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On June 3, 2025, Foreign Minister Mario Lubetkin signed the 69th Additional Protocol to the Economic Complementation Agreement No. 35 (ACE 35), marking a significant modernization of the Rules of Origin under the trade agreement between MERCOSUR and Chile. This update aims to facilitate trade by simplifying and flexibilizing the origin criteria that exporters must meet to qualify for tariff preferences under the agreement.
Key Updates
- The modernization aligns ACE 35’s Rules of Origin with the latest standards adopted by MERCOSUR (Decision CMC 05/23).
- It partially relaxes specific origin requirements, offering producers greater flexibility in sourcing inputs to qualify as “originating” products.
- Special emphasis on key sectors such as dairy and automotive, where expanded eligibility for tariff benefits is expected.
- The automotive annex between Chile and Uruguay now includes a broader range of products eligible for benefits upon meeting origin requirements.
Implementation Timeline
The protocol will come into effect 60 days after ALADI’s General Secretariat confirms receipt of notifications from all MERCOSUR member states and Chile, affirming the fulfillment of internal legal procedures.
Strategic Significance
This modernization is part of MERCOSUR’s broader initiative to update the rules of origin across its trade agreements, including those with Colombia and other partners. Coordinated by the Ministry of Economy and Finance’s Trade Policy Division, this process also involves the Customs’ Department of Value and Origin and, notably, the Ministry of Industry, Energy, and Mining for the automotive sector.
This update supports regional trade growth, competitiveness, and economic integration by simplifying rules and expanding eligible products.
For Exporters and Businesses
Exporters benefiting from ACE 35 will find it easier to navigate origin requirements, increasing their access to preferential tariffs and improving competitiveness in regional markets.
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