CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Mercosur Agrees Customs Code

Mercosur Agrees Customs Code

by Mike Godfrey, Tax-News.com, Washington

05 August 2010


After six years of difficult negotiations, the Mercosur trade bloc has reached agreement on a common customs code which is to be phased in by 2012.

Mercosur members Brazil, Argentina, Uruguay and Paraguay met in San Juan, Argentina under the chairmanship of Argentina’s president, Cristina Fernandez, to thrash out an agreement on the redistribution of customs revenue between the countries. Also present were representatives from associate Mercosur countries Bolivia, Chile, Colombia, Ecuador, Peru and Venezuela.

Under the current rules, the common external tariff (AEC) is imposed on goods produced outside Mercosur at each border crossing, but the elimination of double impositions of tariffs was stymied by failure to agree a system of redistribution of the tariff proceeds.

Agreement was made possible with a formula for compensating land-locked Paraguay with a share of other countries' tariff proceeds, as its own revenue would be drastically reduced.

“These are the basic steps needed to promote free intra-zone trade and perfect the customs union,” Argentine Foreign Minister Hector Timerman said.

Venezuela also moved closer towards full membership of Mercosur, but approval of the Congress in Paraguay is still needed. The chairmanship of Mercosur now moves to Brazil, which will host a meeting next December in Foz do Iguazu, a city close to the borders with Argentina and Paraguay.

TAGS: free trade agreement (FTA) | Chile | Paraguay | Uruguay | Venezuela | tariffs | Colombia | Ecuador | Bolivia | Brazil | Peru | import duty | trade | Argentina

To see today's news, click here.

 
















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »