LATIN AMERICAN ASSOCIATION FOR INTEGRATION
ALADI

OUTSTANDING AGREEMENTS

The member countries has established an economic preferences area, composed by a regional tariff  preference, regional scope agreements, and partial scope agreements.

The regional scope agreements are those in which all the member countries are involved.

The member countries will reciprocally grant a regional tariff preference, which will be applied making reference to the level that rules for third countries and will be subjected to the corresponding regulations.

The tariff preferences levels are established according to the relative economic development level of each country.  Following the regional preferences levels (in percentages) in force with the second modificatory protocol (Regional Agreement No. 4)

Lesser Development Countries: Bolivia, Ecuador, and Paraguay.

Medium Development Countries: Colombia, Chile, Peru, Uruguay, and Venezuela.

Major Development Countries: Argentina, Brazil, and Mexico.

Moreover, the Mediterranean lesser relative economic development countries (Bolivia and Paraguay) will receive from the other countries the following preferences:

• From the lesser development countries: 24%.

• From the medium development countries: 34%

• From the major development countries: 48%.

The partial scope agreements are those in which not all the member countries are part of, and will tend to create the necessary conditions for deepen the regional integration process by its progressive multilateralization.

Rights and obligations established in the partial scope agreements will exclusively rule for the member countries which subscribed it, or those added by them. (Ecuador)

The partial scope agreements could be commercial, of economic complementation, agricultural, of trade promotion, among others.  Their characteristics are:

a) They should be open to adhesion, previous negotiation, of the other member countries;

b) They should include clauses that tend to convergence so benefits could involve all their member countries;

c) They could contain clauses that tend to convergence with other Latin American countries according to established mechanisms of this Treaty;

d) They will contain differential treatments which application forms will be established in each agreement, as well as the negotiation procedures for its periodical review whenever asked by any member country that considers itself prejudiced;

e) The reduction of taxes could be performed for the same products or tariff subsections and based on a porcentage reduction related to levies applied to imports originating in non-participating countries;

f) They should have a minimum period of one year; and

g) They could contain specific standards related to origin, safeguard clauses, non tariff restrictions, granting retirement, granting renegociation, reporting, policies coordination and harmonization, among others.  If by any case such specific standards haven't been applied, dispositions established by the member countries related to these matters will be taken into account, on a general scope basis.

The agricultural agreements' aim is promoting and regulating the intra-regional agricultural trade.  They should take into account the flexibility elements that take into account the socio-economic characteristics of the participating countries' production.  These agreements could refered to specific products or groups of products, and could be based on temporal, seasonal, by quotas/mixed, or in contracts among governmental or para-governmental bodies concessions.  They will be subjected to specific standards established for this matter.

The member countries shall establish favourable conditions for the participation of the lesser relative economic development countries (Ecuador among them) in the economic integration process, based in the non reciprocity and communitary cooperation principles.  A 100% preference is granted to all the products included in the Market Opening List (MOP).

In order to warrant them an effective preferential treatment, the member countries will establish the MOP as well as concert programs and other specific ways of cooperation.

Actions on behalf of the lesser relative development countries will be explicitly stated through regional scope agreements and partial scope agreements.

Partial Scope Agreements.-  The member countries will approve the products' (specially industrial products)  negotiated lists, originating from each less relative economic development country, for which without reciprocity, the total elimination of customs levies and restrictions of the Association countries will be agreed.

The member countries will establish the necessary procedures in order to fulfill the progressive enlargement of the corresponding opening lists, and holding the negotiation processes whenever they think fit.  In the same way, they will try to establish efficient compensation mechanisms for those negative effects that lies in the less relative economic Mediterranean developed countries' intra-regional trade.

Partial scope agreements.-  They are negotiated among the lesser relative economic developed countries and the other member countries.  They will be adjusted to general dispositions.

In order to promove an effective colective cooperation on behalf of the less relative economic development countries, the member countries will negotiate with each one Special Cooperation Programs.

The member countries could establish cooperation programs and actions in the pre-investment, financing, and technology areas, assigned basically to support the lesser relative economic development countries, specially the Mediterranean ones, so as fo facilitate the tariff reduction of taxes advantage.  Likewise compensation formulas will be established both for the regional tariff preference and the regional and partial scope agreements.

Partial Scope Agreement for the seed intra-regional trade liberalization and expansion, subscribed in October 22, 1992 among Argentina, Bolivia, Brazil, Colombia, Chile, Paraguay, Peru, and Uruguay, to which Ecuador acceed in August 26, Cuba in January 19, 1994, and Venezuela in April 14, 1994.  (ALADI/AAP.AG/2)

This agreement is applied to imports destined to Ecuador, originating from the following ALADI's member countries, with which there is no a subscribed agreement of Free Trade Area: Argentina, Brazil, Cuba, Paraguay, and Uruguay.  The objective is to liberate the intra-regional trade of seeds, and establish the necessary conditions for the development of national systems in an harmonic way.

The signatory countries establish that the seeds will be traded within their territories without any other restriction than those required in order to warrant their characteristics, the accomplishment of verification, trade practices, as well as other applied.

Seeds' imports of the species' common list, originating from multiplications performed in signatory countries, will be exempted of those taxes applied to imports (100% preference = 0% tariff), as well as customs duties and other equivalent effects charges, be these fiscal, monetary, exchange, or of other nature, which adversely affect imports.  Similar rates and charges for rendered services won't be included in this concept.  Both, the origin regime and the safeguard clause application are ruled based on the ALADI agreement.

This agreement aim is to enlarge, facilitate, promote, and diversify the trade exchange between Ecuador and Paraguay.

The signatory countries reciprocally grant on their imports a tariff preference which consists in a 40% tax reduction, applicable to those imports originating from third countries non-ALADI members.  The products included in the exemption lists of each part are excluded of this tariff preference.

Preferences granted and received are included in the following annexes:
Annex 1: Preferences Received by Ecuador
Annex 2: Preferences Granted by Ecuador

This agreement aim is to enlarge, facilitate, promote, and diversify the trade exchange between Ecuador and Uruguay.

The signatory countries reciprocally grant on their imports a tariff preference which consists in a 50% tax reduction, applicable to those imports originating from third countries non-ALADI members. 

The signatory countries commit themselves to facilitate and promote the cooperation and technical assistance, as well as training in those areas related to the agricultural sector, as well as increase the agricultural products trade exchange.  Particularly they will sponsor this sector investments.

The preferences granted and received are included in the following annexes:

Annex 1: Preferences Received by Ecuador
Annex 2: Preferences Granted by Ecuador

- Renegotiation Partial Scope Agrement No. 29 between Ecuador and Mexico, subscribed in May 31st, 1993.  (ALADI/AAP.R/29).

The signatory countries commit themselves to reciprocally grant those preferences --related to taxes in force for third countries-- included for products originating from their own territories.

The preferences granted and received are in the following annexes:

Annex 1: Preferences Received by Ecuador
Annex 2: Preferences Granted by Ecuador

Economic Complementation Partial Scope Agreement No. 46 between Cuba and Ecuador.

Includes the products with preference which make up the Argentinan List in the Market Opening on behalf of Ecuador.

Includes the products with preference granted by Uruguay to Ecuador within the Market Opening List.

Includes all the products with preference granted by Paraguay to Ecuador within the Market Opening List.

Includes all the products with preference granted by Ecuador to Paraguay within the Market Opening List.

Includes all the products with preference granted by Brazil to Ecuador within the Market Opening List.

Market Opening Regional Agreement on behalf of Ecuador, granted by Mexico.

Includes all the products with preference granted by Brazil to Ecuador within the Market Opening List.

Market Opening Regional Agreement on behalf of Ecuador, granted by Cuba.

Includes all the products with preference granted by Brazil to Ecuador within the Market Opening List.

If there are preferences for the same item in two or more agreements, the one that grants higher preference to such item will be taken into account, and is defined in those preferences granted and received with each country.

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