Report of the CAN-Argentina meeting to launch the negotiations for a Tariff Preferences Agreement

Buenos Aires, October 29, 1999. The Delegations of Argentina and of the Andean Community countries met in Buenos Aires on October 28 and 29 to launch the negotiations for a Partial Scope Economic Complementarity Fixed Tariff Preferences Agreement between Argentina and the Andean Community. This instrument will replace the bilateral agreements that are in effect and will help to lay the groundwork for the negotiation of the Free Trade Agreement between Mercosur and CAN, as provided for in the Framework Agreement signed on April 16, 1998 in Buenos Aires.

The Argentine Delegation was coordinated by the National Director for American Economic Integration of the Ministry of Foreign Affairs, International Trade and Worship, Ambassador Rodolfo Rodríguez. The Andean Community Delegation, for its part, operated under the coordination of the National Director for Integration and International Trade Negotiations of the Peruvian Ministry of Industry, Tourism, Integration and International Trade Negotiations, Doctor Eduardo Brandes Salazar.

The two Delegations agreed to take as the starting point for their talks the status achieved in the Mercosur-CAN negotiations in March of this year, including the products agreed upon and those still pending at that time.

General criteria were also agreed upon for negotiating the coverage of the agreement, its life, and the use of ALADI provisions as its basis.

The general criterion adopted for the negotiation is the multilateralizing of preferences, with such exceptions as prove to be necessary, while maintaining the conditions for access by the products belonging to the historical inheritance. Provision has also been made for negotiating new products.

The situation of Ecuador, as a relatively less economically developed country, will be addressed by granting differential preferences for its special list of requested products.

During the course of the meeting, the Argentine Delegation presented a draft agreement, which contains the regulatory aspects, for the CAN's study and the product universe it will cover was considered tentatively.

The two Delegations agreed to exchange consolidated product lists in order to reach a consensus on the universe to be negotiated on November 22 of this year.

Regarding the future free trade agreement between Mercosur and CAN, both Delegations underscored their interest and the high priority they attribute to those negotiations in accordance with the Framework Agreement signed on April 16, 1998.

The two Delegations expressed their satisfaction at the start of negotiations and agreed to hold their next meeting on December 15 to 17 in Lima, with a subsequent meeting being envisaged for Buenos Aires on January 26 to 28, 2000.

Buenos Aires, October 29, 1999

Eduardo Brandes
Minister of Industry, Tourism, Integration and International Trade Negotiations.

Rodolfo Rodríguez
Minister of Foreign Affairs, International Trade and Worship