After concluding bilateral agreements with Brazil, Paraguay, Uruguay and Argentina, the European Community decided to conclude an Interregional Framework Agreement with Mercosur. On 12 June 1995 the Council authorised the Commission to open negotiations with Mercosur. The Agreement with Mercosur does not alter undertakings made in the bilateral agreements already in force.
The "Interregional Framework Cooperation Agreement between the European Community and its Member States, of the one part, and the Southern Common Market and its Party States, of the other part - Joint Declaration on political dialogue between the European Union and Mercosur" was signed in Madrid on 15 December 1995 and entered into force on 1 July 1999.
The Agreement is designed to strengthen relations between the two parties on the basis of reciprocity and community of interests, with the prospect of establishing an interregional free trade association of an economic and political nature in the future. Respect for democratic principles and human rights constitute its essential element.
The sectors of cooperation include: trade, standards, customs, statistics and intellectual property; economic cooperation, with the emphasis on industrial, energy, scientific and technological cooperation, telecommunications, the environment and investment promotion. It provides the framework for strengthening integration and interinstitutional cooperation to embrace cultural activities, information and the fight against drug trafficking. The Agreement includes a future developments clause under Article 23.