The EU Trade
Agreements
Colombia
Peru
Central America
with
&
and with
Trade
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Foreword
The Trade Agreement with Colombia and Peru and the Association Agreement with the six Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) mark an important step in the
EU’s trade relations with Latin America and will strengthen the deep-rooted
political and economic as well as cultural ties Europeans and Latin Americans share. They represent a milestone in the bi-regional relationship and
deliver on the joint commitment by the EU and Latin America to forge
closer relations, as set out in the first EU-Latin America and Caribbean
Summit in 1999.
While the Agreement with Colombia and Peru specifically focuses on trade,
the Agreement with Central America also covers political dialogue and cooperation, in addition to trade. Together, these Agreements will establish a stable
and enforceable set of trading conditions that will generate EU-Latin American trade, boost investment and business opportunities as well as foster
enhanced technology and know-how transfers. Furthermore, the Agreements
will contribute to inclusive, sustainable economic development and the promotion of regional integration in the Central American and Andean regions.
In time, all tariffs on industrial and fishery products will be removed so
that exporters and importers will be able to trade without paying duties.
After a slightly longer period, exporters will also benefit from the liberalisation of tariffs on many agricultural products. In addition to this, the
Agreements will break new ground in facilitating trade by tackling nontariff barriers and improving regulatory and procedural transparency. They
will also create enhanced market access opportunities in services, investment and government procurement. Rules in the area of competition and
the protection of intellectual property, including geographical indications,
will be strengthened.
The Commission has produced this brochure in order to allow business to
fully take advantage of the strengthened commercial links between the EU
and Latin America. It is designed to serve as a user-friendly guide to the
practical application of the Agreements and the wide range of trade and
investment opportunities they offer.
Karel De Gucht,
The
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What’s in it for
European companies?
The Trade Agreement with Colombia and Peru as well as the
trade part of the Association Agreement with Central America will improve, in concrete terms, the access for European
operators to the highly dynamic and increasingly competitive markets of Latin America and will add to the network
of agreements that already exists between the EU and other
Latin American countries, such as Chile and Mexico. The
Agreements are also stepping stones for future liberalisation
as they go beyond the market opening that can currently be
achieved in the multilateral context.
The two Agreements are expected to create substantial new
export opportunities for the EU, which - according to an independent study - will amount to a total value of €5.5 billion.
Over the course of their implementation, the two Agreements
will remove all customs duties on European industrial and
fishery products exported to both regions in 10 years. For a
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enterprises - in particular SMEs - perceive to be significant
behind-the-border obstacles to trade. For instance, measures have been agreed to improve the transparency of
technical regulations and standards as well as conformity
assessment procedures. Furthermore, innovative provisions aimed at simplifying labelling requirements feature
in both Agreements. Tackling red tape and technical trade
barriers is expected to bring considerable gains for European businesses.
Moreover, the two Agreements each comprise a series of
trade rules and disciplines that will build a level playing field
for European operators when competing with local business
or other foreign firms. These consist of measures on e.g.
sanitary and phytosanitary (SPS) requirements or the protection of intellectual property rights, including EU geographical indications.
very limited number of sensitive products some longer transition periods have been provided for. This will allow European
businesses exporting non-agricultural products to see annual
tariff savings of up to €335 million. Over the years, these
substantial gains will be supplemented by the dismantling of
tariffs on agricultural and processed agricultural goods, with
tariff savings eventually amounting to €43 million.
Far-reaching liberalisation of trade in services will enable
European firms to benefit from enhanced market access for
cross-border services and establishment in areas such as financial services and telecommunication services. European
operators will also enjoy improved access to the national and
local government procurement markets.
Besides goods and services, the Agreements contain specific commitments to address non-tariff barriers, which
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Finally, the Agreements seek to reinforce regional economic integration and facilitate the movement of goods within and between the Latin American sub-regions. The trade
part of the Association Agreement includes measures to
promote regional integration amongst the Central American
countries on matters relating to SPS, technical regulations
and customs procedures. The EU has left the door open for
Ecuador and Bolivia to join the Trade Agreement with Colombia and Peru, with the aim of supporting the Andean
Community’s integration.
Although not analysed in detail in this brochure, the Agreements also comprise provisions on competition and subsidies that will prohibit distortive practices, including restrictive arrangements and cartels. Furthermore, both the Trade
Agreement and the trade pillar of the Association Agreement
include a comprehensive sustainable development chapter
aimed at furthering environmental protection and ensuring
the protection of labour rights.
The following sections of this brochure give a non-technical
overview of the each of the relevant elements of the Agreements - including the institutional structure that will work for
their implementation - and provide guidance on some of the
practical steps that businesses will need to take in order to
make the best use of the Agreements’ provisions.
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Chapter 1
Tariff elimination for goods
Over the course of their implementation, the two Agreements will completely eliminate all customs duties on
European industrial and fishery products (non-agricultural market access, NAMA) exported to Colombia, Peru and
Central America. Taking due account of differences in development levels between the EU and its trading partners, the
EU has granted 100 % coverage for Central American and
Andean industrial goods and fisheries at entry into force of
the Agreements.
The EU has obtained immediate preferential treatment on
a range of key export sectors. From day one, 80 % of EU
exports of industrial and fishery products to Peru and 65 %
of exports to Colombia will benefit from full liberalisation.
After 10 years, all NAMA products exported to Colombia and
Peru will be completely liberalised. The Central American
countries will immediately eliminate tariffs on EU industrial
and fishery products covering 68 % of existing trade. The
Central American countries have agreed to liberalise 95 % of
existing NAMA imports from the EU after 10 years, another
4 % after 13 years and the rest after 15 years.
In time, agricultural products and processed agricultural
goods of key interest to European producers will face zero
tariffs at the end of the transition periods. In many cases full
liberalisation of these products will take less than 10 years,
with the exception of a few sensitive products that will either benefit from valuable duty-free quotas or be liberalised
over a somewhat longer period.
These tariff eliminations will create significant savings for
European operators trading with Central America, Colombia
and Peru - eventually totalling €378 million annually. The
potential for EU exporters to improve and consolidate their
competitive position in the Latin American markets is therefore considerable and it is estimated that the Agreements
will boost trade in goods and services by €5.5 billion for the
EU, €730 million for Colombia and Peru and €1.6 billion for
the Central American countries. Owing to the expansion of
trade, the gains from tariff savings can be expected to be
even higher in the long run.
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Key examples of tariff dismantling benefits for
European exporters:
□□
□□
A high share of product categories in a range of industrial sectors will benefit from no longer having to pay customs duties
at entry into force of the Agreements. The EU has obtained this
high share of coverage in key EU export sectors, including, for
example, construction equipment, medical devices, optical instruments, machinery, electrical and electronic equipment, pharmaceuticals, chemicals, textiles and clothing, footwear, ceramics as
well as cosmetics.
Once fully implemented, the Agreements will relieve exporters in
the motor vehicles and parts sector from paying customs duties
worth more than €65 million each year. For more sensitive products, such as passenger cars with small to medium- sized engines, Colombia, Peru and Central America will dismantle tariffs
gradually and within a 10 year limit.
□□
In the chemical, rubber and plastic sector, the two Agreements
will generate annual tariff savings worth more than €92 million
when they fully enter into force.
□□
In addition, as a result of the two Agreements, European exporters of pharmaceutical products will see tariffs fall by more
than €24 million annually.
□□
From the start, European producers will be able to export
whisk(e)y to Panama and Peru without having to pay customs
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duties. Vodka exports will enter Peru duty-free from day one.
Central America will liberalise whisk(e)y after 6 and vodka after
10 years, whilst Colombia will liberalise both spirits after 10
years. All other spirits (except rum) will be liberalised from the
outset.
□□
Wine, another key product for European producers, will have immediate
duty-free access to the Central American and Colombian markets. Nonsparkling bottled wines and sparkling wines will enter the Peruvian
market duty-free after 3 and 5 years.
□□
As of day one, European producers will fully be relieved of having to pay duties for their olive oil exports to Central America,
Colombia and Peru.
□□
Duties on whey will be fully eliminated in Peru at entry into
force and in a maximum of 3 years in Colombia and the six Central American countries. There will be valuable immediate zeroduty tariff rate quotas for e.g. milk powder, some cheeses and
processed dairy products. These quotas will cover more than
existing trade and grow each year by 5 % in Central America and
10 % in Colombia as well as Peru.
□□
Processed pork meat, such as hams, will have duty-free access
after 5 and 5 to 7 years in Colombia and Peru, respectively. The
Central American countries will open a duty-free tariff quota
covering more than existing trade and allowing for eventual full
liberalisation.
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‘sufficient processing’ are outlined for each product in the
product-specific rules.
Rules of Origin: How can European exporters
benefit from tariff elimination?
Rules of Origin are an important aspect of any trade agreement.
In order for goods exported from the EU to Colombia, Peru or
Central America to benefit from the trade preferences granted
under the Agreements, various conditions have to be fulfilled.
●●
●●
When does a product ‘originate’ in the EU,
Central America, Colombia and/or Peru?
There are two main scenarios for a product to be considered as
‘originating’ in the EU or in Colombia, Peru or Central America:
□□
It has been wholly obtained in the EU or Colombia, Peru
or Central America (cf. plants, animals born and raised, fish
when caught in the territorial waters or beyond the 12-mile
limit by a vessel considered as Colombian, Peruvian (with
some specificities), Central American or European);
or
□□
It has been sufficiently processed in the EU or in Colombia, Peru or Central America. The criteria for determining
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Change of tariff heading. E.g. a ceramic product will originate in the EU if it is made from imported materials of
any other heading.
Value added. E.g. a vapour turbine will originate in the
EU if no more than 40 % of the value of the inputs has
been imported from outside the EU or Central America
when exporting to Central America, or imported from
outside the EU, Peru or Colombia when exporting to Colombia or Peru to manufacture it.
Specific operations. E.g. smart cards will originate in the
EU if the operation of diffusion is carried out there
Combination of these different rules. The different rules
have to be fulfilled alternatively or in combination.
It should be noted that due to the negotiation process
and despite there being an overlap in most areas, some
of the product-specific rules are not identical in two
Agreements.
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For example: Yarns originating in Central America can be imported into the EU and considered as originating in the EU when
further processed there beyond minimal operations and exported from the EU to Central America. It is also possible to import
some parts originating in Peru into Central America and then
treat those parts as originating in Peru, when exporting the final
product, e.g. a machine, to the EU.
□□
□□
The processing which took place in either the EU or Central
America, Peru or Colombia must go beyond minimal operations. For instance, washing is an operation which, in itself,
will never be enough to confer origin.
Goods have to be transported directly from the EU to Central America or to Peru and Colombia (or vice versa). Nevertheless, goods in a single consignment can transit through
another country, be transhipped or kept in a warehouse
there and still be eligible for preferential treatment, if:
●●
●●
What additional conditions have to be fulfilled?
Several additional criteria have to be met for a product to be
considered as originating in the EU or in Colombia or Peru or
in Central America:
□□
The different processing procedures normally have to be
carried out either in the EU or in Central America, Peru or
Colombia. However, EU producers can also use inputs originating in the Central America when exporting to Central
America, or originating in Peru or Colombia when exporting
to Peru or Colombia (or vice versa) to help them comply
with the rules. This is called cumulation.
●●
Additional possibilities are foreseen to use inputs originating in Andean countries when processing in Central
America and exporting to the EU. Moreover, it will be
possible to use inputs originating in other third countries
when processing in the EU, Central America or Peru and
Colombia - provided that certain conditions are fulfilled.
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they are not released into free circulation in the country
of transit or warehousing;
they do not undergo any operations other than unloading, reloading or operations to preserve them in good
condition.
This may be relevant in cases where companies have a regional distribution centre outside Central America, Peru or
Colombia. In practice, for such goods to benefit from preferential treatment granted under the Agreements with Colombia and Peru or Central America respectively, they have
to be accompanied by a transport document which will prove
their point of departure and the point of final destination.
Otherwise, it would be necessary to obtain from the customs authorities in the third country an appropriate document stating, for instance, the conditions under which the
consignment was stored there and the types of operation
which have been carried out on the goods.
Proof of origin
A ‘proof of origin’ needs to be presented at importation if
companies want to make use of preferential treatment under
either of the two Agreements. This proof may be a EUR 1
certificate issued by the customs authorities or the competent
authorities of the EU, Central America, Colombia or Peru or
an invoice declaration made out by the exporters for consignments of less than 6 000 Euros. An invoice declaration may
still be made out by approved exporters for consignments exceeding 6 000 Euros.
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Chapter 2
Non-tariff barriers to trade
Alongside tariffs, technical issues represent the single most
important barrier to international trade. Behind-the-border
issues, such as technical regulations, standards, and conformity assessment procedures can be a considerable burden
for exporters. The Agreements with Colombia and Peru and
Central America, respectively, contain a number of general commitments on technical barriers to trade - including
cooperation on standards and regulatory issues as well as
transparency and marking/labelling - that go beyond the
obligations contained in the WTO Agreement on Technical
Barriers to Trade.
The Agreement with Central America - as well as the Agreement with Colombia and Peru - sets the framework for stepping up bilateral cooperation between national and regional
authorities from both Parties dealing with technical regulations, standards metrology, accreditation and conformity
assessment procedures. This will increase mutual unders-
Simplified Labelling Requirements
Burdensome labelling provisions have been identified as one of the main non-tariff barrier in the textile and
footwear sector. Both Agreements contain labelling provisions that will considerably facilitate the marketing of
textiles, clothing and footwear products. The text foresees that only the most essential consumer information
is required in permanent labels (e.g. stitched labels). For instance, fibre composition, country of origin, safety
instructions for specific uses and care instructions will be required on permanent labels of clothing products.
Other information, such as the name of the importer or sizes will be provided by means of non-permanent labels
(e.g. stickers).
Other labelling provisions of a more horizontal nature, i.e. applicable to the generality of industrial products, are
also present. As an example, there is a commitment for the Parties to allow information in other languages in
addition to the language required in the country of destination of the goods (multi-language labels being allowed).
Producers will also be allowed to use international nomenclatures, pictograms, symbols or graphics. Therefore,
exporters will be able to design labels suitable for clients located in different continents. Owing to the Agreements,
it will also be possible for labelling and corrections to labelling to take place in the country of destination, prior to
the commercialisation of the goods and as an alternative to labelling in the country of origin. In this situation, the
importer will be able to add to the label before placing the product on the market. This is particularly interesting
for products exported in small quantities or where the final destination is not known at the time of production.
“…the Parties agree that, when a Party requires marking or labelling of textiles, clothing or footwear, the following
information alone may be required to be permanently marked:
□□ in the case of textiles and clothing: fibre content, country of origin, safety instructions for specific uses and care
instructions; and
□□ in the case of footwear: the predominant materials of the main parts, safety instructions for specific uses and
country of origin”.
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tanding of the Parties’ respective systems and, if possible,
progress towards convergence of their regulatory requirements. For that purpose the Parties may establish regulatory dialogues at both horizontal and sectoral levels and
organise joint actions. These may include:
□□
□□
□□
the exchange of information, expertise and data, on technical regulations, standards and conformity assessment
procedures;
scientific and technical co-operation with a view to improving the way technical regulations are developed, in terms
of transparency and consultation, in view of making an efficient use of regulatory resources;
exploring ways to facilitate trade between the Parties, notably by cooperating on simplifying technical requirements
and conformity assessment procedures;
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direct bilateral co-operation between non-governmental actors such as standard bodies, accreditators and
certifiers.
The Agreement with Colombia and Peru proposes certain additional steps that can be taken in order to facilitate trade between the Parties. In particular, in terms
of conformity assessment procedures the Parties commit to encourage their respective conformity assessment
bodies (CABs) to enter into private agreements in order
to subcontract part of the conformity assessment tasks
(e.g. testing) to the other Party’s CABs. Should those private agreements between CABs materialise, testing could
be carried out in the country of origin instead of in the
country of final destination of the product. Nevertheless,
the CAB of the country of final destination would remain
legally responsible for the conformity of the products and
for issuing the conformity assessment certificate.
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These systemic improvements will facilitate the free movement of goods and will have a positive impact on pharmaceutical exports but also on the sale of medical devices, optical instruments, automotive and other types of machinery
in which the EU is highly competitive.
Customs and Trade Facilitation
In the area of Customs and Trade Facilitation, the two
Agreements aim at facilitating trade by introducing specific commitments on modern and non-discriminatory customs legislation and procedures (including transit), based
on international standards and recent developments, as
well as transparency and the obligatory consultation of the
business community. At the same time both Agreements
provide for the resolving of any related problems within
the framework of the Sub-Committee on Customs, Trade
Facilitation and Rules of Origin.
The Agreement with Central America, in particular, contains
substantial commitments on regional economic integration and provides the basis for free circulation of goods
originating in the EU within Central America. The Agreement also provides for the effective single payment of customs duties for goods originating in the EU and eliminates
double payments of duties (establishing a mechanism of
reimbursement at internal borders) after a transitional period of 2 years from the entry into force of the Agreement.
Moreover, the Agreement establishes the use of a single
administrative document or electronic equivalent after 3
years and a commitment to harmonise customs legislation, procedures and customs related requirements at
Harmonization of technical regulations at the regional level in Central America
Another trade-facilitating aspect brought about by the Agreement with Central America relates to the harmonisation of technical
regulations. The Parties will formally undertake to develop regional technical regulations in order that a regional standard fully replaces all existing national standards, once it is adopted. Having recourse to common technical requirements in the geographical areas
concerned will relieve producers of the need to adapt their products to different markets. In fact, a uniform requirement means that
the same product will be suitable for different markets without undergoing product or design adaptations.
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of all EU Member States. This provides the building blocks
for addressing SPS questions relating to the application of
international standards.
import at regional level after 5 years. This will significantly
improve the conditions for EU exporters wanting to do business in Central America.
Sanitary and Phytosanitary Requirements
The Agreements will also create new opportunities for trade
between the EU and its Central American and Andean partner countries in animals and animal products, plant and
plant products and other food products, while maintaining
high levels of human, animal and plant health safety. The
Agreements contain specific commitments on import procedures, transparency and exchange of information, consultation and measures to promote the development of a common understanding on Sanitary and Phytosanitary (SPS)
international standards as well as ensuring equal treatment
A specific procedure for the approval of establishments
for products of animal origin - so called prelisting - is set
up, based on the trust between competent authorities of
countries of origin and destination. The objective is for the
six Central American countries as well as Colombia and Peru
to authorise new lists of European exporting establishments
- that have been transmitted by EU Member States and for
which sanitary guarantees are provided in advance - without
carrying out on-the-spot inspections of one establishment
at a time. This will bring greater speed and predictability to
the approval process, which will be of great help to European
agricultural producers.
Trade facilitation tools are also established such as the recognition of disease or pest-free areas. This should significantly increase predictability for European exporters and
mitigate the negative effects of measures which Central
American countries as well as Colombia and Peru could feel
compelled to take in the event of local outbreaks of certain
animal diseases in the EU. Alternative import measures can
also be agreed upon, in the event of specific difficulties in
complying with individual import requirements.
Promoting regional SPS standards in Central America
In the case of Central America, the Agreement will also promote regional economic integration in the SPS field. It includes a range of measures aimed at improving conditions to allow goods subjected to SPS requirements to move more freely in both regions as well as at promoting the harmonisation of SPS legislation and procedures. From the date of entry into force, all EU products exported to Central America will
benefit from regional transit facilitation within the region, i.e. those products will be inspected only at the Central American country of destination. Moreover, a maximum five years after entry into force of the Agreement, the SPS inspections for a limited list of EU priority products
entering into Central American territory will be performed in a random base at the entry point of the Central American country of destination.
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Chapter 3
Government Procurement
Government procurement represents 12 to 15 % of GDP
among OECD members and even more in emerging and
developing countries. Consequently, the transparency and
openness of procurement procedures are important. They allow public authorities to buy best value at the lowest prices
and are important tools to fight corruption. For businesses
operating internationally, they ensure equal access to foreign markets, where they can then compete with domestic
suppliers and service providers without being discriminated
against.
Neither Colombia, nor Peru, nor any of the six Central American countries are parties to the WTO Government Procurement Agreement (GPA). For this reason, no mutual commitments between the EU and any of these countries regarding
the transparency of procurement procedures existed, nor
were there any guarantees regarding mutual discriminationfree market access.
The trade pillar of the Association Agreement with Central
America and the Trade Agreement with Colombia and Peru
change this situation. From now on, European companies
wishing to participate in public procurement procedures in
these countries can rely on the procedural guarantees and the
market access commitments enshrined in the Government
Procurement Chapters of the two Agreements.
To a large extent, the procedural guarantees in both Agreements correspond to the international standards set out in
the GPA. The scope of the mutually guaranteed market access
varies according to the economic development and the willingness of each of the eight countries to commit. It is more narrow in the smaller and less developed countries (such as Nicaragua and Honduras), while it is widest in Peru and Colombia.
Indeed, the Agreement with the two Andean countries
contains mutual market access commitments of a scope
which is unprecedented for any trading partner outside Europe. It contains the full array of central and sub-central government authorities as well as many other entities, notably
in the utilities sector. It concerns all goods, all services relevant for trans-border procurement, and construction works.
Further information: Websites of procuring entities
Each of the eight countries has its own internet website dedicated to public procurement, where interested companies can find all
relevant information on tendering opportunities:
Peru: w
ww.seace.gob.pe and
www.proinversion.gob.pe
Colombia: www.contratos.gov.co
Panama: www.panamacompra.gob.pa
Costa Rica: www.gaceta.go.cr
Nicaragua: www.nicaraguacompra.gob.ni
Honduras: www.honducompras.gob.hn
El Salvador: www.comprasal.gob.sv
Guatemala: www.guatecompras.gt
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Chapter 4
Intellectual Property
The Trade Agreement between the EU and Colombia and
Peru as well as the Association Agreement between the
EU and Central America build upon the WTO TRIPS (traderelated aspects of intellectual property rights) Agreement.
The two Agreements each contain a separate chapter on
intellectual property rights which sets out a number of fundamental rules for the protection and enforcement of intellectual property rights in the respective Parties. The Agreements aim to ensure that right-holders in the Parties benefit
from an adequate level of protection for their intellectual
property rights and have effective means available to enforce these rights through civil, administrative and border
measures and procedures.
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The protection of intellectual property is crucial to stimulate
innovation, ensure competitiveness and bolster growth in the
economies of both the EU and its Latin American trading
partners’ in the context of a rapidly changing global economic environment. To this end, the Agreement with Central
America, for instance, establishes mechanisms for the promotion of cooperation and technology transfer to the benefit
of the Central American Parties.
The Agreement with Colombia and Peru contains rules on
the protection of authors, performers, producers of phonograms or films and broadcasting organizations. It provides
that protection applies for 70 years after the author’s death
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and sets out the right to a single equitable remuneration for
performers and producers of phonograms. It also provides
for cooperation between the Parties on collective management of intellectual property rights. Similarly, the Agreement
between the EU and Central America sets out minimum
standards for the protection of intellectual property such as
the protection of authors’ works for 70 years following the
death of the author and the right to a single equitable remuneration for performers and producers of music records.
To encourage business activity, the Agreements establish
rules for the registration of trademarks in Colombia, Peru
and Central America respectively - such as the possibility to
oppose a trademark application or to contest a refusal for
registration. In the Agreement with Colombia and Peru there
are additional rules related to the registration requirements
and rights conferred on the holders of design rights (a right
often used by small textile producers). The Agreement with
Central America contains equivalent rules concerning registration requirements and rights conferred on the holders of
registered and unregistered industrial designs.
Moreover, the Agreement with Colombia and Peru establishes measures regulating the liability of intermediate
service providers.
Finally, the two Agreements each foresee the implementation of a set of measures to ensure effective enforcement of
intellectual property rights. Enforcement measures include
minimum rules on civil and administrative proceedings and
remedies and, in some cases, criminal procedures and sanctions. The Agreements also foresee that measures can be
taken at the border upon request or on the initiative of the
authorities in case of suspicion that goods infringing intellectual property rights are being imported or exported.
Regular dialogue will take place between the EU and Colombia and Peru to monitor the implementation of the provisions related to intellectual property rights. The EU and the
Central American countries will also engage in regular dialogue to oversee the implementation of the Agreement, in
particular as regards the provisions concerning GIs and the
steps taken to promote technology transfer.
The Agreement with Colombia and Peru aims to facilitate
registration and ensure full protection of EU and Colombian
and Peruvian geographical indications (GIs) on the territory
of the Parties. The Central American countries will also introduce or improve domestic legislation on protection of
GIs. A number of EU and Central American GIs will enjoy a
high level of protection in their respective markets to the
benefit of the respective producers and consumers. Effective protection of GIs can substantially contribute to the development of rural communities as well as to high quality,
value-added agriculture.
The Agreements will establish high levels of
protection for European GIs, such as:
□□
Champagne, Grappa, Irish and Scotch whisk(e)y, Ouzo
□□
Münchener Bier
□□
Prosciutto di Parma, Jambon de Bayonne
□□
Roquefort , Parmiggiano Reggiano, Feta
□□
Vinho Verde and Tokaj wines as well as wines from the Bordeaux, Rioja, and many other regions
The Agreement with Colombia and Peru protects from disclosure and other unfair use test data of both pharmaceutical products and pesticides for, respectively, 5 and 10 years.
Both Agreements also underline the importance of promoting access to medicines and protecting biological diversity
and traditional knowledge, and provide for active cooperation between the respective Parties in this field.
14
The
EU
Trade
Agreements
with
Colombia
&
Peru
and with
Central
America
Chapter 5
Services
The Agreements create opportunities for European service
suppliers to invest in the growing Colombian and Peruvian
as well as Central American markets and to benefit from the
growing demand of services imports. The Agreements also
provide the legal certainty necessary for harnessing these
opportunities by guaranteeing market access in numerous
sectors of interest to European companies and equal treatment vis-à-vis local competitors.
stronger – guarantees than those previously obtained from
Colombia and Peru by other countries. The Agreement provides for the freedom to establish in almost all services and
non-services sectors. It is the first time that Colombia and
Peru have chosen to include non-services sectors such as
manufacturing, agriculture and mining in a trade agreement.
These commitments on establishment are accompanied by
commitments on the temporary entry of key personnel.
Colombia and Peru
For services, the Agreement with Colombia and Peru covers
a wide range of sectors, including telecommunications, maritime transport, banking and insurance, distribution, environmental, engineering and other professional services.
Through its broad sectoral coverage and deep market access
commitments, the Agreement with Colombia and Peru provides EU companies with the same – and sometimes even
The
EU
Trade
Agreements
with
Colombia
&
Peru
and with
Central
America
15
Examples of benefits in services for European
operators in Colombia and Peru
Example of benefits in services for European
operators in Central America
□□
EU financial service suppliers will have the right to operate in
a broader range of financial services.
□□
In telecommunication, Colombia has relaxed conditions for
market access, in particular by eliminating foreign equity limitations and allowing full foreign ownership. In addition, EU
satellite operators will be able to supply telephone and TV
services directly cross-border.
□□
Companies in the broad field of transport and logistics – from
shipping firms to retailers to providers of express delivery services – will benefit from secure access and non-discrimination commitments for their operations.
□□
There will be new opportunities in airport operation and other
auxiliary services to air transport.
□□
Regulatory provisions underpin market access commitments
and include specific provisions in telecommunications, postal
and courier, and financial services.
□□
The Agreement also includes provisions on electronic commerce which improve legal certainty in this fast-growing area
of economic transactions.
Central America
The broad services commitments (in e.g. business, engineering, telecommunication, construction, distribution, banking
and insurance and transport services) obtained from all Central American countries largely capture their autonomous level of liberalisation and grant the EU investors and service
suppliers effective parity with the treatment granted by the
Central American countries to their other key trading partners.
This treatment was obtained especially in areas such as market access in non-services sectors (with specific commitments
by Panama and Honduras, and a unilateral MFN clause granting the EU any market access granted by Costa Rica, El Salvador, Guatemala and Nicaragua to third countries in future
agreements). It was also obtained through commitments in
telecom services and maritime services as well as in other
transport services.
□□
Regulatory provisions strengthen market access commitments and include specific provisions on mutual recognition,
telecommunications, courier, financial and international maritime transport services.
□□
The Agreement includes also provisions on electronic commerce which improve legal certainty in this fast-growing area
of economic transactions.
□□
The Agreement also regulates current payments and capital
movements between the parties by means of the separate
capital movement title.
□□
New business opportunities for European companies will arise
with respect to a large number of other business services
commitments (advertising, technical testing, placement services, maintenance and repair services, translation etc.) as well
as of transport auxiliary services (especially in air transport).
□□
EU computer services providers will be able to establish and
operate on a cross border basis.
□□
EU providers of international express delivery services will
have access to the market and EU postal services suppliers
will have access to the market in Guatemala.
□□
In telecommunication, conditions for market access were relaxed and in addition, EU satellite operators will be able to
supply telephone and TV services directly cross-border.
□□
EU financial service suppliers will have the right to operate
in a wider range of financial services and branching will be
allowed.
□□
EU travel agencies and tour operators will be able to establish in Costa Rica and hotel services providers will be able to
establish in Panama.
□□
EU services providers in the field of transport will benefit from
market access commitments and right of establishment.
Finally, the two Agreements also provide for the freedom
to supply services on a cross-border basis, e.g. via the internet. Where technically feasible, this can be particularly
interesting for SMEs for whom establishing themselves in
Colombia, Peru or the six Central American countries might
be too costly.
Moreover, the agreement covers market access commitments
for key personnel; graduate trainees (Honduras, Costa Rica,
Panama and Guatemala) as well as for Business Service
Sellers (Honduras, Costa Rica, Panama, Guatemala and Nicaragua). This is an important interest for the EU, as it complements the market access and national treatment commitments obtained on market access and national treatment for
EU investments in services and non-services sectors.
16
The
EU
Trade
Agreements
with
Colombia
&
Peru
and with
Central
America
Chapter 6
Institutional framework,
contact points & online resources
An institutional structure for coordination and
cooperation
where meetings will take place annually and at the ministerial
level. A significant number of sectoral sub-committees will
monitor the implementation of the Agreement.
The trade pillar of the Association Agreement with Central
America is embedded in the wider institutional framework of
the Association Agreement, which foresees the creation of an
Association Council, where Parties will be represented at the
ministerial level, and an Association Committee. Furthermore,
the Agreement sets up a number of specialised sub-committees responsible for the different trade areas covered in
the trade part of the Association Agreement. The Trade Agreement with Colombia and Peru foresees a Trade Committee,
These institutional structures will create a framework for
regular meeting that will allow each Party to address trade
barriers and coordinate positions on technical matters. It will
provide Parties with an opportunity to engage in closer regulatory cooperation and to adapt the mechanisms of the
Agreements to changing realities, and solve any dispute at
an early stage before it escalates.
The
EU
Trade
Agreements
with
Colombia
&
Peru
and with
Central
America
17
Trade Agreement with Colombia and Peru:
Specialised Sub-Committees
Association Agreement with Central America:
Specialised Sub-Committees in the trade pillar
□□
Market Access
□□
Market Access for Goods
□□
Agriculture
□□
Customs, Trade Facilitation, Rules of Origin
□□
Technical Obstacles to Trade
□□
Technical Barriers to Trade
□□
Customs, Trade Facilitation, Rules of Origin
□□
Sanitary and Phytosanitary Measures
□□
Government Procurement
□□
Intellectual Property
□□
Trade and Sustainable Development
□□
Board on Trade and Sustainable Development
□□
Sanitary and Phytosanitary Measures
□□
Intellectual Property
18
The
EU
Trade
Agreements
with
Colombia
&
Peru
and with
Central
America
Dispute Settlement
Both Agreements provide for an efficient and streamlined
dispute settlement system that will function in accordance
with basic principles such as transparency (open hearings
and amicus curiae briefs) and sequencing (no right to impose
retaliation until such time as non-compliance is verified).
This system is intended as a last resort should Parties fail to
resolve disagreements relating to the interpretation and implementation of the Agreement’s commercial provisions by
other means. Once a case has been filed, it proceeds along a
fixed set of procedures and time-frames. Should Parties fail
to reach an agreement through formal consultations, they
can request the establishment of an arbitration panel, made
up of independent legal experts.
The
EU
Trade
Agreements
with
Colombia
In addition, the Agreements each include a mediation mechanism for non-tariff barriers to trade in goods. Impartial
mediators with expertise in the issues at hand will assist
Parties in their efforts to a reach a mutually agreed solution
to their differences.
&
Peru
and with
Central
America
19
Online tools
How to export to Colombia, Peru and Central
America?
How to import from Colombia, Peru and
Central America?
The Market Access Database
The Export Helpdesk
The Market Access Database is a free, web-based service
that provides European companies with information on
export conditions to more than 100 countries. European exporters will have access to substantial amounts of practical information that will help them do business with Central
America, Colombia or Peru. This includes wide-ranging and
up-to-date information on: applied tariffs, internal taxes and
import facilities, such as customs procedures, packaging,
marking and labelling requirements, as well as technical regulations and standards.
The European Commission launched the Export Helpdesk
(EH) in 2004 to inform business in developing countries on
how to export to the EU. Since then, not only Latin American
business but also European business has used the Export
Helpdesk as their one-stop-shop to find all necessary information to import from Latin America to the EU.
This free online service provides EU importers, trade associations and governments with updated information on:
□□
To access information on the preferential tariff rates available
for any given product, select the relevant country of destination in the ‘Applied Tariff Database’ and enter the product
code(s). It is also possible to search the complete tariff nomenclature in the English language for product descriptions
to identify product codes. You will also have access to further
information, including current internal taxation measures in
the Central American countries, Colombia or Peru. The Market
Access Database also fully reflects that the Agreements will
remove many non-tariff barriers. The ‘Exporter’s Guide to
import facilities’ provides detailed information on import
procedures and gives an overview of the documents required for imports. The section contains information on general
requirements applicable to all goods as well as a range of
product-specific requirements.
More information, including a detailed step-by-step userguide available in all EU languages, can be found on the
website: madb.europa.eu.
□□
□□
□□
□□
□□
□□
the requirements you have to fulfil and the documents you
need in order to import from Colombia, Peru and Central
America to the EU (including SPS, technical standards and
labelling);
the applied import tariffs for a given product or country;
the quotas or antidumping measures applying to a given
product;
the preferential agreement applying to each product or
country;
the rules of origin per product that will apply under the
Agreements (including cumulation and derogations) and
the relevant documents you will need to supply;
statistics on EU-Latin American trade flows as well as product-specific figures;
a contact service to reply to your specific questions.
This information, available for free and online, is constantly
updated and translated in order to provide you with the latest figures and regulations in English, French, Spanish and
Portuguese, amongst other languages. Moreover, a main advantage of the EH is its search functionality. It allows you to
search for product- or country-specific information, giving
you access to the targeted information you need for your
specific case.
More information can be found online:
exporthelp.europa.eu.
20
The
EU
Trade
Agreements
with
Colombia
&
Peru
and with
Central
America
European Commission
The EU Trade Agreements with Colombia & Peru and with Central America
Luxembourg: Publications Office of the European Union
2012 — 20 pp. — 21 x 29,7 cm
ISBN 978-92-79-23567-2
doi:10.2781/41420
HOW TO OBTAIN EU PUBLICATIONS
Free publications:
• via EU Bookshop (http://bookshop.europa.eu);
• at the European Commission’s representations or delegations. You can obtain their contact
details on the Internet (http://ec.europa.eu) or by sending a fax to +352 2929-42758.
Priced publications:
• via EU Bookshop (http://bookshop.europa.eu).
Priced subscriptions (e.g. annual series of the Official Journal of the European Union
and reports of cases before the Court of Justice of the European Union):
• via one of the sales agents of the Publications Office of the European Union
(http://publications.europa.eu/others/agents/index_en.htm).
NG-31-12-610-EN-C
doi:10.2781/41420
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The EU Trade Agreements with Colombia & Peru