Members of the Mercosur Sign the Protocol for Cooperation and Facilitation of Investments
Foreign Affairs Ministers of the Mercosur member countries Brazil, Argentina, Uruguay and Paraguay have recently signed the Protocol for Cooperation and Facilitation of Investments (PCFI – Protocolo de Cooperação e Facilitação de Investimentos), a reciprocal instrument aimed at creating favorable business environment and facilitating investments among the members of the bloc.
The Protocol is based on Brazil’s bilateral Agreement for Cooperation and Facilitation (ACFI – Acordo de Cooperação e Facilitação de Investimentos), already signed by Brazil with Mexico, Chile, Peru and Colombia.
Mercosur’s Protocol for Cooperation and Facilitation of Investments guarantees equal legal treatment for domestic and foreign investors, as well as freedom of movement of financial assets. It also seeks to limit the possibility of government expropriation of assets and creates channels for dialogue between investors and governments.
Brazil is also currently engaged in bilateral negotiations on trade agreements with Mexico, the European Union and EFTA – together with the Mercosur partners – and has opened public consultation on the initiation of talks with Japan and South Korea.