Protocol of Olivos FOR DISPUTE SETTLEMENT IN

The Republic , the Federative Republic of , the Republic of and the Eastern Republic of , hereinafter "States Parties";

HAVING REGARD to the Treaty of Asuncion, the Protocol of Brasilia and the Protocol of Ouro Preto;

RECOGNIZING that the evolution of the integration process in Mercosur requires the improvement of the system solution of disputes;

CONSIDERING the need to ensure the correct interpretation, implementation and enforcement of the fundamental tools of the integration process and the set of rules of Mercosur, in a consistent and systematic manner;

CONVINCED the desirability of making specific changes in the settlement of disputes in order to consolidate the system legal certainty within Mercosur;

HAVE AGREED as follows:

CHAPTER I DISPUTES BETWEEN STATES PARTIES Article 1 Scope 1. Disputes arising between States Parties concerning the interpretation, application or non- compliance with the Treaty of Asunción, the Ouro Preto, protocols and agreements Protocol within the framework of the Treaty of Asunción, the Decisions of the Common Market Council, the Resolution of Market Group and the Joint Guidelines Committee of Commerce of Mercosur will be subject to the procedures set out in this Protocol. 2. Disputes within the scope of application of this Protocol that may also be subject to the dispute settlement system of the World Organization of Trade or other preferential trading schemes that are part of the individual member states of MERCOSUR may be subject to one or other jurisdiction, the choice of the complainant. Notwithstanding the foregoing, the parties to the dispute may, by mutual agreement, set the forum.

Once initiated proceedings for settlement of disputes in accordance with the preceding paragraph, neither party may have recourse to dispute settlement mechanisms established in other forums regarding the same object, defined in accordance with Article 14 of this Protocol.

Nevertheless, within the framework of established this numeral, the Council of the Common Market shall regulate matters concerning the choice of forum. CHAPTER II MECHANISMS FOR TECHNICAL ASPECTS Article 2 Establishment of mechanisms 1. 1.When deemed necessary, expedient mechanisms could be established to resolve disputes between States Parties on technical aspects in regulated instruments of trade policycommon. 2. The rules of operation, the scope and nature of these mechanisms statements to be issued on the same will be defined and approved by Council Decision of Market Common.

CHAPTER III COMMENTS ADVISORY Article 3 Regime request The Common Market Council may establish mechanisms for request advisory opinions of the Permanent Review Tribunal defining their scope and procedures.

CHAPTER IV DIRECT NEGOTIATIONS Article 4 Negotiations States parties to a dispute attempt to resolve it, first of all, through direct negotiations.

Article 5 Procedure and deadline 1. Direct negotiations shall not, unless otherwise agreed between the parties to the dispute, exceeds a period of fifteen (15) days from the date on which one of them informed the decision to start another controversy. 2. The States parties to a dispute inform the Common Market Group, through the Mercosur Administrative Secretariat, about the actions that are undertaken during the negotiations and their results.

CHAPTER V INTERVENTION GROUP COMMON MARKET Article 6 Optional procedure before the GMC 1. Whether through direct negotiations do not reach an agreement or if the dispute is resolved only partially, any of the States parties to the dispute may directly initiate the arbitration procedure provided for in Chapter VI. 2. Without prejudice to the preceding paragraph, the States parties to the dispute may, by mutual agreement , submit it to the Common Market Group. i. In this case, the Common Market Group will assess the situation, giving opportunity to the parties to the dispute to present their respective positions, requiring, when necessary the advice of experts selected from the list referred to in Article 43 of this Protocol. ii. Expenses relating to such advice shall be borne in equal amounts by States parties to the dispute or in the proportion determined by the Common Market Group.

3. The dispute may also be brought to the Common Market Group is another state that is not party to the dispute, justifiably ask such a procedure at the end of direct negotiations.In this case, the arbitration proceedings initiated by the State Applicant will not be interrupted, unless otherwise agreed by the States Parties to the dispute.

Article 7 Assignments GMC 1. If the dispute is submitted to the Common Market Group by States parties to the dispute, this issue recommendations that, if possible, should be specific and detailed, aiming at solving the dispute. 2. If the dispute is brought to the Common Market Group at the request of a State which is not part of it, the Common Market Group may provide comments or recommendations.

Article 8 Deadline for intervention and pronouncement of the GMC The procedure described in this Chapter shall extend for a period exceeding thirty (30) days from the date of the meeting at which the dispute was submitted to the Common Market Group.

CHAPTER VI ARBITRATION PROCEDURE AD HOC Article 9 Top of arbitration stage 1. Where it has not been possible to resolve the dispute by applying the procedures referred to in Chapters IV and V, any State Party to the dispute may notify the Administrative Secretariat of Mercosur its decision to resort to the arbitration procedure established in this Chapter. 2. The Mercosur Administrative Secretariat shall, immediately, communicating to each other or to other states involved in the dispute and the Common Market Group. 3. The Mercosur Administrative Secretariat will handle the administrative steps that may be required for the operation of the procedures. Article 10 Composition of the Ad Hoc Arbitration Court 1. The arbitration procedure will be tried before an ad hoc tribunal composed of three (3) arbitrators. 2. The arbitrators shall be appointed as follows: i. Each State party to the dispute shall appoint one (1) head arbitrator from the list provided for in Article 11.1, within fifteen (15) days from the date on which the Mercosur Administrative Secretariat has communicated to the States Parties to the dispute one decision to resort to arbitration. Simultaneously appoint the same list, one (1) alternate to replace the head referee in case of disability or excuse this at any stage of the arbitration proceedings arbitrator. ii. If any State party to the dispute does not appoint their arbitrator within the time specified in item 2 (i), they will be chosen by lot by the Mercosur Administrative Secretariat for a period of two (2) days from the expiration of that term among the referees that State from the list provided for in Article 11.1.

3. The President arbitrator shall be appointed as follows: i. The States parties to the dispute shall appoint by common agreement the third arbitrator, who shall chair the Ad Hoc Arbitration Court, the list provided for in Article 11.2 (iii) for a period of fifteen (15) days from the date in the Mercosur Administrative Secretariat has notified the States parties to the dispute to the decision of one of them to resort to arbitration. Simultaneously, the same list designate an alternate to replace the head referee in case of disability or excuse this at any stage of the arbitration proceedings arbitrator. The President and his deputy may not be nationals of the States parties to the dispute. ii. If there is no agreement between States Parties to the dispute shall choose the third arbitrator within the time allowed, the Mercosur Administrative Secretariat at the request of any of them, proceed to designate by lot from the list of Article 11.2 (iii), even excluding the nationals of States parties to the dispute. iii. The appointed arbitrators to act as third parties should respond within a maximum of three (3) days of notification of his appointment, on his acceptance to act in a controversy. 4. The Mercosur Administrative Secretariat shall notify the arbitrators of their appointment.

Article 11 Lists of arbitrators 1. Each State Party shall designate twelve (12) arbitrators, who will join a list that will be recorded in the Mercosur Administrative Secretariat. The appointment of the arbitrators, together with detailed curriculum vitae of each of them, shall be notified simultaneously to the other States Parties and the Mercosur Administrative Secretariat. i. Each State Party may request clarification of the persons designated by other States Parties for the list referred to in the previous paragraph, within thirty (30) days from such notification. ii. The Mercosur Administrative Secretariat shall notify the States Parties to the consolidated list of arbitrators of Mercosur and its subsequent amendments. 2. Each State Party shall, in addition, four (4) candidates to join the list of third umpires. At least one of the arbitrators appointed by each State Party to this list will not be a national of any of the States Parties of MERCOSUR. i. The list shall be notified to the other States Parties, through the Chair Pro Tempore, accompanied by the curriculum vitae of each proposed candidate. ii. Each State Party may request clarification of persons proposed by the other States Parties or submit justified objections to nominees, according to criteria established in Article 35, within thirty (30) days of notification of such proposals.Objections must be communicated through the Chair Pro Tempore proponent to the State Party. If, within a period not exceeding thirty (30) days of notification of failure to reach a solution, we consider the objection. iii. The consolidated third-party arbitrators list and subsequent amendments, together with a curriculum vitae of the arbitrators, shall be communicated by the President Pro Tempore of the Administrative Secretariat of Mercosur, the record and notify the State Parties.

Article 12 Representatives and advisors The States parties to the dispute shall appoint their representatives before the Arbitral Tribunal Ad Hoc and may also appoint counsel for the defense of their rights.

Article 13 Unified representation If two or more States Parties hold the same position in the dispute, can unify their representation before the tribunal and appoint an arbitrator by mutual agreement within the period specified in Article 10.2 (i).

Article 14 Object of controversy 1. The object of disputes will be determined by the texts of presentation and response presented before the Ad Hoc Arbitration Court and can not be expanded later. 2. The allegations that the parties submit the texts mentioned in the preceding paragraph shall be based on issues that were considered in the previous steps, contemplated by this Protocol and the Annex to the Protocol of Ouro Preto. 3. The States parties to the dispute shall inform the Ad Hoc Arbitration Court, the texts mentioned in item 1 of this article, about instances complied with prior to the arbitral proceedings and make a pleas of fact and law in their respective positions.

Article 15 Interim measures 1. The Ad Hoc Arbitral Tribunal may, at the request of the interested party, and to the extent that there founded suspicions that maintaining the situation may cause severe and irreparable damage to one of the parties to the dispute damages, dictate the interim measures it deems appropriate to prevent such damage. 2. The Court may, at any time, to void such measures. 3. If the report is appealed to revise the provisional measures which have not been left without effect before the issuance thereof shall continue until the treatment of the theme at the first meeting of the Permanent Review Tribunal, which should resolve on its continuation or termination.

Article 16 Arbitral award The Ad Hoc Arbitration Court issue an award within sixty (60) days, renewable by the Court for a period of thirty (30) days from the communication made by the Mercosur Administrative Secretariat on the parties and the other arbitrators informing the acceptance by the referee President of their appointment.

CHAPTER VII PROCEDURE REVIEW Article 17 Feature Review 1. Any party to the dispute may present a motion for review of the decision of the Arbitration Court Ad Hoc Permanent aoTribunal Review, within a period not exceeding fifteen (15) days from the notification. 2. The appeal is limited to issues of law covered in controversy and legal interpretations developed in the report of the Ad Hoc Arbitration Court. 3. The reports of the Ad Hoc Tribunals issued on the basis of ex aequo et bono principles shall not be susceptible of application for review. 4. The Mercosur Administrative Secretariat will be in charge of administrative steps that may be ordered for the processing procedures and will keep the States parties to the dispute and the Common Market Group.

Article 18 Composition of the Permanent Review Tribunal 1. The Permanent Review Tribunal shall consist of five (5) arbitrators. 2. Each State Party Mercosur appoint one (1) arbitrator and his deputy for a period of two (2) years, renewable for a maximum of two consecutive terms. 3. The fifth arbitrator, who shall be appointed for a period of non- renewable three (3) years, unless otherwise agreed by the States Parties, will be chosen by unanimous vote of the States Parties, the list referred to in this numeral, at least three (3) months before the expiration of the term of the fifth arbitrator year. The arbitrator shall have the nationality of any of the States Parties of MERCOSUR, without prejudice to item 4 of this Article. There is no unanimity, the appointment will be made by lot who will make the Mercosur Administrative Secretariat among the members of this list, within two (2) days following the expiration of that period days. The list for the description of the fifth arbitrator will conform with eight (8) members. Each State Party shall propose two (2) members who shall be nationals of Mercosur countries. 4. States Parties shall, by mutual agreement, may establish other criteria for designation of the fifth arbitrator. 5. At least three (3) months before the expiration of the mandate of the arbitrators, States Parties should be manifested regarding your renewal or propose new candidates. 6. If expire the mandate of an arbitrator who is acting in a controversy, it shall remain in office until their completion. 7. Applies, as appropriate, the procedures described in this article Article 11.2.

Article 19 Permanent availability Members of the Permanent Review Tribunal since accepting his appointment, shall be permanently available to act when called upon.

Article 20 Operation of the Court 1. Where the dispute involves two States Parties, the Tribunal shall comprise three (3) arbitrators. Two (2) arbitrators shall be nationals of each State party to the dispute and the third, which holds the Presidency, will be assigned by lottery to be conducted by the Director of the Mercosur Administrative Secretariat, among other referees who are not nationals of the States parties to the dispute. The designation of the President shall be given in the following the filing of the application for review, the date from which the Court will be constituted for all purposes day. 2. Where the dispute involves more than two States Parties, the Permanent Review Tribunal shall consist of the five (5) arbitrators. 3. States Parties shall, by mutual agreement, may establish other criteria for the operation of the Tribunal established under this Article.

Article 21 Objection to application for review period for the report 1. The other party to the dispute shall be entitled to contest the appeal for review filed, within fifteen (15) days notice to the presentation of such an action. 2. The Permanent Review Court will pronounce itself on the appeal within a maximum of thirty (30) days from the submission of the defense that references the previous or the deadline for their submission numeral, as case. By decision of the Court, the thirty (30) days may be extended by fifteen (15) days. Article 22 Range Statement 1. The Permanent Review Tribunal may uphold, modify or reverse the legal reasoning and decisions of the Ad Hoc Arbitration Court. 2. The report of the Permanent Review Tribunal shall be final and shall override the report of the Ad Hoc Arbitration Court.

Article 23 Direct access to the Permanent Review Tribunal 1. The parties to the dispute, culminating with the procedure laid down in Articles 4 and 5 below Protocol, may expressly agree to submit directly and in a single instance the Permanent Review Tribunal, in which case it will have the same powers that an Ad Hoc Arbitration Court, applying up, as appropriate, Articles 9, 12, 13, 14, 15 and 16 of this Protocol. 2. Under these conditions, the reports of the Permanent Review Tribunal will be binding on States parties to the dispute from the receipt of such notification shall not be subject to review capabilities and will, with respect to the parties effect of res judicata.

Article 24 Exceptional measures and emergency The Common Market Council may establish special procedures to meet exceptional cases of urgency that may cause irreparable damage to the Parties.

CHAPTER VIII Arbitral Awards Article 25 Adoption of reports The reports of the Ad Hoc Arbitration Court and the Permanent Review Tribunal shall be adopted by majority vote, shall be substantiated and signed by the Chairman and other arbitrators. The referees can not give votes in dissent, and shall preserve the confidentiality of the vote. The resolutions also shall be confidential and will remain so at all times.

Article 26 Requirement of reports 1. The reports of the Ad Hoc Arbitration Courts are binding on States parties to the dispute from its notification and shall, in relation thereto, pursuant to res judicata if the elapsed time limit under Article 17.1 to appeal the review, this has not been brought. 2. The awards of the Permanent Review Court are unappealable, compulsory for States parties to the dispute from its notification and shall, in relation to them, force of res judicata.

Article 27 Obligation to comply with decisions The reports should be completed in the manner and to the extent to which they were issued. The adoption of compensatory measures under this Protocol does not absolve the State party of its obligation to enforce the award.

Article 28 Appeal for information 1. Any of the States parties to the dispute may request a clarification of the report of the Ad Hoc Arbitration Court or the Permanent Review Tribunal and on the way that should be adhered to the report, within fifteen (15) days subsequent to their notification. 2. The Court has its dispatch on the appeal within fifteen (15) days after the submission of such a request days and may grant additional time to the enforcement of the award period. Article 29 Term and type of compliance 1. The reports of the Ad Hoc Tribunal or the Permanent Review Tribunal, as appropriate, should be fulfilled within the respective courts establish. If a time limit is not established, the reports should be completed within the date of its notification thirty (30) days. 2. If a State party to bring an action for review, compliance with the decision of the Ad Hoc Arbitration Court shall be suspended during the processing of the same. 3. The state required to enforce the award party shall inform the other party to the dispute, as well as the Common Market Group, through the Mercosur Administrative Secretariat on measures to adopt to enforce the award, within fifteen (15) days counted from its notification.

Article 30 Disagreements over enforcement of the award 1. If the State received for the report considers that the measures taken do not give cumprimendo the same, may, within thirty (30) days from the adoption thereof, to bring the situation to the attention of the Ad Hoc Arbitration Court or the Permanent Court of Review, as appropriate. 2. The competent Court may, within thirty (30) days from the date you became aware of the situation to resolve the issues mentioned in the item above. 3. If it is not possible to convene the Ad Hoc Arbitration Court that met the case, another will be conformed to the required alternate or mentioned in Articles 10.2 and 10.3. CHAPTER IX COMPENSATORY MEASURES Article 31 Faculty applying compensatory measures 1. If a State party to the dispute fails to comply fully or partially the decision of the Arbitration Court, the other party to the dispute shall have the right, within one (1) year from the expiration next day referred to in Article 29.1 and whether recourse to the procedures of Article 30, to start the implementation of temporary compensatory measures such as the suspension of concessions or other similar obligations, in order to obtain compliance with the decision. 2. The report benefited from the State Party shall endeavor, first, to suspend equivalent concessions or obligations in the same sector or sectors affected. If deemed impractical or ineffective suspension in the same industry, may suspend concessions or obligations in other sectors, and shall indicate the reasons for that decision. 3. Compensatory measures to be taken should be formally informed by the State Party that apply, with a minimum of fifteen (15) days, the State party should enforce the award.

Article 32 Faculty question of compensatory measures 1. If the State Party report benefited by applying compensatory measures considered insufficient for the fulfillment of the same, but the State bound to enforce the award considers that the measures taken are satisfactory, the latter Party shall have a period of fifteen (15) days from of notification under Article 31.3, to bring this situation to the attention of the Ad Hoc Arbitration Court or the Permanent Review Tribunal, as appropriate, which shall have thirty (30) days from its constitution to rule on the matter . 2. If the State bound to enforce the award party considers excessive compensatory measures applied, may request, within fifteen (15) days after the application of these measures, the Ad Hoc Tribunal or the Permanent Review Tribunal, as appropriate, is made in respect , within a period not exceeding (thirty) 30 days, counted from its constitution. i. The Court shall decide whether, on the compensatory measures adopted. Evaluate, as appropriate, the reasons given for applying them in a different sector that affected, and their proportionality in relation to the derived consequences of non compliance with the award. ii. In examining the proportionality, the Court shall take into account, inter alia, the volume and / or value of trade in the affected sector, as well as any other loss or borne factor in determining the level or amount of the compensatory measures . 3. The State Party has implemented the measures should adjust them to the Court within a maximum of ten (10) days, unless the Court set another deadline.

CHAPTER X Provisions common to Chapters VI and VII Article 33 Jurisdiction of the courts States Parties declare recognize as compulsory ipso facto and without special agreement, the jurisdiction of the Courts Ad Hoc Arbitration in each case be constituted to hear and resolve disputes referred to in this Protocol as well as the jurisdiction of the Court Permanent Review to examine and resolve disputes in accordance with the powers conferred upon it by this Protocol.

Article 34 Applicable law 1. The Ad Hoc Arbitration Courts and the Permanent Review Tribunal shall decide the dispute according to the Asunción Treaty, the Ouro Preto Protocol, the protocols and agreements concluded within the framework of the Treaty of Asunción, the Decisions of the Common Market Council, resolutions of the Group Common Market and the Guidelines of the Committee on Commerce of Mercosur , as well as the principles and provisions of international law applicable to the matter. 2. This provision does not restrict the ability of Ad Hoc Arbitration Courts or the Permanent Review Tribunal, when acting as a direct and single instance pursuant to Article 23, to decide ex aequo et bono, if the parties so agree.

Article 35 Qualification of arbitrators 1. The referees of the Courts Ad Hoc Arbitration and the Permanent Court of Review shall be jurists of recognized competence in matters that may be the subject of controversy and be informed of all legislative Mercosur. 2. The arbitrators shall observe the necessary impartiality and operational independence of the Central Government or the States Parties directly and not have interests in any character in the controversy. Be designated due to its objectivity, reliability and sound judgment.

Article 36 Costs 1. The expenses and fees incurred by the activity of the arbitrators shall be borne by the country and assign the costs and fees of the Chairman of the Ad Hoc Arbitration Tribunal shall be borne equally by the States parties to the dispute, unless the Court decides to distribute them in proportion distinct. 2. The expenses and fees incurred by the activity of the referees of the Permanent Review Tribunal shall be borne equally by the States parties to the dispute, unless the Court decides to distribute them in different proportions. 3. Expenditures that relate to the preceding paragraphs may be paid through the Mercosur Administrative Secretariat. Payments may be made through a special fund that could be created by the States Parties to deposit the contributions related to the Mercosur Administrative Secretariat budget, according to Article 45 of the Protocol of Ouro Preto, or when you start the procedures in Chapters VI and VII of this Protocol. The Fund will be administered by the Mercosur Administrative Secretariat, which shall annually be accountable to States Parties on their use.

Article 37 Fees and other costs The fees, costs of transportation, lodging, per diem and other expenses of the arbitrators shall be determined by the Common Market Group.

Article 38 Headquarters The headquarters of the Permanent Arbitration Court of Revision will be the city of Asuncion. Nevertheless, for serious reasons, the Court may meet exceptionally in other cities of Mercosur. The Ad Hoc Arbitration Courts may meet in any city of the States Parties of MERCOSUR.

CHAPTER XI CLAIMS OF PRIVATE Article 39 Scope The procedure defined in this Chapter shall apply to claims made by private parties (individuals or corporations) by reason of the sanction or enforcement by any State Party in legal or administrative measures restrictive, discriminatory or unfair competition effect, in violation of the Treaty of Asunción, the Ouro Preto Protocol, protocols and agreements concluded within the framework of the Treaty of Asunción, the Decisions of the Common Market Council, the Resolutions of the Common Market Group and the Guidelines of the Mercosur Trade Commission.

Article 40 Home of proceedings 1. The affected private parties file their complaints with the National Section of the Common Market Group of the State Party where they have their habitual residence or place of business. 2. Individuals should provide evidence to determine the truth of the violation and the existence or threat of injury, so that the claim is accepted by the National Section and to be evaluated by the Common Market Group and the group of experts, if summoned. Article 41 Procedure 1. Unless the complaint relates to a matter that has led to the initiation of a procedure for Dispute in accordance with Chapters IV to VII of this Protocol, the National Section of the Common Market Group which accepted the complaint under Article 40 of the this Chapter shall hold consultations with the National Section of the Common Market Group of the State Party to which is attributed the violation, to seek, through consultation, an immediate solution to the issue raised. Such consultations will be completed by automatically and without further proceedings if the matter is not resolved within a period of fifteen (15) days from notice of the complaint to the State Party to which is attributed the violation, unless the parties agree to another term. 2. Finalized queries, without having reached a settlement, the National Section of the Common Market Group will raise the complaint without further proceeding to the Common Market Group.

Article 42 Intervention of the Common Market Group 1. Received the complaint, the Common Market Group will assess the requirements of Article 40.2, which was based on his admission by the National Section, the first meeting subsequent to its receipt. Conclude that they are not meeting the requirements to give you travel, reject the complaint without further proceeding and shall take decisions by consensus. 2. If the Common Market Group does not reject the claim, this admissible shall be deemed to be. In this case, the Common Market Group shall immediately convene a group of experts who shall give an opinion about its origin, non-extendable period of thirty (30) days from the designation. 3. In this period, the group of experts will provide an opportunity to the private complainant and the States involved in the complaint to be heard and to present their arguments in a joint hearing.

Article 43 Group of experts 1. The expert group which is referred to in Article 42.2 shall be composed of three (3) members appointed by the Common Market Group or, failing agreement on one or more experts, these will be chosen by a vote the States Parties will among the members of a list of twenty-four (24) specialists. The Mercosur Administrative Secretariat shall communicate to the Common Market Group the name of the expert or experts which received the most votes. In the latter case, and unless the Common Market Group decides otherwise, one (1) of the designated experts may not be a national of the State against which the complaint was made, not the state in which the private party filed a complaint under Article 40. 2. With the goal of establishing a list of experts, each State Party shall designate six (6) persons of recognized competence in matters which may be the subject of complaint. This list will be recorded in the Mercosur Administrative Secretariat. 3. The expenses arising from the performance of the group of experts will be funded in proportion as determined by the Common Market Group or, failing agreement, in equal amounts by the parties directly involved in the complaint.

Article 44 Opinion of the expert group 1. The experts will forward its opinion to the Common Market Group. i. If, in the unanimous opinion, to verify the validity of the complaint made against a State Party, any State Party may require you to take corrective measures or the annulment of the challenged measures. If the demand is not met within fifteen (15) days, the State Party that made may appeal directly to arbitration proceedings under the conditions laid down in Chapter VI of this Protocol. ii. Received an opinion that considers unfounded the complaint unanimously, the Common Market Group shall immediately completed by the same under this Chapter. iii. If the expert group did not reach unanimity to express an opinion, raise their differing conclusions to the Common Market Group to immediately give you a completed claim under this Chapter. 2. The conclusion of the claim by the Common Market Group, under subparagraphs (ii) and (iii) of the preceding paragraph, shall not prevent the claimant State Party to initiate the procedures provided for in Chapters IV-VI of this Protocol.

CHAPTER XII GENERAL PROVISIONS Article 45 Agreement or waiver At any stage of the proceedings, the party submitting the dispute or complaint may withdraw the same, or if the parties involved can reach an agreement is concluded by giving the controversy or claim, in both cases. Dropouts and arrangements should be communicated through the Mercosur Administrative Secretariat to the Common Market Group, or to the Court that matches, as appropriate.

Article 46 Confidentiality 1. All documents submitted under the procedures laid down in this Protocol are otherwise private to the parties to the dispute, except for arbitration awards. 2. The criteria of the National Section of the Common Market Group of each State Party and where it is necessary for the preparation of positions to be presented before the Court, these documents may be known solely to sectors with interest. 3. Notwithstanding the provisions in item 1, the Common Market Council shall regulate the mode of dissemination of texts and presentations relating to disputes already completed.

Article 47 Regulation The Common Market Council approve the rules of this Protocol within sixty (60) days from its entry into force.

Article 48 Deadlines 1. All time limits laid down in this Protocol are peremptory and be counted by calendar days from the day following the act or fact to which they refer day. Nevertheless, if the maturity of the deadline to submit a text or fulfill an investigation does not occur on a business day at the headquarters of the Mercosur Administrative Secretariat, the text display or performance of due diligence may be made on the first date immediately following such business day. 2. Notwithstanding the provisions of the preceding paragraph, all periods contained in this Protocol may be modified by agreement between the parties to the dispute. The deadlines for procedures tramitados before the Ad Hoc Arbitration Courts and before the Permanent Review Tribunal may be modified when the parties to the dispute request to the respective Court and this grant.

CHAPTER XIII TRANSITIONAL PROVISIONS Article 49 Initial notifications States Parties shall carry out the first assignments and notifications under Articles 11, 18 and 43.2 for a period of thirty (30) days from the entry into force of this Protocol.

Article 50 Controversies in progress Controversies in progress initiated in accordance with the scheme of the Brasilia Protocol continue to be governed exclusively by the same until full completion.

Article 51 Rules of procedure 1. The Permanent Review Tribunal shall adopt its own rules of procedure within thirty (30) days from its constitution, which must be approved by the Council of the Common Market. 2. The Ad Hoc Arbitration Courts shall adopt its own rules of procedure, taking as reference the Model Rules to be approved by the Common Market Council. 3. The rules discussed in the previous numerals this Article shall ensure that each party to the dispute has a full opportunity to be heard and to present its case and ensure that the processes are carried out expeditiously.

CHAPTER XIV FINAL PROVISIONS Article 52 Duration and deposit 1. This Protocol, an integral part of the Treaty of Asunción, enter into force on the thirtieth day after the date on which it was deposited fourth instrument of ratification. 2. The Republic of Paraguay shall be the depositary of this Protocol and the instruments of ratification and shall notify the other States Parties to the date of deposit thereof, duly authenticated copy by sending this Protocol to other States Parties.

Article 53 System Review Before culminating the convergence of the common external tariff, States Parties shall make a review of the current system of dispute resolution, with a view to the adoption of the Permanent System of Dispute Resolution for the Common Market referred numeral 3 of Annex III of the Treaty of Asuncion.

Article 54 Accession or ipso jure denunciation The accession to the Treaty of Asuncion mean ipso jure accession to this Protocol. Denunciation of this Protocol shall mean ipso jure denunciation of the Treaty of Asuncion.

Article 55 Derogation 1. This Protocol shall derogate from its entry into force, the Protocol of Brasilia for Dispute Resolution, adopted December 17, 1991 and Regulation of the Brasilia Protocol, approved by CMC Decision 17/98. 2. Nevertheless, while disputes initiated under the regime of the Brasilia Protocol are not fully completed and until they complete the procedures in Article 49, will continue to be applied, as appropriate, the Protocol of Brasilia and its Regulations. 3. References to the Brasilia Protocol contained in the Ouro Preto Protocol and its Annex are understood forwarded, as appropriate, to this Protocol.

Article 56 Languages The official languages in all proceedings under this Protocol Portuguese and Spanish. Done in the city of Olivos , Buenos Aires Province, Argentina, the eighteenth day of February two thousand and two, one original in Portuguese and Spanish languages, both texts being equally authentic.

THE ARGENTINA EDUARDO DUHALDE CARLOS Ruckauf THE FEDERAL REPUBLIC OF BRAZIL Fernando Henrique Cardoso Lafer THE REPUBLIC OF PARAGUAY LUIS GONZALEZ MACCHI JOSÉ ANTONIO MORENO Ruffinelli THE REPUBLIC EAST OF URUGUAY JORGE BATLLE IBAÑEZ DIDIER Opertti