Understanding Agrilend and the MERCOSUR

The MERCOSUR is a powerful dominant force in international global markets and originally began with its Members;Bolivia, Venezuela, Paraguay, Uruguay, Brazil and Argentina as direct Member Countries, in South America, however it is rapidly gaining momentum by its cooperative Associate Member Countries in Central America and its international prowess relies on its ability to cooperate confidential public private initiative agreements with cooperating countries desiring to do corporate business attached with attractive concensions by partnering with MERCOSUR for the sake of obtaining finance, capital, agricultural export or import, natural resources and as an exchange for favor. It is however important to distinguish its Members current state and its Associate Members current state.

The MERCOSUR is a consummation of a likely, if not inevitable global economic marriage. It began its path of greater cooperation in International Trade Finance of Agriculture by the signing of the Iguazu Declaration, signed by Presidents Raul Alfonsin of Argentina and Jose Sarney of Brazil on November, 29, 1985. Originally it was a few Member Countries and Associate Member Countries in South America. Now, over the years its influence has spread to adopt Associate Member Countries in Central America in which are showing greater economic resilience and investment opportunities. Central America is the southernmost, isthmian portion of the North American continent, which connects with the South American continent on the southeast. Central America is bordered by Mexico to the north, Colombia to the southeast, the Caribbean Sea to the east, and the Pacific Ocean to the west. Central America consists of seven countries: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. Central America is a part of the Mesoamerican biodiversity hotspot, which extends from northern Guatemala through to central Panama. In the Pre-Columbian era, Central America was inhabited by the indigenous peoples of Mesoamerica to the north and west and the Isthmo-Colombian peoples to the south and east. Soon after Christopher Columbus's voyages to the Americas, the Spanish began to colonize the Americas. From 1609 until 1821, most of the territory within Central America—except for the lands that would become Belize and Panama—was governed by the Viceroyalty of New Spain from Mexico City as the Captaincy General of Guatemala. After New Spain achieved independence from Spain in 1821, some of its provinces were annexed to the First Mexican Empire, but soon seceded from Mexico to form the Federal Republic of Central America, which lasted from 1823 to 1838. The seven states finally became independent autonomous states: beginning with Nicaragua, Honduras, Costa Rica, and Guatemala (1838); followed by El Salvador (1841); then Panama (1903); and finally Belize (1981).

In this very important declaration, by Presidents Raul Alfonsin of Argentina and Jose Sarney of Brazil both presidents indicated joint positions of a number of economic and foreign policy issues and even though this treaty began in South America. The most important part of the declaration however, was the Agreement that Cooperation, Harmonization, Technological Innovation and Monetary Integration of a number of Agricultural Sectors of the Economy was desirable and therefore the creation or implementation of mechanism to address the Financing of Agriculture is Paramount to its Global Agenda. Now, although MERCOSUR, or “ The Common Market of the Southern Cone” began in South America as depicted above more and more Associate Members are joining the BLOC by connecting first Central America and South America. South America is a continent located in the western hemisphere, mostly in the southern hemisphere, with a relatively small portion in the northern hemisphere. It may also be considered a subcontinent of the Americas, which is how it is viewed in the Spanish and Portuguese-speaking regions of the Americas. The reference to South America instead of other regions (like Latin America or the Southern Cone) has increased in the last decades due to changing geopolitical dynamics (in particular, the rise of Brazil) It is bordered on the west by the Pacific Ocean and on the north and east by the Atlantic Ocean; North America and the Caribbean Sea lie to the northwest. It includes twelve sovereign states (Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Perú, Suriname, Uruguay, and Venezuela), a part of France (French Guiana), and a non-sovereign area (the Falkland Islands, a British Overseas Territory though this is disputed by Argentina). In addition to this, the ABC islands of the Kingdom of the Netherlands, Trinidad and Tobago, and Panama may also be considered part of South America.

South America has an area of 17,840,000 square kilometers (6,890,000 sq mi). Its population as of 2016 has been estimated at more than 420 million. South America ranks fourth in area (after Asia, Africa, and North America) and fifth in population (after Asia, Africa, Europe, and North America). Brazil is by far the most populous South American country, with more than half of the continent's population, followed by Colombia, Argentina, Venezuela and Peru. In recent decades Brazil has also concentrated half of the region's GDP and has become a first regional power.

Most of the population lives near the continent's western or eastern coasts while the interior and the far south are sparsely populated. The geography of western South America is dominated by the Andes mountains; in contrast, the eastern part contains both highland regions and large lowlands where rivers such as the Amazon, Orinoco, and Paraná flow. Most of the continent lies in the tropics.

The continent's cultural and ethnic outlook has its origin with the interaction of indigenous peoples with European conquerors and immigrants and, more locally, with African slaves. Given a long history of colonialism, the overwhelming majority of South Americans speak Portuguese or Spanish, and societies and states reflect Western traditions.

The MERCOSUR is highly organized and Under the Treaty, the Ouro Preto Protocol, and the Olivos Protocol seven institutions are charged with implementing MERCOSUR’s principles and purposes. They include The Council of The Common Market ( “ Council”) the Common Market Group ( “ The Group”) the MERCOSUR Commerce Commission ( “ MCC”), the Joint Parliament Commision, the Economic and Social Consultative Forum ( “ Forum”), the Administrative Secretariat ( “ Secretariat”), the Permanent Appellate Tribunal ( “ the Tribunal”) and the Committee of Permanent Representatives ( “ CPR”)

The Plan of Agrilend in 2018-2019 is to provide unlimited capital to The United States Agricultural Industry as well as expanding its American brand to the Latin American Markets through ts distribution and prowess through MERCOSUR by its Member Countries or Associate Member Countries.

The MERCOSUR institutions.

Under the Treaty, the Ouro Preto Protocol, and the Olivos Protocol seven institutions are charged with implementing MERCOSUR’s Principles and purpose. They include the Council of the Common Market ( “ Council”), the Common Market Group ( “ The Group”) , the MERCOSUR Commerce Commission ( “ MCC”) the Joint Parliamentary Commission, the Economic and Social Consultative Forum ( “ Forum”), the Administrative Secretariat ( Secretariat”), the Permanent Appellate Tribunal ( “ the Tribunal”) and the Committee of of Permanent Representatives ( “ CPR”)

The Council

The Council consist of the Foreign Relations and Economic Ministers of the four Member States. Its presidency rotates among the member states, in alphabetical order, every six months. The Council is responsible for the political leadership of the integration process and taking decisions to ensure the implementation of the objectives of the Treaty of Asuncion. In Addition, the Council is the legal representative of MERCOSUR, entitled to sign agreements with third party countries, groups, of countries, or international organizations. It supervises the other MERCOSUR institutions, and can modify or eliminate them. It also acts on policy proposals sent to it by the Group and has the power to designate the Director of the Secretariat. The Council acts by means of “ Decisions,” which, according to the Ouro Preto Protocol, are “ obligatory for the member states.” The Council is the most important and powerful MERCOSUR institution.

The Group

The Group has four alternate representatives from each member state designed by their governments. Representatives from the economics and foreign ministries and central bank must be included in each member state’s delegation, which is coordinated by the Ministries of Foreign Relations of the member states. Its principal responsibilities include monitoring compliance with the Treaty of Asuncion, proposing policy for consideration by the Council and ensuring compliance with Council Decisions. Analysis and recommendations on proposals or recommendations submitted by other MERCOSUR institutions are also part of the Group’s responsibilities. It may, if authorized by the Council, become MERCOSUR’s representative in negotiating agreements with non member countries, groups of countries or international organizations. Administratively,the Group approves the MERCOSUR budget, the Secretariats annual expenditures, and supervises the Secretariat staff and Council meetings. The Group has its own internal regulations and can create “ working subgroups” to assist it in its work. The Group’s Resolutions’’ are “ binding on the member states.”

The Council and the Group bear a superficial resemblance to the European Union’s Council and Commission. In both organizations, the Council is controlled by the member states and has the power to create policy or “ community law” while the other institutions, the Commission in the EU and the Group in MERCOSUR, represent the proposer and implementer of policy. The European Commission and the Group are, however, very different institutions. The former is a supranational institution whose members are independent of the member states and which controls a substantial permanent staff. They have a substantial independent power base. The Latter is controlled by the member states whose senior civil servants serve as its members, has no staff, and no independent power base. Its role seems to be primarily administrative, rather than that of a planning and policy making entity.

The MCC

The MCC, a creature of the Ouro Protocol, has four representatives and four alternates from each member state. It monitors the application of and implements the common commercial policy agreed to by the member states. Decisions regarding the administrative and application of the common external tariff, and proposals relating to changes to the common external tariff, and the common commercial policy are also part of its responsibilities. The MCC also provides information to the Group on the evolution and application of the common commercial policy. The MCC also considers and decides applications submitted to it by the member states regarding the administration of MERCOSUR,s Common external tariff and common commercial policies and monitors matters dealing with common commercial policies, intra-MERCOSUR trade and trade relations between MERCOSUR and non member states. The MCC also has internal regulations which regulate its proceedings. Furthermore, it also has the power to create sub-working Groups to examine and make proposals regarding different specific areas related to the common external tariff and the common commercial policy. It also has under

the Olivios Protocol, the power to consider claims by individuals relating to member state violations of the Treaty and community law. The MCC issues either “ Directives” or “ Proposals” with the former being “ binding on the member states>” The MCC, with its specialized personnel is a technical body whose principle task involves the analytics of areas of policy and the preparation of proposals relating thereto. In December of 2003, the Council instructed the MCC to schedule additional follow up meetings. These meetings are to undertake whatever preparatory work is necessary to prepare agenda issues for consideration at the next regulatory scheduled MCC meeting and whatever other task the MCC may assign it.

The Joint Parliamentary Commission.

The Joint Parliamentary Commission, another Ouro Preto creation, serves as a representative of the legislatures of the member states. Each member state has equal number of members who are designated by their parliaments. One of its principal missions is to engage in planning and set the stage to create a future MERCOSUR Parliament. It is also to meant to be an institution which will assist MERCOSUR in the implementation of its policies and in the harmonization of national legislation therewith. It has an advisory function at this point. However, there are no current plans to strengthen this institution and evolve it into a MERCOSUR Parliament.

The Forum.

Under our Ouro Preto Protocol, the Forum’s represent the various sectors of economic and social life such as merchants, consumers, and workers. Its functions are purely advisory and this advice takes the form of recommendations to the Group and other MERCOSUR institutions. It is meant to “ cooperate actively” to promote economic and social progress within MERCOSUR, analyze and evaluate the social and economic impact of various integration policies and their implementation, and perform studies and research on econ

omic and social matters that are relevant to MERCOSUR.

The Secretariat.

The Secretariat is the only institution within MERCOSUR to have a permanent staff. It is permanently headquartered in Montevideo, Uruguay and, at present, its staff consist of approximately 27 persons. It is proposed 2002 budget was approximately $980,000.00 The Secretariat’s responsibilities include translation of documents, logistical support for all of the other institutions, editing the MERCOSUR Official Gazette, information gathering for the other institutions and communications with the member states. The Secretariat also has the task of monitoring and reporting on the implementation of all MERCOSUR norms by each of the member states into its national legal system. Furthermore, the Secretariat manages the panel of Arbitrators established by the Brasilia and Olivos Protocols to resolve disputes arising out of the Treaty of Asuncion and its implementation. The Secretariat appears to have no substantive decision making power. Again, the member states of MERCOSUR have clearly sought to ensure that control over the integration process remains in the hands of the member states, and not in a group of international civil servants. The Secretariat is headed by a director which is appointed by the Group. The MERCOSUR Secretariat is divided into four major sections: Documents and communications, Norms, Administration and Information Technology.

In December 2002, as part of an effort to transform the Secretariat from an “ Administrative Secretariat” to a “ Technical Secretariat”, the Council added a Technical Assessment to the Secretariat. This Technical Assessment section is to provide technical assistance to the other MERCOSUR institutions, follow up and evaluate the implementation of the integration process and monitor legal consistency of the actions and norms enacted by the various MERCOSUR institutions The Technical Assessment section is staffed with four individuals, two of whom are to be lawyers and two of whom are to be economist.

The directive did, however, recognize that a larger and stronger Secretariat is necessary to the consolidation and progress of the MERCOSUR integration process and instructed the Group to consider future changes to make it a more effective institution.

The CPR

The CPR was created by the council, using its powers under the Ouro Preto Protocol, in October of 2003. Its mandates includes assisting Council and its President Pro Tem, in those matters where where the former request their assistance; presenting initiatives to the Council regarding matters relating to the MERCOSUR integration process, external negotiations and implementation of the common market; and strengthening the economic, social and parliamentary relationships in MERCOSUR, by establishing links with the Joint Parliamentary Commission, the Economic and Social Consultative Forum, and the MERCOSUR specialized meetings.

The CPR is to be composed of the Permanent Representatives from each member state to MERCOSUR and a President.

The President is to be a “ distinguished political personality” who is a national of one of the member states. He is to be nominated by the presidents of member states, elected by the Council, and will serve for a two year period, which can be extended for an additional year. He is to preside over meetings of the CPR and attend all Council meetings and meetings of MERCOSUR ministers. He may also, as appointed by the Council, represent MERCOSUR in its relations with third countries, groups of countries and international organizations and must present a report on the activities of the activities of the CPR meetings at meetings of the Council. Eduardo Duhalde, former president of Argentina, was named as the first president of the CPR in October of 2003.

The CPR is to be permanently based in Montevideo and is to be assisted and supported by the Secretariat. The member state whose national serves as president of the CPR will be responsible for the financing necessary for the expenses of the CPR presidency.

The CPR seems to resemble the European Union’s Committee of Permanent Representatives (“COREPER”) which is a committee composed of the permanent representatives of the EU member states. It is divided into the two parts, one composed of the permanent representatives and the other of its deputies. The role of COREPER and responsibility is the preparation of the European Council’s proceeding, with the exception of European issues. In order to complete this mission, COREPER has a large number of working parties, which are composed of national delegates and experts, who specialize in particular areas. The main difference between the CPR and COREPER is that the former, unlike the latter, does not seem at this time to have any staff to assist it other than the Secretariat. As has been seen above, the Secretariat is rather small and overworked and its assistance to the CPR is bound to be relatively small. Furthermore, CPR’s mission and mandate does not seem to be as expressively delineated as that of COREPER. CPR’s future importance is, accordingly, unclear at this time.

It is important for International Agriculture to be financed all forces combine, MERCOSUR is now creating alliance with United Arab Emirates as well as Asia and Europe and Australia and even adopting Sharia-Compliant Finance Principles to finance partnerships world wide. For more information please feel free to contact me at Phone: 888 749 5212  or robertmorgan@agrilend.co or visit our website at www.agrilend.co