On December 8 2005, in Montevideo, Uruguay, MERCOSUR (composed of Argentina, Brazil, Paraguay and Uruguay) signed a Framework Agreement on Trade whose objective is to provide the conditions and mechanisms to negotiate a free trade agreement.
MERCOSUR Common Market Council Decision No 22/05 approved the initiative to negotiate a free trade agreement. The first round of negotiations took place in February 2006. The first, third and fifth round of negotiations were held in Jerusalem, Israel. The second and fourth rounds took place in Buenos Aires, Argentina. The fifth round of negotiations was held in Jerusalem, Israel on 20-23 November 2006. On 18 December 2007, MERCOSUR and Israel signed a free trade agreement.