Argentina: MERCOSUR Public Procurement Protocol Now in Force

The MERCOSUR Public Procurement Protocol, approved domestically through Law 27767, entered into force for Argentina on January 10, 2026. The Protocol—which had been approved by Common Market Council Decision 37/17—was signed by the MERCOSUR Member States (Argentina, Brazil, Paraguay, and Uruguay). However, its provisions apply exclusively among those States that have ratified it. To date, Argentina, Brazil, and Uruguay have ratified it. Paraguay has yet to do so.

The treaty seeks to deepen regional integration through the reciprocal opening of public procurement markets, expanding opportunities for suppliers within the bloc and promoting greater competition and efficiency in government contracting. The Protocol had already been in force between Brazil and Uruguay since August 4, 2024.

 

Scope

The Protocol applies to public procurement conducted by the agencies listed in its annexes, provided that the contract value exceeds the established thresholds and its subject matter is not goods, services, or construction services excluded in the treaty. For Argentina, the treaty applies to all listed central administration agencies, while decentralized agencies and state-owned companies under its authority are excluded, unless expressly incorporated.  
 

The included decentralized agencies are, among others:

• General Audit Office (SIGEN),
• Argentine Registry of Individuals (RENAPER),
• Argentine Highway Authority (DNV),
• Argentine Agency of Drugs, Foods, and Medical Technology (ANMAT),
• Federal Gas Regulatory Agency (ENARGAS),
• Federal Electricity Regulatory Agency (ENRE),
• Argentine Communications Agency (ENACOM),
• National Scientific and Technical Research Council (CONICET),
• National Parks Administration,
• social security institutions,
• national universities.
   

Certain types of procurement are excluded, among others:

• inter-administrative agreements,
• public employment contracts,
• financial services,
• contracts related to public debt,
• acquisitions or leases of real estate,
• contracts executed abroad with effects outside the territory of the respective state party.
   

In Argentina’s case, the Protocol does not apply to public service concession contracts, and the State reserves the right to require that the successful bidder procure local goods and services as specified in the procurement notice or tender documents.

 

Key features of the Protocol
 

The most relevant aspects of the Protocol include:

• Principles and transparency: agencies must conduct procurement procedures with legality, objectivity, impartiality, equality, transparency, and due process, while promoting the sustainable development of the member states.
• Non-discrimination: states must guarantee national treatment and most-favoured-nation treatment for suppliers or contractors from other member states, without discrimination based on foreign ownership or the origin of goods or services.
• Prohibition of offset requirements: public entities may not request or impose conditions that encourage local development or improve a state party’s balance of payments during procurement processes.
• Competitive procedures as a rule, with justified exceptions: Competitive methods are encouraged as the general rule for awarding public contracts, and the grounds for resorting to exceptional methods—such as direct contracting—are detailed. Such exceptions may not be used to discriminate against foreign suppliers or favour domestic ones.
• Tender documents and technical specifications: the treaty establishes minimum standards for drafting tender documents and provides that technical specifications must be based on performance and functional requirements, with reference to MERCOSUR standards, Mercosur Standardization Association Standards, or international standards, where appropriate.
• Conditions for participation: generally, member states may not require prior experience or previous contracts within the territory of each member state, unless the complexity of the procurement justifies so.
• Review and challenges: States must ensure a timely, impartial, and independent administrative or judicial review procedure that allows suppliers, within a sufficient period, to challenge breaches of the Protocol. Member states must adopt procedures, establishing rapid interim measures with suspensive effect to safeguard the supplier’s opportunity to participate in procurement, as well as corrective or compensatory measures for the losses or damages suffered.
• Cooperation and micro, small, and medium-sized enterprises (MSMEs): The Protocol provides for cooperation and information exchange among member states regarding contract awards, as well as provisions aimed at promoting the participation of MSMEs.
   

The Protocol represents a significant step toward greater competition in public procurement under conditions of equality and reciprocity.

 

Federal Contracting Office Communication

Following the Protocol’s entry into force, the Argentine’s Federal Contracting Office issued Communication 3/2026, which includes a guide to implement it progressively. According to the Communication, Argentine regulations are aligned with the treaty, although certain adjustments are still required.