Bilateral framework agreements for cooperation with the Mercosur countries

SUMMARY OF:

WHAT IS THE AIM OF THE AGREEMENTS AND DECISIONS?

The agreements provide the basis for bilateral cooperation between Argentina, Brazil, Paraguay and Uruguay, and the EU.
The decisions conclude the agreements on behalf of the EU.

KEY POINTS

Argentina, Brazil, Paraguay and Uruguay are the 4 founding members of Mercosur — the Southern Common Market.
The basic principles of the agreements include:
- respect for democracy and human rights; and
- the strengthening of regional integration.
In all 4 agreements, the parties grant each other most-favoured-nation* treatment.
The agreements cover similar areas of cooperation but are tailored to the needs of the individual country. Areas of cooperation include:
- trade — to develop and diversify trade and to examine way of eliminating barriers, including duties and taxes, and exchanging information;
- economic matters — to strengthen economic links, enhance trade, improve standards of living, encourage investment, etc;
- agriculture — focusing on the development of trade and health matters;
- regional integration — including environmental cooperation at regional level, the development of intra-regional trade, the strengthening of regional institutions, support for the development of common policies and activities and regional communications;
- environment — to resolve problems linked to water, soil and air pollution, erosion, desertification, deforestation; over-exploitation of natural resources and the protection of ecosystems;
- science and technology;
- development — particularly social and rural issues.
The agreement with Brazil sets out the broadest area of cooperation, extending to information technology, telecommunications and space technology, transport, energy, the mining, forestry and rural sectors, fisheries, technological development and intellectual property.
A Joint Cooperation Committee consisting of representatives of both parties ensures the proper functioning of each agreement and makes recommendations.
The agreements were concluded for an initial period of 5 years and are renewed tacitly thereafter.
The agreements all include a future developments clause, enabling the parties to expand the content of the agreements.

DATE OF ENTRY INTO FORCE

The agreement with Brazil entered into force on 1 November 1995.
The agreement with Paraguay entered into force on 1 November 1992.
The agreement with Uruguay entered into force on 1 November 1994.
The agreement with Argentine Republic entered into force on 1 August 1991.

BACKGROUND

In addition to bilateral arrangements, relations between the EU and the Mercosur are further strengthened by an Interregional Framework Cooperation Agreement (IFCA).
As well as focusing on existing relations, the IFCA aims to set the foundations for an Interregional Association.
A political agreement for an Association Agreement between the two parties was reached in June 2019.

For further information see:

EU and Mercosur (European External Action Service).

KEY TERMS

Most-favoured-nation (MFN): an MFN clause requires a country to provide any concessions, privileges or immunities granted to one country in a trade agreement to the other countries in each agreement that features that clause. Typically, this clause applies to members of the World Trade Organization, who must grant any preferential treatment to all other World Trade Organization member countries concerning the matters covered by those agreements.

MAIN DOCUMENTS

Framework Agreement for Cooperation between the European Economic Community and the Federative Republic of Brazil (OJ L 262, 1.11.1995, pp. 54-65)

Council Decision 95/445/EC of 30 October 1995 concerning the conclusion of the Framework Agreement for cooperation between the European Economic Community and the Federative Republic of Brazil (OJ L 262, 1.11.1995, p. 53)

Framework Agreement for cooperation between the European Economic Community and the Republic of Paraguay (OJ L 313, 30.10.1992, pp. 72-81)

Council Decision 92/509/EEC of 19 October 1992 concerning the conclusion of the Framework Agreement for cooperation between the European Economic Community and the Republic of Paraguay (OJ L 313, 30.10.1992, p. 71)

Framework Agreement for cooperation between the European Economic Community and the Eastern Republic of Uruguay (OJ L 94, 8.4.1992, pp. 2-12)

Council Decision 92/205/EEC of 16 March 1992 concerning the conclusion of the Framework Agreement for cooperation between the European Economic Community and the Eastern Republic of Uruguay (OJ L 94, 8.4.1992, p. 1)

Framework Agreement for trade and economic cooperation between the European Economic Community and the Argentine Republic (OJ L 295, 26.10.1990, pp. 67-73)

Council Decision 90/530/EEC of 8 October 1990 concerning the conclusion of the Framework Agreement for trade and economic cooperation between the European Economic Community and the Argentine Republic (OJ L 295, 26.10.1990, p. 66)