WORLD TRADE  
ORGANIZATION  WT/COMTD/59 
25 January 2007 
 
 (07-0362) 
Committee on Trade and Development Original:   Spanish 
  
 
LATIN AMERICAN INTEGRATION ASSOCIATION (LAIA) 
 
BIENNIAL REPORT TO THE WORLD TRADE ORGANIZATION
 
 
Information on Measures taken by LAIA Member Countries under the 1980  
Treaty of Montevideo (for the Period 1/1/2004-31/12/2005 ) 
   The following communication and attached report were sent by the Secretariat of the Latin American Integration Association (LAIA) to be circulated to WTO Members. 
 
_______________ 
 
  The Secretariat of the Latin American Integra tion Association presents its compliments to the 
Permanent Mission of Uruguay to the LAIA and ME RCOSUR and encloses here with the report that 
has been prepared on progress in  the integration progress within the LAIA during the period from 
1 January 2004 to 31 December 2005, for submission to the World Trade Organization.   The report was prepared in accordance with the provisions of paragraph 4(a) of the Decision 
adopted by the Contracting Parties to the GATT on "Differential and more  favourable treatment, 
reciprocity and fuller participation of developing countries" (Enabling Clause). 
  The attached report incorporates the amendmen ts made by one Mission to the working draft 
which was made available to the Permanent Mi ssions of the twelve member countries by note 
ALADI/SUB-JRB/237/06 of 2 May 2006.  
 In accordance with the procedure followed in such cases, the Secretariat hereby submits the 
attached report to be forwarded by that Mission, in  its capacity as the headquarters State of the LAIA, 
to the competent WTO bodies.  Also attached  are the texts of the following agreements:
1 
 
- Economic Complementarity Agreemen t No. 58 between MERCOSUR and Peru; 
- Economic Complementarity Agreement No. 59 between MERCOSUR and 
Colombia/Ecuador/Venezuela; 
- Economic Complementarity Agreement No. 60 between Mexico and Uruguay; 
- Economic Complementarity Agreement No. 61 between Colombia, Mexico and 
Venezuela; 
- Partial Scope Agreement on Economic, Commercial and Investment Promotion 
between the Republic of Bolivia and the Republic of Argentina (AAP.PC 17) and 
Additional Protocols Nos. 1, 2 and 3; 
- Bilateral Agreement on Cooperation and Mutual Assistance in Customs Matters 
between the governments of the Republic of Chile and the Republic of Peru 
(AAP.PC 18); 
                                                      
1 The texts of these agreements can be consulted in  the Development Division of the Secretariat (in 
Spanish only). WT/COMTD/59 
Page 2  
 
  - Framework Agreement on Regional Energy Complementarity between the States 
parties of MERCOSUR and Colombia, Chile , Ecuador and Venezuela (AAP.PC 19); 
- Partial Scope Economic Complementarity Ag reement No. 41, under Article 25 of the 
1980 Montevideo Treaty, between the Federa tive Republic of Brazil and the Republic 
of Suriname. 
 
    
 
Montevideo, 15 August 2006 
 
 
  
 
 
LATIN AMERICAN INTEGRATION ASSOCIATION (LAIA
) 
 
BIENNIAL REPORT TO THE WORLD TRADE ORGANIZATION  
  
Information on Measures taken by LAIA Member Countries under the 1980
 
Treaty of Montevideo (for the Period 1/1/2004-31/12/2005 ) 
 
  
The LAIA member countries wh ich are also GATT Contracting Parties hereby inform the 
World Trade Organization's Committee on Trade and Development of the measures taken under the 
1980 Treaty of Montevideo during the period 1 January 2004-31 December 2005. 
  WT/COMTD/59 
 Page 3 
 
  TABLE OF CONTENTS 
Page  
I. INTRODUCTION ................................................................................................................... .5 
II. AGREEMENTS AND MODIFICATIONS IN THE PERIOD 2004–2005..........................7  
A. TRADE AGREEMENTS ..................................................................................................................8  
B. ECONOMIC COMPLEMENTARITY AGREEMENTS (ANNEX 1) .......................................................8  
B.1 Additional protocols........................................................................................................... .......8  
B.2 Conclusion of new agreements...............................................................................................14  
B.3 Lapsed Economic Complementarity Agreements................................................................27  
C. OTHER TYPES OF PARTIAL -SCOPE AGREEMENT (ANNEX 2) ....................................................27  
C.1 Agreements concluded under Article 13 of the 1980 Treaty of Montevideo .....................27  
C.2 Agreements concluded under Article 14 of the 1980 Treaty of Montevideo .....................30  
D. AGREEMENTS ON RENEGOTIATION OF CONCESSIONS GRANTED DURING THE PERIOD 
1962-1980  (ANNEX 3)...............................................................................................................31  
D.1 Extensions..................................................................................................................... ...........31  
D.2 Lapsed Historic Heritage Renegotiation Agreements .........................................................31  
E. AGREEMENTS CONCLUDED WITH NON-LAIA  LATIN -AMERICAN COUNTRIES 
(ARTICLE 25 OF THE 1980  TREATY OF MONTEVIDEO ) (ANNEX  6) ...........................................31  
E.1 Additional protocols........................................................................................................... .....31  
E.2 New agreements concluded ....................................................................................................32  
III. EVOLUTION OF TRADE.....................................................................................................32  
IV. RESOLUTIONS OF THE THIRTEENTH MEETING OF THE LAIA 
COUNCIL OF MINISTERS (18 OCTOBER 2004) ............................................................36  
 BASIS  FOR  A PROGRAMME  FOR  THE  GRADUAL  ESTABLISHMENT  OF A 
FREE  TRADE  AREA  WITHIN  THE  LAIA  WITH  A VIEW  TO ACHIEVING  THE  
OBJECTIVE  SET  OUT  IN THE  1980  TREATY  OF MONTEVIDEO ....................................37  
I. BACKGROUND ..................................................................................................................... 37 
II. THE WAY FORWARD FOR DEVELOPMENT AND CONSOLIDATION OF 
THE FREE TRADE AREA ...................................................................................................38  
III. COMPONENTS OF THE FREE TRADE AREA IN THE LAIA FRAMEWORK...................................................................................................................... .39
 
ANNEXES ....................................................................................................................... .....................46  
 LIST OF PROTOCOLS ADOPTED DURING THE PERIOD FROM 
1 JANUARY 2004 TO 31 DECEMBER 2005.........................................................................46  
ANNEX 1 ........................................................................................................................ ......................47  
ECONOMIC COMPLEMENTARITY AGREEMENTS......................................................................47  
ANNEX 2 ........................................................................................................................ ......................50  
OTHER TYPES OF PARTIA L-SCOPE AGREEMENT......................................................................50  
ANNEX 3 ........................................................................................................................ ......................52  WT/COMTD/59 
Page 4  
 
  AGREEMENTS ON RENEGOTIATION OF CONCESSIONS GRANTED DURING THE 
PERIOD 1962/1980............................................................................................................... ...52
 
ANNEX 4 ........................................................................................................................ ......................54  
REGIONAL AGREEMENTS ............................................................................................................ ...54 
ANNEX 5 ........................................................................................................................ ......................55  
AGREEMENTS CONCLUDED BY MEMBER COUNTRIES WITH NON-LAIA LATIN 
AMERICAN COUNTRIES......................................................................................................55  
   WT/COMTD/59 
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  I. INTRODUCTION 
 As provided in paragraph 4(a) of the Mi nisterial Decision on "D ifferential and More 
Favourable Treatment, Reciprocity and Fuller Part icipation of Developing Countries" adopted on 
28 November 1979, the Permanent Representations of the 12 Latin American Integration Association 
(LAIA) member countries hereby submit for the cons ideration of the member States of the World 
Trade Organization this report which describes trade developments duri ng the period 2004-2005 and 
summarizes the progress achieved in  the framework of the 1980 Treaty of Montevideo over the past 
two years.  The previous report, of May 20 04, covered the measures taken during the period 
1 September 2001-31 December 20032, while the present report updates that information for the 
period 1 January 2004-31 December 2005.  
 One of the main developments during this pe riod was the Thirteenth Meeting of the Council 
of Ministers of the Latin American Integration Association, which reaffirmed the willingness to 
continue to progress towards the objective of deve loping and consolidating a free trade area (FTA) 
and laid the foundation for its gradual establishment.   
As indicated in the last report, based on the guidelines issued by the Twelfth Meeting of the 
Council of Ministers in 2002, the LAIA is beginni ng a new phase to consolidate and strengthen the 
process of regional integration and to move toward s higher stages.  In this connection, through 
Resolution 55, the LAIA Committee of Representa tives was assigned the tasks of establishing the 
foundations for a programme to form a free trade area within the LAIA.  In light of this new process, 
the Council of Ministers meeting of October 2004 i ssued three Resolutions (Resolutions 59, 60, and 
61 (XIII)
3 establishing the general guidelines for the Associ ation's action in the medium term, with a 
view to deepening the integration process and developing its new thematic agenda.  
 
Council Resolution 59 laid the foundation for the establishment of a free trade area in the 
framework of the LAIA, reaffirming the current strate gy of negotiating in pairs or groups of countries, 
and providing that the free trade agreements already signed should be deepened;  that coordination of 
free trade agreements between countries holding fi xed preference agreements  should be expanded, 
and that harmonization and incorporation, at the mo st appropriate level, of rules and regulations 
required to govern trade in matters that supplem ent and support this area should be promoted, in 
accordance with the principles of the 1980 Treaty of Montevideo. 
 
 This foundation presupposes a commitment to deepen the regional integration process in the 
phase related to the liberalization of trade in goo ds and establishment of the rules required for the 
planned free trade area to operate smoothly.   The proposed foundations are underpinned by the vast body of agreements that have already 
been signed within the LAIA, and duly reported, partic ularly with reference to trade integration, as 
reflected in a broad network of bilateral and plurilateral agreements involving the 12 member 
countries.   As a result of these negotiations, to date, in the framework of the LAIA, 49 bilateral 
relationships have been establishe d through third-generation agreem ents, out of the possible 66.  
These relationships are governed by 14 free trade agre ements having different features.  First, there 
are two subregional agreements, MERCOSUR and the Andean Community, in which import levies 
were lifted for the tariff universe among the participating countries. 
 
                                                     
 
2 This report can be consulted in the Developmen t Division of the Secretariat (in Spanish only). 
3 Section IV of this report includes the texts of Resolutions 59, 60, and 61 of the Council of Ministers.  WT/COMTD/59 
Page 6  
 
   Second, there are four bilateral agreements signed by Chile, in which full liberalization has 
been achieved, with exceptions:  ECA 23 Chile –Venezuela;  ECA 24 Chile–Colombia;  ECA 32 
Chile–Ecuador;  ECA 41 Chile-Mexico.   Third, five trade liberalization agreements were signed among groups of countries:  ECA 33 
Mexico–Colombia–Venezuela (Group of Three); ECA 35 MERCOSUR–Bolivia; ECA 36 
MERCOSUR–Chile; ECA 58 MERCOSUR–Peru; ECA 59 MERCOSUR–Colombia/Ecuador/Venezuela.   Lastly, three bilateral economic complementar ity agreements provide for reciprocal trade 
liberalization with exceptions:  ECA 31 Boliv ia–Mexico;  ECA 38 Chile–Peru;  ECA 60 
Mexico-Uruguay.   As a result of this integration process, by 2 007, 87.1 per cent of intraregional trade will be 
fully liberalized. 
 
 To continue to progress towards the objectiv e of developing and consolidating the planned 
free trade area, Resolution 59 cons iders that the current negotiati on strategy should continue with 
deepening of the free trade agreements that ha ve already been signed and promotion of the 
negotiations in progress or those undertaken for the signing of free trade agreements between 
countries that still have fixed preference agreements. 
 
 Resolution 59 also considers that harmonizati on and incorporation, at the most appropriate 
level, of discrepancies and rules required for fr ee trade and measures to supplement and support the 
free trade area (FTA) are required.  The disciplines and rules in question are:  origin, safeguards, 
non-tariff restrictions, dispute settlement, sanitary a nd phytosanitary measures, standards, technical 
regulations and conformity assessment, trade protecti on, customs valuation, special customs regimes, 
and competition policies.  Incorporation of th e following subjects is also planned: services, 
intellectual property, protection of traditiona l knowledge, investments, double taxation, and 
government procurement.  A set of subjects is also included to supplement and support the free trade area, such as physical integration, digital integr ation, trade finance, promotion of production, and 
relations with the business, labour, and academic sectors. 
 
 Resolution 60 defines the role of the LAIA a nd its efforts to support the development of the 
regional integration process. This resolution consol idates and broadens the Association's thematic 
agenda and expands a number of activities aimed at strengthening the process beyond the commercial 
area.  It also aims to support the LAIA's role as an assessment and consultation forum for its member 
countries in areas related to regional integration and trade negotiations. 
  Lastly, Resolution 61 addresses the participati on of economically less developed countries in 
the integration process and establishes complement ary measures to facilitate member country access 
to the markets for products originating from economica lly less developed countries.  It also provides 
for cooperation activities to be implemented to bene fit these countries, in order to overcome obstacles 
that prevent them taking part in the integration process. 
  Another significant development during the period was the commemoration of the 
25
th anniversary of the signing of the 1980 Treaty of Montevideo that institu ted the Latin American 
Integration Association (LAIA) as the key institu tional framework and fo rum for Latin American 
integration.  As indicated above, formal integra tion has been shaped over the past 25 years through 
negotiations, developments in, and deepening of th e various agreements provided in its framework. 
  During the period 2004-2005, progress continued in the regional integration process, in the 
deepening of agreements adopted and the expansi on of the existing trade liberalization process.   WT/COMTD/59 
 Page 7 
 
  Deepening of the regional integr ation process was reflected fundame ntally in the observance of a 
number of timetables for gradual reduction of tariffs provided for in the economic complementarity 
agreements signed in recent years.  Some of these ag reements have led to free trade for virtually all 
goods, through compliance with the respective tariff reduction schedules.   In terms of expanding the integration process, four new economic complementarity 
agreements were signed, including those signe d by MERCOSUR with Ecuador, Colombia, and 
Venezuela (ECA 59);  and with Peru (ECA 58) – all of which are member countries of the Andean 
Community – and the Agreement between Mexico  and Uruguay (ECA 60), which constitute legal 
commercial instruments that are particularly meaningf ul for integration, with substantial repercussions 
on the establishment of the free trade area among all LAIA countries. 
 
 The scope of these two agreements extends beyond the framework of the eight countries 
concerned, as its content has a decisive influe nce on creating the conditions required for gradual, 
reciprocal regional trade liberalisation.  Further, their signing was the culmination of negotiations to 
establish a free trade area between the Andean Comm unity and MERCOSUR.  It should be borne in 
mind that Bolivia has been a MERCOSUR member State, through ECA 36, since December 1996. 
 
Section II of this report, in addition to presenting the features of these four new agreements 
that have been signed, points out the amendments a pplied in the rest of the partial-scope agreements 
signed by the LAIA countries and other La tin American and Caribbean countries. 
 
Section III provides a summary of the evolution of trade in LAIA member States, both overall 
and intraregional.  It shows that the overall imports  and exports of these countries continued to grow 
steadily.  
Lastly, an annex provides a listing of the agre ements and protocols signed during the period 
1 January 2004-31 December 2005. 
 
II. AGREEMENTS AND MODIFICATIONS IN THE PERIOD 2004–2005 
This section of the report refers to the negotiations held by member countries during 
2004-2005, to conclude new partial- scope agreements.  It gives a brief account of their content and 
modifications through protocols to prior agreements , and identifies the purpose of the modification in 
each specific case. 
 
Negotiating activities are grouped under different  headings, each corresponding to a type of 
agreement stipulated in the 1980 Treaty of Montevideo.  These activ ities, as shown in the 
corresponding annexes, are included in the orde r established under the Treaty, and the different 
situations applicable to each individual case are identified. 
 
Past reports have shown that the regional inte gration process was characterized in the 1990s 
by dynamic performance and the signing of a serie s of "new generation" agreements that moved 
beyond tariff matters to address other issues relate d to market access, cooperation, and physical 
integration – areas projecting the integr ation process beyond tariff preferences. 
 
That trend towards signing new agreements has diminished in recent years, owing primarily 
to the completion of the geographic coverage of th e agreements.  During the period studied, four new 
economic complementarity agreements were signed, including three "new generation" treaties.  They 
include those signed by MERCOSUR with Peru (ECA
 58), and with Colombia, Ecuador and 
Venezuela (ECA 59), which deepen and strengthen relations between countries in both subregions 
(MERCOSUR–Andean Community).  WT/COMTD/59 
Page 8  
 
  The Agreement between Mexico and Uruguay (ECA  60), which is also a "new generation" 
agreement, replaces ECA 5, under which the libera lization programme had already secured free trade 
for virtually all of the tariff universe.  The new Agreement consolidated the establishment of a free 
trade area between the two countries and estab lished a new legal and institutional framework 
designed, inter alia , to stimulate expansion and diversifica tion of trade in goods and services;  
substantially increase investment opportunities;  promote conditions of fair competition;  establish 
lines of cooperation;  protect intellectual property rights, etc.  
The Agreement between Mexico, Colombia, and Venezuela (ECA 61) entailed the negotiation 
of a legal framework for trade in  the automotive sector.  The purpose of the Agreement was to lay the 
foundations for the establishment of free trade in this sector and to promote productive 
complementarity and integration in this and the sectors producing televisions, pesticides, and 
disposable razors.  The period of validity of this  Agreement is temporary, until 31 December 2005, 
and it should be borne in mind that Mexico's trade with Colombia and Venezuela is governed by ECA 
ECA 33 (Group of Three).  In the framework of th is Agreement, a Sixth Additional Protocol was 
signed on 3 August 2005, incorpora ting the automotive sector into the tariff reduction programme and 
establishing rules of origin for the sector (see page 15/ECA 33).  
Various amendments were also made to the pa rtial-scope agreements concluded earlier, and 
this report identifies the purpose thereof.  A list anne xed hereto identifies the partial-scope agreements 
concluded and current, specifying any amending protocols adopted by the signatories. 
 
A. T
RADE AGREEMENTS  
With the negotiation of agreements involving to tal trade liberalization, in recent years, the 
earlier trade agreements, which covered a small numb er of items in specific industrial sectors, were 
gradually phased out.  In other cases, existing preferences were incorporated into economic 
complementarity agreements, while some countries withdrew from such agreements. 
 
Only two trade agreements were in effect dur ing the period analysed:  Trade Agreement 5 for 
the Chemical Industry and Trade Agreement 13 for th e Phonographic Industry, with bilateral schemes 
exclusively covering trade between Venezuela and Uruguay.  
However, as a result of the signing of  ECA 59 between MERCOSUR countries and 
Colombia, Ecuador, and Venezuela (Andean Community member countries), it was established that, from the date of entry into force of the new Agreem ent, the tariff preferences negotiated in both trade 
agreements and their related regulatory aspects woul d lapse.  As provided in the validity clause of 
ECA 59 (Article 46), the Agreement entered into effect, as between Uruguay and Venezuela, on 
5 January 2005.  While the tariff preferences negotia ted in Trade Agreements 5 and 13 and the related 
rules lapsed thereafter, the provisions of these agre ements not inconsistent with ECA 59 or referring 
to matters not included in ECA 59 remained in effect.  
As a result, all trade agreements (tariff preferen ces and binding rules) negotiated in the past in 
the framework of the 1980 Treaty of  Montevideo became inoperative. 
 
B. E
CONOMIC COMPLEMENTARITY AGREEMENTS (ANNEX 1) 
B.1 Additional protocols 
LAIA member countries have engaged in numer ous negotiating activities in connection with 
the signing of additional protocols to modify th e economic complementarity agreements effective 
during the period 1 January 2004-31 December 2005.   Some of these amendments basically entail 
extending the period of validity of  negotiated preferences, and in some cases, broadening the  WT/COMTD/59 
 Page 9 
 
  respective liberalization programmes by granting ne w preferences.  The following are the economic 
complementarity agreements amende d along the lines referred to above. 
 
ECA 2 (Brazil and Uruguay ) 
 
It should be borne in mind that this economic complementarity agreement regulates reciprocal 
trade in the automotive sector between Brazil and Uruguay and that successive protocols extended its 
validity and tariff preferences agr eed in its framework.  The 57th and 59th Additional Protocols 
established quotas and origin requirements for automobile imports.  
The 60
th Additional Protocol of 11 July 2002 later established bilateral trade rules for the 
automotive sector and the 61st Additional Protocol extended the va lidity of the agreement until the 
effective entry into force of th e MERCOSUR Automotive Policy (PAM). 
 
In December 2005, the 62nd Additional Protocol established new rules for bilateral trade in 
the automotive sector, cancelling the regime impos ed under the 60th Additional Protocol.  This new 
regime became effective on 1 January 2006 and will also remain in application until the effective 
entry into force of the MERCOSUR Automotive Policy (PAM).  The scope is the same as that of 
PAM, i.e. automobiles, light commercial vehicles, bu ses;  lorries;  semi-trailer tractors;  chassis with 
engines;  trailers and semi-trailers;  coachwork and cabins;  agricultural tractors;  harvesters;  
self-propelled agricultural machinery;  self-propelle d highway machinery;  and automobile parts. 
 
Following the entry into force of this Protocol , free access to Brazil's market is established for 
exports from the automotive sector produced in Ur uguay, provided that the vehicles, groups and 
subgroups classified as automobile parts meet a re gional content index of 60 per cent.  Automobile 
parts must comply with the MERCOSUR regime.  A preferential origin regime (for light vehicles, 
lorries, and coaches) is also established, with  a regional content index of 50 per cent. 
 
As regards the conditions for access of Brazilian products to the Uruguayan market, free trade 
is established for a specific quota of vehicles.  Vehicl es not included in this quota will be subject to a 
preferential tariff margin of 70 per cent for 2005 an d 2006.  In addition, from 1 January 2007, access 
will be free to the Uruguayan market subject to the specified conditions.  
For bilateral trade, goods produced from investments covered by government incentives will 
not be subject to preferential treatment under this Protocol, except, in the case of Brazil, for investment projects by automotive enterprises unde r Law 9.826.  The same  conditions apply to 
automotive products that have benefited from e xport incentives through reimbursements, tax refunds, 
and other similar schemes, with the exception of  Uruguayan goods, as provided in Decree 316/92 and 
the supplementary regulations thereto. 
 
ECA 18 (Argentina-Brazil-Paraguay-Uruguay
) 
 
Through the 44th Additional Protocol , it was decided to unify into one text all rules related to 
the Regime of Origin that governed this subreg ional integration scheme, as such unification was 
expected to facilitate its application.  This deci sion was implemented by incorporation into ECA 18 of 
Decision 01/04 of the Common Market Council.  
According to this Additional Protocol, wh en the MERCOSUR Regime of Origin became 
effective, the following Additional Protocols to ECA 18 would lapse:  8;  14;  22;  24;  27;  35;  
39, and 40, all in respect of this area. 
 
The rules on origin incorporated into EC A 18 include, in summary:  quantification and 
determination of originating produc ts;  issue of certificates of origin;  verification and control process; WT/COMTD/59 
Page 10  
 
  and the system of penalties for the forgery or falsification of certificates of origin of for 
non-compliance with verification and control processes.  
The scope of this regime refers to: 
 
 - Products in the process of convergen ce to the Common External Tariff. 
  - Products subject to the Common External Ta riff, but for which the inputs, parts, and 
components are in the process of converg ence, except where the total value of 
extrazone inputs does not exceed 40 per cent of  the total f.o.b. value of the final 
product. 
  - Measures of a different trade policy applied by one or more States Parties.   In exceptional cases, to be decided by the MERCOSUR Trade Commission. 
 
Without prejudice to the preceding paragraphs, until 1 January 2006, member countries may 
require compliance with the MERCOSUR regime of origin for all intrazone trade.  
Originating products shall be defined as follows: 
 
 - Products wholly obtained, according to th e relevant description in the agreement. 
  - Products manufactured wholly in the territory of any of the member c ountries, when 
only materials originating in the States Parties  are used in their manufacture; 
 
 - Products in whose manufacture materials not originating in the States Parties are used, 
when such products undergo a process of  transformation that gives them new 
characterizations, resulting in their reclassification under a tariff item (the first four digits of the MERCOSUR Common Nomenclature) different from that of the materials concerned. 
 
 - When the requirement in the forego ing paragraph cannot be met because the 
processing does not entail any change in cust oms category, it will be sufficient for the 
c.i.f. port of destination or c.i.f. maritime port value of the inputs from third countries not to exceed 40 per cent of the f.o.b.  value of the goods in question. 
 
 - Products resulting from assembly or mounting operations carried out in a 
MERCOSUR country using materials originating from third party countries, when the c.i.f. port of destination or c.i.f. maritime port value of these materials does not exceed 40 per cent of the f.o.b. value. 
  - Capital goods must meet the origin requirement of 60 per cent of regional value 
added. 
  - Products subject to specific origin requirements included in Annex I of the 
Agreement. 
 
It is further established that certificates of orig in shall be valid for 180 days from the date of 
issue and shall be issued exclusiv ely as in the form provided in the Annex to the Regime of Origin. 
 
Notwithstanding the filing of a certificate of orig in as provided, the competent authority of the 
importing member country may initiate a verificati on and control process in case of reasonable doubt.  WT/COMTD/59 
 Page 11 
 
   
It was also determined that, when certificates i ssued by an authorized entity do not meet the 
requirements of the regime or the supplementary ru les thereto, or where certificates of origin are 
found to have been falsified or forged, the receiving country of the goods covered by such certificates 
may adopt the penalties it deems appropriate to safeguard its fiscal or economic interests. 
 
The Additional Protocol also provides that, when  information in the declaration provided for 
the issue of a certificate of origin is found to be false, and without prejudice to the criminal penalties 
provided for in domestic legislation, the exporter sh all be suspended for a period of 18 months from 
engaging in operations in the MERCOSUR framework.  In such cases, institutions  authorized to issue 
certificates that do so under the conditions est ablished may be suspended from issuing new 
certifications for a period of 12 months. 
 
Further, with a view to making progress towards free movement of goods within 
MERCOSUR, the reporting period saw the adoption of the 46th Additional Protocol incorporating into 
ECA 18 Decision 17/03 of the MERCOSUR Common Mark et Council, on the regime for certification 
under the integration scheme of originating goods stored in the customs warehouses of one of the 
Parties.  
This new Protocol specifies that goods originating from MERCOSUR under a customs 
warehouse regime may only be subject to operations  intended to ensure marketing, conservation, 
division into lots or volumes, or other operati ons, provided that the tariff classification and the 
originating character of the goods remain unchanged. 
  The goods in question may be consigned to any of the parties on a partial or total basis, and those entering for storage under this regime may be covered by the applicable MERCOSUR 
Certificate of Origin, in accordance with the relevant national legislation. 
 
This instrument also specifies th at, when such goods have been subject to one or more of the 
above-mentioned operations, the parties may designa te agencies authorized  to issue derivative 
certificates for all of the goods corresponding to the MERCOSUR Certificate of Origin, or part 
thereof, during the period of validity of the Certificate of Origin.  
Also with a view to establishing a differentiate d regime of origin, to  facilitate Paraguay's 
execution of an export-oriented industrialization policy, the 47
th Additional Protocol, by which 
Decision 29/03 of the Common Market Council is  incorporated into MERCOSUR, was signed. 
 
To that end, the Common Market Council decided that the percentage of regional content in 
the MERCOSUR Regime of Origin, for purposes of granting originating status to products from 
Paraguay, will be 40 per cent until 2008;  50 pe r cent until 2014;  and 60 per cent thereafter. 
 
It was also decided to approve, through th e 48th Additional Protocol, the Common Regime 
for capital goods not produced on the understandi ng that access to capital goods is essential to 
maintain growth levels in countri es of the subregion, and that implementation of common trade policy 
instruments should reflect the existing di fferences between the productive sectors. 
 
This protocol incorporates Decision 34/3 of the Common Market Council into ECA 18. 
 
Through this Common Regime for non-produced capital goods, goods incorporated into a 
common list shall be temporarily subject to an im port tariff of 0 per cent.  This regime includes 
imports of new capital goods and parts and components thereof. 
 
It is also provided that the MERCOSUR Trade Commission shall annually assess the impact 
of trade benefits granted within and outside the subregion. WT/COMTD/59 
Page 12  
 
   
It was also decided to incorporate MERCOSUR Decision 07/04 into ECA 18 on transitional 
provisions of the Regulation on application of safeguard measures to imports from MERCOSUR 
non-member countries.  This regulation on safeguard s, which applies exclusively to imports from 
outside the subregion, is linked to WTO regulati ons basically in the area of notification and is 
applicable for a period of two years from the date the above-mentioned MERCOSUR Regulation (49
th 
Additional Protocol) fully enters into force.  
ECA 22 (Bolivia-Chile
) 
 
It was agreed to incorporate into ECA 22 an Agreement on cooperation and exchange of 
information on customs matters between Bolivia and Ch ile.  In the framework of this Agreement, the 
Parties have both agreed to provide the broadest mutual institutional, administrative, and technical 
cooperation in respect of international transit operations covered by th e International Cargo 
Manifest/Customs Transit Declaration, involving cu stoms destinations for forwarding and in respect 
of exports between the two countries (14th Additional Protocol). 
 
ECA 32 (Chile-Ecuador ) 
  The Fourth Additional Protocol amends the conditions for access to the Chilean market for 
exports of crude oil from Ecuador when this product is withdrawn from the list of exceptions to the 
agreement.  Accordingly, the prod uct will have free access to Chile. 
 
Further, the bilateral agreement on cooperati on and mutual assistance in customs matters was 
incorporated into ECA 32.  Through this juridical  instrument the parties agree to provide mutual 
assistance and cooperation, through the customs author ities, for adequate application of the relevant 
legislation, and with a view to prevention, inv estigation, and punishment of violations in this 
connection, particularly with regard to  the LAIA General Regime of Origin. 
 
ECA 33 (Colombia-México-Venezuela
) 
 
Through the 6th Additional Protocol of 3 August 2005, it was decided to incorporate the 
automotive sector into the tariff reduction progra mme under ECA 33, and the rules of origin were 
established for that sector.  It was also decide d to establish a committee on the automotive sector 
made up of representatives from the governments of each of the three parties, to monitor compliance with the agreements undertaken, and to ma ke any recommendations deemed relevant. 
 
Further, through the Seventh Additional Protocol , some rules of origin, provided for in the 
annex on specific rules of origin (Anne x to Article 6-03) were eliminated. 
 
ECA 35 (MERCOSUR-Chile
) 
 
Through the signing of the 39th Additional Protocol of 8 March 2004, a mutual recognition 
mechanism was approved between Chile and MERCOSUR countries for licences, permits, or 
authorizations for radiocommunication stations, fo r shared use by international road transport 
enterprises operating on the HF band.  
ECA 36 (MERCOSUR–Bolivia
) 
 
It was agreed to incorporate into ECA 36, as an  Annex to the Protocol on Additional Physical 
Integration, the Agreement between Argentina and Bolivia on Construction of the Bridge in the 
Salvador Mazza–Yacuiba Border Area (20th Additional Protocol). 
  WT/COMTD/59 
 Page 13 
 
  The Agreement to facilitate trade through estab lishment of integrated control areas on the 
borders between MERCOSUR States Parties and the Re public of Bolivia was also incorporated.  For 
that purpose, it was provided that the competent officials of each country would exercise their 
respective customs, immigration, sanitary, and trans portation controls in the integrated control area 
(22nd Additional Protocol). 
 
ECA 38 (Chile–Peru ) 
 
Through the Second Additional Protocol, both parties agreed to accelerate the trade 
liberalization programme provided for in Annex 1 to ECA 38.  To that end, Chile granted immediate 
tariff cuts on 38 items of the Latin American In tegration Association No menclature (NALADISA), 
while Peru did so for a total of 26 items. 
 
ECA 43 (Brazil–Cuba ) 
 
Through the Fourth Additional Protocol, a set of new tariff preferences, the Agreement on 
standards, technical regulations, and conform ity assessment, and its appendix, the Agreement on 
collaboration between the National Standardization Office of the Ministry of Science, Technology, 
and Environment of the Republic of Cuba and th e Institute of Metrology, Standardization and 
Industrial Quality (INMETRO) of the Federative Re public of Brazil, were incorporated into the 
Agreement.  
Through this Protocol, both Parties reaffirmed  their rights and obligations in light of the 
Agreement on Technical Barriers to Trade of the World Trade Organization (TBT/WTO).  In this 
connection, inter alia , they agreed to strengthen their sy stems for standardization, technical 
regulation, conformity assessment, and metrology, b ased on the relevant international standards or 
those in preparation.  They also agreed to promote technical cooperation between both countries in 
order to foster implementation of this  Protocol and the TBT/WTO Agreement. 
 
With parallel objectives to the foregoing, an  Agreement on Sanitary and Phytosanitary 
Measures was also incorpor ated into ECA 43 through this Fourth Protocol. 
 
Further, under the Fifth Additional Protocol, it w as agreed to incorporate a dispute settlement 
mechanism into the Agreement.  Through this  mechanism, both countries would resolve their 
conflicts through direct negotiati ons and consultations.  Should they fail to reach a mutually 
satisfactory solution through these mechanisms, the po ssibility is provided of recourse to an ad hoc 
group of experts, made up of three persons, to cons ider the dispute raised.  The group of experts will 
have a period of ninety (90) days from its es tablishment to submit its conclusions to the 
Administrative Commission.  When the report from the group of experts has been received, the 
Administrative Commission will agree on settlement of the dispute, and this procedure will normally reflect the findings and recommendations of the group of experts.  When possible, dispute settlement 
will consist of non-execution or repeal of the measure in breach of the Agreement. 
 
ECA 45 (Argentina–Cuba
) 
 
The Sixth Additional Protocol incorporated new tariff preferences into the Agreement. 
 
It was also decided to incorporate into the Agreement disciplines on rules, technical 
regulations, and conformity assessment aimed at pr eventing technical rules, technical regulations, 
conformity assessment procedures, and metrolog y adopted and applied by both countries from 
constituting unnecessary obstacles to reciprocal trade.   In this connection, Argentina and Cuba 
reaffirmed their rights and obligations under the WTO Agreement on Technical Barriers to Trade.  
Similarly, they agreed, inter alia , to strengthen their standardization, technical regulation, conformity 
assessment, and metrology systems based on the re levant international standards or those in WT/COMTD/59 
Page 14  
 
  preparation.  They also agreed to cooperate, provide  mutual technical assistance, and to promote such 
activities through the competent international or region al organizations (Seventh Additional Protocol). 
 
Both countries also signed the Eighth Additional Protocol incorporating the dispute settlement 
mechanism in order to resolve disputes arising in connection with the interp retation, implementation, 
or non-fulfilment of ECA 45.  Through this regime the parties stipulated that they would resolve 
conflicts through consultati on and direct negotiations. 
 
For conflicts that cannot be solved by direct  negotiation and consultation as indicated above, 
the establishment of a three-member ad hoc group of experts may be requested. 
 
The report to be submitted by the Group of Experts must be drafted on the basis of an 
objective evaluation of the facts, according to th e rules of procedure and code of conduct to be 
established by both countries.  
ECA 55 (Argentina-Brazil-México-Paraguay-Uruguay
) 
 
Considering that ECA 55 establishes the possibility of including automotive products in the 
liberalization programme at any time, Argentina a nd Mexico decided to incorporate specific motor 
vehicles for the transport of 10 or more persons including the driver, provided that the products are new.  The parties will agree a zero tariff for imports of such vehicles that meet the rules of origin and 
further applicable conditions, and it is  established that this type of vehicle shall form part of the quota 
of 50,000 units until 30 April 2006, after which date  free trade will be established (First Additional 
Protocol).  
It was also decided to amend Appendix IV on trade in the automotive sector between Mexico 
and Uruguay (First Additional Pr otocol, Appendix IV, ECA 55). 
 
This Protocol incorporated into preferential tr ade, in the automotive sector between Mexico and 
Uruguay, agricultural tractors;  harvesters, self-pr opelled rail and agricultural machinery;  and auto 
parts required for production of specific vehicles.  
These products will be subject to a tariff of 0 per cent, on a reciprocal basis, without 
quantitative restrictions, subject to the requirement s established in the Regime of Origin of the 
Agreement.  
B.2 Conclusion of new agreements 
 A total of four economic complementarity agreements were signed during the period 
1 January 2004-31 December 2005, as follows:  
Economic Complementarity Agreement 58 signed between
 
Argentina, Brazil, Paraguay, Peru, and Uruguay  
 
This Agreement, signed on 30 November 2005, w ill enter into force after registration with the 
LAIA Secretariat and will remain in effect indefinite ly.  Once it has entered into force, the signatory 
Parties will cancel the negotiated tariff preferen ces and related regulatory provisions under ECA 39 
(Brazil/Colombia/Ecuador/Peru/Venezuela) and 48  (Argentina/Colombia/Ecuador/ Peru/Venezuela), 
and in Partial-Scope Renegotia tion Agreements 20 (Paraguay/Peru) and 33 (Peru/Uruguay).  
However, the provisions of these agre ements that are not inconsistent with the new Agreement or that 
refer to matters not included in the new Agreement will remain in effect. 
  WT/COMTD/59 
 Page 15 
 
  This plurilateral Agreement aims to estab lish a free trade area between MERCOSUR and 
Peru.  
A further objective of ECA 58 is to establish the legal and institutional framework for 
cooperation and for economic and physical integrati on designed to contribute to the creation of an 
enlarged economic space with a vi ew to facilitating free movement of goods and services and the full 
utilization of the factors of production under co mpetitive conditions.  Similarly, harmonious 
development is to be achieved in the region, taking into account the asymmetries caused by the 
disparate levels of economic development of the signatory Parties.  
Not only is ECA 58 a valuable legal instrument in the liberalization of trade in goods, but it 
also contains objectives that extend beyond the commerc ial area.  It in fact incorporates provisions on 
supplementary matters and deve lopment activities, complementarity and cooperation in other 
economic sectors of mutual interest, and provid es that trade liberalization mechanisms will be 
accompanied by joint and coordinated activities.  
Further, the scope of the Agreement transcends th ese five countries.  Its content has a decisive 
influence in creating the conditions required for gradua l, reciprocal liberalization of regional trade.  
Further, its signing, jointly with ECA 59, marked the culmination of negotiations to establish a free 
trade area between the Andean Community and MERC OSUR.  It should be noted that Bolivia became 
an associate member of MERCOSUR, through ECA 36, in December 1996. 
 
The key features of the new Agreement are described below. 
 Objectives
 
 
The specifically developed objectives of this Agreement, reflecting a number of general 
principles such as national treatment and convergence , are basically to establish a legal framework to 
facilitate free movement of goods and services;  ex pand and diversify reciprocal trade;  eliminate 
tariff and non-tariff barriers;  consider the differe nt levels of development between countries;  
promote development and use of physical infrastructures;  promote and stimulate investment;  and promote complementarity and cooperation in th e economic, energy, scientific and technological 
fields. 
 
Trade liberalization programme
 
 
One of the central objectives of the Agreement is  the establishment of a free trade area to be 
achieved through a trade liberalization programme a pplied to the universe of products originating 
from the territories of the Contracting Parties. 
 
Reductions are annual and gradua l, and apply to the current tariff for third countries. 
Preferential margins therefore increase gradually to 100 per cent.  The trade liberalization programme 
reflects the acknowledgement of asymmetries betw een the signatory countries and establishes 
differentiated timetables – initial level, rate of re duction, and term – depending on whether this 
involves concessions granted and received betw een Argentina, Brazil, Paraguay or Uruguay 
(MERCOSUR member countries) and Peru.  In this  connection, the trade liberalization programme 
establishes general and special reduction timetables.  Special timetables apply to LAIA historical heritage products, sensitiv e products, and those subject to immediate reduction. 
 
In the area of non-tariff restrictions, the parties undertake not to apply or maintain new 
reciprocal trade restrictions.  WT/COMTD/59 
Page 16  
 
  Origin
 
 
In this area the Agreement adopts a regime included in Annex V with the following 
qualification criteria:  
 - Products wholly obtained on the territory of the parties; 
  - Non-originating materials used in the production process, leading to a change in 
category under the Harmonized System; 
 
 - Products meeting a percentage of regional content, as follows: 
   50 per cent during the first three years;   45 per cent during the fourth, fifth, and sixth years;  and   40 per cent from the seventh year. 
 
 - For products produced through an assembly or mounting process, the percentages of 
originating materials will be th e same as under the subparagraph. 
 
An article was also included on Specific Origin Requirements
 for goods using non-originating 
materials, which will take precedence over the general criteria. 
 
The rules of origin also provide for "regiona l accumulation of origin", whereby enterprises are 
permitted to use in their production processes mate rials or inputs originating in any MERCOSUR 
country.  In addition, for accumulation purposes, pro ducts originating from Bolivia will be considered 
originating products for the exporter.  Products or iginating from the remaining member countries of 
the Andean Community (Colombia, Ecuador, and Ven ezuela) will also be considered as originating 
from the exporting country, although this conditio n will be maintained for a period of one year, 
renewable annually subject to assessment of this mechanism.  
The Agreement also regulates cer tification of origin, the corresponding document, the issue 
and validity of this certificate by the competent aut horities, verification of origin, and the consultation 
process when doubts or discrepancies exist, among other matters. 
 Safeguard regime
 
 
ECA 58 provides for the application of a safe guard mechanism to counteract the negative 
effects that the liberalization of markets may entail on the domestic markets of participating countries. 
These safeguard measures may be invoked in the case of MERCOSUR, by a contracting party or on behalf of a State Party.  In the first case, the requi rements for determining serious injury or threat of 
serious injury will be based on existing conditio ns in each MERCOSUR State Party.  In the second 
case serious injury will be determined on the b asis of the conditions existing in the MERCOSUR 
State Party and the scope of the measures will be limited to the party concerned. 
 
The safeguard shall be applied by suspe nding the increase in the preference margin 
established in the Agreement or reducing or  suspending the agreed preference margin. 
 
The safeguard measures will have a maximum va lidity of two years and may be extended 
once only for an additional year. 
 
The Agreement also provides that, in critical circumstances, where any delay would cause 
damage which it would be difficult to repair, the parties may adopt a provisional safeguard measure
 
for a maximum period of 180 days.  WT/COMTD/59 
 Page 17 
 
   
The parties preserve their rights and obligations  to apply safeguard measures in accordance 
with Article XIX of the 1994 GATT and the WTO Safeguards Agreement. 
 Unfair trade practices
 
 
In this area, the parties shall ob serve the provisions of the WTO  Agreement on 
Implementation of Article VI of the GATT 199 4, and the WTO Agreement on Subsidies and 
Countervailing Measures.  Export incentives
 
 
The signatory Parties condemn all forms of unfai r trade practices and und ertake to eliminate 
any measures that could distort bilateral trade. 
 
In this connection they agree not to apply to reciprocal agricultural trade export subsidies or 
other equivalent measures that distort trade and prod uction of agricultural origin.  They also agree not 
to apply export subsidies to reciprocal industrial trade, as provided by the WTO.  Products that do not meet the foregoing requirements will not benefit from the liberalization programme. 
 Technical rules and regulations
 
 
The objective of the relevant annex (Annex VIII) is  to prevent technical regulations and rules 
from constituting unnecessary technical barriers to recipro cal trade.  In this connection, the rights and 
obligations under the agreements governing this ma tter in the WTO and the LAIA were reaffirmed. 
 
In addition, to achieve compatibility of rules and regulations among the parties, the agreed 
text promotes the conclusion of recognition agreem ents between their respective authorities in the 
areas of metrology, standardization, tec hnical regulation and conformity assessment. 
 
A framework of cooperation and technical assi stance and a transparency mechanism were 
agreed, through which the parties would notify each other of new technical regulations and any other 
mandatory measures they intend to adopt. 
 
Sanitary and phytosanitary measures  
 
The chapter on sanitary and phytosanitary measure s is contained in Annex IX.  Under that 
chapter, the Parties agreed to a commitment to align themselves with the Agreement on the 
Application of Sanitary and Phytosanitary Measur es of the WTO (SPS/WTO) in matters governed by 
the Agreement.  
They also agreed that their sanitary and phytosanitary measures should only apply when 
necessary to protect human, animal  or plant life or health, subject to Article 5, paragraph 7, of 
SPS/WTO. 
 
In the area of harmonization, the Parties undertake to use international recommendations, 
standards and guidelines as a basis for the adoption an d application of their sanitary and phytosanitary 
measures, and in the absence thereof, the standard s, guidelines and recommendations of the regional 
organizations of which the signatory Parties are members.  Where such regulations do not exist or 
where they are inadequate to provide the level of protection required by the importing signatory Party, 
the Parties may adopt the sanitary and phytosanitary  measures that they deem relevant, with proper 
scientific justification.  WT/COMTD/59 
Page 18  
 
  Provisions were also incorporated on equiva lency, risk assessment, recognition of free areas, 
control and inspection procedures, transparency, tech nical cooperation, and coun ter-notifications to be 
used by countries to notify the sanitary and phy tosanitary measures that they plan to adopt. 
 Dispute settlement
 
 
In the area of dispute settlement, the Agreem ent contains an interim dispute settlement 
mechanism applicable fro m the entry into force of the Agre ement and a definitive regime, signed 
together with the Agreement (First Additional Protoc ol), which will enter into force when the parties 
meet the requirements necessary for its incorporation into their respective national legislative systems. 
 
Both the interim and the defi nitive mechanism will include a procedure comprising three 
phases:  direct consultation, intervention of th e administrative commission, and establishment of a 
group of experts (interim regime) or arbitrators (definitive regime).  In both cases, it is established that disputes between the parties may also be addressed in the WTO framework, at the discretion of the 
complaining party. 
 Other matters
 
 
Regarding services, investments, intellectua l property, transport, and scientific and 
technological complementarity, while the parties ag ree with the existing WTO multilateral rules in 
these areas, the commitment to develop future ru les and disciplines in each area is established. 
 
Economic Complementarity Agreement 59 signed by the MERCOSUR States Parties with Three 
Andean Community Countries (Colombia, Ecuador, and Venezuela) on 18 October 2004  
 
This plurilateral treaty concluded by the ME RCOSUR States Parties with Colombia, Ecuador, 
and Venezuela (Andean Community member countries) is aimed, inter alia , at establishing a free 
trade area through the expansion and diversificat ion of trade and the dismantling of tariff and 
non-tariff restrictions affecting reciprocal trade.  This Agreement was registered with the Association 
under No. 59, and was signed on 18 October 2004.  It will remain in effect indefinitely. 
 
The Agreement also proposes as an objective th e establishment of a legal and institutional 
framework for cooperation and for economic and physi cal integration designed to contribute to the 
creation of an enlarged economic space with a view to facilitating free movement of goods and 
services and the full utilization of the factors of pr oduction, under competitive conditions.  It will also 
seek to achieve harmonious development in the regi on, taking into account the asymmetries caused by 
disparate levels of economic devel opment among the signatory Parties. 
 
ECA 59 is directly related to ECA 58 in terms of objectives, scope, and structure. 
 
From the date of entry into force of this Agreement, the tariff preferences negotiated and 
related regulatory provisions in Pa rtial-Scope Economic Complementar ity Agreements 28, 30, 39, and 
48, Partial-Scope Renegotiation Ag reements 18, 21, 23, and 25 a nd Trade Agreements 5 and 13, 
signed in the framework of the 1980 Treaty of M ontevideo, will be cancelled.  However, the 
provisions of these agreements that are inconsistent with ECA 59 or that refer to matters not covered 
therein will remain in effect.  
The previous report indicated that the parti es had agreed to form a free trade area from 
July 2004.  Negotiations, however, extended beyo nd the scheduled time-frame, largely owing to the 
complexity of the subjects addressed and the asymmetries existing among the signatory countries' 
economies.   WT/COMTD/59 
 Page 19 
 
  With the inclusion of the free trade agreements signed by Bolivia (ECA 36) and by Peru 
(ECA 58) with MERCOSUR, the liberalization of b ilateral relations between the countries of the 
Andean Community and MERCOSUR is completed.  
In terms of both tariffs and regulatory aspects,  ECA 59 (at least in respect of the rules of 
origin) was designed explicitly to take account of  the asymmetries and sensitivities of the various 
participants. 
 
The key features of the new Agreement are described below. 
 Objectives
 
 
ECA 59 establishes a liberalization programme fo r goods with a view to achieving a free trade 
area.  It also establishes specific regulations rela ted to the programme in areas such as regime of 
origin, safeguards, special measures  for agricultural products, subsidies,  technical rules, sanitary and 
phytosanitary measures, and dispute settlement, provi ded in the annexes.  Lastly, it establishes an 
administrative commission to be responsible for administration and assessment of the Agreement. 
 
Not only is ECA 59 a valuable legal instrument for the liberalization of trade in goods, it also 
contains objectives that extend beyond trade.  It in corporates provisions on supplementary matters and 
development activities, complementarity and cooperati on in other economic sectors of mutual interest, 
and provides that trade liberalization measures ar e to be accompanied by the following joint, 
coordinated activities: 
 
 Establishment of a legal and institutio nal framework of economic and physical 
cooperation for the free movement of goods  and services and the full utilization of 
the factors of production; 
 
 promotion of reciprocal investments; 
 
 measures designed to promote complement arity and cooperation in the economic, 
energy, scientific and technological fields and to stimulate development of physical 
infrastructures, particularly those that permit reductions in operating costs;  and 
 
 agreements to move towards coordination of positions in trade negotiations with 
third countries or with groups of countries outside the region. 
 Trade liberalization programme
 
 
One of the central objectives of the Agreement is  to establish a free trade area to be achieved 
through a trade liberalization programme applied to the universe of products originating from 
territories of the contracting parties.  
Tariff reductions are annual and gra dual, and apply to the current tariff for third countries.  In 
this connection, preference margins will be in creased gradually to 100 per cent.  The trade 
liberalization programme reflects acknowledgement  of asymmetries among the signatory countries, 
and establishes differentiated timetables – initial le vel, rate of reduction,  and term – depending on 
whether concessions granted and received are invol ved between Argentina, Brazil, Paraguay, or 
Uruguay, and Colombia and Venezuela, or between each of the four MERCOSUR States Parties and 
Ecuador. 
 
The trade liberalization programme will estab lish the general and special timetables 
applicable to LAIA historic heritage products, sen sitive products, and products  subject to immediate 
and semi-immediate reductions.  In the different time tables, the initial level of preference, the rate of WT/COMTD/59 
Page 20  
 
  reduction, and the time-frame to achieve 100 per ce nt preference will vary.  For some products, 
gradual reduction begins following a stabilization period;  while for others, the gradual reduction 
remains unchanged for a specific period, and sub sequently continues until total exemption is 
achieved.  
Regime of origin
 
 
For a product to enjoy tariff preferences under the liberalization programme, it must meet 
origination requirements.  To that end, the Agreement establishes in Annex IV the rules for 
qualification, declaration, certification, contro l, and verification of the origin of the goods. 
 
In this connection, in addition to products wholly obtained on the territory of the parties, 
goods whose production meets any of the following c onditions shall be considered as originating: 
  - Non-originating materials used in the pr oduction process, leading to a change in tariff 
heading  under the Harmonized System; 
  - Products meeting a percentage of regional content
 established at: 
   60 per cent for Argentina and Brazil;  
  50 per cent for Colombia, Venezuela, and Uruguay until the seventh year;  to be 
increased from the eighth year to 55 per cen t with a review of the possibility of 
reaching 60 per cent; 
   40 per cent for Ecuador and Paraguay until the fifth year, to be increased to 45 per 
cent from the sixth year, and from the tenth year, 50 per cent regional content, again 
with the possibility of reaching 60 per cent. 
  - For products produced through an assembly or mounting process, the percentages of 
originating materials are the same as under the preceding subparagraph.  
 
An article was also included on specific origin  requirements for goods using non-originating 
materials, which will override the general criteria.   These specific origin requirements agreed on a 
bilateral basis correspond basically to products from th e agricultural, textile, and steel sectors.  Where 
the automotive sector is concerned, specific origin  requirements were established that take into 
account the different categories of countries. 
 
Safeguards and special measures
 
 
ECA 59 provides for the application of a safe guard mechanism to counteract the potentially 
negative effects of market liberalization on the dom estic markets of participating countries.  These 
safeguard measures may be invoked by a Contracting Party or a signatory party.  In the first case, the 
requirements for determining serious injury or thr eat of serious injury will be based on existing 
conditions in all signatory Parties of the Contr acting Party in question.  In the second case, the 
determination of serious in jury will be based on existing conditions in the signatory Party affected and 
the scope of the measure will be limited to the signatory Party in question. 
 
 The text provides that the safeguard mechanis m will apply on an interim basis throughout the 
tariff reduction process (for a period of 15 years) plus an additional period of f our year, after which an 
assessment will be conducted to determine whether or not it should be continued. 
  WT/COMTD/59 
 Page 21 
 
   Application of the safeguard shall consist of the suspension of the incr ease in the preference 
margin established in the Agreement or the reducti on or suspension of the agreed preference margin. 
  Safeguard measures will remain in effect fo r a maximum of two years and may be extended 
once only for an additional year.  
 Agricultural safeguards
:  In addition, in the case of Argentin a, Brazil, and the countries of the 
Andean Community, the Agreement pr ovides for the application of "special measures" for reciprocal 
trade in some sensitive agricultural products (an av erage of 30 items per country).  In these cases, 
more flexible safeguards will be permitted to  address import price and volume contingencies. 
 
Technical rules and regulations  
 
The annex on this subject (Annex VII) is designe d to prevent technical rules and regulations 
from constituting unnecessary technical barriers to recipr ocal trade.  The rights and obligations under 
the agreements governing this matter in the WTO and the LAIA were reaffirmed. 
 
 In addition, to achieve compatibility of rul es and regulations among the Parties, the agreed 
text promotes the conclusion of recognition agreem ents between their respective authorities in the 
areas of metrology, standardization, techni cal regulation, and conformity assessment. 
  A framework of cooperation and technical assi stance and a transparency mechanism were 
agreed, through which the Parties will notify each ot her of new technical re gulations and any other 
mandatory measures they intend to adopt.  Sanitary and phytosanitary measures
 
 
The chapter on sanitary and phytosanitary measures  is contained in Annex VIII.  Under that 
chapter, the Parties agreed to a lign themselves with the Agreement on the Application of Sanitary and 
Phytosanitary Measures of the WTO (SPS/WTO)  in matters governed by the Agreement. 
 
They also agreed that their sanitary and phytosanitary measures should only apply when 
necessary to protect human, animal or plant life or health, based on scientif ic principles in accordance 
with the relevant WTO provisions. 
 
Mechanisms and procedures are established with duly agreed time-frames, through which the 
parties are to promote a process of harmonization and equivalency for their respective measures, as instruments to facilitate trade. 
 
 Measures were also included on transparency and counter-notif ications by which countries 
must notify the sanitary and phytosanitary measures they intend to adopt.  Anti-dumping and countervailing measures
 
 
In this area, the Parties will observe the Agre ement on Implementation of Article VI of the 
GATT 1994, and the Agreement on Subsidies and Countervailing Measures.  
On a supplementary basis in the area of s ubsidies, with the deepening of multilateral 
obligations, it was agreed that export subsidies woul d not apply to reciprocal trade in agricultural 
products. 
 
Criteria were agreed to prevent domestic s upport measures generating distorting effects on 
reciprocal trade.  It was also established that goods  not meeting these criteria would not qualify for the 
liberalization programme. WT/COMTD/59 
Page 22  
 
   
Dispute settlement
 
 
In the area of dispute settlement, the Agreem ent contains an interim dispute settlement 
mechanism applicable fro m the entry into force of the Agre ement and a definitive regime signed 
together with the Agreement, which will enter in to force when the parties meet the requirements 
necessary for its incorporation into their respective national legislative systems. 
 
Both the interim and the definitive mechanis m will include a procedure with established 
time-frames comprising three phases:  direct co nsultation, intervention of the administrative 
commission, and establishment of a group of expert s (interim regime) or arbitrators (definitive 
regime).  Other matters
 
 
Regarding customs valuation, services, investme nts, intellectual property, transport, and 
scientific and technological complementarity, wh ile the parties agree with the existing WTO 
multilateral rules in these areas, the commitment to develop future specific rules and disciplines for 
each of these areas is established.  
Economic Complementarity Agreemen t 60 between Mexico and Uruguay
 
 
The purpose of this bilateral agreem ent between Mexico and Uruguay is, inter alia , to 
establish a free trade area pursuant to Article XXIV of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Article V of the Gene ral Agreement on Trade in Services.  The 
Agreement was signed on 15 November 2003, entered into force on 15 July 2004, and was deposited 
in the LAIA Secretariat in the second half of 2004. 
 
Trade relations between Mexico and Uruguay ha d been governed by ECA 5, which lapsed 
from the date of entry into force of this Agreement.  
The key features of the new Agreement are described below. 
 
Objectives
 
 
The objective of the Agreement is to stimulat e expansion and diversification of trade, 
facilitate movement of goods and services, prom ote conditions of fair competition, promote 
investment opportunities on their territories, protect intellectual property rights, promote cooperation, 
and establish effective procedures for the applica tion of the Agreement and for dispute settlement. 
These aims are based on national treatment and on the most-favoured-nation and transparency 
principles.  Market access
 
 
Regarding market access, as set out in th e objectives, the Agreement provides for the 
establishment of a free trade area through elimination of  all tariffs on originating goods on the date the 
Agreement enters into force.  In this connec tion, the Agreement broadens and deepens trade 
liberalization already achieved between the two countries under ECA 5, while incorporating a 
substantial number of concessions into free trade.  Most of the tariff universe will have free market 
access in both countries.   WT/COMTD/59 
 Page 23 
 
  Products not included in the total liberalizati on have been included in two annexes listing 
groups of products which, owing to specific circum stances in each case, are e ligible for tariff cuts 
under regimes with differing time-frames or that are excluded from the liberalization programme. 
 
The first product category (Annex 3-03(3)) covers  meat of bovine animals and footwear.  For 
products included in the annex that  covers meat of bovine animals,  Mexico will apply a 7 per cent 
tariff at the end of the third year the Agreement has been in effect.  For tariff headings indicated by 
both parties, corresponding to footwear, free trad e will be achieved under a ten-year timetable of 
gradual tariff cuts.  Some of Mexico's tariff items in this sector will begin to be liberalized with a 
90 per cent tariff preference, while for Uruguay anothe r list of items will begin liberalization with a 
50 per cent preference. 
 
Annex 0-03(4) deals with tariff treatment for goods excluded from the total elimination of 
customs tariffs.  Petroleum trade between both count ries will be exempted from the provisions of the 
Agreement.  Trade in automotive goods included in ECA 55 and the Additional Protocols thereto will 
be governed exclusively by the provisions of those instruments. 
 
Finally, the Agreement establishes a commitme nt whereby the Parties are to engage in 
consultations with a view to incorporating goods  excluded from free trade or to speed up the 
elimination of tariffs provided for in Annex 3-03 (3).  Regime of origin
 
 
In this area, the Agreement adopts a specific re gime with the following qualification criteria: 
  (a) Wholly obtained;  
 (b) produced in the territory of one or both Parties exclusively from materials which 
qualify as originating; 
  (c) produced in the territory of one or bot h Parties from non-originating materials that 
meet change of tariff classification and other requirements; 
 
 (d) produced in the territory of one or both Parties from non-originating materials which 
meet change in tariff classification and ot her requirements, and when the good itself 
complies with a regional content value; 
  (e) produced in the territory of one or both parties and complying with a regional content 
value; 
  (f) with the exception of the goods under head ings 4201-4202 or covered by Chapters 61 
and 63 of the Harmonized System, the good is produced in the territory of one or both Parties, but one or more of the non-originating materials used in its production does not meet the change in tariff classification criterion. 
 
The Regime of Origin also includes specifi c rules of origin, as well as the following 
provisions:   - De minimis  criteria; 
 
 - possibility of applying fungible materials;   - qualification of intermediate materials;  WT/COMTD/59 
Page 24  
 
   - accumulation:  production may be accumulated with one or more producers on the 
territory of one or both parties, that produ ce materials incorporated into the good, so 
that production of the materials is cons idered to have been performed by that 
producer; 
 
 - games or assortments; 
  - indirect qualification of goods;   - qualification of packaging and packing materials for retail sales; 
 
 - containers and packing materials for shipping, not considered for purposes of 
qualification of origin. 
 Safeguards
 
 
For the application of this measure, a special regime is adopted under which the parties may 
apply bilateral or general measures and which contains definitions in respect of serious injury, threat 
of serious injury, [like] good or product, domest ic industry, like good, directly competitive good. 
 
The Parties preserve their rights and obligations  to apply safeguard measures in accordance 
with Article XIX of the GATT 1994 and the WTO Agreement on Safeguards. 
 
The option to apply preferential safeguards is provi ded, subject to investigation, to the extent 
necessary to prevent or remedy serious injury r esulting from unforeseen developments, the application 
of tariff preferences granted, and to facilita te adjustment of the domestic industry. 
 
The measure is scheduled to remain in effect for one year, renewable for a further year.  In 
total, the measure can be applied for a maximum of two years.  
The procedures for application of the safeguard  measure are initiated when the enterprise 
submits a request to the entity representing the domestic industry. 
 
The safeguard regime also includes provisions on the information to be included in the 
request for the competent investigating authority to begin the investigation. 
 
The Parties must publish duly reasoned decisions in connection with an investigation. 
 
The Agreement also provides for the appli cation of provisional measures with a 200 day 
duration.  It requires written notification of the initiati on of an investigation;  prior to the application 
of a provisional measure;  intention to apply or extend a measure;  or decision to apply or extend a 
measure.  It also provides for the possibility of requesting consultations.  
Unfair trade practices (dumping and subsidization
) 
  In the event of the occurrence of dumping or subsidization, the Agreement establishes a 
detailed regulatory framework that generally dete rmines that the Parties may apply anti-dumping and 
countervailing duties in accordance wi th their respective national laws and in conformity with the 
relevant provisions of the WTO Anti-Dumping Agreement and the Agreement on Subsidies and 
Countervailing Measures.   WT/COMTD/59 
 Page 25 
 
  Standards, technical regulations a nd conformity assessment procedures  
 
In this area, the Parties shall be governed by the rights and obligations contained in the 
Agreement on Technical Barriers to Trade (TBT) of the WTO.  It was also decided that measures 
could be adopted as deemed necessary to secure leg itimate objectives and to guarantee application of 
and compliance with standardization measures, while preventing such measures from constituting 
unnecessary barriers to trade. 
 
To facilitate trade, action will be taken to el iminate trade barriers that may result from the 
application of technical regulations and confor mity assessment procedures, without reducing the 
required level of protection or prevention. 
 
It was also established that, at the request of one of the Parties, the two countries' technical 
regulations and conformity assessment procedures could be made compatible.  Agreement was 
reached on a commitment to transparency, techni cal cooperation and the organization of bilateral 
meetings, in order to make progress in these areas. 
 
Cross-border trade in services  
 
The Agreement is based on the principle of na tional and most favoured nation treatment; it 
also establishes a list of reservations and exceptions  to those principles (Annex I).  A period of 
one year was agreed for the submission of these lists, while a period of two years is to be allowed for 
financial services. 
 
Each Party shall submit a list (Annex II) of the quantitative restrictions it maintains at the 
national, federal, or state level.  
With a view to gradual liberalization, nego tiations may be organized to eliminate the 
remaining restrictions.  
Specific rules were also agreed for treatment  of professional services, telecommunications, 
and temporary entry of business persons.  
Telecommunications
 
 
In this area, a set of rules is established to guarantee that any person of the other Party has 
access to and use of any public telecommunicati on networks or services.  Conditions are also 
established for enhanced or value-added services;   standardization measures;  anti-competitive 
practices;  measures on transparency and techni cal cooperation;  and consultation between the 
two parties.  Intellectual property
 
 
A set of rules is established under which each Part y shall grant in its territory adequate and 
effective protection of intellectual property rights a nd ensure that measures to  enforce those rights do 
not themselves become barriers to legitimate trade.   These rules cover all categories of intellectual 
property that are subject to protection.  
Any obligations the Parties may have betwee n themselves under the Paris Convention, the 
Berne Convention, the Rome Convention, the Ge neva Convention, and the Conversion of the 
International Union for the Protection of New Varie ties of Plants (UPOV) shall be observed, without 
prejudice to any rights or obligations that may exist under other treaties. 
 WT/COMTD/59 
Page 26  
 
  The principles of national and most-favoured-na tion treatment were adopted with respect to 
the protection of intellectual property rights, toge ther with commitments on protection of copyright, 
trademarks, geographical indications , appellations of origin, patents,  utility models, industrial designs, 
plant breeders' rights, protection of undisclosed in formation, and control of anti-competitive practices 
in contractual licences. 
 
Policies in the area of competition, monopolies, and State-owned enterprises
 
 
The Agreement establishes a set of rules to co unter anti-competitive business practices.  In the 
area of monopolies, while there is nothing to prevent the Parties from designating a monopoly, a set of 
commitments is agreed on reporting and non-use of  monopoly position to engage in anti-competitive 
practices.  Investments
 
 
In the area of investments, the Agreement est ablishes the principle of national treatment, 
providing that "each party shall accord to investor s of the other party treatment no less favourable 
than that it accords, in like ci rcumstances, to its own investors w ith respect to the establishment, 
acquisition, expansion, manage ment, conduct, operation, and sale or other disposition of 
investments".  
It also establishes the principle of most-favoured-nation treatment and other provisions 
involving performance requirements;  minimum leve l of treatment;  reservations and exceptions; 
transfers;  expropriation and compensation;  speci al formalities and information requirements;  and 
dispute settlement.  
Other provisions
 
 
The Agreement also includes rules on policy in the area of competition, monopolies and State 
enterprises;  intellectual property;  transpar ency;  exceptions;  and dispute settlement. 
 
Economic Complementarity Agreement 61 signe d by Colombia, Venezuela, and Mexico  
 
ECA 61 was signed on 7 December 2004 by Colombia , Venezuela, and Mexico.  It lays the 
groundwork for the establishment of free trade in  the automotive sector and promotes productive 
complementarity and integration in this sector, and in other sectors that produce televisions, 
pesticides, and disposable razors.  This is an in terim agreement, as it is specified that it will only 
remain in effect during 2005.  These three countries already have a broad ECA (ECA 33) in which 
trade liberalization, inter alia , is promoted.  This Agreement, like ECA 33, regulates trade between 
Mexico, on the one hand, and Colombia and Venezuel a, on the other, as trade between Colombia and 
Venezuela has already been libera lized as a result of the two countr ies' membership in the Andean 
Community.  
In the automotive sector, ECA 61 provides that each Party shall reduce its import duties on 
automotive goods originating from the other Parties under tariff headings 87.03 and 87.04, except for vehicles exceeding 8.8 tonnes in gross weight.  Quotas and schedules shall be established for that 
purpose.  
Non-quota imports will be subject to import levies as agreed by the Parties. 
 
Except as otherwise provided in the Agreemen t, the Parties may adopt or maintain 
prohibitions or restrictions on imports of used auto mobiles and other used, reconstructed or repaired 
automotive goods.  WT/COMTD/59 
 Page 27 
 
   
At the same time, each party shall eliminate its import duties, from the date of entry into force 
of the Agreement, on originating goods under su bheadings 3808.10-3808.30, 8529.90, and 8212.10, 
relating to pesticides, parts of equipment, a nd shaving equipment, respectively.  Items under 
classification 85.28, referring to televisions, will be  subject to a zero tariff rate from that date. 
 
As regards rules of origin, while the Agreemen t is based on the general rules laid down by 
ECA 33, it also contains specific rules of origin and provisions on customs procedures.  
In the case of dispute settlement, it establishes that the regime of ECA 33 shall apply as well 
as the model rules of procedure and code of conduct under ECA 33, which were approved by 
Decisions 9 and 10 of the Administrative Commission. 
 
B.3 Lapsed Economic Complementarity Agreements 
 As a result of the signing of Economic Comple mentarity Agreements 58 and 59 by the States 
Parties to MERCOSUR and Peru, and between th e States Parties to MERCOSUR and Colombia, 
Ecuador, and Venezuela, respectively (see B.2 above),  the tariff preferences and related effects under 
Partial-Scope Economic Complement arity Agreement 39 signed by Brazil, Colombia, Ecuador, Peru, 
and Venezuela;  Agreement 48 signed by Argentin a, Colombia, Ecuador, Peru, and Venezuela;  
Agreement 28 signed by Ecuador and Uruguay, and Agreement 30 signed by  Ecuador and Paraguay 
have ceased to be operative.  
C. O
THER TYPES OF PARTIAL -SCOPE AGREEMENT (ANNEX 2) 
C.1 Agreements concluded under Article 13 of the 1980 Treaty of Montevideo 
Partial-Scope Trade Promotion Agreem ent on Energy Integration (AAP.PC/10)  
signed by Argentina and Bolivia on 16 February 1988  
 
Additional Protocol 1 – Supply of Natural Gas from Bolivia  
to the Gas Pipeline in Northeast Argentina  
 
On 14 October 2004, Argentina and Bolivia signed Additional Protocol 1 to AAP.PC 10 
involving the Northeast Argentina gas pipeline.  This Agreement focuses on the importance of 
deepening binational energy integration. 
 
In the signing of this Additional Protocol, acc ount was taken of both countries' interest in 
developing border areas through establishment of na tural gas industrialization projects to generate 
more economic activity and jobs in the area.  
To that end, both Parties agreed to facilitate natural gas export and im port operations and to 
refrain from adopting measures to impede or alter execution of purchase and sale contracts for transportation of natural gas concl uded under this Protocol.  In this  connection, and in conformity 
with their respective laws, both countries undertake to grant authorizations, concessions and licences 
as required for investors to build and operate a gas pipeline to transport natural gas between the two 
countries, and to facilitate the issue of the appropria te authorizations to export and import natural gas. 
 
The Parties also agreed to facilitate constructi on of a liquid natural gas separation plant in the 
border area, the output of which could be exported to third countries.  
Exported natural gas will be subject to fees and taxes established under Bolivia's Law on 
Hydrocarbons, and to tax adjustments or amendments  universally applicable to economic transactors. 
 WT/COMTD/59 
Page 28  
 
  Under the procedures and powers provided in the Constitutions of Bolivia and Argentina, the 
Parties agreed not to impose new levies on exports or imports of natural gas in addition to those 
established in each country's sectoral legislation.  
It was also decided to establish a technical cooperation programme between the two countries, 
for the expansion of distribution networks and installation of home gas connections in Bolivia, 
conversion to compressed natural gas of Bolivia's automotive fleet, and extension of the existing gas 
pipeline in Argentine territory to supply specific localities in both territories with natural gas. 
 
The Parties agreed to adopt a dispute settlement  mechanism in connection with the application 
or interpretation of this Additional Protocol within  90 days from the date of its entry into force. 
 
The Protocol also aims to promote recogniti on of mandatory certification activities for the 
parties' originating products.  In this conn ection, there are provisions intended to promote 
understandings between certification organizations  in Argentina and Ecuador on the acceptance of 
some or all product certification activities. 
 
The Agreement will be valid for two years, subject to automatic renewal, and may be 
amended by the Parties through the signing of an Additional Protocol. 
 
Partial-Scope Agreement on Economic, Co mmercial and Investment Promotion
 
between the Republic of Bolivia and the Republic of Argentina  
 
(AAP.PC 17 of 21 April 2004 ) 
 
This Agreement established, inter alia , the objective of promoting productive competitiveness 
between Argentina and Bolivia, in order to fost er and diversify exports of goods and services, 
particularly from Bolivia, and to stimulate comp lementarity of national output by supporting trade 
between the Parties and exports to third markets.  
The Agreement will be valid for an indefinite period of time and will enter into force on the 
date of signature.  At the time of writing of this report, the LAIA Secretariat had no information on its 
entry into effect. 
 
Additional Protocol 1 of Trade Promotion Agreement 17 (Argentina-Bolivia
) 
 
Within the framework of Trade Promotion Agreement 17, Additional Protocol 1 was signed 
on 22 July 2004.  It targets the development a nd promotion of tourism for which Argentina and 
Bolivia propose a broad programme  of cooperation; development of  investment in the sector; 
facilitation of relations between Ar gentine and Bolivian entrepreneurs, exchange of experience in 
coordinating production lines to enhance competiti veness;  and any other areas involving tourism 
integration.  
Both Parties have also agreed to cooperat e in tourism promotion and expansion efforts 
developed by each country in the other's territory, an d in joint activities in area s of mutual interest in 
respect of third countries.  They have also decide d to exchange information and market research and 
to promote information campaigns in  areas covered by this Protocol. 
 
In addition, the Parties have agreed to establish mechanisms to enabling periodic exchanges 
of teachers, technical staff and experts in any di sciplines concerned with the technical, economic, and 
sociocultural aspects of tourism, involving provin ces, departments, municipalities, universities, and 
other public and private institutions.   WT/COMTD/59 
 Page 29 
 
  The Parties have also agreed to exchange information on plans and programmes for tourism 
development prepared by the competent agencies, as  well as the results and experiences obtained in 
this field, particularly those referring or rela ted to integration of binational tourism supply. 
 
To achieve the objectives of this Additional Prot ocol, both Parties agree to establish a tourism 
commission coordinated by the ministries of external relations and composed of representatives of the 
Tourism Department of Argentina and the Vice Mini stry of Tourism of Bolivia.  This Commission 
may invite representatives of private organizations or public institutions that the Parties consider 
relevant for the development of specific projects.  
Additional Protocol 2 of Trade Promotion Agreement 17 (Argentina-Bolivia
) 
 
Through Additional Protocol 2 of AAP.PC 17, signed on 22 July 2004, Argentina and 
Bolivia, mindful of the common interest in prom oting and stimulating scientific and technological 
progress, undertook to facilitate and support joint initiatives to promote scientific and technical 
cooperation and innovation. 
 
To that end, the Parties proposed to execute  scientific cooperation projects and joint activities 
designed to strengthen their national innovation syst ems.  Cooperation in these areas may take the 
form, inter alia , of technology transfers and exchanges of  information;  joint research and/or 
development programmes;  scholar ship and internship programmes;   exchange of equipment and 
materials;  and establishment of research instituti ons, laboratories, or advanced training centres. 
Project execution could involve public sector or ganizations and agencies, universities, scientific 
research organizations, non-governme ntal organizations, and where necessary, private entities.  These 
actions include mass dissemination of science and technological progress.  
To achieve the objectives of this Additiona l Protocol, the Parties will jointly establish 
programmes specifying the objectives, targets, financ ial and technical resources, working timetables, 
and areas in which the projects will be executed.  
Access by third countries or international orga nizations to the benefits of cooperation and 
their participation in projects shall require the fo rmal prior agreement of the Parties under the terms 
established by them in each individual case. 
 
The Protocol emphasizes special areas of interest, including management of science, 
technology, and innovation;  energy;  informa tion and communication technologies;  biotechnology; 
environmental research;  sustainable use of natural resources;  health;  and mining.  
It also covers standardization, metrology, and industrial quality; research in agricultural 
technologies;  management of micro-, small-, and medi um-sized enterprises;  tourism;  and transport. 
 
The Parties have decided to establish a Scientif ic and Technological Commission to provide a 
permanent mechanism for programming, execution, and assessment.  
Additional Protocol 3 of Trade Promotion Agreement 17 (Argentina-Bolivia
) 
 
Through Additional Protocol 3 of AAP PC 17, si gned on 22 July 2004, Argentina and Bolivia 
agreed that any sanitary or phyto sanitary measures they adopt will be harmonized, based on the rules, 
guidelines, and recommendations of the competent inte rnational organizations.  To that end, it has 
been agreed to ensure that any sanitary or phyt osanitary measures adopted are supported by scientific 
principles;  will be maintained only when justified;   and are based on a risk assessment appropriate to 
the circumstances.  WT/COMTD/59 
Page 30  
 
  It is also affirmed that sanitary and phyto sanitary measures shall not constitute a disguised 
restriction on bilateral trade.  
With this instrument the Parties acknowledge  the regionalization criterion established in 
Article 6 of the WTO SPS Agreement, and shall re cognize pest- or disease-free areas and areas of low 
pest or disease prevalence of the other Party,  reflecting the acknowledgement by the competent 
international organizations, and in particular, th e World Organization for Animal Health (OIE) and 
the International Plant Protection Convention (IPPC).  
The Parties agreed to establish a Sanitary a nd Phytosanitary Committee to coordinate and 
apply the provisions of this Additional Protocol , ensure fulfilment of its objectives, facilitate 
consultations or negotiations on specific sanitary a nd phytosanitary problems and issue the relevant 
recommendations.  
Bilateral Agreement on Cooperation and Mutual  Assistance in Customs Matters between 
Governments of the Republic of Chile and the Republic of Peru  
(AAP.PC 18 of 17 December 2003 ) 
 
The overall purpose of this Agreement is for th e Parties, through their respective customs 
authorities, to be required to provide cooperation a nd mutual assistance for adequate application of 
customs legislation with a view to the preventi on, investigation, and punishment of customs 
violations, exchange of information, and in matte rs related to Chapter IV on Origin of Economic 
Complementarity Agreement 38, Chile-Peru, and mo re particularly Annex 3 thereto on Rules of 
Origin.  
To that end, and among other matters, the Agre ement provides that the customs authorities, on 
their own initiative or by request or other communi cation acceptable to the Contracting Parties, shall 
provide information and shall, ex officio, or by written request, provide greater cooperation and 
mutual technical assistance dir ectly related to movements of pe rsons, goods, or means of transport 
within or outside territorial zones, and applicati on of customs control legislation and documentation. 
 
Framework Agreement on Regional Energy  Complementarity between MERCOSUR
 
States Parties and Colombia, Chile, Ecuador, and Venezuela  
(AAP PC 19 of 9 December 2005 ) 
 
The Agreement is based on the need to contribut e to progress in regional energy integration in 
the area of energy production, transport, distribution,  and marketing systems in the States Parties, to 
ensure energy supplies and establish conditions to  minimize transaction costs in connection with 
energy trade between these countries.  
To that end, the Agreement established that  the Parties will take steps to implement 
institutional, regulatory, and technical coordination of national activities in the area of infrastructure 
works and projects to permit trade in energy. 
 
C.2 Agreements concluded under Article 14 of the 1980 Treaty of Montevideo 
Second Additional Protocol – Agreem ent on International Land Transport
, 
Violations, and Penalties (Argentina, Bolivia, Brazil, Chile , 
Paraguay, Peru, and Uruguay) (AAP/14TM 3.2 ) 
  WT/COMTD/59 
 Page 31 
 
  Through the signing of this Additional Protocol on 16 February 2005, the Parties adopted new 
rules on violations and penalties, entailing a lapse of  the first Additional Protocol to the Agreement on 
International Land Transport.  
Fourth Additional Protocol, Agre ement on Road Passenger Transport
 
Between Tacna and Arica (AAP/14TM 3.4 ) 
 
 The Fourth Additional Protocol signed on 10 December 2004 aims to regulate collective 
passenger transport by road between the towns of Ar ica and Tacna;  between the Arica airport and the 
town of Tacna;  between the Tacna airport and the to wn of Arica;  and between both airports.  To that 
end, general provisions and rul es on modes of transport are estab lished together with operating 
conditions;  permits;  terminals;  vehicle identification;  etc. 
 D. A
GREEMENTS ON RENEGOTIATION OF CONCESSIONS GRANTED DURING THE PERIOD 
1962-1980  (ANNEX 3) 
D.1 Extensions 
 The Additional Protocols signed durin g the period covered by this report4, corresponding to 
this type of Agreement, refer to the extension of tariff preferences.  These extensions are short-term 
(to 30 March 2006) to maintain the existing trade arrangements pending the entry into force of 
ECA 58 signed by Peru with the MERCOSUR countri es.  Annex 3 gives details of extensions of 
Additional Protocols for each Agreement.  D.2 Lapsed Historic Heritage Renegotiation Agreements 
By virtue of the signing of Economic Complementarity Agreement 59 (MERCOSUR–
Colombia/Ecuador/Venezuela) the customs pref erences and related rules under the following 
agreements become inoperative:  APR 18 (Col ombia–Paraguay), APR 21 (Paraguay–Venezuela), 
APR 23 (Colombia–Uruguay), and APR 25 (Uruguay–Ven ezuela).  However, the provisions of these 
agreements that are not inconsistent with ECA 59 or  that relate to matters not included therein shall 
remain in effect.  E. A
GREEMENTS CONCLUDED WITH NON-LAIA  LATIN -AMERICAN COUNTRIES (ARTICLE 25 OF 
THE 1980  TREATY OF MONTEVIDEO ) (ANNEX  6) 
E.1 Additional protocols 
The amendments introduced into the Agreements  concluded pursuant to Article 25 relate to 
the following Additional Protocols:  
Colombia–Panama (AAP/A25TM/29)
 
 
Second Additional Protocol (Second Amending Protocol)  
(15 February 2005)  
  Through this Amending Protocol, the Parties, with the object of expanding trade between the 
two countries, agree to replace Annexes II and III of  the Agreement signed on 9 June 1993 to improve 
access for their exports through deepening or addition of tariff preferences.  They also stressed the 
importance of continuing the negotiating process. 
 
                                                     
 
4 Historic Heritage Renegotiation Agreements, APR 20 (Paraguay-Peru) and APR 33 (Peru-Uruguay). 
 WT/COMTD/59 
Page 32  
 
  To that end, the list of products appended to this legal instrument w as amended and expanded.  
Both Colombia and Panama included 232 items in their respective market opening programmes, with 
tariff preferences ranging from 50 per cent to 100 per cen t of the MFN levies.  In addition, total relief 
was granted for some items already included in th e scope of products covered by the Agreement. 
 
However, market opening under this instrument  is still limited, targeting selected goods of 
special interest to Colombia and Panama.  
E.2 New agreements concluded 
Partial-Scope Economic Complementarity Ag reement 41 signed pursuant to Article 25
 
of the 1980 Treaty of Montevideo between the Federative Republic  
of Brazil and the Republic of Suriname for the Concession  
of Tariff Preferences for Trade in Rice  
  This Agreement establishes that Brazil's impor ts of certain types of rice from Suriname, 
within an annual quota of 10,000 tonnes, will be fr ee of customs duties and any other charges having 
equivalent effects, whether of a fiscal, monetary , foreign exchange or ot her nature, which affect 
imports.  It also specifies that this provision does not apply to taxes and similar charges for services. 
  The types of rice benefiting from such openings are unhusked non-parboiled rice (NCM 
1006.10.92), non-parboiled husked rice (NCM 1006.20. 20) and non-parboiled husked, polished rice 
(NCM 1006.30.21). 
  Such goods will also be subject to trade wit hout restrictions other than those required to 
guarantee their characteristics and compliance with in spection practices, trademarks, etc., applied in 
accordance with this Agreement. 
 
 In addition, the qualities of rice specified in the Agreement shall be subject to the 
phytosanitary defence and control regime estab lished by the competent national authorities. 
  Certificates of origin shall be adapted to the model adopted under the LAIA General Regime 
of Origin. 
 
III. EVOLUTION OF TRADE 
Foreign trade
 
 
The three-year period studied (2003-2005) coin cides with a recovery in regional economic 
growth, ending the period of instability known as "the lost half decade" (1998-2002).  After resuming 
positive growth rates in 2003, overall GDP for LAIA  member countries increased by 5.7 per cent in 
2004 and 4.3 per cent in 2005.  
Regional performance benefited from a number of factors, including in particular the 
favourable international economic context characteriz ed by expansion in GDP and in world trade; 
high commodity prices;  and historic lows in international interest rates. 
 
An analysis of growth in the different countries reveals an unusual fact for the region, which, 
at the same time, highlights its current positive ph ase.  All the LAIA economies recorded their second 
consecutive year of expansion, a feat not ev en achieved during the expansion of the 1990s. 
 
Where external trade is concerned, after the setbacks of 2001-2002, the upturn in both overall 
exports and imports resumed, reaching unprecedented highs in 2005.  WT/COMTD/59 
 Page 33 
 
   
Overall exports for all LAIA member countries exceeded US$516 billion, after achieving 
growth levels of 23.3 per cent and 20.4 per cent in 2004 and 2005, respectively.  
 
The expansion in exports exte nded to all 12 countries.  Overall sales during the period for 
Peru (94.3 per cent), Venezuela (92.5 per cent) , and Chile (92.2 per cent) were outstandingly 
dynamic.  However, the greatest contribution to th e increase was made by Mexico and Brazil, which 
contributed 28.7 per cent and 26.9 pe r cent of the total, respectively. 
 
The economic recovery also made it possible for the region's overall imports to increase 
23.4 per cent in 2004 and by 18.5 per cent in 2005, exceeding US$440 billion in the latter year. 
 
Countries recording the biggest increase in external purchases we re those that endured deep 
crises in the recent past and recovered in the peri od under consideration:  Venezuela (167 per cent), 
Argentina (107.1 per cent), and Uruguay (77.1 per cen t).  However, the greatest contributors to the 
overall increase in regional imports we re Mexico and Brazil, with 36 per cent and 19.3 per cent of the 
total, respectively. 
 
A breakdown of the aforementioned trade flow s by destination and origin shows that 
intraregional trade was more dynamic than extraregi onal trade.  While exports to the region increased 
by 77.6 per cent during the period considered, those to the rest of the world grew by 44.4 per cent. 
Imports, on the other hand, increased by 74.7 per cent and 41.5 per cent, respectively. 
 
The dynamic trend in trade with the rest of the world was mainly determined by Mexico's 
trade, which accounted for 32.7 per cent of exports and 43.4 per cent of imports.  Intraregional trade
 
 
Trade between LAIA member countries resumed the upward trend interrupted in 1997, and 
recorded cumulative growth of 77.6 per cent dur ing the period under consideration (2003-2005). 
Accordingly, an unprecedented high of US$72 billion , measured from the export side, was achieved. 
 
INTRA-LAIA IMPORTS 
1990-2005 
Millions of dollars 
 
 
80,000 
 
60,000  
40,000 
 20,000 
 
 
The meaning of the recent expansion is clear, cons idering that it is necessary to go back to the 
early 1990s to find similar figures (61 per cent for the two-year period 1991-1992).  
With the exception of Cuba (-21.7 per cent), intraregional exports expanded in all member 
countries and sales by Mexico (152.6 per cent), Peru  (129.7 per cent), and Colombia (103.4 per cent) WT/COMTD/59 
Page 34  
 
  were outstandingly dynamic.  However, Brazil and Argentina made the biggest contributions to the 
total increase, 39.7 per cent and 13.8 per cent, respectively.  
Purchases in the region by all LAIA countries expanded by more than 40 per cent.  The most 
dynamic intraregional import figures were achie ved by Venezuela (205.2 per cent), Argentina 
(137.6 per cent), and Cuba (102.4 per cent).  Th e countries whose purchases contributed most to the 
overall increase were Argentina (22.3 per cent), Ven ezuela (15 per cent), Chile (12.6 per cent), and 
Mexico (12.2 per cent).  
A breakdown of the information by channels of commerce shows that the most dynamic 
performance for the period considered was achieved by the Andean Community–Mexico 
(142.1 per cent), Andean Community–MERCOSUR (113.7 per cent), and Cuba–Rest of LAIA (108.5 per cent).  
The Intra–MERCOSUR channel was the most impo rtant in terms of values marketed during 
the entire three-year period analysed, recording a sh are of approximately 30 per cent of intraregional 
trade.  Lower down the scale are Andean Community–MERCOSUR (15 per cent), MERCOSUR–Chile (14.9 per cent) and intra-Andean Community(12.5 per cent).   WT/COMTD/59 
 Page 35 
 
  LAIA – TOTAL EXPORTS BY COUNTRY, BY DESTINATION  
LAIA – REST OF WORLD, 2003, 2004, 2005  
(Millions of US dollars, f.o.b. and percentages) 
 
2003 2004 2005 Change 2005/2003 
COUNTRY LAIA Rest of 
world Total LAIA Rest of 
world Total LAIA Rest of 
world Total LAIA Rest of 
world Total 
Argentina 11,161 18,778 29,939 13,450 21,099 34,549 15,511 24,502 40,013 39.0 30.5 33.6 
Bolivia 1,070 607 1,677 1,456 809 2,265 1,831 967 2,798 71.1 59.3 66.8 
Brazil 12,920 60,164 73,084 19,699 76,776 96,475 25,429 92,879 118,308 96.8 54.4 61.9 
Chile 3,452 16,625 20,077 4,877 26,030 30,907 6,078 32,519 38,597 76.1 95.6 92.2 
Colombia 2,630 10,462 13,092 4,235 12,495 16,730 5,350 15,837 21,187 103.4 51.4 61.8 
Cuba 240 1,437 1,677 301 1,880 2,181 188 1,807 1,995 -21.7 25.7 19.0 
Ecuador 1,271 4,952 6,223 1,369 6,384 7,753 1,945 7,880 9,825 53.0 59.1 57.9 
Mexico 2,394 163,016 165,410 4,215 183,784 187,999 6,047 207,664 213,711 152.6 27.4 29.2 
Paraguay 800 441 1,241 960 667 1,627 1,042 646 1,688 30.3 46.5 36.0 
Peru 1,335 7,414 8,749 2,061 10,373 12,434 3,067 13,934 17,001 129.7 87.9 94.3 
Uruguay 869 1,337 2,206 1,027 1,904 2,931 1,135 2,270 3,405 30.6 69.8 54.4 
Venezuela 2,458 22,516 24,974 4,108 29,518 33,626 4,498 43,588 48,086 83.0 93.6 92.5 
TOTAL 40,600 307,749 348,349 57,758 371,719 429,477 72,121 444,493 516,614 77.6 44.4 48.3 
 
Source:  Data provided by member countries 
Prepared by the LAIA Secretariat N.B.:  2005 data were estimated for some countries. 
 
LAIA – TOTAL EXPORTS BY COUNTRY, BY ORIGIN  
LAIA – REST OF WORLD 2003, 2004, 2005  
(Millions of US dollars, c.i.f. and percentages) 
 
2003 2004 2005 Change 2005/2003 
COUNTRY LAIA Rest of 
world Total LAIA Rest of 
world Total LAIA Rest of 
world Total LAIA Rest of 
world Total 
Argentina 5,395 8,456 13,851 9,682 12,763 22,445 12,821 15,871 28,692 137.6 87.7 107.1 
Bolivia 983 713 1,696 1,161 727 1,888 1,408 935 2,343 43.2 31.1 38.1 
Brazil 8,751 42,073 50,824 10,721 55,733 66,454 12,357 65,460 77,817 41.2 55.6 53.1 
Chile 7,262 10,114 17,376 9,068 13,293 22,361 11,463 18,370 29,833 57.8 81.6 71.7 
Colombia 3,550 10,307 13,857 4,713 12,032 16,745 6,263 14,941 21,204 76.4 45.0 53.0 
Cuba 1,249 3,413 4,662 1,819 3,730 5,549 2,528 4,908 7,436 102.4 43.8 59.5 
Ecuador 2,654 3,880 6,534 3,355 4,518 7,873 4,001 5,608 9,609 50.8 44.5 47.1 
Mexico (2) 6,529 164,462 170,991 9,025 187,785 196,810 10,598 210,672 221,270 62.3 28.1 29.4 
Paraguay 1,210 1,018 2,228 1,680 1,418 3,098 1,776 1,938 3,714 46.8 90.4 66.7 
Peru 3,408 5,006 8,414 4,392 5,709 10,101 5,183 7,319 12,502 52.1 46.2 48.6 
Uruguay 1,120 1,070 2,190 1,488 1,630 3,118 2,008 1,871 3,879 79.3 74.9 77.1 
Venezuela 
(2) 2,426 5,932 8,358 4,681 10,016 14,697 7,403 14,910 22,313 205.2 151.3 167.0 
TOTAL 44,537 256,444 300,981 61,785 309,354 371,139 77,809 362,803 440,612 74.7 41.5 46.4 
 
Source:  Data provided by member countries Prepared by the LAIA Secretariat 
N.B. (1):  2005 data were estimated for some countries. 
 WT/COMTD/59 
Page 36  
 
  LAIA - STRUCTURE OF INTRAREGIONAL EXPORTS BY CHANNEL OF COMMERCE
 
2003, 2004, 2005  
(Millions of US dollars, f.o.b. and percentages) 
 
Millions of US Dollars % LAIA total % growth CIRCUIT 2003 2004 2005 2003 2004 2005 2005/2003 
Intra-MERCOSUR 12,725 17,331 21,085 31.3 30.0 29.2 65.7 
Andean Community-
MERCOSUR 5,076 7,934 10,847 12.5 13.7 15.0 113.7 
MERCOSUR-CHILE 6,730 8,428 10,728 16.6 14.6 14.9 59.4 
Intra-Andean Community 5,067 7,598 8,984 12.5 13.2 12.5 77.3 
MERCOSUR-Mexico 4,393 6, 586 6,996 10.8 11.4 9.7 59.3 
Andean Community-
Mexico 2,082 3,524 5,041 5.1 6.1 7.0 142.1 
Andean Community-Chile 2, 072 2,739 3,831 5.1 4.7 5.3 84.9 
Cuba-Rest of LAIA 1,132 1,868 2,360 2.8 3.2 3.3 108.5 
Chile-Mexico 1,323 1,750 2,248 3.3 3.0 3.1 69.9 
TOTAL LAIA 40,600 57,758 72,120 100.0 100.0 100.0 77.6 
 
Source:  Data provided by member countries 
Prepared by the LAIA Secretariat  
IV. RESOLUTIONS OF THE THIRTEENTH MEETING OF THE LAIA COUNCIL OF 
MINISTERS (18 OCTOBER 2004) 
RESOLUTION 59 (XIII) OF THE LAIA COUNCIL OF MINISTERS  
(18 October 2004)  
 
BASIS  FOR  A PROGRAMME  FOR  THE  GRADUAL  ESTABLISHMENT  OF 
A FREE  TRADE  AREA  WITHIN  THE  LAIA  WITH  A VIEW  TO 
ACHIEVING  THE  OBJECTIVE  SET  OUT  IN THE 
1980  TREATY  OF MONTEVIDEO 
 THE COUNCIL OF MINISTERS, 
 
 HAVING REGARD TO the 1980 Treaty of Montevideo.   WHEREAS In compliance with Article One of Resolution 55 (XII), the Committee of 
Representatives submitted a report providing the basis for a programme for the gradual establishment 
of a free trade area within the LAIA with a view to achieving the objective set out in the 1980 Treaty 
of Montevideo,  
HEREBY RESOLVES
: 
 
ONE.  To approve the basis for a programme fo r the gradual establishment of a free trade area 
within the LAIA, which shall be appended to and sha ll constitute an integral part of this Resolution. 
 
TWO.  To assign the Committee of Represen tatives the task of adopting measures to 
implement a programme for the gradual establishment of a free trade area within the LAIA, on the basis provided for in this Resolution. 
_______________ 
  WT/COMTD/59 
 Page 37 
 
  BASIS OF A PROGRAMME FOR THE GRADUAL ESTABLISHMENT OF  
A FREE TRADE AREA WITHIN THE LAIA WITH A VIEW TO  
ACHIEVING THE OBJECTIVE SET OUT IN  
THE 1980 TREATY OF MONTEVIDEO  
 
I. BACKGROUND 
1. Article One of Resolution 55 (XII) of the Council of Ministers assigns the Committee of 
Representatives the task of adopting the necessar y measures to facilitate and stimulate trade 
negotiations between member countries and to su bmit a report to the next Council of Ministers 
containing, inter alia , the basis of a programme for the gradual establishment of a free trade area 
within the LAIA with a view to achieving the objectiv e set out in the Treaty, i.e., the establishment of 
a Latin American common market. 
2. This mandate is derived from the study of tr ends in the integration process in the LAIA 
framework, in its bilateral, subregional, and regiona l dimensions, and proposals to strengthen the role 
of the Association in the coming decade, su bmitted in December 2001 by the Committee of 
Representatives pursuant to Resolution 54 (XI) of the Council of Ministers. 
3. The study was the outcome of a broad, profo und process of analysis carried out by the 
Committee with the participation of personalities and experts in the region.  Apart from highlighting 
the progress made in the process of integration in the framework of the 1980 Treaty of Montevideo, 
emphasizing its effectiveness and the commitment to achieve its objectives, the report's most 
important conclusion is that, in or der to make progress towards achieving the objective of the Treaty, 
the Association should concentrate and focus its efforts on supporting member countries in their 
actions to promote a deepening and convergence of the agreements signed.  It also emphasizes the 
importance of fine-tuning the regional regulatory frame work and the fact that member countries have 
been including in their agreemen ts matters extending beyond the commercial framework, aimed at 
securing an expanded focus for the re gional integration process, and poin ts out that it is important for 
the Association to consider ma tters included among the priorities established by the countries. 
4. In addition to extraregional multilateral nego tiations, member countries continue to use 
bilateral or plurilateral channels with a view to  making further progress in their trade relations, in 
accordance with the scheme adopted by the LAIA in the framework of the 1980 Treaty of 
Montevideo. During 2002, 2003, and 2004, subs tantial qualitative and quantitative progress was 
recorded in the trade integration process and the following instruments were signed : 
 - Free Trade Agreement (FTA) between MERCOSUR and Peru; 
 
 - FTA – Colombia, Ecuador, and Venezuela with MERCOSUR;   - FTA – Mexico and Uruguay;  
 - Economic Complementarity Agreement between Mexico and MERCOSUR with a 
view to a free trade agreement; 
  - Economic Complementarity Agreemen t between Brazil and Mexico granting 
reciprocal preferences;  
 
 - Economic Complementarity Agreemen t between Mexico and MERCOSUR, in 
respect of free trade in the automotive sector; 
  - Economic Complementarity Agreemen t between Argentina and Uruguay, on 
automotive sector products. WT/COMTD/59 
Page 38  
 
   
5. During the same period, 94 Additional Protocols to various agreements in force were also 
signed, including: 
 - Protocol consolidating the decontrol of  products in agro-industry and the chemical 
and automotive industries in the framework  of ECA 35 by Argentina and Brazil with 
Chile; 
  - Protocol expanding and consolidating pr eferences between Cuba and Brazil in the 
framework of ECA 43; 
 
 - Protocol expanding and consolidating pref erences between Cuba and Argentina in the 
framework of ECA 45; 
  - Protocol on new preferences for Bolivia in ECA 36 by Argentina, Brazil, Paraguay, 
and Uruguay. 
 
6. As a result of the process, in 2007, 87.1 pe r cent of intraregional trade will be fully 
liberalized.  Of the 66 possible bilateral re lationships, 49 involve free trade agreements. 
7. All agreements signed by member countries to date have enabled substantial progress to be 
made in building integration processes in the regi on.  Lines of action must now be established to 
develop and consolidate the free tr ade area, identifying the components to be incorporated and the 
topics requiring priority attention . 
II. THE WAY FORWARD FOR DEVELOPMENT AND CONSOLIDATION OF THE 
FREE TRADE AREA 
8. In order to make further progress towards the objective of developing and consolidating the 
planned free trade area, the current negotiating stra tegy should continue with the deepening of free 
trade agreements already signed and promotion of  the negotiations in progress or those to be 
undertaken for the conclusion of free trade agreemen ts between countries that have fixed preference 
agreements.  Harmonization and incorp oration should also be promoted, at the most appropriate level, 
of the disciplines and regulations required for free trade and matters that supplement and support the 
free trade area. 
9. This strategy is made even more feasible and dynamic by the recent signing of agreements 
between the countries of the Andean Community and MERCOSUR, in addition to the existing free 
trade agreements, and considering that it is only be tween certain countries that free trade agreements 
have not been concluded, and that all member c ountries have signed reciprocal agreements granting 
access to their respective market s under preferential conditions. 
10. It must be borne in mind with agreements which do not contain specific rules or which refer 
to domestic legislation that the 12 LAIA countries ar e Members of the WTO and their foreign trade is 
therefore subject to the rules approved in that frame work.  Accordingly, there is a minimum basis for 
harmonization in all disciplines regulated by the WTO.  WT/COMTD/59 
 Page 39 
 
  III. COMPONENTS OF THE FREE TRADE AREA IN THE LAIA FRAMEWORK 
11. The gradual development of the free trade area in the LAIA will comply with the timetables 
for liberalization, the legislativ e frameworks adopted under the various  agreements, and the principles 
of pluralism, convergence, flexibility, and diffe rential treatment, as well as compatibility with the 
current agreements, implementation through the m echanisms of the 1980 Treaty of Montevideo, and 
coexistence with extraregional negotiations of the member countries. 
12. The components to be considered for developmen t of the free trade area are:  market access, 
common rules and disciplines, support to relativ ely less economically developed countries, and 
complementary issues. 
Market access  
 
13. Broad, universal access to the markets is required under convergence- oriented timescales, 
modalities, and mechanisms agreed by  member countries on a bilateral, plurilateral, or regional basis. 
To that end, one possible path consists in conve rting current fixed preference agreements into free 
trade agreements through negotiation between the parties involved or through negotiated accession to 
an existing agreement. 
Rules and disciplines  
 14. Common rules and disciplines are required at the most appropriate level, governing aspects 
that facilitate and stimulate trade.  To that end, a gradual process of adaptation, harmonization, and/or 
mutual recognition must be undertaken, as appropria te, with the establishment of specific timetables  
for each case.  This process will reflect the obj ectives and special features of each free trade 
agreement and other intraregional and extraregi onal agreements, as well as  each country's national 
legislation. 
15. The rules and disciplines referr ed to in paragraph 8 are:  origin, safeguards, non-tariff 
restrictions, dispute settlement, sanitary and phytosan itary measures, standards, technical regulations 
and conformity assessment, trade protection (a nti-dumping duties and countervailing measures), 
customs valuation, special customs regimes (tempor ary admission with inward processing, drawback 
and free zones) and competition policies.  Trade in services, intellectual property, protection of 
traditional knowledge, investments, double taxation,  and government procurement should also be 
incorporated. 
Support for relatively less economically developed countries
 
 
16. In light of the asymmetries existing in the re gion, the support system for relatively less 
economically developed countries should be strengthe ned, stressing its systemic nature, with the aim 
of enhancing the participation of these countries in  intraregional trade flows and facilitating their 
access to the markets of member countries.  Co operation under the support system should be 
intensified to achieve harmonious , balanced development, and to increase the productivity and 
economic competitiveness of the relativel y less economically developed countries. 
Complementary areas  
 17. In accordance with the provisions of the Tr eaty, the study prepared by the Committee 
(ALADI/CR Estudio, 18.12.01) and Council of Ministers Resolutions 54 (XI) and 55 (XII), 
cooperation and coordination must be developed in areas that complement and support the free trade 
area, such as physical integration, digital inte gration, trade finance, productive development, and 
relations with the business, labour, and academic sect ors.  Cooperation and coordination must also be 
promoted to develop specific activities in the soci al, cultural, scientific, and technological fields. WT/COMTD/59 
Page 40  
 
  Physical integration
 
 18. Exchanges of information, coordination, a nd common activities should be supported in the 
area of regional physical integration (transport, en ergy and telecommunications), including the fields 
of infrastructure, logistics, and customs facilitation,  in direct cooperation with initiatives and agencies 
specialized in these areas. 
Digital integration
 
 19. Exchanges of information, coordination and cooperation should be s upported in technical, 
legislative, and promotional aspects of informa tion and communication technologies to facilitate 
digital trade. 
Trade finance
 
 20. Cooperation should be promoted among region al financial institutions and countries to 
establish viable, adequate mechanisms to finan ce regional trade through coordination and specific 
arrangements. 
21. To complement the reciprocal credit and payments agreement, in order to adapt and address 
the new realities of intraregional trade, the groundw ork should be laid for a regional trade guarantee 
system. 
Productive support and development of international trade
 
 
22. Policies should be promoted for productive development among member countries to broaden 
opportunities for economic operators, particularly sm all and medium-sized enterprises, strengthening 
the systemic competitiveness of the economies, providing incentives for production linkages and 
forms of corporate cooperation and complementar ity, promotion of intraregional purchases and 
extraregional exports. 
23. Priority must be given to areas and sectors where joint investment promotion among member 
countries is possible, to raise production standards and enhance competitiveness and trade, with the 
social benefits this approach  entails for our populations. 
Relations with the business, labour, and academic sectors  
 24. Enhanced participation of the business, la bour, and academic sectors in the process of 
integration should be stimulated. 
 
_______________ 
 
  WT/COMTD/59 
 Page 41 
 
  RESOLUTION 60 (XIII)  
 
THE ROLE OF THE LAIA AND ITS ACTION TO DEVELOP AND CONSOLIDATE  
THE REGIONAL INTEGRATION PROCESS  
  THE COUNCIL OF MINISTERS, 
 
 HAVING REGARD TO the 1980 Treaty of Montevideo;  Resolutions 55 and 56 (XII);  the report of the Committee of Representatives on the b asis of a programme for the gradual establishment 
of a free trade area within the LAIA to achieve the objective set out in the Treaty, and the policy 
statement adopted by the Council. 
 
CONSIDERING THAT the significant policy, econom ic, trade, and social changes that have 
occurred on the international scene since the signing  of the 1980 Treaty of Montevideo constitute 
challenges that require the Latin American count ries to make a decisive political commitment to 
deepen and consolidate the process of regional in tegration as a priority instrument to permit 
harmonious, balanced development of our region in the institutional, economic, and social fields; 
  That regional issues, asymmetries, trade im balances with other re gions, and inequitable 
conditions of international ec onomic relations, along with obstacles to access to information, 
knowledge, and technology, require the LAIA to play a more active and proactive role, in its areas of 
responsibility, in providing timely, efficient r esponses to the demands and expectations of our 
countries; 
  That in this connection, the objective set out in the 1980 Treaty of Montevideo of gradually and progressively establishing a Latin American common market remains fully valid;  
 That at the current stage of this process,  the LAIA, as the key institutional framework and 
forum for regional integration, should develop and consolidate its free trade area in accordance with 
the basis for a programme for the gradual establishm ent of a free trade area within the LAIA to 
achieve the objective provided for in the 1980 Treaty of Montevideo, as adopted by this Council;  and 
  That to that end, priorities should be establis hed, the structure of the Secretariat should be 
adapted, and the activities of the Association should  be coordinated with ot her regional organizations, 
 
HEREBY RESOLVES
: 
  ONE.  The LAIA shall stimulate and execute the activities required in the political, technical, 
and administrative areas to intensify and consolidat e regional integration based on the foundations of 
the free trade area and the decisions taken to that end by member countries within the bodies 
established under the Treaty.   TWO.  The Committee shall continue to work on the basis of the guidelines and instructions 
under Resolutions 55 and 56 (XII) in order to est ablish the agenda for the Association, and in 
particular, to strengthen the role of the LAIA as a forum for discussion and consultation, to make the 
necessary budget adjustments and introduce techni cal and administrative improvements to the 
Secretariat, in order to provide increasingly efficient support to member countries.   THREE.  The Committee shall promote identif ication of modalities to permit, through a 
gradual adaptation and harmonization process, adopti on of common rules and disciplines required for 
the development and deepening of the free trade area,  which will include trade in services, intellectual 
property, protection of traditional knowledge, invest ments, double taxation, government procurement 
and competition policies.  WT/COMTD/59 
Page 42  
 
   FOUR.  The Committee shall continue to take the actions required for the LAIA to become a 
forum for discussion and consultation for member count ries, in matters related to regional integration 
and trade negotiations.   FIVE.  The Committee shall encourage cooperati on, coordination, exchange of information, 
and joint activities among member countries geared to: 
  (a) Physical integration – transport, energy, telecommunications (including logistics) and 
customs facilitation; 
 
 (b) development and optimal use of in formation and communication technologies, 
electronic commerce, and competitive in tegration of our countries into the 
information society; 
  (c) identification and promotion of efficien t regional mechanisms to finance intra and 
extraregional trade and equitable access to in ternational credit, in accordance with the 
economic and financial conditi ons of member countries; 
  (d) progressive resolution of problems derived from existing asymmetries in the LAIA 
framework, for the full integration of relatively less economically developed countries into the free trade area; 
 
 (e) greater participation and commitment by the business, labour, and other sectors of 
society in the integration process.  In par ticular, support for the reactivation and joint 
coordination of the LAIA Business Adviso ry Council and Labour Advisory Council; 
 
 (f) strengthening of productive integration, in  particular, to develop forms of corporate 
complementarity and integrated producti on linkages emphasizing small and medium-
sized enterprises; 
  (g) treatment within the LAIA of cultural,  educational, scientific, and technological 
topics, taking into account those aspects not  addressed by other regional institutions; 
 
 (h) establishment of mechanisms to make it po ssible to establish an academic pillar in the 
Association to address cooperation with ins titutions and centres for research, training, 
and investigation in the area of integration. 
 
 SIX.  The LAIA shall maintain, through its competent bodies, close coordination with the 
different cooperation and regional integration organizations, and pa rticularly with the Andean 
Community and MERCOSUR.  It shall also strengthen its ties with the Rio Group in areas proposed under the 1980 Treaty of Montevideo.   SEVEN.  The Secretariat shall continue to c oncentrate its efforts in the following areas and 
functions, taking into account the priorities assigned to  these matters in relation to the free trade area: 
 
 Technical and legal assistance to member countries for: 
 
(a) Trade negotiations; 
(b) signing, recording, and certification of agreements; 
(c) administration of agreements; (d) dispute settlement. 
 
 Statistics and trade information;  WT/COMTD/59 
 Page 43 
 
   Research and training; 
 Support system for relatively less ec onomically developed countries; 
 Cooperation management; 
 Public dissemination of information on advantages and achievements of the 
 integration process; 
 Promotion of participation by the business, labour, and academic sectors. 
 
 EIGHT.  The LAIA should adapt its organisati onal structure to the priorities and functions 
required in this new stage.  To that end, ad justments should be made for improved efficiency, 
rationalization of expenditure, and fi nancial sustainability of the Association.  The adjustments should 
include the following factors, inter alia : 
 
 (a) A formula for the definitive resolution of  countries' indebtedness with the LAIA and a 
financing system to ensure  its adequate operation; 
  (b) reformulation of the organic and functi onal structure of the Secretariat including 
review of posts and functions, taking in to account Resolution 255 of the Committee 
of Representatives. 
_______________ 
 WT/COMTD/59 
Page 44  
 
  RESOLUTION 61 (XIII
) 
 
PARTICIPATION OF RELATIVELY LESS ECONOMICALLY DEVELOPED  
COUNTRIES IN THE INTEGRATION PROCESS  
 
 THE COUNCIL OF MINISTERS 
  HAVING REGARD TO Chapter III and Article s 30, 35, and 38 of the 1980 Treaty of 
Montevideo, and the Resolutions of the Council of Ministers in favour of economically less-developed countries. 
 
 WHEREAS integration of relatively less econo mically developed countries into the regional 
development process must be enhanced to contri bute to its harmonious, balanced development, 
through strengthened action to support these countries.  
 CONSIDERING the study entrusted by the Co mmittee of Representatives to the Secretariat 
under Article 1 of Resolution 56 (XII) of the Council of Ministers on the identification of endogenous 
and exogenous factors affecting th e participation of relatively less economically developed countries 
in intraregional trade.   MINDFUL OF the advisability of orienting co operation programmes to improve productivity 
and competitiveness in relatively less economically developed countries; 
 
HEREBY RESOLVES
: 
  ONE.  With a view to increasing the particip ation of relatively less economically developed 
countries in intraregional trade flows by facilita ting their access to member country markets, the 
Committee of Representatives is assigned the t ask of adopting appropriate measures to: 
  - Develop and propose additional mechanisms to the existing ones, to ensure that the 
relatively less economically developed countries are guaranteed preferences on a secure and permanent footing; 
 
 - periodically assess the system of preferential treatment of relatively less economically 
developed countries on the basis of reports from the Secretariat prepared by mandate under Resolution 56 (XII), Article 2, and a dopt measures as indicated in Article 3 of 
that Resolution.  To that end, according to the results of the reports, appropriate 
action will be taken to adapt the mechanisms to the requirements of the relatively less 
economically developed countries in light of  their current and potential exportable 
supply. 
  TWO.  The Committee of Representatives shall be assigned the tasks of promoting cooperative activities among member countries in speci fic areas of intraregional trade, focusing on 
strengthening competitiveness – particularly in r espect of productive factors and the improvement of 
marketing capacity – in the framework of sp ecial cooperation programmes provided for in the 
1980 Treaty of Montevideo.   These actions shall be aimed at supporting the efforts of each relatively less economically 
developed country to overcome barriers generate d by different endogenous  and exogenous factors 
having negative repercussions on th e participation of relatively less economically developed countries 
in intraregional trade.   WT/COMTD/59 
 Page 45 
 
   The support referred to in the preceding paragra ph shall also take account of activities related 
to systems to promote and develop exports, trade in telligence services, and building of country images 
for key export products.   THREE.  The Secretariat shall be instructed to  take the following actions in the framework of 
the support system for relatively less economically developed countries: 
 
(a) Coordinate with relatively less economica lly developed countries so that the 
cooperation provided to them annually by  the LAIA is coordinated with the 
international cooperation systems targeting these countries; 
(b) implement a project classification system that establishes specific criteria and 
requirements and promotes enhanced private sector participation, particularly from 
small and medium-sized enterprises;  and 
(c) present to the Committee of Representatives a proposal to establish mechanisms for 
exchange of information and consultation,  without prejudice to the existing ones, 
targeting specific solutions to address th e trade sensitivities of relatively less 
economically developed countries that may arise in the process of convergence of the 
agreements concluded in the LAIA framework. 
 FOUR.  Assign the Committee of Representatives the task of supporting regional and 
subregional projects and initiatives for physical integration that benefit the relatively less 
economically developed countries, and particularly those related to transport, enabling Bolivia and 
Paraguay, given their status as land-locked count ries, to have access to the markets of the region 
under competitive conditions.  In this connection, priority should be assigned to fine-tuning the 
existing mechanisms in the region or to developing new transport agreements to facilitate free transit 
as well as activities and agreements in the area of telecommunications and energy, and the consolidation thereof.  
 FIVE.  Urge relatively less economi cally developed countries to use, inter alia , the 
integration schemes to which they belong to impl ement measures to cushion the effects of exogenous 
factors and help remove endogenous barriers that limit the development of systemic competitiveness 
in their economies.  
_______________ 
 
 WT/COMTD/59 
Page 46  
 
   
    
 
    
ANNEXES 
 
LIST OF PROTOCOLS ADOPTED DURING THE PERIOD 
FROM 1 JANUARY 2004 TO 31 DECEMBER 2005  WT/COMTD/59 
 Page 47 
 
  ANNEX 1  
 
ECONOMIC COMPLEMENTARITY AGREEMENTS  
1980 Treaty of Montevideo, Article 11  
 "Economic complementarity agreements ar e 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 sp ecific rules to be established for that purpose." 
Resolution 2 of the Council of Ministers, Article 7  
 "Economic complementarity agreements ar e 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 s ubject to the following rules: 
They may be based on tariff reduction and on industrial programming; 
They may cover one or a number of sectors; 
They shall contain a programme of tariff reduc tion for the sector or sectors concerned, and 
may provide for the elimination or reduction of non-tariff restrictions; 
They shall be valid for a minimum period of three years and a maximum period to be 
determined in each agreement; 
They shall include measures to ensure the ba lanced and harmonious application of their 
benefits to participating countries, on the basis of the three country categories, and procedures 
for the evaluation and adjustment of imbalances;  and 
They may include, inter alia , provisions in regard to: 
 (i) harmonization of treatment applied to  imports from third countries in respect 
of products covered by the agreement,  and likewise raw materials and parts 
used in their manufacture; 
 (ii) coordination of government program mes and incentives designed to facilitate 
economic complementarity, and harmoniza tion of treatment applied to capital 
and services of foreign origin linked to the products covered by the agreement; 
 (iii) regulations designed to prevent unfair trade practices; 
 (iv) regulation of counter-trade;  and WT/COMTD/59 
Page 48  
 
   (v) definition of other measures for harm onization of instruments and policies, 
and likewise the establishment of complementary measures in the areas of technological development, financing, physical infrastructure and any other 
areas deemed relevant. 
  WT/COMTD/59 
 Page 49 
 
  ECONOMIC COMPLEMENTARITY AGREEMENTS 
 
Agreements and Additional Protocols Adopted During the Period from  
1 January 2004 to 31 December 2005  
 
Agreement or 
Protocol No. Signatory countries Subject Date adopted 
ECA 2.62 BR/UR Automotive sector regulations 23.12.2005 
ECA 2.63 BR/UR Extension of validity of Agreement 23.12.2005 
ECA 8.7 ME/PE Extension of validity of Agreement 21.11.2005 
ECA 14.32 AR/BR Automotive Agreement  - Extension 29.12.2005 ECA 18.44 AR/BR/PA/UR Amended rules of origin 23.02.2005 
ECA 18.47 AR/BR/PA/UR Incorporati on of Decision CMC29/03 17.02.2004 
ECA 18.48 AR/BR/PA/UR Incorporati on of Decision CMC34/03 17.02.2004 
ECA 22.14 BO/CH Incorporation of Customs Cooperation Agreement 14.06.2004 
ECA 28 EC/UR Terminated by en try into force of ECA 59  
ECA 30 EC/PA Terminated by en try into force of ECA 59  
ECA 32.4 CH/EC Product withdrawn from list of exceptions 25.06.2004 
ECA 32.5 CH/EC Incorporation of Customs Cooperation Agreement  19.10.2004 
ECA 33.6 CO/ME/VE Incorporation of automotive sector in Tariff Reduction 
Programme 03.08.2005 
ECA 33.7 CO/ME/VE Elimination of various rules of origin 03.08.2005 
ECA 35.39 AR/BR/CH/PA/UR Incorporation of Agreement on Licensing of 
Radiocommunication Stations  08.03.2004 
ECA 35.40 AR/BR/CH/PA/UR Brazil granted 100% pr eference on motor vehicles by Chile 15.09.2005 
ECA 35.41 AR/BR/CH/PA/UR Incorporation of pr eferences between Paraguay and Chile 20.09.2005 
ECA 35.42 AR/BR/CH/PA/UR Amended Observ ation on fine table wines  26.09.2005 
ECA 35.43 AR/BR/CH/PA/UR Incorporation of pr eferences between Uruguay and Chile 30.09.2005 
ECA 35.44 AR/BR/CH/PA/UR Incorporation of pref erences between Argentina and Chile 26.09.2005 
ECA 35.45 AR/BR/CH/PA/UR Modificati on of Drawback Regime 26.09.2005 
ECA 36.19 AR/BO/BR/PA/UR Incorporation or modification of preferences 23.07.2004 
ECA 36.20 AR/BO/BR/PA/UR Incorporation of A dditional Protocol on Physical Integration 
as an Annex to the Agreement 07.12.2004 
ECA 36.21 AR/BO/BR/PA/UR Incorporation or modification of preferences 30.09.2004 
ECA 36.22 AR/BO/BR/PA/UR Incorporation of Agreement on Integrated Border Control 30.12.2004 
ECA 36.23 AR/BO/BR/PA/UR Modificati on of Drawback Regime 28.12.2005 
ECA 38.2 CH/PE Acceleration of Trad e Liberalization Pr ogramme 17.02.2005 
ECA 39 BR/CO/EC/PE/VE Terminated by en try into force of ECA No. 58:  at 
31.12.2005 only the preferences  agreed between brazil and 
Peru remained in force  
ECA 39.33 BR/PE Extension of validity of Agreement and preferences agreed 
between brazil and Peru 22.12.2005 
ECA 43.4 BR/CU Inclusion and deepening of preferences 10.12.2004 
ECA 43.5 BR/CU Dispute Se ttlement System 10.12.2004 
ECA 45.5 AR/CU Full-text replacement of annexes I and II to the agreement 
and automatic extension, for successive one-year periods, of 
its validity 30.09.2003 
ECA 45.6 AR/CU Inclusion of preferences 01.07.2004 
ECA 45.7 AR/CU Technical standa rds and regulations 01.07.2004 
ECA 45.8 AR/CU Dispute Se ttlement System 01.07.2004 
ECA 48.6 AR/CO/EC/PE/VE Terminated by en try into force of ECA No. 59:  at 
31.12.2005 only the preferences agreed between Argentina 
and Peru remained in force  
ECA 48.23 AR/PE Extension of validity of the Agreement and the preferences 
agreed between Argentina and Peru 26.10.2005 
ECA 55 IV.1 AR/BR/ME/PA/UR Amendment of  Appendix IV on automotive sector trade 
between Uruguay and Mexico 26.06.2004 
ECA 55 II.1 AR/BR/ME/PA/UR Amendment of S upplementary Note No. 1 to Appendix II of 
the Agreement on "Automotive Sector Trade between Brazil 
and Mexico" 18.05.2005 
ECA 58 AR/BR/PA/PE/UR Free Trade Agreement  30.11.2005 
ECA 58.1 AR/BR/PA/PE/UR Disput e Settlement System 30.11.2005 
ECA 58.2 AR/BR/PA/PE/UR Brazil and Peru:  establishment of regime for products 
originating from free zones or special customs areas 30.11.2005 
ECA 60 ME/UR Free Trade Agreement 15.11.2003 
ECA 61 CO/ME/VE Establishment of fr ee trade in automotive sector and 
promotion of integration in re spect of televisions, fertilizers 
and shaving equipment 07.12.2004 
 
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 WT/COMTD/59 
Page 50  
 
  ANNEX 2
 
 
OTHER TYPES OF PARTIAL-SCOPE AGREEMENT  
 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 9  
 "Trade promotion agreements shall refer to non-tariff matters and tend to promote 
intraregional trade flows." 
 To this end, they may take into considera tion, among other matters, the following aspects: 
Trade rules: 
 
- Subsidies and countervailing measures; 
- Unfair business practices; 
- Import licensing and formalities; - Other technical matters relating to regional trade. 
Other rules relating to non-tariff matters: 
 
- Payments; 
- Financial cooperation; 
- Animal and plant health cooperation; - Customs cooperation; - Facilitation of transport; - Government procurement. 
1980 Treaty of Montevideo, Article 14
 
 "Member countries may establish, through the corresponding regulations, specific rules to 
conclude other modalities of partial-scope agreements." 
 "For this purpose, they shall take into consideration, among other matters, scientific and 
technological cooperation, tourism promoti on and preservation of the environment." 
Resolution 2 of the Council of Ministers, Article 10  
 "Member countries may establish, through the corresponding regulations, specific rules to 
conclude other modalities of partial-scope agreements." 
 "For this purpose, they shall take into consideration, among other matters, scientific and 
technological cooperation, tourism promoti on and preservation of the environment."  WT/COMTD/59 
 Page 51 
 
  OTHER TYPES OF PARTIAL-SCOPE AGREEMENT 
 
PSAs Adopted under Articles 13 and 14 of the 1980 Montevideo Treaty 
 
Agreements and Additional Protocols Adopted During  
the Period from 1 January 2004 to 31 December 2005  
 
Agreement Signatory countries Subject Date adopted 
    
Art. 13    
    
PC 10.1 AR/BO Agreement on supply of natural 
gas from the Republic of 
Bolivia to the gas pipeline in 
north-eastern Argentina 14.10.2004 
    
PC 17 AR/BO Promotion of productive 
competitiveness of the Parties 21.04.2004 
PC 17.1 AR/BO Development, encouragement 
and promotion of tourism 22.07.2004 
PC 17.2 AR/BO Cooperation on research, 
development and generation of 
technologies between the two 
Parties 22.07.2004 
PC 17.3 AR/BO Cooperation on sanitary and 
phytosanitary measures 22.07.2004 
    
PC 18 CH/PE Agreement on cooperation and 
assistance in customs matters 17.12.2003 
    
PC 19 AR/BR/CH/CO/ 
EC/PA/UR/VE Framework Agreement on 
Regional Energy 
Complementarity 09.12.2005 
    
Art. 14    
    
A14TM 3.2 AR/BO/BR/CH/ 
PA/PE/UR Provisions on international land 
transport offences and penalties 16.02.2005 
A14TM 3.4 CH/PE Convention on Road Passenger 
Transport between Tacna and Arica 10.12.2004 
 
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  WT/COMTD/59 
Page 52  
 
  ANNEX 3
 
 
AGREEMENTS ON RENEGOTIATION OF CONCESSIONS GRANTED  
DURING THE PERIOD 1962/1980  
Resolution 1 of the Council of Ministers, Article 1  
 "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 schedules, 
lists of non-extensive benefits and complementarity agreements. 
 To that end, they shall renegotiate those c oncessions by up-dating, improving or eliminating 
them, so as to achieve a greater strengthening and balance of trade flows. 
 The results of the renegotiation shall be c onsistent with the provisions and mechanisms 
provided for in the 1980 Treaty of Montevideo." 
Resolution 433 of the Standing Executive Committee, Articles 1 and 2  
(Implementing provisions) 
 "The partial-scope agreements  'on renegotiation of preferences granted during the period 
1962/1980' 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 preceding Ar ticle shall be based on the grant of preferences 
in respect of the customs duties and/or other restri ctions applied by the countries participating therein 
to the import of negotiated products orig inating 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/59 
 Page 53 
 
  RENEGOTIATION AGREEMENTS 
 
Additional Protocols Adopted During the Period 
from 1 January 2004 to 31 December 2005 
 
Agreement Signatory countries Subject Date adopted 
    
R 18 CO/PA Terminated by entry into force of ECA 
No. 59  
    
R 20.A.16 PA/PE Extension of validity 25.06.2004 
R 20.A.17 PA/PE Extension of validity 22.09.2004 
R 20.A.18 PA/PE Extension of validity 22.12.2004 
R 20.A.19 PA/PE Extension of validity 23.03.2005 
R 20.A.20 PA/PE Extension of validity 25.05.2005 
R 20.A.21 PA/PE Extension of validity 22.07.2005 
R 20.A.22 PA/PE Extension of validity 27.10.2005 
R 20.A.23 PA/PE Extension of validity 16.12.2005 
    
R 21 PA/VE Terminated by entry into force of ECA 
No. 59  
    
R 23 CO/UR Terminated by entry into force of ECA 
No. 59  
    
R 25 UR/VE Terminated by entry into force of ECA 
No. 59  
    
R 33.A.16 PE/UR Extension of validity 25.06.2004 
R 33.A.17 PE/UR Extension of validity 24.09.2004 
R 33.A.18 PE/UR Extension of validity 23.12.2004 
R 33.A.19 PE/UR Extension of validity 18.03.2005 
R 33.A.20 PE/UR Extension of validity 27.05.2005 
R 33.A.21 PE/UR Extension of validity 26.07.2005 
R 33.A.22 PE/UR Extension of validity 27.10.2005 
R 33.A.23 PE/UR Extension of validity 19.12.2005 
 
_______________ 
 
 WT/COMTD/59 
Page 54  
 
  ANNEX 4
 
 
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 foreseen for the partial-scope 
agreements provided for in the th ird section of the present Chapter." 
 
 
 
REGIONAL AGREEMENTS 
 
Agreements Adopted During the Period from 1 January 2004 to 31 December 2005  
 
NOTE:  No changes to this ty pe of Agreement were registered 
 
_______________ 
 
  WT/COMTD/59 
 Page 55 
 
  ANNEX 5  
 
AGREEMENTS CONCLUDED BY MEMBER COUNTRIES WITH  
NON-LAIA LATIN AMERICAN COUNTRIES  
1980 Treaty of Montevideo, Article 25  
 "Likewise, member countries may draw up pa rtial-scope agreements with other Latin 
American countries and areas of economic integra tion, in accordance with the various modalities 
foreseen in the third section of Chapter II of the pr esent Treaty, and under the terms of the respective 
regulative provisions. 
 Notwithstanding the above, these agreements shall be subject to the following rules: 
Concessions granted by participating member c ountries shall not be extensive to the others, 
excepting the relatively less-developed countries; 
When a member country includes products alr eady negotiated in par tial agreements with 
other member countries, concessions granted may be highe r than those agreed with the former;  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 concerning automatic 
extension or waiver of preferen ces contained in the partial agreements referred to in the present 
Article;  and 
They shall be multilaterally assessed by the memb er countries within the Committee in order 
to ascertain the scope of the agreements drawn up and facilitate participation of other member 
countries therein."  AGREEMENTS ADOPTED U NDER ARTICLE 25 OF THE 1980 MONTEVIDEO TREATY 
 
Additional Protocols Adopted During the Pe riod from 1 January 2004 to 31 December 2005
 
 
Agreement Signatory countries Subject Date Adopted 
    
A25TM 29.2 CO/PAN Extensive tariff cuts 15.02.2005 
    
A25TM 41 BR/SURIN Liberali zation of Brazilian rice 
imports from Suriname (quota) 21.04.2005 
 
__________