Brasília, July 9, 2004 (Agência Brasil) - From now on the Mercosur will have a court of last resort to judge trade disputes among the bloc's member countries (Brazil, Argentina, Uruguay, and Paraguay) - the Permanent Appeals Court. The organ was instituted at the 26th Mercosur Summit Meeting, which ended yesterday (8) in Puerto Iguazú, Argentina.

The summit meeting gathered the heads of State and Ministers from the four countries and the three associated States (Chile, Bolivia, and Peru), as well as the Presidents of Venezuela, Hugo Chávez, and Mexico, Vincente Fox, who were there as official guests.

Up to now, when member countries disagreed over trade questions, the Court of Arbitration was called on to analyze the impasse. However, if a party was dissatisfied with the Court's decision, it had to direct its appeal to other international forums, such as the World Trade Organization (WTO). With the Permanent Court, countries will no longer need to seek other venues for their appeals. The Court, which will be based in Assunción, Paraguay, should begin to function in the coming months, according to the Ministry of Foreign Relations.

In addition to the Court, the Mercosur Presidents approved President Hugo Chávez's request to admit Venezuela to the economic bloc as an associate member. Venezuela's entry should be made official after its free trade agreement with the Mercosur is registered with the Latin American Integration Association (ALADI).

Mexico also submitted an entry request, which received the backing of Brazilian President Luiz Inácio Lula da Silva. In his address at the Summit Meeting, President Lula pointed out that he and his Mexican colleague, Vicente Fox, acted together to begin negotiations for Mexico's membership in the bloc.

Some details of the free trade agreement between Mexico and the Mercosur have yet to be concluded. Therefore, Mexico will only be accepted into the bloc after the agreement is ready.

At the meeting, Brazil took over the temporary presidency of the Mercosur from Argentina, for a term that lasts six months. The bloc's heads of State will meet again in December, in Ouro Preto, Minas Gerais. On this occasion Brazil will pass the command of the bloc to Paraguay.

Reporter: Carolina Pimentel
Translator: David Silberstein