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The Economic Complementary Agreement was signed between Member States of the Southern Common Market, Mercosur, and the Republic of Chile on June 25, 1996 and became in effect on October 1 the same year, within the context of the integration process, established in the Treaty of Montevideo from 1980, (ACE 35).
The main objectives of the Agreement bears relation to: the creation of an open economical niche that tends to facilitate the free movement of goods and services as well as a full employment of productive factors; the creation of a free trade zone between the parties in a ten year time period; the promotion of the development and use of the physical structure; the promotion of mutual investments and encourage of the economical, energetic, scientific and technological complementation and cooperation.
The free trade zone is established through the adoption of a Program of liberalization of product trade originated in the Signatory Parties territories. The annual duty reductions are progressive and automatic, they are established on a preferential margin basis, i.e. they are applied from duties in effect for third countries. Therefore, such preferential margins gradually increase up to a 100%, reversely proportional to general tariff.
Regarding specific duties, the Agreement establishes the Signatory Parties commitment of no applying on mutual trade other duties than the existing ones, increasing their incidence, applying them to new products and no changing their calculating mechanisms, in terms of causing a detriment of the other Party s market access conditions.
According to Customs valuation, export encouraging and antidumping, technical obstacles to trade and sanitary and phytosanitary measures, the Parties agreed to comply with the agreements and rules ruling the WTO scope.
The Signatory Parties established an origin regime containing general rules for qualifying the origin of goods benefiting from the Program of Liberalization of Trade, establishing as a basic criteria the "salto de partida arancelaria". In the event that there s no compliance of this regime, a 60% of Chile and/or Mercosur countries regional content shall be demanded. Likewise, specific origin requirements were established for specific products.
In the economical field, the Agreement Chile-Mercosur considers the following issues: services, investments, foreign trade regimes, customer s defense and physical integration.
On the transport field, the Members will abide to what was provided in the Agreement of International Land Transport of the Southern Cone and their later modifications, irrespective of entrusting the identification to the Manager Commission of those Agreements signed in the Mercosur context that might became of common interest.
Avoiding double taxation is also provided for the Signatory Parts.
Improving the national infrastructure for developing the oceanic communication and encouraging public and private sector investments has been established in the Agreements.
