Uruguay and Brazil signed, on Monday the 20th, the agreement with the protocols so that the production of merchandise in national free zones enters the Brazilian market with zero tariff. The document was also signed to facilitate the entry of yerba mate into national territory. “Today the agreement is formalized, from now on we work for its internalization,” said the Minister of Foreign Affairs, Francisco Bustillo.
The agreement was signed, at the headquarters of the Latin American Integration Association (Aladi), between the representatives of that regional organization, Ambassador Ana Inés Rocanova, for Uruguay, and Ambassador Antonio José Ferreira Simoes, for Brazil. The general secretary of Aladi, Sergio Abreu, also participated.
Bustillo specified that the protocols are contemplated in the agreement he signed on July 9 with his Brazilian counterpart, Foreign Minister Carlos França, in Los Angeles, during the Summit of the Americas. On that occasion, a declaration and two protocols were signed, one of which refers to commercial exchange in free zones and the other to the technical requirements related to yerba mate.
The reference to free zones allows the total and immediate reduction of the common external tariff of all the goods included in the economic complementation agreement (ACE) No. 18 that are produced in all the free zones of Uruguay and Brazil. In addition to providing relief for an indefinite period of time, it entails an extension of the regime, given that the previous additional ones covered certain free zones and a small group of merchandise.
The protocol on yerba mate, meanwhile, implies establishing a new technical criterion in health matters to avoid the imposition of a non-tariff barrier that makes it difficult for yerba mate from Brazil to enter Uruguay. This agreement will also be in force for an indefinite period of time and will ensure that the supply of this product to the national market develops without major difficulties.
The Uruguayan Foreign Minister valued the understanding with Brazil as “very favorable”, and stressed that it will allow all goods produced in free zones in Uruguay to access the neighboring country with zero tariffs. In addition, he highlighted the importance it represents for attracting new investments and generating high-quality jobs.
Until now, the protocol provided for the permit to be renewed annually; in this case, it will be indefinitely. In addition, before it covered two of the free zones and now it covers all of them. “It is a very good agreement for all of Mercosur”, he affirmed.
After the signing made this Tuesday, the governments of Uruguay and Brazil will work on the internalization, whose procedures will culminate in about 15 days. Once this stage is completed, and after five days, the agreement will enter into force in both countries.
