Brazil enacts agreement to facilitate e-commerce in Mercosur

Brazil has formally adopted the Mercosur Electronic Commerce Agreement, which was first signed in 2021 by member nations including Argentina, Paraguay, and Uruguay. The primary aspect of this agreement is the elimination of customs duties on electronic transactions among individuals across the four countries. In addition, the agreement tackles personal data protection, cybersecurity, and electronic signatures to facilitate cross-border e-commerce. It took effect on Monday, August 24.

The Mercosur agreement integrates international standards to promote digital commerce within the region, aiming to alleviate hurdles for online transactions. The agreement calls for governments to implement measures to streamline digital trade, boost regulatory transparency, and prevent regulations that excessively curtail electronic activities. It also establishes the legal recognition of electronic signatures across Mercosur nations to simplify cross-border business and transactions.

Data protection is a crucial element of the agreement, with the participating countries vowing to uphold laws and administrative measures to shield personal information of e-commerce users. They also agreed to share experiences and best practices in data protection. For data transfer, the deal permits the movement of information across borders for commercial purposes, as long as personal data protection rules are adhered to.

Furthermore, it prohibits requiring foreign companies to keep servers or data storage within a particular territory to operate locally.

The agreement also requires countries to take measures to safeguard consumers from unsolicited electronic messages, mandating opt-out mechanisms for receiving such messages. In terms of security, the parties pledged cooperation in cybersecurity, consumer protection, digital trade for small and medium-sized enterprises, e-government, and the exchange of information on regulations and industry statistics.

The agreement stipulates that it will be reviewed every two years to keep up with technological advancements and international discussions on e-commerce.

Upon enactment, Brazil has completed the internal process of integrating the agreement, which now takes effect in the country in line with Mercosur rules and national legislation.