sábado, 23 de agosto de 2014

Structure of Headquarter Mercosur and International Jurisdiction

Caracas, 19/08/2014.- Mercosur Bloc. comprises a population over (270 million people) accompanied with a Gross Domestic Product (GDP) - of the full-member nations, in excess of (US$3.0 trillion) per year, (Purchasing power parity, PPP) according to the numbers from International Monetary Fund (IMF), “becoming the  fifth-largest economy in the World and the fourth-largest trading bloc. after the European Union”.

Some South Americans nation believe that Mercosur is giving the capability to combine the resources to balance the activities to another global economic powers, especially on the North American Free Trade Agreement (NAFTA), the European Union and recently with the BRIC’s Group.

Ver Video: Structure of Headquarter Mercosur and International Jurisdiction: http://youtu.be/ZK7cQ-KWh8k 

Structure of Headquarter Mercosur is composed by:

  • Common Market Council.
  • Common Market Group.
  • Administrative and Socioeconomic.
  • Working Subgroup.
  • Join Parliamentary Committee.
  • Trade Commission.
  • International Jurisdiction Over Contractual Matters:
  • a)   Choice of Jurisdiction.
  • b)   Agreement of Choice.
  • c)   Subsidiary Jurisdiction.
  • d)   Counterclaims.
  • Educational Integration and Regional Technical Commission.
  • Free Trade Zones:
  • 1)   Tariffs.
  • 2)   Safeguards.
  • 3)   Incentives.
  • 4)   Creation.
  • 5)   Manaus and Tierra del Fuego FTZs.
  • Reciprocal Promotion and Protection:
  • a)   Investors.
  • b)   Investments.
  • c)   Freedom to invest.
  • d)   Tax Issues.
  • e)   Exceptions.
  • f)    Expropriation and compensation.
  • g)  Transfers.
  • Role and Potential. 
  • FTA with Third Parties.
  • Member: 
  • 1)   Full Members: Argentina, Brazil, Paraguay, Uruguay y Venezuela
  • 2)   Associate Members: Bolivia (in process as a full member), Chile,
  •        Colombia, Ecuador, Guyana, Perú and Suriname.
  • 3)   Observes: Mexico and New Zealand.

The following topics that I'll refer are clearly established within the integration structure of Mercosur as: Work SubGroup, Joint Parliamentary Committee and Trade Commission; furthermore, as a lawyer I'll develop the International Jurisdiction over Contractual Matters; Beatriz Ordaz Gamboa, mentioned.

Ver Video: Freelance Lawyer, Beatriz Ordaz is supporting a lecture 
 "Mercosur legal ...: http://youtu.be/O7H7pJpJwQY  via @YouTube


  • Working Subgroup
Directly subordinate to the Common Market Group, the Work Subgroups that lift up in minutes the decisions to be submitted to the consideration of the Council, and conduct their studies on specific Mercosur concerns. Currently, the Work Subgroups are the following: Commercial Matters; Customs Matters; Technical Standards; Tax and Monetary Policies Relating to Trade; LandTransport; Sea Transport; Industrial and Technology Policies; Agricultural Policy, Energy Policy; in addition, the Coordination of Macroeconomic Policies relevant to the: Labor, Employment and the Matters at the Social Security .

Meetings:  the meetings of the Work subgroups will be held quarterly and will be alternated in alphabetical order - every member state or at the Common Market Group Administrative Office. Activities will be carried out by the Work Subgroups in two stages: preliminary and conclusive. In the preparatory stage, the members of the Work Subgroups may request the participation of representatives from "the private sector - of each member state”.

The stage on the decision-making:  is reserved exclusively to the official representatives of the member states. The delegations of representatives from the private sector in the preparatory stage of the Work Subgroup activities will have a maximum of three representatives - for each member state and they will directly involve at any of the stages of the: production, distribution or on the consumption process for the products that fall within the scope of the subgroups activities.

  • Joint Parliamentary Committee
The Committee will have both: an advisor concerning to the nature on decision-making; with powers to submit proposals as well. It will be competent, inter alia, to: follow up on the integration process and keep the respective Congresses informed; Take the necessary steps for the future instatement of Mercosur Parliament; Organize subcommittees to examine matters relating to the integration process; Submit its recommendations to the Common Market Council and Group as to how the integration process should be conducted and Southern Common Market conformed; to make the adjustments necessary to harmonize the laws of the different member states and submit them to their Congresses respectively.

Off course, establish relationships with private entities in each of the member states, as well as inside the agencies and bureaus international so as to obtain information and specialized assistance with the matters of interest: Establish relationships targeting cooperation with Congresses of the nonmember nations and entities that are involved at regional level in the integration schemes; Subscribe to cooperation and technical assistance accords with public and/or private entities whether domestic, supranational or international. 

The Committee will be composed of a maximum of 64 acting as parliamentary members, 16 per member state, and an equal number of alternates, appointed by the Congress to which they do pertain, and with a term of office - of at least two years. The meetings shall be conducted by five Presidents as a directors' board (one for each member state). The Committee will ordinarily meet twice a year, and extraordinarily whenever summoned by any of its five Presidents and the meeting is to be held in the territory of each member state on a successive and alternating basis.

Meetings of the Joint Parliamentary Committee will be only valid with the attending by parliamentary delegations from all member states. The decisions will be made by the Joint Parliamentary Committee on the majority's consensus vote of the members accredited by the respective Congresses of each member state. Spanish and Portuguese  are the official languages of the Joint Parliamentary Committee.


  • Trade Commission  
The Trade Commission will assist the Mercosur executive body, always striving to apply the instruments of common tradepolicy agreed to by the member states for operation of the customs unification. Additionally, the commission should also follow up on the development of issues and matters related to common trade policies, the intra-Mercosur trade as well as the trade with other countries.  The commission will have five actual members and four alternates from each member nation indicated by their own members.

The Trade Commission shall exert every effort to apply the common trade policy instruments such as: Tradeagreements  with other countries or international entities international entities; Administrative/commercial product lists; Final adaptation system for Mercosur customs unification; Origin system; Free-trade zone system, Special customs areas and export processing zones; System to discourage unfair trade practices; Elimination and harmonization of tariff restrictions; Safeguard's systems - to the Non member countries; Customs coordination and harmonization; Consumer protection Consumer protection systems; and Export incentive harmonization.

Furthermore, the trade commission should speak out regarding the issues raised by the member states regarding application and compliance with common offshore tariffs and other common trade policy instruments. The commission shall meet at least once a month, as well as whenever the Mercosur executiveagency asks for a meeting or by any member state.

The commission can take decisions entailing administration and application of trade policies adopted under Southern Common Market, whenever necessary submit proposals to the executive body regarding regulation of the areas under its authority; additionally, it can propose new guidelines or modify those in existence in Mercosur trade and customs matters. In this respect, the trade commission can propose a change the import duty over specific articles related to the common external tariffs, including cases referring to development the new production activities on Mercosur.

In order to better achieve its objectives, the trade commission can create technical committees targeting direction and supervision of the works it engages in. It can also adopt internal operating regulations. Proposals and decisions of the trade commission will be taken by a consensus of the representatives indicated by each member nation. Any disputes ensuing from the application, interpretation or compliance with the acts issued by the trade commission have to be referred to the Mercosur executive body, and should be resolved using the directives set forth in the Dispute Resolution System adopted under Southern Common Market.


  • International Jurisdiction over Contractual Matters 
The rules related to the litigation jurisdiction over contractual matters will apply to disputes arising from civil or commercial internationalcontracts between private-law legal entities or individuals provided that: They have to be domiciled or headquartered in the different member states: At least one of the parties to the contract is domiciled or headquartered in any member state; additionally, having made a choice of jurisdiction in favor of a court - inside one of the member states. In this case, there must be a reasonable connection between the jurisdiction chosen and the controversy.

The scope of the application from the internationaljurisdiction guidelines over contractual matters excludes the following: legal relationships between bankrupt entities/individuals and their creditors and any other analogous proceedings (the composition especially on the concordatas between creditors); matters under agreements involving family and succession law; social security; administrative contracts; employment contracts; consumer sales contracts; transport contracts; insurance policies; and rights in rem.
  • a)  Choice of Jurisdiction: Courts in member nations to whose jurisdiction the contracted parties have agreed to submit the matter in writing will have jurisdiction to settle controversies stemming from the both civil and commercial international contracts. 
  • b)  Agreement of Choice: The jurisdiction can be agreed on at the time the contract is signed, during the life of the contract, or even when the dispute actually arises. The validity and effects of the choice of venue will be governed by the law of the member nations that normally have jurisdiction to hear the case, always resorting to the law most favorable to the validity of the contract.
Whether or not jurisdiction is chosen, such jurisdiction will be prorogated in favor of the courts of the member state where the proceedings are in fact filed, provided the respondent voluntarily allows this in an affirmative and unfeigned way. 
  • c)  Subsidiary Jurisdiction: Should the contracted parties not reach an agreement regarding the courts competent to settle disputes, the member state chosen by the plaintiff on the case in point will have jurisdiction: The court of the place where the contract is to be performed; or The court of the domicile of the respondent; or The court of the domicile or headquarters of the claimant when the latter can show that it has done its part. 
For purposes of item (i) above the place of performance of the contract will be the member state where the obligations on which the claim is based have been or should be performed, taking into consideration the following: For contracts involving certain specific items, where they were placed at the time of contract signing; For contracts involving specific items according to their type, the place of domicile of the debtor at the time of contract signing; For contracts involving fungible items, the place of domicile of the debtor at the time that was held the contract; and the contract - on rendering service:
  • If in regard to items, the place where they were at the time of contract signing; 
  • If effectiveness is related to some special place, where they were to produce effects; 
  • In all other cases, the place of domicile of the debtor at the time of contract signing.
Ver Video: Freelance Lawyer, Beatriz Ordaz is talking "Subsidiary  
Jurisdiction and ...: http://youtu.be/nyN-G8yM7CY  via @YouTube

The purposes of application of second item above for determination of the domicile of the respondent in a contractual dispute involving individuals, the following studies will be taken into consideration like: The habitual residence: On a subsidiary basis, the central place of business; and In the absence of any such considerations, the place where is found, meaning the actual residence. When dealing with a legal entity, the determination of the domicile will be based on the administration where the headquarters have been set up. The claims plaintiffs could be, as an alternative file in any of the places where the legal entity has branches, establishments, agencies or any other type of representation.

Legal entities headquartered in any member state that have concluded contracts with any other member state can be sued in the courts of this latter state should there be some dispute as to the construction and implementation of the obligations regulated by the contract. In the event there is a codefendant, needs of the legal Marco on the contractual matters that could be adjudicated with the courts of jurisdiction in the territory of the domicile of any of the parties to the litigation. Additionally, any claims entailing of personal collateral rights or intervention of nonmember states and the in contractual obligations can be filed with the court hearing the main proceeding.  
  • d)  Counterclaims: In the event of there being a counterclaim that is based in some act or fact that has served as the basis for the main proceeding of the courts hearing the main proceeding "will have the competent to hear any counterclaims that may arise".
Conclusion: Mercosur is an Economic Parliament that aims to strengthen the last strategic policies established and submitted as a new multipolar order, according at new framework on the Latin-American Union. This new juridical skeleton of Mercosur offers greater efficiency, effectiveness and flexibility.

Furthermore these widely laws have been adopted after conducting exhaustive technical studies on the proficient economics analysis to harmonize deeply with the statistic of the market, merchandise trade, taxes, tariff, etc. between Common Market Group of Latin American, Business Communities and others Economics Blocs. operated and controlled by the latest smart tools of science and technology, freelance Lawyer; Beatriz Ordaz Gamboa, cited.



كتلة ميركوسور. ويضم عدد سكانها أكثر من (270 مليون نسمة) ترافق مع الناتج المحلي الإجمالي (GDP) - للأمم كامل أعضاء، ما يزيد على (3.0 تريليون دولار أمريكي) في السنة، (تعادل القوة الشرائية، PPP) وفقا لأرقام من الدولي صندوق النقد الدولي "، لتصبح خامس أكبر اقتصاد في العالم وكتلة تجارية رابع أكبر. بعد الاتحاد الأوروبي ".


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