff to the import of products that have been negotiated in any of the mechanisms envisag ed in the 1980 Treaty 
of Montevideo, provided that it is higher than  that which the said countries had agreed in the 
aforementioned mechanisms. 
 
 The amount of the regional preferential tariff is applied according to the various categories 
of country as follows:  
Recipient country PMDER PDI Other member 
countries Granting country 
PMDER 20 12 8 
PDI 28 20 12 
Other member countries 40 28 20 
 
 As regards the lists of exceptions to the regi onal preferential tariff, the Second Protocol of 
Amendment lays down the following maximum numbe rs of headings in the Association's tariff 
nomenclature for which exceptions can be made.  
 Countries at a relatively less advanced stag e of economic developm ent…… 1,920 headings 
 Countries at an intermediate stage of development ………………………… 960 headings 
 Other countries ……………………… ……………………………………… 480 headings 
2. Other amendments to regional agreements 
- First Additional Protocol to the Regional Ag reement on Cooperation and Trade in Goods in 
the Areas of Culture and Education (AR.CE and C/7 of 5 March 1997) 
 The First Additional Protocol to this Agreement was signed on 5 March 1997. It was drafted 
and negotiated taking into account, in addition to recommendations by member countries, those made 
at regional books events and meetings of Latin  American and Caribbean Ministers of Culture. 
The national books associations in member coun tries, the Inter-American Publishers Group, 
the Centre for Research on Latin America and th e Caribbean (CERLAC) and UNESCO also took part 
in drawing up these recommendations.   This First Protocol amended Articles 2, 3, 5, 7, 11 and 14 of the original Agreement and 
divided products into two annexes,  A and B, the latter corresponding to  books and products relating to WT/COMTD/81 
Page 26  
 
  the publishing industry. It also rendered invalid the restriction on an author's nationality and the type 
of binding, which restricted the import of products  listed in Chapter 49 of the NALADISA (Annex B) 
and included films (processed film with editorial content) in the same Annex. 
  Pursuant to the provision in Article 6 of the 1980 Treaty of Montevideo, the Agreement was 
registered as a regional agreement following the signing of the Protocol. 
 F. A
GREEMENTS SIGNED BETWEEN ASSOCIATION MEMBER COUNTRIES AND NON-MEMBER 
LATIN AMERICAN COUNTRIES (ARTICLE 25 OF THE 1980  TREATY OF MONTEVIDEO ) 
(ANNEX  6) 
 Over the period 1997-1998, no new agreements under Article 25 of the Treaty of Montevideo 
were signed and there were only am endments to existing agreements. 
 
1. Additional Protocols 
 Most of the amendments introduced into such  agreements concern ex tension of the validity 
of temporary preferences. 
  Nevertheless, important changes were  made to one agreement, namely: 
 
AAP/A25TM/31 (Colombia-CARICOM) 
 
 Programmes with different reduction schedules ha ve been incorporated into the Agreement 
and include products to be liberalized immediately and products to be the subject of four annual 
reductions, each at a rate of 25% per year as of 1 January 1999 up to 1 January 2002. These tariff 
reductions are granted, on the one hand, by th e most developed CARICOM countries for products 
originating in Colombia and, on the other, by Colombia for products originating in any CARICOM 
member State. The rules of origin contained in A nnex IV to the Agreement have also been replaced 
(First Additional Protocol of 21 May 1998).  
2. Agreements rendered invalid 
 Following the signing of the Economic Comp lementarity Agreement between Venezuela 
and Cuba on 27 August 1999 (see ECA No. 40 in section 2), the tariff preferences and related rules in 
the Partial-Scope Agreement/Article 25TM/35 became invalid. 
  It should also be noted that the agreement between Mexico and Nicaragua (AAP/25/TM/13) 
also became invalid because th e two countries agreed on another form of agreement with more 
ambitious objectives and scope. 
 
G. A
GRICULTURAL AGREEMENTS  
 The Association's member countries did not si gn any such new agreements or amend those 
already existing.  WT/COMTD/81 
 Page 27 
 
 
  III. OTHER INTEGRATIVE MEASURES CARRIED OUT WITHIN THE LAIA 
FRAMEWORK DURING THE 1997-1998 PERIOD 
- Request for accession to the 1980 Treaty of Montevideo by the Republic of Cuba 
 
 In a note dated 17 March 1998, the Re public of Cuba requested accession to 
the 1980 Treaty of Montevideo, and it should be noted that this is the first request for accession made 
since the LAIA was created.   In the light of this request and in acco rdance with the provisions in Articles 55 and 58 
of the 1980 Treaty of Montevideo, the working group set up under Resolution 239 of the Committee 
of Representatives was requested to co nsider this request for accession. 
  After approving its method of work, the group addressed aspects relating to the accession process and decided to invite a technical mission from the Government of Cuba, identifying the issues 
to be the subject of consultations with the mission. It examined matters relating 
to Cuba's classification in one of the cate gories of countries provided in the 1980 Treaty 
of Montevideo, together with the amount of Cuba's  financial contribution depending on its category, 
and the legal nature of the instrument that would formalize the Republic of Cuba's accession. In doing 
so, it always bore in mind that the working group's task culminated in recommendations inasmuch as 
the Council of Ministers, as the Association's supr eme body, was responsible for taking the decision. 
 
 Subsequently, at the Tenth Meeting of the LA IA's Council of Ministers, in Resolution 51(X), 
Cuba's accession was approved an d terms were clearly defined as to Cuba's obligations, 
its classification (country at an intermediate st age of development) and its contribution to the 
Association's annual expenditure budget.  
 Lastly, this Resolution states that the 1980 Treat y of Montevideo would come into effect for 
Cuba 30 days after its Government  had deposited its instrument of  accession with the Government 
of the Oriental Republic of Uruguay. After these fo rmalities had been completed, Cuba became a full 
member of the 1980 Treaty of Montevideo as of 26 August 1999.  - Creation of an Advisory Council on Customs Matters 
  By Resolution 238 of 1 April 1998, the Committee of Representatives established the LAIA Advisory Council on Customs Matters for the purpose of providing the Association's political bodies with advice on customs matters.  
 The Council is composed of the National Directors of Customs or officials of an equivalent 
rank. Its tasks not only include providing advice bu t also promoting the harmonization of customs 
mechanisms, instruments and procedures.  - Amendments to the Reciprocal Credit and Pa yments Agreement of LAIA (1997/1998 period) 
 
 This Agreement, to which the central banks of the 11 countries that signed the 1980 Treaty 
of Montevideo, and the Dominican Republic, are pa rty, has been operating continuously since it was 
signed in 1965.   Over the years, the Agreement has been revi sed and expanded in the light of requirements 
arising from various circumstances that have occurred, and still provides effective support for 
intraregional trade, as well as creati ng the conditions for its financing. 
 WT/COMTD/81 
Page 28  
 
   On 2 October 1998, a Protocol of Amendmen t was approved, making certain adjustments 
and changes to the rules, and these are in force.   The main changes introduced concern the amendment of the scope of payments admissible, limiting them to those derived from trade in goods. Tr ade transactions relating solely to services are 
allowed subject to bilateral agreem ent between parties. In addition, the channelling of purely financial 
transactions is not allowed.   Other adjustments to the Agreement concern maintenance of the guarantees of convertibility, 
transferability and reimbursement; compulsory multila teral compensation; the scope of the automatic 
payments scheme; and definition of the role and powers of the governing and official bodies. 
  Lastly, it should be noted that, as of May 1998, a mechanism to settle disputes between 
parties has been incorporated into th e agreement and is fully operational. 
 IV. TRENDS IN TRADE 
YEAR 1997 
 
Global foreign trade 
 In 1997, total exports by LAIA countries rose by 11%, reaching US$257,600 million, as a result of increases both in average prices and in  the volumes shipped. This trade performance, 
the highest on record, was equivalent to 5% of global exports, the highest for the past 30 years. 
  All the area's countries contributed towards th is increase, with the exception of Venezuela, 
where there was a slight decline in exports. Am ong those which performed well was Mexico, where, 
even though there was a large increase in exports, the surplus in the trade bala nce fell sharply because 
Mexico's imports rose even more rapidly. There w as also a noticeable upturn in Brazil as a result 
of increased sales of commodities such as co ffee beans and soya, as well as stronger sales 
of manufactures, particularly automotive industr y products going mainly to MERCOSUR countries, 
Chile and the United States. Argentina was also pa rt of this trend, albeit to a lesser extent; 
even though values in unit terms shrunk, it managed to offset this situation by an increase in the 
volumes exported, together with a bumper cereal ha rvest that led to larger shipments of maize and 
wheat. Chile, which also felt the effe cts of lower unit values, was able to increase exports, with a large 
rise in the value of copper exports, while Peru saw very high demand for non-traditional products, 
accompanied by higher prices for agricultural and fisheries products and an increase in the value 
of shipments of copper, whose lower price was offset by expansion in the volumes shipped. 
As a result of high international prices, Colombia recorded a substantial rise in exports of coffee. 
 
 As occurred in the first part of the decade, imports exceeded exports and the value of imports 
overall rose by 20% compared to the previous  year, reaching a figure of US$274,400 million, 
the highest on record. The upward trend in supplies from abroad was solely attributable to a large 
increase in the volume of imports as unit values fell in all countries in the region, affecting 
commodities that play an important role in forei gn demand such as petroleum and cereals. The highest 
increase in question was in the three major economi es in the region, Argentina, Brazil and Mexico, 
which together account for 77% of the varia tion in the respective regional aggregate. 
  The modest surplus achieved in the region's tr ade with the rest of the world in 1996 turned 
into a deficit of around US$16,000 million the following year, a trend that was shared by seven of the 
Association's members. Mexico saw its positiv e performance change to a trade deficit. 
Venezuela experienced a 25% decrease in its positiv e balance; there was a substantial increase in WT/COMTD/81 
 Page 29 
 
 
  figures in the red in Brazil and Argentina; while Peru, Bolivia and Chile saw a modest increase in 
their respective trade with countries outside the area. 
 Intraregional exports 
 After a steady upward trend for over a decade, the value of reciprocal exports 
among LAIA countries for the first time largely exceeded US$40,000 million, thereby speeding up the 
pace of growth, which reached 19%, a much higher percentage than in the previous year (6%). 
  Although the value of intraregional expor ts increased for ten countries, those which 
contributed the most to this increase were Brazil and Argentina which, together, were responsible 
for 63% of the growth. In 1997, Brazil once again to ok up its traditional position as the main catalyst 
for the increase in recipro cal trade and also continued to be the foremost destination for exports within 
the region. The leading destinations for Brazil' s exports in the area were Argentina (50%), 
Paraguay (10%) and Chile (9%). These exports consis ted for the most part of manufactures (80%), 
while exports from Argentina mainly went to Braz il (62%) and Chile (15%), with manufactures being 
the most important in the former case and fuels in  the latter. Chile, Brazil and Venezuela had equal 
shares of Mexico's intraregional exports totalling 60%.   In 1997, there were no significant changes to the structure of intraregional exports by subregion and according to reciprocal sales compared to the previous year. The amount of MERCOSUR's intrasubregional exports accounte d for 45% of the LAIA total, reciprocal 
CAN-MERCOSUR exports for 13%; intra-CAN expor ts for 12%; MERCOSUR-Chile trade for 11%; 
CAN-Mexico and MERCOSUR-Mexico reciprocal sales each had a 6% share; CAN-Chile 4% and Chile-Mexico exports 3%.  
YEAR 1998 
 Global foreign trade 
 The sharp fall in average export prices, partic ularly for commodities, and the lower increase 
in volumes exported in comparison with the previous year, added to the international financial crisis 
and the natural disasters that affected several areas  in the region, caused a 3% drop in the current 
value of total exports by all LAIA countries, after 12 consecutive years of growth. 
 
 Venezuela made the largest contribution to this  decline, which extended to eight countries, 
because it was hit by lower international prices fo r hydrocarbons and exported less. Brazil also 
contributed as a result of lower prices for various exportable products and the modest increase in 
export volumes, together with Chile, inter alia, because of the fall in international copper prices and 
shrinking demand from Asian countries, notably Japan, the Republic of Korea, Indonesia 
and Thailand.   Ecuador's exports also decreased as a result of the sharp rise in petroleum prices and fewer 
shipments. The same was true of Peru following th e decline in the price of copper and other metals, 
added to the impact of the crisis in Asia and the adverse climatic conditions caused by El Niño, 
which affected agricultural and fisheries production.  Argentina and Colombia , for their part, were 
affected by lower international prices for their main exports, while only Bolivia, Mexico and Uruguay 
saw an increase in the value of their exports.   The downturn in economic activity in the region, which fell from over 5% in 1997 to less than 
half in 1998, added to the depreciation in various  countries' currencies, caused a sharp decline in 
imports in countries in the area, which only rose by 5% in the last year in current value terms, after rising at an average annual rate of 16% betw een 1992 and 1997. This diminished growth can be WT/COMTD/81 
Page 30  
 
  explained by the increase in buying by Mexico, albeit at a rate considerably lower than the 
previous year, together with a lesser increase in im ports by Venezuela, Argentina, Ecuador, Bolivia 
and Uruguay, and by a decline in those of Brazil, Chile, Colombia, Paraguay and Peru. 
  The performance of exports and imports to and from the rest of the world meant that the 
negative balance in the region doubled , reaching US$33,800 million in 1998. 
 Intraregional exports 
 After 12 years of sustained growth, the value of  intraregional exports fe ll by 4%, reversing the 
expansion which had shown a noticeable increase the previous year. 
 
 The contraction in reciprocal  sales affected seven countries, the most important being a 
decrease in exports from Mexico, especially those going to Chile, Brazil, Argentina and Venezuela, 
which were mostly shipments of manufactures, and from Argentina, essentially those going to Brazil 
and Chile, corresponding to lower sales of petroleum.  Despite the decline in its exports to Chile, 
Paraguay, Venezuela, Colombia and Argentina,  particularly in the second half of 1998, 
Brazil remained the region's major supplier, part ly because of increased sales to Mexico and other 
countries. Brazil is also the leading destination for the region's exports. The more rapid decline in its 
imports enabled the negative trade balance with its LA IA partners to become a surplus, the first after 
three years of deficits.  
 Intraregional trade at the subregional level,  without exception, experienced negative rates 
of growth, thus reversing the previous year's increa se in such trade. There were no important changes 
to the structure of these exports compared to the previous year. Exports among MERCOSUR countries accounted for 46% of the LAIA's to tal exports; CAN-MERCOSUR reciprocal sales 
for 13%; intrasubregional CAN sales for 12%; MERCOSUR-Chile trade for 10%, 
MERCOSUR-Mexico for 6%; CAN-Mexico sales  for 5%; those for CAN-Chile 4%; and 
Chile-Mexico reciprocal exports for 3%.  WT/COMTD/81 
 Page 31 
 
 
  LAIA 
GLOBAL EXPORTS BY COUNTRY 
ACCORDING TO LAIA DESTINATION – REST OF THE WORLD 
1997-1998 
 
In millions of dollars f.o.b. and percentages 
Country 1997 1998 Variation 1998/1997 (%) 
LAIA Rest of the 
world Global LAIA Rest of the 
world Global LAIA Rest of the 
world Global 
Argentina 13,092 13,339 26,431 12,399 12,924 25,323 -5.3 -3.1 -4.2 
Bolivia1 546 726 1,272 583 740 1,323 6.8 1.9 4.0 
Brazil 13,596 39,390 52,986 13,324 37,796 51,120 -2.0 -4.0 -3.5 
Chile 3,361 13,317 16,678 3,378 11,464 14,842 0.5 -13.9 -11.0 
Colombia 2,659 8,890 11,549 2,621 8,200 10,821 -1.4 -7.8 -6.3 
Ecuador 1,029 4,235 5,264 866 3, 275 4,141 -15.8 -22.7 -21.3 
Mexico 4,362 105,695 110,057 3,644  113,692 117,336 -16.5 7.6 6.6 
Paraguay 646 495 1,141 793 277 1,070 22.8 -44.0 -6.2 
Peru 1,073 5,686 6,759 964 4, 708 5,672 -10.2 -17.2 -16.1 
Uruguay 1,516 1,210 2,726 1,725  1,045 2,770 13.8 -13.6 1.6 
Venezuela 3,767 18,963 22,730 3,327  13,479 16,806 -11.7 -28.9 -26.1 
TOTAL 45,647 211,946 257,593 43,624 207,600 251,224 -4.4 -2.1 -2.5 
1 Official values at customs. 
Source: Data provided by member countries. 
Prepared by: Surveys and Statistics Division  of the General Secretariat of the LAIA. 
Note: The data for Paraguay and Venezuela for 1998 are estimated. 
 
LAIA 
GLOBAL IMPORTS BY COUNTRY 
ACCORDING TO LAIA DESTINATION – REST OF THE WORLD 
1997-1998 
 
In millions of dollars c.i.f. and percentages 
Country 1997 1998 Variation 1998/1997 (%) 
LAIA Rest of the 
world Global LAIA Rest of the 
world Global LAIA Rest of 
the world Global 
Argentina 9,336 20,947 30,283 9, 592 21,438 31,030 2.7 2.3 2.5 
Bolivia1 823 1,086 1,909 851 1,501 2,352 3.4 38.2 23.2 
Brazil 14,130 50,945 65,075 13,040 47,753 60,793 -7.7 -6.3 -6.6 
Chile 5,183 12,928 18,111 4,701 12,385 17,086 -9.3 -4.2 -5.7 
Colombia 3,814 11,565 15,379 3,625 11,010 14,635 -5.0 -4.8 -4.8 
Ecuador 1,516 3,439 4,955 1, 687 3,816 5,503 11.3 11.0 11.1 
Mexico1 2,272 107,536 109,808 2,561 122,681 125,242 12.7 14.1 14.1 
Paraguay 1,860 1,543 3,403 2, 099 861 2,960 12.8 -44.2 -13.0 
Peru 3,033 5,525 8,558 2,582 5,638 8,220 -14.9 2.0 -3.9 
Uruguay 1,848 1,868 3,716 1,846  1,962 3,808 -0.1 5.0 2.5 
Venezuela1 2,663 10,496 13,159 3,403 12,359 15,762 27.8 17.7 19.8 
TOTAL 46,478 227,878 274,356 45,987  241,404 287,391 -1.1 5.9 4.8 
1 f.o.b. values. 
Source: Data provided by member countries. 
Prepared by: Surveys and Statistics Division  of the General Secretariat of the LAIA. 
Note: The data for Paraguay and Venezuela are estimated. 
 WT/COMTD/81 
Page 32  
 
   
LAIA 
STRUCTURE OF INTRAREGIONAL EXPORTS 
BY CHANNEL OF COMMERCE 
1997-1998 
 
in millions of dollars f.o.b. and percentages 
Channel Millions of dollars % S/Total LAIA % Growth 
1997 1998 1997 1998 1998/1997 
Intra - CAN 5,634 5,398 12.3 12.4 -4.2 
Intra - MERCOSUR 20,585 20,200 45.1 46.3 -1.9 
CAN - MERCOSUR 5,952 5,586 13.0 12.8 -6.1 
CAN - Chile 1,895 1,885 4.2 4.3 -0.5 MERCOSUR - Chile 5,099 4,513 11.2 10.3 -11.5 
CAN - Mexico 2,524 2,213 5.5 5.1 -12.3 
MERCOSUR - Mexico 2,618 2,590 5.7 5.9 -1.1 
Chile - Mexico 1,340 1,239 2.9 2.8 -7.5 
 LAIA Total 45,647 43,624 100.0 100.0 -4.4 
Source : Data provided by member countries. 
Prepared by: Surveys and Statistics Division  of the General Secretariat of the LAIA. WT/COMTD/81 
 Page 33 
 
 
  ANNEXES 
 
Protocols signed during the period 1 January 1997 to 31 August 1999 
 
ANNEX 1 
 
Trade Agreements 
  1980 Treaty of Montevideo, Article 10 
  "Trade agreements are exclusively aimed to wards trade promotion among member countries, 
and shall be subject to the specific rules to be established for that purpose."  Resolution 2 of the Council of Ministers, Article Six (Regulations) 
  These agreements shall be subject to, inter alia , the following rules: 
 
(a) Their provisions shall have trade-relate d objectives, and shall not, therefore, 
contain commitments concerning the specialization of production; 
(b) they shall include nomenclature items which define the sector; 
(c) they shall include tariff concessions a nd commitments to eliminate or reduce 
non-tariff restrictions, and may include temporary concessions, per quota and mixed concessions, concessions on surpluses and shortfalls, and measures regarding 
balanced exchanges; 
(d) they shall give particular considerati on to the recommendations of the business 
sector; and 
(e) the concessions which they contain shall, without compensation, be automatically 
extensive to countries at a relatively less advanced stage of economic development, 
regardless of negotiation or accessi on to the corresponding agreement. WT/COMTD/81 
Page 34  
 
  Trade Agreements 
 
Additional Protocols signed between  1 January 1997 and 31 August 1999 
 
 
No. of 
Agreement and 
Protocol Signatory countries Sector Subject Signature 
AC 5.27 
AC 5.28 
AC 5.29 
AC 5.30 AC Add.3 
AC Add.5 
AC Add.6 AC Add.7 
AC Add.8 
AC Add.9 UR/VE 
UR/VE 
UR/VE 
UR/VE ME/UR 
BR/ME 
ME/UR BR/ME 
ME/UR 
ME/UR Chemical industry Extension until 30/6/1998 
Extension until 30/9/1998 
Extension until 31/3/1999 
Extension until 31/12/1999 Extension until 30/9/1997 
Extension until 30/9/1997 
Extension until 31/12/1997 Extension until 31/12/1997 
Extension until 31/12/1998 
Extension until 31/12/2000 18/12/1997 
25/6/1998 
30/9/1998 
31/3/1999 23/12/1996 
27/1/1997 
10/9/1997 26/9/1997 
19/12/1997 
11/11/1998 
AC 7A AR/UR Refrigeration and air 
conditioning Agreement became invalid 
as of 1/10/1997  
AC 7B AR/UR Household electrical 
appliances Agreement became invalid 
as of 1/10/1997  
AC 9 
 
ACC Add.5 
ACC Add.7 BR/ME 
 
BR/ME 
BR/ME Generation, 
transmission and 
distribution of 
electricity Agreement became invalid 
as of 1/1/1998 
Extension until 30/9/1997 
Extension until 31/12/1997  
 
27/1/1997 
26/9/1997 
AC 10  
ACC Add.5 
ACC Add.7 AR/BR/ME 
 
BR/ME 
BR/ME Office machines  Agreement became invalid 
as of 1/1/1998 
Extension until 30/9/1997 
Extension until 31/12/1997  
 
27/1/1997 
26/9/1997 
AC 12  
ACC Add.5 
ACC Add.7 BR/ME 
 
BR/ME 
BR/ME Electronics and 
electrical 
communications Agreement became invalid 
as of 1/1/1998 
Extension until 30/9/1997 
Extension until 31/12/1997  
 
27/1/1997 
26/9/1997 
AC Add.3 AC Add.5 
AC Add.6 
AC Add.7 
AC Add.8 
AC 13.15 AC 13.16 
AC 13.17 
AC Add.9 ME/UR 
BR/ME 
ME/UR 
BR/ME 
ME/UR 
UR/VE UR/VE 
UR/VE 
ME/UR Phonographic industry Extension until 30/9/1997 
Extension until 30/9/1997 
Extension until 31/12/1997 
Extension until 31/12/1997 
Extension until 31/12/1998 
Extension until 30/9/1998 Extension until 31/3/1999 
Extension until 31/12/1999 
Extension until 31/12/2000 23/12/1996 
27/1/1997 
10/9/1997 
26/9/1997 
19/12/1997 
25/6/1998 30/9/1998 
31/3/1999 
11/11/1998 
AC 15  
ACC Add.5 
ACC Add.7 AR/BR/ME 
 
BR/ME 
BR/ME Chemical and 
pharmaceutical 
industry Agreement rendered invalid 
as of 1/1/1998 
Extension until 30/9/1997 
Extension until 31/12/1997  
 
27/1/1997 
26/9/1997 
AC 16  
ACC Add.5 
ACC Add.7 AR/BR/CH/ME/VE 
 
BR/ME 
BR/ME Petrochemicals 
industry Agreement became invalid 
as of 1/1/1998 
Extension until 30/9/1997 
Extension until 31/12/1997  
 
27/1/1997 
26/9/1997 WT/COMTD/81 
 Page 35 
 
 
  No. of 
Agreement and 
Protocol Signatory countries Sector Subject Signature 
AC 18 
AC Add.3 AC Add.5 
AC Add.6 
AC Add.7 
AC Add.8 
AC Add.9 AR/BR/ME/UR/VE 
ME/UR BR/ME 
ME/UR 
BR/ME 
ME/UR 
ME/UR Photographic industry  
Extension until 30/9/1997 Extension until 30/9/1997 
Extension until 31/12/1997 
Extension until 31/12/1997 
Extension until 31/12/1998 
Extension until 31/12/2000  
23/12/1996 27/1/1997 
10/9/1997 
26/9/1997 
19/12/1997 
11/11/1998 
AC 19 AC Add.3 
AC Add.5 
AC Add.6 AC Add.7 
AC Add.8 
AC Add.9 AR/BR/ME/UR 
ME/UR 
BR/ME 
ME/UR BR/ME 
ME/UR 
ME/UR Electronics and 
electrical 
communications  
Extension until 30/9/1997 
Extension until 30/9/1997 
Extension until 31/12/1997 Extension until 31/12/1997 
Extension until 31/12/1998 
Extension until 31/12/2000  
23/12/1996 
27/1/1997 
10/9/1997 26/9/1997 
19/12/1997 
11/11/1998 
AC 20  
ACC Add.5 
ACC Add.7 AR/BR/CH/ME 
 
BR/ME 
BR/ME Dyes and pigments Agreement became invalid 
as of 1/1/1998 
Extension until 30/9/1997 
Extension until 31/12/1997  
 
27/1/1997 
26/9/1997 
AC 21  
ACC Add.5 
ACC Add.7 AR/BR/CH/ME/UR 
 
BR/ME 
BR/ME Chemical industry 
(surpluses and 
shortfalls) Agreement became invalid 
as of 1/1/1998 
Extension until 30/9/1997 
Extension until 31/12/1997  
 
27/1/1997 
26/9/1997 
AC 22  
ACC Add.5 
ACC Add.7 BR/ME 
 
BR/ME 
BR/ME Essential oils, 
aromatic chemicals, 
perfumes and 
flavourings Agreement rendered invalid 
as of 1/1/1998 
Extension until 30/9/1997 
Extension until 31/12/1997  
 
27/1/1997 
26/9/1997 
AC 26 
 
ACC Add.5 ACC Add.7 AR/BR/ME 
 
BR/ME BR/ME Articles and 
appliances for 
hospital, medical, dental, veterinary 
and like uses Agreement became invalid 
as of 1/1/1998 
Extension until 30/9/1997 Extension until 31/12/1997  
 
27/1/1997 26/9/1997 
AC 27  ACC Add.5 
ACC Add.7 BR/ME/VE 
 BR/ME 
BR/ME Glass industry Agreement became invalid 
as of 1/1/1998 Extension until 30/9/1997 
Extension until 31/12/1997  
 27/1/1997 
26/9/1997 
 WT/COMTD/81 
Page 36  
 
  ANNEX 2 
 
Economic Complementarity Agreements 
  
1980 Treaty of Montevideo, Article 11 
 
 Economic complementarity agreements are aimed, among other objectives, to promote 
maximum utilization of production factors, stimul ate economic complementarity, ensure equitable 
conditions for competition, facilitate  entry of products into the in ternational market, and encourage 
the balanced and harmonious deve lopment of member countries. 
  These agreements shall be subject to the speci fic rules to be established for that purpose. 
 Resolution 2 of the Council of Ministers, Article Seven 
  Economic complementarity agreements aim, among other objectives, to promote maximum 
utilization of production factors, stimulate economic complementarity, ensure equitable conditions for 
competition, facilitate entry of products into the in ternational market, and encourage the balanced and 
harmonious development of member countries.  
 These agreements shall be s ubject to the following rules: 
 
(a) They may be based both on tariff cuts and industrial programming; 
(b) they may be sectoral or multisectoral; 
(c) they shall contain a tariff-cutting programme  for the sector or sectors involved, and 
they may contemplate the elimination or reduction of non-tariff restrictions; 
(d) they shall remain in force for a minimum of  three years and a maximum to be decided 
upon in each agreement; 
(e) they shall include measures aimed at ensuring the balanced and harmonious 
utilization of their benefits to the particip ating countries, based on the three categories 
of countries and on procedures for the assessment and correction of imbalances; and 
(f) they may include, inter alia , provisions regarding: 
(i) harmonization of the treatment applie d to imports from third countries in 
respect of products contained in the ag reement, as well as to raw materials 
and parts used in their manufacture; 
(ii) coordination of programmes and gove rnmental incentives to facilitate 
economic complementarity and harmoni zation of the treatment applied to 
foreign capital and services associated with the products contained in the agreement; 
(iii) rules aimed at preventing unfair trade practices; 
(iv) regulation of balanced exchanges; and WT/COMTD/81 
 Page 37 
 
 
  (v) definition of other measures for the harmonization of instruments and 
policies, as well as the coordination of complementary measures in the fields of technological development, financing,  physical infrastructure, and others 
deemed appropriate. WT/COMTD/81 
Page 38  
 
   
Economic Complementarity Agreements 
 
Agreements and Additional Protocols signed duri ng the Period 1 January 1997 to 31 August 1999 
 
 
No. of 
Agreement and 
Protocol Signatory countries Subject Signature 
ECA 1.4 
ECA 1.5 AR/UR 
AR/UR Automotive regime 
Automobile quotas 13/8/1997 
5/11/1998 
ECA 2.22 ECA 2.23 
ECA 2.24 BR/UR 
BR/UR 
BR/UR Automobile quotas 
Automobile quotas 
Quotas and origin 20/2/1997 
11/2/1998 
23/12/1998 
ECA 5.12 
ECA 5.13 ECA 5.14 ME/UR 
ME/UR ME/UR Extension until 31/12/1997 
Extension until 31/12/1998 Extension until 31/12/2000 8/9/1997 
19/12/1997 11/11/1998 
ECA 6.A.9 
ECA 6.A.10 
ECA 6.A.11 AR/ME 
AR/ME 
AR/ME Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 31/12/2001 8/9/1997 
22/1/1998 
9/10/1998 
ECA 8.A.3  ME/PE Extension for one heading 10/12/1997 
ECA 9.A.9 ECA 9.A.10 
ECA 9.A.11 
ECA 9.A.12 ECA 9.A.13 
ECA 9.A.14 
ECA 9.A.15 
ECA 9.A.16 
ECA 9.A.17 AR/PE 
AR/PE 
AR/PE 
AR/PE AR/PE 
AR/PE 
AR/PE 
AR/PE 
AR/PE Extension for one heading 
Extension for one heading 
Increased quotas 
Extension until 30/6/1998 Extension until 30/9/1998 
Extension until 31/3/1999 
Increased quotas 
Extension until 30/6/1999 
Extension until 30/9/1999  2/4/1997 
17/9/1997 
1/10/1997 
17/12/1997 26/6/1998 
30/9/1998 
22/12/1998 
31/3/1999 
30/6/1999 
ECA 11.A.7 ECA 11.A.8 
ECA 11.A.9 
ECA 11.A.10 ECA 11.A.11 
ECA 11.A.12 AR/CO 
AR/CO 
AR/CO 
AR/CO AR/CO 
AR/CO Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 30/9/1998 
Extension until 31/3/1999 Extension until 30/6/1999 
Extension until 30/9/1999  23/9/1997 
17/12/1997 
25/6/1998 
30/9/1998 31/3/1999 
30/8/1999 
ECA 16.19 
ECA 16.20 ECA 16.21 
ECA 16.22 
ECA 16.23 AR/CH 
AR/CH AR/CH 
AR/CH 
AR/CH Mining project 
Mining project Incorporates rules 
Mining regulations 
Mining regulations 29/1/1997 
29/1/1997 29/12/1997 
30/3/1998 
30/3/1998 
ECA 17.3  CH/ME Liberalization for apples 10/7/1997 
ECA 18.7 ECA 18.18 
ECA 18.19 
ECA 18.20 ECA 18.21 
ECA 18.22 AR/BR/PA/UR 
AR/BR/PA/UR 
AR/BR/PA/UR 
AR/BR/PA/UR AR/BR/PA/UR 
AR/BR/PA/UR Regime of final adaptation to the customs union 
Designates Common Market Group 
Safeguards regulations 
Sanitary and phytosanitary agreement Preventing and combating illegal acts 
Rules of origin for certain countries.  1/12/1998 
17/12/1997 
17/12/1997 
5/3/1998 5/3/1998 
6/8/1998 WT/COMTD/81 
 Page 39 
 
 
  No. of 
Agreement and 
Protocol Signatory countries Subject Signature 
ECA 20.5 
ECA 20.6 
ECA 20.7 
ECA 20.8 ECA 20.9 
ECA 20.10 AR/VE 
AR/VE 
AR/VE 
AR/VE AR/VE 
AR/VE Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 30/9/1998 
Extension until 31/3/1999 Extension until 30/6/1999 
Extension until 30/9/1999  17/9/1997 
17/12/1997 
25/6/1998 
30/9/1998 31/3/1999 
30/6/1999 
ECA 21.6 
ECA 21.7 ECA 21.8 
ECA 21.9 
ECA 21.10 AR/EC 
AR/EC AR/EC 
AR/EC 
AR/EC Extension until 31/12/1997 
Extension until 30/6/1998 Extension until 30/9/1998 
Extension until 31/3/1999 
Extension until 31/12/1999  24/6/1997 
17/12/1997 25/6/1998 
30/9/1998 
31/3/1998 
ECA 22.7 ECA 22.8 
ECA 22.9 
ECA 22.10 BO/CH 
BO/CH 
BO/CH 
BO/CH Expands and modifies liberalization 
Forestry and agricultural health 
Standardization measures 
Expands preferences and eliminates quotas  30/7/1997 
23/12/1997 
22/12/1997 
24/7/1998 
ECA 23.3  CH/VE Liberalization programme for list of exceptions  1/9/1998 
ECA 24.6  CO/CH Liberalization programme for list of exceptions 14/8/1997 
ECA 25.8 
ECA 25.9 
ECA 25.10 ECA 25.11 
ECA 25.12 
ECA 25.13 BR/PE 
BR/PE 
BR/PE BR/PE 
BR/PE 
BR/PE Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 30/9/1998 Extension until 31/3/1999 
Extension until 30/6/1999 
Extension until 15/8/1999  26/9/1997 
18/12/1997 
24/6/1998 30/9/1998 
31/3/1999 
5/7/1999 
The tariff preferences and binding rules in ECA No. 25 became invalid as they were replaced 
by Economic Complementarity Agreement No. 39. 
ECA 27.7 
ECA 27.8 
ECA 27.9 ECA 27.10 
ECA 27.11 
ECA 27.12 BR/VE 
BR/VE 
BR/VE BR/VE 
BR/VE 
BR/VE Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 30/9/1998 Extension until 31/3/1999 
Extension until 30/6/1999 
Extension until 15/8/1999  26/9/1997 
18/12/1997 
25/6/1998 30/9/1998 
31/3/1999 
5/7/1999 
 The tariff preferences and binding rules in ECA No. 27 became invalid as they were replaced 
by Economic Complementarity Agreement No. 39. 
ECA 28.5 
ECA 28.6 
ECA 28.7 
ECA 28.8 
ECA 28.9 EC/UR 
EC/UR 
EC/UR 
EC/UR 
EC/UR Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 30/9/1998 
Extension until 31/3/1999 
Extension until 31/12/1999  24/9/1997 
18/12/1997 
25/6/1998 
30/9/1998 
31/3/1999 
ECA 30.6 ECA 30.7 
ECA 30.8 
ECA 30.9 ECA 30.10 EC/PA 
EC/PA 
EC/PA 
EC/PA EC/PA Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 30/9/1998 
Extension until 31/3/1999 Extension until 31/12/1999  25/9/1997 
22/12/1997 
24/6/1998 
30/9/1998 31/3/1999 WT/COMTD/81 
Page 40  
 
  No. of 
Agreement and 
Protocol Signatory countries Subject Signature 
ECA 35.2 
ECA 35.3 
ECA 35.4 
ECA 35.5 ECA 35.6 
ECA 35.7 
ECA 35.8 ECA 35.9 
ECA 35.10 
ECA 35.11 ECA 35.12 
ECA 35.13 
ECA 35.14 AR/BR/CH/PA/UR 
AR/BR/CH/PA/UR 
AR/BR/CH/PA/UR 
AR/BR/CH/PA/UR AR/BR/CH/PA/UR 
AR/BR/CH/PA/UR 
AR/BR/CH/PA/UR AR/BR/CH/PA/UR 
AR/BR/CH/PA/UR 
AR/BR/CH/PA/UR AR/BR/CH/PA/UR 
AR/BR/CH/PA/UR 
AR/BR/CH/PA/UR Modifies quota 
Time-limit for quota 
Modifies preferences 
Modifies annexes Telecoms, and informatics rules of origin 
Preference for ice cream 
Replaces rules of origin article Origin for "surimi" 
Time-limit for quota 
Expands quota Certificates of origin for min. products. 
Modifies rules 
Incorporates Chile/Canada agt. 17/2/1997 
28/2/1997 
3/3/1997 
14/4/1997 11/9/1997 
11/9/1997 
23/1/1998 25/6/1998 
25/6/1998 
30/7/1998 13/10/1998 
13/10/1998 
13/10/1998 
ECA 36.1 
ECA 36.2 
ECA 36.3 ECA 36.4 AR/BO/BR/PA/UR 
AR/BO/BR/PA/UR 
AR/BO/BR/PA/UR AR/BO/BR/PA/UR Incorporates origin format 
Replaces origin rule 
Modifies hydrocar bons preferences 
Modifies Article 42 of the Agreement 10/12/1997 
5/8/1998 
21/1/1999 29/6/1999 
ECA 38 
ECA 38.1 CH/PE 
CH/PE Establishes the Agreement's rules 
Adds competent sectors 22/6/1998 
22/12/1998 
ECA 39 BR/CO/EC/PE/VE In force until 16/8/2001 12/8/1999 
ECA 40 VE/CU The Agreement will have a term of three years * 27/9/1999 
* The Agreement enters into force as of the date on which both Governments have incorporated it into their 
respective legal systems. 
 WT/COMTD/81 
 Page 41 
 
 
  ANNEX 3 
 
Other Types of Partial-Scope Agreements 
  
1. 1980 Treaty of Montevideo, Article 13 
 
 Trade promotion agreements shall refer to non-tariff matters and tend to promote 
intraregional trade flows. They shall be subject to the specific rules to be established for that purpose. 
 
Resolution 2 of the Council of Ministers, Article Nine 
 
 Trade promotion agreements shall refer to non-tariff matters and tend to promote 
intraregional trade flows.  
 To this end, they may contemplate, inter alia , the following matters: 
 
(a) Rules on trade conduct: 
- Subsidies and countervailing duties; 
- unfair trade practices; - licences and import procedures; 
- other technical aspects of regional trade. 
 
(b) Other rules on non-tariff matters: 
- Payments; 
- financial cooperation; 
- zoo and phytosanitary cooperation; 
- customs cooperation; - facilitation of transport; - State procurement. 
 2. 1980 Treaty of Montevideo, Article 14 
 
Member countries may establish, through the corresponding regulations, specific rules to 
conclude other types of partial-scope agreements. 
 
For this purpose, they shall take into cons ideration, among other matters, scientific and 
technological cooperation, tourism promoti on and preservation of the environment. 
 Resolution 2 of the Council of Ministers, Article Ten 
 
Member countries may establish, through the corresponding regulations, specific rules for the 
signing of other types of partial-scope agreements. 
 
For this purpose, they shall take into cons ideration, among other matters, scientific and 
technological cooperation, promotion of tour ism, and preservation of the environment. 
 WT/COMTD/81 
Page 42  
 
  Resolution 2 of the Council of Ministers, Article Ten 
 
Member countries may establish, through the corresponding regulations, specific rules for the 
signing of other types of partial-scope agreemen ts, other than those provided by Article 3. 
 
For this purpose, they shall take into cons ideration, among other matters, scientific and 
technological cooperation, promotion of tour ism, and preservation of the environment. 
 WT/COMTD/81 
 Page 43 
 
 
  Other types of Partial-Scope Agreements 
 
1.  Partial-Scope Agreements si gned under Article 13 of the TM80  (Trade promotion agreements) 
 
Agreements and additional protocols signed dur ing the period 1 January 1997 to 31 August 1998 
 
Agreement Signatory countries Subject Signature 
PC 7.1 AR/BR/PA/UR Violations and sanctions, 
transport of dangerous goods  16/7/1998 
PC 10 AR/BO Energy integration 16/2/1998 
PC 11 AR/BO/BR/CO/CH/EC/ME/PA/PE/VE 
 AR/BO/BR/CO/CH/EC/ME/PA/PE/UR/VE Overcoming technical barriers 
to trade Accession of Uruguay 8/12/1997 
 
31/3/1999 
PC 12 AR/PE Energy cooperation 12/8/1998 
PC 13 AR/PE Animal hea lth agreement 12/8/1998 
PC 14 AR/PE Cooperation and coordination 
on health plant and quarantine 
matters  12/8/1998 
 
2.  Partial-Scope Agreements si gned under Article 14 of the TM80 
 
Agreements signed during the peri od 1 January 1997 to 31 August 1999 
 
Agreement Signatory countries Subject Signature 
A14TM 11 AR/BO/BR/CO/EC/PA/PE/UR/V E Framework agreement on the 
creation of a free trade area 
between MERCOSUR and the Andean Community  16/4/1998 
A14TM 12 AR/BR/PA/UR/CR/ES/GUA/HO/NI Framework agreement on trade 
and investment between 
MERCOSUR and the Central American Common Market  18/4/1998 
A14TM 13 AR/EC Agreement on minimum 
cooperation 2/6/1999 
 WT/COMTD/81 
Page 44  
 
  ANNEX 4 
 
Renegotiation Agreements for Concessions  Granted during the 1962/1980 Period 
 
 
Resolution 1 of the Council of Ministers, Article One 
 
 The Contracting Parties shall incorporate in to the new integration scheme established by 
the 1980 Treaty of Montevideo, signed on 12 August 1980, the concessions granted in national lists, 
lists of non-extensive advantages, and complementarity agreements. 
 
 To that effect, they shall renegotiate said concessions by updating, expanding or eliminating 
them in order to further strengthen and balance trade flows.   The result of such renegotiation shall conform to the provisions and mechanisms set forth in 
the 1980 Treaty of Montevideo. 
 Resolution 433 of the Standing Executive Committee, Articles 1 and 2 (Regulations) 
  The partial-scope agreements on rene gotiation of preferences granted during 
the 1962/1980 period shall aim to incorporate into the new integration scheme established by 
the 1980 Treaty of Montevideo the results of the renegotiation provided for in Resolution 1 of the 
Council of Ministers.   The rights and obligations established in those ag reements shall be applicable exclusively to 
the countries which sign or accede to them. 
 
 The agreements referred to in the preced ing article shall be based on the granting 
of preferences in respect of the customs duties an d/or other restrictions applied by the countries 
participating therein to the import of negotiated pr oducts originating in their respective territory. 
  The preferences recorded in t hose agreements may likewise, on a temporary or seasonal basis, 
be subject to import quotas, or apply to products of  one or more sectors of the tariff nomenclature 
of the Association. WT/COMTD/81 
 Page 45 
 
 
  Renegotiation Agreements 
 
Additional Protocols signed during the Period 1 January 1997 to 31 August 1998 
  
Agreement Signatory countries Subject Signature 
R 9 BR/ME Tariff preferen ces became invalid as of 
1 January 1998  
R 10.A.8 
R 10.A.9 
R 10.A.10 R 10.A.11 
R 10.A.12 BR/CO 
BR/CO 
BR/CO BR/CO 
BR/CO Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 30/9/1998 Extension until 31/3/1999 
Extension until 30/6/1999 26/9/1997 
18/12/1997 
25/6/1998 30/9/1998 
31/3/1999 
The tariff preferences and binding rules in AAP R 10 became invalid as they were replaced 
by Economic Complementarity Agreement No. 39. 
R 11.12 R 11.13 
R 11.14 
R 11.15 R 11.16 BR/EC 
BR/EC 
BR/EC 
BR/EC BR/EC Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 30/9/1998 
Extension until 31/3/1999 Extension until 30/6/1999 26/9/1997 
18/12/1997 
25/6/1998 
30/9/1998 31/3/1999 
The tariff preferences and binding rules in AAP R 11 became invalid as they were replaced 
by Economic Complementarity Agreement No. 39. 
R 18.A.4 
R 18.A.5 
R 18.A.6 R 18.A.7 
R 18.A.8 CO/PA 
CO/PA 
CO/PA CO/PA 
CO/PA Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 30/9/1998 Extension until 31/3/1999 
Extension until 31/12/1999 25/9/1997 
22/12/1997 
24/7/1998 30/9/1998 
31/3/1999 
R 20.A.4 
R 20.A.5 R 20.A.6 
R 20.A.7 
R 20.A.8 PA/PE 
PA/PE PA/PE 
PA/PE 
PA/PE Extension until 31/12/1997 
Extension until 30/6/1998 Extension until 30/9/1998 
Extension until 31/3/1999 
Extension until 31/12/1999 25/9/1997 
22/12/1997 24/7/1998 
30/9/1998 
31/3/1999 
R 21.A.4 R 21.A.5 R 21.A.6 
R 21.A.7 
R 21.A.8 PA/VE 
PA/VE PA/VE 
PA/VE 
PA/VE Extension until 31/12/1997 
Extension until 30/6/1998 Extension until 30/9/1998 
Extension until 31/3/1999 
Extension until 31/12/1999 25/9/1997 
22/12/1997 24/7/1998 
30/9/1998 
31/3/1999 
R 23.A.5 R 23.A.6 
R 23.A.7 
R 23.A.8 R 23.A.9 CO/UR 
CO/UR 
CO/UR 
CO/UR CO/UR Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 30/9/1998 
Extension until 31/3/1999 Extension until 31/12/1999 24/9/1997 
18/12/1997 
25/6/1998 
30/9/1998 31/3/1999 
R 25.A.8 
R 25.A.9 
R 25.A.10 R 25.A.11 
R 25.A.12 
R 25.A.13 UR/VE 
UR/VE 
UR/VE UR/VE 
UR/VE 
UR/VE Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 30/9/1998 Extension until 31/3/1999 
Modifies comment 
Extension until 31/12/1999 10/9/1997 
18/12/1997 
25/6/1998 30/9/1998 
18/12/1998 
31/3/1999 WT/COMTD/81 
Page 46  
 
  Agreement Signatory countries Subject Signature 
R 33.A.4 
R 33.A.5 
R 33.A.6 R 33.A.7 
R 33.A.8 PE/UR 
PE/UR 
PE/UR PE/UR 
PE/UR Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 30/9/1998 Extension until 31/3/1999 
Extension until 31/12/1999 12/9/1997 
18/12/1997 
24/6/1998 30/9/1998 
31/3/1999 
R 38.A.4 R 38.A.5 
R 38.A.6 
R 38.A.7 ME/PA 
ME/PA 
ME/PA 
ME/PA Extension until 31/12/1997 
Extension until 30/6/1998 
Extension until 31/12/1998 
Extension until 31/12/1999 25/9/1997 
12/1/1998 
24/7/1998 
31/12/1998 
 WT/COMTD/81 
 Page 47 
 
 
  ANNEX 5 
 
Regional Agreements 
  
1980 Treaty of Montevideo, Article 6 
 
 Regional-scope agreements are those in which all member countries participate. 
  They shall be drawn up within the framework of the objectives and provisions of the 
present Treaty, and may refer to the same matters and include those instruments set out 
for the partial-scope agreements established in the third section of the present chapter. WT/COMTD/81 
Page 48  
 
  Regional Agreements 
 
Additional Protocols signed during the Period 1 January 1998 to 31 August 1999 
  
Agreement Signatory countries Subject Signature 
AR.AM 1.4 BO/CU Registration of 
Cuban products  26/7/1999 
AR.AM 2.19 CU/EC Registration of 
Cuban products  26/7/1999 
AR.AM 3.15 CU/PA Registration of 
Cuban products  26/7/1999 
AR.PAR 4.3 AR/BO/BR/CO/CH/EC/ME/PA/PE/UR/VE/CU Incorporation of Cuba 26/7/1999 
AR.CEYC 7.1 AR/BO/BR/CO/CH/EC/ME/PA/P E/UR/VE/CU Cooperation and trade 
in goods in the cultural, 
educational 
and scientific areas  5/3/1997 
 WT/COMTD/81 
 Page 49 
 
 
  ANNEX 6 
 
Agreements Established between  LAIA Member Countries and  
Latin American Countries not Members of LAIA 
 
 
1980 Treaty of Montevideo, Article 25 
  Likewise, member countries may draw up partial-scope agreements with other Latin American countries and areas of economic  integration, in accordance with the various 
modalities foreseen in the third section of Chapte r II of the present Treaty, and under the terms 
of the respective regulative provisions.   Notwithstanding the above, these agreements shall be subject to the following rules: 
 
(a) Concessions granted by participating me mber countries shall not be extensive 
to the others, excepting the countries at a relatively less advanced stage of economic development; 
(b) when a member country includes products already negotiated in partial agreements 
with other member countries, concessions gr anted may be higher than those agreed 
upon with them; in this case, consultation with the affected member countries shall be 
carried out in order to find mutually satisfactory solutions, unless the respective 
partial agreements include clauses con cerning automatic extension or waiver 
of preferences contained in the partial ag reements referred to in the present article; 
and 
(c) they shall be multilaterally assessed by th e member countries within the Committee 
in order to determine the scope of the agreements drawn up and facilitate 
participation of other member countries in same. WT/COMTD/81 
Page 50  
 
   
Agreements signed under Article 25 of the TM 80 
 
Additional Protocols signed during the period 1 January 1997 to 31 August 1999 
 
 
Agreement Signatory countries Subject Signature 
A25TM 4.7 
A25TM 4.8 
A25TM 4.9 AR/CU 
AR/CU 
AR/CU Extension until 31/12/1997 
Extension until 31/12/1998 
Extension until 31/12/1999 29/9/1997 
24/12/1997 
22/12/1998 
A25TM 10.11 A25TM 10.12 
A25TM 10.13 
A25TM 10.14 ME/GUA 
ME/GUA 
ME/GUA 
ME/GUA Extension until 30/06/1998 
Extension until 31/12/1998 
Extension until 30/6/1999 
Extension until 31/12/1999  25/6/1997 
9/7/1998 
21/1/1999 
24/8/1999 
A25TM 11.5 A25TM 11.6 A25TM 11.7 
A25TM 11.8 ME/HO 
ME/HO ME/HO 
ME/HO Extension until 30/6/1998 
Extension until 31/12/1998 Extension until 30/6/1999 
Extension until 31/12/1999 23/6/1997 
9/7/1998 21/1/1999 
24/8/1999 
A25TM 12.7 ME/CU Extension until 27/5/2002  27/5/1998 
A25TM 13.4 ME/NI Extension until 30/6/1998  28/5/1997 
A25TM 15.5 A25TM 15.6 
A25TM 15.7 A25TM 15.8 ME/ES 
ME/ES 
ME/ES ME/ES Extension until 30/6/1998 
Extension until 31/12/1998 
Extension until 30/6/1999 Extension until 31/12/1999 21/5/1997 
9/7/1998 
21/1/1999 24/8/1999 
A25TM 17.5 
A25TM 17.6 
A25TM 17.7 UR/CU 
UR/CU 
UR/CU Extension until 31/12/1997 
Extension until 31/12/1998 
Extension until 31/12/1999 29/9/1997 
24/12/1997 
22/12/1998 
A25TM 21.6 A25TM 21.7 
A25TM 21.8 BR/CU 
BR/CU 
BR/CU Extension until 31/12/1997 
Extension until 31/12/1998 
Extension until 31/12/1999  29/9/1997 
24/12/1997 
22/12/1998 
A25TM 31.1 CO/CARICOM Liberalization and origin programme 21/5/1998 
A25TM 35.2 VE/CU Preferences are granted 14/8/1998 
The tariff preferences and rules in Agreement No. 35 AP R 10 became invalid when they were 
replaced by Economic Complementarity Agreement No. 40. 
 
__________