On November 7, the Mercosur’s Common Market Group (GMC) approved GMC Resolution No. 49/2019 that establishes a new regulation for specific actions related to tariffs due to regional shortage, replacing the current rules of GMC Resolution No. 08/08.
The new regulation follows the general system provided by the prior normative, but innovates through more detailed procedural rules, including a deadline for members of the group to deliberate on the claims received. A simplification was also promoted over the hypotheses that constitute a “supply shortage”, reducing them to three situations.
The scope of the instrument has also been updated so that there is greater standardization of the benefits granted to each member. This means that Brazil, Argentina, and Uruguay will be able to reduce the rates to 2% or 0%, and Paraguay’s benefit of a 0% reduction will be maintained. In addition, each member-country will have a list of 100 NCM codes for the application of tariff reductions, without any limitation related to the different hypotheses of shortage.
