Argentine Republic, Federative Republic of Brazil, Republic of Paraguay, Republic of Uruguay, Arab Republic of Egypt:
– Their desire to establish clear and lasting future rules to promote the development of trade and mutual investments
– Affirming their commitments to strengthen international trade regimes in accordance with the rules of the World Trade Organization .
– Recognizing that free trade agreements contribute to the expansion of World Trade, maximize global stability and, in particular, to the development of closer relations between their peoples .
– Bearing in mind that the process of economic integration includes not only gradual and mutual liberalization of trade, but also the establishment of more comprehensive economic cooperation.
Agree on the following:
Article (1)
For the purposes of this agreement, the “contracting parties” are both Mercosur and the Arab Republic of Egypt.
The “signatories” are the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay, the Republic of Uruguay and the Arab Republic of Egypt.
Article (2)
The objective of this framework agreement is to strengthen relations between the contracting parties, to promote the expansion of trade and to provide conditions and negotiating mechanisms for the establishment of a free trade area in accordance with the rules and regulations of the World Trade Organization.
Article (3)
As a first step towards the objective referred to in Article(2), the contracting parties agree to conclude a limited preferential agreement, aimed at increasing bilateral trade flows by granting effective access to their markets by providing mutual benefits.
The contracting parties agree to conduct periodic negotiations with a view to expanding the scope of the limited preferential agreement.
Article (4)
The contracting parties agree to establish a negotiating committee. The members of the Mercosur shall be the Common Market group or its representatives. The Arab Republic of Egypt is represented by the Ministry of foreign trade or its representatives. In order to achieve the objective set out in Article (2), the negotiating committee shall establish a work programme for the negotiations.
The negotiating committee shall meet whenever the contracting parties so agree.
Article (5)
The negotiating committee acts as a tool for achieving:
A) – Exchange of information on the customs tariff applied by each party to bilateral trade and trade with other parties, as well as on their trade policies.
B) – exchange of information on: market access, Customs and non-tariff procedures, sanitary and phytosanitary procedures, technical specifications, rules of origin, preventive measures, anti-dumping and Countervailing Measures, special customs regimes and dispute settlement among other issues.
C) identify and propose procedures to achieve the objectives set out in Article (3), including those related to trade facilitation.
D) setting criteria for negotiating a free trade area between the Mercosur community and the Arab Republic of Egypt.
E) negotiating an agreement to establish a free trade area between the Mercosur community and the Arab Republic of Egypt in accordance with the agreed criteria.
F) – the implementation of other tasks determined by the contracting parties.
Article (6)
In order to expand mutual knowledge about trade and investment opportunities for both parties, the contracting parties are increasing trade development activities such as seminars, trade missions, exhibitions, seminars, and markets.
Article (7)
The Contracting Parties shall promote the development of joint activities aimed at the implementation of cooperation projects in the agricultural and industrial fields, among other areas, through the exchange of information, training programs, and technical missions.
Article (8)
The Contracting Parties shall further expand and diversify trade in services among themselves in the manner determined by the negotiating committee and in accordance with the general agreement on trade in services (GATS).
Article (9)
The contracting parties agree to cooperate in the development of closer relations between their respective institutions in the fields of plant and animal health, standards, food safety, mutual recognition of sanitary and phytosanitary procedures, through agreements on these topics in accordance with relevant international standards.
Article (10)
1.this Agreement shall enter into force thirty days after the contracting parties have officially notified, in writing and through diplomatic channels, the completion of the necessary internal procedures.
2.this Agreement shall be valid for a period of three years and shall be renewed automatically unless one of the contracting parties decides by written notification through diplomatic channels not to renew it. Such a decision must be made thirty days before the expiration of the three-year term. The agreement expires six months after the date of notification.
3-for the purposes of Article (10) paragraph 1, the government of Paraguay shall be the depositary of this agreement by the Mercosur.
4.in order to fulfil the depositary functions prescribed in Article (10) paragraph 3, the government of Paraguay shall notify the other member states of the Mercosur on the date of entry into force of this agreement.
Article (11)
This agreement may be amended with the consent of the contracting parties by exchanging notifications through diplomatic channels.
