Cooperation and jurisdictional assistance between the States Parties of MERCOSUR and the Republics of Bolivia and Chile

On October 4, 2004, Law No 25,935 was published in the Official Bulletin.Law No 25,935 ratified the approval of the Agreement for the Cooperation and Jurisdictional Assistance in Civil, Commercial, Labor and Administrative Matters between the States Parties of MERCOSUR and the Republics of Bolivia and Chile (the “Agreement”), signed in Buenos Aires on July 5, 2002.

The purpose of the Agreement is to provide juridical solutions to strengthen the process of integration between the States Parties of MERCOSUR and the Republics of Bolivia and Chile and to promote cooperation and legal assistance in civil, commercial, labor and administrative matters. The Agreement’s purpose is also to contribute to the equal treatment of nationals, citizens and permanent or habitual residents of the States Parties of MERCOSUR and the Republics of Bolivia and Chile by facilitating free access to justice for the defence of their rights and interests in those states.

The Agreement allows the states to grant equal treatment based on the States Parties’ commitment to render broad mutual jurisdictional assistance on civil, commercial, labor and administrative matters. It specifically provides that assistance in administrative matters will refer, in accordance with the laws of each State, to administrative proceedings where appeals are admitted before a court.

The Agreement provides that each State Party shall appoint a central authority in charge of receiving and transmitting requests of jurisdictional assistance on civil, commercial, labor and administrative matters.Central authorities will communicate with each other and make requests to the applicable authorities when necessary.

The Agreement also provides that nationals, citizens and permanent or habitual residents of one of the States Parties will be granted access to justice in order to defend their rights and interests in the same conditions as nationals, citizens and permanent or habitual residents of the other State Party.This provision is also applicable to legal persons incorporated or authorized in accordance with the laws of any State Party.Furthermore, the Agreement provides that no warranty or deposit may be imposed to nationals, citizens, permanent or habitual residents of another State Party.

The Agreement determines the purpose, content and formalities of the rogatory letters that each State Party may send to the judicial authorities of another State Party in relation to civil, commercial, labor and administrative matters.

The Agreement has a special chapter that deals with the recognition and execution of judgments and arbitral awards on civil, commercial, labor and administrative matters rendered in the jurisdictions of the States Parties.The provisions of the Agreement will also be applicable to judgments or arbitral awards rendered by criminal courts in tort and restitution of goods cases.

The request of recognition or execution of the foreign judgments or arbitral awards may be made by means of rogatory letters transmitted by the central authority or by diplomatic or consular means in accordance with local laws.Notwithstanding, the interested party may directly request the recognition or execution of the judgment.In that case, the judgment must be legalized in accordance to the laws of the State where recognition or execution is requested, except when the requirement of legalization has been abolished or replaced by another procedure by the state that rendered the judgment and the state where recognition or execution is requested.

The Agreement states that judgments or arbitral awards rendered by judges or arbitrators of another State Party will be enforceable in another States Party as long as they fulfil the following requirements: a) the judgment or award must comply with the formalities necessary in order to be considered valid by the state where recognition or execution is requested; b) the judgment or award and their exhibits must be translated to the official language of the state where recognition or execution is requested; c) the judgment or award must have been rendered by a competent authority according to the laws of the state of origin of the judgment or award; d) the party against whom recognition or execution is requested must have been duly subpoenaed and its right of defence assured; e) the judgment or award must be definite in the state of origin; f) the judgment or award must not contradict principles of public order of the state where recognition or execution is requested.

The Amendment will be in force 30 days after the deposit of two instruments of ratification by the any of the States Parties.The Government of the Republic of Paraguay is the depositary of the Amendment as its instruments of ratification. To date none of the States Parties has deposited the instrument of ratification.