CAN- MERCOSUR

Aide-Memoire of the Second MERCOSUR-CAN Meeting
Montevideo, August 24, 2001

The Second MERCOSUR-CAN Meeting was held in Montevideo on August 22 to 24, 2001 in order to continue the negotiations for forming a free trade area between the two blocs.

The agenda of the meeting is set out in Annex I.
Annex II contains the list of participants.

The following topics were addressed during the course of the meeting:

1. Consideration of the Regulatory Agreement for creating a free trade area: MERCOSUR proposal and CAN counter-proposal.

The delegations studied the draft Agreement on the basis of the Andean counter-proposal and the results of their deliberations are contained in Annex III.

2. Dispute Settlement.

The delegations decided to take up the subject of dispute settlement concurrently with the holding of the plenary session.

Proposals on the subject were presented and justified and there were exchanges of opinion particularly in regard to aspects on which positions differed; these referred basically to the following matters:

- Sphere of application of the mechanism, in particular whether it should encompass situations of annulment or impairment and whether measures incompatible with the Agreement should be included within it.

-Possibility of choosing between the regional forum and that of the WTO.

-Stage of involvement of a group of experts.

- Members of the Court of Arbitration’s status of jurists.

-Consultation or direct negotiations level or body.

-Criteria for imposing compensatory measures and the possibility in establishing those measures of considering differences in levels of development.

-Involvement of third parties in controversies.

The parties agreed to examine those issues in greater depth before their next meeting.

3. Safeguards

The MERCOSUR delegation delivered its proposal on safeguards so that it may be discussed at the next meeting.

4. Origin

The MERCOSUR delegation gave a general explanation of what the bloc proposal will be regarding the Rules of Origin, specifying the points on which it will agree with or differ from the Andean proposal based on the LAIA’s General Rules of Origin as provided for in Resolution 252 of the Committee of Representatives.

The two delegations will take up the issue again once MERCOSUR has readied its proposal, which is to be circulated by the Pro Tempore Chair on September 17th.

5. Sanitary and Phytosanitary Measures

The Andean delegation delivered a counter-proposal on Sanitary and Phytosanitary Measures and the MERCOSUR delegation promised to send in its observations by September 7th at the latest.

6. Other business

The two delegations agreed at the next meeting to exchange information about tariffs and trade statistics.

7. Specification of the date and site of the next meeting

It was decided to hold the next MERCOSUR-CAN meeting on October 17 to 19, 2001 in Lima, Peru.

The MERCOSUR delegation also proposed holding two meetings in November, one tentatively in Lima during the week of November 5th and the other in Montevideo during the week of November 26th.

For the delegation of the CAN
SILVIA ANZOLA

For the delegation of the MERCOSUR
RICARDO NARIO