3 20 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation whopaysfordamagesduetononimplementationofthejudgmentsofthe MERCOSUR TribunalPermanentede Revision.A new Justice Tribunalwas agreedpolitically , buttofunctionit would need changesin some national constitutions. Butsomelessonshavebeenlearned.MERCOSURhasseentheweaknessofitsad hocsystemsfortradedisputesettlement , butthenewTradePolicyReviewMechanism ( TPRM ), createdin2004 , hasyettoproveitsefficiency.Again , inflexiblepositions onallegedriskstonationalsovereigntyblockprogress.Inaddition , theEUideaof compensationandsolidarityfundshasmadesomegroundinLatin America — for example , theStructuralConvergenceFundMERCOSUR ( FOCEM )— butitstillhas insufficientresources ( USD100million ) . 4.犆狌狉狉犲狀狋犈犝犕犈犚犆犗犛犝犚犆狅狅狆犲狉犪狋犻狅狀 CooperationwithMERCOSURusingfundsfromthebudgetoftheEuropean Community ( managedbytheCommission ) startedin1991 , notablyinsupportof itsnewlyestablishedstructures.The20022006RegionalStrategyPaper ( RSP ) provided , inadditiontobilateralCountryStrategyPapersandfunding , EUR48 millionto supportimplementation ofthe MERCOSUR internal market , institutionalisationandcivilsociety.TheEUcontributed , certainlyalsoinits owninterest , withtechnicalassistanceonthesettingofregionalstandardsand procedures.Fortheperiod200713 , withintheoverall “ regionalindicative programme ” fortheMERCOSURarea ( EUR556million = 21percentofthe globalallocationsforLatinAmerica ), EUR50millionareearmarkedtofinance MERCOSURintegrationprojectsinthreepriorityareas: ( 1 ) strengtheninginstitutions ( 10percent ), ( 2 ) supportingintegration and preparingfortheimplementation ofan AssociationAgreement ( 70percent ) and ( 3 ) fosteringtheparticipationofcivilsocietyintheintegrationprocess , including disseminatinginformationandincreasingitsvisibility ( 20percent ) .Thismakesthe EUbyfarthelargestprovideroffinancialassistancefortheintegrationofMERCOSUR ( EuropeanCommission2007 ) . Politically , theEUcooperationprogrammewasdesignedontheassumption thatMERCOSUR wouldcontinuetostrengthenitsinstitutionsanddeepenits integrationatasustained pace.However , theprogrammeisexperiencing difficultieswithregardtopolitical , technicalandadministrativeimplementation. ThereisnoMERCOSURinstitutionwhichcouldbethepartnerorbeneficiaryof theProgramme.Each projectis managedasanad hocarrangement witha nationalagency , whichthenactsasthecoordinatorwithin MERCOSUR.This
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