1.   Respect for democratic principles, human rights and fundamental freedoms as laid down in the Universal Declaration of Human Rights and other international human rights instruments to which they are party, as well as for the principles of the rule of law underpins the internal and international policies of the Parties and constitutes an essential element of this Agreement.

2.   The Parties confirm their strong commitment to the shared principles and objectives as expressed in the UN Charter. The promotion of sustainable economic and social development, as well as the equitable distribution of the benefits of this Agreement, are among the guiding principles for the implementation of this Agreement.

3.   The Parties reaffirm their attachment to the principles of good governance, including principles such as governmental transparency and the fight against corruption, ethical and accountable government, the independence of the judiciary and the protection of the rights of minorities.

1.   The highest level of political and policy dialogue between the EU Party and the MERCOSUR Party shall be at summit level. Summits shall be held as necessary and as mutually agreed.

2.   The Summits shall provide the opportunity to evaluate progress in the implementation of this Agreement, set out the objectives for its future evolution and discuss other topics of common interest.

1.   A Joint Council is hereby established to oversee the fulfilment of the objectives of this Agreement and supervise its implementation. The Joint Council shall address the matters covered by this Agreement and shall examine any major issue arising within the framework of this Agreement, as well as interregional, multilateral or international questions of common interest.

2.   The Joint Council shall meet at ministerial level at regular intervals, at least every 2 (two) years or on an ad-hoc basis as mutually agreed. It may also meet via teleconference, video-conference or through other means, as mutually agreed by the Parties.

3.   The Joint Council shall be composed of representatives of each of the Parties at ministerial level in accordance with the Parties' respective internal arrangements and taking into consideration the specific issues to be addressed. The Joint Council shall meet in all necessary configurations, by mutual agreement.

4.   When the Joint Council addresses any matter related to Part III of this Agreement, it shall be composed of representatives of each of the Parties with responsibility for trade-related matters (hereinafter referred to as ‘Joint Council in trade configuration’).

5.   The Joint Council shall adopt its own rules of procedure and the rules of procedure of the Joint Committee.

6.   The Joint Council shall be co-chaired by one representative of the EU Party and one representative of the MERCOSUR Party in accordance with the provisions laid down in its rules of procedure and taking into consideration the specific issues to be addressed at any given session.

7.   The Joint Council shall examine proposals and recommendations and have the power to take decisions, including on the interpretation of provisions, and make appropriate recommendations as provided for in this Agreement. Decisions and recommendations shall be adopted by agreement of the Parties and in accordance with the rules of procedure of the Joint Council. Decisions shall be binding on the Parties, which shall take all necessary measures, in accordance with their internal procedures, to implement them. Within the scope of Part II of this Agreement, the Joint Council shall also have the power to take decisions and make recommendations as mutually agreed by the Parties.

8.   The Joint Council may delegate to the Joint Committee any of its functions, including the power to take binding decisions, in accordance with the Joint Council's rules of procedure.

1.   A Joint Committee is hereby established.

2.   The Joint Committee shall assist the Joint Council in the performance of its duties.

3.   The Joint Committee shall prepare the meetings of the Joint Council and shall be responsible for the correct implementation of this Agreement.

4.   The Joint Committee shall be composed of representatives of each of the Parties at senior official level or as otherwise designated by the Parties in accordance with their internal arrangements and taking into consideration the specific issues to be addressed at any given session.

5.   When the Joint Committee addresses any matter related to Part III of this Agreement, it shall be composed of representatives of each of the Parties with responsibility for trade-related matters (hereinafter referred to as ‘Joint Committee in trade configuration’).

6.   When the Joint Committee addresses any matter related to Part II of this Agreement, it shall be composed of representatives of each of the Parties with responsibility for those matters, in accordance with the Parties' respective internal arrangements.

7.   The Joint Committee shall have the power to take decisions as provided for in this Agreement or where such power has been delegated to it by the Joint Council. The Joint Committee shall adopt decisions by agreement of the Parties. The decisions shall be binding on the Parties, which shall take the measures necessary for the implementation of those decisions. When exercising delegated powers, the Joint Committee shall take its decisions in accordance with the rules of procedure of the Joint Council.

8.   Without prejudice to the specific provisions in Chapter 29, any Party may refer any issue concerning the application or interpretation of the Agreement to the Joint Committee.

9.   The Joint Committee shall be co-chaired by one representative of the MERCOSUR Party and one representative of the EU Party, taking into consideration the specific issues to be addressed in any given session.

10.   The Joint Committee shall generally meet once a year to review the implementation of this Agreement, on a date and with an agenda agreed in advance by the Parties, alternately in Brussels and in a signatory MERCOSUR State. Additional meetings may also be convened by mutual agreement, at the request of either the EU Party or MERCOSUR. It may also meet via teleconference, video-conference or through other means, as mutually agreed by the Parties.

1.   The Joint Committee may decide to set up subcommittees or other bodies to assist in the exercise of its functions and to address specific tasks or subjects. It may decide to change the tasks assigned to, or to dissolve, any subcommittees or other structure set up for these purposes.

2.   The Joint Committee shall adopt rules of procedure which determine the composition, duties and functioning of the subcommittees and other bodies.

3.   The creation or existence of any subcommittees shall not prevent the Parties from bringing any matter directly to the Joint Committee.

4.   Except as otherwise provided for in this Agreement, subcommittees and other bodies established by this Agreement or by the Joint Committee shall report on their activities to the Joint Committee regularly or when requested.

5.   The Subcommittees addressing trade and trade-related matters, which are established pursuant to Article 9.9(4), shall be governed by Article 9.9 and shall report to the Joint Committee in trade configuration.

6.   A Subcommittee on International Cooperation and Development is hereby established to promote, coordinate and supervise the implementation of cooperation activities in the areas referred to in Part II of this Agreement, as well as the follow-up, monitoring and evaluation of such cooperation initiatives. It shall assist the Joint Committee in the performance of its functions regarding these matters.

1.   A Joint Parliamentary Committee is hereby established to foster closer relations and ensure regular dialogue between the European Parliament and the Parliament of MERCOSUR.

2.   The Joint Parliamentary Committee shall consist of members of the European Parliament, on the one hand, and of members of the Parliament of MERCOSUR, on the other. It shall meet at intervals which it shall itself determine.

3.   The Joint Parliamentary Committee shall establish its own rules of procedure.

4.   The Joint Parliamentary Committee shall be presided in turn by the European Parliament and the Parliament of MERCOSUR.

5.   The Joint Parliamentary Committee will be kept informed of progress made in the implementation of this Agreement.

6.   The Joint Parliamentary Committee may make recommendations to the Joint Council.

1.   In order to facilitate the implementation of this Agreement, the Parties shall promote consultations with civil society through the establishment of an appropriate consultation mechanism and the promotion of interaction between the representatives of their civil society.

2.   The Parties shall promote dialogue between the Economic and Social Committee, for the European Union, and the Consultative Social and Economic Forum, for MERCOSUR, and encourage their contribution to the mechanisms set out in Articles 2.7 and 2.8.

1.   The EU Party and the MERCOSUR Party shall each designate a Domestic Advisory Group, established in accordance with each Party's internal arrangements, to advise the Party concerned on issues covered by this Agreement. It shall be composed of a balanced representation of independent civil society organisations, including non-governmental organisations, business and employers' organisations and trade unions, active on economic, development, social, human rights, environmental and other matters.

2.   The Parties shall promote a regular dialogue with their Domestic Advisory Group and shall consider views or recommendations submitted by their respective Domestic Advisory Group on the implementation of this Agreement.

3.   In order to promote public awareness of the Domestic Advisory Groups, the EU Party and the MERCOSUR Party shall each make available to the public the list of organisations participating in consultations as well as the contact point for that group.

1.   The Parties shall facilitate the organisation of a Civil Society Forum to conduct a public dialogue on the implementation of this Agreement and shall agree at the first meeting of the Joint Committee on operational guidelines for the conduct of the Civil Society Forum.

2.   The Parties may facilitate participation in the Civil Society Forum by virtual means.

3.   The Civil Society Forum shall be open to the participation of independent civil society organisations established in the territories of either the EU Party or the MERCOSUR Party, including members of the Domestic Advisory Groups referred to in Article 2.7. The Parties shall promote a balanced representation, including non-governmental organisations, business and employers' organisations and trade unions active on economic, development, social, human rights, environmental and other matters.

4.   The representatives of the Parties participating in the Joint Council or the Joint Committee, as appropriate, shall take part in a session of the meeting of the Civil Society Forum in order to present information on the implementation of the Agreement and to engage in a dialogue with the Civil Society Forum.

1.   The 1995 Interregional Framework Cooperation Agreement shall cease to have effect upon the entry into force of this Agreement.

2.   This Agreement replaces the 1995 Interregional Framework Cooperation Agreement. References to the 1995 Interregional Framework Cooperation Agreement in all other agreements between the Parties shall be construed as references to this Agreement.

3.   The Interim Trade Agreement shall cease to have effect and be replaced by this Agreement upon the entry into force of this Agreement. References to the Interim Trade Agreement in all other agreements between the Parties shall be construed as referring to this Agreement.

4.   Upon the entry into force of this Agreement, any decisions adopted by the Trade Council established by the Interim Trade Agreement shall be deemed to have been adopted by the Joint Council established by Article 2.2 of this Agreement. Any decisions adopted by the Trade Committee established by the Interim Trade Agreement shall be deemed to have been adopted by the Joint Committee established by Article 2.3 of this Agreement.

5.   Notwithstanding paragraph 3 of this Article:

6.   The Parties shall not be able to bring dispute settlement proceedings under this Agreement on matters that have been the subject of a final panel report under Chapter 18 and arbitral award under Chapter 21 of the Interim Trade Agreement.

7.   Transition periods already completely or partially elapsed under the Interim Trade Agreement shall be taken into account when calculating transition periods provided for in equivalent provisions of this Agreement. Such transition periods under this Agreement shall be calculated starting from the date of entry into force of the Interim Trade Agreement.

Procedural periods already completely or partially elapsed under the Interim Trade Agreement shall be taken into account when calculating procedural periods provided for in equivalent provisions of this Agreement.

8.   The Parties may complement this Agreement by concluding specific agreements in any area of cooperation falling within its scope. Such specific agreements may provide that they are to form an integral part of the overall interregional relations as governed by this Agreement and are to be subject to a common institutional framework.

1.   This Agreement shall apply:

2.   References to ‘territory’ in this Agreement include air space and territorial sea as provided in UNCLOS.

3.   References to ‘territory’ in this Agreement shall be understood in this sense, save as otherwise expressly provided.

4.   As regards those provisions concerning the tariff treatment of goods, including provisions on customs and trade facilitation, mutual administrative assistance in customs matters and rules of origin, as well as the temporary suspension of such treatment, this Agreement shall also apply to those areas of the customs territory of the European Union, as defined by Article 4 of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (1), not covered by point (a) of paragraph 1 of this Article.

1.   The Parties agree that the political dimension is an essential part of the partnership established by this Agreement and shall strengthen and deepen the regular political dialogue between the Parties. The Parties agree to establish a political agenda, cooperate in areas of common interest and make efforts to coordinate their positions in order to undertake joint initiatives in the appropriate international fora.

2.   Political dialogue between the Parties shall aim to:

1.   The Parties, reaffirming the need to strengthen their partnership, highlight the importance of international cooperation and development and agree that one of the main purposes of interregional cooperation and its modalities shall be to facilitate the implementation of this Agreement.

2.   The Parties shall carry out cooperation projects and joint activities through all existing and future instruments and methodologies and available means, including triangular cooperation. Such cooperation may include, inter alia:

3.   The Parties agree to promote the mobilisation of financial resources for the implementation of this Agreement, in close partnership with the European Investment Bank, European financial institutions and institutions from Signatory MERCOSUR States, as well as international and regional financial institutions.

1.   Within the aim of contributing to reaching the objectives of the cooperation established in this Agreement, the Parties commit themselves to providing, within the limits of their capacities and through their own channels, the appropriate resources, including financial resources, and encourage development-related public and private financial institutions in both regions to cooperate actively for that purpose.

2.   The Parties shall encourage the European Investment Bank and other financial institutions to continue their operations in Signatory MERCOSUR States, in accordance with their procedures and financing criteria, their respective laws and regulations and without prejudice to the powers of their competent authorities.

1.   The Parties shall cooperate on the promotion and protection of human rights, including the ratification and implementation of international human rights instruments, and on the strengthening of democratic principles and the rule of law.

2.   Such cooperation may include:

1.   The Parties shall promote gender equality and the empowerment of all women and girls. They acknowledge the necessity of gender equality and the empowerment of women and girls as a precondition to fully achieve inclusive development, democracy and security. The Parties shall explore further schemes of cooperation and potential synergies between respective policies and initiatives, in line with international standards and commitments such as the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), the 2030 Agenda and UN Security Council Resolution (UNSCR) 1325 on women, peace and security.

2.   Such cooperation may include:

1.   The Parties recognise the central role of the Treaty on the Non-Proliferation of Nuclear Weapons, done in London on 1 July 1968, and its three equally important and reinforcing pillars: disarmament, non-proliferation and the peaceful use of nuclear energy.

2.   The Parties consider that the proliferation of weapons of mass destruction (hereinafter referred to as ‘WMDs’) and their means of delivery, both to State and non-State actors, represents one of the most serious threats to international stability and security. The Parties therefore agree to cooperate and to contribute to countering the proliferation of WMDs and their means of delivery through full compliance with, and national implementation of, their existing obligations under international disarmament and non-proliferation treaties and agreements and other relevant international obligations. The Parties agree that this paragraph constitutes an essential element of this Agreement.

3.   The Parties agree to cooperate and to contribute to countering the proliferation of WMDs and their means of delivery by:

4.   The Parties shall establish a regular political dialogue to accompany and consolidate these elements.

1.   The Parties reaffirm that there must be no impunity for the most serious crimes of concern to the international community, such as the crimes falling within the jurisdiction of the International Criminal Court, and that these crimes must be prosecuted by national and international means, as appropriate, in accordance with the principle of complementarity.

2.   The Parties, considering that an effective International Criminal Court constitutes a significant development for international peace and justice, agree to cooperate in promoting universal accession to the Rome Statute of the International Criminal Court, done in Rome on 17 July 1998 (hereinafter referred to as ‘Rome Statute’), and to this end:

1.   The Parties undertake to cooperate and to ensure coordination and complementarity and to explore possible synergies in their efforts to regulate or improve the regulation of international trade in conventional arms and to prevent, combat and eradicate the illicit trade in arms, at global, regional and sub-regional level.

2.   At global level, the Parties highlight the unique framework given by the Arms Trade Treaty, adopted in New York on 2 April 2013 (hereinafter referred to as ‘ATT’), in order to achieve this cooperation and complementarity between national control systems for transfers of conventional arms, including its provisions on cooperation and assistance. They also agree on the importance of promoting the universalisation and full implementation of the ATT by all UN member states.

3.   The Parties recognise that the illicit manufacture, transfer and circulation of small arms and light weapons and their excessive accumulation and uncontrolled spread in many regions of the world have a wide range of humanitarian and socio-economic consequences and pose a serious threat to peace, reconciliation, safety, security, stability and sustainable development at individual, local, national, regional and international level.

4.   The Parties agree to fully implement their respective obligations to deal with the illicit trade in small arms and light weapons, including their ammunition, under existing international agreements to which they are party and under UN Security Council resolutions, as well as their commitments within the framework of other international instruments applicable in this area, such as the UN Programme of Action to prevent, combat and eradicate the illicit trade in small arms and light weapons in all its aspects.

5.   The Parties recognise the importance of domestic control systems for the transfer of conventional arms in line with existing international standards. The Parties agree to apply such controls in a responsible manner, as a contribution to international and regional peace, security and stability, and to the reduction of human suffering, as well as to the prevention of diversion of conventional weapons.

1.   The Parties reaffirm their commitment in the fight against terrorism in all its forms and manifestations, in accordance with international law, human rights law and international humanitarian law, the relevant UN resolutions and their respective legislation.

2.   The Parties agree to cooperate and, where there is joint interest, prevent, fight and criminalise all acts of terrorism in accordance with UN instruments to which they are party.

3.   The Parties agree not to provide assistance or refuge to the authors or instigators of any type of terrorist activity, or to any other participant therein, in accordance with Resolutions 1373 (2001) and 1624 (2005) of the UN Security Council. They shall cooperate in particular:

1.   The Parties reaffirm their commitment to cooperate in promoting international peace and security under the aegis of the UN.

2.   With regard to UN peacebuilding and peacekeeping, the Parties shall establish a dialogue on peace and security issues with a view to initiating cooperation in the fields of capacity building and exchange of best practices, among others.

1.   The Parties reaffirm their commitment to the UN framework in the field of disaster risk reduction and response and agree to recognise the reduction of vulnerability and risk and the promotion of resilience as their priorities.

2.   For the purposes set out in paragraph 1, the Parties shall explore possibilities to coordinate humanitarian assistance and disaster response activities.

1.   The Parties reaffirm their commitment to the principles of the UN Charter. The Parties share a commitment to multilateralism and efforts to improve the effectiveness of regional and international fora and organisations, such as the UN and its specialised organisations and agencies, and other multilateral fora.

2.   The Parties shall maintain effective consultation mechanisms on the margins of multilateral fora. At the UN, the Parties shall establish appropriate consultation mechanisms at the General Assembly of the UN and the UN offices, as appropriate and agreed by the Parties.

1.   The Parties recognise that cybercrime is becoming a widespread global problem requiring multilateral, regional and national responses. The Parties shall strengthen cooperation to prevent and combat cybercrime through the exchange of information and practical cooperation, in compliance with their respective legal frameworks and laws, and with applicable international instruments on cybercrime. The Parties shall endeavour to work together, where appropriate, in the development of effective laws, policies and practices to prevent and combat cybercrime wherever it occurs.

2.   The Parties shall, as appropriate within their respective legal frameworks, exchange information, including in the areas of education and training of cybercrime investigators, the conduct of cybercrime investigations and digital forensics.

1.   The Parties reaffirm the importance that they attach to dealing effectively with migration flows and agree to strengthen their cooperation on migration issues on the basis of the principle of national sovereignty, shared responsibility and related issues such as the potential economic, social and cultural contribution of migrants to countries of origin, transit and destination.

2.   The Parties shall focus in particular on:

3.   The Parties shall cooperate to ensure safe, orderly and regular migration, readmitting their own nationals irregularly staying in the territory of the other Party and fighting against trafficking in human beings and the smuggling of migrants. They shall also cooperate on the exchange of information, along with the sharing of data and statistics on migration.

4.   Each Member State and each Signatory MERCOSUR State shall readmit its own nationals irregularly staying in the territory of the other Party at that Party's request. Appropriate travel documents ensuring effective return shall be provided for this purpose. The Parties shall ensure safe and dignified treatment to irregular staying migrants. The return of non-admitted persons shall be also ensured under human, dignified and fair conditions, in accordance with the applicable law, including remedies provided therein.

5.   Upon the request of one of the Parties, Signatory MERCOSUR States individually and the EU or any of the Member States individually shall endeavour to negotiate and conclude specific agreements, in order to further facilitate the cooperation between competent authorities for the identification and documentation of nationals irregularly staying in the territory of the other Party to be readmitted. Such agreements would also address the readmission of persons who are not their nationals but who hold a valid residence authorisation issued by one of the Parties or who have entered the territory of one Party coming directly from the territory of the other Party.

6.   The Parties shall promote the development and implementation of national legislation and practices as regards the international protection of refugees, with a view to satisfying the provisions of the United Nations Convention relating to the Status of Refugees, done at Geneva on 28 July 1951, and of its Protocol of 1967, and other relevant regional and international instruments to ensure respect for the principle of ‘non-refoulement’. The Parties shall focus in particular on exploring opportunities for cooperation at a regional level on voluntary resettlement and other forms of humanitarian admission of refugees, as part of reaching collective solutions to the growing global phenomenon of large movements of refugees.

1.   The Parties agree to develop judicial cooperation in civil matters, in particular as regards the negotiation, ratification and implementation of multilateral conventions on civil judicial cooperation and, in particular, the Conventions of The Hague Conference on Private International Law in the field of international legal cooperation and litigation as well as the protection of children.

2.   The Parties agree to strengthen judicial cooperation in criminal matters based on the relevant standards of the UN, international and regional organisations such as the Council of Europe and the Organization of American States, in particular in the area of mutual legal assistance, extradition and transfer of prisoners.

1.   The Parties, based on the principle of common and shared responsibility, shall cooperate to ensure a balanced and integrated approach towards addressing all aspects of the world drug problem, including challenges such as new psychoactive substances. In this regard, drug policies and actions shall be aimed at reinforcing structures, reducing the supply of, trafficking in and the demand for illicit drugs, coping with the health and social consequences of drug abuse with a view to reducing harm, and more effective prevention of diversion of chemical precursors used for the illicit manufacture of narcotic drugs and psychotropic substances.

2.   The Parties shall agree on the necessary methods of cooperation to attain the objectives referred to in paragraph 1. Actions shall be based on commonly agreed principles along the lines of, in particular, the three UN Drug Control Conventions of 1961, 1971 and 1988 and the Outcome Document of the UN General Assembly Special Session on the World Drugs Problem, adopted in New York on 19 April 2016.

3.   The Parties agree to support and encourage the development of policies and measures to address the world drug problem.

1.   In accordance with their internal laws and regulations and applicable bilateral and international instruments, such as the UN Convention against Transnational Organized Crime, adopted in New York on 15 December 2000, and its protocols, and the UN Convention against corruption, adopted in New York on 31 October 2003, the Parties shall strengthen their cooperation in the fight against transnational organised crime and corruption, including prevention and investigation activities, the prosecution of offenders, and mutual legal assistance.

2.   The Parties agree on the need to work towards preventing and combating in an effective way the use of their financial institutions and designated non-financial businesses and professions for the purpose of financing terrorism and laundering the proceeds of criminal activities, including drug trafficking, trafficking in persons, especially children, women at risk and other persons in vulnerable situations, arms trafficking and corruption, in accordance with the recommendations of the Financial Action Task Force (hereinafter referred to as ‘FATF’) and taking into account the work of the Latin American Financial Action Group (hereinafter referred to as ‘GAFILAT’).

3.   The Parties agree to cooperate with a view to combating and preventing money laundering and terrorist financing and ensuring effective and full implementation of the FATF recommendations and taking into account the work of the GAFILAT. This cooperation extends to the tracing, identification, seizure, confiscation, recovery and return of assets or funds derived from the proceeds of crime.

4.   The cooperation referred to in paragraph 3 shall allow exchanges of relevant information within the framework of the laws and regulations of each Party and in line with international standards to prevent and combat money laundering and the financing of terrorism, in compliance with the recommendations of FATF and taking into account the work of the GAFILAT.

5.   The Parties agree, subject to and in accordance with their respective laws and regulations and applicable bilateral and international instruments, to undertake measures to support the identification, tracing, freezing, seizure and confiscation of the proceeds of criminal activities.

1.   The Parties recognise the importance of promoting and protecting the fundamental rights to privacy and data protection, including security of personal data, as a central factor of consumer trust in the digital economy and an essential element for further developing commercial exchanges and law enforcement cooperation.

2.   The Parties shall cooperate to ensure the effective protection of the rights referred to in paragraph 1, including in the context of the prevention and combatting of terrorism and of other transnational crimes. Cooperation at bilateral and multilateral level shall take into account existing international commitments and the Parties' respective laws and regulations where applicable. It may include capacity-building, technical assistance and the exchange of information and expertise.

1.   Each Signatory MERCOSUR State agrees that the diplomatic and consular authorities of any represented Member State shall provide protection to any national of a Member State which does not have a permanent representation in its territory in a position to provide consular protection in a given case, on the same conditions as to nationals of that Member State.

2.   Each Member State agrees that the diplomatic and consular authorities of any represented Signatory MERCOSUR State shall provide protection to any national of a Signatory MERCOSUR State which does not have a permanent representation in its territory in a position to provide consular protection in a given case.

1.   The Parties reaffirm their commitment to promote sustainable and inclusive economic development, contributing to the principles set forth in the Rio Declaration on Environment and Development adopted by the United Nations Conference on Environment and Development in 1992 (hereinafter referred to as ‘Rio Declaration on Environment and Development of 1992’), supported by the Outcome Document of the United Nations Conference on Sustainable Development of 2012 incorporated in Resolution 66/288 adopted by the United Nations General Assembly on 27 July 2012 entitled ‘The Future We Want’ (hereinafter referred to as ‘the Outcome Document of the UN Conference on Sustainable Development of 2012 entitled “The Future We Want”’) and the 2030 Agenda. In that framework, the Parties shall cooperate to implement and achieve the SDGs, recognising that their broad and ambitious nature calls for urgent action.

2.   The Parties recognise the importance of dialogue and cooperation as essential for addressing the challenges linked to achieving the SDGs and further recognise the importance of multi-stakeholder engagement, including the private sector and civil society, in international cooperation.

3.   The Parties will work towards consolidating economic growth in a way that reduces inequalities and respects the principles of sustainable development.

4.   The Parties should promote sustainable consumption and production patterns and raise awareness of the economic and social costs of environmental damage and its associated impact on human well-being.

5.   The Parties shall promote sustainable development through dialogue, the sharing of good practices, good governance and sound financial management.

6.   The Parties share a common goal of eradicating poverty and supporting inclusive economic development and shall work together whenever possible to achieve this aim.

7.   The Parties shall work together to strengthen the implementation of the 2030 Agenda and the methodologies of follow-up, the accountability to their citizens on the implementation of results related to the monitoring of the 2030 Agenda, and the evaluation of cooperation actions, including qualitative and quantitative data taking into account the impact on the ground.

8.   Acknowledging gender equality and the empowerment of women and girls as essential for sustainable development, the Parties will explore further schemes of cooperation.

9.   The Parties shall promote structures for South – South and triangular cooperation. Such cooperation will involve establishing joint initiatives with third countries with the aim of working together to support the design and implementation of multilevel strategies for the 2030 Agenda, as well as any other relevant future interregional and international agreements on sustainable development.

10.   The Parties understand the comprehensive nature of the SDGs. In this context, the Parties should encourage innovative partnerships, which embrace a multi-stakeholder approach in order to promote and implement international development initiatives. These partnerships may include the private sector, organised civil society, philanthropic organisations and local and regional authorities.

11.   The Parties recognise the importance of a comprehensive approach to social development, which must go hand in hand with economic development and environmental sustainability. They shall give priority to promote full employment, social inclusion and cohesion, as well as the participation of civil society. In line with the objectives of SDG 8, they shall promote decent work for all as provided by the International Labour Organisation (hereinafter referred to as ‘ILO’) Declaration on Social Justice for a Fair Globalization, adopted by the International Labour Conference at its 97th Session in Geneva on 10 June 2008 (hereinafter referred to as ‘ILO Declaration on Social Justice for a Fair Globalization’).

1.   The provisions of this Agreement shall not affect the implementation of programmes, projects and activities under the 1995 Interregional Framework Cooperation Agreement, and shall not affect ongoing or future bilateral cooperation developed on the basis of bilateral programming instruments, such as indicative programmes or any other relevant instrument.

2.   Cooperation shall be carried out in line with the relevant internationally agreed principles and policies to which both Parties have adhered, and in line with the relevant legislative framework of the EU on the one hand, and of MERCOSUR and its Signatory States, on the other hand.

1.   The aim of environmental cooperation should be to contribute to the protection, conservation, sustainable use of natural resources and to the promotion of sustainable development through coordination, integration and mutually supportive consideration of its three dimensions – economic, social and environmental – in accordance with the principles set out in the Rio Declaration on Environment and Development of 1992, supported by the Outcome Document of the UN Conference on Sustainable Development of 2012 entitled ‘The Future We Want’ and the 2030 Agenda, and taking into account different national realities, capacities and levels of development and respecting national policies and priorities.

2.   Environmental cooperation should focus in particular on:

Under this Agreement, environmental cooperation should also promote the development of environmentally sound infrastructure.

1.   The Parties recognise the importance of policies to promote sustainable urban development and of the need to contribute to the effective implementation of the New Urban Agenda adopted by the UN Conference on Housing and Sustainable Urban Development (HABITAT III) and the aspects of the 2030 Agenda relevant to sustainable urban development.

2.   The Parties shall promote cooperation and partnership involving all the key actors relevant to policy and practice in the field of sustainable urban development, in particular, on ways to address urban challenges in an integrated and comprehensive manner.

3.   The Parties shall promote knowledge sharing and the exchange of experiences on, inter alia, disaster risk reduction and management policies aimed at strengthening the resilience of cities and human settlements. The Parties shall do so, inter alia, through the development of quality infrastructure and spatial planning and the implementation of urban development plans. These plans should consider key topics such as the effective use of renewable energy sources, urban inclusion, taking into account the different levels of urbanisation within the global south, and financing mechanisms for urban development projects at the local, national and regional level.

4.   To this end, the Parties shall commit to expanding, wherever possible, concrete opportunities for decentralised, city-to-city cooperation at regional and international level, with a view to improving urban governance and capacity building through exchanges of experience and practice, as well as mutual learning, on sustainable solutions to urban challenges.

1.   The Parties recognise that the global threat of climate change calls for the widest possible cooperation of all countries to reduce global greenhouse gas emissions and to adapt to the adverse effects of climate change in a manner that does not threaten food production, with developed countries continuing to take the lead. The Parties reiterate their commitment to the implementation of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change, done at New York on 9 May 1992 (hereinafter referred to as ‘UNFCCC’), reflecting equity and the principle of common but differentiated responsibilities and respective capabilities, in light of different national circumstances.

2.   The Parties shall cooperate, as appropriate, on trade-related climate change issues bilaterally, regionally and in relevant international fora. In this context, recognising the role of trade in contributing to the response to the urgent threat of climate change, each Party shall remain a party, in good faith, of the UNFCCC and its Paris Agreement (2).

3.   The Parties agree that the second sentence of paragraph 2 constitutes an essential element of this Agreement.

4.   Nothing in this Article prejudices to the rights of a Party to have recourse to dispute settlement procedures available under any other international agreement to which the Parties are party, including the WTO Agreement.

5.   Within the scope of their respective competences, and based on the UNFCCC, and its Paris Agreement, the Parties should enhance cooperation and policy dialogue to drive the transformation to low greenhouse-gas (hereinafter referred to as ‘GHG’) emissions development, in accordance with their responsibilities and capabilities, and exchange information and experiences on, inter alia:

6.   To these ends, the Parties agree to improve cooperation and exchange information and experiences in this field, and to continue their existing obligations under the UNFCCC and its Paris Agreement. To this effect, developed countries will provide financial resources for mitigation and adaptation and mobilise climate finance from a wide variety of sources, instruments and channels, taking into account the needs and priorities of developing country parties, as well as other means of implementation for the achievement of the objectives set out in the Paris Agreement.

1.   The Parties recognise the importance of the conservation and sustainable use of marine resources, including the sustainable and responsible management of fisheries, aquaculture and other maritime activities and their contribution to providing environmental, economic and social opportunities for present and future generations, in the context of the conservation and sustainable use of the oceans, seas and marine resources with the long-term objective of improving the state of the oceans, including by strengthening the framework of international institutions and fora, where appropriate.

2.   In a manner consistent with their obligations under international law, in particular UNCLOS, the Parties undertake to:

3.   The Parties agree to strengthen dialogue and cooperation with regard to:

1.   The Parties shall aim to facilitate the exchange of ideas, experiences and best practices on how to improve access to secure, sustainable and affordable energy, including through the fostering of new investments and the transfer of technology between public and private economic operators of the Parties, especially with regard to electricity, hydrocarbon, renewable energy, including sustainable production and use, biofuels and the efficient use of energy.

2.   Cooperation under this Article, based on the principle of the sovereign right of States to manage their own natural resources, with a view to ensuring access to affordable, reliable, sustainable and modern energy for all, shall take the form of, inter alia:

1.   In the framework of their cooperation, the Parties recognise that all peoples have the right to pursue their economic, social and cultural development. The Parties, acknowledging that social development should progress in parallel with economic development, agree to cooperate in enhancing social inclusion and cohesion through the reduction of poverty, injustice and inequality.

2.   The main objectives of economic cooperation are to contribute to the expansion, diversification and deepening of economic and commercial ties between the Parties, strengthening the productive sector, with special attention to SMEs, the creation of new opportunities and an increase in international competitiveness and innovation, and to reinforce the process of regional economic integration.

3.   Economic cooperation should be strengthened as a way of contributing to the easing of the economic implications that might arise from structural changes resulting from this Agreement.

4.   Any measure that could contribute to the further development of regional integration or the reinforcement of the interregional relations in social, economic and cultural areas between the Parties should be encouraged.

1.   The Parties shall promote corporate social responsibility in accordance with international standards, such as the OECD Guidelines for Multinational Enterprises and Due Diligence Guidance.

2.   The Parties support the dissemination and implementation, on a voluntary basis, of the UN Guiding Principles on Business and Human Rights, emphasising the importance of a comprehensive discussion with all relevant stakeholders.

3.   The Parties shall promote the voluntary incorporation by companies in their internal policies of principles of corporate social responsibility or responsible business conduct, including by encouraging the uptake of relevant practices, consistent with the international instruments referred to in this Article.

1.   The Parties recognise the importance of promoting SMEs and strengthening industry to foster inclusive and sustainable economic growth across the regions, promote higher levels of social cohesion, and close territorial gaps, thereby improving equity in lagging areas. The Parties recognise that the promotion of SMEs' competitiveness contributes positively to a strengthened social fabric, through job creation and poverty reduction, as well as to reducing other economic implications that might arise from structural changes resulting from this Agreement.

2.   The Parties shall support women's economic empowerment through entrepreneurship and business creation.

3.   The Parties shall promote industrial cooperation and strengthen cooperation on SMEs, with a view to enhancing productivity and improving competitiveness in order to boost trade and investment between the Parties, while balancing the opportunities provided by this Agreement to both Parties.

4.   The Parties shall promote an attractive and stable climate for greater mutually beneficial business opportunities, including for SMEs, and undertake to strengthen cooperation with the purpose of contributing to the expansion, diversification and deepening of economic and commercial ties between the Parties.

5.   The Parties agree to promote the development of SMEs, embracing both rural and urban firms, and to encourage their introduction into international markets.

6.   The implementation of this Article may include the following actions, which cover all kinds of businesses, including SMEs:

7.   In addition to the cooperation referred to in paragraph 4, the Parties agree that cooperation with regard to SMEs may involve, inter alia:

1.   The Parties shall cooperate in the areas of scientific research, technological development and innovation on the basis of common interest and mutual benefit and in accordance with their respective legislation. Such cooperation shall aim to promote sustainable development, tackle global challenges, achieve scientific excellence, improve regional competitiveness and strengthen the relations between the Parties, taking into account their research and innovation capacities and specific priorities. The Parties shall foster policy dialogue at regional level and use their different instruments, including agreements for science, technology and innovation (hereinafter referred to as ‘STI’) cooperation, in complementary ways.

2.   In order to improve the conditions for cooperation, the Parties shall also seek to:

3.   The Parties shall promote, inter alia, the following activities to be undertaken by government organisations, public and private research centres, higher-education institutions, innovation agencies and networks, as well as other stakeholders, including SMEs:

1.   The Parties shall engage in capacity-building activities in the area of competition policy, subject to the availability of funding for such activities under the Parties' cooperation instruments and programmes.

2.   Technical assistance shall focus on institutional capacity-building and training of human resources of the competition authorities, to support them in the establishment of their respective competition regimes and effective enforcement. The aim shall be to strengthen and effectively enforce competition law in the areas of anti-competitive practices and concentrations between undertakings, including competition advocacy.

1.   Cooperation activities in this area shall aim in particular to promote:

2.   The Parties consider that the global management of the internet should be based on a transparent and democratic multi-stakeholder model, with the full involvement of, inter alia, governments, the private sector, civil society, academia, the scientific and technological community and international organisations, according to their respective roles and responsibilities. It should ensure the equitable management of resources and the free flow of information, facilitate access for all and ensure the resilient, stable and secure functioning of the internet, taking into account multilingualism.

3.   The Parties reaffirm their commitment to working together towards a people-centred, inclusive and development-oriented information society and their agreement to continue to coordinate positions for the WSIS follow-up mechanisms, as well as in the other fora or organisations related to internet governance.

4.   The Parties stress that every effort should be made in internet governance fora to mobilise and ensure the meaningful and effective participation of all countries, in particular developing countries, including all stakeholders, within their own roles, such as governments, the private sector, civil society, academia, the scientific and technological community and international organisations.

1.   The Parties agree to cooperate in relevant areas of transport policy, including integrated transport policy, with a view to developing and supporting an efficient, sustainable, safe and secure and environmentally friendly transport system for both passengers and goods.

2.   Cooperation between the Parties shall aim to promote, inter alia:

1.   Cooperation between the Parties shall primarily aim to improve the exchange of information and establish best practices in order to ensure the balanced and sustainable development of tourism and to support the creation of jobs, economic development and the improvement of quality of life.

2.   For the purposes of paragraph 1, the Parties shall focus on, inter alia:

1.   The Parties, acknowledging that social development goes hand in hand with economic development, agree to give priority to enhancing social cohesion through poverty eradication, inequality reduction and the promotion of social inclusion, in particular with a view to the fulfilment of the 2030 Agenda and its SDGs.

2.   The Parties agree to enhance cooperation in the field of social affairs with the aim of contributing to sustainable and inclusive economic growth and development and to promote cooperation and exchanges of information with regard to, inter alia:

1.   In line with the internationally agreed objective of promoting fair globalisation and considering the aims of SDG 8, the Parties shall promote full employment, decent work for all, and the respect for the fundamental principles and rights at work identified by the ILO Conventions (the elimination of discrimination, abolition of all forms of forced labour, sustained eradication of child labour, and freedom of association and collective bargaining) in accordance with the ILO Declaration on Social Justice for a Fair Globalisation and other international commitments.

2.   The Parties agree to enhance cooperation in the area of employment and to promote cooperation and exchanges of information, in particular with regard to:

1.   The Parties agree to cooperate on formal and non-formal education, including vocational education and training with a lifelong learning perspective. Within these fields, special attention shall be paid to promoting inclusive and quality education and training for women and vulnerable social groups.

2.   In order to build capacities and expertise, the Parties shall promote mobility and cooperation of their relevant stakeholders in higher education and research, and foster links between universities, research facilities and businesses.

3.   The Parties shall promote people-to-people contact and mutual understanding through cooperation in the field of education, youth and sport, including financial support for the mobility of students, PhD candidates, academic and administrative staff from higher education institutions and researchers, and capacity-building actions.

1.   The Parties shall undertake to promote cooperation in the field of culture, including cultural heritage, with due respect for their diversity. In conformity with the Parties' respective laws and regulations, such cooperation shall aim to enhance mutual understanding and intercultural dialogue and foster balanced cultural exchanges and contact with relevant actors.

2.   The Parties agree to cooperate in relevant international fora, such as the UN Educational, Scientific and Cultural Organisation (hereinafter referred to as ‘UNESCO’), in order to pursue common objectives and to foster cultural diversity, in particular through the implementation of the UNESCO Convention on the Protection and Promotion of Diversity of Cultural Expressions.

3.   The Parties shall encourage exchanges of information and experiences and shall support and facilitate cooperation and dialogue between their relevant institutions and operators in the areas of culture, audiovisual and media.

1.   The Parties agree to promote the exchange of experience between both regions, with a view to reinforcing their respective integration processes.

2.   The Parties agree in particular to promote closer cooperation on integration issues between the institutions of the Parties, as well as the sharing of expertise through meetings between staff of the European Union and MERCOSUR institutions, regular exchanges of information, studies, joint projects and training.

3.   In order to encourage cooperation on regional and local development, priority shall be given to:

4.   Cooperation on regional and local development may include:

1.   The Parties shall establish a free trade area for goods over a transitional period starting on the date of entry into force of this Agreement.

2.   Except as otherwise provided in this Part of the Agreement, the provisions of this Chapter apply to trade in goods of a Party.

1.   The Parties recognise the importance of customs and trade-facilitation matters in the evolving global trading environment.

2.   The Parties recognise that international trade and customs instruments and standards are the basis for import, export and transit requirements and procedures.

3.   The Parties recognise that their legislation should be non-discriminatory and that customs and other trade-related procedures should be based upon the use of modern methods and effective controls to combat fraud, protect consumer health and safety and promote legitimate trade. Each Party should periodically review its legislation and customs procedures. The Parties also recognise that their customs and other trade-related procedures should not be more administratively burdensome or trade-restrictive than necessary to achieve legitimate objectives and that they should be applied in a predictable, consistent and transparent manner.

4.   The Parties shall reinforce their cooperation with a view to ensuring that the relevant laws and regulations, as well as the administrative capacity of the relevant administrations, fulfil the objectives of promoting trade-facilitation while ensuring effective control of import, export and transit of goods at the border.

5.   The Parties shall cooperate with a view to supporting the development of regional integration within both the European Union and MERCOSUR.

1.   The Parties, through their respective authorities, shall cooperate on customs and other trade-related matters in order to ensure that the objectives set out in Article 12.1 are attained.

2.   Cooperation may include:

3.   The Parties shall provide each other with mutual administrative assistance in customs matters in accordance with the provisions of Annex 12-A.

1.   Each Party's customs and trade-related laws and regulations (17) shall be based upon:

2.   In order to improve working methods, as well as to ensure non-discrimination, transparency, efficiency, integrity and accountability of operations, each Party shall:

1.   Each Party shall adopt or maintain requirements and procedures that:

2.   For the purposes of point (c) of paragraph 1, as a condition for such release, each Party may require a guarantee for any amount not yet determined in the form of a surety, a deposit or another appropriate instrument provided for in its laws and regulations. Such guarantee shall not be greater than the amount the Party requires to ensure payment of customs duties, taxes, fees and charges ultimately due for the goods covered by the guarantee. The guarantee shall be discharged when it is no longer required (19).

3.   Each Party shall strive to further reduce release-times and release the goods without undue delay.

1.   For the purposes of this provision, perishable goods are goods that rapidly decay due to their natural characteristics, in particular in the absence of appropriate storage conditions.

2.   Each Party shall give appropriate priority to perishable goods when scheduling and performing any examinations that may be required.

3.   On request of an economic operator, each Party shall, if practicable and consistent with its laws and regulations:

1.   For the purposes of this Article, ‘advance ruling’ means a written decision provided to an applicant prior to the importation of a good covered by the application that sets forth the treatment that the Party shall provide to the good at the time of importation with regard to:

2.   Each Party shall issue, through its customs authorities, an advance ruling that sets forth the treatment to be provided to the goods concerned. If an applicant submits a written request, including in electronic format, containing all necessary information in accordance with the laws and regulations of the issuing Party, that ruling shall be issued in a reasonable, time-bound manner.

3.   The advance ruling shall be valid for a period of at least 3 (three) years after its issuance unless the law, facts or circumstances supporting the original advance ruling change.

4.   A Party may decline to issue an advance ruling if the question raised is the subject of administrative or judicial review or if the application does not relate to any intended use of the advance ruling. If a Party declines to issue an advance ruling, it shall promptly notify the applicant in writing, setting out the relevant facts and the basis for its decision.

5.   Each Party shall publish, at least:

6.   If a Party revokes, modifies or invalidates an advance ruling, it shall provide written notice to the applicant setting out the relevant facts and the basis for its decision. A Party may revoke, modify or invalidate an advance ruling with retroactive effect, only if the ruling was based on incomplete, incorrect, false or misleading information.

7.   An advance ruling issued by a Party shall be binding on that Party in respect of the applicant that sought it. The Party may provide that the advance ruling be binding on the applicant.

8.   Each Party shall provide, upon written request of an applicant, a review of the advance ruling or of the decision to revoke, modify or invalidate it (20).

9.   Subject to any confidentiality requirements, substantive elements of these rulings shall be published, online or in other appropriate formats.

10.   To facilitate trade, the Subcommittee on customs, trade facilitation and rules of origin, referred to in Article 12.21, shall regularly discuss updates on changes in the respective laws and regulations of the Parties on the matters listed in this Article.

11.   The Parties may agree upon advance rulings on any other matter.

1.   Each Party shall ensure freedom of transit through its territory via the route most convenient for transit.

2.   Without prejudice to legitimate control, each Party shall accord to traffic in transit to or from the territory of the other Party treatment no less favourable than that accorded to its own like goods and their movement, including imports and exports, when such goods are transported on the same route under like conditions.

3.   Each Party shall, to the extent possible, apply to transhipped goods customs procedures that are less burdensome than those applied to traffic in transit.

4.   Each Party shall operate bonded transport regimes that allow the transit of goods without payment of customs duties or other charges subject to the provision of an appropriate guarantee.

5.   Each Party shall promote and implement regional transit arrangements with a view to facilitating traffic in transit and reducing trade barriers.

6.   Each Party shall draw upon and use international standards and instruments relevant to transit.

7.   Customs transit procedures may be used also if the transit of goods begins or ends in the territory of a Party (inland transit).

8.   The Parties shall ensure that all concerned authorities and agencies in their respective territories cooperate and coordinate on customs matters with a view to facilitating traffic in transit.

1.   Each Party shall establish or maintain a trade-facilitation partnership programme for operators who meet specified criteria (hereinafter referred to as ‘authorised economic operators’).

2.   The specified criteria that operators need to meet in order to qualify as authorised economic operators (hereinafter referred to as ‘the specified criteria’) shall be related to compliance, or the risk of non-compliance, with requirements specified in each Party's laws and regulations. The specified criteria, which shall be published, may include:

3.   The specified criteria shall not be designed or applied so as to afford or create arbitrary or unjustifiable discrimination between operators where the same conditions prevail and shall allow the participation of SMEs.

4.   The trade-facilitation partnership programme shall include at least four of the following benefits:

5.   The Parties should ensure coordination between customs authorities and other border agencies in the development of their respective authorised economic operator programmes through means such as the alignment of requirements, the minimisation of unnecessary duplication and the access to benefits related to controls and requirements administered by agencies other than customs authorities.

1.   The Parties recognise the importance of timely consultations with trade representatives on their respective proposed laws and procedures related to customs and trade facilitation matters.

2.   Each Party shall ensure that its respective customs and other trade-related requirements and procedures continue to meet the needs of the trading community, follow best practices and remain as less trade-restrictive as possible.

3.   Each Party shall, as appropriate, provide for regular consultations between its border agencies and traders or other stakeholders located within its territory.

4.   Each Party shall promptly publish, in a non-discriminatory and easily accessible manner, and as far as possible through electronic means, new laws, regulations and general procedures related to customs and trade-facilitation matters prior to the application of any such laws, regulations or general procedures, as well as changes to and interpretations of such laws, regulations and general procedures. This shall include:

5.   Each Party shall ensure there is a reasonable time period between the publication of new or amended laws, regulations and general procedures and fees or charges and their entry into force.

6.   Each Party shall make available online and update, as appropriate, the following:

7.   Each Party shall establish or maintain one or more enquiry points to answer within a reasonable time enquiries from governments, traders and other interested parties on customs and other trade-related matters. The Parties shall not require the payment of a fee for answering enquiries or providing required forms and documents. The enquiry points shall answer enquiries and provide the forms and documents within a reasonable time period set by each Party, which may vary depending on the nature or complexity of the enquiry.

1.   Each Party shall adopt or maintain a risk management system for customs control.

2.   Each Party shall design and apply risk management in such a manner as to avoid arbitrary or unjustifiable discrimination, or disguised restrictions on international trade.

3.   Each Party shall concentrate customs control and other relevant border controls on high-risk consignments and expedite the release of low-risk consignments. Each Party may also select, on a random basis, consignments for such controls as part of its risk management.

4.   Each Party shall base risk management on assessment of risk through appropriate selectivity criteria.

5.   The provisions of this Article are, whenever possible, applicable to procedures administered by other border agencies.

1.   With a view to expediting the release of goods, each Party shall adopt or maintain post-clearance audit to ensure compliance with customs and other related laws and regulations.

2.   Each Party shall conduct post-clearance audits in a risk-based manner.

3.   Each Party shall conduct post-clearance audits in a transparent manner. If an audit is performed and conclusive results have been achieved, the Party shall, without delay, notify the person whose record is audited of the results, the person's rights and obligations and the reasons for the results.

4.   The Parties acknowledge that the information obtained in a post-clearance audit may be used in further administrative or judicial proceedings.

5.   The Parties shall, wherever practicable, use the results of a post-clearance audit in applying risk management.

1.   Each Party shall provide effective, prompt, non-discriminatory and easily accessible procedures to guarantee the right of appeal against the administrative actions, rulings and decisions of customs or other competent authorities affecting import or export of goods or goods in transit.

2.   Appeal procedures may include administrative review by the supervising authority and judicial review of decisions taken at the administrative level according to each Party's laws and regulations.

3.   Any person who has applied to the customs authorities for a decision and has not obtained a decision on that application within the applicable time-limits shall also be entitled to exercise the right of appeal.

4.   Each Party shall provide a person to whom it issues an administrative decision with the reasons for that decision, so as to enable that person to have recourse to appeal procedures if necessary.

1.   Each Party shall ensure that import, export and transit formalities and data and documentation requirements are:

2.   MERCOSUR shall work towards applying common customs procedures and uniform customs data requirements for the release of goods.

1.   Each Party shall use information technologies that expedite procedures for the release of goods in order to facilitate trade between the Parties.

2.   Each Party shall:

3.   Each Party shall adopt or maintain procedures allowing the option of electronic payment for duties, taxes, fees and charges incurred upon importation and exportation collected by customs authorities and, whenever possible and applicable, by other border agencies.

1.   Each Party shall ensure that its customs laws and regulations provide that any penalties imposed for breaches of customs regulations or procedural requirements be proportionate and non-discriminatory.

2.   Penalties for a breach of a Party's customs law, regulation or procedural requirement are imposed only on the person responsible under that Party's law for such breach.

3.   Penalties imposed shall depend on the facts and circumstances of the case and shall be commensurate with the degree and severity of the breach. Each Party shall avoid incentives for the assessment or collection of penalties or conflicts of interest in the assessment and collection of penalties.

4.   In the event of voluntary prior disclosure to a customs administration of the circumstances of a breach of a customs law, regulation or procedural requirement, each Party is encouraged to consider this as a potential mitigating factor when establishing a penalty.

5.   When a penalty is imposed for a breach of a customs law, regulation or procedural requirement, an explanation in writing is provided to the person upon whom the penalty is imposed specifying the nature of the breach and the applicable law, regulation or procedure under which the amount or range of penalty for the breach has been prescribed.

1.   For the purposes of this Article, the term ‘temporary admission’ means the customs procedure under which certain goods, including their means of transport, that are brought into a customs territory for a specific purpose are conditionally relieved from payment of import duties and taxes, without application of import prohibitions or restrictions of economic character. Such goods must be intended for re-exportation within a specified period and without having undergone any change except normal depreciation due to the use made of them.

2.   Nothing in this Article should be construed as to relieve imported goods from meeting trade-related requirements of non-economic character, in particular sanitary and phytosanitary measures.

3.   Each Party shall, in accordance with its law, grant temporary admission, with total conditional relief from import duties and taxes and without application of import restrictions or prohibitions of economic character to the following goods:

4.   Each Party shall, for the temporary admission of the goods referred to in paragraph 3 and regardless of their origin, accept A.T.A. carnets issued and endorsed by the other Party in accordance with the Customs Convention on the A.T.A. Carnet for the temporary admission of goods done at Brussels on 6 December 1961, and guaranteed by an association forming part of the international guarantee chain, certified by the competent authorities and valid in the territory of the importing Party (21).

1.   The Parties reaffirm their rights and obligations under the TBT Agreement, which is hereby incorporated into and made part of this Agreement.

2.   References to ‘this Agreement’ in the TBT Agreement are to be read, as appropriate, as references to the Partnership Agreement between the European Union and its Member States, of the one part, and the Common Market of the South, the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Oriental Republic of Uruguay, of the other part.

3.   The term ‘Members’ in the TBT Agreement means the Parties to this Agreement.

1.   This Chapter applies to the preparation, adoption and application of standards, technical regulations and conformity assessment procedures that may affect trade in goods between the Parties.

2.   This Chapter does not apply to:

1.   The Parties recognise the importance of intensifying their cooperation with a view to increasing mutual understanding of their respective systems and helping to eliminate or avoid the creation of TBT. In this regard, the Parties shall work towards the identification, promotion, development and implementation, as appropriate, of trade-facilitating initiatives, on a case-by-case basis.

2.   A Party may propose to the other Party sector-specific initiatives in matters covered by this Chapter. Those proposals shall be transmitted to the TBT Chapter coordinator, nominated pursuant to Article 13.13, and may include:

3.   Whenever one of the Parties proposes a specific trade-facilitating initiative, the other Party shall duly consider such proposal and reply within a reasonable period of time. If the other Party rejects the proposed initiative, it shall explain the reasons for its decision to the proposing Party.

4.   The terms of the work envisaged in this Article shall be defined by, on the one hand, the European Union and, on the other hand, MERCOSUR or the Signatory MERCOSUR States engaged in each trade-facilitating activity, if needed, and may include establishing ad hoc working groups. In order to benefit from non-governmental perspectives on matters related to this Article, each Party may, as appropriate and in accordance with its rules and procedures, consult with stakeholders and other interested parties.

5.   The Subcommittee on trade in goods, established pursuant to Article 9.9(4), shall discuss the results of the work carried out pursuant to this Article and may consider appropriate actions.

6.   Nothing in this Article shall be construed as obliging a Party to:

7.   If initiatives referred to in this Article are agreed and if that is necessary for their implementation, each Party shall facilitate the interaction of technical teams to demonstrate their conformity assessment schemes and systems in order to increase mutual understanding.

8.   For the purposes of this Article, the European Union shall act through the European Commission.

1.   Each Party shall make best use of good regulatory practices with regard to the preparation, adoption and application of technical regulations, as provided for in the TBT Agreement, including, for example, preference for performance-based technical regulations, use of impact assessments or stakeholder consultation.

2.   In particular, the Parties shall:

1.   The Parties reaffirm their obligations under Article 4.1 of the TBT Agreement, particularly in respect of taking all reasonable measures to ensure that all standardising bodies within their territories accept and comply with the Code of Good Practice for the Preparation Adoption and Application of Standards in Annex 3 to the TBT Agreement.

2.   International standards developed by ISO, IEC, ITU or the Codex Alimentarius shall be considered as the relevant international standards within the meaning of Articles 2 and 5 of, and Annex 3 to, the TBT Agreement.

3.   A standard developed by other international organisations may also be considered a relevant international standard within the meaning of Articles 2 and 5 of, and Annex 3 to, the TBT Agreement, if:

4.   With a view to harmonising standards on a basis as wide as possible, each Party shall encourage, within the limits of its competence and resources, the standardising bodies within its territory, as well as the regional standardising bodies of which that Party or the standardising bodies within its territory are members, to:

5.   The Parties should exchange information through the TBT Chapter coordinators, nominated pursuant to Article 13.13, on:

1.   The provisions set out in Article 13.6 with respect to the preparation, adoption and application of technical regulations also apply to conformity assessment procedures.

2.   If a Party requires conformity assessment as a positive assurance that a product complies with a technical regulation, it shall:

3.   If a Party requires third-party conformity assessment as a positive assurance that a product complies with a technical regulation, and it has not reserved this task to a governmental body as specified in paragraph 5, it shall:

4.   Nothing in point (g) of paragraph 3 shall be construed as prohibiting a Party from requiring subcontractors to meet the requirements that the conformity assessment body with which they entered into contract would be required to meet in order to perform the contracted tests or inspection itself.

5.   Nothing in this Article shall preclude a Party from requesting that conformity assessment in relation to specific products is performed by specified government authorities of that Party. In such cases, that Party shall:

6.   Notwithstanding paragraphs 3 to 5 of this Article, in the fields which are listed in Annex 13-A, in which the European Union accepts supplier's declaration of conformity as assurance that a product complies with a technical regulation, and in which a Signatory MERCOSUR State requires mandatory third-party testing or certification for these fields, the Signatory MERCOSUR State shall, as an assurance that a product complies with the requirements of a Signatory MERCOSUR State's technical regulations, accept certificates or, in cases where such acceptance is not provided for under its relevant laws and regulations, accept test reports issued by conformity assessment bodies that are located in the territory of the European Union and which have been accredited for the relevant scopes by an accreditation body member of the international arrangements for mutual recognition of the ILAC and the IAF; or accept certificates that have been issued under the IECEE CB Scheme. In order to accept such certificates or test reports, a Signatory MERCOSUR State may require in its relevant laws and regulations that bilateral arrangements, including memoranda of understanding, exist between the conformity assessment body located in the territory of the European Union and the conformity assessment body located in the territory of the Signatory MERCOSUR State.

7.   If a supplier's declaration of conformity is considered a valid conformity assessment procedure in the European Union, test reports issued by conformity assessment bodies that are located in the territory of the Signatory MERCOSUR State shall be accepted as a valid document in the process of demonstrating that a product conforms with the European Union's technical regulation requirements. The manufacturer shall remain responsible in all cases for the conformity of the product.

8.   Paragraph 6 also applies where a Signatory MERCOSUR State introduces new mandatory third-party testing or certification requirements for the fields specified in Annex 13-A, in accordance with paragraph 10 of this Article. If the European Union introduces mandatory third-party testing or certification requirements for the fields specified in Annex 13-A, in accordance with paragraph 10 of this Article, the Parties shall discuss in the Subcommittee on trade in goods, referred to in Article 13.14, whether any steps need to be taken to ensure reciprocity as regards the acceptance of tests reports or certificates issued by conformity assessment bodies that are located in the territory of the Signatory MERCOSUR State.

9.   The Joint Council in trade configuration may adopt a decision to amend Section A of Annex 13-A.

10.   Notwithstanding paragraph 6 of this Article, either Party may introduce requirements for mandatory third-party testing or certification for the fields specified in Annex 13-A, for products falling within the scope of that Annex under the following conditions:

11.   Paragraph 6 is without prejudice to the exercise, on a non-discriminatory basis, of market surveillance competences by the authorities of a Party, including additional testing on samples at the point of entry.

1.   With regard to the preparation, adoption and application of standards, technical regulations and conformity assessment procedures, each Party shall:

2.   For the purposes of point (d) of paragraph 1, where urgent problems of safety, health, environmental protection or national security arise or threaten to arise, Articles 2.10 and 5.7 of the TBT Agreement shall apply.

3.   If standards are made mandatory through incorporation or referencing in a draft technical regulation or conformity assessment procedure, the transparency obligations related to TBT notification set out in this Article and in Article 2 or 5 of the TBT Agreement shall be fulfilled.

4.   Each Party shall ensure that all technical regulations and mandatory conformity assessment procedures adopted and in force are publicly available on an official website free of charge. Each Party shall always provide unrestricted access to all information relevant to the achievement of conformity with a technical regulation. If standards provide a presumption of conformity with technical regulations and these standards are not referred to in those technical regulations, each Party shall ensure access to the information on corresponding standards.

5.   Each Party shall, upon a reasonable request of the other Party or its economic operators, provide information on technical regulations in force and, as appropriate and available, written guidance on compliance with the technical regulations, without undue delay.

1.   The Parties' technical regulations including or dealing exclusively with mandatory marking or labelling shall observe the principles of Article 2 of the TBT Agreement.

2.   In particular, if a Party requires mandatory marking or labelling of products:

3.   Paragraph 2 shall not apply to marking or labelling of medicinal products.

4.   If a Party considers that marking or labelling requirements for a product or a sector in the other Party could be improved, it may propose a trade-facilitating initiative to address its concerns in conformity with Article 13.5.

1.   To contribute to the fulfilment of the objectives of this Chapter, each Party shall, inter alia:

2.   A Party shall give appropriate consideration to proposals of the other Party for cooperation under this Chapter.

1.   Each Party may request to discuss any concern that arises under this Chapter, including any draft or proposed technical regulation or conformity assessment procedure of the other Party that the Party considers might significantly adversely affect trade between the Parties. The requesting Party shall deliver its request to the TBT Chapter coordinator of the other Party nominated pursuant to Article 13.13 and shall identify:

2.   Any information or explanation requested in accordance with paragraph 1 shall be provided no later than 60 (sixty) days after the date of the request of a Party in accordance with paragraph 1. The deadline may be extended with prior justification by the requested Party.

3.   If an issue has been previously addressed between the Parties in any forum, a Party may request directly a discussion, in person or via video or teleconference, no later than 60 (sixty) days after the date of such request. In such cases, the requested Party shall make every effort to be available for such discussion.