Review
The Economic Complementation Trade Agreement (ACE) No. 35 between Mercosur and Chile entered into force in October 1996. Since then, various aspects of the original agreement have been updated, incorporating entire chapters on various topics. Each of these modifications is formalized through instruments called "Additional Protocols" (AP), of which there are currently 69.
These Additional Protocols must be incorporated into the domestic legal framework of each signatory country. In particular, Today, September 30, 2025, PA number 69, corresponding to Annex 13 of the Agreement, which regulates the “Origin Regime”, comes into force.
This new regime replaces the previous one and establishes the rules of origin that products must meet to benefit from the tariff preferences of this preferential agreement. It should be noted that in most cases, tariff reductions are already 100% preferential, meaning that if the product meets the rule of origin, it enters the market without paying tariffs.
Although the update and modernization was agreed upon on June 6, 2024, its implementation in trade between Argentina, Brazil, and Chile becomes effective today. For Paraguay and Uruguay, its incorporation will depend on internal procedures that are still pending.
Main Modifications
Towards the end of 2021 and until June 2024, ten meetings of the Group of Origin Experts were held, the last one being the X Ordinary Meeting held from June 3 to 6, 2024, date until which proposals for improvements and adjustments to the Regime were made, which were finally agreed upon.
The updates include the following:
- The entire text of the Regime was revised, improving the clarity of its wording;
- Articles on definitions were incorporated, tolerance, beginning of non-alteration;
- Extension of the validity period of the certificate of origin for one year;
- Incorporation of the possibility of self-certification to be agreed upon by the parties that so wish (without prejudice to the maintenance of certification by entities and the promotion of use of the COD in current use and validity);
- Change in the formula for calculating the value of materials, which must now measure the maximum value of non-originating materials instead of the regional added value;
- Redefinition of the Affidavit of Origin (DJO);
- Optimization of the verification and origin control process and timelines.
It is worth noting that these modifications were largely influenced by the Mercosur Rules of Origin (ROM) established in DEC. CMC No. 05/23 and the large number of trade agreements that both Chile and Mercosur negotiated during 2024 and are currently negotiating, which, on the one hand, guarantee and, on the other, oblige countries to deploy their resources to implement these updates and modernizations in the applicable rules of origin.
Also, taking advantage of the negotiation context, the bilateral automotive appendices that each MERCOSUR partner has with Chile were reviewed on that occasion, and specifically in the case of Argentina, the rules for this sector were made more flexible and criteria applicable to new technologies and models were included.
Regarding the Agreement's Appendix on Origin Requirements, which applies to all partners, some flexibilities were introduced that are in line with the above and the new ROM.
Towards the future
The constant updating and modernization of the Origin Regimes, and on this occasion in particular for this trade agreement with one of the main partners of MERCOSUR, represents a significant achievement for both the MERCOSUR countries and Chile, improving the negotiated conditions aimed at promoting bilateral trade. This is important not only due to the geographical proximity and the fully tariff-free nature of trade, but also to ensure consistent and transparent rules that guarantee access to these benefits.
As a final reflection, it is important to consider that if the tariff advantage provided in an agreement is the gateway to a market, the negotiated rules of origin are the key to unlocking it.
She holds a degree in International Trade (Universidad Nacional de Luján) with postgraduate studies in the Master's Degree in International Economic Relations (Universidad Nacional de Tres de Febrero). She has been a professional development fellow of the Organization of American States (OAS) at the George Washington University School of Law (USA). In the academic field, she is a professor at the Universidad Nacional de Luján. In the professional field, she has been an official of the Secretariat of Commerce dependent on the Ministry of Economy of the Nation, since 2005. Currently, she is the National Coordinator of the Technical Committee No. 3 "Trade Standards and Disciplines" in charge of the negotiations of rules of origin of MERCOSUR; in addition, she is the Alternate National Coordinator of the Technical Committee No. 8 "Transposition of nomenclature of trade agreements with third countries and groups of countries" also of MERCOSUR.
