Mercosur Trade Agreement Between Countries
Posted on December 12, 2020
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. Following the impeachment of President Fernando Lugo by the Paraguayan Senate, the country was suspended by Mercosur and Venezuela`s accession as a full member came into force on 31 July 2012.  Venezuela had four years to fully align itself with the rules of the trade bloc, which did not fail to suspend the Mercosur nation on 1 December 2016. Mercosur`s origins are linked to discussions about the creation of a regional economic market for Latin America, which date back to the treaty that founded the Latin American Free Trade Association in 1960, which was replaced in the 1980s by the Latin American Association. At that time, Argentina and Brazil made progress in this area and signed the Iguau Declaration (1985), which established a bilateral commission, followed by a series of trade agreements the following year. The Treaty on Integration, Cooperation and Development, signed in 1988 between the two countries, aims to create a common market to which other Latin American countries could join. Paraguay and Uruguay joined the process and the four countries signed the Treaty of Asuncion (1991), which founded the Common Market in 1991, a trade alliance aimed at stimulating the regional economy, displacing goods, people, workers and capital. Initially, a free trade area was established, in which signatory countries would not impose or restrict imports from other countries. From 1 January 1995, this sector became a customs union in which all signatories were able to apply the same quotas for imports from other countries (external tariffs).