Mercosul

The Southern Common Market, commonly known by Spanish abbreviation Mercosur, and Portuguese Mercosul, is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Brazil, Paraguay, and Uruguay. Venezuela is a full member but has been suspended since 1 December 2016. Associate countries are Bolivia, Chile, Colombia, Ecuador, Guyana, Peru, and Suriname.

Mercosur's origins are linked to the discussions for the constitution of a regional economic market for Latin America, which go back to the treaty that established the Latin American Free Trade Association in 1960, which was succeeded by the Latin American Integration Association in the 1980s. At the time, Argentina and Brazil made progress in the matter, signing the Iguaçu Declaration (1985), which established a bilateral commission, which was followed by a series of trade agreements the following year. The Integration, Cooperation and Development Treaty, signed between both countries in 1988, set the goal of establishing a common market, to which other Latin American countries could join. Paraguay and Uruguay joined the process and the four countries became signatories to the Treaty of Asunción (1991), which established the Southern Common Market, a trade alliance aimed at boosting the regional economy, moving goods, people among themselves, workforce and capital. Initially a free trade zone was established, in which the signatory countries would not tax or restrict each other's imports. As of 1 January 1995, this area became a customs union, in which all signatories could charge the same quotas on imports from other countries (common external tariff). The following year, Bolivia and Chile acquired membership status. Other Latin American nations have expressed interest in joining the group.

Mercosur's purpose is to promote free trade and the fluid movement of goods, people, and currency. Since its foundation, Mercosur's functions have been updated and amended many times; it currently confines itself to a customs union, in which there is free intra-zone trade and a common trade policy between member countries. In 2022, the Mercosur had generated a nominal gross domestic product (GDP) of around 5.1 trillion US dollars, placing the bloc as the 6th largest economy in the world. The bloc places high on the human development index. It has signed free trade agreements with Israel, Egypt, Japan and the European Union, among others.

History

Background

For five centuries South America has been the scene of some of the most violent battles in the Americas. Since the arrival of the Spanish and Portuguese to the continent, the La Plata Basin has been the scene of Luso-Spanish disputes over territory (the territory that today is Uruguay, was once Spanish, then Portuguese, again Spanish and Brazilian). However, at the same time, in this region there are fundamental chapters of the political and economic emancipation of future Mercosur members.

During the 16th and 17th centuries, Spain organized the commercial system of its colonies around the "fleets and galleons" scheme, authorizing only certain ports the right to send or receive goods originating from these colonies. For cities like Buenos Aires, founded in 1580, this system threatened the region's economic development. To face this economic confinement, the population of Buenos Aires saw the only possible way out: the commercial exchange (albeit illegally) with Brazil. This was the beginning of a relationship destined to grow.

In the 19th century, the process of political emancipation in South America accentuated the contrasts between the countries of the region. During this period, important chapters in the history of Brazil, Argentina, Paraguay and Uruguay occurred. It is enough to mention the Cisplatine War, the independence of the Republic of Uruguay, the Uruguayan Great War, the Ragamuffin War, the dispute between unitaries and federalists in Argentina and the Paraguayan War: alliances, interventions and conflicts that forged the historical context of formation of the La Plata nation-states.

In 1941, in the middle of the Second World War, Brazil and Argentina for the first time tried to create a Customs Union between their economies. However, this did not happen due to the countries' diplomatic differences in relation to Axis policies, after the attack on Pearl Harbor. With the end of the war, the need for interaction between nations became imminent and, consequently, economic blocs formed. In Latin America, however, there was no union that obtained satisfactory results.

Foz do Iguaçu Declaration

In December 1985, Brazilian President José Sarney and Argentine President Raúl Alfonsín signed the Iguaçu Declaration, the basis for economic integration of the so-called Southern Cone. Both countries had just come out of a dictatorial period and were facing the need to redirect their economies to the outside and globalized world.

Both countries had contracted a large external debt during the period of the military governments and did not enjoy credit abroad. There was a great need for investment in the countries, but no money. This common situation made them both realize the mutual need. Shortly after the signing of the Iguaçu Declaration in February 1986, Argentina declared its intention of a "preferential association" with Brazil. In a private home in Don Torcuato, there was a meeting to discuss the matter. The discussion, lasting two days, took place in an atmosphere of exchanging ideas and stating positions regarding the status of the area's economy.

After a few weeks, Brazil invited Argentina to a similar meeting, in Itaipava, also in a private residence. This signaled acceptance of the Argentine initiative and the formation of an agreement, with the objective of promoting the economic development of both countries and integrating them into the world. Out of this meeting came the ''Argentina-Brazil Integration and Economics Cooperation Program'' or PICE (Portuguese: Programa de Integração e Cooperação Econômica Argentina-Brasil, Spanish: Programa de Integración y Cooperación Económica Argentina-Brasil). Protocol Number 20 of the program proposed the Gaucho as a currency for regional trade. For many, the idea of integration in South America seemed more like an abstraction, owing to various unsuccessful experiences in the past. However, this was perceived as different.

The Buenos Aires Act

On 6 July 1990, the President of Brazil, Fernando Collor, and the President of Argentina, Carlos Menem, signed the Buenos Aires Act aimed at total customs integration between the two countries. It was decided that all measures for the construction of the customs union should be completed by 31 December 1994. To ensure compliance with the deadlines, the Binational Working Group was created, the body whose responsibility was to define methods for creating the common market between the two nations. In September, the governments of Paraguay and Uruguay showed a strong interest in the regional integration process, leading to the full perception by the signatories that a more comprehensive treaty was needed.

Founding

Mercosur was finally established in 1991 by the Treaty of Asunción, based on the Buenos Aires Act, the Treaty of Asunción defined rules and conditions for the creation of a free trade zone among its four signatories. Likewise, it was decided that all measures for the construction of the common market should be completed by 31 December 1994 with the amendment of the Treaty of Ouro Preto. In 2001, celebrating the 10th anniversary of the bloc's creation, the Mercosur flag was hoisted for the first time at Mercosur's headquarters in Montevideo.

The main implications of this free trade zone are:

*The free movement of goods, services and productive factors between countries, through the elimination of customs duties and non-tariff restrictions on the movement of goods and any other measure to the same effect, with the establishment of a common external tariff and the adoption of a common commercial policy towards third countries or economic blocs;
*Products originating in the territory of a signatory country will have, in another signatory country, the same treatment applied to products of national origin;
*The coordination of foreign trade, agricultural, industrial, fiscal, monetary, foreign exchange and capital policies, of others that are agreed, in order to ensure adequate conditions of competition between members, with the commitment of these countries to harmonize their legislation, especially in areas of general importance, to strengthen the integration process;
*In relations with non-signatory countries, members of the bloc will ensure equal conditions of trade. In this way, they will apply their national laws to inhibit imports whose prices are influenced by subsidies, dumping or any other unfair practice. At the same time, the bloc's countries will coordinate their respective national policies in order to develop common rules on trade competition.

It was defined that during the transition period, the signatory countries would adopt a general regime of origin, a system for resolving disputes and safeguard clauses. To ensure order and compliance with deadlines, two institutional bodies were created:

*Common Market Group: a body formed by four full members and four alternate members from each country, from the respective Ministry of Foreign Affairs, Ministry of Economy and Central Bank. Until the creation of the Arbitral Tribunals, the Common Market Group was the main authority in resolving disputes;
*Common Market Council: the institution with the highest authority in the treaty, created to manage political decisions and ensure compliance with established deadlines.

The Treaty of Asunción also decided that the accession of a new member, in order to be effective, must be approved by legislative decree in all signatory countries. Otherwise, the membership process will be invalid.

The founding of the Mercosur Parliament was agreed upon at the December 2004 presidential summit. Up to 2010 it was planned to have 18 representatives from each country, regardless of population.

Venezuela adhesion and suspension of Paraguay

Venezuela's history in Mercosur began on 16 December 2003, during a Mercosur summit held in Montevideo, when the ''Mercosur Economic Complementation Agreement'' with Colombia, Ecuador and Venezuela was signed. This agreement established a timetable for the creation of a free trade zone among the signatory states and the full members of Mercosur, with a gradual reduction in tariffs. In this way, these countries were successful in negotiations for the formation of a free trade zone with Mercosur, since an economic complementation agreement, with full compliance with its schedule, is the item required for the rise of a new associate. However, on 8 July 2004, Venezuela was elevated to associate member status, without even completing the schedule agreed with the Common Market Council. The following year, the bloc recognized it as an associated nation in the process of accession, which in practice meant that the state had a voice, but not a vote.

The Caribbean country's Accession Protocol was signed in 2006 by all presidents of countries in the bloc. Subsequently, the Uruguayan and Argentine congresses approved the entry of the new member. The Brazilian congress did so only in December 2009. However, the Paraguayan congress did not approve it and, therefore, made it impossible for the Caribbean nation to fully join. Subsequently, on 29 June 2012, in response to Fernando Lugo's summary dismissal of the presidency, the Mercosur presidents decreed the Paraguayan suspension until the next presidential election, in April 2013. A month later, the bloc presidents acknowledged their adhesion of Venezuela and several trade agreements have been signed. It was suggested that the decision could be reversed with the Paraguayan return by exercising its veto power, which was not the case. The decision was the subject of controversy. For some economists, Venezuela's acceptance as a full member of Mercosur expands the bloc's economic importance and opens up new business and investment opportunities. However, for others, the decision was seen as hasty, imposed by the governments of Brazil and Argentina and motivated purely by political interests.

Bolivian membership status

On 7 December 2012, Bolivian President Evo Morales signed a protocol aimed at accession to full membership in the bloc. Such a proposal requires review and possible legislative approval. On 7 July 2015, the heads of Mercosur having decided to accept Bolivia's request to become a full member country, Bolivian president Evo Morales signed the Brasilia protocol. This allowed Bolivia full membership in Mercosur.

Suspension of Venezuela

In August 2016, the presidents of Brazil, Argentina, and Paraguay, while present in Rio de Janeiro for the Olympic Games, met to discuss suspending Venezuela from Mercosur. The three countries were in doubt about whether Venezuela was complying with the union's requirements for full membership, citing human rights violations among other issues. In fact, Venezuela was rejected from assuming the presidency of Mercosur by those three countries, prompting a dispute that continued to the end of the year.

On 21 November 2016, Paraguayan Foreign Minister Eladio Loizaga announced that Venezuela would be suspended in December 2016 after the nation was given a three-month period to reform its laws to abide to Mercosur requirements, with Mercosur noting that "rules governing trade, politics, democracy and human rights" needed to be overhauled in Venezuela. On 1 December 2016, Venezuela was suspended from Mercosur.

On 5 August 2017, the foreign ministers of Argentina, Paraguay, Uruguay and Brazil affirmed that Venezuela's membership in Mercosur is suspended indefinitely in response to the "rupture of the democratic order" in that country following the 30 July 2017 Constituent Assembly elections. The bloc by-laws have no provision for expulsion. However, trade and migration policies stay without changes to avoid aggravating the social crisis. Brazilian Foreign Minister Aloysio Nunes said that Venezuela will remain suspended until the country "re-establishes democracy."

In January 2019, the opposition-majority National Assembly declared incumbent Nicolás Maduro's 2018 reelection invalid, entering a presidential crisis. During a July 2019 summit in Santa Fe, Argentina, the bloc called for "free, fair and transparent presidential elections, as soon as possible" in Venezuela. The presidents of the four member countries signed a statement expressing concern "for the grave crisis that Venezuela is going through, which is seriously affecting the humanitarian situation and human rights."

Geography

The territory of Mercosur consists of the combined territories of six of the 12 countries of South America and their population. Including the overseas territories of member states, Mercosur experiences most types of climate from Antarctic to tropical, rendering meteorological averages for Mercosur as a whole meaningless. The majority of the population lives in areas with a subtropical climate (Uruguay, Southern Paraguay, Northeastern and Center Argentina and Southern and Southeastern Brazil), or a tropical climate (Venezuela and Northeastern Brazil). The Mercosur member states are home to the world's highest uninterrupted waterfall, Angel Falls in Venezuela; the largest river by volume, the Amazon River in Brazil; the longest mountain range, the Andes (whose highest mountain is Aconcagua at in Argentina); the largest rainforest, the Amazon Rainforest in Brazil; and much more if we take the associated members into account, such as the highest capital city, La Paz, Bolivia; the highest commercially navigable lake in the world, Lake Titicaca in Peru; the driest non-polar place on earth, the Atacama Desert; and, excluding research stations in Antarctica, the world's southernmost permanently inhabited community, Puerto Toro, Chile.

File:Monte Aconcagua.jpg, Mount Aconcagua in Argentina.
File:Amazonie.jpg, The Amazon rainforest in Brazil.
File:Lago Iporá vista.jpg, Lake Iporá in Uruguay.
File:ParaguayChacoBorealdryseason.JPG, Gran Chaco in Paraguay.
File:SaltoAngel6.jpg, The Salto Ángel falls in Venezuela.

One Mercosur full member, Argentina, has a claim to Antarctica called Argentine Antarctica, part of the province of Tierra del Fuego, which overlap partially the claim of a Mercosur associated state which is Chile and its Chilean Antarctica. Brazil does not claim any part of Antarctican territory but it does has a zone of interest called Brazilian Antarctica which overlap Argentina's claim.

Member states

Mercosur is composed of 5 sovereign member states: Argentina; Brazil; Paraguay; Uruguay and Venezuela (suspended since December 2016); and 7 associated states: Suriname, Guyana, Colombia, Ecuador, Peru, Chile and Bolivia, this latter in process of incorporation (since 17 July 2015); Plus two observer states: Mexico and New Zealand.

Following the impeachment of President Fernando Lugo by the Paraguayan Senate, this country was suspended from Mercosur, and the admittance of Venezuela as a full member became effective on 31 July 2012. Venezuela had four years to fully adapt to the trade bloc regulations and failed to do so, with the nation being suspended from Mercosur on 1 December 2016.

Directly subordinated to the Common Market Group, the work subgroups draw up the minutes of the decisions to submit for the consideration of the council, and study specific Mercosur concerns. The work subgroups are:
* Commercial matters
* Customs matters
* Technical standards
* Tax and monetary policies relating to trade
* Land transport
* Sea transport
* Industrial and technology policies
* Agricultural policy
* Energy policy
* Coordination of macroeconomic policies
* Labor, employment and social security matters

Work subgroups are held quarterly, alternating in every member state, in alphabetical order, or at the Common Market Group Administrative Office. Activities are carried out by the Work Subgroups in two stages: preparatory and conclusive. In the preparatory stage, members of the Work Subgroups may request the participation of representatives from the private sector of each member state. The decision-making stage is reserved exclusively for official representatives of the member states. The delegations of representatives from the private sector in the preparatory stage of the Work Subgroup activities will have a maximum of three representatives for each member state directly involved in any of the stages of the production, distribution or consumption process for the products that fall within the scope of the subgroup's activities.,

Demographics

Population

Mercosur has a population of 284 million among its full member states. The region has several areas of sparse demographics such as tropical forests and deserts, but it is also highly urbanized with the presence of two alpha cities – São Paulo and Buenos Aires – and several beta cities such as Montevideo, Rio de Janeiro, Brasilia, etc. The population is diverse, comprising people of European, Africans and Indigenous descent. People of Afro-Latin American descent tend to be concentrated in Brazil and Uruguay, with a smaller, but historic Afro-Argentine community in Argentina and an emerging population in Chile, the latter largely of Haitian origin. There is a high percentage of mestizos that vary greatly in composition by place. There is also a smaller population of Asians, notably in Brazil. The white population forms a majority in Argentina and Uruguay and represents about 45 percent in Brazil. Mestizos form the majority population in Paraguay, making it distinct from its immediate neighbors. Almost all Mercosur nations have significant indigenous American populations, especially in Paraguay (Guaraní is a national language in the country along with Spanish, and almost all Paraguayans have Guaraní genetic ancestry), Argentina (especially in the Northwest and Southwest of The country), Brazil (in the Northern and Northwest Amazonian states of the nation, where Native American tribes have vast reservation lands).

Urbanization

Languages

Portuguese, Spanish and Guarani are the three official languages of the Mercosur, as they are the official languages of the five full members – Portuguese is the official language of Brazil, Spanish is the official language of all other full member countries, while Paraguay also have Guarani as a co-official language. Along with Paraguay (where it is one of two official languages), parts of Argentina (notably Corrientes) speak Guaraní. However, the Mercosur does not provide all, or even most, services in Guaraní. The official website and almost all official summits are only held in Spanish and Portuguese. Important documents, such as legislation, are translated into Portuguese and Spanish.

Currently, among the full members, Portuguese is the most spoken language, with over 210 million native speakers as of 2019, while Spanish accounts for 83 million speakers approximately. Even though language policy is the responsibility of member states, Mercosur institutions promote multilingualism among its citizens, and while Brazil has enforced Spanish as a foreign language to be taught at school, Argentina and Venezuela have done so with Portuguese. Although Portuguese is the most spoken language by the bloc's population, Spanish is the more used language on internal affairs, as it is an official language to most members.

Merchandise trade

Intra-Mercosur merchandise trade (excluding Venezuela) grew from US$10 billion at the inception of the trade bloc in 1991, to US$88 billion in 2010; Brazil and Argentina each accounted for 43% of this total. The trade balance within the bloc has historically been tilted toward Brazil, which recorded an intra-Mercosur balance of over US$5 billion in 2010. Trade within Mercosur amounted to only 16% of the four countries' total merchandise trade in 2010, however; trade with the European Union (20%), China (14%), and the United States (11%) was of comparable importance. Exports from the bloc are highly diversified, and include a variety of agricultural, industrial, and energy goods. Merchandise trade with the rest of the world in 2010 resulted in a surplus for Mercosur of nearly US$7 billion; trade in services, however, was in deficit by over US$28 billion. The EU and China maintained a nearly balanced merchandise trade with Mercosur in 2010, while the United States reaped a surplus of over US$14 billion; Mercosur, in turn, earned significant surpluses (over US$4 billion each in 2010) in its trade with Chile and Venezuela. The latter became a full member in 2012.

Structure

The Asunción Treaty and Ouro Preto Protocol established the basis for the institutional Mercosur structure, creating the Common Market Council and the Common Market Group, both of which function at the outset of the transition phase. As provided for in this Treaty, before establishing the common market the member nations must call a special meeting to determine the definitive institutional structure for the public agencies managing Mercosur, as well as define the specific functions of each agency and the decision making process.

Common Market Council

The council is the highest-level agency of Mercosur with the authority to conduct its policy, and responsibility for compliance with the objects and time frames set forth in the Asuncion Treaty. The council is composed of the Ministers of Foreign Affairs and the Economy (or the equivalent) of all five countries. Member states preside over the Council in rotating alphabetical order, for six-month periods. Meetings: Council members shall meet whenever necessary, but at least once a year. The presidents of the member nations shall partake of the annual Common Market Council meeting whenever possible. Decision Making: Council decisions shall be made by consensus, with representation of all member states.

Common Market Group

The Group is the executive body of Mercosur, and is coordinated by the Ministries of Foreign Affairs of the member states. Its basic duties are to cause compliance with the Asuncion Treaty and to take resolutions required for implementation of the decisions made by the council. Furthermore, it can initiate practical measures for trade opening, coordination of macroeconomic policies, and negotiation of agreements with nonmember states and international agencies, participating when need be in resolution of controversies under Mercosur. It has the authority to organize, coordinate and supervise Work Subgroups and to call special meetings to deal with issues of interest. Composition: The Common Market Group shall be made up of four permanent members and four alternates from each member state, representing the following public agencies: (i) the Ministry of Foreign Affairs; (ii) the Ministry of Economy, or the equivalent (from industry, foreign affairs and/or economic coordination); and (iii) the Central Bank. The members of the Common Market Group appointed by a given member state will constitute the National Section of the Common Market Group for that particular nation. Meetings: The Common Market Group will meet ordinarily at least once every quarter in the member states, in rotating alphabetical order. Special meetings may be freely called at any time, at any previously scheduled place. The meetings will be coordinated by the Head of the Delegation of the host member state. Decision Making: Common Market Group decisions shall be made by consensus, with the representation of all member states. The official Mercosur languages will be Portuguese and Spanish, and the official version of all work papers will be prepared in the language of the country hosting the meeting.

Administrative and socioeconomic

The Administrative Office will keep documents and issue the Mercosur official bulletin in both Portuguese and Spanish, and will also be charged with communicating the activities of the Common Market Group so as to allow for the maximum disclosure of decisions and the relevant documentation. The Socioeconomic Advisory Forum is consultative by nature, and represents the various socioeconomic sectors of the member nations.

Work subgroups

Directly subordinated to the Common Market Group, the Work Subgroups draw up the minutes of the decisions to submit for the consideration of the council, and conduct studies on specific Mercosur concerns. The work subgroups are the following: commercial matters; customs matters; technical standards; tax and monetary policies relating to trade; land transport; sea transport; industrial and technology policies; agricultural policy; energy policy; coordination of macroeconomic policies; and labor, employment and social security matters. meetings. The meetings of the Work subgroups will be held quarterly, alternating in every member state, in alphabetical order, or at the Common Market Group Administrative Office. Activities will be carried out by the Work Subgroups in two stages: preparatory and conclusive. In the preparatory stage, the members of the Work Subgroups may request the participation of representatives from the private sector of each member state. The decision-making stage is reserved exclusively for official representatives of the member states. The delegations of representatives from the private sector in the preparatory stage of the Work Subgroup activities will have a maximum of three representatives for each member state directly involved in any of the stages of the production, distribution or consumption process for the products that fall within the scope of the subgroup's activities.

Joint Parliamentary Committee

The Committee will have both an advisory and decision-making nature; with powers to submit proposals as well. It will be competent, inter alia, to: follow up on the integration process and keep the respective Congresses informed; Take the necessary steps for the future instatement of a Mercosur Parliament; Organize subcommittees to examine matters relating to the integration process; Submit its recommendations to the Common Market Council and Group as to how the integration process should be conducted and Southern Common Market formed; Make the adjustments necessary to harmonize the laws of the different member states and submit them to the respective Congresses; Establish relationships with private entities in each of the member states, as well as international agencies and bureaus so as to obtain information and specialized assistance with matters of interest: Establish relationships targeting cooperation with Congresses of the nonmember nations and entities involved in regional integration schemes; Subscribe to cooperation and technical assistance accords with public and/or private entities whether domestic, supranational or international. The committee will be composed of a maximum of 64 acting parliamentary members, 16 per member state, and an equal number of alternates, appointed by the Congress to which they pertain, and with a term of office of at least two years. The meetings shall be conducted by a directors' board consisting of four presidents (one for each member state). The committee will ordinarily meet twice a year, and extraordinarily whenever summoned by any of its five presidents. Meetings are held in the territory of each member state on a successive and alternating basis. Decision Making: Meetings of the Joint Parliamentary Committee will only be valid when attended by parliamentary delegations from all member states. Decisions by the Joint Parliamentary Committee will be made by consensus vote of the majority of the members accredited by the respective Congresses of each member state. Portuguese and Spanish are the official languages of the Joint Parliamentary Committee.

Trade Commission

The Trade Commission will assist the Mercosur executive body, always striving to apply the instruments of common trade policy agreed to by the member states for operation of the customs unification. The commission should also follow up on the development of issues and matters related to common trade policies, the intra-Mercosur trade and trade with other countries. The commission will have five actual members and four alternates, with each member nation's indicating a member. The Trade Commission shall exert every effort to apply common trade policy instruments such as: trade agreements with other countries or international entities; administrative/commercial product lists; final adaptation system for Mercosur customs unification; origin system; free-trade zone system, special customs areas and export processing zones; system to discourage unfair trade practices; elimination and harmonization of tariff restrictions; nonmember country safeguard systems; customs coordination and harmonization; consumer protection systems; and export incentive harmonization.

Furthermore, the trade commission should speak out regarding the issues raised by the member states regarding application and compliance with common offshore tariffs and other common trade policy instruments. The commission shall meet at least once a month, as well as whenever asked to by the Mercosur executive agency or by a member state. The commission can take decisions entailing administration and application of trade policies adopted under Southern Common Market, and whenever necessary submit proposals to the executive body regarding regulation of the areas under its authority; additionally, it can propose new guidelines or modify those in existence in Mercosur trade and customs matters. In this respect, the trade commission can propose a change in the import duty on specific items under common external tariffs, including cases referring to development of new Mercosur production activities. To better achieve its objectives, the trade commission can create technical committees targeting direction and supervision of the work it engages in. It can also adopt internal operating regulations. Proposals and decisions of the trade commission will be taken by a consensus of the representatives indicated by each member nation. Any disputes ensuing from the application, interpretation or compliance with the acts issued by the trade commission are referred to the Mercosur executive body, and should be resolved using the directives set forth in the Dispute Resolution System adopted under Southern Common Market.

International jurisdiction over contractual matters

The rules on litigation jurisdiction over contractual matters will apply to disputes arising from civil or commercial international contracts between private-law legal entities or individuals provided that: They are domiciled or headquartered in different member states: At least one of the parties to the contract is domiciled or headquartered in any member state and, additionally, has made a choice of jurisdiction in favor of a court in one of the member states. In this case, there must be a reasonable connection between the jurisdiction chosen and the controversy. The scope of the application of the international jurisdiction guidelines over contractual matters excludes the following: legal relationships between bankrupt entities/individuals and their creditors and any other analogous proceedings (especially concordatas composition with creditors); matters under agreements involving family and succession law

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