CAN- MERCOSUR

CAN - Mercosur: Chronological sequence of events

Background

February 1995 to December 1997: Andean Community and Mercosur Representatives hold their first meeting in February 1995 in Montevideo to explore the possibility of creating a free-trade zone between the two blocs. The subject continues to be taken up at meetings held in October and December 1996 and at technical sessions in 1997.

December 17, 1996: Signing of the Economic Complementarity Agreement for the creation of a Free-Trade zone between Bolivia and Mercosur.

CAN-Mercosur Negotiations

April 16, 1998: The Framework Agreement for the creation of a Free-Trade Zone between the Andean Community and Mercosur is signed in Buenos Aires. The document stipulates that that objective will be attained in two stages: The first, to be concluded with a Tariff Preferences Agreement scheduled to become effective on October 1, 1988 and to remain in force until December 31, 1999, and the second, with the signing of a Free-Trade Agreement that will enter into effect on January 1, 2000.

June to September 1998: Three meetings are held for the negotiation of the Tariff Preferences Agreement (the First from May 30 to June 2, the Second from August 4 to 6, and the Third from September 9 to 11).

September 22 to 25, 1998: At the Fourth Negotiation Meeting held in Lima, the countries decide to extend the negotiations to March 31. After the necessary consultations, they also take the decision to also extend to that date the Partial Scope Agreements signed within the framework of LAIA, which constitute the so-called "historical inheritance."

November 6, 1998: The Ministers on the Mercosur Council and the Ministers of the Andean Community Commission issue a series of guidelines in Montevideo for hastening the negotiation of the Tariff Preferences Agreement.

November 1998 to February 1999: Three negotiation meetings are held (the Fifth in November 1998, the Sixth in January 1999, and the Seventh in February).

February 26, 1999: The Andean Council of Foreign Ministers signs a Declaration in Bogota, stating that "the strengthening of relations between CAN and Mercosur in all spheres is a priority political objective."

March 17 to 19, 1999: The Eighth Meeting for the Negotiation of the Tariff Preferences Agreement is held in Lima.

Launching of two negotiation processes

March 28, 1999: Brazil announces its decision to negotiate the Tariff Preferences Agreement unilaterally with the Andean Community.

April 12, 1999: After accepting the Brazilian proposal, the Andean Community Commission informs the Foreign Ministers of the Mercosur countries that it has decided to move ahead collectively in negotiating the Tariff Preferences Agreement, with Brazil, on the one hand, and with Argentina, Uruguay and Paraguay, on the other. In this way, two negotiation processes are launched.

April 15, 1999: Argentina signs the extension of the bilateral agreements to June 30 and Brazil does the same. Paraguay and Uruguay, for their part, extend their bilateral agreements with the CAN countries to December 31, 1999.

April 21 to 23, 1999: I CAN-Brazil Tariff Preferences Agreement Negotiation Meeting (Brasilia). The delegations exchange viewpoints with regard to the parameters that will orient the negotiations and already reach "an agreement, in principle, on 275 products which, added to the almost 1,100 products agreed upon previously, represents nearly one-half of the product universe under negotiation."

May 12 to 15, 1999: II Negotiation Meeting (Lima), where considerable advances are made in all of the sectors involved. Approximately 800 new subitems are agreed upon, thereby totaling 2,100 subitems on which preliminary agreements have been reached, or roughly 75% of the products being negotiated.

June 1 to 4, 1999: III Negotiation Meeting (Lima), at which the delegations review all of the pending products and substantial headway is made. In this round, a total of about 2,540 subitems have been agreed upon, representing in the neighborhood of 85% of the products under negotiation. The two delegations also exchange viewpoints about the Specific Requirements of Origin for the Textile and Garment Sector and make important advances in defining them.

June 21 to 25, 1999: IV CAN-Brazil Negotiation Meeting (Brasilia), which concludes "the negotiation of the margins of preference for the products covered by the Agreement," amounting to a universe of over 3,000 tariff subitems.

June 30 to July 2, 1999: CAN-Brazil Meeting on the Fixed Tariff Preferences Agreement, for the purpose of putting the finishing touches to the technical and administrative adjustments needed for that agreement.

July 3, 1999: The Andean Community and Brazil conclude the Fixed Tariff Preferences Agreement.

August 16, 1999 Partial scope economic complementarity agreement No. 39, signed on August 12, enters into effect for a two-year period between the Governments of Andean Community Member Countries, Colombia, Ecuador, Peru, and Venezuela, and the Government of Brazil.

October 28 and 29, 1999: The Andean Community and Argentina launch their negotiation of a Trade Preferences Agreement, similar to that signed by the CAN with Brazil, which will replace the bilateral agreements in force and will help to lay the groundwork for the establishment of a free trade area between Mercosur and the CAN.

February 15th - 18th and March 7th - 10th 2000 The third and fourth meetings of the Andean Community and Argentina were held and significant progress was made with the negotiation of the Preferences Agreement.

March 27th to 31st 2000 The Andean Community and Argentina completed the negotiations for the whole range of products of interest to CAN with the exception of a few, reaching a consensus on the regulatory part of the Preferences Agreement. It was decided to extend the bilateral agreements currently in force for a further 60 days in order to implement this new agreement.

June 29, 2000 The Governments of Colombia, Ecuador, Peru, and Venezuela -Member Countries of the Andean Community-- sign a partial scope economic complementarity agreement with the Government of Argentina.

July 13 and 14, 2000. The Administrative Committee of CAN-Brazil Partial Scope Economic Complementarity Agreement No. 39 holds its First Meeting in Lima, Peru.

August 1, 2000. The Partial Economic Complementation Accord between the Andean Community and Argentina came into force.

September 1, 2000. Meeting of South American Presidents in Brasilia, at which "the Heads of State of the Mercosur and of the Andean Community (CAN) decided to start negotiations to establish as soon as possible, by January 2002 at the latest, a Free Trade Area" between the two blocks.

April 26, 2001. Bilateral Technical Meeting Paraguay - Andean Community, in the course of which the two parties exchanged ideas on an Economic Complementation Accord on Fixed Preferences.

April 27, 2001. The representatives of the MERCOSUR and the Andean Community (CAN) met in Asunción (Paraguay), to resume negotiations for setting up a Free Trade Area between the two blocks.

July 17, 2001. The La Paz Ministerial Declaration is made, establishing the Mechanism for Political Dialogue and Coordination between the Andean Community and MERCOSUR and Chile. The Foreign Ministers comprise this instrument, which will follow up the approved agreements, promote political cooperation and propose the agenda, site and timing of the Ministerial meetings.

April 11, 2002. The Foreign Ministers of the Andean Community and Mercosur countries, gathered in San José, Costa Rica at the Sixteenth Summit Meeting of Heads of State and Government of the Rio Group, underscore, in a joint communiqué “the economic, social and political priority their Governments attribute to the convergence of the integration processes of the Andean Community and of Mercosur and Chile in the South American context.”

May 10, 2002. The Andean Community and Mercosur resume their negotiations to establish a Free Trade Area between the two blocs.

July 26, 2002. The Ministers of Foreign Affairs and of Trade of the Andean Community and MERCOSUR, at the Second Meeting of South American Presidents, agree to give a boost at the highest level to the existing political dialogue mechanism and to the economic and trade aspects, in order to strengthen the links of cooperation between the two subregions.

September 15, 2002. The Foreign Ministers and Trade Policy Officers of the Andean Community and Mercosur agree in a press communiqué issued in New York, to hold the Second Meeting of the Political Dialogue Agreement in December and to continue the CAN-Mercosur negotiations with a view to concluding them before year-end 2002.