Argentina Brazil Free Trade Agreement

In addition, the Committee on Trade should decide on the issues raised by Member States regarding the application and respect of common sea tariffs and other common trade policy instruments. The Commission meets at least once a month, at the request of the Executive Agency Mercosur or a Member State. The Commission can make decisions on the management and implementation of trade policies decided within the framework of the Southern Common Market and, if necessary, submit proposals to the executive body to regulate the territories under its control; In addition, it may propose new guidelines or amend existing trade and customs guidelines under Mercosur. In this context, the Committee on Trade may propose a change in import duties on certain posts within the framework of common external tariffs, including cases related to the development of mercosur`s new production activities. In order to better achieve its objectives, the Trade Commission can set up technical committees to manage and monitor the work it refines. It can also adopt internal operating rules. The proposals and decisions of the Trade Commission are taken by consensus among the representatives appointed by each member country. All disputes arising from the application, interpretation or compliance of the acts adopted by the Committee on Trade are referred to the Mercosur executive body and should be resolved on the basis of the directives of the Southern Common Market Dispute Settlement System. In the event that the producing country provides specific incentives for production under free trade zones that are not compatible with the corresponding guidelines of the General Agreement on Tariffs and Trade (GATT), the Member State will be able to make all necessary adjustments to rebalance the situation. Mercosur`s work is not universally recognized in the countries concerned.

Chile has, to some extent, preferred to pursue bilateral agreements with trading partners, and Uruguayan politicians have asked to follow suit. [54] If Brazil, Paraguay and Uruguay decide to pursue their ambitious trade negotiations and sign new free trade agreements, but Argentina does not accompany them, there will inevitably be a time when the three countries will have to decide whether to break or relax Mercosur. For example, if a trade agreement is concluded with Canada, but Argentina remains outside the agreement, it would mean that Canada`s exports to Brazil would be preferential tariffs, but Canadian exports to Argentina would still face the high level of common tariff (CET) that all imports to Mercosur must pay today. The more Mercosur`s trade agreements sign that Argentina does not comply, the less meaningful the CET is. In fact, the customs union would be dismantled. To do so, either the Mercosur rules must be relaxed so that members can sign trade agreements without unanimity, or the founding treaty of Asuncion must be violated, which means the end of Mercosur.