Southern Common Market (MERCOSUR)
DECISIONS OF THE COUNCIL OF COMMON MARKET
MERCOSUR/CMC/DEC. Nš 14/97:TRADE AND INVESTMENT
COOPERATION ARRANGEMENT AND ACTION PLAN BETWEEN CANADA AND MERCOSUR
TRADE AND INVESTMENT
COOPERATION ARRANGEMENT AND ACTION PLAN BETWEEN CANADA AND MERCOSUR
The Government of Canada and the Common Market Council of Mercosur
(representing MERCOSUR), hereinafter referred to as "the Parties";
Desiring to enhance the long-standing bonds of friendship and cooperation
between Canada and Mercosur;
Noting the importance they attach to the strengthening of trade and economic
relations in the Western Hemisphere;
Reaffirming their resolution to conclude the negotiation of the Free Trade Area
of the Americas no later than 2005;
Building on their mutual commitment to the World Trade Organization and their
cooperation in the Cairns Group;
Declaring their intention to establish a bilateral framework for the expansion
and diversification of Canada-Mercosur trade and investment;
Wishing to explore opportunities to strengthen bilateral cooperation in other
areas and activities;
Have reached the following understanding:
The Parties will seek to:
(a)enhance economic relations between Canada and
Mercosur, in particular
concerning trade in goods and services, as well as investment;
(b)strengthen their cooperation with a view to expanding trade and investment
between them by identifying those measures that impede or distort trade and
investment flows between Canada and Mercosur;
(c)facilitate the increased involvement of the private sector, in particular
of the smaller and medium-sized enterprises, in trade and commercial
cooperation between Canada and Mercosur;
(d)increase mutual understanding of their respective positions in the
negotiations of the Free Trade Area of the Americas; and,
(e)develop greater co-ordination and consultation in the World Trade
Organization and in the Cairns Group.
2. Expansion of trade and investment
2.1.The Parties will endeavor to create the most favorable conditions for
expanding trade in goods and services, and the expansion of investment between
them in accordance with the annexed Action Plan.
2.2.The Parties will examine all questions set out in the Action Plan
influencing bilateral economic relations or their common interests in respect
of trade and investment in third countries, including multilateral and
plurilateral questions of common interest arising in appropriate forum.
2.3.In enhancing the expansion of trade and investment between the private
sectors in Canada and Mercosur, the Parties will, in particular, foster regular
exchanges of information on opportunities for trade and investment and for
other promotional initiatives, including contacts at the business level, in accordance
with the annexed Action Plan.
3. Consultative Group and Advisory Council
3.1.The Parties establish the Consultative Group on Trade and Investment
Cooperation (hereinafter referred to as the Consultative Group) chaired by
high-level officials of the Parties responsible for international trade, or
their designated alternate. In the case of Mercosur, the responsible representatives
are the Coordinators of the Common Market Group.
The Consultative Group may comprise other high- level officials or their
designated alternate as may be mutually decided from time to time.
3.2.The Consultative Group will convene periodically, ordinarily once every
twelve months, to review and direct progress on the Action Plan. Special
meetings will be held at the request of either Party. The meetings of the
Consultative Group will alternate between Canada and Mercosur or in another
agreed location at the request of either Party. The host Party will chair
Sessions of the Consultative Group.
3.3.The Parties will establish an Advisory Council of business representatives
to advise them on areas of particular concern to the private sector.
4. Final Clauses
4.1.Nothing in this Arrangement affects the respective rights and obligations of
either Party to the other Party under Agreements, Conventions or other
instruments to which they are both Parties, either individually or
4.2.This Arrangement may be amended by the written concurrence of both Parties.
4.3.The Arrangement comes into effect on signature and will remain in effect
unless terminated by either Party on 180 days notice to the other Party.
Done in quadruplicate at
Montevideo, on December, 15, 1997, in the
English, French, Portuguese and Spanish languages, each language version being
For the Government of Canada For the Common Market Council
TRADE AND INVESTMENT COOPERATION ARRANGEMENT
BETWEEN CANADA AND MERCOSUR
1.This Action Plan constitutes an integral part of the Trade and Investment
Cooperation Arrangement between Canada and Mercosur signed at Montevideo
on December, 15, 1997.
2. The Action Plan, in conformity with the objectives of the said Arrangement,
will include the following areas of priority interest:
a)Expansion of trade and strengthening of economic cooperation
identification and analysis of factors and measures, including those of third
countries, influencing bilateral trade and investment;
definition of options and appropriate actions in order to promote market access
for goods and services; negotiation of Foreign Investment Protection Agreements between Canada and
individual Mercosur countries; development of Customs Cooperation and Mutual Assistance Arrangements;
development of cooperative arrangements in the areas of labor and environment,
taking into account related discussions at the WTO and ILO, with a view to
fostering the participation of civil society of both Parties in bilateral trade
and investment relations; dialogue on regulatory reform and development of mutual recognition of
conformity assessment procedures in specific sectors to be identified; consultation and, as appropriate, coordination in the negotiation and
implementation of the Free Trade Area of the Americas; consultation on areas of mutual interest in the Cairns Group;
and cooperation in the World Trade Organization and other appropriate forum
regarding any issue of common interest.
b)Promotion of trade and investment exchange of information on international trade and on business opportunities in
all economic sectors; encouragement of small and medium-sized enterprises to participate in bilateral
trade and economic cooperation; promotion of business missions, trade fairs, strategic venturing initiatives,
symposia, conferences and technical presentations; promotion of efforts of the private sector of both Parties in third country
markets; fostering of joint partnerships in the area of environmental technologies; and,
cooperation between official institutions responsible for trade and investment
3.The present Action Plan will be reviewed periodically and revised as
appropriate by the Consultative Group.