International Trade

Public Procurement in Mercosur

In December of 2017, Brazil, Argentina, Paraguay, and Uruguay approved the Public Procurement Protocol of MERCOSUR. This Protocol shall be applied in accordance with the provisions stated therein and the specificities that each State Part made in the Annexes in relation to the scope of application of the Protocol that includes which entities, goods and services, the minimum value of the procurement, as well as the General Notes for its application.

It is stipulated that public procurement of goods and services must be carried out in a transparent manner, observing basic principles of legality, objectivity, impartiality, equality, due process, publicity, and it also sets rules and procedures to perform the procurement.

Furthermore, the States Parties must grant most-favored-nation treatment, national treatment and non-discrimination to companies belonging to the States from the regional bloc. Through this way, the States Parties ensure that the treatment they receive from the other States Parties of MERCOSUR will be as beneficial as the treatment they provide to a third country.

The Protocol must be ratified and incorporated into the legal system of each State Party and shall enter into force thirty (30) days after the second instrument of ratification is deposited.