Mercosur countries sign digital trade agreement

By Wellton Maximo and Pedro Rafael Vilela

Mercosur countries signed an e-commerce agreement facilitating digital transactions and prohibiting the erection of barriers in this segment. According to a statement from Brazil’s Ministry of Economy and Foreign Affairs, the document deepens regional integration by regulating an increasingly relevant issue in global trade.

The deal represents a shared legal milestone to prevent the creation of potential barriers to e-commerce between the four members of the bloc – Brazil, Argentina, Uruguay and Paraguay. Agreed issues include banning tariffs on downloads, streaming and in-store purchases that do not comply with World Trade Organization rules.

According to the agreement, Mercosur countries cannot require digital service companies to install servers on national territory. For example, a platform operated in Brazil does not need to install a server in Argentina to serve consumers in neighboring countries. Only financial institutions have to comply with this requirement, in line with the central banks of Mercosur members.

Other points of the pact include accepting digital signatures in Mercosur countries, aligning national online consumer protection standards with block rules, and adopting and maintaining laws to protect personal data and fight spam.

steps

In the joint statement, the ministry also announced that the agreement is based on the most progressive recommendations from international fora such as the G20 and the Organization for Economic Co-operation and Development (OECD). The regional agreement, the note said, helps establish international rules for e-commerce within the WHO.

Biennially since 1998, WHO countries have renewed their commitment not to impose tariffs on e-commerce, establishing itself as a tool to protect the segment locally in the absence of a global agreement. The signed text is said to be similar to the trade deal struck with Chile in 2018.

The Mercosur agreement on e-commerce was signed on April 29 and also presented by the Brazilian government last week. “The deal reaffirms Mercosur’s commitment to commercial integration and strengthening the competitiveness of its economies,” the statement said.

Another deal

Also on Thursday, President Jair Bolsonaro presented to Congress the text of the Mercosur Border Sites Agreement, signed during the 55th Summit of Mercosur Heads of State in 2019.

The agreement aims to provide the legal basis in international law for Mercosur governments to guarantee citizens of such areas the right to obtain a neighborhood transit document, facilitating movement between countries and granting benefits for study, work, health care and the Trade for a living grants goods.

Holders of this document are allowed to study and work on both sides of the border. You also have the right to move at border stations via an exclusive or priority channel if it is available. The right to healthcare in such areas may be mutual and complementary.

The agreement also addresses issues of cooperation between public institutions in these regions in the areas of epidemiological surveillance, public security, combating transnational crime, civil protection, teacher training, human rights, preservation of cultural heritage, mobility for artists and the circulation of cultural assets and measures against the illicit trade in such goods.

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