Treaty Establishing a Common Market
between the Argentine Republic, the Federal Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay

ANNEX III

Settlement of Disputes

1. Any dispute arising between the States Parties as a result of the application of the Treaty shall be settled by means of direct negotiations.

If no solution can be found, the States Parties shall refer the dispute to the Common Market Group which, after evaluating the situation, shall within a period of 60 days make the relevant recommendations to the Parties for settling the dispute. To that end, the Common Market Group may establish or convene panels of experts or groups of specialists in order to obtain the necessary technical advice.

If the Common Market Group also fails to find a solution, the dispute shall be referred to the Council of the common market to adopt the relevant recommendations.

2. Within 120 days of the entry into force of the Treaty, the Common Market Group shall propose to the Governments of States Parties a system for the settlement of disputes which shall apply during the transition period.

3. Before 31 December 1994, the States Parties shall adopt a permanent disputes settlement system for the common market.

(The Spanish and Portuguese read: THIS IS A TRUE COPY OF THE ORIGINAL WHICH IS IN THE POSSESSION OF THE TREATY DEPARTMENT OF THE MINISTRY OF FOREIGN AFFAIRS.)

(Signed) Bernardino H. Saguier Caballero
Under-Secretary for Foreign Affairs