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Flexibility: to bring about adjustments in scope, pace and objectives.Equilibrium: to stimulate inter-sector integration and the progressive exchange balance betweenlarge sectors and segments through the expansion of trade.Reciprocity: to promote reciprocal rights and obligations among the signatory States.2. INSTRUMENTS FOR MEETING MERCOSUR’S OBJECTIVESA Free Trade Program to be implemented among member States, which consists of gradual andautomatic tariff reduction, the elimination of non-tariff restrictions or measures with similar effects, aswell as restrictions to commerce among member countries.≠ A Common Tariff of 0% as from January 1 1995, except for a list of items for which the tariffrate is above 0%.≠ A Common External Tariff applied to third countries, with rates of 0-20%. Each membercountry has its List of Exceptions. The List of Exceptions includes capital goods; computer science andtelecommunication items; automotive products; tractors and their parts; other exceptions. The tariffrates for products on the List of Exceptions are to converge towards the Common External Tariff by theyear 2006.≠ Coordination of macroeconomic policies and regional agreements among the memberCountries.≠ An Origin Regime, establishing the minimum requirements for products, in order to beconsidered as coming from the member Country, which will enable them to enjoy exemption-relatedbenefits.≠ A System for Conflict Resolution. Any controversy arising among the MERCOSUR countriesshall be resolved through mechanisms included in the provisions of the Protocol of Olivos; those thatarise with a third country are to follow the terms of the World Trade Organization.3. BENEFITS FOR PARAGUAY IN JOINING THE MERCOSURAs an economic block, the Common Southern Market – MERCOSUR - offers its member countries abetter chance defending the block’s common interests in negotiations with the European Union, theWorld Trade Organization, and within the future Free Trade Area of the Americas.Paraguay enjoys advantages regarding production, among which are three factors that contribute toprofitable export: natural resources, location and human resources. The combination of these25Berkemeyer Attorneys and Counselors | Asunción - Paraguay