MERCOSUR: Structure and Agendas

MERCOSUR:

STRUCTURE AND AGENDAS

Montevideo, march 2016.

CONTENTS Structure 1.

2.

3.

4.

5.

6.

Background information States Parties and Associate States Organic structure Decision-making and regulatory system Disputes Settlement The Parliament

06 08 10 12 13 14

The Agendas 1.

2.

3.

4.

5.

6.

7.

8.

9.

Commercial integration Productive Integration Structural convergence Social and citizen integration Sub-national integration Educational integration Integration with Latin America and the Caribbean Extra-regional relations Academic exchanges

18 20 21 23 26 27 29 30 32

MERCOSUR: structures and agendas | 03

STRUCTURE

1. Background information The Southern Common Market (MERCOSUR, in Spanish) is a process of subregional integration, which had its origins in the signing of the Treaty of Asuncion (TA), on March 26, 1991. This agreement was made and entered into by the Argentine Republic, the Federative Republic of Brazil, the Republic of Paraguay and the Eastern Republic of Uruguay.

Its founding purpose is the creation of a Common Market (MC, in Spanish), which implies the free circulation of goods, services and factors of production among States Parties (EP, in Spanish), the establishment of a common external tariff (AEC, in Spanish), the adoption of a common trade policy towards third parties, the coordination of macroeconomic and sectoral policies, and the commitment to harmonizing legislations in pertinent areas.

Timeline 1991: Treaty of Asuncion: The MERCOSUR is created.

2002: Protocol of Olivos: Disputes Settlement.

1994: Protocol of Ouro Preto: Institutional structure of MERCOSUR.

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1998: Democratic Commitment (Protocol of Ushuaia).

Creation of th Convergence Fund (FOCEM

1998: Declaration of MERCOSUR as Peace Zone free of mass destruction weapons.

Constitutive Protocol of the M Parliament (PARLASUR

Later on, with the Protocol of Ouro Preto (POP), of December 17, 1994, the MERCOSUR gained the status of international organization, with legal personality under international law to be exercised by the Common Market Council (CMC).

The whole original institutional structure of the Common Market as regards administration is already outlined in the POP. Although the bloc was initially started with an impetus of economic and commercial nature, in the last two decades, regional integration was also strengthened in other areas of social and citizen nature, such as the cultural, educational, structural and production dimensions, as it will be shown below.

2009: Creation of the Institute of Public Policies on Human Rights (IPPDH, in Spanish).

2003: Body of Rules of the Protocol of Olivos: Creation of the Permanent Court of Review (TPR, in Spanish).

2005: he Structural M, in Spanish).

2005: MERCOSUR R, in Spanish).

2010: Creation of the role of MERCOSUR High Representative General (ARGM, in Spanish) and of the Social Participation Support Unit (UPS, in Spanish).

2007: Creation of the Social Institute of MERCOSUR (ISM, in Spanish).

2015: Bolivia adheres to MERCOSUR.

2006: Venezuela adheres to MERCOSUR.

MERCOSUR: structure and agendas | 07

2. States Parties and Associate States The States Parties, founders of MERCOSUR and signatories to the Treaty of Asuncion are Argentina, Brazil, Paraguay and Uruguay.

Since the Treaty of Asuncion is open to the accession of other member States of the Latin American Integration Association (ALADI, in Spanish), Venezuela became the first Latin American country to adhere to the constitutive treaty, in 2006, and more recently Bolivia, in 2015.

Venezuela concluded the accession process and gained State Party status as of 2013; since then, it participates with full rights and obligations in MERCOSUR. Bolivia’s Protocol of Accession to MERCOSUR has already been signed by all States Parties in 2015 and is currently undergoing the process of incorporation by the congresses of States Parties.

Entry of new members Requirements: to be members of the Latin American Integration Association (ALADI) and to follow the accession process described in the internal regulations of MERCOSUR. The main steps are:

Written application submitted before the CMC through the Pro Tempore Presidency (PPT, in Spanish).

Unanimous approval expressed by means of CMC Decision.

The Common Market Group (GMC, in Spanish) negotiates the terms, conditions and accession terms through an Ad Hoc Group (representatives of the adhering State and States Parties) and submits the results to the CMC for their approval.

Signing of an accession protocol that should be incorporated into the internal body of laws of the adhering State and of States Parties.

While the accession protocol is not in force, the adhering State only has the right to speak in the meetings of MERCOSUR forums and decision-making bodies.

Aspects included in the negotiation: accession to the TA, POP and to the Protocol of Olivos (PO); adoption of the AEC and definition of the convergence schedule for its application; accession to the Economic Complementation Agreement (ACE, in Spanish, NÂş 18) and additional protocols; adoption of the MERCOSUR body of rules; adoption of the international instruments made and entered into within the framework of the TA; incorporation to the agreements signed with thirdparty countries or group of countries, and participation in the ongoing external negotiations.

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Associate States are those that are members of ALADI, with which the MERCOSUR signs free trade agreements, and which later on request to be considered as such. The Associate States are authorized to participate in the meetings of MERCOSUR bodies addressing issues of common interest. This is the current situation of Chile, Colombia, Ecuador and Peru.

Likewise, those countries that enter into agreements with MERCOSUR within the framework of article 25 of the 1980 Treaty of Montevideo (TM80) (agreements with other Latin American States or economic integration areas) can also be Associate States. Such is the case of Guyana and Suriname.

Procedure to gain Associate State status The application to gain Associate State status should be submitted before the CMC, channeling it through the PPT. It is mandatory to adhere to the Protocol of Ushuaia on Democratic Commitment in the MERCOSUR, the Republic of Bolivia and the Republic of Chile (July 24, 1998) and to the Presidential Declaration on Democratic Commitment in the MERCOSUR (June 25, 1996). The adherence to other treaties related to MERCOSUR’s political, social and citizen dimension is optional.

MERCOSUR: structures and agendas | 09

3. Organic structure The organic structure of MERCOSUR is defined in the Protocol of Ouro Preto (POP), signed on December 17, 1994.

Said Protocol establishes the creation of three decision-making bodies: the Common Market Council (CMC), the Common Market Group (GMC) and the MERCOSUR Trade Commission (CCM, in Spanish). A group of subordinate bodies of diverse nature are dependent on these three decision-making bodies.

Furthermore, the POP defines other bodies of representative and consulting nature that make up the institutional structure, such as the Joint Parliamentary Commission, later replaced by the MERCOSUR Parliament, and the Economic and Social Consulting Forum; or of logistic and technical support nature, such as the MERCOSUR Secretariat.

In 1996, by means of a Head Office Agreement between MERCOSUR and Uruguay, the head office of the MERCOSUR Secretariat was based in Montevideo. The MERCOSUR Secretariat has its own group of international officers, selected through international public competitive examinations among the citizens of States Parties.

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The MERCOSUR Secretariat is made up of a Management office, a Coordination office and five sectors (Administration; Support; Technical Advisory; Computing; and Regulations, Documentation and Dissemination), and also comprises the Technical Unit of Statistics of Foreign Trade (UTECEM, in Spanish), the Technical Unit of International Cooperation (UTCI, in Spanish) and the Technical Unit of Education (UTE, in Spanish). The institutional structure of the MERCOSUR Secretariat (SM, in Spanish) also comprises the Technical Unit of FOCEM (UTF, in Spanish).

At the present time, other auxiliary bodies are also operating within the SM, such as the Permanent Review Court (TPR), the MERCOSUR Parliament (PARLASUR), the Social Institute of MERCOSUR (ISM), the MERCOSUR Institute of Public Policies on Human Rights (IPPDH), the MERCOSUR High Representative General (ARGM) and the Social Participation Support Unit (UPS).

MERCOSUR: structure and agendas | 11

4. Decision-making and regulatory system The MERCOSUR is a process of integration of intergovernmental nature, where each State Party has a vote, and decisions should be made by consensus and in the presence of all States Parties.

Once the rules have been negotiated and approved by the bloc’s decision-making bodies, these shall be mandatory and, when necessary, shall be incorporated into the national bodies of laws through the procedures specified by the legislation of each country.

In order to ensure the simultaneous effect of MERCOSUR rules in States Parties, a procedure has been established for the incorporation of MERCOSUR rules into the body of laws of Sates Parties pursuant to Article 40 of the above-mentioned Protocol.

Process for the enforcement of rules resulting from decision-making bodies The rule is approved by consensus in the decision-making body.

Each State Party incorporates it into its national body of laws (decree, law, etc.).

Each State notifies the MERCOSUR Secretariat of the incorporation.

Once all States Parties have notified the incorporation, the Secretariat makes the fact known.

The rule comes into effect simultaneously 30 days after the communication made by the Secretariat.

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Exceptions: 1) rules that regulate internal aspects of MERCOSUR’s operation; and 2) rules whose content is already regulated in the internal body of laws of certain State, in which case the State informs the Secretariat about the existence of the national rule in question.El

5. Disputes Settlement The dispute settlement system in force is regulated by the Protocol of Olivos, which was signed on February 18, 2002, and came into effect on January 1st, 2004.

The Protocol of Olivos provides for the creation of the Permanente Review Court (TPR), whose head office is located in the city of Asuncion.

The TPR is made up of permanent arbitrators, each one being a national of one of the States Parties with their respective alternates, and a fifth arbitrator, a national of one of the States Parties, elected by unanimous agreement, and if such agreement is not reached, he/she should be appointed by lottery. When the dispute involves two States, the TPR is made up of three members, one national of each party to the dispute, and the third one is appointed by lottery. When the dispute involves the participation of more than two States Parties, the TPR operates with all its members.

The TPR may act as court of appeals with respect to the arbitral awards issued by an Ad Hoc Arbitration Court (TAAH, in Spanish) or as court of first instance, in which case its award shall not admit appeals.

The current system is applied to: 1) disputes among States Parties; 2) claims by individuals, who access the system indirectly by submitting their claims before their State of usual residence or place of business; and 3) advisory opinions, which are reasonable legal determinations of a non-binding and non-mandatory nature issued by the TPR, with respect to the interpretation and application of MERCOSUR rules in a specific case. These can be requested by: the MERCOSUR decision-making bodies, the PARLASUR and the Courts of Justice of States Parties.

The Parliament

MERCOSUR: structure and agendas | 13

6. el parlamento The MERCOSUR Parliament, which replaced the Joint Parliamentary Commission, was created in 2005. It is a single-chamber body of citizen representation that incorporates the perspective of parliament into the integration process.

Initially, the Parliament had 18 members per country, appointed by the National Congresses of each country. The 2009 Political Agreement sets up rules for the States Parties to be represented, by means of direct elections, according to a demographic criterion. As a result of the direct elections, the body will have the following composition: Argentina 43; Brazil 75; Paraguay 18; Uruguay 18 and Venezuela 33.

It has been established that by 2020 all PARLASUR members shall be directly elected. Paraguay’s members have been directly elected to PARLASUR since 2007.

In 2015, Argentina will do the same. The representatives of Brazil, Uruguay and Venezuela are still being indirectly elected among their national legislators.

The above-mentioned agreement contemplates the accession of a new State Party to MERCOSUR. Said State shall have the corresponding number of seats, pursuant to the specifications included in the respective agreement.

In July 2015, with the decision that places Bolivia as a member in the process of accession to MERCOSUR, this country becomes a member of PARLASUR with the right to speak and participate, but not to vote. Once its full accession is completed, it will have 18 members in PARLASUR. The PARLASUR has an internal set of regulations that provides for ten plenary sessions per year, in the head office located in Montevideo, or by request, in the territory of any State Party.

The PARLASUR has ten permanent commissions for the exercise of the legislative task on specific issues. The commissions are entitled with the task of assessing the legislative matter related to the issues at stake and are made up of 14 members of Parliament each.

The PARLASUR instance of highest representation is the Plenary Session, in which formal acts are decided with the support of the legitimacy that defines the legislative competence of this body.

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Parlasur Acts Legal Opinion:

opinions issued by Parliament on rules sent by the CMC before their legislative approval in one or more State Parties

Bills:

proposals of rules submitted for the consideration of the CMC

Draft Bills:

proposals aimed at harmonizing the legislations of State Parties; these are submitted before National Parliaments for their eventual consideration

Declarations:

statements of the PARLASUR on any issue of public interest

Recommendations:

general indications addressed to MERCOSUR decision-making bodies

Reports:

studies on specific issues, carried out by one or more permanent or temporary commissions, approved by the Plenary Session

Provisions:

general rules of administrative character that regulate the internal organization of PARLASUR

Request of Advisory Opinions:

The PARLASUR may request advisory opinions to the Permanent Review Court

MERCOSUR: structures and agendas | 15

THE AGENDAS

1. Commercial integration The MERCOSUR is a regional integration process that, according to the Treaty of Asuncion, aims at the creation of a Common Market, which implies the free circulation of goods, services and factors of production among States Parties, the establishment of a common external tariff (AEC), the adoption of a common trade policy towards third parties, the coordination of macroeconomic and sectoral policies, and the commitment to harmonizing legislations in pertinent areas.

As of its creation, States Parties launched the implementation of the Trade Liberalization Program (1991-1994) and the Regime of Final Adaptation to the Customs Union (1995-1999), which consisted in the application of linear and automatic reductions on tariffs levied on trade among States Parties.

Since its inception, the MERCOSUR promoted the growth of trade in its States Parties. The evolution of intra-zone trade and exports to the rest of the world by MERCOSUR is shown in the following chart.

Evolution of MERCOSUR trade (Billions of current US dollars)

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Extra-zone exports (left axis)

Intra-zone trade (right axis)

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

0

2001

0

2000

10 1999

20

50 1998

100

1997

30

1996

40

150

1995

50

200

1994

250

1993

60

1992

70

300

1991

Source: Elaborated by SAT based on data from WITS, ALADI and SECEM.

350

To launch the Customs Union among MERCOSUR’s States Parties, it was necessary to agree on a MERCOSUR Common Nomenclature (NCM, in Spanish). This is based on the Harmonized Commodity Description and Coding System, and helps to identify and classify the goods traded in regional and international markets.

The Common External Tariff (AEC) was adopted in 1994, by means of Decision N° 22/94 of the Common Market Council (CMC). The AEC is based on the MERCOSUR Common Nomenclature (NCM) and is defined using an aliquot applicable to each tariff item.

Likewise, it was agreed that MERCOSUR States Parties could maintain a List of Exceptions to AEC, which should include a certain number of items of the NCM temporarily excluded from the AEC general regime. The exceptions currently in force are for the Capital Goods, Computer-Related Goods and Telecommunications Sectors, Automobile and Sugar Sector.

By undertaking the commitment to create a common market, States Parties aim, among other things, at the free circulation of goods, services and factors of production through the elimination, not only of customs duties, but also of nontariff restrictions, and the harmonization of rules and technical regulations.

At the present time, the commercial and economic integration agenda is focused on achieving improvements in terms of productive integration, seeking a betterintegrated chain of production at regional level.

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2. Productive Integration The MERCOSUR has developed a series of strategies and programs for the progress, promotion and development of production sectors, particularly by setting up regional value chains.

To such effect, the MERCOSUR Productive Integration Program (PIP, in Spanish) was approved in 2008, generally aimed at strengthening the complementarity of production of MERCOSUR companies, and particularly the integration of small and medium-sized enterprises (PYMES, in Spanish) and of companies from countries with relatively lower economic development into the chains of production, with a view to enhancing the bloc’s integration process, thus consolidating an increased competitiveness of the production sectors of States Parties and granting additional tools to improve their external insertion. The Program comprises seven lines of action at the horizontal level.

Lines of action of the Productive Integration Process 1.

2.

3.

4.

5.

6.

7.

Cooperation among the institutions involved in production and business development Complementarity in research and development, and technology transfer Training of human resources Articulation with other MERCOSUR agencies Data generation and processing Articulation of trade facilitation measures Funding and cooperation

At sectoral level, the Program provides for the development of competitiveness forums and value chain integration initiatives.

Within that framework, the Productive Integration Group (GIP, in Spanish) was created under the umbrella of the Common Market Group. The GIP concentrates the tasks in this area, and coordinates and executes the MERCOSUR Productive Integration Program, as well as all the related proposals and actions.

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3. Structural convergence The MERCOSUR Structural Convergence Fund (FOCEM) was created

by CMC Decision Nº 45/04, thus establishing a framework for the reduction of regional asymmetries. The goal of FOCEM is to fund programs aimed at 1) promoting structural convergence; 2) developing competitiveness; 3) promoting social cohesion, particularly in minor economies or less developed regions; and 4) supporting the operation of the institutional structure and the strengthening of the integration process.

FOCEM’s distribution rule 80

70

60

55,44

40

36,96

27

27

34,96

11,55

11,55

2

54,44

20 0

11,55 BRAZIL

ARGENTINA

-20

-15,45

VENEZUELA

URUGUAY

1 PARAGUAY

-15,45

-40 -60

-58,43 Contribution

Benefits

Net Transfer

The regulatory framework is supplemented by CMC Decisions Nº 18/05 and 24/05, which set up the eligibility conditions and requirements to submit projects, as well as the funding and resource distribution mechanisms. CMC Decision Nº 1/10 establishes the body of rules in force. In 2015, the validity of FOCEM’s body of rules was extended by CMC Decision Nº 03/15.

The FOCEM is a solidarity funding mechanism, based on an asymmetric system

MERCOSUR: structures and agendas | 21

of resource contribution and distribution among States Parties of 127 million dollars per year. Thus, the aim is to fund projects promoting competitiveness, social cohesion and asymmetry reduction.

States Parties submit their projects before the MERCOSUR Commission of Permanent Representatives (CRPM, in Spanish) at any time of the year. The CRPM, once a technical assessment has been carried out, determines the eligibility of projects for their approval by the Common Market Council.

The implementation of projects in the following areas is highlighted: drainage systems, drinking water, road rehabilitation and construction, laying of electricity grids and installation of high-voltage stations, improvement and enlargement of school facilities and rehabilitation of railways, among others.

The FOCEM Technical Unit, within the sphere of the MERCOSUR Secretariat, is the technical body created with the aim of evaluating and giving follow-up to the execution of funded projects.

Allocated FOCEM Resources (2005-2015) (Millions of US Dollars)

Uruguay

301

Venezuela 92

Paraguay

IV Program

753

1,6

Argentina 92

Brazil 92

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4. Social and citizen integration The MERCOSUR Social Action Strategic Plan (PEAS, in Spanish), the MERCOSUR Action Plan for the progressive development of a Citizenship Statute and the MERCOSUR Social and Labor Declaration are, as a whole, the main initiatives towards the consolidation of the MERCOSUR social and citizen dimension as one of the main strategic focal points at the current stage of the regional integration process.

The Social Action Strategic Plan (PEAS) is a key instrument to articulate and develop specific, comprehensive and inter-sectoral actions towards the consolidation of the social dimension of MERCOSUR. It is organized in 10 (ten) focal points distributed among 26 Guidelines and 101 Main Objectives. With a view to implementing the goals and objectives of this ambitious Regional Social Plan coordinated by the MERCOSUR Commission for the Coordination of Social Affairs Ministers (CCMASM, in Spanish), the MERCOSUR Social Institute (created in 2007) was also established and will play a key role in supporting its development and implementation.

The 10 focal points of the MERCOSUR Social Action Strategic Plan 1. To eradicate hunger, poverty and fight social inequalities.

2. To ensure Human Rights, humanitarian assistance and ethnic, racial and gender equality.

3. Universal access to public health care.

4. To provide universal access to education and eradicate illiteracy.

5. To value and promote cultural diversity.

6. To ensure production inclusion.

7. To ensure access to decent work and social security rights.

8. To promote environmental sustainability.

9. To ensure social dialogue.

10. To establish regional cooperation mechanisms for the implementation and funding of social policies

On the other hand, the MERCOSUR Citizenship Statute comprises a set of fundamental rights and benefits for all nationals of States Parties, and shall be based on the following objectives, among others: a) implementation of a policy of free

MERCOSUR: structures and agendas | 23

circulation of people in the region; b) equal civil, social, cultural and economic rights and liberties for the nationals of States Parties; c) equal conditions to access work, health and education. The MERCOSUR High Representative General is tasked with monitoring its fulfillment.

From the institutional point of view, the Social Participation Support Unit (UPS) was created to strengthen the construction of the social dimension. It is aimed at consolidating and enhancing the participation of social organizations and movements from the region in the bloc. The UPS has to strengthen the political and institutional aspect within the sphere of Social Summits, as one of the MERCOSUR spaces for popular participation.

The UPS acts as an institutional channel for dialogue between MERCOSUR and social organizations and movements. The UPS works in coordination with MERCOSUR agencies in the social area, particularly with the Meeting of Social Development Ministers and Authorities (RMADS, in Spanish), the Social and Economic Advisory Forum (FCES, in Spanish), the MERCOSUR Social Institute (ISM) and the Commission for the Coordination of Social Affairs Ministers (CCMASM), through the MERCOSUR High Representative General (ARGM).

In the field of public policies on Human Rights, the institutionalization of the Institute of Public Policies on Human Rights (IPPDH), headquartered in the Autonomous City of Buenos Aires, Argentina, should be mentioned. The IPPDH acts within the sphere of the MERCOSUR Meeting of High Authorities on Human Rights and Foreign Ministers (RAADDHH) and represents a technical instance of research and implementation of the strategic lines approved by the RAADDHH, with a view to contributing to the consolidation of the social dimension as a key focal point in the MERCOSUR integration process.

At last, in the regional summit held in the city of Brasilia, in July 2015, and pursuant to the provisions set forth in article 24 of the MERCOSUR Social and Labor Declaration, States Parties proceeded to review the Declaration signed on December 10, 1998.

Within such framework, they undertook the commitment to respect the fundamental rights contained therein, as well as to promote their application according to the national legislation and practices, the ratified international labor conventions, the collective work contracts, conventions and agreements, and the MERCOSUR regulatory acts related to these fundamental rights.

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Said declaration proposes to strengthen efforts towards the consolidation of employment and Decent Work as the guiding element of a regional integration process with equity and social justice, thus enhancing labor and social rights. On the other hand, the new Social and Labor Declaration reasserts the commitment to the ongoing social dialogue and tripartism as an essential mechanism to build the necessary consensus for the exercise of democratic governance.

Finally, States Parties undertake the commitment to promote social dialogue within the national and regional sphere, establishing effective permanent consultation mechanisms among government representatives, employers and workers, with a view to ensuring, by means of social consensus, favorable conditions for sustainable economic growth and social justice in the region, and improving the living conditions of their people.

Throughout the integration process, besides the advances that were achieved among States, the sub-national entities (municipalities, federated states, provinces

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5. Sub-national integration and departments) also started to participate in MERCOSUR’s institutions and integration AGENDA. The MERCOSUR Advisory Forum of Municipalities, Federated States, Provinces and Departments (FCCR, in Spanish) was created in December 2004 and set up on Thursday, January 18, 2007, within the framework of the 32nd MERCOSUR Summit of Head of States held in Rio de Janeiro.

The FCCR, that replaces the former Specialized Meeting of Municipalities and Mayoralties (REMI, in Spanish), is made up of a Committee of Municipalities and a Committee of Federated States, Provinces and Departments, and is aimed at promoting dialogue and cooperation between authorities of MERCOSUR States Parties at municipal, state, province and departmental level.

Furthermore, the FCCR can also propose policy coordination measures to promote the wellbeing and improve the quality of life of people inhabiting the Municipalities, Federated States, Provinces and Departments in the region, and give recommendations through the Common Market Group.

Thus, an institutional space for the participation of sub-national entities in the institutional structure was created, aimed at contributing to the construction of the integration agenda. At the present time, the FCCR acts within the framework of four lines of work, mentioned in the 2014-2016 Action Plan: Regional Citizenship, Productive Integration, Cross-Border Integration and Institutional Strengthening.

The MERCOSUR Education Sector is an educational policy coordination

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6. Educational integration space that gathers MERCOSUR States Parties and Associate States since December 1991, when the Common Market Council (CMC), through Decision Nº 07/91, created the MERCOSUR Meeting of Education Ministers (RME, in Spanish).

Over time, the Meeting of Ministers created other agencies to support the Sector. In 2001, through CMC Decision Nº 15/01, the “Organizational Structure of the MERCOSUR Education Sector” was approved, thus creating the Regional Coordination Committee, the Area Coordinating Regional Commissions (Basic, Technological and Superior) and the Information and Communication System Management Committee. In 2005, the Advisory Committee for MERCOSUR’s Educational Fund was created. The Network of National Accreditation Agencies and the Regional Commission for the Coordination of Teacher Training were created in 2006 and 2011, respectively. Besides the above, there are other agencies, both temporary and permanent, that manage specific actions.

Through the negotiation of public policies and the elaboration and implementation of joint programs and projects, the MERCOSUR Education Sector seeks the integration and development of education throughout the region of MERCOSUR and associate countries.

The mission of the MERCOSUR Education Sector is to set up a common education space, through the coordination of policies articulating education and the MERCOSUR integration process, by promoting the mobility, exchange and building of a regional identity and citizenship, with the aim of achieving quality education for all, with special emphasis on the vulnerable sectors within a development process that fosters social justice and respect for the cultural diversity of peoples in the region.

In 2014, through CMC Decision Nº 16/14, the MERCOSUR Integrated Mobility System (SIMERCOSUR, in Spanish) was implemented according to the MERCOSUR Integrated Mobility System (SIMERCOSUR) Operation Plan”. The SIMERCOSUR is the system that will improve, broaden and articulate the academic mobility initiatives in education within the framework of the MERCOSUR Education Sector (SEM) and will be developed under the coordination of the Meeting of Education Ministers (RME).

To support the implementation of SIMERCOSUR, the Technical Unit of Education (UTE) was created through GMC Resolution Nº 29/14 and shall operate within the sphere of the MERCOSUR Secretariat (SM). The UTE will

MERCOSUR: structures and agendas | 27

support the MERCOSUR Education Sector (SEM) and will depend, from the operational point of view, on the Meeting of Education Ministers (RME) through the Regional Coordinating Committee (CCR, in Spanish) of the MERCOSUR Education Sector. The UTE is tasked with supporting the administration, coordination and communication functions of the SEM, at the request of the diverse areas of the SEM, and managing, administrating and centralizing the MERCOSUR Integrated Mobility System (SIMERCOSUR), under the coordination and supervision of the SIMERCOSUR Working Group, among other things.

All South American countries are either States Parties or Associate States of

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7. Integration with Latin America and the Caribbean MERCOSUR. With all these countries, the MERCOSUR has signed free trade agreements, with the exception of Guyana and Suriname, which are at different compliance stages of their tariff reduction schedules. The MERCOSUR has also entered into trade agreements with Mexico and Cuba, both members of the Latin American Integration Association.

In this sense, the MERCOSUR is carrying out the following regional agreements and negotiations: States Parties believe that it is necessary to give priority to negotiations as a group MERCOSUR-Chile: Economic Complementation Agreement (ACE) N° 35 MERCOSUR-Bolivia: Economic Complementation Agreement (ACE) N° 36 MERCOSUR-Peru: Economic Complementation Agreement (ACE) N° 58 MERCOSUR-Andean Community of Nations (CAN, in Spanish): Economic Complementation Agreement (ACE) N° 59 MERCOSUR-Mexico: Economic Complementation Agreement (ACE) N° 54 and 55 MERCOSUR-Cuba: Economic Complementation Agreement (ACE) N° 62 Framework Trade and Investment Agreement between MERCOSUR and the Central American Common Market (CACM).

Memorandum of Understanding between MERCOSUR and the Republic of Trinidad and Tobago on Trade and Investments.

Memorandum to establish a Political Dialogue and Cooperation Mechanism between MERCOSUR and the Republic of Cuba.

MERCOSUR: structures and agendas | 29

8. Extra-regional relations when it comes to the negotiation of bilateral agreements. In this sense, to advance with the goal of adopting a common trade policy towards third parties, established in the Asuncion Treaty, CMC Decision Nยบ 32/00 was signed. This decision created the commitment of MERCOSUR States Parties to jointly negotiate trade agreements with extra-zone third-party countries or groups of countries in which tariff preferences are granted.

Within this framework, the MERCOSUR is carrying out the following extraregional agreements and negotiations:

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Framework Agreement for the Creation of a Free Trade Area between MERCOSUR and the Republic of South Africa Framework Agreement between MERCOSUR and the Republic of India MERCOSUR-India Preferential Trade Agreement Framework Agreement between MERCOSUR and the Arab Republic of Egypt Free Trade Agreement between MERCOSUR and the Arab Republic of Egypt Framework Trade Agreement between MERCOSUR and the Kingdom of Morocco Framework Trade Agreement between MERCOSUR and the State of Israel Free Trade Agreement between MERCOSUR and the State of Israel Framework Trade Agreement between MERCOSUR and the Islamic Republic of Pakistan Memorandum of Understanding for the establishment of a Political Dialogue and Cooperation Mechanism between States Parties and Associate States of the Southern Common Market and the Russian Federation Memorandum of Understanding on Trade and Investment Cooperation and Action Plan between MERCOSUR and the Republic of Singapore Framework Agreement between MERCOSUR and the Hashemite Kingdom of Jordan Framework Agreement for the establishment of a Free Trade Area between MERCOSUR and the Republic of Turkey Memorandum for the establishment of a Political Dialogue and Cooperation Mechanism between the Southern Common Market (MERCOSUR) and Associate States and the Republic of Turkey Memorandum of Understanding for the establishment of a Joint Advisory Group for the promotion of trade and investments between MERCOSUR and the Republic of Korea Framework Agreement for the Creation of a Free Trade Area between MERCOSUR and the Syrian Arab Republic Framework Trade and Economic Cooperation Agreement between MERCOSUR and the Organization for the Liberation of Palestine, on behalf of the Palestinian National Authority Free Trade Agreement between MERCOSUR and the State of Palestine Framework Trade and Economic Cooperation Agreement between MERCOSUR and the Tunisian Republic Memorandum of Understanding on Trade and Economic Cooperation between MERCOSUR and the Republic of Lebanon Framework Economic Cooperation Agreement between MERCOSUR States Parties and the Member States of the Cooperation Council for the Arab States of the Gulf (CCG) Preferential Trade Agreement between the Southern Common Market (MERCOSUR) and the South African Customs Union (SACU) Inter-regional Framework Cooperation Agreement between the Southern Common Market and the European Community

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9. Academic exchanges Agreements As regards the relationship with the academic sector, the MERCOSUR has launched a process that implies signing agreements between bodies within the MERCOSUR institutional structure and diverse universities, institutes and international organizations, in order to benefit from the exchange of experiences and practices. Said agreements are regulated by means of GMC Resolution Nยบ 11/11, which sets forth the requirements, the procedure for their institutionalization and a standard agreement model to be followed.

In this respect, it is worth mentioning that only those bodies within the MERCOSUR institutional structure having a budget and including MERCOSUR officers can sign these agreements.

To sign an agreement, the following requirements must be met:

To be in agreement with MERCOSUR objectives and address subjects that are within the sphere of the bodies in question; Not to affect the normal development of activities of the body in question, nor divert human resources or materials from the purposes defined in the corresponding MERCOSUR regulations; Not to cause more spending than that stipulated in the budget of the corresponding body; To maintain the confidentiality and discretion of the documents and data of that nature pertaining to the MERCOSUR and States Parties.

Within this framework, the Secretariat, as well as the TPR, ISM and IPPDH, among others, have signed agreements with different universities, institutes and international organizations.

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Internships The MERCOSUR has an internship regime, approved by GMC Resolution Nยบ 20/12, aimed at the interaction between MERCOSUR bodies and the academic community of States Parties.

The above-mentioned internships can be carried out by university students who are nationals of States Parties, in bodies within the MERCOSUR institutional structure having a budget and operating within the framework of a Head Office Agreement.

The goal of the internship is to help and collaborate with the tasks carried out by the body. The requirements to have access to an internship are the following:

a. To be a national of one of the States Parties; b. To be over 18 years; c. To study an undergraduate or graduate course in a university of a State Party, acknowledged by the respective Ministry of Education, and whose academic authorities have signed an agreement with the body in question, pursuant to GMC Resolution Nยบ 11/11, and its amended or supplementary rules; d. To have operative knowledge of the two MERCOSUR official languages.

MERCOSUR: structures and agendas | 33

Author: MERCOSUR Secretariat Technical Advisory Sector Design: Lateral Dise単o www.lateral.com.uy

Montevideo, march 2016.

www.mercosur.int secretaria@mercosur.org.uy 1992 Dr. Luis Piera Street - 1st floor MERCOSUR Building C.P. 11200 Montevideo - Uruguay