WORKING SUB-GROUP No. 12 "INVESTMENT"


TAKING INTO ACCOUNT: the Assunção Treaty, the Ouro Preto Protocol, the Decisions No. 11/93 and 11/94 of the Common Market Council, the Resolutions No. 20/92 , 20/95 , 38/95 of the Common Market Group.

REGARDING: That the investment flow has acquired an important role in the international economic scenery these days;

That the creation of an extended economic environment requires the analysis of the politics bounded to investment;

That it is fundamental to avoid the existence of different handling which alter the competition conditions in the region and distort the investment flow coming from third parties;

That the location of investment inside MERCOSUL must promote a more efficient allocation of the regional resources, taking into account the situation of the zones or regions that are less developed;

That the establishment of favorable conditions to investment will stimulate the economic cooperation and the integration process;

That a greater legal security encourages the attraction of investment to the region;

That it is convenient to rely on a specific scope to coordinate the positions of the Member States regarding the negotiations on investment at the distinct international forum;

That it is necessary a greater coordination on the treatment of services and investment;

THE COMMON MARKET GROUP DECIDES:

Art. 1- To create the Working Sub-group No. 12 " Investment"

Art. 2 - The refereed Working Sub-group will have the following duties:

• To analyze the difficulties faced by the Member States for the approval and implementation of the Colônia Protocol and the Buenos Aires Protocol and recommend related course of actions;


• To analyze the influence of the Interregional Investment (IRI) and the Foreign Direct Investment (FDI) on the restructure of firms in the regional market and recommend related course of actions;


• To analyze the investment politics to the less developed zones in the inland of Member States and recommend related course of actions;


• To compare the methodologies for the survey of information statistics on the Member States;


• To elaborate reports related to the investment flow in the region, encompassing all four member states, including: - Analysis of the evolution of the interregional investment (IRI) in the MERCOSUR, including its sources of financing.
  - Analysis of the evolution of the foreign direct investment (FDI) in the MERCOSUR.
• To follow up the negotiations on Investment in the international scene, particularly in the processes of interregional integration, and to coordinate the positions of MERCOSUR’s Member States in international forums in which it participates;


• To gather the existing rules and general applicable discipline to the investments in each one of the Member States in national, state/province and municipal level;


• To coordinate its works with other MERCOSUR’s groups;


• Other matters, upon the request of the Common Market Group.

Art. 4- This Working Sub-group will have to produce a report on the achievements of its works to the Common Market Group in all its ordinary meetings.

XXXVII GMC - Buenos Aires, April 5, 2000