News regarding the Argentine and Brazilian Treaty on Business Activities Incentives

The Presidents of Argentina and Brazil amended Exhibit I of the Argentine and Brazilian Treaty on Business Activities Incentives (the "Treaty"), during their meeting in Buenos Aires last month. The Treaty had been signed in Brasilia, on February 15, 1996. The change suggested by Brazil establishes a new minimum amount to be required from Argentine investors of US$ 50,000.

The Treaty considers the activities of officers, members of board of directors and managers from service, commercial or industrial companies as business activities. To benefit from the terms of this Treaty, the citizens of both countries must achieve the following requisites:

a)  obtain from the proper local authorities a certificate of good standing regarding the company or companies in which the interested person holds participation;

b)  commercial and bank records;

c)  the consular authorities in charge, at their own discretion, may request additional information and/or documentation to sustain the data provided by the applicant;

d)  finally, it would be necessary to invest a minimum of US$ 50,000.

The investor that fulfills the requirements mentioned above will be able to develop business in Argentina or Brazil without any restrictions other than those provided in the country of origin.

Among the activities allowed by this visa the following are included:

i)  to make any bank transactions permitted by local rules;

ii)  to manage and administer business, regardless of its ownership, and perform all typical management acts such as: acquisition, sale, administration, production, banking and commercial, etc.;

iii)  to legally represent the company;

iv)  to perform international trade transactions; and

v)  to sign financial statements.