Venezuela’s adhesion to Mercosur

Argentine Law No 26,152, published in the Official Gazette on December 11, 2006, has ratified the Protocol for the Adhesion of the Bolivarian Republic of Venezuela to Mercosur (the “Protocol for the Adhesion”), which was signed by Argentina, Brazil, Uruguay, Paraguay and Venezuela in Caracas last July 4.

The text of the Protocol for the Adhesion, which consists of twelve sections and an annex referring to bilateral commerce between Paraguay and Venezuela, expressly states that Venezuela’s incorporation to Mercosur will be gradual and flexible, conceding a differential treatment and recognizing the principles of alimentary protection, subsistence and integral rural development.

By this Protocol for the Adhesion, Venezuela has adhered to the Asunción Treaty, the Ouro Preto Protocol and the Olivos Protocol for Dispute Resolutions in Mercosur, in the terms of Section 20 of the Asunción Treaty.

With regards to the dispute resolution procedures regulated by the Olivos Protocol, the Protocol for the Adhesion states that such procedures shall apply to Venezuela for disputes related to the Mercosur rulings prior to the date the Protocol for the Adhesion enters into force as Venezuela progressively implements such rulings.

Venezuela undertakes to implement the Mercosur’s rulings gradually, no later than four years from the Protocol for the Adhesion enters into force. From then onwards, Venezuela shall implement Mercosur’s Common Nomenclature (Nomenclatura Común del Mercosur, NCM) and the Common Foreign Customs Duty (Arancel Externo Común, AEC).

According to the Protocol for the Adhesion, the parties undertake to fulfill free trading among each other in the following maximum terms:

• Argentina to Venezuela: January 1, 2010[1];
• Brazil to Venezuela: January 1, 2010[2];
• Paraguay to Venezuela: January 1, 2013[3];

• Uruguay to Venezuela: January 1, 2013[4];
• Venezuela to Argentina: January 1, 2012[5];
• Venezuela to Brazil: January 1, 2012[6];
• Venezuela to Paraguay: January 1, 2012[7];
• Venezuela to Uruguay: January 1, 2012[8].

The commercial liberalization program shall be applicable with regards to every tariff and measure of equivalent effects, excluding the exceptions provided by the Mercosur rulings actually in force.

Finally, as of the 30^th day counted as of the date the fifth instrument of ratification is deposited with the Republic of Paraguay, Venezuela will become a Member State and will take part in Mercosur with the same rights and responsibilities as the other member states, as set forth in Section 2 of the Asunción Treaty and in the text of the Protocol for the Adhesion.