The Presidents of the MERCOSUR Member States, as well as the President of the State in the Accession Process, released this Thursday (07.12.2023) a final declaration, which reveals the agreement between the five countries after reviewing the work carried out during the second half of 2023, on the occasion of the Brazilian Pro Tempore Presidency.
Signed during the 28rd MERCOSUR Summit of Presidents in the city of Rio de Janeiro, the declaration presents XNUMX points of consensus between Argentina, Brazil, Paraguay, Uruguay and Bolivia.
It was up to the Brazilian government, as host of the Summit, to present a base text, which was then analysed and adjusted by the other countries.
In detail,
1. COMMON EXTERNAL TARIFF OF MERCOSUR
In the economic and commercial sphere, the Presidents highlighted the importance of improving the Common External Tariff (CET), an opportunity provided by the one-year extension of the Group's mandate. to Examine the Consistency and Dispersion of the Common External Tariff (GAHAEC).
2.AUTOMOTIVE SECTOR
They stressed the importance of continuing to analyze alternatives for the inclusion of the automotive sector in the MERCOSUR agreements, taking into account the current bilateral agreements and the potential commercial gains derived from the harmonization of rules within the bloc.
3. REVIEW OF THE MERCOSUR REGIME OF ORIGIN
They committed to continue working to internalize and implement the new MERCOSUR Origin Regime (ROM), concluded in July 2023 in Puerto Iguazú, an essential instrument for the integration of the productive sectors of the Member States, which is being modernized with the aim of simplifying the rules and adapting them to the reality of international trade.
4.CUSTOMS AFFAIRS AND TRADE FACILITATION
They highlighted the importance of the "Technical Study on the Status and Situation of the Level of Integration of the Integrated Control Areas MERCOSUR"And, aware of the work being carried out, they expressed their willingness to resolve the difficulties identified in order to strengthen regional infrastructure and facilitate trade.
5.DEFENCE OF COMPETITION
They welcomed the resumption of work by Technical Committee No. 5 on “Defense of Competition” and highlighted the consensus reached in the Work Program that will promote regional cooperation and the culture of competition among the countries of the bloc.
6. CONSUMER PROTECTION
They highlighted the holding of two meetings of Technical Committee No. 7 "Consumer Protection", which sought to deepen cooperation on issues of consumer protection and defense in MERCOSUR, and welcomed the progress in the development of manuals of good practices for consumer protection within the bloc.
7.FOREIGN TRADE STATISTICS
They highlighted the talks aimed at improving the functioning of the Foreign Trade System (SECEM) of the MERCOSUR Secretariat and reaffirmed the need to continue strengthening its technological infrastructure to improve the availability of statistical information on foreign trade in MERCOSUR, both for its role as a tool for the analysis of trade flows, and for its usefulness for commercial operators and interested third parties.
8.SERVICES
They celebrated the conclusion of the VIII Round of Negotiations on Specific Commitments in the Area of Services, which has brought important advances in the liberalization of trade in services to deepen the integration of the region's economies.
9.SUGAR SECTOR
They stressed the importance of continuing the work of the Ad Hoc Group on the Sugar Sector to define the elements of the terms of reference for the study of the current context of the sugar sector and related industries in MERCOSUR, in order to suggest alternatives to promote their best use by increasing the competitiveness of their products in the Member States, as well as facilitating access to extra-regional markets.
10. ORGANIC PRODUCTS
They welcomed the approval of the creation of the Commission of Specialists in Organic Production (CEPOR), which took place within the framework of Subgroup of Work No. 8 "Agriculture" (SGT No. 8), which aims to carry out studies and analyses of standards and procedures seeking to promote trade in organic products among the States Parties, evaluating the possibility of mutual recognition of the equivalence of technical regulations and standards for the assessment of conformity of production, processing, identification, labelling and control systems of organic products in the States Parties.
11. REGULATORY ISSUES
They highlighted the development of a roadmap to guide the work related to the regulatory process of the bloc and pointed out the importance of perfecting it to obtain results that avoid unnecessary barriers to trade and facilitate trade flows between countries in the region and with third countries.
12.MERCOSUR BUSINESS FORUM
They highlighted the holding of the XI Edition of the MERCOSUR Business Forum, a space that promotes the participation of the private sector in the integration process, with the aim of improving the articulation with the public sector. Among the expected results of the organization of the Business Forum is that the recommendations derived from the seminars and business meetings (“B2B”) organized will be used in future interactions between businessmen of the block.
In this context, they took note of the activities carried out in their various segments:
- Challenges and Strategies for the Health Economic-Industrial Complex;
- Trade and Sustainability;
- Female Entrepreneurship in MERCOSUR; and
- Productive Integration in MERCOSUR.
13.TRADE AND GENDER
They welcomed the holding of the eighth meeting on Gender and Trade in Regional Blocks, which had as its theme “Strategies for actions to promote and strengthen the businesses of MERCOSUR businesswomen”. On that occasion, it was decided to promote the certification of the Women's Business Seal, as a tool for promoting gender equality, to benefit not only businesswomen, but also a more just and equal society in favor of sustainable and equitable development.
14. FUND FOR THE STRUCTURAL CONVERGENCE OF MERCOSUR (FOCEM)
They agreed on the need to continue the Fund for Structural Convergence of MERCOSUR (FOCEM) as a fundamental tool for strengthening the integration process and highlighted the importance of the mechanism for overcoming the existing asymmetries between the countries and regions of the bloc.
In this regard, they welcomed the publication of a decree by the Brazilian government that establishes a process with criteria for the selection of projects that will be submitted for selection in the first half of 2024. They also welcomed the criterion defined by Brazil to favor projects in municipalities up to 150 km from the border.
15.TRADE AND SUSTAINABLE DEVELOPMENT
They recognized the work that the Group is doing on Trade and Sustainable Development to fulfil its mandate, particularly with regard to assessing the contribution of trade to achieving sustainable development in its three dimensions, giving visibility to the policies implemented by the States Parties to promote sustainable development in their production systems, from a perspective of social inclusion and environmental conservation, and identifying the measures and regulations adopted by third parties that could affect trade and sustainable development in the region. In this regard, they welcomed the renewal of the Group's mandate for an additional year.
16.DIGITAL AGENDA
They welcomed the progress made in the negotiation of a MERCOSUR instrument for cooperation on cybersecurity, which will serve to improve the coordination, response and collaboration of the national authorities of the States Parties against the malicious use of cyber technologies, in order to promote an open, secure, stable, accessible, peaceful and interoperable cyberspace. They also took note of the work on mapping the respective national regulatory frameworks and taxonomy studies.
17.ELECTRONIC COMMERCE
They welcomed the entry into force of the "MERCOSUR Electronic Commerce Agreement" between Paraguay and Uruguay.
They agreed on the importance of ratifying the Agreement, which establishes a legal framework for rules and principles relating to electronic commerce in MERCOSUR, and facilitates the establishment of bases for the development of directives for the negotiation of this issue in external relations.
In an international context of growing digital and data gaps (“data and digital divide”), the ratification of the Agreement will allow MERCOSUR to better position itself on key issues of the digital economy, favouring clauses that encourage greater inclusion of developing countries in global electronic commerce. The agreement is consistent with international standards of electronic commerce, which will facilitate the bloc's trade relations with other countries and regions.
18.HEALTH
They emphasized the commitment to universal, equitable and comprehensive access to health and highlighted the importance of coordinated actions to strengthen national and regional capacities for the production of inputs, medicines, vaccines and other health technologies in pursuit of regional self-sufficiency. In this context, they welcomed the completion of the first "Course on the Production and Development of Vaccines for MERCOSUR Member States and Associates."
They recognized the importance of proactive and coordinated action by the States Parties and Associated States of MERCOSUR in multilateral health areas, based on a common vision of promoting equity, solidarity and comprehensive access to health. They highlighted the coordination in the ongoing negotiations within the framework of the WHO Intergovernmental Negotiating Body (INB) to develop an international instrument on prevention, preparedness and response to pandemics, as well as in the Working Group on Amendments to the International Health Regulations (WGIHR).
They highlighted the importance of coordinating health surveillance actions, and in this context they celebrated the launch of the first MERCOSUR Epidemiological Bulletin, with the aim of sharing epidemiological information on diseases and injuries relevant to public health among the MERCOSUR Member States, in order to support integrated action strategies.
They emphasized their willingness to deepen cooperation actions in health at the border, and welcomed the results of the project "Promoting Healthy and Safe Borders of MERCOSUR," carried out with the Pan American Health Organization (PAHO), which enabled progress in joint activities of epidemiological surveillance; vaccination at the border; establishment of emergency and urgent networks; and development of a contingency plan for preparation and response to public health emergencies.
They recognized the importance of coordinated action among the States Parties in the implementation of the Operational Plan of the MERCOSUR Strategy on Climate Change and Health, especially actions to adapt national health systems to the effects of climate change, with emphasis on the vulnerability, risks and resilience of the systems, as well as coordination in participation in the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), in Dubai.
19.BORDER INTEGRATION
They stressed the importance of ensuring that the benefits of regional integration reach and can be enjoyed by the citizens of the border areas and, in this context, agreed on the need to move forward with the internal procedures for legislative approval and promulgation of the MERCOSUR Border Localities Agreement. They also recalled that this Agreement is an important instrument to facilitate the movement of residents and enable the population of the linked border localities to access benefits in the areas of education, work, health, transportation and trade of subsistence goods, among others.
They reiterated their commitment to achieving border integration that prioritizes the needs of the populations living within the borders shared by the States Parties and promotes the development of regional economies, so that border localities realize their full potential and achieve broader regional integration among the States Parties of MERCOSUR.
20. AGRICULTURE
They committed to defending a fair, transparent, equitable and predictable international trade system for agricultural products, reaffirming the terms of the “Declaration on the Reform of Multilateral Agricultural Trade Rules” signed by 16 Latin American countries, including the States Parties to MERCOSUR.
21.PHYSICAL INFRASTRUCTURE
They welcomed the extensive work agenda developed by the Subgroup of Work No. 14 “Physical Infrastructure” which included, among other topics, road safety, logistics, as well as cargo and passenger transport by chartered aircraft. In this regard, they welcomed the holding of Seminars on the TIR Convention for cargo transport in transit and the New Agenda Infrastructure for South America.
22.SCIENCE AND TECHNOLOGY
They highlighted the sustained collaboration in science and technology between the countries of the bloc, especially through the MERCOSUR Awards for Science and Technology and for Scientific Dissemination and Journalism, the work of the Regional Platform for Alternative Methods to the Use of Animals through training courses, the survey of MERCOSUR research infrastructures, support for startups and innovation, and the commitment to work on digital transformation, artificial intelligence and the development of infrastructure for the promotion of data-oriented science. In this regard, they welcome the strengthening of scientific diplomacy and the adoption of a Recommendation for non-commercial Open Science with regional impact in MERCOSUR.
They reiterated their intention to increase scientific and technological production within MERCOSUR and their ongoing efforts to develop joint research.
23.ENERGY
They welcomed the work of the Subgroup on Energy and the importance of continuing to advance in the energy integration of the region, especially with regard to electrical interconnection, in order to take advantage of the complementarity and seasonality of the energy resources of the countries in the region and to allow for greater incorporation of intermittent renewable energy sources into the distribution networks. The deepening of gas integration, in turn, could also contribute to the energy integration of the region, allowing the use of natural gas to cover the intermittency of renewable sources.
SGT No. 9 was instructed to deepen the collaboration of the Bloc with OLADE in the context of energy integration.
They finally reiterated the importance of pursuing a fair and inclusive energy transition that takes into account the specific characteristics of the region.
24. MINING AND GEOLOGY
They welcomed the holding of the XXXI meeting of the Subgroup of Work No. 15 "Mining and Geology", in which a dialogue on critical minerals for the energy transition was organized, with the participation of the States Parties and Associates of MERCOSUR. National policies were presented and the insertion of South American countries in the global production chains of critical minerals for the energy transition was discussed, so that it is not limited to the supply of raw materials and takes into account the need for value addition in the territory of the countries of the region.
25. INSTITUTIONAL AND SOCIAL ASPECTS
They reaffirmed their commitment to the role of the MERCOSUR Parliament, taking note of the different opportunities for dialogue between the decision-making bodies of MERCOSUR and parliamentary representatives of the bloc.
They stressed the importance of institutional strengthening of MERCOSUR bodies, in recognition of their central role in supporting and implementing activities decided by the various bodies of the bloc.
They welcomed the growing interest of the Associated States in participating in forums on the social and citizen agenda of MERCOSUR, as well as in the MERCOSUR Forum for Political Consultation and Coordination, emphasizing the benefits of greater cooperation and dialogue on these issues for the integration of South America and the improvement of the living conditions of the populations of the region.
They highlighted the role of the Institute of Public Policies on Human Rights and the Social Institute of MERCOSUR in the social and citizen agenda, and agreed to continue evaluating ways to promote greater participation of the Associate States in the activities of the institutes.
They celebrated the holding of the MERCOSUR Social Summit, on December 4 and 5, in Rio de Janeiro, and, while thanking the input received from the participating organizations and social movements, stressed the importance of ensuring social participation in the bloc in favor of consolidating and deepening regional integration.
They welcomed the approval of the Protocol of Accession of the Plurinational State of Bolivia to MERCOSUR by the Federative Republic of Brazil.
26.COOPERATION
They agreed on the importance of joint work in cooperation with different similar agencies and organizations, such as: the Community of Portuguese Speaking Countries (CPLP), the Pan American Health Organization (PAHO/WHO), the Organization of Ibero-American States for Education, Science and Culture (OEI), among others, in order to implement cooperation projects of interest to the bloc.
They took note of the approval by the Common Market Group (GMC) of the Project “Agreement on Linked Border Localities: Survey and Legislative Harmonization”, prepared in collaboration with the EUROFRONT Program of the European Union, with the objective of subsidizing the States Parties in matters related to immigration, labor, customs, social security, access to health and education, in support of the implementation of the Agreement on Linked Border Localities.
They congratulated the holding of the "Regional Seminar: Health and Safety of Production and Food of Family, Peasant and Indigenous Agriculture", on November 29 and 30, 2023, being the first activity carried out with the own resources of the Cooperation Agencies of the MERCOSUR countries, in collaboration with the Specialized Meeting on Family Agriculture (REAF).
27. REGIONAL EXTERNAL AGENDA
They pledged to continue improving trade agreements with Chile, Colombia and Peru. In this regard, they emphasized the importance of moving forward with updating the Regime of Origin with Chile, access to the agricultural market, the dispute settlement regime and updating the tariff nomenclature with Colombia, as well as access to the agricultural market, free trade zones and digital certification of origin with Peru. They highlighted the progress in the discussions of the terms of reference with Ecuador, which will make it possible to negotiate a renewed and expanded trade agreement within the ALADI framework.
They underlined the efforts of the bloc to expand trade with Central America and the Caribbean. In this context, they noted the progress in the negotiations of the terms of reference for a possible trade agreement with El Salvador. Likewise, in light of the progress achieved in the area of the Memorandum of Understanding between MERCOSUR and the Dominican Republic for the Promotion of Trade, Investments and Productive Chains, they highlighted the willingness to launch, as soon as possible, negotiations for a mutually beneficial trade agreement between the bloc and that country.
They took note of the extension of the Drawback Regime and temporary admission to the Economic Complementation Agreement between MERCOSUR and Bolivia (ACE No. 36), a beneficial tool to support trade operations in the context of the aforementioned Agreement, and which also allows for diversifying and strengthening MERCOSUR's trade with the Plurinational State of Bolivia. In addition, they were open to discussing the mechanism for the accumulation of origin of this Agreement.
28. EXTRA-REGIONAL EXTERNAL AGENDA
They welcomed the progress made in the agenda of extra-regional trade negotiations, which prioritized the negotiation processes concluded "in principle" so that the MERCOSUR countries can deepen their insertion in interregional chains, attract investments, increase exports and generate quality employment.
They welcomed the signing of the Free Trade Agreement between MERCOSUR and Singapore, an important trading partner of the bloc, and the first MERCOSUR agreement with a country in the Asia-Pacific region, which constitutes an important step in the bloc's rapprochement with that region.
They recorded the considerable progress achieved in the negotiation of the MERCOSUR-European Union Association Agreement, After an intense period of rounds of negotiations, which covered a wide range of issues, they agreed to continue working towards its conclusion and signing, in order to ensure that the Agreement is balanced and equitable for the parties.
At the same time, they reiterated their concern about the evolution of legislative initiatives that could result in restrictive trade measures affecting MERCOSUR agricultural exports.
They took note of the exchanges held with EFTA representatives throughout the semester and renewed their commitment to accelerate the tasks that will allow for the prompt signing of the trade agreement with MERCOSUR.
They reiterated their expectations of promptly agreeing to an exploratory dialogue with the United Arab Emirates that would contribute to a sustained increase in trade, investments and cooperation between the parties. They stressed their willingness to launch, as soon as possible, negotiations for a mutually beneficial trade agreement between the bloc and that country.
They noted the contacts and exchanges with Canada and Indonesia, in the framework of the respective ongoing negotiations. They also followed up on the exchanges with Vietnam in the context of the relationship with that country.
In this space for dialogue, Paraguay received the Pro Tempore Presidency of the economic integration mechanism from the host country, to continue working on pending challenges in the first half of 2024.
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
