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Aide Memoire
of the Fifth MERCOSUR-Andean Community (CAN)
Meeting
The Fifth MERCOSUR-CAN
Meeting was held in
Buenos Aires
on May 8 to 10,
2002 in order to continue the negotiations
aimed at establishing a Free Trade Area
between the two blocs.
The agenda of
the meeting is attached as Annex I.
The list of participants appears in Annex
II.
At the opening of the
meeting, the MERCOSUR expressed its concern
over
Venezuela
’s absence, in light of
the importance it attaches to the meeting
and the advances that should be made during
its course.
The CAN explained the
reasons for
Venezuela
’s absence and stated
that a consensus had already been reached
regarding its position and that for that
reason its absence would not impede the
negotiation from moving ahead.
The two
Parties made an evaluation of the
negotiation process, with a view to
clarifying their positions and trying to
overcome the inertia that had settled in.
In this
connection, the CAN offered complementary
information to what had been provided
earlier in regard to the trade
liberalization program, consisting of:
I.-Sensitive
products
I.1-List of
sensitive products including the time-frame
for the tariff phase-out process proposed by
each of the Andean countries.
I.2-Proposed timetables
for the sensitive products of the CAN and of
Paraguay
and
Uruguay
. Tariff phase-out
schedules with different initial margins of
preference are included for each of the
time-frames (15 and 20 years).
II.-Treatment
of the historical heritage
The CAN presented the
following documents with regard to the
Andean proposal to revise the historical
heritage granted to
Paraguay
and
Uruguay
:
II.1-a list of products
of
Ecuador
’s historical heritage
with
Paraguay
and
Uruguay
, for revision of the
concessions granted.
II.2-a list of products
of
Peru
’s historical heritage
with
Uruguay
, for revision of the
concessions granted.
The CAN also
clarified the following aspects of the
proposal:
- Products
belonging to the historical heritage that
are included on the list of sensitive
products.
There are two
possible treatments for these products
within the defined time-frames:
a-the
historical heritage is left unchanged until
the corresponding tariff phase-out schedule
catches up with it, or
b-a new
schedule is defined, with an initial margin
of preference equal to that of the
historical heritage, respecting the defined
deadline for the tariff phase-out with
regard to the list of sensitive products.
III.-General
tariff phase-out schedule
At the MERCOSUR’s
request, the CAN accepted deadlines for the
general tariff-phase out schedule of 8 years
for
Argentina
and
Brazil
and 10 years for the CAN,
Paraguay
and
Uruguay
.
This schedule
covers the products included under the
NALADISA 96 Tariff Classification, except
for those that are on the list of sensitive
products, the historical heritage and
products for immediate tariff phase-out.
The MERCOSUR’s
response to the issues introduced by the CAN
under I, II and III was as follows:
- The
maximum tariff phase-out period for
sensitive products can be no longer than
fifteen years.
- The acceptable
difference in tariff phase-out period for
the historical heritage of
Argentina
and
Brazil
, as compared with that
of the CAN and
Paraguay
and
Uruguay
, should not be more than
two years.
- No back
downs as to the preferences granted for the
products of the historical heritage are
acceptable.
- The
Andean Price Band System should be
negotiated, with a view to its elimination
in bi-regional trade.
- The
inclusion of agricultural safeguards is not
acceptable.
The MERCOSUR
will consider any back downs with regard to
the preferences granted for the historical
heritage as a deterioration in the access of
the MERCOSUR as a whole.
The MERCOSUR
stated, as well, that unless the differing
positions on the cited points are
reconciled, it will reserve the right to
restudy its original proposal.
In view of the
differences over key issues of the
Liberalization Program, the CAN requested
that efforts be made to reconcile the
positions of the two blocs and the two
parties agreed on the need to address the
other aspects connected with effective
access to the markets.
The CAN
committed itself to complete and send to the
MERCOSUR this coming June 4th,
the information that has been supplied about
the list of sensitive products, with a
specification of the corresponding tariff
phase-out schedule for each product.
IV.- Rules of
Origin
A working
group was formed, which reviewed the
proposals on the subject put forward by the
two delegations.
The CAN delivered a new
wording of the two articles that were
discussed on this occasion. It also
proposed that
Bolivia
be considered for
purposes of the accumulation of origin and
that provisions be made for
Bolivia
to accumulate origin with
the rest of the CAN countries under ACE 36.
The MERCOSUR
agreed to send its position with regard to
the counterproposal presented by the Andean
Community no later than May 27. It also
committed itself to remit its proposal on
the control and verification of origin by
the beginning of July 2002.
The MERCOSUR stated in
connection with the specific requirements of
origin for the textile and garment sector
that these would be similar to the
requirements that are in effect in its
agreements with
Chile
and
Bolivia
and pledged to send a
specific proposal for the CAN-MERCOSUR
negotiations no later than May 27.
The two
delegations agreed that in order to move
ahead with the negotiation of the
Liberalization Program, it is necessary to
deal at the same time with origin-related
issues.
V.-Motor
vehicle sector
Because of
Venezuela
’s absence, it proved
impossible at this time to set up the motor
vehicle working committee. Even so, the
delegations exchanged viewpoints on the
issues the committee should address and it
was agreed to form this body at the next
meeting.
VI.-Iron and
steel sector
The MERCOSUR
reported that the consultations are being
held that will allow it to put forward a
proposal for negotiation in this sector.
VII.-Agenda
and date of the next meeting
The two
delegations agreed to address the following
issues at the next meeting:
-
Trade Liberalization Program
-
Rules of Origin
-
Technical Standards
-
Sanitary and Phytosanitary Measures
-
Motor Vehicle Working Group
The CAN proposed that the
Sixth Meeting be held in
Lima
,
Peru
on June 12, 13 and 14.
The MERCOSUR countered
with the week of June 24th as a
tentative date for the meeting, once the
Common Market Group has given its okay. It
went on to state the need to have a document
of commitment from the
CAN.
The necessary
matters will be coordinated in order to set
the final date for the Sixth Meeting.
For the
MERCOSUR Delegation
Daniel Polski
For the CAN
Delegation
Juan Carlos Elorza
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