WORLD TRADE
ORGANIZATIONWT/COMTD/11
8 October 1997
(97-4276)
Committee on Trade and Development Original:  Spanish
LATIN AMERICAN INTEGRATION ASSOCIATION
The attached communication was received from the Permanent Delegation of Uruguay on
19 August 1997 with the request that it be circulated to WTO Members.
_______________
The Permanent Delegation of Uruguay to the United Nations Office and Other International
Organizations at Geneva presents its compliments to the Secretariat of the World Trade Organization
and has the honour to submit, on behalf of the member States of the Latin American Integration
Association (LAIA), information on measures taken by LAIA member States under the 1980 Treatyof Montevideo during the period 1995-1996.WT/COMTD/11
Page 2
TABLE OF CONTENTS
Page
I. INTRODUC TION................................................................................................................. 4
II. AGREEMENTS CONCLUDED AND AMENDMENTS
INTRODUCED IN  1995-1996 ............................................................................................ 5
A. Trade agreements (Annex 1).................................................................................... 5
1. Extension..................................................................................................... 5
2. Lapsed ag reements...................................................................................... 5
3. Participation of Ecuado r in trade ag reements ............................................. 5
B. Economic complementarity agreements (Annex 2)................................................. 5
1. Additional protocols ................................................................................... 5
2. Conclusion of ne w agreements................................................................... 7
3. Agreements concluded by Ecuador ............................................................ 17
4. Lapsed economic comple mentarity ag reements ......................................... 17
C. Agricultural agreem ents (Annex 3) ......................................................................... 18
D. Other types of partial-sc ope agreement (Annex 4) .................................................. 18
1. Agreements concluded under Article 13 of the
1980 Treaty of Mo ntevideo ........................................................................ 18
2. Agreements concluded under Article 14 of the
1980 Treaty of Mo ntevideo ........................................................................ 18
E. Agreements on the renegotiation of concessions granted during
the period 1962-1980 (Annex 5).............................................................................. 19
1 Extension..................................................................................................... 19
2. Lapsed ag reements...................................................................................... 19
3. Participation of Ecuador in  renegotiation agreements ................................ 20
F. Regional agreemen ts (Annex 6)............................................................................... 20
G. Agreements concluded by Member countries with non-LAIA
Latin American countries (Article 25 of the 1980 Treaty
of Montevideo ) (Annex 7) ....................................................................................... 20
1. Additional protocols ................................................................................... 20
2. Conclusion of ne w agreements.................................................................... 20WT/COMTD/11
Page 3
Page
III. FURTHER INTEGRATION MEASURES IMPLEMENTED IN THE
CONTEXT OF THE LAIA DUR ING THE PERI OD 1995-1996........................................ 26
IV. EVOLUTION OF TRADE OF LAIA COUNTRIES DURING
THE PERIOD 1995-1996..................................................................................................... 27
ANNEX 1 TRADE AGREEMEN TS............................................................................ 31
ANNEX 2 ECONOMIC COMPLEMEN TARITY AGR EEMENTS........................... 35
ANNEX 3 AGRICULTURA L AGREEMEN TS.......................................................... 38
ANNEX 4 OTHER TYPES OF PA RTIAL-SCOPE AGREEMENT........................... 40
ANNEX 5 AGREEMENTS FOR THE RENEGOTIATION
OF CONCESSIONS GRANTED DURING THE
PERIOD 1962-1980.................................................................................... 42
ANNEX 6 REGIONAL AGREEMEN TS .................................................................... 44
ANNEX 7 AGREEMENTS CONCLUDED BY MEMBER
COUNTRIES WITH NON-LAIA LATIN
AMERICAN CO UNTIES........................................................................... 46WT/COMTD/11
Page 4
I. INTRODUCTION
In accordance with paragraph 4(a) of the Ministerial Decision of 28 November 1979 on
Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing
Countries, the Permanent Representations of the LAIA member States submit for the consideration of
the member States of the World Trade Organization this report which summarizes the progress
achieved in the framework of the 1980 Treaty of Montevideo during the period 1995-1996.
The previous report, which was submitted in March 1996, covered the measures taken during
the period 1993-1994, while the present report updates that information to December 1996.
The flexibility of the 1980 Treaty of Montevideo as regards action by member States has
made it possible to conclude numerous agreements, thereby progressively strengthening the regional
integration process.  In the past few years, agreements have been signed in which the parties
undertake to establish free-trade zones which serve as an effective foundation for furthering the
regional integration process.
Further agreements were reached during the period 1995-1996, and changes in the treatment
previously granted have contributed to extending the preferential basis of regional trade.  At the same
time, agreements have incorporated rules on various aspects of trade policy which are consistent with
the multilateral trade system.
Another important event during the period under consideration was Ecuador's accession, in
1995, to the WTO.  All 11 member States of the Association are now Members of the WTO,
reflecting the region's interest in aligning it s commitments with the WTO's multilateral rules and
disciplines.
Thus, in addition to describing the progress of negotiations by member States during the
period 1995-1996, this report also identifies the partial-scope and regional agreements to whichEcuador is a party, including those which came into effect prior to the period under consideration.
Section II briefly describes the agreements signed during the period under consideration and
highlights their main features.  These agreements include those concluded between LAIA member
States and those concluded with other Latin American and Caribbean countries.
Reference is also made to the changes that have been introduced in the existing trade
agreements and economic complementarity agreements, through the additional protocols indicated.
Section III describes the progress made with regard to nomenclature, customs valuation and
the LAIA's reciprocal payments and credits system.
Section IV provides a summary of the evolution of trade in LAIA member States, both overall
trade and intraregional.  It shows that the overall imports and exports of these countries continued togrow steadily.  The total trade figures reveal an 11 per cent growth in intraregional trade, measured on
the basis of imports.  As regards trade with the rest of the world, exports rose by 12.4 per cent, and
imports by 11.1 per cent during the period 1995-1996.
These trade developments in the LAIA member States have occurred in the context of
increasing openness in trade reflecting the national policies introduced individually by each of the
member States, and the integration agreements concluded by them.  Moreover, these policies are
increasingly consistent with the WTO multilateral trade system.WT/COMTD/11
Page 5
II. AGREEMENTS CONCLUDED AND AMENDMENTS INTRODUCED IN 1995-1996
In annex hereto is a list of the partial-scope and regional Agreements concluded and in effect,
together with any amending protocols agreed by the signatories.
It should be noted that during the period under examination, Argentina, Brazil, Paraguay and
Uruguay, as States Parties to the Southern Common Market (MERCOSUR), pursued the process of
negotiating bilateral agreements with the other LAIA member States.
Negotiations were completed during this period between MERCOSUR and Chile and Bolivia,
with the signature of the respective economic complementarity agreements.  And while MERCOSUR
is still engaged in negotiations with the remaining countries, in order to protect and extend existing
trade flows additional protocols were signed which successively extended the tariff preferences
agreed upon in the respective bilateral agreements.
A. Trade agreements (Annex 1)
Annex 1 lists the agreements which qualify as trade agreements, indicating the signatories, the
industrial sector concerned, the date on which they were signed and the additional protocols adopted
in 1995-1996.
1. Extension
The Annex shows that all the tariff preferences negotiated under the trade agreements which
expired on 31 December 1994 were successively extended by the signatory governments to30 September 1997 through additional protocols.
2. Lapsed agreements
With the signature of Economic Complementarity Agreement No. 35, whose liberalization
programme includes tariffs, the preferences granted under the Trade Agreement No. 5 by Chile to
Brazil and Uruguay lapsed on 1 October 1996, as did those granted by Brazil to Uruguay and Chile.
3. Participation of Ecuador in trade agreements
Under Article 6 of Resolution 2 of the Council of Ministers, the concessions granted in the
trade agreements are automatically extended to the economically less-developed countries without
any compensation in return, regardless of whether or not the countries concerned have negotiated or
acceded to the agreement.
Ecuador is therefore a beneficiary of the preferences granted by member States under each of
the trade agreements concluded between two or more countries that are in force at the date of this
report.
B. Economic complementarity agreements (Annex 2)
1. Additional protocols
Member States introduced several amendments to the economic complementarity agreements
concluded prior to the period under review, most of which were discussed in reports submitted at the
appropriate time to the contracting parties of the General Agreement.WT/COMTD/11
Page 6
This is the case of the agreements concluded between Brazil and Uruguay (No. 2);  Chile and
Uruguay (No. 4);  Mexico and Uruguay (No. 5);  Argentina and Mexico (No. 6);  Mexico and Peru
(No. 8);  Argentina and Peru (No. 9);  Argentin a and Colombia (No. 11);  Argentina and Chile
(No. 16);  Argentina, Brazil, Paraguay and Urug uay (No. 18);  Argentina and Venezuela (No. 20);
Argentina and Ecuador (No. 21);  Bolivia and Chile (No. 22);  Chile and Venezuela (No. 23);
Colombia and Chile (No. 24);  Brazil and Peru (No. 25);  Brazil and Venezuela (No. 27);  Ecuadorand Uruguay (No. 28);  Ecuador and Paraguay (No. 30) and Chile and Ecuador (No. 32), with the
bulk of the amendments serving to extend the validity of the preferences negotiated, to broaden the
respective Liberalization Programmes by granting new preferences or deepening existing preferences
for trade in products originating in their respective territories.
However, there are other amendments worth mentioning, for example:
ACE/2 (Brazil-Uruguay)
The signatories set the motor vehicle quotas covered in 1995 and 1996 by the
automotive regime of the Agreement which govern s reciprocal trade in the sector (Twentieth
Additional Protocol of 1 September 1995 and Twen ty-First Additional Protocol of 4 March
1996).
ACE/5 (Mexico-Uruguay)
The General Regime of Origin enshrined in Resolution 78 of the LAIA Committee of
Representatives was adopted to replace the previous arrangements specified in the Agreement
for identifying the origin of the goods negotiated (Sixth Additional Protocol of
30 March 1995).
ACE/8 (Mexico-Peru)
The preferences granted in the Agreement were brought into line with the LAIA
Nomenclature based on the Harmonized Commodity Description and Coding System
(NALADISA), (Transposition Pr otocol of 29 January 1995).
ACE/16 (Argentina-Chile)
Protocol No. 2 of the Agreement on rules governing the interconnection of gas
networks and the supply of natural gas between member States was replaced (FifteenthAdditional Protocol of 7 July 1995).
ACE/18 (Argentina-Brazil-Paraguay-Uruguay)
A new certification of origin form was drawn up (Fourteenth Additional Protocol of
7 November 1995).
It was further agreed that imports of products negotiated by Brazil would not be
subject to the Freight Surcharge for the Renova tion of the Merchant Marine Fleet (Sixteenth
Additional Protocol of 2 August 1996).
ACE/22 (Bolivia-Chile)
A framework was created for jointly drawing up and implementing programmes and
technical and scientific cooperation projects, and for concluding additional agreements (Sixth
Additional Protocol of  11 November 1995).WT/COMTD/11
Page 7
ACE/23 (Chile-Venezuela)
Includes new products in the regime laid down in the Agreement for the Automotive
Sector (Second Additional Protocol of 11 October 1995).
ACE/24 (Colombia-Chile)
The tariff classification for a number of negotiated products and the correlation
between national and NALADISA tariffs were adjusted, and the certification of origin formfor negotiated goods was replaced (Fourth Additional Protocol of 9 January 1996).
ACE/25 (Brazil-Peru)
It was agreed that imports of the products negotiated by Brazil would not be subject
to the Freight Surcharge for the Renovation of the Merchant Marine Fleet (Fourth Additional
Protocol of 20 December 1995).
ACE/27 (Brazil-Venezuela)
Lays down the objectives for the development of trade and integration of the
populations living in the border regions, and provides for the creation of border coordination
committees to implement those objectives.  The committees are responsible, respectively, for
streamlining customs procedures, border cooperation in trade matters and improvement of
border transportation networks.
ACE/30 (Ecuador-Paraguay)
In accordance with Article 22 of this Agreement, the signatory countries drew up
their respective lists of products that are excluded from the Agreement's Liberalization
Programme (Second Additional Protocol of 25 April 1997).
2. Conclusion of new agreements
During the two-year period 1995-1996, the me mber States of MERCOSUR (Argentina,
Brazil, Paraguay and Uruguay) concluded Economic Complementarity Agreements with Bolivia and
Chile.
In the case of Bolivia, an Economic Complementarity Agreement was concluded on
7 December 1995 (registered with the Association as No. 34) which focused on giving multilateral
scope to the tariff preferences granted in the va rious bilateral agreements which until then had
regulated reciprocal trade between the signator y countries with their respective trade rules.
Similarly, the Agreement contained the commitment to negotiate during 1996 an agreement
on the establishment of a free-trade area.  This was achieved on 17 December 1996 with the signature
of an Economic Complementarity Agreement (regis tered with the Association as No. 36) which
superseded Economic Complementarity Agreement No. 34.
MERCOSUR also signed an Economic Comp lementarity Agreement with Chile on
25 June 1996, registered with the Association on 30 September 1996 as No. 35.
The main features of Agreements No. 35 and 36 are described below.WT/COMTD/11
Page 8
Economic Complementarity Agreement No. 35 between MERCOSUR and Chile
The Economic Complementarity Agreement concluded between the States Parties to
MERCOSUR (Argentina, Brazil, Paraguay and Uruguay) and the Republic of Chile was signed on
25 June 1996 in Potrero de los Funes, Province of San Luis, Argentina and registered with the LAIA
on 30 September 1996.  It entered into effect on 1 October 1996.
Objectives
The objectives of the Agreement are to establish the legal and institutional framework for
cooperation and physical integration designed to contribute to the creation of an enlarged economic
space with a view to facilitating the free movement of goods and services and the full utilization of
the factors of production;  to establish a free-trade area between the signatory countries within a
maximum period of ten years, through the expansion and diversification of trade and the dismantling
of tariff and non-tariff restrictions affecting reciprocal trade;  to promote the development and use of
physical infrastructure, with special emphasis on establishing links between the two coasts;  topromote and boost reciprocal investments between  economic operators of the signatory countries;
and to promote complementarity and cooperation in the economic, energy, scientific and
technological fields.
Trade Liberalization Programme
The Agreement essentially provides for the establishment of a free-trade area within a period
of ten years, on the basis of a trade liberalization programme applicable to products from the
territories of the parties.  The Programme provides for progressive and automatic reductions in tariffs
applicable to third countries upon customs clearance.
Some 80 per cent of the tariff universe began with a preference of 40 per cent from
1 October 1996, rising to 48 per cent on 1 January 1997, and should be fully liberalized within aperiod of eight years, i.e. by 1 January 2004.
The remainder of the tariff universe is covered in 12 Annexes listing groups of products
which, owing to specific circumstances in each case , are eligible for tariff cuts under regimes with
differing time-frames.
Thus, the various categories of products will reach the "zero" tariff by stages on the basis of
individual regimes which will come into effect at different points in time, in some cases, and involve
the phasing out of tariffs at different rates, achieving total liberalization in 2004 (Annex 1);  2006
(Annexes 2, 3 and 5);  2011 (Annexes 6 and 7);  2012 (Annex 8) and 2014 (Annex 9) respectively.
By the year 2011, 99.9 per cent of all NALADISA items will be levy-free.
The remaining Annexes detail the treatment agreed between Chile and Paraguay for products
of the automotive industry (Annex 4);  the preferences to be applied by the signatory countries to
various products until they are superseded by other tariff-cutting arrangements provided for in the
Agreement (Annex 10);  the maximum levies that Argentina may apply to Chile for products in the
textile sector (Annex 11), and the treatment to  be given to products included in MERCOSUR's
Regime for Final Adaptation to the Customs Union (Annex 12).
Non-tariff restrictions
The parties undertake to refrain from imposing non-tariff restrictions on imports or exports of
products, be it in the form of quotas, licensing or other measures, without prejudice to the provisions
of the WTO Agreements.  While existing measures declared in the Additional Notes to the AgreementWT/COMTD/11
Page 9
may be maintained, the Administrative Commission must ensure that they are removed within the
shortest possible time.
Specific duties
The parties undertake to refrain, in their reciprocal trade, from applying specific duties over
and above those already in effect, increasing their scope, applying them to new products or changing
the manner in which they are calculated in such a way as to detract from the conditions of access to
the market of the other party.
Tariffs
At the time of signature of the Agreement, the parties exchanged details of the tariffs in force,
and agreed to keep each other informed of subsequent changes.
Free-trade areas
It was agreed that the tariff in force for third countries would be applied to all goods
manufactured or originating in free-trade areas of an y kind located in the territories of the parties, in
accordance with their respective national legislations.  Such goods must be duly identified.
Rules of origin
The Agreement lays down the rules of origin that  are applicable to trade in goods between the
parties for describing and identifying originating goods and issuing certificates of origin, and with
respect to verification, monitoring and penalties.
Under the general eligibility criteria, goods are considered to be "originating" if they are
wholly manufactured in the territory of one or more of the parties, or if they are of animal, plant or
mineral origin, including game and fish, and have been mined, harvested or gathered, bred or reared
in the territory of the parties, including thei r territorial waters and exclusive economic zones.
Goods that are manufactured with non-originating materials are also considered to be
originating if they have undergone processing in the territories of the parties which gives them a new
individuality, and places them under a new tariff heading different from that of the said materials.
Where the processing does not occasion a change of classification, the goods are nevertheless
considered to be originating if the c.i.f. port of destination or the c.i.f. maritime port value of the non-
originating materials does not exceed 40 per cent of the f.o.b. export value of the end product.
Goods that are the product of mounting or asse mbly operations carried out within the territory
of one of the parties using non-originating materials, even if they meet the change of tariff
classification criteria, must also comply with the regional value content requirements indicated in the
preceding paragraph.
The Agreement also establishes a special transitional regime of origin under which Chile
grants preferences (50 per cent regional content) exclusively to Paraguay for a list of products.  By
1 January 2004, these products will be brought into line with the regime of origin laid down in the
Agreement.
The signatory countries agreed on specific requirements of origin in cases where the general
rules are not sufficient to identify the origin of a good or group of goods, which take precedence over
the general requirements.WT/COMTD/11
Page 10
Similarly, the Agreement embodies the principle of "accumulation" whereby, for the purposes
of requirements of origin, materials originating in one of the signatory countries that are incorporated
in a given good in the territory of another of the signatories will be considered to have originated in
the territory of the latter.
Unfair trade practices
With respect to the application of anti-dumping and countervailing measures, the parties must
bring their laws and regulations into conformity with the WTO Agreements.  When a party applies
anti-dumping or countervailing measures in respect of imports from third countries, it must so inform
the other party through the Administrative Commi ssion, so that the other party can evaluate the
imports into its market of the products targeted by the measure and act accordingly.
If one party considers that the other party is receiving dumped or subsidized imports from
third markets, it may request consultations with a view to ascertaining the real conditions of entry of
the products in question;  the consulted party must give the request due consideration and must reply
within 15 days.
Safeguard clauses
The parties agreed to implement a safeguard regime from 1 January 1997.  However, as the
parties have not concluded their negotiations, the regime has not yet been incorporated into the
Agreement.
Technical regulations and standards, sanitary and phytosanitary measures, and other measures
The parties will comply with their obligations under the WTO Agreements on Technical
Barriers to Trade and on the Application of Sanitary and Phytosanitary Measures.
Within six months from the date on which the Agreement comes into effect, information on
the regulatory measures applicable in each country will be exchanged for review by the
Administrative Commission, in order to ensure that th ey do not create an obstacle to reciprocal trade.
The Agreement also calls for notification of new technical standards and regulations, and
sanitary and phytosanitary measures, with a view to their harmonization and reconciliation.
Implementation and use of export incentives
The parties will respect their WT O commitments in this regard.
Within 12 months of the entry into force of the Agreement, the Administrative Commission
will draw up a list of the export incentives in force in each of the countries and examine them.
Products whose manufacture involves inputs imported temporarily or under the drawback
system will benefit from the Agreement's Liberalization Programme only until the fifth year of its
validity.
Treatment on internal taxation
With respect to internal taxes, fees and other internal charges, the parties will adhere to the
provisions of Article III of the GATT 1994.WT/COMTD/11
Page 11
Services
The signatories agreed to promote the liberalization, expansion and progressive
diversification of trade in services in their territories within a period to be established and in
accordance with their commitments under the General Agreement on Trade in Services (GATS).
Intellectual property
The parties will comply with the WTO Agreement on the Trade-Related Aspects of
Intellectual Property Rights.
General provisions
The Agreement provides that any party which grants advantages, franchises, privileges or
immunities in respect of products originating from or destined for any country, whether or not a
member of the LAIA, under decisions or agreements that are not covered by the 1980 Treaty of
Montevideo, must so inform the other party within a period of 15 days following the signature of the
Agreement, supply the text of the Agreement and its additional instruments, and declare its readinessto negotiate, within a period of 90 days, concessions equivalent to the overall concessions granted and
received.
If the negotiations do not result in an agreement, the party affected may have recourse to the
dispute settlement procedure provided for in the Agreement.
It should also be noted that, by express decision of the parties, the preferences and related
rules deriving from bilateral agreements signed between each member of MERCOSUR and Chile
lapse.
Thus, the preferences and rules agreed in the following partial-scope agreements lapsed with
the entry into force of ACE/35:
- Economic Complementarity Agreemen t No. 4 between Chile and Uruguay;
- Economic Complementarity Agreement No. 16 between Chile and Argentina;
- Renegotiation Agreement No. 3 between Chile and Brazil;
- Renegotiation Agreement No. 26 between Chile and Paraguay;  and
- Trade Agreement No. 5 - Chemical Industry:  the preferences negotiated between
Chile and Brazil and between Chile and Uruguay lapsed.
However, ACE/35 stipulates that the provisions of these bilateral agreements that are not
inconsistent with the new Agreement or that refe r to matters not included in the new agreement will
remain in effect.
Dispute settlement
Disputes arising in connection with the interpretation, application or non-application of the
Agreement and the Additional Protocols will be settled through mutual consultations and direct
negotiations.  If the dispute is not resolved, the parties may request the intervention of the
Administrative Commission after which, if no solution is found, the Commission will set up an ad hoc
group of experts.WT/COMTD/11
Page 12
The conclusions of the group of experts will be submitted for consideration by the
Commission, which will draw up recommendations for the disputing parties.
This dispute settlement system will remain in force for a maximum of three years, during
which period a new system is to be established which will include an arbitration procedure.  The new
system is to come into effect no later than the fourth year of the Agreement's validity.
Customs valuation
Article 23 of ACE/35 stipulates that the customs valuation regime for trade between the
parties will be governed by the WTO Customs Valuation Code.
As regards the use of the system of price bands , Chile undertakes not to include new products,
to change its mechanisms, or to apply them in  such a way as to detract from the MERCOSUR's
conditions of access.
Investment
Article 41 stipulates that the bilateral agreements on the reciprocal promotion and protection
of investments, concluded between Chile and th e MERCOSUR partners, will remain in full effect.
Anti-trust measures and consumer protection
The parties agree to promote a system of rules for regulating anti-competitive practices.  The
system will be based on internationally accepted practices and provisions.
Regarding consumer protection, the parties undertake to act jointly in drawing up a set of
rules to ensure that reciprocally-traded products enjoy no less favourable treatment than that granted
to like domestic products.
Physical integration
In conjunction with the signature of ACE/35, the parties signed a Physical Integration
Protocol which embodies the commitment to implem ent a coordinated programme of investment in
physical infrastructure.
The parties further undertake to improve their national infrastructure with a view to
developing coast-to-coast transport links.
Other provisions
The Agreement also contains provisions regarding double taxation and scientific and
technological cooperation.
Economic Complementarity Agreement No. 36 between MERCOSUR and Bolivia
On 17 December 1996, in Fortaleza, Brazil, the Foreign Ministers of the States Parties of
MERCOSUR and of the Republic of Bolivia si gned an Economic Complementarity Agreement.
The signatory parties are the Governments of Argentina, Brazil, Paraguay, Uruguay and
Bolivia;  the contracting parties are MERCOSUR and Bolivia.WT/COMTD/11
Page 13
The Agreement came into effect on 28 February 1997, and replaces Economic
Complementarity Agreement No. 34 between these countries, which lapsed on that date.
Objectives
The objectives of the Agreement are to establish the legal and institutional framework for
cooperation and for economic and physical 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 fullutilization of the factors of production;  to establish a free-trade area between the contracting parties
within a maximum period of ten years;  to promote the development and utilization of physical
infrastructure;  to establish a regulatory framework for the promotion and protection of investments;
to promote complementarity and cooperation in the economic, energy, scientific and technological
fields;  and, where appropriate, to promote consultation in trade negotiations conducted with third
countries and blocks of countries outside the region.
Liberalization programme
As stated in the objectives, the Agreement provides for a the creation of a free-trade area
within a maximum period of ten years, on the basis of a trade liberalization programme applicable to
imports of products from the territories of the parties.  The programme provides for progressive and
automatic reductions in tariffs applicable to third countries upon customs clearance.
The bulk of the customs universe is subject to a regime of general tariff cuts beginning with a
preference of 30 per cent in 1997, which will increase annually until complete liberalization is
achieved on 1 January 2006.
The products that are not covered by the general tariff cuts are listed in eight Annexes which
cover specific circumstances pertaining to given groups of products eligible for tariff cutting regimes
with differing rates and time-frames.
A first category of products was liberalized when the Agreement came into force (Annex 7),
while the remaining categories will reach zero tariff by stages:  in 2006 for products listed in
Annexes 1, 2, 3 and 4;  in 2011 for products in Annex 5;  and in 2014 for products in Annex 6.
Table 2 and Chart 9 in Annex 2 show that by 2011, the entire MERCOSUR universe will have
achieved zero tariff, leaving only 28 items of the Bolivian universe to be fully liberalized, accordingto plan, by 2014.
Finally, Annex 8 details the tariff treatment to be given to products included in
MERCOSUR's Regime for Final Adaptation to the Customs Union, establishing the levies that will
effectively be applied by Argentina, Brazil, Paraguay and Uruguay in cases where the cuts under the
various arrangements of the liberalization programme result in a tariff that is lower than the tariffindicated in the corresponding lists in Annex 8.
Non-tariff barriers
Article 7 of the Agreements lays down the commitment to refrain from imposing or
maintaining non-tariff restrictions on imports or expo rts of products between the parties, be it in the
form of quotas, licensing or other measures, except as provided in the WTO Agreements.
While the existing measures that are included in the Additional Notes to the Agreement may
be maintained, the Administrative Commission will take steps towards their removal.WT/COMTD/11
Page 14
Levies
With the exception of those appearing in the Ad ditional Notes to the Agreement, the parties
may not impose levies or charges with equivalent effect other than customs duties.
Tariffs
On the date on which this Agreement came into force, the parties agreed to exchange details
of their tariff levels and keep each other informed of subsequent changes through the appropriatenational channels.
Regime of origin
Annex 9 of the Agreement lays down the rules applicable to trade between the parties for
describing and identifying originating goods and issuing certificates of origin, and with respect to
verification, monitoring and penalties.
Under general eligibility criteria, goods are cons idered to be "originating" if they are wholly
manufactured in the territory of one or more of the parties, or if they are of animal, plant or mineralorigin, including game and fish, and have been mined, harvested or gathered, bred or reared in the
territory of the parties, including their territorial waters and exclusive economic zones;  and, in certain
circumstances, products of the sea obtained outside them, as well as goods processed on factory
vessels and those obtained from the seabed or from outer space.
Goods that are manufactured with non-originating materials are also considered to be
originating if they have undergone processing in the territories of the parties which gives them a new
individuality, and places them under a new tariff heading different from that of the said materials.
Where the processing does not occasion a change of classification, the goods are nevertheless
considered to be originating if the c.i.f. port of  destination or c.i.f. maritime port value of the non-
originating materials does not exceed 40 per cent of the f.o.b. export value of the end product.
Goods that are the product of mounting or asse mbly operations carried out within the territory
of one of the parties using non-originating materials, even if they meet the change of tariff
classification criteria, must also comply with the regional value content requirements indicated in the
preceding paragraph.
In respect of a special list of products, the contracting parties agreed to establish specific
requirements for the products to be considered as "originating", which take precedence over the
general criteria outlined previously.
The transitional provisions in Annex 9 of the Agreement also allow for exceptional treatment
for the lists of products originating in Bolivia which have respectively until 1 January 2000 and
1 January 2002 to establish their origin, under the conditions laid down in Article 25, and inAppendix 2 of this Annex.
Finally, it should be noted that the Agreement embodies the principle of "accumulation"
whereby, for the purposes of requirements of origin, materials originating in one of the signatory
countries that are incorporated in a given product in the territory of another of the signatories will be
considered to have originated in the territory of the latter.WT/COMTD/11
Page 15
Treatment on internal taxation
With respect to internal taxes, fees and othe r internal charges, products originating in the
territory of one party will be accorded treatment in the territory of the other party no less favourable
than that accorded to domestic products in similar circumstances.
Unfair international trade practices (dumping and subsidies) and anti-competitive practices
In applying measures to counter distortions of competition caused by dumping and subsidies,
the contracting parties will be guided by the relevant WTO Agreements.
Export subsidies
The contracting parties will be guided by the WTO Agreement.Products whose manufacture involves inputs imported temporarily or under the drawback
system will cease to benefit from the Agreement's liberalization programme after 1 January 2002.
Safeguard clauses
The parties may, exceptionally and subject to the conditions laid down in Annex 10 of the
Agreement, apply safeguard measures against im ports of products under the liberalization programme
in the form of total or partial suspension of tariff preference obligations incurred under the
Agreement.  Unless otherwise agreed by the parties, it will not be possible to apply safeguards once
the free-trade area has been fully established, i.e. once all products in the tariff universe have reached
100 per cent preference.
Similarly, the provisions of Annex 10 will not prevent countries from applying the measures
set forth in Article XIX of the GATT 1994 (Emergency Action on Imports of Particular Products) in
accordance with the interpretation made in the WTO Agreement on Safeguards.
When MERCOSUR applies a safeguard measure, it may do so as a single entity or on behalf
of one of its States Parties, under the conditio ns laid down in this regard (Annex 10 of ACE/36,
Article 4).
Dispute settlement
Disputes arising between the parties in connection with the interpretation, application or
non-application of the provisions of the Agreement will be submitted to the procedure set forth in
Annex 11, which will be applicable for a maximum period of three years, during which time thecountries must establish a new system which will in clude an arbitration procedure.  The new system is
to come into effect no later than the fourth year of the Agreement's validity.
As a general principle, the parties will seek to resolve such disputes through mutual
consultations and direct negotiations aimed at reaching a mutually acceptable solution.
If a solution is not reached within the period specified or if the dispute has been only partially
settled, the matter will be examined by the Administrative Commission of the Agreement which, with
the advice of a group of experts, will draw up such recommendations as it deems appropriate and
ensure that they are fulfilled.WT/COMTD/11
Page 16
Customs valuation
The signatory countries agreed to comply  in this respect with the Agreement on
Implementation of Article VII of the WTO General Agreement on Tariffs and Trade 1994.
Technical regulations and standards, sanitary and phytosanitary measures, and other measures
The contracting parties undertake to refrain from adopting, maintaining or applying
standardization or conformity assessment measures, metrological provisions, sanitary, phytosanitaryor environmental standards or measures and technical regulations which would in effect create
unnecessary trade barriers.
They will comply in this respect with the WT O Agreements on Technical Barriers to Trade
and on the Application of Sanitary and Phytosanitary Measures.
Complementarity and trade by production sector
With a view to making the best use of available resources, boosting reciprocal trade and
facilitating the export to third markets of goods produced in their territories, the contracting partieswill promote complementarity, and industrial, commercial and technological integration.
Similarly, they will stimulate joint investment aimed at contributing to the production of
goods and services through the creation of multinational enterprises, joint ventures or other
arrangements.
Measures to promote progressive economic complementarity between the parties will take the
form of business agreements between public and private manufacturing and service enterprises which
will focus both on developing specific new activities in their territories and on fostering
complementarity, integration and/or rationalizati on of existing activities, and will concern trade in
goods, services, technology and capital association.
Services
The Agreement encourages the adoption of measures to facilitate the provision of services.
The parties may commission studies in this respect, taking due account of the relevant WTO
provisions.
Physical integration
Recognizing the importance of the physical integration process as a prerequisite to creating an
enlarged economic space, the parties undertake to promote and facilitate the movement of persons and
of goods, as well as trade between the parties and with third markets, through the establishment and
full operation of land, river, sea and air links.
Scientific and technological cooperation
The parties will endeavour to facilitate and support different forms of cooperation and joint
initiatives in the area of science and technology, and joint research projects.  To this end they may
agree on mutual technical assistance programmes designed to raise the levels of productivity of the
sectors in question, to derive maximum benefit from available resources, and to further enhance their
competitive ability on both regional and international markets.WT/COMTD/11
Page 17
General provisions
The Agreement provides that a contracting party which concludes an agreement that is not
covered by the 1980 Treaty of Montevideo must so inform the other party within a period of 15 days
following the signature of the Agreement, and at the same time, declare its readiness to negotiate,
within a period of 90 days, concessions equivalent to the overall concessions granted and received.
With the entry into force of this Agreement, the preferences and related rules deriving from
bilateral agreements concluded between each of the MERCOSUR countries and Bolivia lapse.  Thus,
the preferences and rules negotiated in the following Partial-Scope Agreements have lapsed:
- Economic Complementarity Agreement No. 15 between Bolivia and Uruguay;
- Economic Complementarity Agreement No. 19 between Bolivia and Argentina;
- Economic Complementarity Agreement No. 26 between Bolivia and Brazil;
- Economic Complementarity Agreement No. 29 between Bolivia and Paraguay;  and
- Economic Complementarity Agreement No. 6 between Bolivia and Argentina.However, the Agreement expressly provides that any provisions of the above Agreements that
are not inconsistent with the new Agreement or that refer to matters not included in the new
Agreement will remain in effect.
3. Agreements concluded by Ecuador
Ecuador signed Economic Complementarity Agreements with:
- Argentina, on 13 May 1993 (Agreement No. 21);
- Chile, on 20 December 1994 (Agreement No. 32);
- Paraguay, on 15 September 1994 (Agreement No. 30);
- Uruguay, on 1 May 1994 (Agreement No. 28).
Information on these Agreements appears in the report that was submitted to the GATT for
the period 1993-1994.
4. Lapsed Economic Complementarity Agreements
With the signature of the new economic complementarity agreements between the States
Parties of MERCOSUR and Chile on 25 June 1996 (see Agreement No. 35, paragraph 2), the tariff
preferences and associated effects set forth in Partial-Scope Economic Complementarity AgreementNo. 4 between Chile and Uruguay;  No. 16 between  Argentina and Chile;  No. 15 between Bolivia
and Uruguay;  No. 19 between Bolivia and Argentin a;  No. 26 between Bolivia and Brazil and No. 29
between Bolivia and Paraguay were rendered void.WT/COMTD/11
Page 18
C. Agricultural agreements (Annex 3)
Partial-Scope Agreement for the Liberalization and Expansion of Intraregional Trade in Seeds
concluded between Argentina, Bolivia, Brazil, Co lombia, Chile, Ecuador, Paraguay, Peru, Uruguay,
Venezuela and Cuba
In conformity with Articles 4 and 6 of the Agre ement, the joint list of seeds eligible for the
Liberalization Programme was approved (First  Additional Protocol of 29 August 1995).
The signatories incorporated into the Agreemen t the Internal Regulations for the Operation of
the Seed Committee, which is the entity responsible for its administration.  The Regulations define the
legal status of the Committee, its composition, its responsibilities and its authority, the powers of the
Chairman, of the Secretariat and the Technical and Operational Secretariat, and rules of procedure for
its meetings (Second Additional Protocol of 30 August 1995).
D. Other types of partial-scope agreement (Annex 4)
1. Agreements concluded under Article 13 of the 1980 Treaty of Montevideo
Partial-Scope Trade Promotion Agreement (AAP .PC/9) regarding Energy Cooperation concluded
between Paraguay and Uruguay on 12 April 1996
Within the framework of the Agreement on Trade, Industrial Complementarity and
Investments concluded between Paraguay and Uruguay on 25 March 1976, the parties signed a
Partial-Scope Trade Promotion Agreement which deals with:
- Mutual assistance between the electricity sectors of the two countries in the event of
an emergency;
- absorption by the Uruguayan network of energy surpluses from Paraguay;
- unloading, storage, pumping and transportation of Paraguayan oil using Uruguayan
installations;
- reciprocal supply between the two countries of hydrocarbons of all types.
These measures will be carried out on the basis of implementation agreements between the
two countries.
2. Agreements concluded under Article 14 of the 1980 Treaty of Montevideo
Agreement on the allocation and use of television transmission and relay stations concluded between
Argentina, Brazil, Paraguay and Uruguay on 22 May 1995
The purpose of the Agreement is the coordination and use by television transmission and
relay stations of the channels allocated to the broadcasting service of the coordination zones set down
in this Agreement.
The Agreement provides definitions, defines the coordination zones and protection criteria,
contains the classification of stations and list of television channels allocated to each country, sets out
notification and consultation procedures, provides for cooperation and exchange of information,
regular meetings and dispute settlement.WT/COMTD/11
Page 19
The Agreement entered into force on the date of signature and is open for accession by the
remaining countries of the Association, subject to negotiation.
Agreement on the Transportation Contract and Civil Liability of the Carrier in the International
Carriage of Goods by Road (AAP.A14TM/10) , concluded on 16 August 1995 between Bolivia,
Brazil, Chile, Paraguay, Peru and Uruguay
The Agreement covers all contracts for the inte rnational carriage of goods by road between
natural and legal persons in the signatory countri es, in keeping with the regulations regarding
documentation, formalization, fulfilment of contract and liability of the carrier.
It also contains provisions regarding validity, accession, assessment, review and denunciation.
The Agreement will enter into force 30 days from the date on which the Secretary General of
the LAIA informs the signatories of the reception of at least three notifications of completion of
domestic arrangements for its entry into effect.  It is valid for five years, automatically extendable for
equal periods, unless a signatory notifies otherwise.
E. Agreements on the renegotiation of concessions granted during the period 1962-1980
(Annex 5)
1. Extension
During the period covered by this report, the majority of the additional protocols signed in
this category of agreements relate to the extension of short-term preferences with a view tomaintaining trade flows while the signatory countries  continue to negotiate agreements of broader
scope, generally economic complementarity agreements.
The Annex lists the additional protocols of extension for each agreement.  However a number
of other modifications are worth mentioning:
- Transposition of the preferences to the Nomenclature of the Latin American
Integration Association based on the Harm onize Commodity Description and Coding
System (NALADISA) in the Agreements between Colombia and Paraguay (No. 15),
Paraguay and Peru (No. 20), Paraguay and Venezuela (No. 21) and Peru and Uruguay
(No. 33);
- Suspension of the Freight Surcharge for the Renovation of the Merchant Marine Fleet
on imports of products negotiated by Brazil in the Agreement concluded with
Colombia (No. 10) and in the Agreement concluded with Ecuador (No. 11), (Fifth
Additional Protocol of 8 March 1 995 and Tenth Additional Protocol of
28 March 1996, respectively);
- In the Agreement concluded between Brazil and Colombia (No. 10), agreement by
the parties to grant reciprocal exemption from the requirement that goods imported
under the Agreement be transported in vessels flying the national flag (Sixth
Additional Protocol of 25 September 1996).
2. Lapsed agreements
With the completion of the negotiation process referred to above, the Agreements between
Brazil and Chile (No. 3) and between Paraguay and Ch ile (No. 26) joined the series of renegotiation
agreements that had lapsed in previous years.WT/COMTD/11
Page 20
3. Participation of Ecuador in the renegotiation agreements
In compliance with the provisions of Resolution 1 of the Council of Ministers, on
30 April 1983 Ecuador concluded partial-scope agreements for the renegotiation of concessions
granted during the LAFTA period with the other member States of the Association.
These Agreements were listed in the report submitted to the GATT covering that year.  It
should be noted, however, that four of them (AAP.R/5 with Argentina, AAP.R/15 with Chile,
AAP.R/19 with Paraguay and AAP .R/24 with Uruguay) have been superseded by Economic
Complementarity Agreements Nos. 21, 32, 28 and 30 respectively, signed during the course 1993 and
1994.
F. Regional agreements (Annex 6)
Regional Agreement to Open Markets to Bolivia (Agreement No. 1)
Regional Agreement to Open Markets to Ecuador (Agreement No. 2)
Regional Agreement to Open Markets to Paraguay (Agreement No. 3)
Additional Protocols were concluded for the transposition of the concessions granted by Peru
to Bolivia, Peru to Ecuador and Colombia to Paraguay to the LAIA Nomenclature (NALADISA)
based on the Harmonized Commodity Description and Coding System.
Regional Scientific and Technological Cooperation Agreement (Framework Agreement) between the
member States of LAIA concluded on 19 October 1993
The signatory countries formalized Cuba's accession to this Agreement through an Accession
Protocol signed on 10 February 1995.
G. Agreements concluded by member countries  with non-LAIA Latin American countries
(Article 25 of the 1980 Treaty of Montevideo) (Annex 7)
1. Additional protocols
The annexed list shows that the bulk of the amendments to the Agreements concluded under
Article 25 extend the validity of the temporary concessions, deepen the concessions originally agreed,
incorporate new products and revise certain negotiating conditions.
Changes were also made to the rules governing the implementation and operation of the
Agreements, for example, those connected with the regime of origin applicable for the qualification ofgoods.
2. Conclusion of new agreements
During the period 1995-1996, Bolivia and Venezuela concluded the following Agreements
with Cuba under Article 25 of the 1980 Treaty of Montevideo:
(a) Partial-Scope Agreement No. 34 between Bolivia and Cuba, on 6 May 1995
(AAP/A25TM/34)
Objectives
The objectives of the Agreement are, inter alia, to stimulate the generation and growth of
reciprocal trade and to introduce measures to achieve a higher level of integration between the two
countries.WT/COMTD/11
Page 21
Liberalization programme and non-tariff measures
The two countries agreed to grant each other tariff preferences for the import of products
covered by the Agreement (Annexes I and II).  These preferences take the form of percentage
reductions in the domestic import levies applied by the signatory countries to imports from third
countries under the most-favoured-nation regime.
Once the Agreement comes into effect, the products listed in these Annexes will be totally
exempt from non-tariff restrictions, with the exception of those laid down in Article 50 of the 1980
Treaty of Montevideo.
The parties may, by mutual agreement and at any time, modify the lists of products and the
preferences granted.
Regime of origin
The signatories will apply the provisions  of Resolution 78 of the LAIA Committee of
Representatives in determining the origin of the negotiated products.
Safeguard clauses
The parties may apply safeguards when they consider that imports are being introduced under
such conditions or in such quantities as to cause or threaten to cause serious injury to the domestic
industry that produces like or directly competitive products.  Tariff safeguard measures may only be
applied on a non-discriminatory and temporary basis, for a period of one year, extendable for a furtherone-year period if the causes which gave rise to their introduction persist.  The measure will consist in
the re-establishment of the tariff applied to third countries.
The parties retain their rights and obligations under Article XIX of the GATT in respect of
any emergency action taken by one of the parties.
A definition is given, for the purpose of the Agreement, of "serious injury", "threat of serious
injury", "domestic industry", "like product" and "identical product".
Unfair trade practices
The signatories reject all unfair trade practices and undertake to withdraw any measures that
might distort international trade.
If cases of dumping or other unfair trade practices should arise, or in the event of distortions
caused by export subsidies or domestic subsidies, th e affected party may act in accordance with its
domestic legislation, taking the GATT 1994 as a reference.
Services
The signatories will take measures to facilitate  trade in services in keeping with the relevant
provisions of the GATT 1994.
Transport
The signatories will take steps to facilitate transport between their respective territories by
drawing up proposals and conducting negotiations.WT/COMTD/11
Page 22
Technical standardization
The administrative authorities of the Agreem ent will examine national provisions in this
regard and recommend measures to forestall the drafting, adoption or implementation of measures
intended to create unnecessary barriers to trade.
Investment
The signatories will foster reciprocal investment through the signature of a bilateral treaty for
the promotion and protection of investments.
Trade cooperation
The signatories will encourage trade cooperation in order to take full advantage of the
preferences and trade opportunities available to them, inter alia , by introducing trade information and
promotion programmes, facilitating the work of of ficial and private missions, and organizing trade
fairs and exhibitions.
Intellectual or industrial property
The signatory countries undertake to grant adequate protection under their respective
domestic laws.  At the same time, they will work towards the conclusion of agreements to facilitate
access to the protection of industrial property, the use or exchange of information, the training of
specialists, and cooperation in general.
Dispute settlement
Such disputes as may arise in connection with  the implementation of the Agreement will be
resolved through direct consultations between the administrative authorities of the signatories.
If an agreement is not reached within a period of six months, the dispute will be referred, at
the request of either of the signatories, to an arbitration tribunal composed of three members, which
will make such recommendations as it considers appropriate.
Administration of the Agreement
The Agreement will be administered, de veloped and coordinated by a binational
administrative commission composed of representatives of the Ministry of Foreign Affairs and
Worship, for Bolivia, and of the Ministry of Foreign Trade, for Cuba.
Compatibility with regional agreements
The Agreement will be implemented in a manner consistent with the commitments assumed
by Bolivia under the Cartagena Agreement and by Cuba under the preferential trade treaties to which
it is a party.
Validity
The Agreement will come into force on the date on which the signatories notify that they have
fulfilled the domestic legal requirements, and will be valid for an indefinite period of time.WT/COMTD/11
Page 23
Accession
The Agreement is open for accession, subject to prior negotiations, to the remaining LAIA
member States.
Denunciation
A signatory may denounce the Agreement with effect 180 days following written notification
of the other signatory, without prejudice to such alternative time-period as the signatories may agree
upon.
(b) Partial-Scope Agreement No. 35 between Venezuela and Cuba, signed on 14 November 1995
(AAP/A25TM/35)
Objectives
The objectives of the Agreement are, inter alia,  to facilitate, extend, diversify, promote and
strengthen trade between the parties and stimulate the integration process by developing cooperation,
investment and economic complementarity activities.
Tariff preferences
The parties agree to grant each other tariff preferences on the basis of a selective list of
products which appear in Annexes I and II of the Agreement.
These tariff preferences consist of a percentage reduction in the import levies applied by the
parties to imports from third countries under the most-favoured-nation regime, and may be modifiedby mutual agreement subject to prior negotiation.
Non-tariff restrictions
The parties agree that once the Agreement has come into force, they may no longer adopt or
maintain import restrictions on negotiated products, with the exception of measures intended to
protect public morality, security, the life and health of persons, animals and plants, etc.
Treatment on internal taxation
With respect to internal taxes, fees and othe r internal charges, products originating in the
territory of one party will be accorded treatment in the territory of the other party no less favourable
than that accorded to domestic products in similar circumstances.
Rules of origin
For imports carried out under the Agreement, the parties will apply the rules governing the
determination of the origin of goods and the certification and verification procedures outlined in
Annex III of the Agreement.
Safeguard clauses
The parties may apply temporary corrective measures when imports of one of the products
included in the Agreement are being introduced under such conditions or in such quantities as toWT/COMTD/11
Page 24
cause or threaten to cause serious injury to the domestic industry that produces like or directly
competitive products.
The safeguard may be applied for a period of up to one year, extendable for a further one-year
period if the causes which gave rise to its introduction persist, and will consist in an increased tariff
which may not exceed the tariff applied to third countries for the product in question at the time of its
adoption.
The parties retain their rights and obligations under the WTO Agreement on Safeguards in
respect of any emergency action taken by one of the parties to this Agreement.
Withdrawal of preferences
While the Agreement is in force, the agreed preferences may not be unilaterally withdrawn, it
being understood that the exclusion of a preference as a result of negotiations to review the
Agreement or the expiry of a temporary preference are not considered to constitute withdrawal.
Unfair international trade practices (dumping and subsidies)
In the event of dumping or subsidies, the parties may enact and apply anti-dumping and
countervailing duties in accordance with their respective national legislations and in conformity with
the relevant provisions of the WTO Agreement on Subsidies and Countervailing Measures.
Trade in services
In order to facilitate the provision of services by one party to another, it is recommended that
the Administrative Commission of the Agreem ent should draw up an Agreement on Trade in
Services, taking due account the WTO General Agreement on Trade in Services and the different
regional agreements currently under negotiation.
Transport
In order to facilitate transport between their respective territories, the parties will draw up
proposals and pursue bilateral negotiations, concluding additional protocols to the Agreement for that
purpose.
Technical standardization
The parties may conclude additional protocols to the Agreement for the purpose of
establishing disciplines and procedures to contribute to the growth of bilateral trade while ensuringthat the formulation, adoption and implementation of technical and industrial standards, public health
requirements and phytosanitary and zoosanitary standards do not result in trade barriers.
Investments
The parties agree to foster reciprocal investment by concluding a bilateral agreement on the
promotion and protection of investments and trade.
Double taxation
The parties agree to conduct negotiations aimed at concluding an agreement to avoid double
taxation in order to promote investment and encourage the creation of enterprises.WT/COMTD/11
Page 25
Trade cooperation
The parties will encourage trade cooperation in order to take full advantage of the preferences
and trade opportunities available to them.  This cooperation will involve such activities as trade
information and promotion programmes, facilitating th e work of official and private missions, and the
organization of trade fairs, exhibitions, information seminars and market surveys.
The training of qualified specialists in the areas of interest will also be encouraged.
Intellectual property
Each party will grant protection, and adequate a nd effective defence to nationals of the other
party under the same conditions applied to its own nationals.
Moreover, it is agreed that any advantage, favour, privilege or immunity accorded by one
party to its own nationals will be granted immediately and unconditionally to the holders of
intellectual property rights of the other party.
Dispute settlement
Any disputes that may arise in connection with the interpretation, implementation, application
or non-application of the provisions  of the Agreement will be settled through direct consultations, or
through conciliation or arbitration.
Administration and evaluation of the Agreement
The parties will regularly evaluate the provisions and preferences granted under the
Agreement for the purpose of achieving harmonious and balanced progress towards integration and
generating equitable benefits for both countries.
The Agreement will be administered by the Administrative Commission, chaired by the
Foreign Trade Institute for Venezuela and by the Ministry of Foreign Trade for Cuba.
Validity
The Agreement will come into force on the date on which both governments have
incorporated it into their domestic legislation.
The Agreement will have a duration of three years, automatically extendable for further three-
year periods unless one of the parties notifies, at least 90 days prior to the expiry of the period in
question, its intention not to extend it.
The Agreement cancels and replaces the Partial-Scope Agreement concluded between the
Governments of Venezuela and Cuba on 12 January 1989 (AAP/A25TM/28) as from the date of its
entry into force.
Denunciation
Either party may denounce the Agreement by so notifying the other party 180 days before
depositing the corresponding instrument of denunciation with the LAIA General Secretariat.WT/COMTD/11
Page 26
The rights and the obligations under the Agreement will automatically cease for the
denouncing party at the time of formal denunciation.
Accession
The Agreement is open for accession, subject to acceptance and negotiation, by the remaining
LAIA countries as well as the other Latin American and Caribbean countries.
Harmonization with regional agreements - convergence
The parties affirm that the Agreement will be implemented in a manner consistent with the
obligations previously assumed by them under other preferential trade agreements.
They will also work towards the convergence of this Agreement with other Latin American
and Caribbean integration agreements in conformity with the mechanisms set forth in Chapter IV of
the 1980 Treaty of Montevideo.
III. FURTHER INTEGRATION MEASURES IMPLEMENTED IN THE CONTEXT OF THE
LAIA DURING THE PERIOD 1995-1996
Updating of the Association's nomenclature
Through Resolution 214, the LAIA Committee of Representatives approved amendments to
the LAIA Nomenclature (NALADISA).  Under that Resolution, which came into effect on
1 January 1996, Amendment II to the Harmonized System and the Recommendation of the Customs
Cooperation Council on Substances Controlled by Virtue of the Montreal Protocol on Substances thatdeplete the Ozone Layer were incorporated into the NALADISA.
Customs valuation
Through Resolution 226, the Committee of Representatives adopted a uniform text containing
common rules on customs valuation.  This Resolution provides that the customs value of goods
imported by member States will be determined in accordance with the standards of the GATT 1994Agreement on Customs Valuation.  It also identifies items whose incorporation into domestic
legislation or into the community rules of integration schemes is left to the discretion of individual
countries.
Amendments to the LAIA Agreement on Reciprocal Payments and Credit
The Agreement concluded on 25 August 1982 by the Central Banks of the 11 member States
and by the Dominican Republic in the framewor k of the LAIA Council for Financial and Monetary
Affairs has been regularly refined and updated to keep pace with the circumstances in which it
operates.
In 1996, under Council Resolution 82 of 26 September 1996, a computerized system for
validating operations was adopted (system of records of commitments) which provides central bankswith information on transactions.
1996 also saw the adoption of specific standards to ensure that discount and trade
triangulation operations are appropriate.WT/COMTD/11
Page 27
IV. EVOLUTION OF TRADE IN THE LAIA COUNTRIES DURING THE PERIOD 1995-1996
1995
Total aggregate exports of the LAIA member States in 1995 rose by 22 per cent over the
previous year to reach a record level of $206,125,000,000.
This growth was due to the increase in the unit values of the principal export products, for
example, copper (+27 per cent), wool (+24 per cent), fish meal and cotton (+23 per cent), raw sugar
(+14 per cent), tin (+13 per cent), wheat (+13 per cent), maize (+12 per cent), lead (+11 per cent) and
by the more limited but no less significant rise in the price of bananas, cocoa, coffee, iron, zinc and
crude oil, which offset the fall in the price of bovine meat (-18 per cent).  Argentina and Mexico were
obliged to make special efforts to promote sales abroad, the latter owing to the impact of the
December 1994 crisis, and the former owing to the effects of the Mexican crisis on its economy.
This marked expansion is attributable to the general increase in the region's market share.
While the rise was most marked in the total sales of Mexico (+$18,962,000,000), Argentina(+$5,124,000,000), Chile (+$4,532,000,000), Brazil (+$2,948,000,000), Venezuela
(+$1,963,000,000), Colombia (+$1,400,000,000) and Peru (+$1,051,000,000), it concerned the
remaining countries, to a lesser extent, as well.
The growth in the region's overall imports slowed in 1995 to 12 per cent, totalling
$205,076,000,000, reversing the tendency that had emerged during the previous years for imports togrow more rapidly than exports.
This slow-down in growth may be  attributed to the fact that although global imports increased
in nine LAIA countries, Argentina's and Mexico's imports fell by 6.8 per cent and 8.7 per cent
respectively, or in absolute terms, by $1,468,000,000 and $6,902,000,000.  This was offset by an
increase in imports by the remaining countries, particularly Brazil (+$18,227,000,000), Chile(+$3,754,000,000), Venezuela (+$2,514,000,000), Peru (+$1,958,000,000) and Colombia
(+$1,920,000,000).
It should be pointed out that the negative figures for Argentina and Mexico were the result of
adjustments that had to be made to their economie s in response to a reduction in capital inflows,
which they countered by curtailing spending and increasing sales abroad.  In contrast, Brazil's demandfor imports increased substantially in response to the consolidation of the stabilization plan.
The balance of trade between the LAIA countries and the rest of the world, which had been
negative since 1992, returned to the black in 1995 with a surplus over $519,000,000.
On the intraregional trade front, after ten consecutive years of growth, the value of exports
continued to grow at the same rate as in 1995, regi stering an increase of 24 per cent to reach a record
figure of $35,506,000,000.  Over the past three years, the average annual rate of growth has stood at
24 per cent, as against 18 per cent, for the three-year period 1990-1992.
Although the share of intraregional exports in overall exports remained at its 1994 level of
17 per cent, as during the previous year the share of individual countries varied considerably.  While
Mexico's intraregional exports represented only 4 per cent of global sales, Brazil, Colombia, Chile,
Ecuador, Peru and Venezuela accounted for between 16 and 24 per cent of the total value.  Moreover,
exports to the region by Argentina, Bolivia, Paraguay and Uruguay accounted for between 36 and65 per cent of the value of the respective total exports.WT/COMTD/11
Page 28
In 1995, intra-subregional exports by the countries of the Cartagena Agreement reached an
unprecedented $4,848,000,000.  This figure represents a 39 per cent increase over the previous year,
and accounted for 57 per cent of the total intraregional exports of the GRAN (Andean Group)
countries which totalled $8,468,000,000.  Exports to MERCOSUR totalled $2,513,000,000, to Chile,
$676,000,000 and to Mexico, $431,000,000.
The value of intra-MERCOSUR exports rose for the eighth consecutive year to reach
$14,403,000,000, representing an increase of 20 per cent over 1994.  With a growth rate similar to
that of the previous year, this was the highest level of reciprocal trade ever achieved in the subregion.
Intra-subregional exports accounted for 35 per cent of intraregional exports.
MERCOSUR member States exported $3,446,000,000 worth of products to the Andean
Group, $2,746,000,000 to Chile and $656,000 to Mexico.
The volume of reciprocal exports between Chile and Mexico grew by 30 per cent over the
previous year to reach $602,000,000.  Within this total, Chile's exports declined 37 per cent over 1994to $128,000,000, while Mexico's exports increased by 81 per cent, to $474,000,000.  Chile exported a
total $1,077,000,000 worth of products to the Andean Group and $1,780,000,000 worth to
MERCOSUR, while Mexican exports to these subregions totalled $1,130,000,000 and $1,198,000,000
respectively.
1996
The value of aggregate exports for the countries of the region increased by 12 per cent in
1996 to reach a record value of $231,624,000,000.  However, there was a decline in the growth rate of
the region's exports, which in 1994 had increased by 17 per cent and in 1995 by 22 per cent, on
account of the slow-down in consumption in the Western industrialized countries and the fall or
general stagnation of export prices, which spared only the oil-exporting countries and Argentina.
The behaviour of the prices of some of the main export products varied widely:  while in
some cases they increased, e.g. maize (+35 per cent), lead (+26 per cent), wheat (+26 per cent), soya
(+20 per cent), crude oil (+19 per cent), fish meal (+18 per cent) and bananas (+16 per cent), in other
cases they dropped, e.g. copper (-20 per cent), coffee (-19 per cent), cotton (-13 per cent) raw sugar (-
8 per cent) and bovine meat (-7 per cent).
The increase in aggregate exports of the LAIA member States can be attributed to increased
exports by Mexico (+$16,484,000,000), Venezuela (+$3,953,000,000), Argentina (+$2,739,000,000)
and Brazil (+$1,241,000,000) and, to a lesser extent, to the more moderate increase in the remaining
countries, with the exception of Bolivia and Chile, whose exports shrunk by $95,000,000 and
$494,000,000 respectively.
Aggregate imports by the LAIA member States in 1996 rose by 11 per cent over the previous
year, a lower growth rate than in 1994, but similar to the 1995 rate, to reach $227,859,000,000.
Indeed, following the contraction resulting from the adjustments made in 1995, Argentina and Mexico
recovered their growth rate of imports, while the growth rate in Brazil, following an exceptional surge
in recent years, fell considerably, reverting to earlier levels.
This result for growth in the value of aggregate imports is principally due to the figures
recorded for Mexico (+$17,025,000,000), Argentina (+$3,591,000,000), Brazil (+$2,997,000,000)and Chile (+$1,907,000,000), partially offset by Ecuador (-$3,462,000,000), Venezuela (-
$2,051,000,000), Paraguay (-$902,000,000) and Colombia (-$187,000,000).WT/COMTD/11
Page 29
The balance of trade with the rest of the world, which had been negative during the three
years from 1992 to 1994, returned to the black in 1995, and remained positive in 1996, with a surplus
of $2,723,000,000.  The largest surpluses were those of Venezuela (+$11,416,000,000), Mexico
($5,037,000,000) and Ecuador (+$1,466,000,000), while the largest deficits were recorded by Brazil (-
$7,645,000,000), Argentina (-$3,732,000,000) and Colombia (-$2,186,000,000).
The value of intraregional exports in 1996 marked a ninth consecutive year of growth, albeit
at a more moderate rate, achieving a record level of $39,872,000,000, an increase of 12 per cent over
1995.  This figure represents a marked slow-down in growth rate in comparison to the previous years.
Intraregional exports as a share of overall exports remained stable in 1996 at 17 per cent, with
individual performances closely reproducing those of  the previous year.  While exports to the region
accounted for between 63 per cent and 46 per cent of the total value of exports for Argentina, Bolivia,
Paraguay and Uruguay, these figures stood at between 23 per cent and 16 per cent for Brazil,
Colombia, Chile, Ecuador, Peru and Venezuela.  At 4 per cent, Mexico's share of exports to the regionwas the lowest recorded by any LAIA member State.
The expansion in reciprocal exports involved nine countries:  the largest increases in sales
were achieved by Argentina (+$1,409,000,000), Brazil (+$953,000,000), Venezuela (+$876,000,000)
and Mexico (+$655,000,000), while a slight decrease in regional exports was recorded in Colombia
(-$164,000,000 and Chile (-$57,000,000).  As in 1995, the main destinations of these exports wereBrazil ($12,298,000,000) and Argentina ($7,118,000,000), followed by Chile ($4,389,000,000),
Colombia ($3,533,000,000), Venezuela ($2,369,000,000), Peru ($2,230,000,000), Paraguay
($2,064,000,000), Uruguay ($1,790,000,000), Mexico  ($1,589,000,000), Ecuador ($1,281,000,000)
and Bolivia ($1,211,000,000).
MERCOSUR's intra-subregional exports ($17,042,000,000) represented 43 per cent of total
exports between the LAIA countries;  Ande an Group-MERCOSUR reciprocal exports
($6,045,000,000) represented 15 per cent;  intra-subregional exports of the Andean Group
($5,256,000,000) represented 13 per cent;  reciprocal trade between MERCOSUR and Chile
($4,729,000,000) represented 12 per cent;  trad e between MERCOSUR and Mexico ($2,515,000,000),
between the Andean Group and Chile ($1,754,000,000) and between the Andean Group and Mexico($1,697,000,000) represented 6, 5 and 4 per cent respectively;  and reciprocal exports between Chile
and Mexico ($834,000,000) represented 2 per cent.
In 1996, as in previous years, intra-subregional exports between the Andean countries
achieved a record level of $5,256,000,000.  This figure represents 8 per cent increase over the
previous year, and accounts for 56 per cent of the total $9,384,000,000 worth of intraregional exportsof the member countries of the Cartagena Agreement.
Exports by the Andean Group countries to the remaining LAIA countries increased by
14 per cent, totalling $4,128,000,000, which outstripped the increase in subregional exports.  Of this
total, $2,913,000,000 corresponded to exports to MERCOSUR, $742,000,000 to exports to Chile and
$473,000,000 to exports to Mexico.
Intra-MERCOSUR exports grew in 1996 for the ninth consecutive year, at a rate of
18 per cent.  Although the total value represents a record for the subregion, the rate of growth hasdisplayed a downward trend since 1993.  In the y ear under consideration, intra-MERCOSUR exports
represented 71 per cent of the subregion's exports to the rest of the countries of the Association,
approximating the 1994 level of 68 per cent.WT/COMTD/11
Page 30
In 1996, the MERCOSUR countries exported products for a total value of $3,132,000,000 to
the Andean Group, $2,959,000,000 to Chile and $970,000,000 to Mexico.
The value of exports between Chile and Mexico totalled $834,000,000 with a strong growth
in 1995 of 39 per cent over the previous year, similar to the 43 per cent achieved in 1994.  This result
can be attributed to the increase achieved by Ch ile (14 per cent), whose exports totalled $146,000,000,
and the substantial increase (45 per cent) by Mexico, which attained a value of $688,000,000.
Chile's exports to the Andean Group and MERCOSUR totalled $915,000,000 and
$2,814,000,000 respectively, while exports from Mexico to the Andean Group and the member
countries of the Asunción Treaty totalled $1,224,000,000 and $1,545,000,000 respectively.WT/COMTD/11
Page 31
LAIA
Foreign Trade of Member Countries According to Destination or Origin
LAIA - Rest of the World
1995-1996
(Millions of dollars)
Country Exports f.o.b. Exports c.i.f. Balance
1995 1996 1996/1995
%1995 1996 1996/1995
%1995 1996
LAIA
Argentina 9,625 11,034 (a) 14.6 5,860 7,313 (a) 24.8 3,765 3,721
Bolivia 422 501 (e) 18.7 551 588 6.7 -129 -87
Brazil 9,975 10,928 9.6 10,606 12,270 (a) 15.7 -631 -1,342Colombia 2,455 2,291 (a) -6.7 3,275 3,207 (a) -2.1 -820 -916
Chile 2,985 2,928 -1.9 4,036 4,656 15.4 -1,051 -1,728
Ecuador 761 855 12.4 1,248 1,164 -6.7 -487 -309Mexico 2,802 3,457 (a) 23.4 1,757 1,963 (a) 11.7 1,045 1,494
Paraguay 596 705 (e) 18.3 1,353 1,204 (e) -11.0 -757 -499
Peru 889 920 3.5 2,530 2,694 6.5 -1,641 -1,774Uruguay 1,055 1,436 36.1 1,469 1,665 13.3 -414  -229
Venezuela 3,941 4,817 (e) 22.2 2,291 2,106 (e) -8.1 1,650 2,711
TOTAL 35,506 39,872 12.3 34,976 38,830 11.0 * *
REST OF WORLD
Argentina 11,338 12,668 (a) 11.7 14,262 16,400 (a) 15.0 -2,924 -3,732
Bolivia 759 585 (e) -22.9 883 893 1.1 -124 -308Brazil 36,531 36,819 0.8 43,131 44,464 (a) 3.1 -6,600 -7,645
Colombia 7,862 8,283 (a) 5.4 10,588 10,469 (a) -1.1 -2,726 -2,186
Chile 12,916 12,479 -3.4 10,867 12,154 11.8 2,049 325Ecuador 3,601 4,035 12.1 2,947 2,569 -12.8 654 1,466
Mexico 76,714 92,543 (a) 20.6 70,687 87,506 (a) 23.8 6,027 5,037
Paraguay 323 414 (e) 28.2 1,783 1,030 (e) -42.2 -1,460 -616Peru 4,551 4,915 8.0 5,054 5,253 3.9 -503 -338
Uruguay 1,051 961 -8.6 1,398 1,657 18.5 -347 -696
Venezuela 14,973 18,050 (e) 20.6 8,500 6,634 (e) -22.0 6,473 11,416
TOTAL 170,619 191,752 12.4 170,100 189,029 11.1 519 2,723
TOTAL
Argentina 20,963 23,702 (a) 13.1 20,122 23,713 (a) 17.8 841 -11
Bolivia 1,181 1,086 (e) -8.0 1,434 1,481 3.3 -253 -395
Brazil 46,506 47,747 2.7 53,737 56,734 (a) 5.6 -7,231 -8,987
Colombia 10,317 10,574 (a) 2.5 13,863 13,676 (a) -1.3 -3,546 -3,102Chile 15,901 15,407 -3.1 14,903 16,810 12.8 998 -1,403
Ecuador 4,362 4,890 12.1 4,195 3,733 -11.0 167 1,157
Mexico 79,516 96,000 (a) 20.7 72,444 89,469 (a) 23.5 7,072 6,531Paraguay 919 1,119 (e) 21.8 3,136 2,234 (e) -28.8 -2,217 -1,115
Peru 5,440 5,835 7.3 7,584 7,947 4.8 -2,144 -2,112
Uruguay 2,106 2,397 13.8 2,867 3,322 15.9 -761 -925
Venezuela 18,914 22,867 (e) 20.9 10,791 8,740 (e) -19.0 8,123 14,127
TOTAL 206,125 231,624 12.4 205,076 227,859 11.1 * *
(a)Provisional data.
(e)Estimate.
*No data.
Notes: Export data for Bolivia corresponds to official customs values.
Import data for Mexico and Venezuela are expressed f.o.b.
Data for Mexico includes trade generated by assembly plants (maquiladoras) .
Source: Data provided by the member countries.
Compiled by:  Department of Studies and Statistics, LAIA General Secretariat.WT/COMTD/11
Page 32
ANNEXES
LIST OF PROTOCOLS ADOPTED DURING THE PERIOD 1995-1996
ANNEX 1
TRADE AGREEMENTS
1980 Treaty of Montevideo, Article 10
"Trade agreements are exclusively aimed towards trade promotion among member countries,
and shall be subject to the specific rules to be established for that purpose."
Resolution 2 of the Council of Ministers, Article 6
(Implementing provisions)
"Such agreements shall be subject, inter alia , to the following rules:
(a) Their provisions shall be aimed towards trade objectives and accordingly shall not
comprise commitments in regard to production specialization;
(b) they shall cover those headings of the nomenclature which fall within the sector
concerned;
(c) they shall comprise tariff concessions and commitments for the elimination or
reduction of non-tariff restrictions, and may include temporary, per quota or mixed
concessions, regarding surpluses and shortfalls, and likewise measures relating to
counter-trade;
(d) they shall take special account of recommendations by the entrepreneurial sector;  and
(e) the concessions set forth therein shall be automatically extended, without the grant of
compensation, to the relatively less-developed countries, independently of negotiation
and accession to the agreement concerned."
_______________WT/COMTD/11
Page 33
Agreement No. Sector/
signatory countriesOriginal Protocol Additional Protocols
No. DateObservations
5 Chemical industry
Argentina
Brazil
Chile
Mexico
Uruguay
Venezuela20.12.82 23/Add.1
24/Add.1
S/NAdd.1
Add.2
Add.32530.3.95
30.3.95
27.6.95
20.12.95
22.12.95
23.12.9630.12.96Brazil - Mexico
Mexico - Uruguay
AR-BR-CH-ME-UR-VEBrazil - Mexico
AR-BR-CH-ME-UR-VE
Mexico - Uruguay
AR-BR-CH-UR-VE
7 A Refrigeration and air-
conditioning industry
Argentina
Uruguay24.12.82 S/N
Add.2
Add.427.6.95
22.12.95
23.12.96AR-UR
AR-UR
AR-UR
7 B Electrical household
appliances
Argentina
Uruguay24.12.82 S/N
Add.2Add.427.6.95
22.12.9523.12.96AR-UR
AR-URAR-UR
9 Electricity generation,
transmission and
distribution
Brazil
Mexico29.11.82 6/Add.1
S/N
Add.130.3.95
27.6.95
20.12.95BR-ME
BR-ME
BR-ME
10 Office machines
Argentina
BrazilMexico29.11.82 14/Add.1
S/N
Add.1Add.2
Add.430.3.95
27.6.95
20.12.9522.12.95
23.12.96BR-ME
AR-BR-ME
BR-MEAR-BR
AR-BR
12 Electronics and electrical
communications
Brazil
Mexico29.11.82 7/Add.1
S/N
Add.130.3.95
27.6.95
20.12.95BR-ME
BR-ME
BR-MEWT/COMTD/11
Page 34
Agreement No. Sector/
signatory countriesOriginal Protocol Additional Protocols
No. DateObservations
13 Phonography
Argentina
Brazil
Mexico
Uruguay
Venezuela2.12.82 10/Add.1
11/Add.1S/N
Add.1
Add.2
Add.3
1230.3.95
30.3.9527.6.95
20.12.95
22.12.95
23.12.96
23.12.96BR-ME
ME-URAR-BR-ME-UR-VE
BR-ME
AR-BR-ME-UR-VE
ME-UR
AR-BR-UR-VE
15 Chemicals and
pharmaceuticals
Argentina
BrazilMexico10.12.81 16/Add.1
S/NAdd.1Add.2Add.430.3.95
27.6.95
20.12.9522.12.9523.12.96BR-ME
AR-BR-MEBR-MEAR-BRAR-BR
16 Petrochemicals
Argentina
Brazil
Chile
MexicoUruguay
Venezuela6.12.82 35/Add.1
S/NAdd.1
Add.2
Add.430.3.95
27.6.95
20.12.95
22.12.95
23.12.96BR-ME
AR-BR-MEBR-ME
AR-BR
AR-BR
17 A Refrigeration and air-
conditioning
Argentina
Brazil15.11.82 S/N
Add.227.6.95
22.12.95AR-BR
AR-BR
17 B Household electrical,
mechanical and heating
appliances
Argentina
Brazil15.11.82 S/N
Add.227.6.95
22.12.95AR-BR
AR-BR
18 Photography
Argentina
Brazil
Mexico
Uruguay
Venezuela24.12.82 22/Add.1
23/Add.1
S/N
Add.1
Add.2
Add.32430.3.95
30.3.95
27.6.95
20.12.95
22.12.95
23.12.9623.12.96BR-ME
ME-UR
AR-BR-ME-UR-VE
BR-ME
AR-BR-ME-UR-VE
ME-URAR-BR-UR-VEWT/COMTD/11
Page 35
Agreement No. Sector/
signatory countriesOriginal Protocol Additional Protocols
No. DateObservations
19 Electronics and electrical
communications
Argentina
Brazil
Mexico
Uruguay29.11.82 12/Add.1
13/Add.1S/N
Add.1
Add.2
Add.330.3.95
30.3.9527.6.95
20.12.95
22.12.95
23.12.96BR-ME
ME-URAR-BR-ME-UR
BR-ME
AR-BR-ME-UR
ME-UR
20 Dyes and pigments
Argentina
Brazil
Chile
Mexico10.12.81 14/Add.1
S/NAdd.130.3.95
27.6.95
20.12.95BR-ME
BR-MEBR-ME
21 Chemicals (surpluses and
deficits)
Argentina
Brazil
ChileMexico
Uruguay10.12.81 26/Add.1
S/NAdd.1
Add.230.3.95
27.6.95
20.12.95
22.12.95BR-ME
AR-BR-ME-URBR-ME
AR-BR-UR
22 Essential oils, aromatic
chemicals, perfumes and
flavourings
Argentina
Brazil
Mexico29.11.82 15/Add.1
S/N
Add.1Add.230.3.95
27.6.95
20.12.9522.12.95BR-ME
AR-BR-ME
BR-MEAR-BR
26 Articles and appliances for
hospital, dental, vetinerary
and like uses
Argentina
Brazil
Mexico28.11.84 13/Add.1
S/N
Add.1
Add.230.3.95
27.6.95
20.12.95
22.12.95BR-ME
AR-BR-ME
BR-ME
AR-BRWT/COMTD/11
Page 36
Agreement No. Sector/
signatory countriesOriginal Protocol Additional Protocols
No. DateObservations
27 Glass
Brazil
Mexico
Venezuela28.11.84 4/Add.1
S/NAdd.130.3.95
27.6.95
20.12.95BR-ME
BR-MEBR-MEWT/COMTD/11
Page 37
ANNEX 2
ECONOMIC COMPLEMENTARITY AGREEMENTS
1980 Treaty of Montevideo, Article 11
"Economic complementarity agreements are aimed, among other objectives, to promote
maximum utilization of production factors, stimulate economic complementarity, ensure equitable
conditions for competition, facilitate entry of products into the international market, and encouragethe balanced and harmonious development of member countries.
These agreements shall be subject to the specific rules to be established for that purpose."
Resolution 2 of the Council of Ministers, Article 7
"Economic complementarity agreements are aimed, among other objectives, to promote
maximum utilization of production factors, stimulate economic complementarity, ensure equitable
conditions for competition, facilitate entry of products into the international market, and encourage
the balanced and harmonious development of member countries.
These agreements shall be subject to the following rules:
(a) They may be based on tariff reduction and on industrial programming;
(b) they may cover one or a number of sectors;
(c) they shall contain a programme of tariff reduction for the sector or sectors concerned,
and may provide for the elimination or reduction of non-tariff restrictions;
(d) they shall be valid for a minimum period of three years and a maximum period to be
determined in each agreement;
(e) they shall include measures to ensure the balanced 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
(f) 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 programmes and incentives designed to facilitate
economic complementarity, and harmonization 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; andWT/COMTD/11
Page 38
(v) definition of other measures for harmonization 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."
Agreement No. Sector/
signatory countriesOriginal Protocol Additional Protocols
No. DateObservations
2B r a z i l
Uruguay
(TEP)20.12.82 20
211.9.95
4.3.96Trade Expansion Protocol (TEP)
4C h i l e
Uruguay1.2.85 5
6
788.6.95
7.12.95
29.3.9628.6.96
5M e x i c o
Uruguay7.5.86 6
78
9
101130.3.95
31.3.9522.6.95
20.11.95
23.12.9631.12.96
6 Argentina
Mexico24.10.86 3
4
56
7
827.3.95
30.3.95
31.3.9522.6.95
20.11.95
20.12.96
8M e x i c o
Peru25.3.87 Adjustment
Protocol
1
229.1.95
20.12.95
18.12.96
9 Argentina
Peru11.3.88 4
67
827.6.95
20.12.9520.12.95
18.12.96
11 Argentina
Colombia28.4.88 3
45
630.5.95
27.6.95
23.11.95
10.12.96
16 Argentina
Chile2.8.91 14
15
1617
188.6.95
7.7.95
7.12.9529.3.96
27.6.96
18 Argentina
Brazil
ParaguayUruguay29.11.91 14
16
177.11.95
2.8.96
9.12.96WT/COMTD/11
Page 39
Agreement No. Sector/
signatory countriesOriginal Protocol Additional Protocols
No. DateObservations
20 Argentina
Venezuela6.10.92 2
3
427.6.95
12.12.95
10.12.96
21 Argentina
Ecuador15.3.93 3
4
523.6.95
1.12.95
11.12.96
22 Bolivia
Chile6.4.93 6 11.11.95
23 Chile
Venezuela2.4.93 2 11.10.95
24 Colombia
Chile6.12.93 3
4520.5.95
9.1.96
31.5.96
25 Brazil
Peru31.12.93 3
4
5
6727.6.95
22.12.95
20.12.95
10.12.9626.12.96
27 Brazil
Venezuela15.7.94 3
45
627.6.95
4.7.95
12.12.95
10.12.96
28 Ecuador
Uruguay1.5.94 2
3
423.6.95
1.12.95
11.12.96
30 Ecuador
Paraguay15.9.94 2
34
525.4.95
23.6.951.12.95
19.12.96
32 Chile
Ecuador20.12.94 1 21.3.95
34 Argentina
Bolivia
BrazilParaguay
Uruguay7.12.95 1
226.12.95
31.12.96
35 Argentina
Brazil
ChileParaguay
Uruguay30.9.96 1 18.11.96
36 Argentina
Bolivia
BrazilParaguay
Uruguay17.12.96 - -WT/COMTD/11
Page 40
ANNEX 3
AGRICULTURAL AGREEMENTS
1980 Treaty of Montevideo, Article 12
"Agricultural agreements are aimed to promote and regulate intraregional trade of agricultural
and livestock products.  They shall contemplate flexibility elements bearing in mind the participating
countries' socio-economic characteristics of production.  These agreements may refer to specificproducts or groups of products, and may be base d on temporary, seasonal, per quota or mixed
concessions, or on contracts between State or para-State organizations.  They shall be subject to the
specific rules to be established for that purpose."
Resolution 2 of the Council of Ministers, Article 8
"Agricultural agreements are aimed to promote and regulate intraregional trade of agricultural
and livestock products.  They shall contemplate flexibility elements bearing in mind the participating
countries' socio-economic characteristics of production.  These agreements may refer to specificproducts or groups of products, and may be base d on temporary, seasonal, per quota or mixed
concessions, or on contracts between State or para-State organizations.
They may contain, inter alia , provisions in regard to:
(a) Volume and conditions of marketing;
(b) period of validity of the agreement;(c) sanitary and quality requirements;
(d) price-setting systems;
(e) financing;
(f) information mechanisms;  and
(g) commitments on inputs or goods related to the agricultural sector."
________________WT/COMTD/11
Page 41
Agreement
No.Sector/
signatory countriesOriginal Protocol Additional Protocols
No. Date
2 Liberalization and expansion of
intraregional trade in seeds
Argentina
Bolivia
Brazil
Chile
ColombiaCuba
Ecuador
ParaguayPeru
Uruguay
Venezuela22.11.91 01
0229.8.95
30.8.95WT/COMTD/11
Page 42
ANNEX 4
OTHER TYPES OF PARTIAL-SCOPE AGREEMENT
1. 1980 Treaty of Montevideo, Article 13
"Trade promotion agreements shall refer to non-tariff matters and tend to promote
intraregional trade flows.  They shall be subject to the specific rules to be established for that
purpose."
Resolution 2 of the Council of Ministers, Article 9
"Trade promotion agreements shall refer to non-tariff matters and tend to promote
intraregional trade flows.
To this end, they may take into consideration, among other matters, the following aspects:
(a) Trade rules:
- Subsidies and countervailing measures;
- unfair business practices;
- import licensing and formalities;
- other technical matters relating to regional trade.
(b) Other rules relating to non-tariff matters:
-P a y m e n t s ;
- financial cooperation;
- animal and plant health cooperation;
- customs cooperation;
- facilitation of transport;- government procurement."
__________________
Agreement
No.Sector/
signatory countriesOriginal Protocol Additional Protocols
No. Date
9 Energy Cooperation
Paraguay
Uruguay12.4.96 - -WT/COMTD/11
Page 43
2. 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 promotion 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 promotion and preservation of the environment."
Agreement
No.Sector/
signatory countriesOriginal Protocol Additional Protocols
No. Date
9 Allocation and use of television
transmission and relay stations
Argentina
Brazil
ParaguayUruguay22.5.95 - -
10 Transportation contract and civil
liability of the carrier in the
international carriage of goods by road
Bolivia
Brazil
Chile
ParaguayPeru
Uruguay16.8.95 --WT/COMTD/11
Page 44
ANNEX 5
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 into 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 concessions 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 co nsistent 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 agreements shall be applicable exclusively to
the countries which sign or accede to them.
The agreements referred to in the preceding Article shall be based on the grant of preferences
in respect of the customs duties and/or other restrictions applied by the countries participating therein
to the import of negotiated products originating in their respective territory.
The preferences recorded in those 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 ofthe Association."
________________WT/COMTD/11
Page 45
Agreement
No.Sector/
signatory countriesOriginal Protocol Additional Protocols
No. Date
3B r a z i l
Chile30.4.83 16
17187.12.95
29.3.9528.6.96
9B r a z i l
Mexico30.4.83 02
030430.3.95
22.6.95
20.11.95
10 Brazil
Colombia30.4.83 03
0405
0622.6.95
23.11.95
8.3.96
25.9.96
11 Brazil
Ecuador30.4.83 08
0910
1123.6.95
1.12.9528.3.96
11.12.96
18 Colombia
Paraguay30.4.83 Adjustment
Protocol
01
020310.2.95
23.6.95
27.12.9519.12.96
6.3.95
20 Paraguay
Peru30.4.83 Adjustment
Protocol
01
02036.3.95
23.6.95
27.12.9519.12.96
21 Paraguay
Venezuela30.4.83 Adjustment
Protocol
0102
038.6.95
23.6.95
27.12.95
19.12.96
23 Colombia
Uruguay30.4.83 02
030423.6.95
23.11.9510.12.96
25 Uruguay
Venezuela31.12.81 05
06
0723.6.95
12.12.95
10.12.96
26 Argentina
ChileParaguay
Uruguay30.4.83 32
33
3436
3722.6.95
(CH-PA)
27.6.95
(AR-PA-UR)
7.12.95
(CH-PA)
9.4.96
(CH-PA)
28.6.96
(CH-PA)
28 Chile
Peru30.4.83 02
03
043.4.95
22.11.95
10.12.96
33 Peru
Uruguay30.4.83 Adjustment
Protocol
0102
0322.6.95
23.6.95
12.12.95
18.12.96
38 Mexico
Paraguay30.4.83 01
020322.6.95
27.12.9530.12.96WT/COMTD/11
Page 46
ANNEX 6
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-scopeagreements provided for in the third section of the present Chapter."
_________________WT/COMTD/11
Page 47
Agreement
No.Sector/
signatory countriesOriginal Protocol Additional Protocols
No. Date
AM/01 Argentina
BoliviaBrazil
Chile
Colombia
Ecuador
MexicoParaguay
Peru
UruguayVenezuela30.4.83 ADEC 9 23.6.95
(BO-PE)
AM/02 Argentina
BoliviaBrazil
Chile
ColombiaEcuador
Mexico
ParaguayPeru
Uruguay
Venezuela30.4.83 02/
ADEC 930.1.95
(EC-PE)
AM/03 Argentina
Bolivia
Brazil
Chile
Colombia
EcuadorMexico
Paraguay
PeruUruguay
Venezuela30.4.83 03/
ADEC 910.2.95
(CO-PA)
CYT/06 Argentina
BoliviaBrazil
Chile
ColombiaCuba
Ecuador
MexicoParaguay
Peru
UruguayVenezuela19.10.93 AD/01
(Formalizes10.2.95
accession)WT/COMTD/11
Page 48
ANNEX 7
AGREEMENTS CONCLUDED BY MEMBER COUNTRIES WITH
NON-LAIA LATIN AMERICAN COUNTRIES
1980 Treaty of Montevideo, Article 25
"Likewise, member countries may draw up partial-scope agreements with other Latin
American countries and areas of economic integration, in accordance with the various modalitiesforeseen in the third section of Chapter II of the present Treaty, and under the terms of the respective
regulative provisions.
Notwithstanding the above, these agreements  shall be subject to the following rules:
(a) Concessions granted by participating member countries shall not be extensive to the
others, excepting the relatively less-developed countries;
(b) when a member country includes products already negotiated in partial agreements
with other member countries, concessions granted may be higher than those agreedwith the former;  in this case, consultati on 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
preferences contained in the partial agreements referred to in the present Article;  and
(c) they shall be multilaterally assessed by the member countries within the Committee
in order to ascertain the scope of the agreements drawn up and facilitate participation
of other member countries therein."
_______________WT/COMTD/11
Page 49
Agreement
No.Sector/
signatory countriesOriginal Protocol Additional Protocols
No. Date
4 Argentina
Cuba16.3.84 4
5
627.6.95
20.12.95
31.12.96
10 Mexico
Guatemala4.9.84 9
105.6.95
24.5.96
11 Honduras
Mexico3.12.84 3
421.9.95
4.10.96
13 Mexico
Nicaragua8.4.85 2
32.5.95
14.3.96
15 Mexico
El Salvador6.2.86 4 18.6.96
17 Uruguay
Cuba6.3.87 2
3
427.6.95
20.12.95
31.12.96
21 Brazil
Cuba16.10.89 3
4
527.6.95
20.12.95
31.12.96
33 Colombia
Cuba8.7.94 1 17.5.95
34 Bolivia
Cuba6.5.95 1 11.6.96
35 Venezuela
Cuba14.11.95 1 17.6.96