The governments of Uruguay and Brazil signed this Monday (20.06.2022) two protocols that establish the Elimination of tariffs on goods produced in free trade zones from both countries and a document on yerba mate trade.
The agreement was signed, at the headquarters of the Latin American Integration Association (Aladi), among representatives of that regional organization, Ambassador Ana Inés Rocanova, from Uruguay, and Ambassador Antonio José Ferreira Simoes, from Brazil. According to official information, ALADI's Secretary General, Sergio Abreu, also participated.
Bustillo stated that The protocols are contemplated in the agreement signed on June 9 with his Brazilian counterpart, Foreign Minister Carlos França, in Los Angeles, during the Summit of the Americas.
On that occasion, they signed a declaration and two protocols, one of which refers to commercial exchange in free zones and the other to the technical requirements related to yerba mate.
The reference to free zones allows for the total and immediate reduction of the common external tariff on all goods included in the Economic Complementation Agreement (ACE) No. 18 that are produced in all free zones of Uruguay and Brazil.
In addition to providing for a indefinite tax relief, represents an extension of the regime, given that the previous additional measures covered certain free zones and a small group of goods.
The protocol on trade in yerba mate, meanwhile, involves establishing a new technical criterion in health matters to avoid the imposition of a non-tariff barrier. which makes it difficult for yerba mate from Brazil to enter Uruguay.
This agreement will also be valid for an indefinite period of time and will ensure that the supply of this product to the national market takes place without major difficulties.
The Uruguayan foreign minister described the agreement with Brazil as “very favorable” because it will allow all goods produced in Uruguayan free trade zones to enter the neighboring country with zero tariffs.
He also highlighted the importance of this for attracting new investments and generating high-quality jobs.
Until now, the protocol provided for the annual renewal of the permit; in this case, it will be for an indefinite period. In addition, it previously covered two of the free trade zones and now it covers all of them. “It is a very good agreement for Mercosur as a whole,” said Bustillo.
Following the signing on Tuesday, The governments of Uruguay and Brazil will work on internalization, the formalities for which will be completed in about 15 days. Once this stage is completed, and after five days, the agreement will enter into force in both countries.
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