Results of the Second Round of Negotiations for a Preferential Trade Agreement Between the Andean Community and Mercosur

Lima, August 7, 1998. – Representatives of the Andean Community and Mercosur met between August 4-6 of 1998, at the headquarters of the General Secretariat of the Andean Community in Lima, with the purpose of advancing in the negotiations for a Preferential Trade Agreement.

The Andean Community delegation was headed by Magdalena Pardo, the Colombian Viceminister of Foreign Trade.

For its part, Mercosur’s delegation was headed by Ambassador Renato Luiz Rodrigues Marques, Director General for Integration at the Brazilian Ministry of Foreign Relations.

Both delegations reiterated their commitment to conclude the negotiations for a Preferential Trade Agreement in time for it to enter in force on October 1, 1998, in accordance with the deadline established under the Framework Agreement for a Free Trade Area signed on April 16, 1998.

The Andean Community and Mercosur evaluated various methodologies for the negotiation of preferential tariff margins, and exchanged lists of products for which they requested priority reconsideration, without prejudice to the importance of the other products of interest that make up the complete lists exchanged between the Andean Community and Mercosur.

In conformity with the notes exchanged during the previous meeting, the Andean Community and Mercosur exchanged ideas about aspects related to the automobile sector.

Furthermore, they carried out a preliminary review of the legal disciplines that would be included in the Partial Scope Agreement that they are expected to sign. The Andean delegation presented its observations regarding the Dispute Settlement Annex that is included in the draft presented by Mercosur.

Finally, they agreed to hold two further rounds of negotiation. The first will take place between August 25 and 28, in Montevideo, while the second will be held in Lima, between September 22 and 25. In furtherance of the tasks that lay ahead, it was considered appropriate to exchange information about the measures that would be included in the Complementary Notes to the Agreement.

For the Andean Community Delegation,
Viceminister Magdalena Partdo

For the Mercosur Delegation,
Ambassador Renato Luiz Rodrigues Marques