ANDEAN COMMUNITY - ARGENTINA AGREEMENT

ECONOMIC COMPLEMENTATION PARTIAL SCOPE AGREEMENT N° 48 BETWEEN THE GOVERNMENTS OF COLOMBIA, ECUADOR, PERU, AND VENEZUELA, MEMBER COUNTRIES OF THE ANDEAN COMMUNITY, AND ARGENTINA

The Governments of the Republics of Colombia, Ecuador, Peru, and Venezuela, member countries of the Andean Community, and the Government of Argentina, henceforth called "Signatory Parties".

WHEREAS:

It is necessary to strengthen and deepen the Latin American integration process in order to reach those aims foreseen in the 1980 Montevideo Treaty, through the economic-commercial agreements common accord;

The suitability of offering the economic agents with clear rules for trade and investment development, in order to get their participation in the economic and commercial relations between the Andean Community and Argentina;

That the structure of free trade areas in Latin America, bases on prevailing subregional and bilateral agreements, establishes one of the instruments for the countries' step forward in their economic and social development;

That in December 17, 1996, Bolivia, member country of the Andean Community, subscribed the Economic Complementation Agreement No. 36, by which a Free Trade Area is established between Bolivia and MERCOSUR;

That in April 16, 1998 the Framework Agreement was subscribed for the creation of the Free Trade Area between the Andean Community and MERCOSUR;

REAFFIRMING:

The will of pursuing with negotiations of an Economic Complementation Agreement between the Andean Community member countries and MERCOSUR, in order to establish a Free Trade Area between these two blocks;

THEY AGREE TO:

Celebrate an Economic Complementation Partial Scope Agreement according to what is established in the 1980 Montevideo Treaty and Resolution 2 of the ALADI's Ministers Council.

CHAPTER I

AIM OF THE AGREEMENT

Article 1

Through the subscription of this agreement, the signatory parties agree to establish fixed preferences margins, as the first step for the creation of the Free Trade Area between the Andean Community and MERCOSUR.

CHAPTER II

TRADE LIBERALIZATION

Article 2

The tariff preferences and other conditions agreed for the importation of negotiated products originating in the signatory parties corresponding territories, classified according to the Tariff Nomenclature of ALADI 1993 are registered in annexes I (Preferences granted by the signatory parties, member countries of the Andean Community)  [Preferences granted by Ecuador to Argentina], II (Preferences granted by Argentina) [Preferences received by Ecuador from Argentina] and, Annex III (Preferences that Ecuador receives from Argentina, in the Special List products).

This agreement is not to be applied to used and reconstructed goods included in annexes I, II, and III.

Article 3

The tariff preferences will be applied, when necessary, on customs duty or fixed tariff in force for the implementation of third countries in each signatory party at the moment of applying the preference, according to what is established in their own laws.

Article 4

The signatory parties could not apply other taxes and charges of equivalent effects, other than the customs duties, which affect imports of those products included in annexes I, II, and III.

Taxes are customs rights and any other charge of equivalent effects that affect those imports originating from signatory parties.

Within the levy concept, the similar rates and surcharges equivalent to the rendered services cost, the antidumping or compensatory rights, and the safeguard measures are not included.

Article 5

Even though what is established in article 3, the signatory parties commit themselves to apply the agreed porcentage preferences for importation of those products included in annexes I, II, and III whatever the non preferential customs duties level are, applied to these products imports from third countries non signatory parties, except what is established in Chapters VI and VII of this agreement.

Article 6

The signatory parties will not apply non-tariff restrictions to imports or exports of its territory products to other signatory party(ies) territory, be these applied through quotas, licensees, or other means, except what is established in the WTO agreements.

Article 7

No disposition of this agreement will be interpreted as impeding a signatory party do adopt or apply measures according to article 50 of the 1980 Montevideo Treaty or with articles XX and XXI of the GATT, 1994.

CHAPTER III

ORIGIN REGIME

Article 8

For qualifying the origin or merchandises benefited of this agreement, the signatory parties will apply the Origin General Regime foreseen in Resolution 252 of the ALADI's Representatives Committee, text combined and ordered from Resolution 78 and concordants.

Annex IV establishes origin specific requirements applicable to those corresponding products of annexes I and II.

The origin standards management will be performed by the Administrative Commission of this agreement.

The Commission will assume, when necessary, the decisions trend to:

          a)      Warrant the sound application and management of the Origin Regime.

    b)      Establish, modify, adjourn, or eliminate the origin specific requirements.

c)      Attend any other matter agreed by the signatory parties related with the interpretation or application or the Origin Regime.

CHAPTER IV

NATIONAL TREATMENT

Article 9

In the case of the National Treatment, the signatory parties will be ruled according to what is established in Article 46 of the 1980 Montevideo Treaty, and the GATT's 1994 article III, as well as by the Supplementary Notes of such article.

Notwithstanding, the signatory parties could act according to those commitments assumed in the WTO Agreement on Investment Measures Related to Trade.

CHAPTER V

CUSTOMS VALUATION

Article 10

The signatory parties will be ruled by those commitments assumed by virtue of the agreement related to the application of Article VII of the GATT 1994, and Resolution 226 of the ALADI Representatives Committee.

CHAPTER VI

ANTIDUMPING AND COMPENSATORY MEASURES

Article 11

The signatory parties will be ruled by their respective laws, which should be consistent with the agreement related to the application of Article VI of the GATT 1994, and the WTO Agreement on Subsidies and Compensatory Measures.

Likewise, the signatory parties will accomplish the assumed commitments related to subsidies within the environment of the WTO.

Article 12

The signatory parties will commit themselves to notify one to another, as soon as possible, through the competent organizations about the opening of preliminary and final investigations and conclusions due to dumping practices or subsidies that adversely affect reciprocal trade, and if the case arises, the application of corrective measures and changes to their respective laws.

CHAPTER VII

SAFEGUARD CLAUSES

Article 13

The signatory parties will be ruled by what is established in Resolution 70 of the ALADI Representatives Committee, on what is related to the safeguard measures application to imports of products for which tariff preferences established in Annexes I, II, and III are granted.

The application of safeguards by the signatory parties will be object of examination and continuation by the Agreement Administrative Commission.

Article 14

The provisions disposed in this chapter won't impede the signatory parties to apply, whenever necessary, those measures foreseen in the WTO Agreement on Safeguards, and related measures foreseen in other WTO agreements.

CHAPTER VIII

TECHNICAL BARRIERS TO TRADE, AND SANITARY AND PHYTO-SANITARY MEASURES

Article 15

The signatory parties won't adopt, keep, or apply technical regulations, evaluating procedures, metrologic dispositions, sanitary or phyto-sanitary measures which create unnecessary barriers to trade.

Article 16

The signatory parties will be ruled by the Agreements on Technical Barriers to Trade and on Sanitary and Phyto-Sanitary Measures of the WTO, as well as by the Framework Agreement for Trade Promotion through the Overcoming of Technical Barriers to Trade, subscribed within the ALADI's framework.

CHAPTER IX

DISPUTE SETTLEMENT

Article 17

Disputes arosen in relation to this agreement will be object of those procedures foreseen in Annex V.

CHAPTER X

MANAGEMENT OF THE AGREEMENT

Article 18

The management of this agreement will be in charge of a management commission composed by:

-                By Colombia: the Director of Integration of the Ministry of Foreign Trade.

-                By Ecuador: the Director of International Negociations of the Ministry of Foreign Trade, Industrialization, and Fishing.

-                By Peru: the National Director of Integration and International Trade Negociations of the Ministry of Industry, Tourism, Integration and International Trade Negotiations.

-                By Venezuela: the General Director of Foreign Trade of the Ministry of Production and Trade.

-                By Argentina: the National Director of American Economic Integration of the Ministry of Foreign Affairs, International Trade, and Worship.

Article 19

The Management Commission will be constituted within the next thirty (30) calendar days of the coming into force of this Agreement, and will have the following functions, among other:

               1)      Approve its own Regulations;

               2)      Make sure the accomplishment of this agreement dispositions;

               3)      Interprete the standards of this agreement;

               4)      Recommen the necessary changes of this agreement;

               5)      Periodically assess the progress and general operation of this agreement;

               6)      Promote activities among the signatory parties, such as meetings, and creation of working groups;

               7)      Practice the duties empowered by this agreement related with origin, safeguards, and disputes  settlement;

               8)      Analyze the trade barriers that arise of the application of national measures in the signatory countries, suggesting actions that can contribute to its elimination and facilitate mutual trade flows; and,

               9)      Other suggested by the signatory parties.

The Management Commission resolutions will be assumed by consensus, except what is established in Article 16 of Annex V.

CHAPTER XI

ADHESION

Article 20

This agreement will be open to any adhesion, previous negotiation of the remaining ALADI member countries.

Article 21

The adhesion will be formal once their terms and conditions have been negotiated between the signatory parties and the adherent country, through the subscription of a Supplementary Protocol which will be in force thirty (30) calendar days after it have been deposited in the ALADI's General Secretariat.

CHAPTER XII

VALIDITY

Article 22

This agreement will come into force in August 1st, 2000, and will be in force up to August 15, 2001, and could be renewed by the signatory parties agreement.  Therefore, the signatory parties according to their own laws could order the provisional application of this agreement, until the procedures to come in force are completed.

When subscribing the Economic Complementation Agreement for the Free Trade Area creation between the Andean Community and MERCOSUR, such agreement will replace this agreement.

CHAPTER XIII

DENUNCIATION

Article 23

The signatory parties could denunciate at any moment this agreement before the ALADI General Secretariat, informing about its decision to the remaining signatory parties, three (3) months early, at least.  Once the denunciation have been performed, the denouncer signatory party's or parties' acquired rights and obligations will automatically stop, except what is related to received or granted preferences, which will remain in force during six (6) months counted starting from the submitting date of the denunciation document, and except that upon the denunciation process, the signatory parties agreed a different term.

FINAL DISPOSALS

Article 24

Are part of this agreement Annex I (Preferences granted by the signatory parties, member countries of the Andean Community); Annex II (Preferences granted by Argentina); Annex III (Preferences that Ecuador receives from Argentina, in the products of its special list); Annex IV (Specific Requirements of Origin), and Annex V (Dispute Settlement Regime).

Article 25

This agreement is to be applied to products included in annexes I, II, and III.

Article 26

For products included in annexes I, II, and III that enjoy at the same time of tariff preferences by virtue of the Regional Tariff Preference, or Market Opening List, the most favourable preference will be applied.

Article 27

Upon the coming in force of this agreement, the signatory parties decide to leave without effect the negotiated tariff preferences and the related normative aspects which are included in the Economic Complementation Partial Scope Agreement No. 11, subscribed between Argentina and Colombia, the Economic Complementation Scope Agreement No. 21, subscribed between Argentina and Ecuador, the Economic Complementation Partial Scope Agreement No. 9, subscribed between Argentina and Peru, and the Economic Complementation Partial Scope Agreement No. 20 subscribed between Argentina and Venezuela, and its protocols subscribed within the 1980 Montevideo Treaty 1980.  However, those agreements and its protocols dispositions related to matters not covered by this agreement, as well as those inconsistent with it, will stay in force.

Article 28

The ALADI General Secretariat will be depository of this agreement, of which it will send certified copies to the signatory parties.

PROVISIONAL DISPOSALS

The origin certificates issued before the in force date of this agreement will be valid for the application of the preferences included in it, provided they are submitted to the customs service of the importing country within the validity term.

The signatory parties will send instructions to authorized certifier entities and organisms in their corresponding countries, in such a way that the origin certificates issued upon the agreement's come into force, fit the necessary dispositions.

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