Argentina Updates General Trade Agreement Implementation for Regional Partners

Argentina has issued supplementary notifications to adjust the implementation of its regional trade agreement, covering general product categories under both regulation and regulation

Compliance Analysis: Argentina’s Supplementary Notifications Under MERCOSUR Trade Agreement Adjustments

Argentina, as part of the MERCOSUR bloc (Argentina, Brazil, Paraguay, and Uruguay), has issued supplementary notifications to modify the implementation of its regional trade agreement (RTA) under TM80 (Transparency Mechanism for Regional Trade Agreements). These adjustments specifically target tariff rate reductions for select product categories under supply considerations, as outlined in Additional Protocol No. 190 to Partial Scope Economic Complementarity Agreement No. 18 (AAP.CE 18.190). The changes are governed by MERCOSUR Trade Commission Directives No. 33/24 and No. 34/24, incorporated via Appendices 84 and 85 to AAP.CE 18.190.

Key Adjustments to Tariff Measures

The notifications introduce temporary reduced tariff rates for two product subheadings, applicable exclusively to Argentina under quota-based supply conditions. The adjustments are effective for 365 days from the date of entry into force (26 May 2024).

Regulatory Context and Implementation

1. Legal Basis:
   • The adjustments are made pursuant to Articles 7 and 8 of TM80^{2, 1}, which govern modifications to RTAs under the WTO Transparency Mechanism (WT/L/671, Paragraph 14)^{2, 1}.
   • The original RTA (TM80) was notified to the WTO under document references L/5342, WT/COMTD/RTA15/N/1, and WT/COMTD/RTA15/N/1/Add.18^{2, 1}.

1. Scope:
   • The changes exclusively affect goods (not services)^{2, 1}.
   • The reduced tariffs are temporary and tied to supply-side considerations, as defined in MERCOSUR Trade Commission Directives No. 33/24 and No. 34/24^{2, 1}.

1. Entry into Force:
   • Both appendices were adopted on 14 March 2024 and entered into force on 26 May 2024^{2, 1}.
   • The 365-day period for the tariff reductions commenced on the latter date.

1. Official Documentation:
   • Full texts of the directives and appendices are available via the Latin American Integration Association (ALADI):
   • Appendix 84 (Directive No. 33/24):²(https://www2.aladi.org/nsfaladi/textacdos.nsf/4d5c18e55622e1040325749000756112/53b7b920fbd1339f03258ae8005b8608?OpenDocument)¹.
   • Appendix 85 (Directive No. 34/24):²(https://www2.aladi.org/nsfaladi/textacdos.nsf/4d5c18e55622e1040325749000756112/781a7359697eb49203258b1f0052b02b?OpenDocument)².

Compliance Obligations for Stakeholders

1. Importers:
   • Must adhere to the quota limits (2,059 tonnes for 1702.90.00; 480 tonnes for 1210.20.10)^{2, 1}.
   • Tariff reductions are not automatic; importers must verify eligibility under the supply conditions specified in the directives^{2, 1}.
   • Documentation must align with MERCOSUR’s rules of origin to qualify for preferential rates.

1. Customs Authorities:
   • Argentina’s Federal Administration of Public Revenue (AFIP) is responsible for enforcing the quota and tariff measures^{2, 1}.
   • Monitoring of quota utilization is required to prevent over-allocation.

1. Exporters from MERCOSUR Partners:
   • No additional obligations beyond standard MERCOSUR trade rules, but exporters should confirm compliance with AAP.CE 18.190 requirements^{2, 1}.

Summary Answer

Argentina’s supplementary notifications under AAP.CE 18.190 Appendices 84 and 85 introduce temporary 2% tariff reductions for two product subheadings—1702.90.00 (unspecified sugars) and 1210.20.10 (hops)—subject to quota limits of 2,059 tonnes and 480 tonnes, respectively, for a 365-day period starting 26 May 2024^{2, 1}. These adjustments are governed by MERCOSUR Trade Commission Directives No. 33/24 and No. 34/24, incorporated into the Partial Scope Economic Complementarity Agreement No. 18 (AAP.CE 18.190) under Articles 7 and 8 of TM80^{2, 1}. Importers must comply with quota restrictions and supply conditions, while Argentina’s customs authorities (AFIP) enforce the measures^{2, 1}. For full legal texts, refer to the ALADI links provided^{2, 1}.

Sources

1. ↩ Committee on Trade and Development – Notification of changes affecting the implementation of a regional trade agreement – Argentina, Brazil, Paraguay and Uruguay – Supplement — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=Q:/WT/COMTD/RTA15N1A18S216.pdf&Open=True
2. ↩ Committee on Trade and Development – Notification of changes affecting the implementation of a regional trade agreement – Argentina, Brazil, Paraguay and Uruguay – Supplement — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=Q:/WT/COMTD/RTA15N1A18S217.pdf&Open=True