WT/REG463/2  
 
15 September  2023 
(23-5992) Page: 1/4 
Committee on Regional Trade Agreements  Original: English /Spanish  
 
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE EFTA STATES 
AND ECUADO R (GOODS AND SERVICES)  
QUESTIONS AND REPLIES  
The following communication, dated 15 September  2023, is being circulated at the request of the 
delegations of  the EFTA States (Iceland, Liechtenstein, Norway and Switzerland)  and Ecuador . 
 
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Questions from Argentina  
 
Rules of origin  
 
1.1.  Paragraph 3.18: "In addition to bilateral cumulation, diagonal cumulation is 
authorized with Ecuador's Andean Community partners, Colombia and Peru."  
 Does Ecuador believe that the diagonal cumulation provided for in the Agreement 
has helped to stimulate trade with its partners in the Andean  Commu nity?  
Joint from the Parties  
 
 Ecuador can mention the following points as an experience of applying diagonal cumulation 
with its partners in the Andean Community:  
 
 It is considered that, with diagonal cumulation it has been possible to stimulate intrareg ional 
trade with the Andean Community countries; since by importing inputs from Colombia and Peru with 
tariff preferences to incorporate said inputs into the final export product, it has helped to the 
products made or processed in our country to comply wit h the rules of origin stipulated in the CEPA 
with European Free Trade Association (EFTA) countries.  
 
 Another benefit of applying diagonal cumulation is that operating costs can be reduced in the 
production of final goods for export; by importing inputs o riginating and with tariff preferences from 
the Andean Community, makes the final product more competitive with respect to its main 
competitors.  
 
 This question does not concern the EFTA States.  
 
Sanitary and Phytosanitary Measures  
 
1.2.  Paragraph 3.24.  "Additional substantive SPS disciplines (Article 2.12) include:  
… c. upon request, to negotiate the extension to each other of SPS treatment 
equivalent to that in force between each Party and the European Union.  A footnote 
clarifies that "equivalent" is not  to be understood as "equivalence";"  
 
 Has any Party sought to negotiate this type of extension of reciprocal treatment 
while the Agreement has been in force?  
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  Joint response from the Parties  
 
 No Party has sought to negotiate extensions of reciprocal tre atment since the Agreement has 
entered into force.  
Question s from the European Union  
 
Tariff rate quotas  
 
1.3.  The factual presentation of the CEPA EFTA -Ecuador  refers in Chapter 3.1.4 (p age 12) 
on TRQs to a price band system by Ecuador (the corresponding footnote does not contain 
additional information), to which 5 out of the 6 tariff lines included in a TRQ a subject.  
 What type of price band system does Ecuador operate? What’s the price band 
applied?  
Joint response from the Parties  
 
 Ecuador maintains the mechanism of the Andean Price Band System (APBS), adopted by 
Decision 371 of the Andean Community, included in the Comprehensive Economic Partnership 
Agreement between the EFTA States and Ecuador in Article 2.9 of the Market Access ch apter; as 
well as in the Multiparty Agreement between the European Union and the Andean Countries under 
Article 30, subparagraph (a).1  
 
This question does not concern the EFTA States.  
 
Sanitary and phytosanitary measures  
 
1.4.  The EU would like to ask for a c larification concerning the following provision in the 
SPS part (page 13): 3.24.b."Prohibition on goods subject to random and routine checks 
being detained at the border pending test results."  
Our interpretation of this provision is that Ecuador and EFTA h ave agreed to allow 
the entry of products into their territories while the results of tests, which are carried out 
at the border control posts, are still pending.  
 In light of the fact that some EFTA countries are acting as an EU border for veterinary 
controls, the EU would like to ask about the scope of this provision, how it will be 
implemented, and what measures are planned by the EFTA countries to avoid that these 
products enter the EU market in case of unfavourable results of the tests.  
Joint response from the Parties  
 
Iceland and Norway (the EEA EFTA States) are bound by the EEA Agreement, whereby SPS 
rules of the EU apply to imports from third countries. Due to its customs union with Switzerland, 
Liechtenstein applies the veterinary provisions laid down in the Swiss -EU Agreement on trade in 
agricultural products. The EEA Agreement has a dynamic character and common rules are 
continuously updated. It does not include the EU Common Agricultural Policy and the Common 
Fisheries Policy.  
 
 As regards products of animal origin, they have to go through a Border Control Post (BCP) 
where veterinary checks take place. Veterinary checks only occur during the first entry into the 
EU/EFTA area. Once consignments have been cleared by a BCP the goods are released for free 
circulation within the EU/EFTA area. Apart from Liechtenstein, all EFTA states have BCPs at the 
external border which check products of animal origin that are going to enter the EU/EFTA market. 
For Switzerland, third country veterinar y import products are only controlled at Zurich and Geneva 
airports, since Switzerland is surrounded by the EU.  
 
 
1 Note by the Secretariat : Additional information on the price band system can be found in the Factual 
Presentation (WT/REG463/1), paragraphs 3.10 and 3.12, Chart 3.4, paragraph 6 of Annex 1 and Annex 2 on 
TRQs.  WT/REG463/2  
 
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   This question does not concern Ecuador.  
 
Intellectual property rights  
 
1.5.  The document also refers in Chapter 5.9 (p age 37) to IPR provisions in the 
Agreement, however, nothing is said about geographical indications.  
 Does the agreement contain any provisions regarding the protection of geographical 
indications be it through the Agreement or be it by reference to the Lisbo n Agreement 
(Geneva act) of WIPO or any other multi -lateral instrument or domestic protection 
system?  
Joint response from the Parties  
 
Yes, the Agreement contains an article on the protection of geographical indications in Article 
8 of Annex XVI on Protect ion of Intellectual Property. This Article defines geographical indications, 
ensures their adequate protection, and commits the Parties to provide the legal means to prevent 
the use of a geographical indication for agricultural products and foodstuffs for identical or 
comparable products not originating in the indicated geographical area.  
 
 While not in a geographical indication specific context, the Parties reaffirm their obligations 
set out in the TRIPS Agreement. The Agreement does not reference the Lisb on Agreement (Geneva 
Act) of WIPO.2  
 
Questions from the United K ingdom  
 
Denial of Benefits  
 
1.6.  Paragraph 4.5 : Could the Parties please explain why the Agreement does not contain 
a specific provision on denial of benefits?  
Joint response from the Parties  
The Parties consider this aspect is sufficiently covered by the exception clauses, thus, no such 
clause was necessary.  
 
Liberalisation commitments  
 
1.7.  Paragraph 4.16:  
a. Could the Parties please explain why a positive list approach was pursued?  
b. Could the Parties please explain why the periodic review has not taken place yet? 
When do the Parties anticipate to undertake it?  
Joint response from the Parties  
 
a. a positive list approach has been adopted as this was the approach agreed upon by the 
Parties  during the negotiation. Furthermore, EFTA indicates that it is its general practice 
to use a positive list approach for services commitments.  
b. regular reviews of commitments take place during Joint Committee meetings. The first 
Joint Committee meeting bet ween EFTA and Ecuador was held on 14 December 2021. The 
review of services commitments was part of the agenda of the meeting, and the Parties 
concluded that no changes are warranted for the time being. The periodic review specified 
by the review clause is to be carried out every three years and the Parties consider that a 
periodic review was completed during the first Joint Committee.  
 
 
2 Note by the Secretariat : Paragraph 5.26 of the Factual Presentation refers to geographical indications.  WT/REG463/2  
 
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  Domestic regulation  
 
1.8.  Paragraph 4.85: The paragraph states that as of June 2023, Ecuador was not a party 
to the Joint Statem ent Initiative at the WTO.  
 Could Ecuador please explain if it has any plans to join the initiative?  
 
Joint r esponse from the Parties  
 
 Although Ecuador is not currently part of the Joint Statement Initiative at the WTO, it is 
important to note that the required procedures are being carried out internally to assess the 
feasibility of Ecuador's participation in this Initiative.  
 This question does not concern the EFTA States.  
Other provisions on investment  
 
1.9.  Paragraph 4.92: The paragraph states that a review clause foresees periodical 
reviews of Chapter 4 in the Joint Committee.  
 Could the Parties please explain how frequent the reviews are intended to be, and 
will minutes be published?  
 
Joint response from the Parties  
 The review takes place during the Joint Committee meetings, which are usually held every 
two years. The minutes of Joint Committee meetings are not public ; however, a Joint Statement 
agreed between the Parties describing the most relevant issues is issued at t he conclusion of the 
Joint Committee meeting.  
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