Summary.
The bill proposes to approve in full Economic Complementation Agreement No. 76, signed in the city of Montevideo by the Republic of Panama and the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay, and the Eastern Republic of Uruguay, as MERCOSUR States Parties that signed the Treaty of Asunción. The agreement is concluded within the framework of the 1980 Treaty of Montevideo and Resolution 2 of the Council of Ministers of the Latin American Free Trade Association. Its objectives include providing economic operators with legal certainty and transparency, promoting reciprocal investment, and moving toward a Free Trade Area by removing tariffs, restrictions, and other barriers to trade. It also provides for economic cooperation, stronger logistics and infrastructure links, use of information technology, international electronic commerce, and consideration of economic differences among the parties.
The approved agreement encompasses agreements concluded, or to be concluded, between the Republic of Panama and each MERCOSUR State Party under the 1980 Treaty of Montevideo, together with agreements concluded between MERCOSUR and Panama under that treaty and this agreement. It provides for periodic negotiations to expand and deepen them progressively. Each covered agreement would be governed by its own provisions and would remain in force until a Free Trade Agreement between MERCOSUR and the Republic of Panama is implemented. To support trade in goods and services, the parties would encourage business meetings, trade promotion activities, improvements to regional logistics infrastructure, and exchanges of information on trade policies, knowledge, and innovation.
Administration would rest with an Administrative Commission (Comisión Administradora) composed of the MERCOSUR Common Market Group (Grupo Mercado Común del MERCOSUR) and the Office of International Trade Negotiations (Oficina de Negociaciones Comerciales Internacionales) of Panama’s Ministry of Commerce and Industry (Ministerio de Comercio e Industrias de la República de Panamá). The commission would adopt its internal rules, hold ordinary meetings at least once a year, and meet extraordinarily when the parties agree. It would decide by consensus, defined as the absence of a formal, reasoned objection. The agreement would allow other members of the Latin American Integration Association (Asociación Latinoamericana de Integración) to accede through negotiation. It would enter into force thirty (30) days after all parties notify the General Secretariat of ALADI (Secretaría General de la ALADI) that they have met their legal requirements, and would remain in force until replaced by a Free Trade Agreement. Amendments and additions would require consensus and protocols; the General Secretariat of ALADI would serve as depositary.
The final article provides that the approving law would take effect upon promulgation. The bill concerns the institutions responsible for administering and holding the agreement and could affect or interest the goods and services trade, investment, logistics, infrastructure, and electronic commerce sectors.
What it proposes.
- Approval of Economic Complementation Agreement No. 76.
- Coverage and administration of trade agreements between the parties.
- Cooperation, accession, amendments, and duration of the agreement.
Who it would affect.
- The Republic of Panama and the MERCOSUR States Parties that signed the Treaty of Asunción.
- The institutions responsible for administering and holding the agreement.
- Economic operators involved in trade, services, and investment between the parties.
Key points.
- Approves in full Economic Complementation Agreement No. 76 between the Republic of Panama and the MERCOSUR States Parties that signed the Treaty of Asunción.Art. 1
- The agreement sets objectives for transparency, reciprocal investment, removal of trade barriers, and cooperation in logistics, infrastructure, and electronic commerce.Art. 1
- It covers bilateral agreements with each State Party and future agreements between MERCOSUR and Panama, with periodic negotiations to expand them.Art. 1
- It provides for trade promotion, trade facilitation, logistics improvements, and exchanges of information and knowledge.Art. 1
- It establishes an Administrative Commission with MERCOSUR and Panamanian representation, periodic meetings, and decisions by consensus.Art. 1
- It governs accession by other members of the Latin American Integration Association, entry into force, amendments, and deposit of the agreement.Art. 1
- It provides that the approving law would take effect upon promulgation.Art. 2