Implementation of the Olivos Protocol for the Resolution of Controversies in the Mercosur

In the # 11 and # 22 editions of Marval News we informed of the ratification by Uruguay, Paraguay and Argentina of the Olivos Protocol for the Solution of Controversies in the Mercosur, signed by the Governments of Uruguay, Paraguay, Brazil and Argentina on February 18, 2002 (“the Protocol”).

On February 10, 2004 Decree No. 4982, which ratifies the Protocol, was published in the Brazilian Official Gazette.

Once the 30-day period counted as of the date of deposit of the ratification instrument has occurred, the implementation of the Protocol will regulate any controversies that may arise between member states regarding the interpretation of, application of or non-compliance with the Treaty of Asunción, the Ouro Preto Protocol, the protocols and agreements entered into under the umbrella of the Treaty of Asunción, the Decisions of the Common Market Council, the Resolutions of the Common Market Group and the Directives of the Mercosur Trade Commission.

The Protocol creates the Mercosur Permanent Tribunal for Revision, competent to evaluate decisions issued by ad hoc arbitral tribunals instituted by the Brasilia Protocol. The decisions passed by the Tribunal shall be enforceable against the member states. As so, it will accelerate the implementation of the legal instruments and contribute to the institutional strength of the Mercosur economic group, as it will perfect the mechanisms for resolution of controversies instituted by the Protocol of Brasilia for the Resolution of Controversies, signed on December 17, 1991.

As of its entry into force, the Protocol will revoke the Brasilia Protocol and its respective Regulation, CMC Decision No 17/98, which is applied to the resolution of controversies among member states. Nevertheless, while the controversies already raised under the Brasilia Protocol are not fully settled, and until the procedures for the appointment of arbitrators and experts provided for in the Protocol have been completed, the Brasilia Protocol and its Regulations will continue to be applied when appropriate.