WT/REG377/1  
7 June 2019  
(19-3945) Page: 1/92 
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
PACIFIC ALLIANCE – ADDITIONAL  PROTOCOL TO THE FRA MEWORK AGREEMENT  
(GOODS AND SERVICES)  
Report by the Secretariat  
This report, prepared for the consideration of the Pacific Alliance – Additional Protocol 
to the Framework Agreement between Colombia, Chile, Mexico and Peru, has been 
drawn up by the WTO Secretariat on its own responsibility and in full consultation with 
the Parties. The factual presentation reproduces as  closely as possible the terminology 
used in the Protocol  and in the comments provided and does not imply official 
endorsement or acceptance by the Secretariat of such terminology. The report has been 
drawn up in accordance with the rules and procedures co ntained in the Decision for a 
Transparency Mechanism for Regional Trade Agreements (WT/L/671) and thus does not 
imply any value judgement by the Secretariat regarding the contents of the Protocol . 
Any technical questions arising from this report may be add ressed to Maria Donner 
Abreu (tel: +41 22 739 5244). Any statistical questions arising from this report may be 
addressed to Mr. Thakur Parajuli (tel: +41 22 739 5473).  
  WT/REG377/1  
 
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  TABLE OF CONTENTS  
Page 
1   TRADE E NVIRONMENT  ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 4 
1.2   Trade in services and investment  ................................ ................................ ................. 11 
2   CHARACTERISTIC E LEMENTS OF THE PROTO COL ................................ ......................  15 
2.1   Background Information  ................................ ................................ .............................. 15 
3   PROVISIONS ON TR ADE IN GOODS  ................................ ................................ ...........  18 
3.1   Import duties and charges, and quantitative restrictions ................................ .................. 18 
3.1.1    General provisions  ................................ ................................ ................................ ...18 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ......... 19 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 21 
3.1.3.1    Chile ................................ ................................ ................................ ................... 21 
3.1.3.2    Colombia  ................................ ................................ ................................ ............. 24 
3.1.3.3    Mexico  ................................ ................................ ................................ ................. 27 
3.1.3.4    Peru ................................ ................................ ................................ .................... 30 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....33 
3.2   Rules of origin  ................................ ................................ ................................ ............ 33 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 35 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ........ 35 
3.4.1    Standards  ................................ ................................ ................................ ............... 35 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......35 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 36 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 37 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................ .37 
3.4.4    Subsidies and State -aid ................................ ................................ ............................ 37 
3.4.5    Customs -related procedures ................................ ................................ ...................... 38 
3.4.5.1    Granting of preferential treatment  ................................ ................................ ........... 38 
3.4.5.2    Trade facilitation  ................................ ................................ ................................ ...39 
3.4.5.3    Customs cooperation and mutual assistance in customs matters  ................................ .39 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ ...39 
3.5.1    Agriculture  ................................ ................................ ................................ .............. 39 
3.5.2    Cosmetics  ................................ ................................ ................................ ............... 40 
4   PROVISIONS ON TR ADE IN SERVICES  ................................ ................................ ....... 40 
4.1   Scope and definitions  ................................ ................................ ................................ ..40 
4.2   Denial of benefits  ................................ ................................ ................................ .......42 
4.3   General provisions on trade in services  ................................ ................................ ......... 42 
4.3.1    Market access  ................................ ................................ ................................ ......... 42 
4.3.2    National treatment and MFN  ................................ ................................ ...................... 42 
4.3.3    Local presence  ................................ ................................ ................................ ........ 43 
4.3.4    Movement of natural persons  ................................ ................................ .................... 43 WT/REG377/1  
 
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  4.3.5    Performance requirements  ................................ ................................ ........................ 43 
4.3.6    Senior managers and board of directors  ................................ ................................ .....44 
4.3.7    Other investment -related provisions ................................ ................................ ........... 44 
4.4   Liberalization commitments  ................................ ................................ ......................... 45 
4.4.1    Services liberalization under existing RTAs among the Parties  ................................ .......45 
4.4.2    Chile ................................ ................................ ................................ ...................... 46 
4.4.2.1    Sector -specific commitments  ................................ ................................ .................. 47 
4.4.3    Colombia  ................................ ................................ ................................ ................ 50 
4.4.3.1    Sector -specific commitments  ................................ ................................ .................. 50 
4.4.4    Mexico ................................ ................................ ................................ .................... 54 
4.4.4.1    Sector -specific commitments  ................................ ................................ .................. 54 
4.4.5    Peru ................................ ................................ ................................ ....................... 58 
4.4.5.1    Sector -specific commitments  ................................ ................................ .................. 59 
4.5   Regulatory provisions  ................................ ................................ ................................ ..62 
4.5.1    Domestic regulation  ................................ ................................ ................................ .62 
4.5.2    Recognition  ................................ ................................ ................................ ............. 62 
4.5.3    Subsidies  ................................ ................................ ................................ ................ 62 
4.5.4    Safeguards  ................................ ................................ ................................ ............. 62 
4.6   Sector specific provisions on trade in services  ................................ ................................ 62 
4.6.1    Financial services  ................................ ................................ ................................ .....62 
4.6.2    Maritime Transport Services  ................................ ................................ ...................... 64 
4.6.3    Telecommunications services  ................................ ................................ .................... 64 
5   GENERAL PROVISIO NS OF THE PROTOCOL ................................ ................................  65 
5.1   Transparency  ................................ ................................ ................................ ............. 65 
5.2   Current payments and capital movements  ................................ ................................ .....65 
5.3   Exceptions  ................................ ................................ ................................ ................. 66 
5.3.1    Balance -of-payments safeguard provisions  ................................ ................................ .66 
5.4   Accession and Withdrawal ................................ ................................ ............................ 67 
5.5   Institutional framework  ................................ ................................ ............................... 67 
5.6   Dispute settlement  ................................ ................................ ................................ .....68 
5.7   Relationship with other agreements concluded by the Parties  ................................ ........... 72 
5.8   Government procurement  ................................ ................................ ............................ 76 
5.9   Intellectual property rights  ................................ ................................ .......................... 77 
5.10   Electronic commerce  ................................ ................................ ................................ .77 
5.11   Regulatory practice  ................................ ................................ ................................ ...78 
ANNEX 1 ................................ ................................ ................................ ........................  79 
ANNEX 2  ................................ ................................ ................................ ........................  92 
  WT/REG377/1  
 
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  Key Facts  
 
Parties to the Protocol : Colombia, Chile, Mexico and Peru  
 
Date of Signature:  10 February 2014   
 
Date of Entry into Force:  1 May 2016  
 
Date of Notification:    3 November 2016  
 
Full implementation:   1 January 2030  
 
 
1  TRADE ENVIRONMENT  
1.1.  The four economies  of the Pacific Alliance  are of considerably different sizes and have different 
trade profiles. In 2016, Chile's GDP was estimated at USD 247,025 million, and it ranked 27th among 
both global exporters and importers of goods (excluding intra -EU trade), res pectively. In the same 
year, Colombia had a GDP of USD 282,357  million; it ranked 39th as regards global exports and 33rd 
for global  imports. Mexico's GDP accounted for USD 1,046 billion in 2016; its global ranking was 8th 
for both merchandise exports and imports. Finally, Peru's GDP was estimated at USD 195,140 
million, in the same year; it ranked 33rd and 39th for global exports and imports, respectively. In 
2016, Chile's world exports reached USD 59.9 billion and imports USD 58.8 billion, and Colombia's 
merchandise exports and imports reached USD 31 billion and USD 44.9 billion, respectively. Also in 
2016, Mexico's exports were estimated at USD 373.9 billion and imports at USD 397.5 billion; while 
Peru's imports and exports accounted for USD 36.8 billion and USD 36.3 billion, respectively.1 
1.2.  Chile's global exports are dominated by base metals and minerals while machinery and 
minerals constitute the bulk of its imports. Minerals also dominate exports of both Colombia and 
Peru, while their imports are concentrated in machinery. Mexico's global e xports and imports are 
also overwhelmingly  dominated by machinery.  
1.3.  In 2016, Chile ranked 38th and 32nd among global exporters and importers of commercial 
services; with exports valued at USD 9.6 billion and imports at USD 13 billion; while Colombia ranked 
41st and 39th among global exporters and importers of commercial services with the value of services 
exports and imports reaching respectively USD 7,701 million and USD 10,659 million. In the same 
year, Mexico was the world's 23rd largest source of imports  and 22nd largest destination for exports; 
with the value of exports estimated at USD 24 billion and imports at USD 29.5 billion. Finally, Peru 
ranked 44th and 45th among global exporters and importers of commercial services, with exports 
valued at USD 6,146 million and imports at USD 7,787 million.  
1.1  Merchandise trade2 
Table 1.1 Trade ranking within the Pacific Alliance, 2016  
Country  Trade ranking within the Pacific Alliance  
Exports  Imports  
Chile  Peru 7th - Mexico 10th – Colombia 13th  Mexico 6th – Peru 9th – Colombia 11th  
Colombia  Peru 6th – Mexico 8th – Chile 10th  Mexico 4th - Chile 12th – Peru 13th  
Mexico  Colombia 6th – Chile 10th - Peru 13th  Chile 15th – Colombia 20th - Peru 25th  
Peru   Chile 9th – Colombia 11th - Mexico 15th  Mexico 5th – Colombia 7th - Chile 8th  
Source:  UNSD, Comtrade database.  
                                                
1 All trade statistics from WTO trade profiles 2017. Viewed at: 
https://www.wto.org/english/res_e/booksp_e/trade_profiles17_e.pdf  
2 Comtrade, UNSD. Excludes intra -EU trade.  WT/REG377/1  
 
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  1.4.  Chart 1.1 shows the trends in Chile's global and bilateral trade with the parties for the 2001 -
2016 period. Chile's exports to the world rose steadil y from USD 17.4 billion in 2002 to more than 
USD 81.4 billion in 2011 – the major exception being a sharp decline in 2008 -2009 due to the world 
economic crisis. Since 2012 exports declined progressively due to a global slowdown, reaching 
USD 60.7 billion i n 2016. Chile has run a consistent global surplus since 2001 – with the exception 
of 2012 -2013 when it was a net importer. Chile has experienced a trade surplus with Colombia  in 
the first part of the period (between 2001 and 2006), then reversed the trend since 2007, with 
imports rising to USD 2.2 billion in 2011. Chile's evolution of its bilateral trade with Mexico followed 
a similar trend. As regards its bilateral trade with Peru, Chile was largely a net exporter throughout 
the entire period except for 20 05-2008 and 2011 -2012.  
Chart 1.1 Chile: Merchandise trade with world and Pacific Alliance parties, 2001 -2016  
 
Source:  UNSD, Comtrade database.  
 
1.5.  Trends in Colombia's global and bilateral trade with the Parties  during the 2001 -2016 period 
are depicted in Chart 1.2. Colombia experienced a trade deficit with the world generally through the 
entire period, with the exception of 2011 -2012. With respect to its bilateral trade with the Parties, 
Colombia has run both a trade deficit (2001 -2007 and 2015 -2016) and a surplus (2008 -2014) with 
Chile. As regards its bilateral trade with Mexico, Colombia has persistently remained a net importer 
of merchandise goods, with imports peaking at USD 6.4 billion in 2012; in contrast, with respect to 
its bilateral trade with Peru, Colombia has run a trade surplus through the entire period except 2014, 
reaching a peak of USD 670 million in 2012.  
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  Chart 1.2 Colombia: Merchandise trade with world and Pacific Alliance parties, 2001 -
2016  
 
Source:  UNSD, Comtrade database.  
 
1.6.  Chart 1.3 depicts trends in Mexico's global trade and bilateral trade with other Pacific Alliance 
Parties. Throughout the entire 2001 -2016 pe riod, Mexico was a net importer of merchandise, with 
imports reaching USD 387.1 billion in 2016. It had a trade deficit with Chile until 2011, with the 
trend reversed since 2012. Throughout the same period, Mexico was generally a net exporter of 
merchandis e to both Colombia and Peru – except in 2004 with Colombia and in 2004 -2005 for trade 
with Peru.  
Chart 1.3 Mexico: Merchandise trade with world and Pacific Alliance parties, 2001 -2016  
 
Source:  UNSD, Comtrade database.  
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  1.7.  Trends in global and bilateral trade between Peru and other Pacific Alliance Parties during 2001 -
201 are depicted in Chart 1.4. Since 2002, Peru has run a trade surplus with the world, reaching a  
peak of USD 8.5 billion in 2011; the trend was rev ersed as in 2012 -2015 but a surplus was again 
registered in 2016. Throughout the entire period, Peru has run a trade deficit with both Colombia 
and Mexico. In contrast, Peru was a net exporter  to Chile  for most of the period analysed (except in 
2009); this  trend was however reversed in 2015 and 2016.  
Chart 1.4 Peru: Merchandise trade with world and Pacific Alliance parties, 2001 -2016  
 
Source:  UNSD, Comtrade database.  
 
1.8.  Charts 1.5–1.8 depict the Parties' commod ity structure of trade, as well as their imports and 
exports to the world in the 2013 -2015 period, on the basis of the Harmonized System (HS) sections.  
1.9.  More than half of Chile's imports from Colombia were represented by minerals (59%); while 
its imports fr om Mexico were more diversified - machinery accounted for 38%, followed by vehicles 
and chemicals with 19% and 15%, respectively. Chile's imports from Peru were largely concentrated 
in minerals (42%) with chemicals and prepared food amounting to 13% and 10 %, respectively. The 
country's main imports from the world are comprised of machinery (28%), minerals (21%) and 
vehicles (14%); its exports – of base metals (30%), minerals (21%) and vegetables (9%).  
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  Chart 1.5 Chile -Pacific Alliance: Product composition of merchandise trade, annual 
average (2013 -2015)  
 
 
Source:  UNSD Comtrade database.  
 
1.10.   Colombia's main imports from Chile were largely concentrated in vegetables (20%), prepared 
food (19%) and base metals (12%); its imports from Mexico were dominated by machinery (29%), 
vehicles ( 24%) and base metals (12%). While from Peru, Colombia  imported base metals (22%), 
minerals (18%) and plastics (14%). Its global imports  were dominated by machinery (23%), 
chemicals (14%) and vehicles (14%), in contrast, almost two thirds (63%) of the exports were 
represented by minerals.  
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9773322224Chile's imports from Colombia (%)
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1915765425Chile's Imports from Mexico (%)
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13105554333223Chile's imports from Peru (%)
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1496654222224Chile's Global Imports (%)
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27986543225Chile's Global Exports (%)Total: USD 1,239 million Total: USD 2,382 million
Total: USD 72,228 millionTotal:  USD 1,466 million
Total: USD 71,518 million
WT/REG377/1  
 
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  Chart 1.6 Colombia -Pacific Alliance: Product composition of merchandise trade, annual 
average (2013 -2015)  
 
Source:  UNSD Comtrade database.  
 
1.11.   Mexico's main imports from Chile were concentrated in wood (18%), animal production 
(16%), and vegetables (14%); while imports from Colombia were represented by vehicles (18%), 
chemicals (16%) and plastics (14%). Almost two thirds of Mexico's imports from Peru were in 
minerals (65%). The country's main imports from the world are comprised of machinery  (38%); 
while its exports – of machinery (36%), followed by vehicles (23%) and minerals (11%).  
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12118865424Colombia's imports from Chile (%)
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24121276225Colombia's Imports from Mexico (%)
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63954333226Colombia's Global Exports (%)Total: USD 871 million Total: USD 4,874 million
Total: USD 49,769 millionTotal:  USD 1,004 million
Total: USD 59,148 million
WT/REG377/1  
 
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  Chart 1.7 Mexico -Pacific Alliance: Product composition of merchandise trade, annual 
average (2013 -2015)  
 
Source:  UNSD Comtrade database.  
 
 
1.12.   Finally, Chart 1.8 depicts Peru's commodity structure of trade during 2013 -2015 period. While 
its imports from Chile and Colombia were largely dominated by chemicals and prepared food 
accounting for 18% and 13% from Chile, and 25% and 13% from Colombia; its imports from Mexico 
were more concentrated in machinery (41%) and vehicles (20%). The country's  main imports from 
the world are comprised of machinery (25%), minerals (14%) and vehicles (11%), while their 
exports are largely dominated by minerals (40%), and natural and cultured pearls (18%).  
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13131063332Mexico's imports from Chile (%)
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111155333225Mexico's Imports from Colombia (%)
65655443224Mexico's imports from Peru (%)
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887743322225Mexico's Global Imports (%)
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23114433333224Mexico's Global Exports (%)Total: USD 1,439 million Total: USD 923 million
Total: USD 385,811 millionTotal:  USD 791 million
Total: USD 392,140 million
WT/REG377/1  
 
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  Chart 1.8 Peru-Pacific Alliance: Product composition of merchandise trade, annual 
average (2013 -2015)  
 
Source:  UNSD Comtrade database.  
 
1.2  Trade in services and investment  
1.13.   Charts 1.9 -1.12 show the breakdown of global commercial services trade for Chile, Colombia, 
Mexic o, and Peru in 2005 -2017 (2016 for Peru) .  
1.14.   Chart 1.9 includes Chile's trade in commercial services with the world during 2005 -2017. 
Throughout this period, Chile was a net exporter of travel services. It was a net importer in all other 
sectors, though in t ransport, other business services and personal, cultural, and recreational 
services, it was a net exporter in some earlier years.  
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6Peru's imports from Chile (%)
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131286543322Peru's Imports from Colombia (%)
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201465432
6Peru's imports from Mexico (%)
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6Peru's Global Imports (%)
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18109842224Peru's Global Exports (%)Total: USD 1,272 million Total: USD 1,335 million
Total: USD 38,091 millionTotal:  USD 1,823 million
Total: USD 41,207 million
WT/REG377/1  
 
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  Chart 1.9 Chile: Trade in commercial services with world, 2005 -2017  
 
Note:  Data for the following categories not recorded:  
 - Manufacturing services on physical inputs owned by others  
 - Maintenance and repair services n.i.e.  
 - Construction  
Source:  WTO Statistics database based on BPM6.  
 
1.15.   Chart 1.10 depicts Colombia's trade in commercial services with the world. During 2005 -2017, 
Colombia's position as net importer/exporter has varied in maintenance and repair, travel, and 
personal, cultural, and recreational services. For all other sectors , Colombia was a net importer – 
though in telecommunications it was a net exporter in 2007.  
Chart 1.10 Colombia: Trade in commercial services with world, 2005 -2017  
 
Note:  No data under the service categories :  
 - Manufacturing services on physical inputs owned by others (export for 2005 -2017)  
 - Construction (export for 2005 -2017; import for 2005 -2007)  
 - Insurance and pension services (export for 2005 -2009, 2011)  
Source:  WTO Statistics database based on BPM6 . 
 
1.16.   Chart 1.11 depicts Mexico's global trade in commercial services with the world. During 2005 -
2017, Mexico was a net exporter of travel and, up to 2015 of telecommunications; from 2016, Mexico 
became a net importer in this sector. It was a net importer in all other sectors, though in personal, 
cultural, and recreational services, it was a net exporter in some earlier years.  
051015
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2005 -2017
(USD Billion)
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2005 -2017
(USD Billion)
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2005 -2017
(USD Billion)
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2005 -2017
(USD Billion)
WT/REG377/1  
 
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  Chart 1.11 Mexico: Trade in commercial services with world, 2005 -2017  
 
Note:  No data under the service categories:  
 - Manufacturing services on physical inputs owned by others (export and import for 2005 -2017)  
 - Maintenance and repair service s n.i.e. (export for 2005 -2015)  
 - Construction (e xport and import for 2005 -2017)  
 - Finan cial ser vices (export for 2005)  
 - Other business services (export for 2005 -2009)  
Source:  WTO Statistics database based on BPM6.  
 
1.17.   Chart 1.12 shows Peru's global trade in commercial services with the world in the period 
2005-2016. Peru was a net exporter in travel services. In all other sectors, Peru was a net importer, 
with the exception of financial services in 2017, 2010 and 2011.  
Chart 1.12 Peru: Trade in commercial services with world, 2005 -2016  
 
Note:  No data under the service categories:  
 - Manufacturing services on physical inputs owned by others (export and import for 2005 -2016)  
 - Maintenance and repair services n.i.e. (export for 2009 -2016)  
 - Construction (export for 2005 -2016 and import for 2005 -2006, 2013)  
 - Personal, cultural, and recreational services (export and import for 2005 -2006)  
Source:  WTO Statistics database based on BPM6.  
0510152025303540
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2005 -2017
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2005 -2017
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  1.18.   Chart 1.13 depicts Chile's foreign direct investment (FDI) with the world during 2001 -2016, 
showing that it was a  net importer in terms of both stocks and flows over that period. FDI inward 
stock with the world has grown consistently since 2001. Growth in FDI inward flows has been less 
linear, peaking in 2004, 2008 and 2012, and decreasing as of 2014.  
Chart 1.13 Chile: FDI stock and flow with world, 2001 -2016  
 
Source:  UNCTAD.  
 
1.19.   During 2001 -2016, Colombia was a net importer of FDI stocks and flows from the world, as 
shown in Chart 1.14. While FDI stock from the world incre ased steadily, FDI flows have fluctuated 
to a larger extent, peaking in 2005, 2008, and 2014.  
Chart 1.14 Colombia: FDI stock and flow with world, 2001 -2016  
 
Source:  UNCTAD.  
 
1.20.   During 2001 -2016, Mexico was a net  importer of FDI in terms of its stock with the world 
(Chart 1.15). While FDI stocks generally grew before declining in 2016, FDI flows were more volatile, 
reaching a peak in 2013.  
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  Chart 1.15 Mexico: FDI stock and flow with world, 2001 -2016  
 
Source:  UNCTAD.  
 
1.21.   During 2001 -2016, Peru was a net importer of FDI in terms of both stocks and flows with the 
world (Chart 1.1 6). After a largely linear trend, flows became more volatile during the 2008 -2012 
period.  
Chart 1.16 Peru: FDI stock and flow with world, 2001 -2016  
 
Note:  Data not available or not separately reported for "Outward Flow" for years 2002 and 2004 -06. 
Source:  UNCTAD.  
 
2  CHARACTERISTIC ELEME NTS OF THE PROTOCOL  
2.1  Background Information  
2.1.  The Lima Presidential Declaration of April 2011, signed by the Presidents of Chile, Colombia, 
Mexico, Panama and Peru, set  out the Pacific Alliance's objectives - namely the progressive 
establishment of a deep integration area , with free movement of goods, services, capital and 
persons, in the Latin American Pacific region. However, prior to the Lima Declaration, a  number  of 
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  bilateral trade agreements covering goods, services and investment, w ere already in force amongst 
these countries (see Table 2.1).3  
Table 2.1 Pacific Alliance partners – Bilateral RTAs in force4 
RTA/Partner  Entry into force  End of Implementation  
Chile-Colombia  8 May 2009   2012  
Chile-Mexico  1 August 1999   2006 
Chile-Peru 1 March 2009  2016  
Colombia -Mexico  1 January 1995  2020a 
Colombia -Peru (Andean Community)  25 May 1988   2008 
Mexico -Peru 1 February 2012  2023 
a End of implementation of commitments under the 2010 Protocol.  
Source:  WTO database on RTAs.  
 
2.2.  The Pacific Alliance Framework Agreement (hereafter, the "Agreement") was signed on 6 June 
2012 by Colombia, Chile, Mexico and Peru  and entered into force on 20 Ju ly 2015. The Additional 
Protocol to the Pacific Alliance Framework Agreement (hereafter , the "Protocol") which establishes 
a free trade area and provides for preferential treatment, was signed on 10  February 2014 and 
entered into force on 1  May 2016, following completion of Parties' ratification procedures.  
2.3.  The Protocol w as notified to the WTO jointly by its Parties on 3  November 2016, under 
Article  XXIV:7(a) of the GATT 1994 for its goods aspects, and Article V of the GATS for its services 
aspects  (WT/REG377/N/1 -S/C/N/871).  The text of the Protocol is available at:  
https://alianzapacifico.net/download/protocolo -adicional -al-acuerdo -marco-de-la-alianza -del-
pacifico/  
2.4.  The 2012 Agreement, containing 17 Articles, creates the Pacific Alliance as an area of regional 
integration; it sets out an institutional framework whilst also providing for its coexistence with 
bilateral trade agreements amo ng its Parties. Trade relations among the Parties are regulated by 
the 2014 Protocol, consisting of 19 Chapters and three Annexes  (I-II-III) which form an integral 
part of the Protocol . Since the entry into force of the Protocol, two Modifying Protocols we re signed 
by the Parties (in July 2015 and July 2016).5 They will enter into force once ratification procedures 
for all Parties are completed; as of  February 2019, Peru and Colombia had yet to ratify these 
instruments.  The Modifying Protocols incorporate n ew disciplines that have been negotiated in light 
of the Protocol's in -built agenda; this Factual Presentation will also refer to the changes incorporated 
therein.  
2.5.  Box 2.1 provides the structure of the Protocol; new elements from the Modifying Protocols ar e 
also included therein.  
Box 2.1 Structure of the Protocol  
Chapters, Sections & 
Annexes  Title 
 
Preamble  
Chapter 1  Initial Provisions  
                                                
3 Preferential treatment previously granted in the context of the Latin American Integration Association 
(LAIA), in particular under the "Regional Tariff Preference Agreement" (PAR -4), had been contemplated in 
these  bilateral agreements previously signed between the P acific Alliance  members.    
4 Information on these RTA s can be found in the following WTO documents: for Chile –Colombia in 
WT/REG272/ - series; for Chile –Mexico in the WT/REG125/ - series; for Colombia –Mexico in the WT/REG289/ - 
series; for Peru –Chile in the W/REG304/ - series; for Peru –Mexico in the WT/REG308/ - series; and for the 
Andean Community in GATT documents L/6737, L/6841, L/7088 and L/7089.  
5 A number of disciplines included in these Modifying Protocol integrate into the Pacific Alliance 
framework disciplines that were negotiated under the Transpacific P artnership (TPP) and its successor the 
Comprehensive and Progressive Agreement for Trans -Pacific Partnership  (CPTPP). All Pacific Alliance Parties 
except Colombia are Parties to the CPTPP.  WT/REG377/1  
 
- 17 - 
 
  Chapters, Sections & 
Annexes  Title 
Chapter 2  General Definitions  
Chapter 3  Market Access  
Section A  Definitions and Scope  
Section B  National Treatment  
Section C  Tariff Elimination  
Section D  Non-Tariff Measures  
Section E  Special Customs Regimes  
Section F  Agriculture  
Section G  Market Access Committee  
Chapter 4  Rules of Origin and Procedures Related to Origin  
Section A  Rules of Origin  
Section B  Procedures Related to Origin  
Chapter 5  Trade Facilitation a nd Customs Cooperation  
Section A  Trade Facilitation  
Section B  Cooperation and Mutual Assistance on Customs Issues  
Chapter 6  Sanitary and Phytosanitary Measures  
Chapter 7  Technical Barriers to Trade  
Chapter 8  Government Procurement  
Chapter 9  Cross -Border Trade in Services  
Chapter 10  Investment  
Section A   
Section B  Dispute Settlement between a Party and an Investor of the Other Party  
Section C  Additional Provisions  
Chapter 11  Financial Services  
Chapter 12  Maritime Services  
Chapter 13  Electronic Commerce  
Chapter 14  Telecommunications  
Chapter 15  Transparency  
Chapter 15 bis Regulatory Improvementsa 
Chapter 16  Administration of the Additional Protocol  
Chapter 17  Dispute Settlement  
Chapter 18  Exceptions  
Chapter 19  Final Provisions  
 Annex I  Non-conforming measures (Chile, Colombia, Mexico and Peru)  
 Annex II  Future measures (Chile, Colombia, Mexico and Peru)  
 Reservation at the State Level: List of Mexico  
 Annex III  Non-conforming measures on financial services (Chile, Colombia, Mexico 
and Peru)  
a Chapter added through the First Modifying Protocol.  
 
2.6.  The Parties reconfirm the rights and obligations in force between them under the WTO 
Agreement and other agreements to which they are party. If one Party considers that provisions are WT/REG377/1  
 
- 18 - 
 
  incompatible, consultations shall take place with the aim to reach a mutually satisfactory solution. 
A footnote clarifies that more favourable treatment under another agreement do es not constitute 
incompatibility (Article 1.2).  
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.1.  The Schedules of Tariff Elimination included in Annex 3.4 of the Protocol originally foresaw the 
first instalment in 2014 and the establishment of a free -trade are a over a transition period lasting a 
maximum of 17 years. It was also specified that entry into force after 2014 would require the rate 
at entry into force to be as originally foreseen for that year. Given that the Protocol entered into 
force on 2016, the l ongest transition period – applying to Colombia, M exico and Peru - is 15 years 
(2030); Chile applies a shorter transition of five years (2020). The first reduction took place at entry 
into force on 1 May 2016; thereafter, instalments will be effective on 1  January, with the last one 
on 1 January 2030.  
3.2.  Tariffs are reduced from the base rate specified in the Parties' schedules – namely the MFN 
rates of 1 January 2012 . The Schedules have been drawn up on the basis of the Harmonized System 
(HS) 2012. Article 3 .4 prohibits increasing, or adopting new, import duties on originating products.  
3.3.  No automatic rendez -vous clause is provided for with respect to trade liberalization. However, 
upon a Party's request, consultations will take place regarding acceleration of  the tariff liberalization; 
in case of agreement, the Free -Trade Commission is to adopt a decision. Article 3.4:8 specifies that 
a duty may be increased (i) if it had been unilaterally reduced, and up to levels not higher that those 
specified under the lib eralization programme;  or (ii) if authorized following a WTO dispute.  
3.4.  National treatment on trade in goods applies as per Article 3.3, at all levels of government. 
Exceptions to national treatment are authorized for products for which import restrictions are allowed 
(Annex 3.3), as follows:  
a. Chile: imports of used vehicles;  
b. Colombia: taxes on alcoholic beverages up to 30 April 2017, import controls of goods 
subject to import licensing, and measures authorized by the WTO DSB;  
c. Mexico: mineral fuels, retreaded  tyres, worn clothes, diamonds, used vehicles, chassis 
for vehicles and used goods, and measures authorized by the WTO DSB; and  
d. Peru: used clothing and footwear , used vehicles and automotive motors, parts and 
replacements, t yres, used goods,  machinery and equipment which utilize  radioactive 
source , and actions authorized by the WTO DSB.  
3.5.  Article 3.6 includes a general prohibition on restrictions on imports from the Parties, including 
quantitative restrictions (QRs);6 the exceptions are as fol lows:  
a. QRs authorized under Article XI of the GATT 1994 and its interpretative notes, which 
are made an integral part of the Protocol ; 
b. price undertakings agreed in the context of dumping and subsidies proceedings; and  
c. measures listed in the Annex to Article s 3.3 and 3.6 (see paragraph 3.4 above ). 
3.6.  Any measure that could affect the sales of a good within the territory of a Party shall conform 
with, a nd not impair, the obligations under the Protocol. A Party proposing to adopt any such 
measure shall hold consultations with affected Parties and provide a 60 -days advanced notification.  
                                                
6 The Article also prohibits export restrictions, as explained in S ection 3.3.  WT/REG377/1  
 
- 19 - 
 
  3.7.  Articles 3.5 and 3.8 incorporate in the Protocol the WTO Agreements on Customs Valuation 
and on Import Licensing, but reduces the maximum period for the granting and expedition of the 
licence to 20  working days (compared to the WTO period of 30 -60 days).7 In accordance with 
Article  3.9, the Parties reaffirm the rights and obligations of paragraph 1 of Article VIII of the GATT 
1994 and its interpretative notes . Consular transactions or requirements, including fees and charges 
connected with importation, are abolished on intra -Pacific Alliance trade. The Parties are to make 
available through the Internet information on fees and charges imposed in relation to importation 
and exportation.  
3.8.  Articles 3.11 -3.14 deal with special customs regimes, including the temporary admission  of 
goods. Article 3.11 prohibits new, or increase s in existing, tariff exemptions if these are based on 
compliance with performance requirements, as well as its maintenance in mutual trade.  
3.9.  A Committee on Market Access is established as per Article 3.17.  
3.1.2   Liberalization of trade and tariff lines  
3.10.   Tariffs are eliminated or reduced in accordance with the Parties' schedule s of liberalization 
contained in Annex 3.4, on the basis of 26 categories, of which three are only used by one of the 
Parties (see Table 3.1) and one corresponding to products excluded from liberalization.  
Table 3.1 Categories for elimination or reduction of tariffs under the Protoco l, modified 
to take into account the Protocol's entry into force in 2016 instead of 2014  
Category  Schedule of Elimination  
A-B-C Free on entry into force (EIF)  
D Tariff eliminated in two instalments starting at EIF, free on 1.1.17  
E Tariff eliminated in  three instalments starting at EIF, free on 1.1.18  
E5 Tariff eliminated in one instalment on 1.1.19  
F Tariff eliminated in four instalments starting at EIF, free on 1.1.19  
G Tariff eliminated in five instalments starting at EIF, free on 1.1.20  
H Tariff eliminated in six instalments starting at EIF, free on 1.1.21  
I Tariff eliminated in seven instalments starting at EIF, free on 1.1.22 (only for Colombia)  
J Tariff eliminated in eight instalments starting at EIF, free on 1.1.23  
J5 Tariff eliminated in five instalments starting on 1.1.19, free on 1.1.23  
K Tariff eliminated in ten instalments starting at EIF, free on 1.1.25  
K3 Tariff eliminated in nine instalments starting on 1.1.17, free on 1.1.25 (only for Peru)  
K5 Tariff eliminated in seven instalments starting on 1.1.19, free on 1.1.25 (only for Peru)  
K7 Tariff eliminated in five instalments starting on 1.1.21, free on 1.1.25  
L Tariff eliminated in eleven instalments starting at EIF, free on 1.1.26  
M Tariff eliminated in thirteen instalments starting at EIF, free on 1.1.28  
N Tariff eliminated in fourteen instalments starting at EIF, free on 1.1.29  
N3 Tariff eliminated in thirteen instalments starting on 1.1.17, free on 1.1.29  
N8 Tariff eliminated in eight instalments starting on  1.1.22, free on 1.1.29  
O Tariff eliminated in fifteen instalments starting at EIF, free on 1.1.30  
O4 Tariff eliminated in thirteen instalments starting on 1.1.18, free on 1.1.30  
O12 Tariff eliminated in five instalments starting on 1.1.26, free on 1.1.30  
P Ad hoc tariff elimination, in accordance with the Party's Schedule  
X Products excluded from tariff commitment  
EIF Entry into force.  
Source:  WTO Secretariat based on the Protocol.   
3.11.   Chart 3.1 below  shows additional liberalization under the Protocol, as compared to the share 
of lines that are duty free on an MFN basis and in the context of the existing preferential RTAs. 
Additional liberalization at the end of implementation will be the highest between Peru and Mexico. 
Conversely, no addition al liberalization will be seen on trade between Colombia and Peru, nor on 
imports by Chile from Colombia and Peru and imports by Mexico from Peru.  
                                                
7 The WTO Agreement foresees 30 days for non -automatic licensing  and 60  days if all applications are 
considered simultaneously . Automatic licence is granted within 10 working days.  WT/REG377/1  
 
- 20 - 
 
  Chart 3.1 Tariff liberalization under the Protocol , MFN and bilateral RTAs  
 
Source:  WTO estimates based on data provided by the Parties and on annexes to the bilateral agreements.  
 
3.12.   In 2016, Chile, Colombia and Peru applied price-band system s based on international 
reference prices to MFN imports . Under t he Protocol, the y will be eliminated for the vast majority of 
products ; see Table 3.2 and country sections for additional details . 
0%10%20%30%40%50%60%70%80%90%100%
COL MEX PER CHL MEX PER CHL COL PER CHL COL MEX
CHL (2020) COL (2030) MEX (2030) PER (2030)% linesMFN duty-free (2016)* Free PA 2016 Free PA EOI Free Bil 2016
0%10%20%30%40%50%60%70%80%90%100%% trade
MFN duty-free (2016)* Free PA 2016 Free PA EOI Free Bil 2016WT/REG377/1  
 
- 21 - 
 
  Table 3.2 Price -band mechanisms as applied under MFN 2016 and under the Protocol  
Imports  
into MFN 2016  
(number of lines)  Under the Protocol, at end of implementation  
Chile 41 Eliminated except on sugar (7 lines)  
Colombia  159 Eliminated except on sugar and molasses ( 16 lines)  
Mexico  None None 
Peru 47 Eliminated except on sugar and on high content sugar products (8 
lines)  
Source:  WTO Secretariat based on the Protocol.  
 
3.1.3   Liberalization schedule  
3.13.   This section describes the Parties' scheduled liberalization in terms of tariff lines and trade,8 
on the basis of HS 2012 nomenclature (as used in the Protocol) , including in terms of broad 
HS Section (Tables 3.3 -3.10). Also pictured in Charts 3.2 -3.5 are the MFN and p referential rates of 
duty, by HS Chapter, for products remaining dutiable once the Protocol is fully implemented. Further 
details are provided in Annex 1.  
3.1.3.1   Chile  
3.14.   Chile has a common liberalization schedule for all other Parties . Chile has a flat MFN tariff rate 
at 6% with very few exceptions – in 2016, these included 35 lines which were duty -free and 41 lines 
subject to the price band  mechanism . MFN duty-free lines corresponded to a negligible amount of 
imports from its partners during 2013 -2015. As seen in Table 3.3, liberalization at the entry into 
force of the Protocol was significant with an additional 7,667 lines (98.5% of tariff lines) liberalized, 
corresponding to 94.3%, 99.5% and 97.4% of imports from Colombia, Mexico and Peru respectively. 
At that sa me year, corresponding figures under the respective bilateral agreements were 99.6%, 
97.2% and 99.4% in terms of tariff lines while 100% of imports from Colombia and Peru, and 99.9% 
from Mexico were free of duties. At the end of the transition period in 20 20, 28 lines (0.4% of the 
tariff) will remain subject to duties - all of which are excluded from liberalization. Under the bilateral 
agreements, only the one with Mexico had a higher number of lines remaining dutiable.  
It can be seen from Table 3. 4 that all of the 28 lines remaining dutiable are under HS Section 
IV. The p roducts include sugar, that remain s subject to the price band  mechanism , and cocoa 
powder, food preparation and alcohol beverages. The final preferential tariff average of 5.1%  reflects 
the fact that preferential treatment is granted for other products in that Section.9  
Chart 3.2 shows that the preferential and MFN average tariffs for lines remaining dutiable is 
the same for sugar and alcohol ic beverages  (6%). Conversely, tariffs applied in Chapters 18, 19 and 
21 for lines remaining dutiable do provide for preferential treatment, since no lines from these 
Chapters are entirely excluded from liberalization10 and their a verage preferential applied tariffs are 
around 3% (versus 6% on an MFN basis) . 
                                                
8 Trade data in these tables refer to HS Chapters 1 -97. 
For the  calculation of averages, duties of the tariff lines subject to price band system on MFN basis and 
under the Protocol are excluded.  
10 The exclusion of preferential treatment for these tariff lines are subject to the content of sugar, fat or 
artificial flav ours.  
  WT/REG377/1  
 
- 22 - Table 3.3 Chile: Tariff elimination commitments under the Protocol and corresponding average trade (2013 -2015)  
Duty phase -out 
period  Colombia  Mexico  Peru  
Number 
of lines  % of 
lines  Import 
Values  
(USD 
Million)  % of 
imports  No. of 
lines  % of 
lines  Import 
Values  
(USD 
Million)  % of 
imports  No. of 
lines  % of 
lines  Import 
Values  
(USD 
Million)  % of 
imports  
2016 (MFN)  35 0.4 0.0 0.0 35 0.4 1.8 0.1 35 0.4 0.1 0.0 
2016 7,672  98.4 1,175.3  94.3 7,672 98.4 2,349.2  99.4 7,672 98.4 1,436. 7 97.4 
2020 56 0.7 0.4 0.03 56 0.7 3.7 0.2 56 0.7 37.3 2.5 
Remain dutiable  28 0.4 71.0 5.7 28 0.4 8.1 0.3 28 0.4 1.6 0.1 
TOTAL  7,791 100.0  1246.7  100.0  7,791 100.0  2362.8  100.0  7,791 100.0  1,475.5  100.0  
Existing Bilaterala 
2016 7,785 100 1246.7  100.0  7,804 98.8 2,358. 8 99.8 6,810 100.0  1,475.5  100.0  
Remain Dutiable  
(EOI)  0 0.0 - - 98 1.2 4.0 0.2 0 0.0 0.0 0.0 
Note:  A single liberalization schedule applies to Colombia, Mexico and Peru.  
a  Calculations by the Secretariat, on the basis of the Protocol and transposition from HS 1996 to HS 2012 using the WCO correla tion table.  
Source:  WTO estimates based on data provided by Chile.  
 WT/REG377/1  
 
- 23 - 
 
  Table 3.4 Chile: Tariff elimination under the Protocol, by HS Section  
HS 
Section  MFN 
average  
% Total 
No. of 
lines  Duty -free 
lines under 
the 
MFN 2016  Number of duty -free 
lines under the Protocol  
(COL, MEX, PER)  No. of 
lines 
remaining 
dutiable  Avg. Final 
Tariff 
(Dutiable) 
% 2016  2020  
I 6.0 742  700 42   
II 6.0 704  697 7   
III 6.0 68  65 3   
IV 6.0 470  438 4 28 5.1 
V 6.0 195  195    
VI 6.0 1,219   1,219     
VII 6.0 295  295    
VIII 6.0 74  74    
IX 6.0 137  137    
X 5.9 200 4 200    
XI 6.0 949  949    
XII 6.0 60  60    
XIII 6.0 166  166    
XIV 6.0 56  56    
XV 6.0 613  613    
XVI 6.0 1,042  2 1,042    
XVII 5.5 326 29 326    
XVIII 6.0 247  247    
XIX 6.0 21  21    
XX 6.0 200  200    
XXI 6.0 7  7    
Total  6.0 7,791 35 7672 56 28 5.1 
Note:  For the calculation of averages, duties of the tariff lines subject to the price band system are excluded.  
Source:  WTO estimates based on data provided by Chile.  
 
Chart 3.2 Chile: Average of dutiable rates, by HS Chapter  
 
Note:  For the calculation of averages, duties of the tariff lines subject to the price band system on an MFN 
basis and under the Protocol are excluded.  
Source:  WTO estimates based on data provided by Chile.  
01234567
17
18
19
21
22Average Duty Rate
HS Chapters Preferential MFNWT/REG377/1  
 
- 24 - 
 
  3.1.3.2   Colombia  
3.17.   Table 3.5 shows Colombia's tariff elimination commitments under the  Protocol.  Colombia 
applies a common liberalization schedule for Chile and Peru and another one for Mexico; the 
remaining dutiable products at the end of implementation are nevertheless the same.  
3.18.   Before the entry into force of the Protocol, only 3.5% of Colombia's tariff lines were duty free 
on an MFN basis, which corresponded to 1.2%, 1.4% and 0.2% of its imports from Chile,  Mexico 
and Peru, respectively, in 2013 -2015.11 Upon its entry into force,  Colombia liberalized  another 94.9% 
of lines for imports from Chile and Peru and 94.1% for Mexico, accounting respectively  for an 
additional 96.3%, 97.8% and 93.1% of its imports  from these Parties . Further tariff elimination will 
take place up to 2030, when 99.6% of the total number of lines will be duty -free. Out of the 33 lines 
remaining dutiable – all excluded from liberalization - 16 are subject to the price-band mechanism ; 
in ter ms of trade, they represent 0.2% of imports from Chile and Mexico but 4.9% of imports from 
Peru. 
3.19.   The 33 lines remaining dutiable are under HS Section IV (Table 3.6). Products include sugar 
and high content sugar products , that remain subject to Andean price band  system , and cocoa 
powder, food preparation and alcohol beverages. The final tariff average of 8.6%, lower  than the 
MFN average at 13.7%, results from preferential treatment granted to other products within the 
Section .12  
3.20.   Chart 3.3 shows preferential  and MFN average tariffs for lines remaining dutiable is the same 
for sugar and molasse s as well as alcohol ic beverages (Chapters 17 and 22 respectively), while for 
the other Chapters some preferential treatment is granted. In Chapters 18, 19 and 21, the a verage 
MFN applied tariff is twice the prefe rential tariff – which ha s been lowered to 7.5% for Chapters 18 
and 19 and 6.5%  for Chapter 20  - while average MFN and preferential rates of 9.2% and 11.7% 
apply for Chapters 17 and 22.  
 
 
 
                                                
11 Colombia's applied tariff in 2016 consisted of 7,454 lines at the HS ten-digit level (HS 2012), with all 
tariff lines being ad valorem  and 159 lines  subject to the Andean price band system.  
12 For the calculation of averages, duties of the tariff lines subject to the Andean price band system on 
an MFN basis and under the Protocol are excluded .  
  WT/REG377/1  
 
- 25 - Table 3.5 Colombia: Tariff elimination commitments under the Protocol and corresponding average trade (2013 -2015)  
Duty phase -out 
period  Chile  Mexico  Peru  
No. of 
lines  % of 
lines  Import 
Values  
(USD 
Million)  % of 
imports  No. of 
lines  % of 
lines  Import 
Values 
(USD 
Million)  % of 
imports  No. of 
lines  % of 
lines  Import 
Values  
(USD 
Million)  % of 
imports  
2016 (MFN)  263 3.5 10.3 1.2 263 3.5 65.9 1.4 263 3.5 2.2 0.2 
2016 7,074  94.9 828.7  96.3 7,013  94.1 4,758.3  97.8 7,074  94.9 911.4  93.1 
2018 -    11 0.1 0.0 0.0 -    
2019 3 0.0 0.0 0.0 13 0.2 0.1 0.0 3 0.0 0.1 0.0 
2020 -    4 0.1 0.0 0.0 -    
2021 39 0.5 4.6 0.5 31 0.4 2.1 0.0 39 0.5 1.9 0.2 
2022 5 0.1 0.0 0.0 5 0.1 0.1 0.0 5 0.1 0.0 0.0 
2023 9 0.1 1.0 0.1 21 0.3 3.5 0.1 9 0.1 6.4 0.7 
2025 -    5 0.1 0.0 0.0 -    
2026 18 0.2 14.2 1.7 18 0.2 28.0 0.6 18 0.2 0.0 0.0 
2028 -    3 0.0 0.0 0.0 -    
2029 5 0.1 0.0 0.0 5 0.1 0.0 0.0 5 0.1 0.0 0.0 
2030 5 0.1 0.0 0.0 29 0.4 0.0 0.0 5 0.1 9.1 0.9 
Remain dutiable  33 0.4 2.0 0.2 33 0.4 9.4 0.2 33 0.4 47.9 4.9 
Total  7,454  100.0  860.9  100.0  7,454  100 4,867.4  100.0  7,454  100.0  979.1  100.0  
Existing bilateral  agreement  
2016 7,011  94.1 816.2  94.8 6,824  91.5 4774.4  98.1 7,191  96.5 976.8  99.8 
Remain dutiable  180 2.4 34.3 4.0 367 4.9  27.1 0.6  0 0.0 0.0 0.0 
Note:  The liberalization schedule s applied to Chile and Peru are similar.  
Source:  WTO estimates based on data provided by  Colombia.  
   
  WT/REG377/1  
 
- 26 - Table 3.6 Colombia: Tariff elimination under the Protocol, by HS Section   
HS 
Section  MFN 
Average  
% No. of 
lines  MFN 
duty-
free 
lines 
2016  Number of duty -free lines under the Protocol  
Remain 
dutiable  
Avg. Final 
Tariff (Du -
tiable) %  
Chile and Peru  Mexico  2016  
2019  
2021  
2022  
2023  
2026  
2029  
2030  
2016  
2018  
2019  
2020  
2021  
2022  
2023  
2025  
2026  
2028  
2029  
2030  
I 19.9 413 1 375  15 3  15 4  341 8 10 4 11 3 16  15  4    
II 13.0 427  401 1 14  6   5 378  1  10  2 5  2  29   
III 10.0 66  65  1      65    1          
IV 13.7 310  258 2 8 2 3 3 1  254 3 2  8 2 3  3 1 1  33 8.6 
V 5.0 193 1 192        192              
VI 5.0 1,416  173 1,242   1      1,242     1          
VII 7.5 315 8 307        307              
VIII 8.9 78  78        78              
IX 7.5 108  108        108              
X 8.1 197 14 183        183              
XI 10.2 933 1 932        932              
XII 13.5 55  55        55              
XIII 7.8 167  167        167              
XIV 7.1 59  59        59              
XV 6.3 718 16 702        702              
XVI 6.1 1,231  35 1,196         1,196               
XVII 12.2 246 12 234        234              
XVIII 5.7 282 2 280        280              
XIX 14.9 69  69        69              
XX 13.2 164  164        164              
XXI 15.0 7  7        7              
Total  8.5 7,454  263 7,074  3 39 5 9 18 5 5 7,013  11 13 4 31 5 21 5 18 3 5 29 33 8.6 
Note:  For the calculation of averages, duties of the tariff lines subject to price band system are excluded.  
Source:  WTO estimates based on data provided by Colombia.  WT/REG377/1  
 
- 27 - 
 
  Chart 3.3 Colombia: Average of dutiable rates, by HS Chapter  
 
Note:  For the calculation of averages, duties of the tariff lines subject to price band system on MFN basis 
and under the Protocol are excluded.  
Source:  WTO estimates based on data provided by Colombia.  
 
3.1.3.3   Mexico  
3.21.   With the exception of one tariff line (030749.99)13, Mexico has a common liberalization 
schedule for Chile and Peru and a different one for Colombia. As shown in Table 3.7, before the 
Protocol's entry into force, almost three -fifths (58.1%) of Mexico's tariff was already duty free on an 
MFN basis.14 Taking 2 013-2015 as a basis, that accounted for four -fifths of imports from Peru, two -
fifths from Chile and around one -third from Colombia. Upon the Protocol 's entry into force , additional 
38.7% of the lines became duty -free for imports from Chile and Peru, corresponding respectively to 
41% and 15.9% of Mexico's imports from them . For Colombia a  slightly lower share  of lines – 38.5% , 
corresponding to 41% of its imports into Mexico - were liberalized. The share of liberali zed imports 
in 2016 was higher under the bilateral agreements  with Chile and Colombia , but lower in the case 
of Peru. At the end of the transition period in 2030, 56 lines (0.5% of the tariff) will remain subject 
to duties – 22 being prohibited lines  on an  MFN basis (chemicals and drugs  prohibited for health 
reasons , see Annex 2), and the remai ning 34 being excluded from liberalization. All of Mexico's 
bilateral agreements had a higher number of lines remaining dutiable.  
3.22.   The vast majority of 56 lines remai ning dutiable are agricultural products under HS Sections 
I-IV. They are also subject to longer transition periods : the longest liberalization time -frame for 
industrial products is five years. The final average tariff for remaining dutiable products (31.5% ) 
could only be calculated for HS Section IV, and refer s to sugar, cocoa powder, food preparation and 
alcohol ic beverages, all of which are excluded from liberalization .  
3.23.   Chart 3.4 shows that preferential and MFN average tariffs for lines remaining dutiabl e once 
the Protocol  is implemented  is the same for sugar and alcohol ic beverages, while tariffs applied 
under Chapter 19 provide for preferential treatment, since only few lines of th is Chapter are excluded 
from liberalization. Average applied rates c ould not be calculated for Chapters 18 and 21 since the 
remaining tariffs are of a specific nature and ad valorem  equivalents were not available,  and for 
Chapters 03, 12, 13, 28 -30 and 41 because these refer to products subject to import prohibition.  
                                                
13 Liberalized at entry into force for Peru and by 2018 for Chile.  
14 In 2016, Mexico's schedule contained 12,275 8-digit lines of the HS 2012. In general, Mexico applies 
ad valorem tariffs , with the exception of 59 tariff lines . 
0246810121416
17
18
19
21
22Average Duty Rate
HS Chapters Preferential MFN 
  WT/REG377/1  
 
- 28 - Table 3.7 Mexico: Tariff elimination commitments under the Protocol  and corresponding average trade (2013 -2015)  
Duty phase -out perio d Chile  Colombia  Peru  
No. of lines  % of lines  Import 
Values  
(USD 
Million)  % of 
imports  No. of 
lines  % of 
lines  Import 
Values  
(USD 
Million)  % of 
imports  No. of 
lines  % of 
lines  Import 
Values  
(USD 
Million)  % of 
imports  
2016 (MFN)  7,137  58.1 599.0  41.8 7,137  58.1 310.6  34.0 7,137  58.1 627.8  80.1 
2016 4,746  38.7 587.8  41.0 4,722  38.5 566.7  62.1 4,747  38.7 124.2  15.9 
2018 7 0.1 2.4 0.2 20 0.2 8.9 1.0 6 0.0 0.0 0.0 
2019 -    5 0.0 0.0 0.0 -    
2020 222 1.8 102.5  7.2 222 1.8 16.8 1.8 222 1.8 2.2 0.3 
2021 -    2 0.0 0.0 0.0 -    
2023 48 0.4 74.8 5.2 49 0.4 0.0 0.0 48 0.4 3.6 0.5 
2025 10 0.1 39.3 2.7 10 0.1 0.0 0.0 10 0.1 22.6 2.9 
2026 5 0.0 0.0 0.0 7 0.1 0.0 0.0 5 0.0 0.0 0.0 
2028 24 0.2 22.0 1.5 24 0.2 0.1 0.0 24 0.2 0.7 0.1 
2030 20 0.2 4.6 0.3 21 0.2 9.7 1.1 20 0.2 2.4 0.3 
Remain dutiable  56 0.5 0.0 0.0 56 0.5 0.1 0.0 56 0.5 0.0 0.0 
Total  12,275  100.0  1432.4  100.0  12,275  100.0  912.8  100.0  12,275  100.0  783.5  100.0  
Existing bilateral  agreements  
2016 5,044  41.1 794.8  55.5 4,726  38.5 589.2  64.5 4,039  32.9 116.2  14.8 
Remain dutiable  94 0.8 38.7 2.7 412 3.4 13.0 1.4 1,099  9.0 39.5 5.0 
Note:  For the calculation of averages, duties of the tariff lines subject to specific rates and prohibited from import a re excluded.  
Source:  WTO estimates based on data provided by Mexico and IDB -WTO.   
  WT/REG377/1  
 
- 29 - Table 3.8 Mexico: Tariff elimination under the Protocol , by HS Section  HS Section  
MFN Aver -
age %  
No. of lines  
MFN 
duty-
free 
lines 
2016  Number of MFN duty -free lines under the Protocol  
Remain 
dutiable  
Avg. Final 
Tariff 
(Dutiable) 
% Chile and Peru  Colombia  2016  
2018  
2020  
2023  
2025  
2026  
2028  
2030  
2016  
2018  
2019  
2020  
2021  
2023  
2025  
2026  
2028  
2030  
I 18.8 439 50 236 (CHL) 
237 (PER)  4 (C) 
3 (P) 100 31 4 5 8  222 13 4 100 1 31 4 5 8  1 * 
II 11.9 519 113 312  35 15 6  14 18 311   35  15 6  14 19 6 * 
III 10.2 72 17 52 1 2      52 1  2         
IV 18.7 357 31 248 2 36 2   2 2 239 6 1 36 1 3  2 2 2 34 31.5 
V 0.3 212 204 8        8            
VI 1.4 2,864  2,284  568        568          12 * 
VII 3.8 567 347 213  7      213   7         
VIII 4.8 124 92 31        31          1 * 
IX 6.7 187 66 112  9      112   9         
X 2.8 311 182 127        127          2 * 
XI 12.2 1,251  159 1,092         1,092             
XII 14.8 102 18 62  22      62   22         
XIII 5.7 310 162 144  4      144   4         
XIV 3.3 65 47 18        18            
XV 3.8 1,268  861 405  2      405   2         
XVI 2.8 2,485  1,900  585        585            
XVII 7.6 402 200 197  5      197   5         
XVIII 2.7 449 319 130        130            
XIX 11.2 33 2 31        31            
XX 9.4 244 69 175        175            
XXI 0.0 14 14                     
Total  5.5 12,275  7,137  4,746 (C) 
4,747 ( P) 6 (C)  
7 (P)  222 48 10 5 24 20 4,722  20 5 222 2 49 10 7 24 21 56 31.5 
* Duties of the corresponding tariff lines are either only specific rates or prohibited from import.  
Note:  For the calculation of averages, duties of the tariff lines subject to specific rates and products related to import prohibit ion are excluded.  
Source:  WTO estimates based on data provided by Mexico.  WT/REG377/1  
 
- 30 - 
 
  Chart 3.4 Mexico: Average of dutiable rates, by HS Chapter  
 
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  
Source:  WTO estimates based on data provided by Mexico.  
 
3.1.3.4   Peru  
3.24.   Table 3.9 shows Peru's tariff elimination commitments under the Protocol, in accordance with 
the schedule applied to Chile and Colombia and Mexico. Remaining dutiable products are common 
to all its partners.  
3.25.   Before the entry into force of the Protocol, more than two -thirds (69.7%) of Peru's tariff lines 
were duty free on an MFN basis, corresponding to 60.6%, 45.8% and 56.4% of its imports from 
Chile, Colombia and Mexico, respectively, in 2013 -2015.15 The vast majority  of lines still subject to 
duties were liberalized upon entry into force – 2,222 lines for Chile and Colombia, and 2 ,196 lines 
for Mexico, accounting respectively  for an additional 37.3%, 47.4% and 43.3% of its imports. That 
represent ed improved  market access compared to under its bilateral agreements (in terms of 
imports ) for Chile and Mexico, while the opposite is true for Colombia. Further tariff elimination will 
take place in six stages for Chile and Colombia and in eight stages fo r Mexico, up to 2025, when 
99.8% of the total number of lines will be come  duty-free. Out of the 14 lines remaining dutiable – 
all excluded from liberalization -16 nine are subject to price -bands; in terms of trade, they represent 
1.1% of imports from Chile, 0.3% from Mexico but 6.6% of imports from Colombia.  
3.26.   The 14 lines remaining dutiable are under HS Section IV (Table 3.10) ; these are sugar and 
high content sugar products that r emain subject t o MFN tariffs  (match ing products from the other 
Parties ). The final average tariff for dutiable products in Section IV is 5.4 %.17  
3.27.   As depicted in Chart 3.11, preferential and MFN average tariffs for lines remaining dutiable is 
the same for alcohol ic beverages of Chapter 22, while for Chapter 18 the average MFN applied tariff 
is twice the prefer ential tariff. Average applied rates are not calculated for Chapters 17 and 21 since 
these products remain subject to the price band.  
                                                
15 Peru's tariff structure contains 3  different tariff rates  - 0%, 6% and 11%, excluding tariff lines subject 
to pri ce band.  
16 Peru excludes  (in full or partially)  a total of 34 tariff lines from tariff liberalization (category "X"). 
However, 20 tariff lines out of th ese 34 were duty -free on an MFN basis  in 2016, and thus are not included in 
the "remaining dutiable" cat egory. These are 1701.13.00, 1701.91.00, 1701.99.00, 1702.11.00, 1702.19.00, 
1702.19.00, 1702.30.00, 1702.30.00, 1702.40.00, 1702.40.00, 1702.50.00, 1702.90.00, 1702.90.00, 
1703.10.00, 1703.90.00, 1901.20.00, 2106.90.00, 2106.90.00, 2106.90.00, 2106.90.00.    
17 For the calculation of averages, duties of the tariff lines subject to price band system on an MFN basis 
and under the Protocol are excluded . 
051015202530354045
03
12
13
17
18
19
21
22
28
29
30
41Average Duty Rate
HS Chapters Preferential MFN *  Specific rates only ** Prohibited imports
** ** ** * * ** ** ** **  
  WT/REG377/1  
 
- 31 - Table 3.9 Peru: Tariff elimination under the Protocol and corresponding average trade (2013 -2015)  
Duty phase -out 
period  Chile  Colombia  Mexicob 
Number 
of lines  % of 
lines  Import 
Values  
(USD 
Million)  % of 
imports  Number 
of lines  % of 
lines  Import 
Values  
(USD 
Million)  % of 
imports  Number 
of lines  % of 
lines  Import 
Values  
(USD 
Million)  % of 
imports  
2016 (MFN)  5,265  69.7 771.0  60.6 5,265  69.7 611.8  45.8 5,265  69.7 1027.6  56.4 
2016 2,222  29.4 474.4  37.3 2,222  29.4 632.5  47.4 2,196  29.1 788.2  43.3 
2017 1 0.0 0.0 0.0 1 0.0 0.0 0.0 5 0.1 0.0 0.0 
2018 10 0.1 1.5 0.1 10 0.1 0.0 0.0 11 0.1 0.0 0.0 
2019 1 0.0 0.0 0.0 1 0.0 0.0 0.0 -    
2020 8 0.1 0.1 0.0 8 0.1 1.5 0.1 8 0.1 0.0 0.0 
2023 9 0.1 2.5 0.2 9 0.1 0.8 0.1 13 0.2 0.5 0.0 
2025 24 0.3 9.0 0.7 24 0.3 0.0 0.0 20 0.3 0.0 0.0 
2028 -    -    4 0.1 0.0 0.0 
2030 -    -    18 0.2 0.3 0.0 
Remain dutiablec 14 0.2 13.6 1.1 14 0.2 87.8 6.6 14 0.2 5.7 0.3 
Total  7,554  100.0  1,272.3  100.0  7,554  100.0  1,334.3  100.0  7,554  100.0  1,822.3  100.0  
Existing bilateral  agreement  
2016 2,262  29.9 464.6  36.5 2,289  30.3 722.6  54.2 1,617  21.4 630.2  34.6 
Remain dutiable  27a 0.4 36.7 2.9 - 0.0 0.0 0.0 672d 8.9 164.6  9.0 
Note:  The liberalization schedule applied to Chile and Colombia are similar.  
a Since 1 July 2016, all the tariff lines of the Chile – Peru bilateral agreement are fully liberalized .  
b Tariff reductions for the tariff lines 0703.10.00.00, 0710.80.90.00 and 0712.20.00.00 for Mexico are on a  seasonal basis until 2027; starting from 2028 th ese 
tariff lines are to be fully liberalized.  
c Excluding 20 tariff lines excluded/partially excluded from the Agreement which were duty -free on an MFN basis .  
d  Until 2016. However , in the Peru -Mexico bilateral agreement, the transition period will end in 2021. Thus , the actual number of tariff lines remaining dutiable 
will be 177 (in HS2007 version) at the end of the implementation period.  
Source:  WTO estimates based on data provided by Peru.  
   
  WT/REG377/1  
 
- 32 - Table 3.10 Peru: Tariff elimination under the Protocol , by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  MFN 
duty-
free 
lines 
2016  Number of MFN duty -free lines under the Protocol  
Remain 
dutiable  
Avg. Final 
Tariff 
(Dutiable) 
% Chile and Colombia  Mexico  2016  
2017  
2018  
2019  
2020  
2023  
2025  
2016  
2017  
2018  
2020  
2023  
2025  
2028  
2030  
I 1.7 421 296 88  5  6 8 18 88  5 6 12 14     
II 2.8 424 227 188  3 1 1  4 168  4 1  4 4 16   
III 1.6 66 48 16  2     16  2        
IV 3.1 318 153 146 1   1 1 2 140 5  1 1 2  2 14 5.4 
V 0.2 213 207 6       6          
VI 0.8 1,479  1,275  204       204          
VII 1.7 312 222 90       90          
VIII 2.1 79 52 27       27          
IX 2.4 108 64 44       44          
X 2.2 241 152 89       89          
XI 7.6 964 245 719       719          
XII 7.9 55 8 47       47          
XIII 1.5 173 129 44       44          
XIV 1.4 59 45 14       14          
XV 0.8 698 605 93       93          
XVI 0.7 1,199  1,079  120       120          
XVII 1.2 226 182 44       44          
XVIII 1.5 288 218 70       70          
XIX 4.2 69 21 48       48          
XX 4.6 155 37 118       118          
XXI 6.0 7  7       7          
Total  2.2 7,554  5,265  2,222  1 10 1 8 9 24 2,196  5 11 8 13 20 4 18 14 5.4 
Note:  For the calculation of averages, duties of the tariff lines subject to  the price band system are excluded.  
Source:  WTO estimates based on data provided by Peru.WT/REG377/1  
 
- 33 - 
 
  Chart 3.5 Peru: Average of dutiable rates, by HS Chapter  
 
Note:  For the calculation of averages, tariff lines subject to  price band system are excluded.  
Source:  WTO estimates  based on data provided by Peru.  
 
3.1.4   Tariff rate quotas  
3.28.   There are no provisions on tariff rate quotas  (TRQs)  in the Protocol.18 
3.2  Rules of origin  
3.29.   Rules of origin are set out in Section A of Chapter 4. The bas ic requirements for a good to be 
considered originating, as in Article 4.2, are:  
a. the good is wholly obtained or produced entirely in the Parties; or  
b. the good is produced entirely in the Parties from originating materials only; or  
c. the good is produced entirely in the Parties by using non -originating materials which 
comply with the specific rules of origin contained in Annex 4.2, as follows:  
i. it goes through a change in tariff classification (CTC), or  
ii. it meets a minimum regional value content (RVC) benchm ark, 
iii. in fewer cases than ii above, it goes through a CTC and meets requirements 
concerning a minimum RVC, or  
iv. for Chapters 27 -29 and for headings 39.01 to 39.14 ,19 a chemical reaction or a 
CTC is required, and  
d. in any of the se cases, the good meets all other  applicable criteria in Chapter 4.  
                                                
18 As of 2016, TRQs applied in the context of the Colombia -Mexico and Peru -Mexico bilateral agreements. 
In the  WTO, Colombia and Mexico have TRQs for agricultural products.  
19 For few goods classified in heading 39.01 to 39.14, there is also an alternative RVC.  
01234567
17
18
21
22Average Duty Rate
HS Chapters Preferential MFN *  Subject to price band
* *WT/REG377/1  
 
- 34 - 
 
  3.30.   The main criterion for a good produced by using non -originating materials to acquire 
originating status is a CTC. The CTC applies generally at the HS heading level, but requirements at 
the chapter and subheading levels ar e also frequent (the former in particular for agricultural and 
mineral products). Article 4.7 provides a  list of minimal operations that do not confer origin.  
3.31.   Article 4.4 provides that the RVC is the difference between the f.o.b.  value  and the value of 
the non-originating materials divided by the f.o.b.  value.20 The RVC threshold of is 50%; for 
automotive products under Chapter 87, lower thresholds (30% -35%-45%, f.o.b. basis ) apply . In 
addition, for certain automotive products, a "net cost" method may be use d for calculating the RVC 
whereby the net cost of the good is used instead of its transaction value. There is a provision for 
intermediate materials benefit the vertical ly integrated producers (Article  4.5). 
3.32.   The value of non -originating materials incorpora ted in another good that has acquired 
originating status is not added into the RVC calculation (Article 4.5); this is the case for those 
materials which have been designated as "intermediate material" by the producer  according to the 
definition in Article 4.1.  
3.33.   Cumulation between the Parties only applies in respect of goods fully liberalized in intra -trade 
(Article 4.8). Diagonal cumulation is not foreseen in the Protocol.  
3.34.   A de minimis  rule (Article 4.9) applies so that the good is considered originating if the value 
of all non -originating materials that do not comply with the required CTC do not exceed  10% of the 
f.o.b.  value  of the good . Additional RVC requirement s will apply without any change. This general 
provision is modified as follows:  
a. for textiles in HS Chapters 50 to 63, tolerance applies if the total weight of non -
originating fibers and yarns that do not comply with the CTC requirements does not 
represent more than 10% of the good's total weight; and  
b. for Chapters 1 to 24, tolerance applies only if the non -originating materials used in 
production are distinct from the final good.  
3.35.   No outward -processing is authorized under th e Protocol . Transit through non -parties, with or 
without  trans-shipment , is authorized only if the good remains under the surveillance of the customs 
authorities provided it is not subject to any processing outside the territory of the Parties other than 
loading, unloading or any other operation necessary to pr eserve it in good condition or to transport 
it (Article 4.15).  
3.36.   Additional rules specify the treatment for fungible goods or materials, sets or assortments 
(Articles  4.10 and 4.14  respectively ) etc. Chapter 4 provides for the creation of two bodies; these 
are described in Section 5.5 of this document.  
Box 3.1 Rules of Origin at a Glance  
Basic Characteristics  
 
• Product -specific rules: 
o  CTC, generally a change of heading  
o  RVC 
o in fewer cases, CTC and requirements concerning a minimum RVC , or 
o for Chapters 27 -29 and for headings 39.01 to 39.14 , a chemical reaction or a CTC is required  
 
• No diagonal cumulation  is provided . 
 
• Tolerance rules.  
 
• No outward -processing authorized.  
 
                                                
20 Valuation of non -originating materials on c.i.f. basis, subject to adjustments in accordance with the 
WTO Agreement on Implementation of Article VII of the GATT 1994.  WT/REG377/1  
 
- 35 - 
 
  3.3  Export duties and charges, and quantitative restrictions  
3.37.   Article 3.10 imposes a general prohibition on duties and charges connected to exports, unless 
these are also applied on the domestic consumption of the same goods, or otherwise included in the 
exceptions list of the Annex to Artic le 3.10. Under that Annex, only Colombia is authorized to apply 
taxes on the export of coffee and emeralds.21 
3.38.   Article 3.6 includes a general prohibition on restrictions on exports by the other Party, 
including quantitative restrictions (QRs); the exceptions  are as follows:  
a. QRs authorized under Article XI of the GATT 1994 and its interpretative notes, which 
are made an integral part of the Protocol ; 
b. price undertakings agreed in the context of dumping and subsidies proceedings; and  
c. measures listed in the Annex  to Articles 3.3 and 3.6. Among  the Parties, these include 
export control measures on coffee from Colombia and on products referred to in 
paragraph 3.4.c. for Mexico . 
The Article also explicitly prohibits voluntary export restrictions except those authorized under 
Article  18 or 8.1 of the WTO Subsidies and Anti -dumping Agreements, respectively.  
 
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanit ary and phytosanitary measures  
3.39.   Chapter 6 of the Protocol covers Sanitary and Phytosanitary Measures (SPS). It incorporates 
into the Protocol the Parties' existing rights and obligations under the WTO SPS Agreement 
(Article  6.4). Measures that go beyond the  WTO SPS Agreement include:  
a. the Parties foresee the adoption of a work programme on harmonization (Article 6.5) . 
As of March 2019, this  has not yet been developed. For the development of these 
provisions, phytosanitary electronic certification is being app lied among the P acific 
Alliance  countries ;  
b. the Parties commit to reply in a timely manner to any request for equivalence from 
another Party (Article 6.6, based on working methodology to be jointly agreed. As of 
March 2019, no request has been submitted  and no progress has been made on these 
issues;  
c. risk assessment disciplines (Article 6.7) increase transparency compared to the WTO 
Agreement and allow Parties to comment upon risk assessment undertaken. Only 
"strictly necessary" information may be required f or risk assessment, and the exporting 
Party may provide scientific evidence to help in that assessment . Without prejudice to 
the adoption of emergency measures , any review of a risk assessment shall not be used 
as a reason for blocking imports of the produ ct concerned , nor shall that be the case 
when the importing Party is undertaking a review of its sanitary or phytosanitary  
measure, provided the importing Party allowed the importation of that product at the 
time of initiating the revi ew; 
d. as regards recognition of pest - or disease -free areas or areas of low pest or disease 
prevalence (Article 6.8), the Parties commit to apply among themselves the "Guidelines 
to further the practical implementation of Article 6 of the Agreement on the Applic ation 
of Sanitary and Phytosanitary Measures", and agree to recognise the Parties' self -
                                                
21 In its bilateral RTAs with Pacific Alliance countries, Mexico had the right to apply taxes on exports of 
certain basic foodstuff. That was also the case for Colombia in its RTA with Mexico.  WT/REG377/1  
 
- 36 - 
 
  declaration in compliance with international standards, guidelines or recommendations, 
as a base factor to initiate the application of an expedited process ; 
e. additional transparency/exchange of information provisions apply, as specified in detail 
in Article 6.9;  
f. a Party is to reply within 45 days to the extent possible to any other Party's request for 
information as regards control, inspection and approval procedures (Art icle 6.10); and  
g. the right of an importing Party to conduct a verification of the exporting Party 's 
competent authority and its inspection and control systems . The terms and conditions 
of the verification visit are to be jointly agreed (Article 6.11). A del ay in such verification 
shall not lead to the suspension of trade in the good concerned , if trade in such good 
was previously authorized . 
3.40.   A specific mechanism for bilateral cooperation and technical assistance is established 
(Article  6.12). Article 6.13 clarifies that a Party may request that technical consultations be held 
regarding specific trade concerns related to the application of  a SPS measure. These consultations 
are to take place within 15 days from the request; if within 30 d ays from the request no satisfactory 
solution is found, these consultations are deemed to replace dispute settlement consultations under 
Article 17.5 , if the Parties so agree . 
3.4.1.2   Technical barriers to trade  
3.41.   Chapter 7 of the Protocol covers Technical Barriers to Trade (TBT) measures. It incorporates 
the WTO TBT Agreement  (Article 17.3) ; also , when determining whether international standards, 
guides and recommendations exist with relation to Articles 2, 5 and Annex 3 of the WTO TBT 
Agreement, the Parties will ap ply the principles developed within the WTO Committee on TBT 
(Article  7.4).  
3.42.   On cooperation and trade facilitation (Article 7.5), the Parties commit to identify, develop and 
promote trade-facilitating initiatives , including on understanding their respectiv e systems and 
promoting equivalence and harmonization  with international standards . Mechanisms that help to 
increas e regulatory coherence and eliminat e unnecessary technical obstacles to trade within the 
region are also identified. In this regard, the Part ies recognize that the election of a mechanism in a 
particular regulatory context shall depend on a variety of factors  Additional transparency provisions 
are also included in this Article, in particular by requiring a Party that has blocked an import from 
another Party due to non-compliance with a technical regulation to notify as soon as possible the 
importer or the customs agent the reasons for that action. The Parties will also exchange information 
on the use of standards in connection with technical reg ulations and to the extent possible provide, 
upon request from other Parties, the standards referred to in draft technical regulations.  
3.43.   A Party is to explain, upon request by another Party, the reasons for not accepting  a technical 
regulation of the latte r as equivalent or for not accepting  the result of a conformity assessment 
developed in the territory of the other Party  (Articles 7.6 and 7.7:4).  
3.44.   Salient features of Article 7.7 on conformity assessment procedures are as follows:  
a. conformity assessment procedures of the Parties are to be made compatible to the 
greatest extent possible , in accordance with international standards and with the 
provisions of th e Chapter ; 
b. national treatment applies for accreditation, approval, authorizat ion and recognition of 
other Parties' conformity assessment bodies. In cases of a negative decision, to accredit, 
approve, authorize or recognize a conformity assessment body in the territory of the 
other Parties  the Party is to explain, upon request of an other Party, the reasons for its 
rejection ; 
c. encouragement for the conclusion of mutual recognition agreements on the results of 
conformity assessment; and  WT/REG377/1  
 
- 37 - 
 
  d. possibility to request information on issues such as the technical competence of 
conformity assessmen t bodies.  
3.45.   Transparency provisions are included in Article 7.8; they foresee which TBT -related issues are 
to be notified and establishes the possibility of electronic notification through the contact points 
established in each Party. Following a notificatio n, the other Parties shall be granted at least 60 days 
to submit written comments on proposed technical regulations and conformity assessment 
procedures. Further, paragraph 7 states that the "reasonable interval" of Article 2.12 of the WTO 
TBT Agreement sh all be normally interpreted as a period not shorter than six months, except in 
cases where these would preclude the fulfilment of legitimate objectives. Article 7.10 sets out a 
maximum time -frame of 60 days for a Party to respond to a request from another Party based on 
the provisions of the Chapter , while encouraging their submission within 30 days.  
3.46.   Article 7.8 also regulates how replies to requests from a Party concerning draft versions of 
technical regulations or conformity assessment procedures  are to be dealt with. Also, i n accordance 
with its domestic procedures, Parties shall allow interested persons of another Party to participate 
in the development of TBT measures on terms no less favourable than its own nationals.  
3.47.   The First Modifying Protocol add s an Annex 1 entitled "Elimination of TBT  for cosmetic 
products". The Annex foresees the harmonization of the definition of cosmetic products and of  
labelling requirements based on international standards  for these products , as well as  the 
requirements of Good Manufacturing Practices, the establishment of a market surveillance system, 
the elimination of "Certificate of Free Sale" and  the alignment of  their system of input reviews.  
3.48.   The Second Modifying Protocol will provide the  Free Trade Commission the fac ulty of 
approving sectoral annexes negotiated under the TBT Chapter . 
3.49.    Finally, the establishment of a Committee on TBT (Article 7.9) is provided for. I ts main 
functions include monitoring the implementation and administration of the Chapter ; consulting on 
matters arising under the Chapter ; reviewing the Chapter in light of developments under the WTO 
TBT Agreement; addressing issues Parties raise with respect to the development, adoption, 
application or enforcement of standards, technical regulations or conformity assessment procedures; 
enhancing cooperation in the development and improvement of standards, technical regulations or 
conformity assessment procedures; facilitating sectoral cooperation among governmental and non -
governmental conformity assessment bodies and exchanging information on developments in non -
governmental, regional and multilateral fora; and taking any other steps Parties consider useful in 
assisting them in meeting the objectives of implementing the TBT Agreement and facilitating trade 
among the Parties.  
3.4.2   Safeguard mechan isms  
3.50.   The Protocol's provision on safeguard measures is related to balance -of-payments problems; 
this is addressed in Section 5.3.1. The imposition of safeguard measures on intra -Party trade for 
any other reason is therefore prohibited, except in accordance  with the WTO Agreement on 
Safeguards.  
3.4.3   Anti-dumping and countervailing measures  
3.51.   The Protocol has no specific provision relating to anti -dumping and countervailing measures 
beyond what is referred to in paragraph 3.5 above . 
3.4.4   Subsidies and State -aid 
3.52.   The Parties prohibit the use of export subsidies on agricultural goods traded between them 
and commit to work towards the multilateral elimination of export subsidies o n agricultural products 
in the WTO context (Article 3.16).  WT/REG377/1  
 
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  3.4.5   Customs -related procedures  
3.4.5.1   Granting of preferential treatment  
3.53.   Customs -related procedures in terms of granting preferential tariff treatment are dealt with 
in Section B of Chapter 4 on Rules of Origin . More general customs procedures Parties shall adopt 
or maintain for the clearance of goods as well as trade facilitation measures are dealt with in 
Chapter  5. 
3.54.   The Certificate of Origin (Article 4.17) – either paper or electronic22 - which provides t he basis 
for the granting of preferential tariff treatment, is issued by the competent authority of the exporting 
Party, upon request by the exporter. In that context, the aforementioned authorities may request 
additional information, visit the exporter's or producer's premises or perform any other appropriate 
control.  The Certificate of Origin is valid for one year from its emission and can cover  for one or 
more goods . The names and stamps of the competent authorities as well as the register of names 
and s ignatures of the  accredited officials will be notified by each Party.  
3.55.   A Certificate of Origin is not required when the import value is under USD 1,000 or any higher 
value established by the importing Party, unless there was an aim at circumventing certifi cation 
obligations or when the importing Party exempts a good from the certificate of origin requirement 
(Article 4.21).  
3.56.   Rules relating to verifying the origin of a good are contained in Article 4.26. The competent 
authority of the importing Party can conduct the verification, through the following means : 
a. requesting information from the competent authority of the exporting Party as well as 
from the importer;  
b. request ing information from, or submission of a written questionnaire to, exporters or 
producers  in the territory of the exporting Party, through the competent authority of 
the exporting Party. Questionnaires are to be answered within 30 days from the date of 
receipt, extendable by 30 days upon request. Even when answered, additional 
information may still be requested; replies are due 30 days from the day after receipt 
of the notification. In case of delay or unsatisfactory replies, the importing Party may 
deny preferential tariff treatment further to a decision to that effect;  
c. a verification visit of  the installation of the exporter/producer in the territory of the other 
Party, for the purpose of examining the records and documents and inspect the 
production facilities and processes , upon a prior written notification to be accepted in 
writing by the e xporter or the producer to be visited . If no confirmation is received 
within 30 days from receipt of the notification, the importing Party may deny preferential 
tariff treatment on the good subject to verification. The exporter or producer may 
request, wit hin 15 days from receipt of the notification, a postponement of the visit for 
a period up to 30 days; and  
d. any other procedure mutually agreed by the Parties.  
3.57.   Obligations with respect to imports and exports are contained in Articles 4.22 and 4.24, 
respectiv ely. Rules relating to confidentiality are included in Article 4.28.  
3.58.   The result of the verification, including its reasoning, shall be communicated by the competent 
authority of the importing Party to the competent authority for the issuance of the certifi cates of 
origin of the exporting Party  within 365 days from the beginning of the verification process; failure 
to do so will result in granting preferential treatment. Each Party may apply criminal, civil or 
administrative sanctions in accordance with Arti cle 4.27  for the violation of its legislation  and 
regulations related to the provisions of Chapter 4 . In cases where the competent authority for the 
verification of origin of the importing Party determines through a verification process that the 
                                                
22 Annex 4.17 includes the Certificate of Origin as well as instructions for filling it. See the procedures 
included in Decision No 4 of the Free Trade Commission, adopted in June 2017. 
https://alianzapacifico.net/download -category/protocolo -adicional -al-acuerdo -marco/  WT/REG377/1  
 
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  exporter o r producer has provided more than once false or incorrect information on the good's origin, 
the customs authority of the importing Party may suspend preferential tariff treatment of identical 
goods from the same exporter or producer until it can prove that  it fulfils the requirements of 
Chapter  4. 
3.4.5.2   Trade facilitation  
3.59.   Trade facilitation provisions, dealt with in Section A of Chapter 5, go beyond the obligations 
of the WTO Agreement on Trade Facilitation. The o bligations include inter alia :  
a. publication of cus toms legislation and the existence of enquiry points. The confidential 
nature of information clearly identified as such shall be preserved;  
b. Parties' procedures foreseeing the release of goods within 48 hours from arrival 
whenever possible (Article 5.4), at  the entry -point and prior to the payment of duties 
and charges (proof of financial guarantee may however be requested). For expedited 
shipments (Article 5.7), clearance shall normally be within six hours from the 
presentation of the documentation and upon  arrival of the goods;  
c. the use of automatic/electronic means so as to expedite the release of goods, on the 
basis of international regulations  (Article 5.5) ; 
d. the adoption of risk management systems based on best practices (Article 5.6). Risk 
management sys tems are to concentrate inspection on high risk goods while low risk 
goods are to benefit from simplified clearance and movement;  
e. expedited shipments shall normally be free of duties up to the threshold specified in 
domestic legislation, but in the case of  restricted goods duties may be applied  (Article 
5.7);  
f. promotin g the implementation  of "Authorized Economic Operators" (AEOs) and 
agreements for their mutual recognition  (Article 5. 8);  
g. the establishment of a "Single Window for Foreign Trade" in each Party (Article 5.9) ; 
Annex 5.9 provides the framework for ensuring their interoperability among Parties;  
h. ensuring access to administrative and judicial reviews (Article 5.10);  
i. advanced rulings (Article 5.12) for tariff classification, origin of the good, t he customs 
valuation method to be used and any other subject the Parties might have agreed upon. 
Detailed provisions are further specified, including for cases when advanced ruling may 
be denied . 
3.4.5.3   Customs cooperation and mutual assistance in customs matters  
3.60.   Customs cooperation is dealt with in Section B of Chapter 5. It provides for cooperation and 
mutual assistance of Parties' customs authorities on customs matters, on the basis of detailed 
conditions and procedures specified therein. Customs cooperation ex tends to the exchange of 
information and technical cooperation and capacity -building aimed at strengthening the Parties' 
customs management. Areas for cooperation include training on trade facilitation, exchange of trade 
statistics, preventing illicit oper ations, research, development and testing of new customs 
procedures and enforcement, communications technology, etc.  
3.5  Sector -specific provisions on trade in goods  
3.5.1    Agriculture  
3.61.   Besides the provision regarding agricultural export subsidies (see paragraph  3.52.    above ), 
there is no other sector -specific provision in the Protocol.  WT/REG377/1  
 
- 40 - 
 
  3.5.2   Cosmetics  
3.62.   As indicated in paragraph 3.47 above , specific rules have been designed relating to TBT 
measures for cosmetic products. Based on Article 7.11, the Parties may negotiate specific rules, in 
the form of annexes, based on the disciplines of the TBT Chapter. Those rules shall be integral part 
of that Chapter.  
4  PROVISIONS ON TRADE IN SERVICES  
4.1  Scope and definitions  
4.1.  Trade in services is governed by Chapter 9 (Cross -Border Trade in Services) together with 
Chapter 11 on Financial Services; Invest ments are covered by Chapter 10. Chapter  12 on Maritime 
Transport and Chapter 14 on Telecommunications provide disciplines specific to these sectors. In 
case of incompatibility between Chapter 10 and any other Chapter, the other Chapter will take 
precedenc e to the extent of the incompatibility (Article 10.3).  
4.2.  Chapter 9 applies to measures affecting trade in services adopted or maintained by one Party 
affecting the cross -border supply of service from services suppliers of another Party, at the federal, 
regional and municipal levels, and by non -governmental bodies in the exercise of powers delegated 
by government authorities. Three out of the four GATS modes of supply - namely cross -border trade, 
consumption abroad and temporary movement of natural persons - are covered in Chapter  9 
(Article  9.1). Mode 3 on right of establishment/commercial presence is covered in the Investment 
Chapter, though market access, transparency and domestic regulation disciplines applying to the 
right of establishment in the context o f an investment are those of Chapter 9 (but not with respect 
to dispute settlement , Article 9.2:4) .  
4.3.  Chapter 9 do es not apply  to: 
a. financial services;  
b. as in the GATS, the following cross -border trade in services are excluded from the 
Chapter's coverage:  
i. air services, including domestic and international air transportation services, 
whether scheduled or non -scheduled, or to related  services  in support of air 
services , other than  aircraft repair and maintenance services  during which an 
aircraft is withdrawn from services , special ty air services, the selling and 
marketing of air transport services and computer reservation systems services;  
and 
ii. services supplied in the exercise of Governmental authority on a non -commercial  
basis and not in competition with another service supplier;  
c. Government procurement; and  
d. subsidies or grants granted by one Party or a State enterprise, including Government -
supported loans, guarantees and insurances  (Article 9.2:3) . 
4.4.  Chapter 9 does not im pose any obligation on the Parties with respect to a national of another 
Party seeking access to its employment market or already employed on a permanent basis in its 
territory, nor confer any right on that national with respect to that access or employmen t (Article 
9.2:3) .23  
4.5.  Chapter 10 on Investments defines investment and covered investment (Article 10.1) . 
Investment includes every  asset  that an investor owns or control s, directly or indirectly , that has 
characteristics of an investment; an illustrative l ist of assets is also provided.  Covered investment is 
                                                
23 It is clearly stated that nothing in the Chapter shall be interpreted as imposing any Party any 
obligation as regards migratio n measures.  WT/REG377/1  
 
- 41 - 
 
  defined as  an investment in exist ence as of the date of entry into force of the Protocol or those 
established, acquired or expanded thereafter. The Chapter (Article 10.2) applies to:  
a. measures adopted or  maintained by a Party relating to (i) investors of another Party; 
(ii) covered investments; and (iii) all investments in the territory of a Party with respect 
to Article 10 .8 (Performance Requirements ) and Article 10.31 (Investment and 
Measures related to  Health, Environment and other Regulatory Objectives) ; 
b. measures adopted or maintained by a Party relating to the posted bond or financial 
security, to the extent that the bond or financial security is a covered investment ; and  
c. a State -owned enterprise or any other person, whenever any of them operate through 
a regulatory, administrative or governmental authority delegated by a Party.  
4.6.  The following are excluded from the scope  of Chapter 10:  
a. measures adopted or maintained by a Party relating to another Party 's financial 
institutions, investors of another Party  and their investments  in financial institutions in 
the territory  of a Party as defined in Article 11.1 ; and  
b. acts, facts or situations that ceased to exist before  the entry into force of the Protocol . 
4.7.  For greater certainty , nothing in th e Chapter shall be interpreted as imposing on any Party an  
obligation to privatize any investment that it owns or control nor to prohibit a Party from designating  
or establishing a monopoly . However, the Chapter applies to  measures adopted or maintained by a 
Party to designate or establish a monopoly.   
4.8.  Article 10.10 allows for a Party to adopt or maintain non -conforming measures to certain 
obligations of the Chapter in sectors that  a Party list in their  Annex es I or II to the Protocol. In this 
Factual Presentation, the detailed information presented is generally limited to the scope of the GATS 
as it refers to investment only as it relates to the right of establishment; a brief overview of other 
investment -related discipline s is however included in Section 4.3.7. 
4.9.  Chapter 11 on Financial Services applies to measures adopted or maintained by a Party related 
to (a) financial institutions of another Party; (b)  investors of another Party, and their investments, 
in financial institutions in the Party's territory; and (c) cross -border trade in financial services 
(Article  11.2). In case of incompatibility between this Chapter and any other clau se, the former 
prevails to the extent of the incompatibility. Certain provisions from Chapters 9 and 10 also appl y 
to financial services provided th ey are incorporated in Chapter 11; these are:  
a. Articles 9.16 and 10.13 ( Denial of benefits), as well as Artic les 10.11  (Transfers) , 10.12  
(Expropriation and Compensation) , 10.14 (Special Formalities and Information 
Requirements)  and 10.31  (Investment and Measures on Health, Environment and Other 
Regulatory Objectives) ;  
b. Section B of Chapter 10 on the mechanism fo r the settlement of disputes between a 
Party and an investor of another Party  solely for claims that a Party has breached 
Articles 10.11, 10.12, 10.13 or 10.14 ; and  
c. Article 9.13 (Transfers and Payments) with respect to those sectors in which there are 
commitments  in Annex 11.6.  
4.10.   Chapter 11 excludes:  
a. activities  or services forming part of a public retirement plan  or statutory system of 
social security; and  
b. other activities  or services  conducted for the account or with the guarantee or using the 
financial resources  of the Party , including  its public entities;  WT/REG377/1  
 
- 42 - 
 
  but it applies to the activities  or services mentioned above to the extent  that these have been open 
to competition from private financial enterprises. Horizontal notes of Colombia, Mexico and Peru in 
the financial services annexes provide further clarification on these issues.  
4.11.   The Protocol's financial services disciplines are presented in Section 4.6.1 below.  
4.2  Denial of benefits  
4.12.   Under Articles 9.16, 10.13 and 11.2:4, a Party  may deny the benefits provi ded in the relevant 
Chapter to a cross -border service supplier or to an investor of another Party, if  the service i s being 
supplied by, or the investment of such an investor is, an enterprise owned or controlled by persons 
of a third party or from a Party denying such benefits and the enterprise has no substantial business 
operations in its territory.  
4.13.   Prior notification  of the denial of benefits is required in cases of cross -border trade in services.  
4.14.   The Protocol does not contain an express definition of the scope of the term "substantial 
business operations" or of the issues related to "control".  
4.3  General provisions on  trade in services  
4.15.   The Protocol uses a "negative list approach" (see paragraph  4.31.    below ), except in financial 
services where a hybrid approach is used . The  following non -conforming measures constitute 
exceptions to the general provisions described in the sub -sections below (as per Articles 9.7, 10.10 
and 11.10):  
a. existing measures, as well as their continuation, renewal or modification, provided their 
level of non -conformity is not increased - i.e. the "ratchet" clause, as follows:  
i. for financial services, those listed in Section A of Annex III;  
ii. for all other trade in services , including investments,  covered by the Protocol, 
those applied by national or federa l governments listed in Annex I as well as at 
the state/regional level by Mexico. Finally, all non -conforming measures applied 
at the local or municipal level of government are exempted;  
b. existing and future measures applied in any sector, sub -sector or ac tivities included in 
Section B of Annex III with respect to financial services, and in Annex II for all other 
trade in services , including investments,  covered by the Protocol  (Article 11.9:4) ; and  
c. finally, those national treatment or MFN non -conforming me asures listed in either 
Annexes I or II will also apply to financial services to the extent the 
measure/sector/subsector or activity specified therein is covered under the Financial 
Services Chapter.  
4.3.1   Market access  
4.16.   In relation to cross -border trade in servi ces (Chapter 9), a Party shall not adopt or maintain, 
on the basis of either a regional subdivision or its entire territory, measures that impose the types 
of limitations covered by Paragraphs 2(a) to 2(e) of Article XVI of the GATS (Article 9.6).  
4.17.   The gen eral prohibition in the GATS on foreign equity limitations  on investment from the other 
Party is generally maintained, given that national treatment appl ies to investments and investors of 
the other Party.  
4.3.2   National treatment and MFN  
4.18.   The Parties accord to service providers of another Party treatment no less favourable than 
that accord ed, in like circumstances, to their own service providers (Article 9.3). As for financial 
services, national treatment (Article 11.3) applies as follows:  WT/REG377/1  
 
- 43 - 
 
  a. to investors, financia l institutions or investments of an investor of another Party in a 
financial institution, in relation to establishment, acquisition, expansion, management, 
conduct, operation, and sale or other disposition; and  
b. as regards cross -border trade in financial se rvices, only to those sectors for which there 
are commitments in Annex 11.6.  
4.19.   The Parties accord to service providers of another Party treatment no less favourable than 
that accord ed, in like circumstances, to service providers of a ny other Party or a  non-Party (Article 
9.4). MFN treatment also applies to an investor, a financial institution, an investment of an investor 
of another Party in a financial institution, and a cross -border financial service supplier of  a non -Party 
(Article 11.4).  
4.20.   As regards to investment, national and MFN treatment are applicable to the Parties' investors 
and covered investments with respect to the establishment, acquisition, expansion, management, 
conduct, operation and sale or other disposition of an investment in a Party's te rritory (Articles  10.4 
and 10.5). The MFN provision does not encompass international dispute resolution procedures or 
mechanisms provided for in other international trade or investment agreements.   
4.21.   In the case of a regional level of government, national tr eatment means treatment that is no 
less favourable than the most favourable treatment accorded , in like circumstances, by the regional 
government to investors  and to investment of investors, of the Party  of which it forms  a part. 
4.3.3    Local  presence  
4.22.   The Partie s may not require , as a condition for the cross -border provision of a service , that a 
service provider of another Party establish or maintain a representative office or an enterprise in its 
territory, or be resident, in its territory (Article 9.5).  
4.23.   In the case of financial services, the right of establishment in a Party shall be guaranteed for 
the other Party's investor in a financial institution, subject to the following (Article 11.5):  
a. the establishment  will be in accordance with domestic legislation at t he time of 
establishment, but free of juridical form or numerical restrictions.24 Conditions for the 
establishment of the type of entity chosen by another Party's investor may however be 
imposed;  
b. subject to national treatment obligations, a Party may impos e terms and conditions for 
the establishment of additional financial institutions by another Party's investors,  and 
the institutional and juridical form required for the supply of specific financial services 
or the operation of specific activities;  
c. right o f establishment includes the acquisition of existing entities; and  
d. subject to national treatment obligations, while a Party may prohibit a specific financial 
service  or activity, it cannot completely reserve a whole sector/sub -sector.  
4.3.4   Movement of natural p ersons  
4.24.   The Protocol does not contain specific disciplines relating to the movement of natural persons, 
beyond its coverage in the GATS under mode 4 commitments . Thus, the provisions of the relevant 
bilateral agreements apply in this context .  
4.3.5   Performance requirements  
4.25.   Article 10.8 of the Protocol prohibits the application of performance requirements with respect 
to the establishment, acquisition, expansion, management, conduct, operation and sale or other 
                                                
24 "Numerical restrictions" include quotas, monopolies, exclusive right or economic needs test.  WT/REG377/1  
 
- 44 - 
 
  disposition of an investment by an investor of a Par ty or a non -party in its territory.25 The Parties 
are also prohibited from conditioning the grant of an advantage related to an investment in their 
territory by an investor of another Party or a non -party , on certain performance requirements, unless 
the req uirement is to locate production, supply a service, train or employ workers, construct or 
expand particular facilities, or carry out research and development in their territories.  
4.26.   Exceptions to the general prohibition o n performance requirements are as follows:26  
a. transfer of technology , a production process or other proprietary knowledge 
requirements when in accordance with Article s 31 or 39 of the WTO Agreement on 
Trade -Related Aspects of Intellectual Property Rights, or  transfer of technology when a 
requirement is imposed , or the commitment or undertaking is enforced by a court, 
administrative tribunal or competition authority to remedy a practice determined after 
judicial or administrative process to be anticompetitive under the Party 's competition 
laws;  
b. measures not applied in an arbitrary or unjustifiable manner, and which do not 
constitute a disguised restriction on international trade or investmen t, necessary to : (i) 
secure compliance with laws and regulations that a re not inconsistent with the Protocol ; 
(ii) protect human, animal or plant life or health; or (iii) related to the conservation of 
living or non -living exhaustible natural resources , when applied in the context of export 
promotion and external support prog rammes ;27 
c. in the case of Government procurement ;28 and 
d. when applied to determine the origin of a good when claiming preferential treatment .29 
4.3.6   Senior managers and board of directors  
4.27.   A Party may not require that an enterprise of that Party that is a covered inv estment appoint 
individuals of a particular nationality to senior management positions. A Party may, however, require 
that a majority of the board of directors, or a committee of an enterprise of that Party that is a 
covered investment , be of a particular nationality or resident in the territory of the Party, provided 
that the requirement does not materially impair the ability of the investor to exercise control over 
its investment (Article 10.9).  
4.28.   A Party may not require a financial institution from another  Party to employ natural persons 
of any particular nationality as senior managerial or other essential personnel. Moreover, a Party 
may not require that more than a simple majority of the board of directors of a financial institution 
of the other Party be composed of nationals of the Party or natural persons residing in the territory 
of the Party (Article 11.9).  
4.3.7   Other investment -related provisions  
4.29.   In addition Chapter 10 includes provisions dealing with the granting of the minimum standard 
of treatment  accor ding to customary international law , including fair and equitable treatment  and 
                                                
25 The performance requirements prohibit ed under Article 12.6  are: (a) to export a given level or 
percentage of goods or services; (b) to achieve a gi ven level or percentage of domestic content; (c) to 
purchase, use or accord a preference to goods produced in its territory, or to purchase goods from persons in 
its territory; (d) to relate in any way the volume or value of imports to the volume or value of exports or to the 
amount of foreign exchange inflows associated with such investment; (e) to restrict sales of goods or services 
in its territory that such investment produces or supplies by relating such sales to the volume or value of its 
exports or f oreign exchange earnings; (f) to transfer technology, a production process or other proprietary 
knowledge to a person in its territ ory, except in certain cases; and  (g) to supply exclusively from the territory 
of the Party the goods that such investment pr oduces or the services it  exports . 
26 Exceptions to clearly -identified prohibitions; see footnotes 27-29 below.  
27 This exception only applies to performance requirements paragraphs 1(a), 1(b), 2(a) and 2(b) of 
Article 10.8.  
28 This exception only applies to performance requirements mentioned in paragraphs 1(b), 1(c), 1(f), 
1(g), 2(a) and 2(b) of Article 10.8.  
29 This exception only applies to performance requirements mentioned in paragraphs 2(a) and 2(b) of 
Article 10.8.  WT/REG377/1  
 
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  full protection and security (Article 10.6); treatment in case of armed conflict (Article 10.7); transfers 
(Article 10.11); expropriation and compensation (Article 10.12); spec ial formalities and information 
requirements (Article 10.14); corporate social responsibility policies (Article 10.30);  measures  
related to health, environment and other regulatory objectives (Article 10.31) and a fully -fledged 
investor -State dispute settlement (ISDS) mechanism (Articles 10.15 -10.27).  
4.30.   Annexes to Chapter 10 related to Chile and Mexico carve out certain measures from  the scope 
and application of the Chapter . For Chile, these include measures related to the Annex on Transfers, 
which makes reference to transfers under Law 18.840 of the Central Bank of Chile and Annex on 
Decree Law No. 600 of 197430 (Foreign Investment St atue) . For Mexico, these are the decisions 
made by Mexico's National Commission on Foreign Investment s regarding foreign acquisition  or 
establishment in restricted activities, and authorizations for foreign equity above 49%.  
4.4  Liberalization commitments  
4.31.   The liberalization of trade in services and investment follows a "negative list" approach, which 
means that provisions in Chapters 9 (Cross -Border Trade in Services) and 10 (Investments) apply 
to all sectors, unless otherwise specified in the Parties' lists of  reservations. Liberalization of financial 
services (Chapter 11) is hybrid – a positive list of committed sectors and a negative list of 
reservations (see Section 4.6.1.).  
4.32.   Annexes I and II to the Protocol  contain the reservations on existing and futures me asures 
with respect to nati onal and MFN treatment, market access, local presence, performance 
requirements, and senior management and board of directors in cross -border trade in services and 
investments. Annex III lists reservations for financial services on existing and future measures with 
respect to national and MFN treatment, right of establishment, cross -border trade and senior 
management and board of directors. Reservations with respect to national and MFN treatment in 
Annexes I and II also apply to f inancial services, to the extent that the measure or activity in the 
reservation is covered by Chapter 14 (Article 11.10:3 ). 
4.33.   In an effort to harmonize the listing of their non -conforming measures, the Parties have 
agreed on a number of clarifications that are included in paragraphs 6 and 5 to the Explanatory 
Notes to Annexes I and II, respectively.31 
4.4.1   Services liberalization under existing RTAs among the Parties  
4.34.   All of the existing bilateral agreements among the Parties  also cover trade i n services . Table 
4.1 provides a very summary presentation of the coverage of these RTAs and the Pacific Alliance in 
terms of trade in services.32 
                                                
30 This is  a special voluntary foreign investment scheme that may be chosen by foreign investors to 
bring capital into Chile , instead of Chapter  XIV of the Central  Bank's Compendium of Foreign Exchange 
Regulations . 
31 a. No need to list formalities such as registration, licence, etc. provided local presence is not required ;  
b. no need to list fisheries because  this is not a service ; c. nationality requirements for pilots in air and 
maritime transport is not considered as non -conforming measure to senior management and board of 
directors; d. nationality requirements for workers in general including air and marit ime transport is not 
considered as non -conforming measure to "performance requirement"; e . local presence in order to obtain a 
concession or to develop a concession is not considered as non -conforming to local presence requirements ; 
and f. measures that re gulate the structure of public services are not non -conforming measures to market 
access.  
32 The Andean Community is the most far -reaching RTA  on trade in services , liberalizing trade in all 
services except financial services and certain audiovisual service s – both of which temporary exempted from 
liberalization up to end June 2019.   WT/REG377/1  
 
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  Table 4.1 Services liberalization within bilateral RTAs (2016) and the Pacific Alliance  
RTA Pacific Alliance  Chile -
Colombia  Chile -
Mexico  Peru -
Chile  Colombia -
Mexico  Colombia -
Peru (Andean 
Community)  Peru -
Mexico  
Party  
CHL 
COL 
MEX 
PER 
CHL 
COL 
CHL 
MEX 
CHL 
PER 
COL 
MEX 
COL 
PER 
MEX 
PER 
Business      
            
Communication      
            
Construction 
and related 
engineering      
            
Distribution      
            
Educational      
            
Environmental      
        
    
Financial            
      
Health related 
and social      
            
Tourism and 
travel related      
            
Recreational, 
cultural and 
sporting      
            
Transport      
            
Other                  
Note:  In red, services sectors in which commitments have not been made.  
Source:  WTO, based on Annexes to the relevant Agreements/Protocols and Decisions Nos 510, 772, 800, 
803 y 820 of the Andean Community.  
 
4.4.2   Chile  
4.35.   In its GATS schedule, Chile has specific GATS commitments in five of the 1 2 general sectors.  
4.36.   Chile's GA TS MFN exemptions cover measures establishing dispute settlement procedures in 
bilateral treaties on the protection of investment; reciprocal measures on maritime transport - in 
particular freight; national treatment for suppliers from signatories of the 1 977 International Land 
Transport Convention; and national treatment for certain co -produced cinematographic works. 
Under the Protocol, Chile takes MFN reservations on existing measures related to certain 
communication and audiovisual services (press agenci es, television and radio broadcasting), 
introducing reciprocity conditionalities. Moreover, MFN -related general reservations are registered 
for existing international treaties as well as future measures in the application of treaties granting 
preferential treatment on aviation, fishing and maritime services, including salvage. A general 
reservation is also registered for preferences granted to economically or socially disadvantaged 
minorities as well as to the original ethnic groups. Chile also has MFN rese rvations for certain 
communication services, fishing related services, social services, environmental services; and 
cultural industries (linked to products, publishing and distribution of books; periodicals; movies; 
videos; music; as well as activities rel ated to radio, television, cable, and satellite transmissions). 
Some of these reservations also cover national treatment and/or local presence . 
4.37.   In terms of horizontal limitations, GATS limitations on foreign ownership over "State land"33 
and agricultural land - reserved for Chilean natural or juridical persons - are maintained in the 
Protocol; these are also reserved in terms of future measures. The GATS requir ement that  at least 
85% of the total employees in enterprises with more than 25 employees be Chileans is also 
maintained under the Protocol34 (the competent authorities may however determine that the 85% 
does not apply for certain technicians). The GATS limitation o n temporary entry of services suppliers 
into Chilean territory - two years, extendable for another two years – is not included in the Protocol; 
the provisions of the bilateral RTAs apply instead , where applicable . Horizontal reservations related 
                                                
33 Defined as State -owned land up to a distance of ten kilometres from the border and up to a distance 
of five kilometres from the coastline . 
34 A similar reservation is also app licable to local presence.  WT/REG377/1  
 
- 47 - 
 
  to the adoption of existing and/or future measures establishing rights or pref erences for original 
ethnic groups, and the protection of minority groups are also made. Restrictions on transferring 
foreign capital abroad for the first three years after entry into Chile ha ve been removed under the 
Protocol, while remaining subject to r estrictions described in Annex  10.11 (Transfers).35  
4.38.   Other Annex II reservations taken by Chile include the right to apply any future national 
treatment and limitations on senior managers and board s of directors regarding the sale or disposal 
of assets in s tate enterprises or government entities. Chile also took a MFN reservation in all sectors, 
reserving the right to give preferential treatment to countries under any previous international 
Protocol, as well as for any future international agreements on avia tion, fisheries, and maritime 
matters, including salvage. A final quasi horizontal limitation refers to Chile's reservation to apply in 
the future market access restrictions in all sectors except for 32 sectors/subsectors listed in 
reservation 18 to Annex II (represented with an "*" in Table 4.2. below).  
4.4.2.1   Sector -specific commitments  
The following section identifies some of the main differences, by sector, between Chile's GATS 
schedule and its sector -specific commitments under the Protocol. It should also be  read in 
conjunction with the Chile's lists of non -conforming measures contained in Annexes I, II and III of 
the Protocol. Table  4.2 compares Chile's sectoral commitments under the Protocol and under its 
GATS schedule for modes 1 -3, excluding horizontal me asures . 
Table 4.2 Chile's sector -specific liberalization for mode 1 -3 under the Protocol  
Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  PROTOCOL  
Compared 
to the 
GATS  Existing  
non-
conforming 
measure(s)  Reservation(s)  
for future 
measures  
1. Business services      
A. Professional  Services  Partial  Similar  ✓  * 
B. Computer  and Related  Services  --- New   
C. Research  and Development  Services  --- Improved  ✓  
D. Real  Estate  Services  --- New   
E. Rental/Leasing  Services  without Operators  Partial  Improved    
F. Other  Business  Services  Partial  Improved  ✓  ✓ *  
2. Communication services      
A. Postal  services  --- New  * 
B. Courier  services  --- New  * 
C. Telecommunication  services  Partial  Improved  ✓ ✓ *  
D. Audiovisual  services  --- New ✓ ✓ *  
E. Other  --- New   
3. Construction and related engineering 
services      
A. General  construction  work for buildings  --- New  ✓ * 
B. General  construction  work for civil 
Engineering  --- New  ✓ * 
C. Installation  and assembly  work  --- New  ✓ * 
D. Building  completion  and finishing  work  --- New  ✓ * 
E. Other  --- New  ✓ * 
4. Distribution services      
A. Commission  agents'  services  --- New   
B. Wholesale  trade services  --- New   
C. Retailing  services  --- New   
D. Franchising  --- New   
E. Other  --- New   
5. Education services      
A. Primary education services  --- New  ✓ * 
B. Secondary education services  --- New  ✓ * 
C. Higher education services  --- New  ✓ * 
D. Adult education  --- New  ✓ * 
E. Other education services  --- New  ✓ * 
                                                
35 This Annex states that the restrictions are those of the relevant bilateral RTAs.  WT/REG377/1  
 
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  Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  PROTOCOL  
Compared 
to the 
GATS  Existing  
non-
conforming 
measure(s)  Reservation(s)  
for future 
measures  
6. Environmental services      
A. Sewage services  --- New  * 
B. Refuse disposal services  --- New  * 
C. Sanitation and similar services  --- New  * 
D. Other  --- New ✓ * 
7. Financial services      
A. All insurance  and insurance -
related  services  Partial  Improved    
B. Banking  and other  financial  services  Partial  Improved    
C. Other  --- New   
8. Health related and social services      
A. Hospital services  --- New  * 
B. Other Human Health Services  --- New  * 
C. Social Services  --- New  ✓ * 
D. Other  --- New  * 
9. Tourism and travel related services      
A. Hotels  and restaurants (including catering)  Partial  Improved    
B. Travel  agencies  and tour operators 
services  Partial  Improved    
C. Tourist  guides  services  Partial  Improved    
D. Other  --- New   
10. Recreational and cultural and 
sporting services      
A. Entertainment  services  --- New ✓ ✓ 
B. News agency services  --- New ✓  
C. Libraries, archives, museums and other 
cultural services  --- New  ✓ 
D. Sporting and other recreational services  --- New  * 
E. Other  --- New   
11. Transport services      
A. Maritime Transport Services  --- New ✓ * 
B. Internal Waterways Transport  --- New ✓ * 
C. Air  Transport  Services  Partial  Improved  ✓ * 
D. Space  Transport  --- New  * 
E. Rail  Transport  Services  --- New  * 
F. Road  Transport  Services  --- New ✓ ✓ * 
G. Pipeline  Transport  --- New  * 
H. Services  auxiliary  to all modes  of transport  --- New  * 
I. Other  Transport  Services  --- New  * 
12. Other services not included 
elsewhere  --- New   
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in the 
Table.  
---: No commitments under the GATS.  
✓: Reservation listed in Annexes I and/or II to the Protocol.  
*: Reserved the right to impose QRs.  
Improved: Overall improved commitments made under the Protocol as compared to those under the GATS.  
New: New commitments made under the Protocol (Full or partial, with or without limitations). "New" can, in 
most cases, be seen as "improved".  
Partial:  GATS commitments subject to some limitation(s) under market access or national treatment, under 
any of the three modes.  
Similar:  Similar commitments (Protocol vs. GATS); though possibly, in specific individual cas es, with limited 
improvements and/or limited additional reservations.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/CHL), prepared by the 
Secretariat  and Chile's Schedules annexed to the Protocol.  
4.40.   With respect to sector -specif ic commitments, Chile has improved its GATS liberalization 
commitments in a number of sectors. The following were fully liberalized under the Pacific Alliance: 
computer  and related  services, real  estate  services, rental/leasing  services  without operators; other 
communication services; all of distribution services and tourism and travel related services; and 
other recreational and cultural and sporting services. Of these, only tourism and travel related WT/REG377/1  
 
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  services were partially committed under the GATS. In ad dition, the following sectors – for which 
there are no GATS commit ments  - were liberalized though Chile has maintained  the possibility of 
applying any of the quantitative restrictions otherwise forbidden (marked with an "*" in the table 
above): postal and courier services; sewage, refuse disposal and sanitation and similar services; 
hospital services, other human health services, other health related and social services; sporting 
and other recreational services; space, rail and pipeline transport  services, services  auxiliary  to all 
modes  of transport and other  transport  services.  
4.41.   On business services, Chile expands its GATS commitments to cover all sub -sectors, although 
with a number of limitations for existing and future measures.  Legal services, which under the GATS 
were only partially liberalized as regards international and trade law, have been liberalized for 
foreigners provided their studies have been fully accomplished in Chile. Limitations also apply in 
some other professiona l services - such as accounting and auditing, engineering and integrated 
engineering, and legal services - and some other business services, such as printing and publishing, 
services incidental to fishing, and investigation and security. Research and devel opment (R&D) 
services, for which Chile has no GATS commitments, are liberalized under the Protocol provided that 
authorization by the relevant authority is obtained for specific research activities in certain areas of 
the Chilean territory. Overall, limita tions applied in business sectors generally require Pacific Alliance 
service suppliers to be granted an authorization or to be locally established.  
4.42.   Under the Protocol, Chile has liberalized its basic telecommunication services, including local 
services - which under the GATS (as well as its other bilateral RTAs) normally only covered long 
distance services. While these may remain subject to QRs, Annex II reservations have not been 
taken with respect to local services. Chile also has introduced commitments in audiovisual services 
(not covered under the GATS), though it has certain limitations on existing and future measures –
establishment requirements for juridical persons, nationality and residency requirements for 
managerial positions  for radio, TV, etc . Licences for free reception of radio -broadcasting services to 
companies with more than 10% of foreign capital  are granted  only under conditions of reciprocity. 
40% of programmes in public open television channels are to be of domestic origin.  
4.43.   Education ser vices, not included in Chile's GATS commitments, is covered under the Protocol, 
though there is a general reservation for possible future measures in case any public financing is 
involved. The entire sector may however be subject to market access restricti ons. 
4.44.   Chile has no commitments on environmental services under the GATS, while under the 
Protocol it only registers an existing national treatment limitation in connection with services related 
to nuclear energy.  
4.45.   The financial services sector (bound by Chile under the GATS with some limitations) is 
included in the Protocol; commitments are scheduled in Annex III  - eight in Section A and seven in 
Section B.  Chile's horizontal limitations under the Pacific Alliance mirror those under the GATS, by 
prescribi ng the form of commercial presence for entities in the services sectors. While Chile improves 
its coverage particularly for banking services, a number of limitations and restrictions are 
maintained; they affect in particular local presence and national tre atment. Limitations on future 
measures also refer to all sectors and affect all of modes 1, 2 and 3.  
4.46.   Under the Protocol, the whole sector of recreational, cultural and sporting services  is covered , 
but Chile reserves existing measures for some entertainmen t services, news agency services, and 
sporting and other recreational services.  
4.47.   With respect to transportation services, Chile's WTO commitments are limited to certain 
auxiliary air transport services. Under the Protocol, Chile reserves the right to apply  non-conforming 
measures on air, land, and water transport services – e.g. registration for aircrafts and vessels by 
natural or juridical persons and local presence. Nationality requirements apply for managerial 
positions, crew members, captains and owners  of vessels, and for majority capital ownership. 
Foreign personnel engaged in air transportation services must also obtain a licence in Chile or have 
the licence obtained in another country recognized: such recognition may occur through an 
international ar rangement and reciprocity. Similar restrictions on national treatment and local 
presence, as well as the application of the principle of reciprocity, apply to water transport services, 
with cabotage for freight under 900 tonnes reserved for Chilean compani es. Port activities are 
reserved for nationals or juridical persons legally constituted and principally domiciled in Chile. Local WT/REG377/1  
 
- 50 - 
 
  land transportation services cannot be provided by foreign natural or juridical persons, which may 
only supply international s ervices. However, international transportation services within the 
territories of Chile and Peru is only opened to companie s with local presence in these countries.  
4.4.3    Colombia  
4.48.   Colombia's GATS schedule covers five of the 1 2 sectors defined in the Services Se ctoral 
Classification List.  
4.49.   Colombia's horizontal limitations under the Protocol generally mirror those under the GATS. 
The GATS limitation on property owned by foreigner s in coastal and border land and insular areas  is 
maintained  in Annex II to the Proto col. GATS local presence requirement s for insular areas is also 
maintained in Annex I. GATS mode 4 horizontal limitation is not included in the Protocol; however, 
as previously noted, mode 4 is dealt with under the bilateral RTAs. The GATS horizontal limit ation 
on the participation of foreign  investment in services related to the processing, disposition or disposal 
of toxic, hazardous or radioactive waste not produced in Colombia remains restricted as a sector -
specific limitation. The Protocol includes two new horizontal restrictions on national treatment, 
limiting foreign portfolio investments in securities and the acquisition of shares and assets of an 
existing State enterprise or governmental entity.  
4.50.   Other Annex II multi -sectoral reservations taken by Co lombia include any market access 
restriction in sectors listed in the Annex (mostly unbound under the GATS , and represented with an 
"*" in Table 4.3. below).  Colombia further reserves the right to adopt any non -conforming measure 
on social services and wit h respect to socially or economically disadvantaged minorities and ethnic 
groups and to  indigenous groups . A reservation to apply any national and MFN treatment non -
conforming measure in "cultural industries" - which include audiovisual, distribution, ente rtaining, 
news agencies, and cultural services as well as certain activities falling under "other business 
services" such as advertising, printing, and publishing services – is also listed. National treatment 
and performance requirements reservations have also been taken with respect to the artistic and 
handicraft industries, and a national treatment reservation applies to intangible cultural heritage.  
4.51.   Under Annex II, Colombia has taken an MFN reservation to grant differential treatment to 
countries under a n existing or future international agreement involving aviation, fisheries and 
maritime matters (including salvage).  
4.4.3.1   Sector -specific commitments  
4.52.   Table 4.3 presents Colombia's sectoral commitments under the Protocol as compared to its 
GATS schedule for modes 1 -3, excluding horizontal measures.  
Table 4.3 Colombia's sector -specific liberalization for mode 1 -3 under the Protocol  
Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  PROTOCOL  
Compared 
to the 
GATS  Existing  
Non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  
1. Business services      
A. Professional  Services  Partial  Improved  ✓ ✓ * 
B. Computer  and Related  Services  Partial  Improved    
C. Research  and Development  Services  --- New ✓ ✓ 
D. Real  Estate  Services  --- New   
E. Rental/Leasing  Services  without 
Operators  Partial  Improved    
F. Other  Business  Services  Partial  Improved  ✓ ✓ * 
2. Communication services      
A. Postal  services  --- New ✓  
B. Courier  services  --- New ✓  
C. Telecommunication  services  Partial  Improved  ✓  
D. Audiovisual  services  --- New ✓ ✓ 
E. Other  --- New   WT/REG377/1  
 
- 51 - 
 
  Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  PROTOCOL  
Compared 
to the 
GATS  Existing  
Non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  
3. Construction and related 
engineering services      
A. General  construction  work for buildings  Partial  Improved    
B. General  construction  work for civil 
Engineering  Partial  Improved    
C. Installation  and assembly  work  Partial  Improved    
D. Building  completion  and finishing  work  --- New   
E. Other  Partial  Improved    
4. Distribution services      
A. Commission  agents'  services  --- New   
B. Wholesale  trade services  --- New  ✓ * 
C. Retailing  services  --- New  ✓ * 
D. Franchising  --- New   
E. Other  --- New   
5. Education services      
A. Primary education services  --- Improved   ✓ * 
B. Secondary education services  --- Improved   ✓ * 
C. Higher education services  --- Improved   ✓ 
D. Adult education  --- Improved   ✓ 
E. Other education services  --- Improved   ✓ 
6. Environmental services      
A. Sewage services  --- New ✓ ✓ * 
B. Refuse disposal services  --- New ✓ ✓ * 
C. Sanitation and similar services  --- New ✓ ✓ * 
D. Other  --- New  ✓ * 
7. Financial services      
A. All insurance  and insurance -
related  services  Partial  Improved  ✓ ✓ 
B. Banking  and other  financial  services  Partial  Improved  ✓ ✓ 
C. Other  --- Improved  ✓ ✓ 
8. Health related and social services      
A. Hospital services  --- Same   ✓ * 
B. Other Human Health Services  --- Same   ✓ * 
C. Social Services  --- Same   ✓ * 
D. Other  --- Same   ✓ * 
9. Tourism and travel related services      
A. Hotels  and restaurants (including 
catering)  Partial  Improved    
B. Travel  agencies  and tour operators 
services  Partial  Less  ✓  
C. Tourist  guides  services  --- Improved    
D. Other  --- Improved    
10. Recreational and cultural and 
sporting services      
A. Entertainment  services  --- Improved   ✓ 
B. News agency services  --- Improved  ✓ ✓ 
C. Libraries, archives, museums and other 
cultural services  --- Improved   ✓ * 
D. Sporting and other recreational services  --- Improved   ✓ * 
E. Other  --- Improved   ✓ 
11. Transport services      
A. Maritime Transport Services  --- New ✓  
B. Internal Waterways Transport  --- New ✓ ✓ 
C. Air Transport  Services  --- New ✓ ✓ 
D. Space  Transport  --- New ✓  
E. Rail  Transport  Services  --- New ✓ ✓ * 
F. Road  Transport  Services  --- New ✓ ✓ * 
G. Pipeline  Transport  --- New  ✓ * WT/REG377/1  
 
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  Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  PROTOCOL  
Compared 
to the 
GATS  Existing  
Non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  
H. Services  auxiliary  to all modes  of 
transport  --- New  ✓ * 
I. Other  Transport  Services  --- New  ✓ * 
12. Other services not included 
elsewhere  --- New   
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in the 
Table.   
---: No commitments under the GATS.  
✓: Reservation listed in Annexes I and/or II to the Protocol.  
*: Reserved the right to impose QRs.  
Improved: Overall improved commitments made under the Protocol as compared to those under the GATS.  
Less:  Overall more restrictions under the Protocol as compar ed to those under the GATS.  
New: New commitments made under the Protocol (Full or partial, with or without limitations). "New" can, in 
most cases, be seen as "improved".  
Partial:  GATS commitments subject to some limitation(s) under market access or natio nal treatment, under 
any of the three modes.  
Same:  Identical commitment as under the GATS.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/COL), prepared by the 
Secretariat and Colombia's Schedules annexed to the Protocol.  
4.53.   Colom bia's commitments under the Protocol are broader than in the GATS although it 
maintain s various reservations in particular in business, communications, financial and transport 
services. The following sectors have been fully liberalized: real estate service s, computer and related 
services, and rental/leasing services without operators, other communication services; all 
construction and related engineering services; commission agents' services, franchising and other 
distribution services; and hotels and resta urants, tourist guides services and other tourism services . 
4.54.   Under the Protocol, Colombia expands its GATS commitments on business services. Sectoral 
coverage of professional services ha s been extended to eight new activities so that all professional 
servic es are included but maintains reservations on accounting, legal, health -related services, and 
a general reservation on all professional activities. As an example, for public accounting services, 
the GATS market access requirement that 80% of the partners b e public accountants has been 
removed. However, reservations on national treatment, in the form of residency, experience, 
registration and qualification requirements continue to apply to public accountants. Local presence 
is required for research and devel opment services, services incidental to exploration and exploitation 
of minerals and hydrocarbons. In other business services, Colombia expands sectoral coverage by 
making full commitments in all subsectors except for those relating to fishing, mining, inv estigation, 
security, energy distribution, printing, publishing, advertising services and jewellery designing. In 
services incidental to fishing, Colombia reserves artisanal fishing for Colombians and requires that 
foreign flagged vessels enter in to a part nership with a Colombian firm to obtain a fishing permit. 
Moreover, the price of fishing permits is higher for foreign flagged vessels. This is more restrictive 
than its GATS commitments, where services relating to fishing are unrestricted. As regards mini ng 
and energy distribution supplied by Pacific Alliance service suppliers, the Protocol's reservations 
appear to be more restrictive than in the GATS , since they require foreign companies to establish a 
branch in  Colombia i n order to operate for periods longer  than one year (under the GATS no such 
limitation applies).  
4.55.   For communications services, Colombia added commitments in postal and courier services, 
and audiovisual services under the Protocol. However, the supply of postal and courier services is 
reserved for juridical persons established under domestic law. In the audiovisual sector, a domestic 
content requirement applies to the broadcasting of programmes for free-to-air, subscription, and 
community television.36 Licences for television services may b e awarded only to nationals and 
juridical persons established under Colombian law. For free -to-air television, the number of licences 
depends on an economic needs test, and foreign equity participation is permitted up to 40%. 
Licences are mandatory for rad io-broadcasting services and are also based on an economic needs 
                                                
36 In national, regional, local, and non-cable television domestic content may vary between 50 % and 
70% of total broadcast programmes on each chan nel on a daily basis, depending on the time . WT/REG377/1  
 
- 53 - 
 
  test. The projection and distribution of foreign movies in Colombian theatres remain subject to a 
fee. 
4.56.   The telecommunications market is open to competition from Pacific Alliance enterprises that 
are legally set up in Colombia and obtain a licence. In this sector, Colombia has eliminated all 
restrictions listed in its GATS schedule, including foreign equity limitation s; prohibition on call -back 
services; economic needs test for entry of new op erators providing national and international 
long-distance services; fulfilment of technical criteria for the supply of mobile telephony services; 
and restrictions on the number of suppliers of personal telecommunications services and trunking 
services. GA TS licence requirements for the routing of long -distance international traffic have been 
lifted.  
4.57.   In distribution services, reservations in wholesale and retailing services are those applied to 
cultural industries (e.g. distribution and sale of books) . Further, Colombia has also reserved the right 
to apply any market access restriction  in these two sub -sectors .  
4.58.   In education services, which are excluded from the GATS, Colombia has reserved the right to 
adopt or maintain any measure on market access for prima ry and secondary education services, and 
to apply legal entity requirements to providers of higher education services. Public education and 
training are also reserved for the State under the social services reservation.  
4.59.   Environmental services remain largel y excluded from liberalization - market access 
reservations may be taken in all sub -sectors on the basis of public interest; establishment and legal -
entity requirements apply to companies willing to provide the relevant domiciliary public services; 
and for eign investment in activities related to the processing and disposal of toxic, hazardous or 
radioactive waste not produced in Colombia is prohibited.  
4.60.   The f inancial services sector has multiple reservations under the Protocol – seven under 
Section A and 3 u nder Section B. All  the reservations in section B apply to all financial services, while 
that is the case for two reservations under Section A. Colombia made broader commitments in 
insurance and insurance -related services, as well as in banking and financi al services, as compared 
to its GATS commitments, which cover mainly mode 3 and only certain activities . In insurance and 
insurance -related services, while Colombia liberalized accident and health insurance services, which 
are excluded from the GATS, numer ous other limitations apply. In banking and financial services, 
Colombia also improve d its sectoral coverage by liberalizing (a) all payment and money transmission 
services; (b) asset and pension fund management services; (c) all forms of collective invest ment 
management services, custodial depository and trust services; and (d) settlement and clearing 
services for financial assets, derivative products and other negotiable instruments, all of which are 
excluded from the GATS. These remain however subject to  certain national treatment limitations.  
4.61.   Colombia did not undertake any commitments in health related and social services, which are 
covered under the Protocol by a broad reservation on social services.  
4.62.   Coverage of tourism has been expanded as compared to  the GATS, though for travel agencies 
and tour operator services – fully liberalized for modes 1 -3 in GATS but unbound under mode 4 - 
Colombia requires foreign nationals to be domiciled in Colombia to supply these services. This 
reservation is not listed i n its GATS schedule.  
4.63.   In recreational, cultural and sporting services, which is excluded from it GATS schedule, 
Colombia made partial commitments but maintain s reservations in all subsectors, including multi -
sector reservations on cultural industries, marke t access and domestic support. In news agency 
services, Colombia also applies nationality requirements to the director or manager of domestic 
newspapers covering domestic politics.  
4.64.   Colombia has no commitments in transportation services under the GATS. Whi le covered 
under the Protocol, numer ical limitations apply. There is a local presence requirement in public 
transportation services and multimodal transportation of cargo, within and from the territory of 
Colombia. The same reservation applies for maritime  and fluvial transportation, and nationality 
requirements are applicable for cabotage, pilotage, and composition of crews. Market access is 
restricted for the provision of port services, unless in exceptional circumstances. Only nationals or 
juridical pers ons organized under Colombian domestic law may supply specialty air services within WT/REG377/1  
 
- 54 - 
 
  the territory of Colombia and own and maintain real and effective control of an airplane registered 
to supply air transport services. The provision of land and fluvial tran sport services may also be 
subject to MFN  reservations, pursuant to any bilateral or multilateral international agreement signed 
after the date of entry into force of the Protocol.  
4.4.4   Mexico  
4.65.   Mexico's commitments under the Protocol are broader than in the GATS  although it maintain s 
various reservations at the federal but also at the state level.37  
4.66.   Mexico lists 10 horizontal reservations, half of which refer to existing non-conforming 
measures. The r eservations mainly affect investment, and mirror in a few cases the GATS. For 
instance, under both the Protocol and the GATS, Mexico prohibits foreigners from acquiring land 
along the country's borders and coasts; and reserves the positions related to the functioning of 
ships, aircrafts and trains for Mexican nationals. Some new reservations include nationality 
restrictions on the staff of micro -industry enterprises and cooperative production enterprises. Mexico 
also lists criteria to authorize foreign investments and allows without prior authorization foreign 
investments of up to 49% in a Mexican company operating in an unrestricted sector ; higher foreign 
equity is subject to authorization .38 Mexico  reserves the right to adopt or maintain any measure that 
grants differential t reatment to countries under existing or future international agreements for 
aviation, fisheries and maritime related matters (including salvage). It also reserves the right to 
grant any rights or preferences to socially or economically disadvantaged groups , and to adopt or 
maintain any market -access measure consistent with its obligations under GATS Article XVI. Finally, 
a quasi -horizontal  limitation refers to Mexico's reservation to apply in the future market access 
restrictions in all sectors except for s ectors/subsectors listed in reservation 9 to Annex II  
(represented with an "*" in Table 4.4. below) . 
4.4.4.1   Sector -specific commitments  
4.67.   Table 4.4 presents Mexico's sectoral commitments under the Protocol as compared to its GATS 
schedule for modes 1 -3, excluding horizontal measures.  
Table 4.4 Mexico's sector -specific liberalization for mode 1 -3 under the Protocol  
Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  PROTOCOL  
Compared 
to the 
GATS  Existing  
Non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  
1. Business services      
A. Professional  Services  Partial  Improved  ✓ * 
B. Computer  and Related  Services  Partial  Improved    
C. Research  and Development  Services  Partial  Improved   * 
D. Real  Estate  Services  --- New    
E. Rental/Leasing  Services  without Operators  Partial  Improved   * 
F. Other  Business  Services  --- New ✓ ✓* 
2. Communication services      
A. Postal  services  --- Same ✓ ✓* 
B. Courier  services  Partial  Same ✓ * 
C. Telecommunication  services  Partial  Improved  ✓ ✓* 
D. Audiovisual  services  Partial  Improved  ✓ * 
E. Other  --- New ✓ * 
                                                
37 There are a total of 101 non -conforming existing measures listed at the sub -federal level. The y cover  
all 32 Mexican states and applies mainly to retail, legal, architect, engineering and land transport servic es. 
38 This complements the GATS, which allows foreign investment in activities reserved for Mexican 
nationals only through neutral shares , which do not confer any voting rights or have limited corporate rights.  WT/REG377/1  
 
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  Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  PROTOCOL  
Compared 
to the 
GATS  Existing  
Non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  
3. Construction and related engineering 
services      
A. General  construction  work for buildings  Partial  Improved   * 
B. General  construction  work for civil 
Engineering  Partial  Improved  ✓ 
✓ * 
C. Installation  and assembly  work  --- New   * 
D. Building  completion  and finishing  work  Partial  Improved   * 
E. Other  Partial  Improved   * 
4. Distribution services      
A. Commission  agents'  services  --- New   
B. Wholesale  trade services  Partial  Improved    
C. Retailing  services  Partial  Improved  ✓ ✓ 
D. Franchising  --- New   
E. Other  --- New  * 
5. Education services      
A. Primary education services  Partial  Improved  ✓ ✓* 
B. Secondary education services  Partial  Improved  ✓ ✓* 
C. Higher education services  Partial  Improved  ✓ ✓* 
D. Adult education  --- Improved  ✓ ✓* 
E. Other education services  Partial  Improved   ✓* 
6. Environmental services      
A. Sewage services  --- New  * 
B. Refuse disposal services  --- New  * 
C. Sanitation and similar services  --- New  * 
D. Other  --- New  * 
7. Financial services      
A. All insurance  and insurance -
related  services  Partial  Improved  ✓ ✓* 
B. Banking  and other  financial  services  Partial  Improved  ✓ ✓* 
C. Other  Partial  Improved  ✓ ✓* 
8. Health related and social services      
A. Hospital services  Partial  Less  ✓* 
B. Other Human Health Services  Partial  Less  ✓* 
C. Social Services  --- Same  ✓* 
D. Other  --- Same  ✓* 
9. Tourism and travel related services      
A. Hotels  and restaurants (including catering)  Partial  Improved    
B. Travel  agencies  and tour operators services  Partial  Improved   * 
C. Tourist  guides  services  Partial  Improved   * 
D. Other  --- New  * 
10. Recreational and cultural and 
sporting services      
A. Entertainment  services  --- New   
B. News agency services  --- New   
C. Libraries, archives, museums and other 
cultural services  --- New   
D. Sporting and other recreational services  --- New  ✓ 
E. Other  --- New   * 
11. Transport services      
A. Maritime Transport Services  --- New ✓ ✓* 
B. Internal Waterways Transport  --- New ✓ ✓* 
C. Air  Transport  Services  Partial  Improved  ✓ ✓* 
D. Space  Transport  --- New ✓ * 
E. Rail  Transport  Services  --- New ✓ ✓* 
F. Road  Transport  Services  Partial  Improved  ✓ ✓* 
G. Pipeline  Transport  --- New ✓ ✓* WT/REG377/1  
 
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  Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  PROTOCOL  
Compared 
to the 
GATS  Existing  
Non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  
H. Services  auxiliary  to all modes  of transport  Partial  Improved  ✓ * 
I. Other  Transport  Services  Partial  Improved  ✓ * 
12. Other services not included elsewhere  Partial  Improved  ✓ * 
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments / limitatio ns not considered in the 
Table.  
---: No commitments under GATS.  
✓: Reservation listed in Annexes I and/or II to the Protocol.  
*: Reserved the right to impose QRs.  
Improved: Overall improved commitments made under the Protocol as compared to those under the GATS.  
Less:  Overall more restrictions under the Protocol as compared to those under the GATS.  
New: New commitments made under the Protocol (Full or partial, with or without limitations). "New" can, 
in most cases, be seen as "improved".  
Partial:  GATS commitments subject to some limitation(s) under market access  or national treatment, under 
any of the three modes  
Same:  Identical commitment as under the GATS.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/MEX), prepared by the 
Secretariat and Mexico's Schedules annexed to the Protocol.  
 
4.68.   Mexico's commitments under the Protocol are broader than in the GATS although it maintain s 
various reservations at the federal and state level.39 The following sectors have been fully liberalized: 
computer and related services, real estate services; commis sion agents' services, wholesale trade 
services, franchising ; hotels and restaurants ; entertainment services, news agency services, and 
libraries, archives, museums and other cultural services . Conversely, health related and social 
services remain complete ly closed to other Pacific Alliance services suppliers.  
4.69.   In business services, Mexico made broader commitments in all sub -sectors while maintaining 
reservations for professional and other business services. It added real estate services and other 
business s ervices, excluded from the GATS, to its list of bound activities and expanded the sectoral 
and modal coverage of the other sub -sectors, all restricted under the GATS. For instance, it bound 
mode 1 for rental/leasing services, added data base and software i mplementation services, and 
removed the limit of 49% on foreign participation in companies willing to provide research and 
development services. In professional services, six new activities have been fully liberalized - 
taxation, integrated engineering, ur ban planning and landscape architectural services and veterinary 
services, while legal and medical services are subject to  reservations  such as nationality and 
ownership restrictions to doctors, notaries and law firms. In another reservation with a broader  
scope, Mexico allows the provision of professional services by foreign professionals , based on 
reciprocity and conditional on other criteria such as establishment. In other business services, 
commitments have been expanded but reservations remain - mainly  foreign capital restrictions 
applying to scientific and technical consulting, fishing, manufacturing, mining, printing, agriculture, 
and energy distribution activities. The GATS restrictions on investment in the agricultural sector and 
on the nationality of customs brokers is also maintained.   
4.70.   Communication services are amongst the sectors that contain the largest number of 
reservations in the case of Mexico. Postal service s remain reserved for the State while courier 
services are reserved for Mexican nationals and enterprises. Capital participation by foreign 
Governments and State enterprises in Mexican companies providing any communication services is 
forbidden,40 and the provision of telegraphy and radiotelegraphy services is reserved for the  Mexican 
State . In telecommunications, Mexico expanded mainly the sectoral coverage of valued -added 
services (very limited under the GATS), but maintained most, if not all, of its GATS reservations for 
basic and value -added telecommunications services. For  instance, only Mexican companies and 
nationals can provide telecommunications services as a commercial agency or be granted a 
concession to conduct activities such as operating public telecommunication s networks. Foreign 
capital participation in concessio naire Mexican companies providing telephony services  except for 
                                                
39 There are a total of 101 non -conforming existing measures listed at the sub -federal level. The y cover  
all 32 Mexican states and applies mainly to retail, legal, architect, engineering and land transport services.  
40 This reservation also applies to transportation  services.  WT/REG377/1  
 
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  cellular telephony services  is limited to 49%; fo reign capital participation can be higher subject to 
authorization.  
4.71.   In audio -visual services, Mexico has expanded sectoral coverage and remove d some 
limitations, but the subsector remains subject to a number of reservations. For instance, the GATS 
foreign equity limitation for companies willing to provide film screening and production services has 
been removed and the required screen time for Mexican movies projected in theatres  has been 
reduced . On the other hand, a number of other nationality and performance requirements affecting 
mainly radio and television services are listed - e.g. only Mexican nationals or companies are allowed 
to provide a udio broadcasting and television services and install, operate or exploit public 
telecommunications networks to provide cable television and audio broadcasting services. In the 
case of cable television and audio broadcasting services, investors of the othe r Party or their 
investments may own up to 49% of the capital in a Mexican company willing to provide these 
services. Mexico also requires the use of the Spanish language for broadcast or cable television 
distribution of radio or television advertising, an d programming, unless otherwise authorized. 
Foreign radio or television announcers or presenters must obtain authorization to perform in Mexico.  
4.72.   In construction and related engineering services, Mexico undertook commitments in 
installation and assembly wo rk, excluded from the GATS, and expanded sectoral and modal coverage 
in the other remaining subsectors but maintains foreign investment restrictions in construction works 
for civil engineering, some of which mirror those under the GATS. In particular, Mexi co restricts 
foreign capital participation in companies engaged in the construction of public infrastructure such 
as roads, bridges, airports, heliports, pipelines, harbours, and railways.  
4.73.   In distribution services, a major restriction affects the distribut ion and sale of gasoline, diesel 
and lubricants, which are reserved for Mexican nationals and companies (including petrol stations), 
except for companies supplying fuel and lubricants to aircraft, vessels and railway equipment where 
foreign capital partici pation can be up to 49%. Mexico also reserves the right to adopt any measure 
regarding cross -border supply and investment in the oil and gas sector, including international trade 
activities .  
4.74.   In the area of private education, Mexico relaxes the GATS reservation on the ownership of 
educational institutions by allowing, subject to authorization, foreign capital participation above 
49%, which is the limit under the GATS. Mexico made no commitments  regarding public education 
which is covered by a broad reservation on social services. Under this reservation, Mexico can adopt 
or maintain any measure with respect to investment and cross -border trade in social services, 
including correctional services, income security and insurance, social security, social welfare, public 
education, public training, health, and childcare.   
4.75.   Mexico's commitments in financial services are broader than in the GATS but remain very 
limited as a number of reservations, largely reflecting those under the GATS, apply. S even 
reservations – five existing and two future - apply to the entire financial services sector; they include 
for example a foreign equity limitation of 49%, and a prohibition o n other Parties' financial 
institutio ns to establish a branch in Mexico . While sectoral coverage has been extended, they also 
remain subject to various limitations.  Life insurance services and related auxiliary services remain 
subject to a number of restrictions, and in non -life insurance, Me xico maintains a broad reservation 
that prohibits foreign companies from selling insurance to persons or companies located in Mexico 
or subject to Mexican legislation, unless they cannot be purchased locally, though foreign companies 
may be authorized to s ell international or travel insurance in its territory. Other reservations also 
apply in the insurance sector. Mexico has expanded sectoral coverage in banking and other financial 
services and removed the GATS prohibition o n foreign investment in credit unions – though limiting 
it to up to 10% of their capital. A number of restrictions, including nationality, authorization, and 
establishment requirements remain however in place in the banking sector.  
4.76.   Mexico did not take any f urther commitment s in health related and social services, which are 
subject under the Protocol to a broad reservation allowing the application of any measure affecting 
investment and cross -border trade in social services such as correctional services, inco me security 
and insurance, social security, social welfare, health (public and private) childcare services, as well WT/REG377/1  
 
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  as measures for providing law enforcement. Under the GATS, commitments in health related and 
social services are limited to certain activiti es and modes.41  
4.77.   In tourism and travel related services, Mexico made broader commitments by not listing any 
reservation under the Protocol and expanding sectoral and modal coverage. In particular, it removed 
its GATS limitation on the participation of forei gn capital for restaurants, cabarets, and nightclubs; 
and bound mode 1 for travel agencies, tour operators, and tourist guide services.  
4.78.   Mexico added recreational, cultural and sporting services to its list of commitments, without 
reservation s except for g ambling and betting services, for which it reserves the right to adopt or 
maintain any measure affecting their provision (either through investment or cross -border trade).  
4.79.   In transport services, Mexico expanded its sectoral coverage, but maintain s various  
reservations affecting the entire transport sector – which is one of the most restricted sector s. For 
instance, in maritime and internal waterways transport services, reservations include restrictions on 
foreign investment participation in Mexican compani es engaged in different types of maritime 
activities (e.g. port -related activities, inland navigation and cabotage). In rail transport services, 
Mexico applies nationality requirements to train crews and limits foreign participation in Mexican 
companies en gaged in the construction, operation and exploitation of railroads. Air transport, 
restricted under the GATS, remains subject to reservations but its coverage has been expanded to 
cover specialty air services, which are excluded from the GATS.  Reservations  include a foreign capital 
limitation at 49% - under the GATS the threshold is 30% - in Mexican companies that have been 
granted a concession to operate airports and heliports, with higher equity participation subject to 
authorization. Other equity and nat ionality requirements also apply. In road transport services, 
Mexico expands sectoral coverage but maintains reservations, in particular nationality requirements 
– e.g. the operation of a bus or truck station, and inter -city bus services, tourist transport ation 
services or truck services for the transportation of goods or passengers to or from Mexico, and within 
it – is reserved for Mexican nationals or companies.  
4.4.5   Peru  
4.80.   In its GATS schedule, Peru has made commitments in seven services sectors.  
4.81.   Peru's GATS MFN exemptions cover measures implementing its reciprocal labour agreements 
or on dual nationality; land and sea transport measures taken in the Andean context; land transport 
measures implementing the Convention on International Land Transport, the law pr omoting Latin 
American artists interpreting Latin American themes and certain measures designed to ensure 
reciprocity for certain financial intermediation services. Under the Protocol, Peru lists MFN non -
conforming measures on radio transmission services w ithin border areas, subject to authorization, 
for existing measures. MFN reservations are also registered for existing and future measures, in all 
sectors, that accord differential treatment to countries under any bilateral or multilateral agreements 
in force on, or signed prior to, the date of entry into force of the Protocol. The granting of differential 
treatment is also reserved for future bilateral or multilateral agreements involving aviation, fisheries, 
or maritime matters, including salvage.  
4.82.   As reg ards future measures, Peru reserves the right to adopt or maintain any measure 
according rights for the protection of indigenous, native and  peasant  communities and to deviate 
from obligations as regards social services. Future non -conforming measures coul d also be adopted 
in matters related to fishing; cultural industries; handicraft; audio -visual industries; jewellery and 
certain other artistic activities; water and sewage services; certain educational services; domestic 
and international land transportat ion of cargo or passengers in border areas; and public 
telecommunication services. The reservation on cultural industries apply to the distribution, 
wholesale trade and retailing services for books, magazines, periodicals or newspapers, as well as 
for audi o, music and video recordings . Peru has reserved the right to apply all future non -conforming 
measures at the federal, regional and municipal level.  
4.83.   Peru's horizontal limitations under the GATS are maintained in the Protocol: all employers in 
Peru, indepen dent of their activities or nationality, shall give preferential treatment to nationals 
when hiring; at least 80% of the staff of a company established in Peru shall be Peruvian, and that 
                                                
41 Under the GATS, Mexic o limits foreign capital participation to 49% in private hospital services, clinical 
laboratories and institutions providing selected medical services, and bound only mode 2.  WT/REG377/1  
 
- 59 - 
 
  shall represent at least 70% of the total payroll of the company; in vestment in a frontier area of 50 
km are reserved for nationals. Further, a quasi horizontal limitation in Annex II (reservation 17) 
allows Peru to apply market access limitations in all services sectors, except for some sectors/sub -
sectors for which modes  1, 2 and 3 are generally liberalized referred to with an "*" in Table 4.5).  
4.4.5.1   Sector -specific commitments  
4.84.   Table 4.5 presents Peru's sectoral commitments under the Protocol as compared to its GATS 
schedule for modes 1 -3, excluding horizontal measures.  
Table 4.5 Peru 's sector -specific liberalization for mode 1 -3 under the Protocol  
Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  PROTOCOL  
Compared 
to the 
GATS  Existing  
Non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  
1. Business services      
A. Professional  Services  Partial  Improved  ✓ ✓ * 
B. Computer  and Related  Services  --- New   
C. Research  and Development  Services  --- New ✓ * 
D. Real  Estate  Services  --- New   
E. Rental/Leasing  Services  without  Operators  Partial  Improved   * 
F. Other  Business  Services  Partial  Improved  ✓ ✓ * 
2. Communication services      
A. Postal  services  --- New  * 
B. Courier  services  --- New  * 
C. Telecommunication  services  Partial  Improved  ✓ ✓ * 
D. Audiovisual  services  --- New ✓ ✓ * 
E. Other  --- New  * 
3. Construction and related engineering 
services      
A. General  construction  work for buildings  --- New  * 
B. General  construction  work for civil  
Engineering  --- New  * 
C. Installation  and assembly  work  --- New  * 
D. Building  completion  and finishing  work  --- New  * 
E. Other  --- New  * 
4. Distribution services      
A. Commission  agents'  services  --- New   
B. Wholesale  trade services  Partial  Improved   ✓ 
C. Retailing  services  Partial  Improved   ✓ 
D. Franchising  --- New   
5. Education services      
A. Primary education services  --- New  ✓ * 
B. Secondary education services  --- New  ✓ * 
C. Higher education services  --- New  ✓ * 
D. Adult education  --- New  ✓ * 
E. Other education services  --- New  ✓ * 
6. Environmental services      
A. Sewage services  --- New  ✓ * 
B. Refuse disposal services  --- New  * 
C. Sanitation and similar services  --- New  ✓ * 
D. Other  --- New   
7. Financial services      
A. All insurance  and insurance -
related  services  Partial  Improved  ✓ ✓* 
B. Banking  and other  financial  services  Partial  Improved  ✓ ✓* 
C. Other  Partial  Improved  ✓ ✓* 
8. Health related and social services      
A. Hospital services  --- New  * 
B. Other Human Health Services  --- New  * 
C. Social Services  --- New  ✓ * 
D. Other  --- New  ✓ * 
9. Tourism and travel related services      
A. Hotels  and restaurants (including catering)  Partial  Improved    
B. Travel  agencies  and tour operators  services  Partial  Improved    
C. Tourist  guides  services  --- New   WT/REG377/1  
 
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  Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  PROTOCOL  
Compared 
to the 
GATS  Existing  
Non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  
D. Other  --- New   
10. Recreational and cultural and sporting 
services      
A. Entertainment  services  Partial  Improved  ✓ ✓ * 
B. News agency services  --- Improved    
C. Libraries, archives, museums and other 
cultural services  --- Improved    
D. Sporting and other recreational services  Partial  Improved  ✓  
E. Other  --- New  * 
11. Transport services      
A. Maritime Transport Services  Partial  Improved  ✓ * 
B. Internal Waterways Transport  Partial  Improved  ✓ * 
C. Air  Transport  Services  --- New ✓ * 
D. Space  Transport  --- New  * 
E. Rail  Transport  Services  --- New  * 
F. Road  Transport  Services  --- New ✓ ✓ * 
G. Pipeline  Transport  --- New  * 
H. Services  auxiliary  to all modes  of transport  --- New ✓ * 
I. Other  Transport  Services  --- New  * 
12. Other services not included 
elsewhere  --- New   
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in the 
Table.   
---: No commitments under the GATS.  
✓: Reservation listed in Annexes I and/or II to the Protocol.  
*: Reserved the right to impose QRs.  
Improved: Overall improved commitments made under the Protocol as compared to those under the GATS.  
New: New commitments made under the Protocol (Full or partia l, with or without limitations). "New" can, 
in most cases, be seen as "improved".  
Partial:  GATS commitments subject to some limitation(s) under market access or national treatment, under 
any of the three modes.  
Source:  Draft Consolidated GATS Schedule of  Specific Commitments (S/DCS/W/PER), prepared by the 
Secretariat and Peru's Schedules annexed to the Protocol.  
 
4.85.   Peru's sectoral liberalization under the Protocol goes beyond its GATS commitments, though  
it maintain s reservations at the central  level. The following sectors have been fully liberalized: 
computer and related services, real estate services; commission agents' services, franchising and 
other related distribution services; all tourism and travel related services; entertainment services , 
news agency services, and libraries, archives, museums and other cultural services. Postal and 
courier services; construction and related engineering services; refuse disposal services; health -
related services; space, pipeline and other transport service s, that are  not covered under the GATS, 
are liberalized except that the possibility to impose future QRs remains.  
4.86.   As regards business services, Peru covered some sub -sectors under the GATS; under the 
Protocol, all sub -sectors are included but some non -conforming measures – in particular nationality 
requirements - have been listed for some legal services, auditing and architectural services, R&D 
services, advertising services, services incidental to fishing, energy distribution, and investigation 
and securit y as well as for future measures in services incidental to fishing and printing and 
publishing. For these sectors, some market access is provided with few limitations (e.g. number of 
notaries related to the population).  
4.87.   Regarding communication services, P eru has covered under the GATS some 
telecommunication services only. Under the Protocol, commitments have been taken for all 
additional sub -sectors, subject however to limitations. Postal and courier services have been opened 
up but may be subject to quant itative restrictions. These apply to existing measures in 
telecommunication services, particularly on call -back services (as under the GATS) as well as on 
audio -visual services (through the cultural reservation). Market access limitations on 
telecommunicat ions are restricted to the need for having a concession, authorization or registr ation; 
for other communication services, Peru does not make  market access commitments.  WT/REG377/1  
 
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  4.88.   In distribution services, Peru broadens its commitments in wholesale trade and retailing  
services by expanding both the sectoral and modal coverage, while maintaining two reservations, in 
cultural industries and in handicrafts. Under the latter, Peru reserves the right to adopt or maintain 
any measure affecting the design, distribution, sale or exhibition of handicrafts.   
4.89.   In education services (excluded from the GATS), Peru reserves the right to maintain or 
introduce any measure relating to social services, including public education and public training 
services. It also reserves the right to adopt or maintain any measure regarding the provision of 
education services by individuals.  
4.90.   In environmental services (for which it has no GATS commitments), Peru reserves the right 
to adopt or maintain any measure with respect to local presence related to  public sewage services 
and sanitation.  
4.91.   Commitments in financial services are broader under the Protocol  than in Peru's GATS 
schedule, though restrictions continue to apply. In particular, Peru has reserved the right to subject 
the liberalization of cross -border trade in services to reciprocity from its Pacific Alliance partner. A 
broad reservation for future measures on social security is also listed as a financial service 
reservation. Nevertheless, Peru has made broader commitments in insurance and insura nce related 
services, by making commitments in mode 1 (unbound under the GATS)  and by expanding the 
sectoral coverage in modes 2 -3. For example, i n life, accident and health insurance services, it  adds 
commitments in mode 2 , expands sectoral coverage and r emoves the restrictions in mode 3. Like in 
the GATS, no commitments were made in mode 1.  Improvements are also made in non-life 
insurance , reinsurance and retrocession, and services auxiliary to insurance . Peru reserves the right 
to restrict the acquisitio n of obligatory insurance outside Peru, and to require that obligatory 
insurance be purchased from suppliers established in Peru.42 It also applies one restriction regarding 
the location of the capital of a subsidiary institution  and gra nts preferential tre atment to creditors 
domiciled in Peru in case of liquidation of a branch . Peru also made broader commitments in banking 
and other financial services, by liberalizing mode 2, unbound under the GATS and by removing the 
restriction in mode 3 regarding the acc eptance of deposits. In mode 1, largely unbound under the 
GATS, Peru made commitments in the provision and transfer of financial information and financial 
data processing and related software, and advisory and other auxiliary financial services excluding 
intermediation. Under the GATS, Peru allows only the transfer of information needed by a financial 
institution for its activities, without violating banking secrecy. Peru maintains four reservations, 
capital requirements for branches, preferential treatment  to entities with State participation, and a 
prohibition on the establishments of branches or agencies to supply services in the securit ies market 
or related to asset management.  
4.92.   Health related and social services, excluded from the GATS, are subject to a broad reservation 
with respect to future measures affecting services such as correctional services, social security, 
social welfare, health and childcare.  
4.93.   Under recreational and cultural and sporting services, only entertainment ser vices remain 
subject to nationality and wage requirements.  
4.94.   For transport services, Peru's specific commitments in the GATS are limited to passenger 
transportation for maritime transport services and internal waterways transport. In the Protocol, no 
additio nal market access commitments are taken in these sub -sectors, but in road transport and 
auxiliary transport services, Peru fully liberalizes modes 1 -3, while at the same time listing existing 
non-conforming measures for both sub -sectors. Non -conforming mea sures apply to freight 
transportation (for maritime and road transport services), support services for road transport 
services, and certain services auxiliary to all modes of transport (storage and warehouse services), 
and services related to passenger tra nsportation (maritime transport services and internal 
waterways transport).  
                                                
42 These restrictions do not apply to any insurance services allowed under  mode 1.  WT/REG377/1  
 
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  4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.95.   Article 9.9 of the Protocol mirrors to a large extent Article VI of the GATS and applies to all 
measures of general application affectin g trade in services, except for those covered by a 
reservation. It also foresees that any progress achieved in the GATS with respect to these questions 
may require an adaptation of disciplines in this Article.  
4.96.   The Protocol provides additional disciplines to those of the GATS, by specifying the tasks of 
the competent authorities in relation to the procedures involved for the granting of an authorization 
to supply a service as well as the information they are to p rovide when granting a licence or a 
qualification; ensuring that  the Parties organize the evaluation of titles or licenses within reasonable 
intervals and foresee appropriate deadlines; and that any tax associated with the granting of the 
authorization sha ll be reasonable, transparent and shall not by itself restrict the supply of the service.  
4.5.2   Recognition  
4.97.   Article 9.10 of the Protocol on Recognition of professional qualifications of service suppliers 
incorporates provisions that mirror those in paragraphs 1 to 3 of GATS Article VII. Additional 
disciplines are also provided, as follows:  
a. vis-à-vis other Parties, a non -MFN clause for any recognition granted by a Party to the 
qualification obtained in a non -party (paragraph 2);  
b. as provided for in Annex 9.10, the Parties are encouraged to develop standards and 
criteria for the mutual recognition of professional qualification s, on the basis of agreed 
guidelines.  As of March 2019, that ha d not yet been develop ed. The Sub -Committee on 
Services is to review the conform ity of such standards and criteria with the Protocol and 
inform the Administrative Commission of its conclusions. Disciplines are also provided 
regarding the granting of tempora ry licencing including for engineers. The "Facilitation 
Agreement for Temporary  Licensing " was concluded ; it defines criteria  for engineers  but 
does not cover mutual recognition of professional qualifications . The entry into  force of 
this Agreement is expected during the first semester of 2019 . The Services Sub -
Committee is to review  the implementation of the Annex once every three years.   
4.98.   If a Party recognizes a prudential measure of another Party or a non -party in the application 
of a measure covered by Chapter 11, this shall not be automatically extended to other Parties but 
they shall be granted adequate opportunity to consult in order to obtain such mutual recognition 
(Article 11.12) . 
4.5.3   Subsidies  
4.99.   Article 9.11 provides for the exchange of information regarding all types of governmental 
subsidies and grants, both present and future, provided to domestic services suppliers; the first of 
such exchange s of information is to take place within two years from the Protocol's entry into force.  
As of March 2019, that had not yet taken place.  Any progress achieved in the GATS with respect to 
these questions may require an adaptation of disciplines in this Article.  
4.5.4   Safeguards  
4.100.   The Protocol's provision on safeguard measures is related to balance -of-payments problems 
(see Section 5.3.1).  
4.6  Sector specific provisions on trade in services  
4.6.1    Financial se rvice s 
4.101.   A hybrid approach is used for the liberalization of the financial services sector, with a positive 
list of sub -sectors in which commitments are made and to which all the provisions described below 
apply, subject to the list of non -conforming measure s in Annex III . WT/REG377/1  
 
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  4.102.   Chapter 11 of the Protocol covers financial services and applies to measure s adopted or 
maintained by a Party relating to a financial institution of another Party; an investor of another Party, 
and an investment by that investor, in a finan cial institution in the Party's territory; and cross -border 
trade in financial services. In that context, Chapters 9 and 10 apply to such measures only to the 
extent that those Chapters are incorporated into Chapter 11 (see paragraph 4.9 above ). 
4.103.   In accordance with Article 11.6, e ach Party shall permit, under terms and conditions that 
accord national treatment, a cross -border financial service provi der from another Party to supply a 
financial service specified in Annex 11.6.  
4.104.   Each Party shall permit a financial institution from another Party to supply a new financial 
service that it would permit its own financial institutions, in like circumstances, t o supply under its 
domestic law. Nevertheless, each Party may determine the institutional and juridical form required 
for the supply of new financial service s and require authorization for the supply of such a service. 
Authorization may only be denied for prudential reasons (Article 11.7).  
4.105.   With regard to financial services exceptions, Article 11.11 makes clear that:  
a. nothing in the Protocol shall be interpreted as forbidding a Party to adopt or maintain 
prudential measures to protect investors, depositors, claimants or persons to whom a 
fiduciary duty is owed by a financial institution or a cross -border financial service 
provider; to maintain the safety, soundness, integrity or financial responsibility of an 
individual financial institution or cross -border f inancial service provider; and to ensure 
the integrity and stability of the financial system;  
b. none of the Protocol's provisions apply to non -discriminatory measures of general 
application adopted by a public entity in the field of credit or currency polic ies, except 
for the prohibition of performance requirements as regards investment and transfers 
and payments as regards cross -border trade in services and investment;  
c. notwithstanding provisions on transfers and payments, a Party may prevent or limit 
transf ers by a financial institution or cross -border financial service provider to a related 
person/entity, subject to the precise disciplines contained in paragraph 3 of 
Article  11.11; and  
d. a Party may adopt or enforce a measure necessary to secure compliance wi th its laws 
or regulations that is not inconsistent with Chapter 11, provided it is not applied in a 
manner that would constitute a means of arbitrary or unjustifiable discrimination 
between countries where like conditions prevail, or a disguised restricti on on investment 
in a financial institution or on cross -border trade in financial services.  
4.106.   Each Party commits to promoting regulatory transparency in financial services. Article 11.13 
tailors certain provisions in Chapter 15 (Transparency) and specifies transparency obligations 
applicable to financial services.  
4.107.   Other disciplines includ e provisions  on payment systems and sharing of information.  
4.108.   The Protocol establishes a Committee on Financial Services (Article 11.18); its main tasks 
are to monitor the app lication of the provisions in this Chapter, to consider any issues submitted by 
the Parties, to help to resolve any dispute that may arise, to facilitate the exchange of information 
between the supervising authorities of each Party, and to assist in matter s regarding prudential 
measures. The Committee will meet at least once a year , or as often as it agrees, in order to evaluate 
the operation of th e Additional Protocol with regard to financial services.  As of March 2019, t he 
Committee on Financial Services had not met since no matter or procedure ha d been identified as 
requiring consideration . 
4.109.   The general provisions on consultations and dispute settlement under Chapter 17 are 
modified and tailored for financials services, in Articles 11.19 regarding consulta tions, 11.20 for 
disputes between Parties, and 11.21 for ISDS.  WT/REG377/1  
 
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  4.6.2   Maritime Transport Services  
4.110.   Chapter 12 of the Protocol covers  Maritime Transport , including  measures affecting 
international maritime transport services and connected services supplied by a p rovider from another 
Party. Article 12.2 confirms that the disciplines of Chapters 9 and 10 apply to the supply of maritime 
transport. With the exception of the latter, in case of any incompatibility between Chapter 12 and 
another Chapter of the Protocol, the provisions of Chapter 12 will prevail. The Parties reaffirm their 
rights and obligations agreed upon in the context of the relevant United Nations legal instruments 
they are parties to.  
4.111.   The Chapter contains a number of disciplines aim ed at facilitating  maritime transport, 
including cooperation in the adoption of best practices. Disciplines include rules regarding  recognition 
of a vessels ' nationality and the travel document s of vessel crew s, electronic exchange of 
information, and contact  points. Emphas is is also placed on improved cooperation in maritime 
transport services .  
4.112.   Article 12.4 provides that a Party is to provide national treatment in its ports to vessels from 
the other Parties for free access, stay and departure, use of port s and related facilities, access to 
docks, and loading and unloading, etc. Article 12.5 specified that a  maritime service provider of one 
Party that operates in the territory of another Party has the right to establish a representation in the 
latter's territory, in accordan ce with its legislation . 
4.6.3   Telecommunications  services  
4.113.   Chapter 14 of the Protocol is on Telecommunications; some of its Articles were modified and 
additional disciplines were incorporated by the First Modifying Protocol.43 
4.114.   The Chapter's disciplines apply to m easures relating to public telecommunications networks 
and services, including for its access and use, as well as the obligations of their providers. It does 
not apply to measures affecting broadcast and cable distribution of radio or television programmin g, 
except by providing that access to public telecommunications networks shall be guaranteed to 
companies supplying such services (Article 14.2). Chapter 14 contains inter alia  provisions on the 
access to and use of public telecommunications networks and services, interconnection with major 
suppliers,  independent  regulatory bodies, universal service, procedures for authorizations, allocation 
and use of scarce resources, resoluti on of domestic telecommunication disputes, and transparency. 
Most of these provisions, except for competitive safeguards, regulatory bodies, and universal 
service, are in general more detailed or broader than those under the GATS Telecommunications 
Annex a nd Reference Paper, which has been adopted by all four Parties. In addition, Chapter 14 
introduces new provisions on flexibility on the choice of technologies.  
4.115.   Article 14.5 requires that the Parties shall ensure that  the suppliers of public 
telecommunicat ions services in their respective territories provide number portability on a timely 
basis, and on reasonable and non -discriminatory terms and conditions, subject to the following 
flexibilities : 
a. for Colombia, this requirement only applies to mobile service s; for fixed telephone 
services, it will apply only to the extent that this is both technically and economically 
feasible (footnote 4 to the Article);  
b. for Peru:  
i. this applies to mobile services and , to fixed telephone services , within  three years 
after the  entry into force of the Additional Protocol ; and 
                                                
43 Articles 14.20 and 14.22(a) were amended, while Articles 14.3 bis, 14.6 bis, 14.6 ter, 14.6 quater , 
14.15 bis, 14.19 bis and 14.21 bis were added . As of March 2019, however these were not yet in force: for 
Chile, the executive resolution is pending, Colombia and Peru are yet to ratify it, while for Mexico the Senate 
has ratified it, see http://www.dof.gob.mx/nota_detalle.php?codigo=5511678&fecha=30/01/2018 . WT/REG377/1  
 
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  ii. this does not apply to rural telephone suppliers (Annex to Chapter 14, see 
paragraph  4.117.    below ). 
4.116.   New disci plines provided for in the Modifying Protocol can be summarized as follows:  
a. respectively, the new Articles 14.3 bis, 14.6 bis, 14.6 ter, 14.6 quate r, 14.15  bis, 
14.19  bis and 14.21 bis promote the use of networks in case of an emergency ; call for 
the possibility of blocking stolen or lost mobile terminals ; foster cooperation on  
broadband;  require the Parties to establish measures to ensure Internet neutrality ; lists 
areas for mutual and technical co -operation ; require the Parties to estab lish monitoring 
and surveillance measures as regards the quality of public telecommunication services ; 
and establish the rights of final users of telecommunications services;  
b. the amendment to Article 14.20 invites the Parties to work towards reducing tari ffs for 
roaming among  their territories; and  
c. the new wording of Article 14.22(a) makes clear that dispute settlement cannot be 
applied to the new Articles 14.3 bis, 14.6 bis, 14.6 ter, 14.6 quater . 
4.117.   An Annex to Chapter 14 clarifies that in the case of Peru,  rural telephone suppliers may not  
be considered as a "major supplier"; a specific definition is provided for a "rural area". Accordingly , 
the obligations with respect to major suppliers in Article 14.12 (Provisioning and Pricing of Leased 
Circuits Service s), Article 14.13 (Co -Location) and Article 14.14 (Access to Poles, Ducts, Conduits, 
and Rights -of-way) may also not apply to the facilities deployed by public  suppliers in rural areas.  
4.118.   In the event of any inconsistency between this Chapter and other Chapters in the Protocol , 
this Chapter will prevail.  
5  GENERAL PROVISIONS O F THE PROTOCOL  
5.1  Transparency  
5.1.  For the purpose of transparency, Chapter 15 describes the provisions regarding the Parties' 
contact  points; publication, notification and provision of information, as well as administrative 
procedures ensuring for a consistent, impartial and reasonable app lication of publication 
requirements . It also provides for tribunals or procedures for the purpose of the prompt r eview and, 
where appropriate, c orrection of final administrative actions concerning matters covered by the 
Protocol  (Article 15.6) . 
5.2.  Annex 15.2  provides the Parties' contact points to facilitate communication on any matter 
covered by the Protocol. At the request of a Party, the contact point of the other Party will indicate 
the office or official responsible for the matter and assist, as necessar y, in facilitating communication 
with the requesting Party.  
5.3.  The Parties will also ensure , pursuant to their domestic law,  that their laws, regulations, 
procedures and administrative  rulings of general application  regarding any  matters  covered by the 
Protoc ol are published promptly or made available to the Parties and interested persons  
(Article  15.3) . Each Party will, to the extent possible, publish in advance any administrative  ruling  
of general application it proposes to adopt and provide interested perso ns of the other Party a 
reasonable opportunity to comment upon it. A Party will, upon request by the other Party, promptly 
provide information and answer  to questions related to any proposed or existing measure, whether 
or not the requesting Party has been  previously notified of that measure. Any notification or 
information provided under this Article shall be without prejudice  as to whether the measure is 
consistent with the Protocol (Article  15.4).  
5.2  Current payments and capital movements  
5.4.  The Protocol does not include a specific provision regarding payments and capital movements 
for goods, but it does for cross -border trade in services, financial services and investment. Under 
Articles 9.13, 10.11 and 11.2:4, the Parties shall permit all transfers relating t o the cross -border 
trade in services/covered investments/financial services, respectively, to be made freely and without WT/REG377/1  
 
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  delays. However, limitations on transfers are possible in cases of bankruptcy, insolvency or 
protection of creditor's rights; dealing i n securities; reports of transfers of currency or other 
monetary instruments; criminal or penal offenses; or ensuring the satisfaction of judgments in 
adjudicatory proceedings (Articles 9.13:3, 10.11:6 and 11.2:4 respectively). Restrictions on 
transfers ar e also possible in the event a Party faces serious difficulties, or threat thereof, in its 
balance of payments or external finance s (Articles 18.6, see paragraph 5.10).  
5.5.  The above -mentioned provisions are modified as follows:  
a. Article 9.13 does not apply to Chile, nor to its services suppliers or services supplied 
from/to Chile. However, if following the entry into force of the Protocol , Chile does 
provide such a treatment in the context of an international trade agreement, such 
treatment will be automatically extended to the other Parties; and  
b. as regards investment, Article 10.11 is subject to the relevant provisions of the 
appropriate b ilateral agreement: for Chile and Colombia, their 2006 Free Trade 
Agreement (FTA); for Chile and Mexico, their 1998 Free Trade Treaty; and for Chile and 
Peru, their 2006 FTA.44  
5.3  Exceptions  
5.6.  Article XX (General Exceptions) of the GATT 1994 and its interpretiv e notes is incorporated into 
and made part of the Protocol , mutatis mutandis , for the purposes of Chapters 3 -7 and 13. The 
Protocol specifies that the measures referred to in Article XX (b) of  GATT 1994 include environmental 
measures necessary for protecti ng human, animal or plant life or health, and that Article XX (g) of 
GATT 1994 applies to the measures related to the conservation of non -renewable natural resources, 
living or non -living . As far as services -related provisions are concerned (Chapters 9 and  12-14), 
GATS Article XIV and its interpretive notes are also incorporated into the Protocol.  The Protocol also 
specifies that the measures referred to in Article XIV (b) of GATS include environmental measures 
necessary for protecting human, animal or plan t life or health . 
5.7.  Exceptions for public order, essential security and taxation are contained in Articles 18.2, 18.3 
and 18.4, respectively.  
5.8.  With respect to the provision on taxation, Article 18.4:  
a. establishes that the Protocol shall not affect the rights a nd obligations under any tax 
convention concluded between some of the Parties. In the event of any inconsistency 
between the protocol and any such convention, the latter shall prevail to the extent of 
the inconsistency ; 
b. provides for a mechanism to deal wit h any disputes relating to whether or not such any 
inconsistency exists; and  
c. despite a. above, some of the Protocol's provisions – in particular national and MFN 
treatment - apply to certain taxation measures, subject to certain qualifications. 
Paragraphs 4-7 provide explicitly the applicable provisions and limitations attached.  
5.9.  Under Article 18.5, the Parties are not required  to furnish or allow access to confidential 
information whose disclosure  would impede law enforcement, be contrary to  the public int erest, or 
that would prejudice legitimate trade interests  of particular enterprises, public or private . 
5.3.1   Balance -of-payments safeguard provisions  
5.10.   Article 18.6 allows the Parties to adopt or maintain temporary measures restricting transfers, 
current payments, and movements of capital in cases of s erious difficulties, or threat thereof, in its 
balance of payments or its external finance. Movement of capital may also be restricted if, in 
extraordinary circumstances, capital payments or transfers cause or threaten to cause serious 
                                                
44 Factual Presentations were distributed for the two FTAs, see WT/REG272/1/Rev.1 and WT/REG304/1. 
A Standard Format (WT/REG125/4) and a Factual Abstract are available for the Free Trade Treaty.  WT/REG377/1  
 
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  difficulties  in macroeconomic management, in particular monetary or foreign exchange policy. 
Conditions attached to these restrictions require that they be of a non -discriminatory and temporary 
nature, in conformity with the IMF  requirements,  not exceed those necessary to deal with the 
circumstances set out in paragraphs 1 or 2 of Article 18.6, be removed progressively and avoid 
unnecessary harm to trade, economic and financial interests of the other Party.  
5.11.   Paragraphs 4 and 5 of Article 18.6 specify that measures that restrict imports on trade in 
goods and/or on trade in services, respectively, shall only be taken to safeguard the Party's external 
financial position  or balance of payments,  and be compatibl e with the GATT/GATS bala nce-of-
payments provisions.  
5.4  Accession and Withdrawal  
5.12.   Article 11 of the Agreement provides that a ny State for which FTAs are in force with  each of  
the Parties  of the Agreement  may request accession to  the Pacific Alliance . Additionally, a ccession 
to the Agr eement is contingent on a consensus approval  in the Pacific Alliance Council of Ministers. 
Accession takes place 60 days following the deposit of the instrument of accession.  Article 19.7 of 
the Protocol establishes that  accession of other States to the Pr otocol takes place 60 days following 
the deposit of the instrument of accession , in accordance with Article 11 of the Agreement.  
5.13.   Article 10 of the Agreement establishes that States may be granted observer status, upon 
consensus from the Pacific Alliance Council of Ministers and in accordance with conditions agreed 
therein and guidelines adopted.45 As of September 2018, 55 countries are Observer States to the 
Pacific Alliance.46 
5.14.   Any Party may withdraw from the Agreement; in so doing, withdrawal from the Prot ocol is 
automatic (Articles 16 of the Agreement and 19.6 of the Protocol). Withdrawal becomes effective six 
months from the receipt by the Depository (Colombia) of the notice of withdrawal, except for 
investment provisions in Chapter 10 which will remain i n force for five years in the case of 
investments made one year prior to the withdrawal date.  
5.5  Institutional framework  
5.15.   A yearly Pro Tempore  Presidency is established under Article 7 of the Agreement. The Council 
of Ministers (of Foreign Trade, Foreign Affa irs or persons designated by them) is the highest 
governing body of the Pacific Alliance (Article 4 of that same Agreement). Its tasks consist inter alia  
to: 
a. adopt, or modify as necessary, decisions aimed at implementing the Agreement's 
objectives and acti ons; ensure and monitor their implementation. Decisions are taken 
by consensus (Article 5);  
b. approve the work programme of the Alliance;  
c. define the Pacific Alliance's political guidelines vis-à-vis relation with third parties and 
integration schemes;  
d. call for meetings of the High -Level Group, as established by the 2011 Lima Declaration; 
and 
e. establish any working groups required for fulfilling the Pacific Alliance's objectives.  
5.16.   The High -Level Group, composed of Vice -Ministers (Foreign Trade, Foreign Affairs) , oversees 
the work of the working groups, analyse s possible areas to be addressed and improve s relations 
with other organizations and regional groupings, in particular in Asia.  
                                                
45 Guidelines can be found at https://alianzapacifico.net/en/observant -countries/ . 
46 14 from the Americas, two from Africa, 27 from Europe, 10 from Asia and 2 from Oceania.  WT/REG377/1  
 
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  5.17.   The Free Trade Commission was established under the Protocol in accordance wit h 
Article  16.1. The Commission consists of representatives of each Party (ministerial level),47 with the 
Chairman originating from the Party h olding  the Pro Tempore  Presidency. It is responsible for 
ensur ing that the provisions of the Protocol  are complied with and properly implemented ; assessing 
its results; contribut ing to the dispute resolution process pursuant to Chapter 17; supervising the 
work of all bodies established under or pursuant to the Protocol; and deal ing with any other matter 
that may affect  the operation of the Protocol or that has been requested by the Parties. As foreseen 
in the Protocol, the Commission established its own rules and procedures (in its Decision No 2 of 28 
June 2017);48 all its decisions are taken by consensus. The Commission  is to meet at least once a 
year. 
Prior to the distribution of this Factual Presentation, t he last meeting of the Council of Ministers 
was held on 23 July 2018 in Puerto Vallarta, Mexico,  prior to the  XIII Summit of Heads of State of 
the Pacific Alliance  held on 24  July 2018 , while that of the Free Trade Commission took place on 21  
July 2018 also in Puerto Vallarta.  
5.19.   The Committee on Market Access (Article 3.17) was established. It is responsible for , 
inter alia, monitoring the correct implementation and interpretation of the provisions of Chapter 3 
and its annexes,  including the future amendments to the Harmonized System (HS) to ensure each 
Party's obligations under the Additional Protocol,  as well as to make  proposals to  the Free Trade 
Commission within its areas of competence . Bilateral issues  on matters related to Chapter 3  may 
also be discussed within  the Committee. No specific periodicity of meetings is foreseen. As of January 
2019, the Committee ha d not yet met since no matters or procedures ha d been identified as 
requiring discussion . 
5.20.   The Committee on Rules of Origin and Procedures related to Origin, Trade Facilitation and 
Customs Cooperation (Article 4.30), which is to meet at least once a year, aims at monitoring the  
implementation and administrati on of Chapters 4 and 5, as well as proposing to the Free Trade 
Commission  changes to these Chapters.  The Committee on Short Supply ("CSS", Articles 4.31. and 
its Annex and Article  4.32) aims at evaluating the difficulties faced by producers in accessing ne eded 
materials under normal commercial conditions, on the basis of investigations launched following  a 
request by a producer. Details regarding the procedures for the investigation, its conclusion, the 
operation of the Committee, etc. are included in Annex  4.31. A review o f the operation of the CSS 
was to take place within one year from the entry into force of the Protocol . As of March 2019,  none 
of these Committee s had met since no matters or procedures ha d been identified as requiring 
discussion .  
5.21.   The oth er bodies established under the Protocol are the Committees on Sanitary and 
Phytosanitary Measures (Article 6.14), Technical Barriers to Trade (Article 7.9), Government 
Procurement (Article 8.23), Joint Committee on Investment and Services (Article 10.33) and their  
Sub-Committees on Services and on Investment (Articles 9.15 and 10.33, respectively), on Financial 
Services (Article 11.8), and, as established by Article 5 of the Modifying Protocol No 1, the Committee 
on Regulatory Improvements. Annex 16.2 lists all the Protocol's bodies, including the working 
groups. As of March 2019, neither t he Committee on Sanitary and Phytosanitary Measures  nor the 
Committee on Financial Services  had met, since no  matters or procedures had been  identified as 
requiring discussion . Nevertheless, issues covered by the Chapters  on Technical Barriers to Trade, 
Government Procurement, Investment , Services and Regulatory Improvement were being handled 
in the respective Te chnical Groups of the Pacific Alliance.  
5.6  Dispute settlement  
5.22.   Chapter 17 of the Protocol on Dispute Settlement was negotiated as a follow -up to the built -
in agenda of Article 12 of the Agreement . Section B of Chapter 10 of the Protocol provides the 
mechanism  to settle disputes between an investor of a Party and the other Party (ISDS).  
5.23.   According to Chapter 17, the Parties will endeavour to reach  a mutually satisfactory solution 
to any dispute arising between the m relating to the interpretation and the applicat ion of the Protocol 
                                                
47 Chile: Director -General of International Economic Relations; Colombia: Ministry of Trade, Industry 
and Tourism ; Mexico: Secretary of Economy ; Peru: Ministry of Foreign Trade  and Tourism, or their designees . 
48 https://alianzapacifico.net/download/decision -n2-reglas -y-procedimientos -de-la-comision -de-libre-
comercio/#   (Spanish only).  WT/REG377/1  
 
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  (Article  17.2). The Chapter applies , unless otherwise provided in the Protocol,  to disputes related to 
the interpretation or application the provisions of the Protocol between the Parties , or where a Party 
considers that :  
a. an existing o r proposed measure of another Party is or may be inconsistent with the 
obligations set out in the Protocol;  
b.  another Party has otherwise breached the obligations set out in the Protocol, or  
c. an existed  or proposed measure of another Party cause s or may cause nullification or 
impairment  of the  benefits that  the Party may have reasonably expect ed from the 
application of the Protocol.  
5.24.   Chapter 17 does not apply as follows:  
a. between Colombia and Peru with respect to their relations under the Andean Commun ity 
(footnote 1 to Article 17. 3);  
b. for Chile and Mexico, as regards foreign investment issues also carved out from ISDS 
(see paragraph 4.30 above );  
c. certain disciplines on telecommunications, as explained in paragraph  4.116.    above ; 
and 
d. to Chapter 15 bis on Regulatory improvements.  
5.25.   For any disputes concerning the same matter that arise with respect to the obligations under 
the Protocol, the WTO or any other trade agreement between the Parties, the complaining Party may 
select the forum in which to settle the dispute. Once that Party has requested the  establishment of 
an Arbitral Tribunal or a Panel at the WTO, that forum must be used to the exclusion of others 
(Article 17.4).  
5.26.   The dispute settlement mechanism provides for consultations, intervention of the Free Trade 
Commission and establishment of an Arbitral Tribunal (AT) (Articles 17.5 -7, respectively), composed 
of three arbitrators, which will examine the case and present a final report to the disputing Parties. 
The system provides for a n initial  report on which the Parties can comment, a final repo rt and an 
implementation mechanism that may lead to authorization to retaliate but also a review of these 
measures (see Chart 5.1).  
5.27.   An appeal is not possible.  Alternative dispute resolution mechanisms such as g ood offices, 
conciliation or mediation may be requested at any time by either Party (Article 17.23); upon 
agreement, these can be held in parallel to AT procedures but also terminated at any time. T he 
termination of proceedings is possible at any time by agreement; temporary suspension of the work 
of the AT is also foreseen (Article 17.18).  
5.28.   Shorter time frames may apply in case of urgency (e.g. perishable goods). The p rocedures 
are also designed to address multiple complaining Parties (Article 17.9).  
5.29.   In case of a dispute between the Parties regarding t he Financial Services Chapter 
(Articles  11.2:5 , 11.20  and 11.21 ), specific provisions apply. In particular, they provide the 
following:  
a. specific, distinct timeframes;  
b. members of the AT shall have specific knowledge or experience in financial law or 
financ ial service;  
c. limitations as regards the scope of any authorized retaliation under Article 17.20;  and WT/REG377/1  
 
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  d. when an ISDS complaint is made and the defendant invokes Article  11.11  as a defense , 
the AT will refer the case to the Financial Services Committee for a decision 
(Article  11.21).  
   WT/REG377/1  
 
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  Chart 5.1 Dispute Settlement Mechanism under the Protocol  
 
  
Note:  In brackets, time -frame in case of urgency.  
* When there is no agreement regarding the appointment of the Chair of the Arbitral Tribunal, the Pro 
Tempore Presidency will make the appointment within 7 days by drawing lots. 
** In exceptional cases.  
 
 
 
Technical advice requested (Art. 17.6:3(a))  
Good offices, conciliation, mediation  
 (Art. 17.6:3(b)) 
Recommendations (Art. 17.3:4(c))  
 
Consultations  
  Art. ( 17.5)  
 
Technical consultations  
  (Art. 6.13 and 7.12)  
 
40 days 
  
Referral to Commission (Art. 17.6)  
Meeting of the Commission within 10 days  
 
30 (15) days  
 
Request for establishment of AT  
(Art. 17.7) 
 
Preliminary AT report (Art. 1 7.15)  
 
40 days  
 
90 (60) days (+30)**  
 
Composition of AT (Art. 17.13 ) *  
 
15 days 
 
15 days 
 
Comments by the Parties (Art. 1 7.15:7) 
 
Final AT report transmitted  
to the Parties  (Art. 1 7.15) 
 
Max. 30 days  
 
Publication  (Art. 17 .16)  
 
15 days  
 
Implementation (Art. 1 7.19)  
 
Time frame as AT decision  
 
If compliance/agreement   
 
Suspension of benefits by the  
Complaining Party until the  
decision implemented  
(Art. 17 .20:2)  
 
If non -compliance/agreement  
30 days  
 
Termination   
 
Recourse to AT by the other Party   
(Art. 17 .22: 1) 
 
60 or 80  days from constitution of AT  
 
AT's Final report on compliance and suspension  
(Art. 17 .22:4 ) Request for clarification from AT 
(Art. 17: 17) 
  
Compensation  
(Art. 17 .20:1)  
 10 days 10 days  WT/REG377/1  
 
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  5.7  Relationship with other agreements concluded by the Par ties 
5.30.   The Framework Agreement foresees (Article 8) that legal instruments adopted in the Pacific 
Alliance context will not replace nor modify existing economic, trade and integration agreements of 
a bilateral, regional or multilateral nature. That principle  is further developed in Article 1.2 of the 
Additional Protocol, which provides for the co -existence of the Pacific Alliance with other agreements 
its Parties are party to. If at least one Party considers that incompatibilities exist between the 
Additional  Protocol and one of these other agreements, consultations aimed at reaching a mutual ly 
satisfactory solution shall take place upon request, without prejudice to the rights and obligations 
under the Dispute Settlement Chapter. It explicitly indicate s that any such consultation does not 
constitute one of the phases foreseen in that Chapter. A footnote clarifies that more favourable 
treatment in terms of goods, services, investment or natural persons granted in the context of 
another agreement does not consti tute incompatibility.  
5.31.   In June 2017, the Council of Ministers adopted the "Guidelines applicable to the Associated 
States of the Pacific Alliance".49 "Associated States" will be those for which binding, "high standards" 
trade agreements are in force with res pect to all the Parties  of the Framework Agreement.  
5.32.   As indicated in Section 2.1 of this Factual Presentation, a number of RTAs are simultaneously 
in force among the Parties. Table 5.1 lists the notified and non -notified RTAs in force for each Party.  
Table 5.1 Participation of the Parties in other RTAs (notified and non -notified in force), 
as of 28 March 2019  
RTA Name  Date of entry 
into force  Coverage  GATT/WTO Notification  
Year WTO Provision  
CHILE  
Southern Common Market 
(MERCOSUR) – Chilea 10-Mar-17 Goods  2017 Enabling Clause  
Chile – Thailand  05-Nov-15 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
Hong Kong, China - Chile 09-Oct-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
Chile - Viet Nam  01-Jan-14 Goods  2015 GATT Art. XXIV  
Chile - Nicaragua  
(Chile - Central America)  19-Oct-12 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Chile – Malaysia  25-Feb-12 Goods  2013 GATT Art. XXIV  
Turkey – Chile 01-Mar-11 Goods  2011 GATT Art. XXIV  
Chile - Guatemala  
(Chile - Central America)  23-Mar-10 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Chile - Colombia  08-May-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Australia – Chile 06-Mar-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Peru – Chile 01-Mar-09 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
Chile - Honduras  
(Chile - Central America)  19-Jul-08 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
Panama – Chile 07-Mar-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
Chile – Japan  03-Sep-07 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
Chile – India 17-Aug-07 Goods  2009 Enabling Clause  
Chile – China  01-Oct-06 
01-Aug-10 Goods  
Services  2007 
2010 GATT Art. XXIV  
GATS Art. V  
Trans -Pacific Strategic 
Economic Partnership  28-May-06 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
                                                
49 These  guidelines can be found in https://alianzapacifico.net/cloudcomputing/iadb -
org/serverhosted/alian zapacifico/multimedia/archivos/ANEXO -LINEAMIENTOS -ESTADO -ASOCIADO -2.pdf 
(Spanish only).  WT/REG377/1  
 
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  RTA Name  Date of entry 
into force  Coverage  GATT/WTO Notification  
Year WTO Provision  
EFTA – Chile 01-Dec-04 Goods & 
Services  2004 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Chile 01-Apr-04 Goods & 
Services  2004 GATT Art. XXIV & GATS Art. V  
United States - Chile 01-Jan-04 Goods & 
Services  2003 GATT Art. XXIV & GATS Art. V  
EU – Chile 01-Feb-03 
01-Mar-05 Goods 
Services  2004 
2005 GATT Art. XXIV  
GATS Art. V  
Chile - El Salvador  
(Chile - Central America)  01-Jun-02 Goods & 
Services  2004 
2004 GATT Art. XXIV  
GATS Art. V  
Chile - Costa Rica  
(Chile - Central America)  15-Feb-02 Goods & 
Services  2002 GATT Art. XXIV & GATS Art. V  
LAIA - Accession of Cuba  26-Aug-99 Goods  1999 Enabling Clause  
Chile – Mexico  01-Aug-99 Goods & 
Services  2001 GATT Art. XXIV & GATS Art. V  
Canada – Chile 05-Jul-97 Goods & 
Services  1997 GATT Art. XXIV & GATS Art. V  
Global System of Trade 
Preferences among 
Developing Countries 
(GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
LAIA 18-Mar-81 Goods  1982 Enabling Clause  
Protocol on Trade 
Negotiations (PTN)  11-Feb-73 Goods  1971 Enabling Clause  
Chile - Argentina  
[LAIA, AAP.CE N° 35.61] 01-May-19 Goods & 
Services  Not notified  
Chile - Ecuador  
[LAIA, AAP.CE N°65]  25-Jan-10 Goods & 
Services  Not notified  
Chile - Cuba  
[LAIA,AAP.CE N°42]  27-Jun-08 Goods  Not notified  
Chile - Venezuela  
[LAIA, AAP.CE N°23]  02-Apr-93 Goods & 
Services  Not notified  
Chile - Bolivia  
[LAIA, AAP.CE N°22]  06-Apr-93 Goods  Not notified  
Chile - Argentina  
[LAIA, AAP.CE N°16]  02-Aug-91 Goods  Not notified  
LAIA - Seeds [AAP.AG N°2]  18-Jun-93 Goods  Not notified  
LAIA - Cultural Goods  
[LAIA AR.CEYC N°7]  01-Jan-89 Goods  Not notified  
LAIA- Preferences in favour 
of Paraguay  
[LAIA, AR.AM N°3]  01-Jul-84 Goods  Not notified  
LAIA - Preferences in favour 
of Ecuador  
[LAIA, AR.AM N°2]  01-May-83 Goods  Not notified  
LAIA - Preferences in favour 
of Bolivia  
[LAIA, AR.AM N°1]  01-May-83 Goods  Not notified  
LAIA - Accession of Panama  03-May-12 Goods  Not notified  
COLOMBIA  
EU - Colombia and Peru - 
Accession of Ecuador  01-Jan-17 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
Costa Rica - Colombia  01-Aug-16 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Republic of Korea – 
Colombia  15-Jul-16 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru  01-Mar-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
United States - Colombia  15-May-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Canada - Colombia  15-Aug-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  WT/REG377/1  
 
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  RTA Name  Date of entry 
into force  Coverage  GATT/WTO Notification  
Year WTO Provision  
EFTA - Colombia  01-Jul-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
Colombia - Northern 
Triangle (El Salvador, 
Guatemala, Honduras ) 12-Nov-09 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Chile - Colombia  08-May-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
LAIA - Accession of Cuba  26-Aug-99 Goods  1999 Enabling Clause  
Colombia - Mexico  01-Jan-95 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  
GSTP  19-Apr-89 Goods  1989 Enabling Clause  
Andean Community  25-May-88 Goods  1990 Enabling Clause  
LAIA 18-Mar-81 Goods  1982 Enabling Clause  
MERCOSUR - Colombia  
[LAIA , AAP.CE No 72] 20-Dec-17 Goods  Not notified  
Colombia - Venezuela  
[LAIA, AAP.C Nº28]  19-Oct-12 Goods  Not notified  
LAIA - Accession of Panama  03-May-12 Goods  Not notified  
Andean Community  14-Dec-06 Services  Not notified  
MERCOSUR - Andean 
Community (except Peru)  
[LAIA,  AAP.CE N°59]  05-Jan-05 Goods & 
Services  Not notified  
Colombia - Cuba  
[LAIA,AAP.CE N°49]  10-Jul-01 Goods  Not notified  
CARICOM - Colombia  
[LAIA, AAP.A25TM N°31]  01-Jan-95 Goods  Not notified  
Colombia - Panama  
[LAIA, AAP.A25TM N°29]  01-Jan-95 Goods  Not notified  
LAIA - Preferences in favour 
of Bolivia  
[LAIA, AR.AM N°1]  19-Oct-93 Goods  Not notified  
LAIA - Cultural Goods  
[LAIA AR.CEYC N°7]  01-Jan-89 Goods  Not notified  
LAIA- Preferences in favour 
of Paraguay  
[LAIA, AR.AM N°3]  03-Sept-85 Goods  Not notified  
MEXICO  
Comprehensive and 
Progressive Agreement for 
Trans -Pacific Partnership 
(CPTPP)  30-Dec-18 Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
MERCOSUR - Mexico  28-Dec-16 Goods  2017 Enabling Clause  
Mexico - Panama  01-Jul-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Mexico - Central America  01-Sep-12 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
Peru – Mexico  01-Feb-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Japan – Mexico  01-Apr-05 Goods & 
Services  2005 GATT Art. XXIV & GATS Art. V  
Mexico - Uruguay  15-Jul-04 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
EFTA – Mexico  01-Jul-01 Goods & 
Services  2001 GATT Art. XXIV & GATS Art. V  
Israel – Mexico  01-Jul-00 Goods  2001 GATT Art. XXIV  
EU – Mexico  01-Jul-00 
01-Oct-00 Goods  
Services  2000 
2002 GATT Art. XXIV  
GATS Art. V 
LAIA - Accession of Cuba  26-Aug-99 Goods  1999 Enabling Clause  
Chile – Mexico  01-Aug-99 Goods & 
Services  2001 GATT Art. XXIV & GATS Art. V  
Colombia - Mexico  01-Jan-95 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  WT/REG377/1  
 
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  RTA Name  Date of entry 
into force  Coverage  GATT/WTO Notification  
Year WTO Provision  
North American Free Trade 
Agreement (NAFTA)  01-Jan-94 Goods & 
Services  1993 
1995 GATT Art. XXIV & GATS Art. V  
GSTP  19-Apr-89 Goods  1989 Enabling Clause  
LAIA 18-Mar-81 Goods  1982 Enabling Clause  
PTN 11-Feb-73 Goods  1971 Enabling Clause  
LAIA - Accession of Panama  03-May-12 Goods  Not notified  
Mexico - Bolivia  
[LAIA, AAP.CE N°66]  07-Jun-10 Goods & 
Services  Not notified  
Mexico - Brazil  
[LAIA, AAP.CE N°53]  02-May-03 Goods  Not notified  
Mexico - Cuba  
[LAIA, AAP.CE N°51]  28-Feb-01 Goods  Not notified  
Mexico - Argentina  
[LAIA, AAP.CE N°6]  01-Jan-87 Goods  Not notified  
Mexico - Paraguay  
[LAIA, AAP.R N°38]  01-Jul-84 Goods  Not notified  
Mexico - Ecuador  
[LAIA, AAP.R N°29]  01-May-83 Goods  Not notified  
LAIA - Cultural Goods  
[LAIA AR.CEYC N°7]  09-Aug-90 Goods  Not notified  
LAIA - Preferences in favour 
of Ecuador  
[LAIA, AR.AM N°2]  26-Mar-84 Goods  Not notified  
LAIA- Preferences in favour 
of Paraguay  
[LAIA, AR.AM N°3]  26-Oct-84 Goods  Not notified  
PERU  
     
Peru – Honduras  01-Jan-17 Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru - 
Accession of Ecuador  01-Jan-17 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
Costa Rica - Peru 01-Jun-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru  01-Mar-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Panama – Peru 01-May-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Japan – Peru 01-Mar-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Peru – Mexico  01-Feb-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Peru - Republic of Korea  01-Aug-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
EFTA – Peru 01-Jul-11 Goods  2011 GATT Art. XXIV  
Peru – China  01-Mar-10 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  
Peru - Singapore  01-Aug-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Canada – Peru 01-Aug-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Peru – Chile 01-Mar-09 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
United States - Peru 01-Feb-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
LAIA - Accession of Cuba  26-Aug-99 Goods  1999 Enabling Clause  
GSTP  19-Apr-89 Goods  1989 Enabling Clause  
Andean Community  25-May-88 Goods  1990 Enabling Clause  
LAIA 18-Mar-81 Goods  1982 Enabling Clause  
PTN 11-Feb-73 Goods  1971 Enabling Clause  
LAIA - Accession of Panama  03-May-12 Goods  Not notified  WT/REG377/1  
 
- 76 - 
 
  RTA Name  Date of entry 
into force  Coverage  GATT/WTO Notification  
Year WTO Provision  
Peru – Thailand  31-Dec-11 Goods  Not notified  
Andean Community  14-Dec-06 Services  Not notified  
MERCOSUR - Peru  
[LAIA, AAP,CE N°58]  02-Jan-06 Goods & 
Services  Not notified  
Peru - Cuba  
[LAIA, AAP.CE N°50]  09-Mar-01 Goods  Not notified  
LAIA - Seeds [AAP.AG N°2]  21-Aug-95 Goods  Not notified  
a Date of entry into force between Chile and Argentina of the Additional Protocol N° 59 to the 
Economic Complementarity Agreement No 35. As for the entry into force between Chile and the 
other MERCOSUR P arties, the dates differ because the Protocol has a bilateral clause of entry into 
force. These dates are indicated in WT/COMTD/N/53.  
Source:  WTO Secretariat. Further information may be  found in the WTO Database on RTAs: 
http://rtais.wto.org .  
 
5.8  Government procurement  
5.33.   None of the Parties are signatories to the WTO Government Procurement Agreement; Chile 
and Colombia have however observer status in the  Agreement.  
5.34.   Government procurement is addressed in Chapter 8. The scope of the Chapter is defined in 
Article 8.2 to include procurement:  
(a) by government entities (central, sub -central and others) listed in Annex 8.2 
(respectively in Sections A -C). For th e time being, Mexico is the only country that  
does not cover  sub-central entities under market access commitments. 
Nevertheless, Section B contains provisions that indicate Mexico will carry out an 
internal consultation process in order to achieve their fu ture inclusion under the 
scope of the Chapter ; 
(b) of goods, services and constructions services listed in Sections D -F of Annex 8.2, 
respectively; and  
(c) above the thresholds indicated in Table 5.2 below.  
Table 5.2 Thresholds under Section H of Annex 8.2  (SDRs unless otherwise specified)a 
Party  Section A (Central 
Government Entities)  Section B (Sub -central  
Government Entities)  Section C (Other Entities)  
Goods and 
Services  Construction 
services  Goods and 
Services  Construction 
services  Goods and 
Services  Construction 
services  
CHL 
& 
COL 50,000 
95,000 for 
PER 5,000,000  
USD 10,335,931 
for MEX  200,000  5,000,000  220,000  
USD 397,535 
for MEX  5,000,000  
USD 12,721,740 
for MEX  
MEXb USD 79,507 
(Sect D&E)  USD 10,335,931 
(Sect. F)  - - USD 397,535 
(Sect. D&E)  USD 12,721,740 
(Sect. F)  
PER 95,000  5,000,000  200,000  5,000,000  220,000  5,000,000  
Thresholds applied by most of the Parties to the WTO Government Procurement Agreement  
 130,000  5,000,000  200,000  5,000,000  400,000  5,000,000  
a In October 2018, 1 SDR=1.39 US D. 
b For Mexico, the thresholds are th ose of the North American Free Trade Agreement ( NAFTA ). 
Source:  Section G and H of Annex 8.2 to the Protocol and the WTO website.  
 WT/REG377/1  
 
- 77 - 
 
  5.35.   Section G to Annex 8.2 lists procurement that is excluded from the disciplines of the Chapter, 
either permanently or in a temporary manner.  
5.36.   Chapter 8 also require s that the Parties' Government procurement practices are 
non-discriminatory and non -arbitrary, and that they provide for transparency and equal access 
among the Parties; national  treatment are specifically provided for (Article 8.3). The Chapter also 
contains detaile d provisions regarding tenders.  
5.9  Intellectual property rights  
5.37.   The Protocol does not contain provisions on trade -related aspects of intellectual property 
rights.  
5.10  Electronic commerce  
5.38.   The rules governing electronic commerce are contained in Chapter 13  as modi fied by  the First 
Modifying Protocol. Electr onic commerce is defined as commerce conducted through 
telecommunications, alone or in conjunction with other information and communication 
technologies.50  
5.39.   The Chapter covers measures affecting electronic transac tions of goods and services, 
including digital products, without prejudice to the Protocol's services and investments provisions; 
the First Modifying Protocol clarifies that the Chapter's disciplines do not apply to Government 
procurement, nor to informati on held by a Party, or on its behalf, and measures related to such 
information.  
5.40.   The following summarizes some of the Protocol's specific disciplines:  
a. the parties agree to not charge customs duties for imports/exports (including fees or 
charges) of digital products transmitted electronically, though they may be subject to 
internal taxes provided they are imposed in a manner that is consistent with the Protocol 
(Article 13.4);   
b. the Parties are to adopt or maintain legislation protecting the personal informati on of 
the users of electronic commerce (Article 13.8); and  
c. their legislation shall provide rights to users of electronic authentication and digital 
certificates.  
5.41.   Additional disciplines included in the Modifying Protocol include:  
a. an extensive non -discrimina tion obligation for digital products, covering those 
originating from both other Parties and third -parties, without any sectoral exception s 
(Article 13.4 bis);  
b. the Parties are to allow the cross -border transfer of information by electronic means, 
including personal information, for the conduct of the business of a covered person; 
(Article 13.11);51 
c. prohibition o n requirements to locate computing facilities in a Party's territory as a 
condition for conducting business in its territory (Article 13.11 bis); 
d. the Parties are authorized to deviate from b. and c. above to achieve a legitimate public 
policy objective, provided such measures  are not applied in a manner which would 
                                                
50 The definition of "computing facilities" and "covered person" have been added in the First Modifying 
Protocol.  
51 The original Article 13.11 required Parties to negoti ate commitments on cross -border transfer of 
information.  WT/REG377/1  
 
- 78 - 
 
  constitute a means of arbitrary or unjustifiable discrimination or a disguised trade 
restriction . 
5.42.   The Chapter contains numerous best endeavours clauses, including the Parties' commitment 
to work towards ensuring online consumer protection (paragraphs 4 and 5 of Article 13.6, added 
through the Modifying Protocol); and the promotion of  paperless trade (Article 13.7).  
5.43.   In the event of an inconsistency between Chapter 13 and another Chapter of the Protocol, the 
other Chapter prevails to the extent of the inconsistency (Article 13.14).  
5.11  Regulatory practice  
Chapter 15 bis - "Regulatory Improv ement " - included in the First Modifying Protocol, aims at 
ensuring the use of  international good regulatory practices in the process of planning, designing, 
issuing, implementing and reviewing regulatory measures in order to facilitate  the achievement of 
domestic policy objectives, and in efforts across governments to enhance regulatory cooperation in 
order to further those objectives and to promote international trade and investment, economic 
growth and employment. Each Party must, within three years of entry into force of the First Modifying 
Protocol, determine and make publicly available the covered regulatory measures that will be subject 
to the Chapter's disciplines . In determining the covered regulatory measures, each Party shall aim 
to achieve  a "significant coverage" (Article 15 bis.3). Domestically, the Parties shall endeavour to 
ensure that they have the processes or mechanisms to fac ilitate effective interagency coordination 
and review of proposed regulatory measures covered  (Article 15 bis.4.1). 
5.45.   The Parties are to encourage Good Regulatory Practices in their core regulatory agencies, 
including regulatory impact assessments, when developing covered regulatory measures that exceed 
a threshold of economic impact or other regulatory impact determined by the Party  (Article 15 
bis.5.1). The Chapter acknowledges in Article 15 bis.5.2, that different approaches may need to be 
taken given the different institutional, social, cultural, legal and developmental conditions of the 
Parties. Transparency is also stressed.  Under Article 15 bis.6, the Parties  establish a Committee to 
monitor implementation  of the Chapter . The Parties are to submit a  notification of implementation 
to the Committee through their contact points within 2 years of the entry into force of the Protocol. 
Information to be provided includes the steps that have been taken and those planned  (Article 15 
bis.9). As of Marche 2019  that information had not been provided.  
5.46.   A Regulatory Improvement Committee is established. The Committee shall consider issues 
associated with the implementation and operation of this Chapter. The Committee shall also consider 
identifying future prioritie s, including potential sectoral initiatives and cooperative activities involving 
issues covered by this Chapter and issues related to regulatory improvement covered by other 
Chapters of this Additional Protocol.   
5.47.   In the event of an y inconsistency between this Chapter and another Chapter of the Protocol, 
the other Chapter prevails to the extent of the inconsistency. Th is Chapter shall not be subject to 
the provisions established under the Chapter 17 (Dispute Settlement) of the Additio nal Protocol.   
 WT/REG377/1  
 
- 79 - 
 
  ANNEX 1  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the dut ies applied by them on MFN imports is shown in Tables A1.1 -A1.4, by HS 
Chapters 1 -24 (agricultural products), 25 -97 (indust rial products) and total products. Applied MFN 
duty rates in 2016 serve as a comparison.  
2. Peru's overall average applied MFN tariff rate in 2016 was 6% (Table A1.1), with that same 
rate applying on both agricultural and industrial goods. Duty -free tariff l ines accounted for only 0.4% 
of all tariff lines. Upon entry into force of the Protocol, the share of duty -free tariff lines rose to 
98.9% overall,  from 0% to 95.8% in agricultural products and from 0.6% to full liberalization  in 
industrial products. At th e end of the transition period in 2020, four years after the entry into force 
of the Protocol, exporters from the three Pacific Alliance countries will face zero duties on 99.6% of 
Chile's tariff lines, including 98.6% for agricultural products.  
Table A1. 1 Chile: Indicators of MFN tariff rates and preferential rates for imports from 
Colombia, Mexico and Peru  
Origin 
of goods  Year ALL PRODUCTS  Agricultural products  Industrial products  
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
MFN 2016 6.0 6.0 0.4 6.0 6.0 0.0 6.0 6.0 0.6 
Colombia  
Mexico 
and Peru  2016 0.0 3.9 98.9 0.2 3.9 95.8 0.0 0.0 100.0  
2017 0.0 3.3 98.9 0.1 3.3 95.8 0.0 0.0 100.0  
2018 0.0 2.7 98.9 0.1 2.7 95.8 0.0 0.0 100.0  
2019 0.0 2.1 98.9 0.1 2.1 95.8 0.0 0.0 100.0  
2020 0.0 5.1 99.6 0.1 5.1 98.6 0.0 0.0 100.0  
Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Chile.  
 
3. Prior to the entry into force of the Protocol in 2016, Colombia's average applied rate on all 
products was 8.5%, with 3.5% of lines being duty -free (Table A1.2) . On agricultural products, the 
applied rate was 15.5%, with 0.1% of lines being duty -free; the applied rate on industrial  products 
was 7.3%, with 4.2% of lines being duty free. Upon the Protocol's entry into force, Colombia's overall 
tariff rate for impor ts from  Chile and Peru fell to 0.3% and to 0.5% for Mexico, and almost  all 
industrial products were fully liberalized as of that date. Upon completion of the transition period, 
after 14 years, the average applied rate on agricultural products will be 0.1%,  and th e share of duty -
free lines will reach 97.3% for agricultural products; industrial products will become fully liberalized 
in 2021.  WT/REG377/1  
 
- 80 - 
 
  Table A1.2 Colombia: Indicators of MFN tariff rates and preferential rates for imports 
from Chile and Peru, and Mexico  
Origin 
of goods  Year ALL PRODUCTS  Agricultural products  Industrial products  
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
MFN 2016 8.5 8.8 3.5 15.5 15.5 0.1 7.3 7.6 4.2 
Chile and 
Peru 2016 0.3 21.9 98.4 1.8 22.1 90.5 0.0 10.0 100.0  
2017 0.3 19.5 98.4 1.6 19.6 90.5 0.0 8.0 100.0  
2018 0.2 16.9 98.4 1.4 17.0 90.5 0.0 6.0 100.0  
2019 0.2 14.6 98.5 1.2 14.7 90.7 0.0 4.0 100.0  
2020 0.2 12.0 98.5 1.0 12.1 90.7 0.0 2.0 100.0  
2021 0.1 15.5 99.0 0.8 15.5 93.8 0.0 0.0 100.0  
2022 0.1 14.6 99.1 0.6 14.6 94.2 0.0 0.0 100.0  
2023 0.1 15.0 99.2 0.6 15.0 95.0 0.0 0.0 100.0  
2024 0.1 12.8 99.2 0.5 12.8 95.0 0.0 0.0 100.0  
2025 0.1 10.6 99.2 0.4 10.6 95.0 0.0 0.0 100.0  
2026 0.0 14.2 99.4 0.3 14.2 96.5 0.0 0.0 100.0  
2027 0.0 11.7 99.4 0.3 11.7 96.5 0.0 0.0 100.0  
2028 0.0 9.2 99.4 0.2 9.2 96.5 0.0 0.0 100.0  
2029 0.0 8.0 99.5 0.1 8.0 96.9 0.0 0.0 100.0  
2030 0.0 8.6 99.6 0.1 8.6 97.3 0.0 0.0 100.0  
Mexico  2016 0.5 23.5 97.6 3.1 23.6 85.4 0.0 10.0 100.0  
2017 0.5 21.7 97.6 2.9 21.8 85.4 0.0 8.0 100.0  
2018 0.4 21.3 97.8 2.7 21.4 86.3 0.0 6.0 100.0  
2019 0.3 18.1 97.9 2.1 18.2 87.4 0.0 4.0 100.0  
2020 0.3 15.7 98.0 1.7 15.8 87.7 0.0 2.0 100.0  
2021 0.2 16.6 98.4 1.4 16.6 90.2 0.0 0.0 100.0  
2022 0.2 14.3 98.5 1.2 14.3 90.6 0.0 0.0 100.0  
2023 0.1 14.5 98.8 0.9 14.5 92.4 0.0 0.0 100.0  
2024 0.1 12.9 98.8 0.8 12.9 92.4 0.0 0.0 100.0  
2025 0.1 12.1 98.8 0.7 12.1 92.8 0.0 0.0 100.0  
2026 0.1 13.0 99.1 0.6 13.0 94.2 0.0 0.0 100.0  
2027 0.1 10.4 99.1 0.5 10.4 94.2 0.0 0.0 100.0  
2028 0.1 8.1 99.1 0.3 8.1 94.5 0.0 0.0 100.0  
2029 0.0 5.6 99.2 0.2 5.6 94.9 0.0 0.0 100.0  
2030 0.0 8.6 99.6 0.1 8.6 97.3 0.0 0.0 100.0  
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Colombia.  
 
4. In 2016, Mexico's average applied tariff was 5.5% on all products, with 58.1% of its tariff 
being duty -free for imports from all sources (Table A1. 3). On agricultural products, the applied rate 
was 15.7%, with 15.2% of lines being duty -free; for industrial  products it reached 4.3% and 63.6% 
of the tariff lines were duty -free. Upon the Protocol's entry into force, Mexico's overall tariff rate fell 
to 0.5% for imports from  Chile and Peru (4.5% and 0% for agricultural and industrial products 
respectively) and 0.6% for imports from  Colombia (4.7% and 0% for agricultural and industrial 
products respectively ), with the share of duty -free tariff lines rising to 96.8% overall for Chile and 
Peru and 96.6% for imports from Colombia. After 14 years of implementation, 99.5% of all tariff 
lines will become duty -free for imports from  the other Parties , whose exporters  will benefit from a 
relative margin of preference of 98% in the Mexican market, as compared to the MFN rate.  WT/REG377/1  
 
- 81 - 
 
  Table A1.3 Mexico: Indicators of MFN tariff rate s and preferential rates for imports from 
Chile and Peru, and Colombia  
Origin 
of goods  Year ALL PRODUCTS  Agricultural products  Industrialproducts  
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff  
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
MFN 2016 5.5 13.3 58.1 15.7 18.6 15.2 4.3 11.7 63.6 
Chile and 
Peru 2016 0.5 18.8 96.8 4.5 20.1 76.4 0.0 10.8 99.4 
2017 0.5 16.9 96.8 4.1 18.3 76.4 0.0 8.1 99.4 
2018 0.4 14.4 96.9 3.5 15.9 76.9 0.0 5.4 99.4 
2019 0.3 11.4 96.9 2.8 12.8 76.9 0.0 2.7 99.4 
2020 0.2 22.5 98.7 2.1 22.5 89.3 0.0 0.0 99.9 
2021 0.2 20.6 98.7 1.9 20.6 89.3 0.0 0.0 99.9 
2022 0.2 18.2 98.7 1.7 18.2 89.3 0.0 0.0 99.9 
2023 0.2 24.6 99.1 1.4 24.6 92.8 0.0 0.0 99.9 
2024 0.1 22.1 99.1 1.3 22.1 92.8 0.0 0.0 99.9 
2025 0.1 22.1 99.1 1.1 22.1 93.5 0.0 0.0 99.9 
2026 0.1 20.6 99.2 1.0 20.6 93.9 0.0 0.0 99.9 
2027 0.1 17.3 99.2 0.8 17.3 93.9 0.0 0.0 99.9 
2028 0.1 21.9 99.4 0.6 21.9 95.6 0.0 0.0 99.9 
2029 0.1 18.8 99.4 0.6 18.8 95.6 0.0 0.0 99.9 
2030 0.1 31.5 99.5 0.5 31.5 97.0 0.0 0.0 99.9 
Colombia  2016 5.5 13.3 58.1 15.7 18.6 15.2 4.3 11.7 63.6 
2016 0.6 18.3 96.6 4.7 19.4 74.6 0.0 10.8 99.4 
2017 0.5 16.3 96.6 4.3 17.6 74.6 0.0 8.1 99.4 
2018 0.4 14.4 96.8 3.6 15.8 76.1 0.0 5.4 99.4 
2019 0.3 11.4 96.8 2.9 12.8 76.4 0.0 2.7 99.4 
2020 0.2 21.8 98.6 2.1 21.8 88.9 0.0 0.0 99.9 
2021 0.2 20.2 98.6 1.9 20.2 89.0 0.0 0.0 99.9 
2022 0.2 17.8 98.6 1.7 17.8 89.0 0.0 0.0 99.9 
2023 0.2 24.0 99.0 1.4 24.0 92.6 0.0 0.0 99.9 
2024 0.1 21.5 99.0 1.3 21.5 92.6 0.0 0.0 99.9 
2025 0.1 21.4 99.1 1.1 21.4 93.3 0.0 0.0 99.9 
2026 0.1 20.4 99.2 1.0 20.4 93.8 0.0 0.0 99.9 
2027 0.1 17.1 99.2 0.8 17.1 93.8 0.0 0.0 99.9 
2028 0.1 21.4 99.4 0.6 21.4 95.5 0.0 0.0 99.9 
2029 0.1 18.4 99.4 0.6 18.4 95.5 0.0 0.0 99.9 
2030 0.1 31.5 99.5 0.5 31.5 97.0 0.0 0.0 99.9 
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Mexico . 
 
5. Prior to the entry into force of the Protocol in 2016, Peru's average applied rate on all products 
was 2.2% , with 69.7% % of lines being duty -free (Table A1.4) . On agricultural products, the applied 
rate was 2.5%, with 58.9% of lines being duty -free; the applied rate on industrial  products was 
2.2%, with 71.8% of lines being duty free. Upon the Protocol's entry into force, Peru's overall tariff 
rate fell to 0.1% overall. Upon completion of the transition period – of nine years for imports from  
Chile and Colombia and 14 for Mexico , exporters from these three countries will benefit from a 
relative margin of preference of 100%. The share of duty -free lines will rea ch 99.8% (98.9% 
respectively for agricultural and 100% for industrial products).  WT/REG377/1  
 
- 82 - 
 
  Table A1.4 Peru: Indicators of MFN tariff rates and preferential rates for imports from 
Chile and Colombia, and Mexico  
Origin 
of goods  Year ALL PRODUCTS  Agricultural products  Industrialproducts  
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
MFN 2016 2.2 7.5 69.7 2.5 6.3 58.9 2.2 7.8 71.8 
Chile and 
Colombia  2016 0.1 15.9 99.1 0.8 15.9 94.5 0.0 0.0 100.0  
2017 0.1 14.9 99.1 0.7 14.9 94.6 0.0 0.0 100.0  
2018 0.1 16.7 99.3 0.6 16.7 95.4 0.0 0.0 100.0  
2019 0.1 14.3 99.3 0.5 14.3 95.5 0.0 0.0 100.0  
2020 0.1 14.2 99.4 0.4 14.2 96.2 0.0 0.0 100.0  
2021 0.1 11.5 99.4 0.4 11.5 96.2 0.0 0.0 100.0  
2022 0.0 8.7 99.4 0.3 8.7 96.2 0.0 0.0 100.0  
2023 0.0 7.8 99.5 0.2 7.8 96.9 0.0 0.0 100.0  
2024 0.0 4.4 99.5 0.1 4.4 96.9 0.0 0.0 100.0  
2025 0.0 5.4 99.8 0.0 5.4 98.9 0.0 0.0 100.0  
Mexico  2016 0.1 12.3 98.8 0.8 12.3 92.4 0.0 0.0 100.0  
2017 0.1 11.9 98.8 0.8 11.9 92.8 0.0 0.0 100.0  
2018 0.1 12.6 99.0 0.7 12.6 93.7 0.0 0.0 100.0  
2019 0.1 10.8 99.0 0.6 10.8 93.7 0.0 0.0 100.0  
2020 0.1 10.3 99.1 0.5 10.3 94.4 0.0 0.0 100.0  
2021 0.1 8.6 99.1 0.4 8.6 94.4 0.0 0.0 100.0  
2022 0.1 6.9 99.1 0.3 6.9 94.4 0.0 0.0 100.0  
2023 0.0 6.6 99.3 0.3 6.6 95.4 0.0 0.0 100.0  
2024 0.0 4.8 99.3 0.2 4.8 95.4 0.0 0.0 100.0  
2025 0.0 5.0 99.5 0.1 5.0 97.1 0.0 0.0 100.0  
2026 0.0 4.2 99.5 0.1 4.2 97.1 0.0 0.0 100.0  
2027 0.0 3.4 99.5 0.1 3.4 97.1 0.0 0.0 100.0  
2028 0.0 3.0 99.6 0.1 3.0 97.4 0.0 0.0 100.0  
2029 0.0 2.1 99.6 0.0 2.1 97.4 0.0 0.0 100.0  
2030 0.0 5.4 99.8 0.0 5.4 98.9 0.0 0.0 100.0  
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Peru.  
 
6. Tables A1.5 -A1.8 show the market access opportunities for each Party in other partners 
markets for its top 25 exports, based on the average top export products at the HS 6-digit level - 
for the three -year period prior to entry into force of the Protocol – namely 2013 -2015. The tables 
show in which year all HS tariff lines corresponding to the product will become duty -free in each of 
the other Parties' markets.  
7. Table A1.5 shows the market access conditions in the other Parties  for Chile's top 25 exports 
- covering respectively 47, 52 and 46 tariff lines in Colombia, Peru and Mexico - which in 2013 -2015 
accounted for 72.4% of its global exports. Prior to the entry into force of the Protocol, all of these  
were dutiable in Colombia, while Peru applied duties on 5 lines and Mexico had 19 dutiable lines. All 
MFN dutiable lines became  fully free in Colombia and Peru as of the entry into force of the Protocol, 
while that was the case in Mexico for 16 tariff lines. Mexico will liberalize three lines remaining 
dutiable  in 2020, 2025 and 2030 (respectively fish flour, fresh grapes and fresh apples).  Thus, there 
will be no remaining dutiable lines for the 25 Chilean export products in any of the other Parties'  
markets.  WT/REG377/1  
 
- 83 - 
 
  8. Table A1. 6 shows market access opportunities for Colo mbia's top 25 exports in the other 
Parties'  market s. These products accounted for 81.3% of its world exports during 2013 -2015 and 
covered 8 9, 104 and 121  tariff lines  in Chile, Peru and Mexico respectively . In 2016, none of these 
lines were MFN duty -free in Chile, while 72 (out of the 104) and 70 (out of the 121) were free in 
Peru and Mexico respectively. At the Protocol's entry into force, 86 tariff lines in Chile, 31 in Peru 
and 41 in Mexico became duty fre e. By 2030, few lines will remain dutiable – 3 in Chile's market, 
1 in Peru's market and 4 in Mexico's market; they correspond to sugar – in all markets – and also 
medic ines in Mexico.  
9. Table A1.7 shows that Mexico's top 25 exports in the other Parties'  markets accounted for 
45.1% of its world exports during 2013 -2015 and covered 105, 96 and 95 tariff lines in Chile, 
Colombia and Peru respectively. In 2016, all of them were MFN dutiable in Chile and Colombia, while 
in Peru 76 (out of the 95) were MFN duty -free. At the Protocol's entry into force, 86 tariff lines in 
Chile, 31 in Peru and 41 in Mexico became duty free. All MFN dutiable lines became fully liberalized 
in all of its partners as of the entry into force of the Protocol. Thus, there will be no  lines remaining 
dutiable for th e 25 Mexican export products in any of the other Parties'  markets.  
10. Table A1.8 shows that Peru's top 25 exports - covering respectively 86, 55 and 47 tariff lines 
in Chile, Colombia and Mexico - accounted for 76.1% of its global exp orts. In 2016, all of them were 
MFN dutiable in Chile and Colombia, while in Mexico 32 (out of the 47) were MFN duty -free. All MFN 
dutiable lines became liberalized  in Colombia as of the entry into force of the Protocol, while that 
was the case for 83 tariff lines  in Chile and 8 in Mexico . Chile will liberalize the three additional lines 
in 2020  and Mexico in 2020, 2023, 2025 and 2030 ( coffee ). Thus, there will be no lines remaining 
dutiable for th e 25 Peruvian  export products in any of the  other Parties'  markets.   
  WT/REG377/1  
 
- 84 - Table A1.5 Chile: Market access opportunities under the Protocol for Chile's top 25 exports to the world  
Chile's top export products in 2013 -2015  Access Conditions to Pacific Alliance parties'  import markets  
HS number and description of the 
product  
Share in global exports 
(%) Colombia  Peru  Mexico  
MFN 2016  
Duty free lines Under 
the Protocol (2016)  MFN 2016  
Duty free lines Under 
the Protocol (2016)  MFN 2016  
Duty free lines 
Under the 
Protocol  Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
2016  
2020  
2025  
2030  
740311  Copper, refined, in the form of 
cathodes  23.7 5 1  1 0.0  1  0.0  1     
260300  Copper ores and concentrates  22.0 5 1  1 0.0  1  0.0  1     
740200  Copper, unrefined; copper 
anodes for electrolytic refining  4.0 5 3  3 0.0  3  0.0  1     
220421  Wine of fresh grapes  2.1 15 1  1 6.0 1  1 20.0 4  4    
080610  Fresh grapes  2.1 15 1  1 6.0 1  1 15.0 1    1  
470321  Semi-bleached or bleached 
coniferous chemical wood pulp  1.8 5 1  1 0.0  1  0.0  2     
470329  Semi-bleached or bleached non -
coniferous chemical wood pulp  1.7 5 1  1 0.0  1  0.0  2     
710812  Gold, incl. gold plated with 
platinum, unwrought  1.4 5 1  1 0.0  1  0.0  1     
260111  Non-agglomerated iron ores and 
concentrates  1.2 5 1  1 0.0  1  0.0  1     
440710  Coniferous wood sawn or 
chipped lengthwise, sliced or  1.2 5 2  2 0.0  2  2.0 2 3 2    
030441  Fresh or chilled fillets of pacific 
salmon  1.1 15 1  1 0.0  1  17.0 1  1    
080810  Fresh apples  1.0 15 1  1 6.0 1  1 20.0 1     1 
261310  Roasted molybdenum ores and 
concentrates  1.0 5 1  1 0.0  1  0.0  1     
280120  Iodine  0.9 5 1  1 0.0  1  0.0  1     
030481  Frozen fillets of pacific salmon  0.8 15 1  1 0.0  1  17.0 1  1    
081040  Fresh cranberries, bilberries and 
other fruits of the genus  0.7 15 1  1 6.0 1  1 20.0 1  1    
030312  Frozen pacific salmon  0.7 15 1  1 0.0  1  17.0 1  1    
080929  Fresh cherries  0.7 15 1  1 6.0 1  1 20.0 1  1    
030313  Frozen, atlantic salmon "salmo 
salar" and danube salmon "  0.7 15 1  1 0.0  1  17.0 1  1     
  WT/REG377/1  
 
- 85 - Chile's top export products in 2013 -2015  Access Conditions to Pacific Alliance parties'  import markets  
HS number and description of the 
product  
Share in global exports 
(%) Colombia  Peru  Mexico  
MFN 2016  
Duty free lines Under 
the Protocol (2016)  MFN 2016  
Duty free lines Under 
the Protocol (2016)  MFN 2016  
Duty free lines 
Under the 
Protocol  Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
2016  
2020  
2025  
2030  
030214  Fresh or chilled atlantic salmon 
"salmo salar" and danube  0.7 15 1  1 0.0  1  17.0 1  1    
310420  Potassium chloride for use as 
fertiliser  0.6 5 2  2 0.0  2  0.0  1     
271019  Medium oils and preparations, of 
petroleum or bituminous  0.6 5 17  17 0.0  22  0.4 1 8 1    
262099  Slag, ash and residues, 
containing metals or metal  0.6 5 1  1 0.0  1  0.0  4     
740811  Wire of refined copper, with a 
maximum cross -sectional  0.6 5 1  1 0.0  1  5.0 2  2    
230120  Flours, meals and pellets of fish 
or crustaceans, molluscs or  0.6 10 3  3 0.0  3  15.0 1   1   
TOTALS  72.4 9.2 47 - 47 1.2 5 47 5 8.1 19 27 16 1 1 1 
Note:  Based on the  HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Pacific Alliance parties and UNSD -Comtrade.  
 
   
  WT/REG377/1  
 
- 86 - Table A1.6 Colombia: Market access opportunities under the Protocol for Colombia's top 25 exports to the world  
Colombia's top export products in 2013 -2015  Access Conditions to Pacific Alliance  parties'  import markets  
Remain Dutiable  
HS number and description of the 
product  
Share in global exports 
(%) Chile  Peru  Mexico  
MFN 2016  
Duty free lines Under 
the Protocol (2016)  
Remain Dutiable  MFN 2016  
Duty free lines Under 
the Protocol (2016)  
Remain Dutiable  MFN 2016  
Duty free lines 
Under the 
Protocol  Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
2016  
2018  
2020  
2030  
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  44.4 6.0 2  2  0.0  1   0.0  2      
270112  Bituminous coal, whether or not 
pulverised, non -agglomerated  11.3 6.0 3  3  0.0  1   0.0  1      
090111  Coffee  4.6 6.0 1  1  11.0 2  2  20.0 2     2  
271019  Medium oils and preparations, of 
petroleum or bituminous minerals  4.3 6.0 12  12  0.0  22   0.4 1 8 1     
710812  Gold, incl. gold plated with platinum, 
unwrought, for non -monetary  3.0 6.0 1  1  0.0  1   0.0  1      
080390  Fresh or dried bananas  1.5 6.0 1  1  6.0 4  4  20.0 1     1  
271012  Light oils and preparations, of 
petroleum or bituminous minerals.  1.4 6.0 11  11  0.0  18   0.0  8      
060319  Fresh cut flowers and buds, of a kind 
suitable for bouquets  1.2 6.0 9  9  6.0 5  5  20.0 9  9     
720260  Ferro-nickel  1.2 6.0 1  1  0.0  1   0.0  1      
870323  Motor cars and other motor vehicles 
principally designed for the transport  0.8 6.0 6  6  6.0 4  4  35.0 2  2     
270400  Coke and semi -coke of coal, of lignite 
or of peat, whether or not 0.7 6.0 1  1  0.0  3   0.0  2      
060311  Fresh cut roses and buds, of a kind 
suitable for bouquets or for  0.7 6.0 1  1  6.0 1  1  20.0 1  1     
390410  Poly"vinyl chloride", in primary forms  0.6 6.0 3  3  0.0  3   5.4 5  5     
300490  Medicaments consisting of mixed or 
unmixed products  0.6 6.0 2  2  6.0 7  7  1.8 14 36 13    1 
170490  Sugar confectionery not containing 
cocoa, incl. white chocolate  0.6 6.0 7  7  6.0 2  2  20.0 1  1     
390210  Polypropylene, in primary forms  0.6 6.0 1  1  0.0  1   5.5 2  2     
170199  Cane or beet sugar and chemically 
pure sucrose, in solid form  0.5 * 3   3 0.0 1 1  1 0.0 3      3 
740400  Waste and scrap, of copper  0.5 6.0 5  5  0.0  1   0.0  3      
271121  Natural gas in gaseous state  0.5 6.0 1  1  0.0  1   0.0  1      
210111  Extracts, essences and concentrates, 
of coffee  0.5 6.0 4  4  0.0  1   45.0 3   1 2    
  WT/REG377/1  
 
- 87 - Colombia's top export products in 2013 -2015  Access Conditions to Pacific Alliance  parties'  import markets  
Remain Dutiable  
HS number and description of the 
product  
Share in global exports 
(%) Chile  Peru  Mexico  
MFN 2016  
Duty free lines Under 
the Protocol (2016)  
Remain Dutiable  MFN 2016  
Duty free lines Under 
the Protocol (2016)  
Remain Dutiable  MFN 2016  
Duty free lines 
Under the 
Protocol  Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
2016  
2018  
2020  
2030  
060312  Fresh cut carnations and buds, of a 
kind suitable for bouquets  0.4 6.0 1  1  6.0 2  2  20.0 1  1     
380892  Fungicides  0.4 6.0 4  4  0.0  6   0.0  3      
151110  Crude palm oil  0.3 6.0 1  1  6.0 1  1  3.0 1  1     
380891  Insecticides  0.3 6.0 4  4  0.0  11   0.0  4      
961900  Sanitary towels (pads) and tampons, 
napkins and napkin liners  0.3 6.0 4  4  6.0 3  3  13.0 5  5     
Total  81.3 5.8 89 - 86 3 2.6 32 72 31 1 9.2 51 70 41 1 2 3 4 
* Tariff line subject to price -band.  
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by Pacific Alliance parties and UNSD -Comtrade.  
  
  WT/REG377/1  
 
- 88 - Table A1.7 Mexico: Market access opportunities under the Protocol for Mexico's top 25 exports to the world.   
Mexico's top export products in 2013 -2015  Access Conditions to Pacific Alliance  parties'  import markets  
HS number and description of the product  
Share in global 
exports (%)  Chile  Colombia  Peru  
MFN 2016  
Duty free lines 
Under the Protocol 
(2016)  MFN 2016  
Duty free lines 
Under the Protocol 
(2016)  MFN 2016  
Duty free 
lines 
Under the 
Protocol 
(2016)  Average MFN 
applied rate 
(%) 
Dutiable lines  
Duty free lines  
Average MFN 
applied rate 
(%) 
Dutiable lines  
Duty free lines  
Average MFN 
applied rate 
(%) 
Dutiable lines  
Duty free lines  
270900  Petroleum oils and oils obtained from bituminous 
minerals, crude  8.4 6.0 2  2 5.0 1  1 0.0  1  
870323  Motor cars and other motor vehicles  principally 
designed for the transport of persons  5.7 6.0 6  6 35.0 4  4 6.0 4  4 
852872  Reception apparatus for television, colour, whether 
or not incorporating radio -broadcast receivers  3.7 6.0 4  4 15.0 5  5 6.0 1  1 
870431  Motor vehicles for the transport of goods, with spark -
ignition internal combustion piston engine  3.4 6.0 12  12 22.5 4  4 0.0  3  
854430  Ignition wiring sets and other wiring sets for 
vehicles, aircraft or ships  1.8 6.0 1  1 10.0 1  1 0.0  1  
851762  Machines for the reception, conversion and 
transmission or regeneration of voice, images  1.8 6.0 6  6 5.0 3  3 0.0  3  
847150  Processing units for automatic data -processing 
machines  1.8 6.0 1  1 5.0 1  1 0.0  1  
870120  Road tractors for semi -trailers  1.8 6.0 3  3 15.0 1  1 0.0  1  
847149  Data-processing machines, automatic, presented in 
the form of systems  1.7 6.0 2  2 5.0 1  1 0.0  1  
851770  Parts of telephone sets, telephones for cellular 
networks or for other wireless networks  1.4 6.0 1  1 5.0 1  1 0.0  1  
940190  Parts of seats, n.e.s.  1.4 6.0 3  3 10.0 2  2 6.0 2  2 
870829  Parts and accessories of bodies for tractors, motor 
vehicles for the transport of ten or more persons  1.2 6.0 6  6 9.2 6  6 0.0  6  
710812  Gold, incl. gold plated with platinum, unwrought, for 
non-monetary purposes  1.0 6.0 1  1 5.0 1  1 0.0  1  
870422  Motor vehicles for the transport of goods, with 
compression -ignition internal combustion piston  1.0 6.0 10  10 15.0 3  3 0.0  3  
853710  Boards, cabinets and similar combinations of 
apparatus for electric control  0.9 6.0 1  1 10.0 2  2 0.0  2  
870899  Parts and accessories, for tractors, motor vehicles 
for the transport of ten or more persons  0.9 6.0 3  3 7.1 12  12 0.0  12  
840734  Spark -ignition reciprocating piston  engine, of a kind 
used for vehicles of chapter 87  0.9 6.0 1  1 5.0 2  2 0.0  1  
870850  Drive -axles with differential, whether or not provided 
with other transmission components  0.9 6.0 1  1 7.5 4  4 0.0  4   
  WT/REG377/1  
 
- 89 - Mexico's top export products in 2013 -2015  Access Conditions to Pacific Alliance  parties'  import markets  
HS number and description of the product  
Share in global 
exports (%)  Chile  Colombia  Peru  
MFN 2016  
Duty free lines 
Under the Protocol 
(2016)  MFN 2016  
Duty free lines 
Under the Protocol 
(2016)  MFN 2016  
Duty free 
lines 
Under the 
Protocol 
(2016)  Average MFN 
applied rate 
(%) 
Dutiable lines  
Duty free lines  
Average MFN 
applied rate 
(%) 
Dutiable lines  
Duty free lines  
Average MFN 
applied rate 
(%) 
Dutiable lines  
Duty free lines  
870324  Motor cars and other motor vehicles principally 
designed for the transport of persons  0.9 6.0 6  6 35.0 4  4 6.0 4  4 
870322  Motor cars and other motor vehicles principally 
designed for the transport of persons  0.9 6.0 6  6 35.0 4  4 6.0 4  4 
271019  Medium oils and preparations, of petroleum or 
bituminous minerals, not containing biodiesel, n.e.s.  0.8 6.0 12  12 5.0 17  17 0.0  22  
851712  Telephones for cellular networks "mobile 
telephones" or for other wireless networks  0.8 6.0 1  1 5.0 1  1 0.0  1  
840991  Parts suitable for use solely or principally with spark -
ignition internal combustion piston engine, n.e.s.  0.7 6.0 4  4 5.5 10  10 0.0  10  
841810  Combined refrigerator -freezers, with separate 
external doors  0.7 6.0 5  5 15.0 4  4 11.0 4  4 
901890  Instruments and appliances used in medical, surgical 
or veterinary sciences, n.e.s.  0.7 6.0 7  7 5.0 2  2 0.0  2  
TOTALS  45.1 6.0 105 - 105 11.9 96 - 96 1.6 19 76 19 
Note:  Based on the HS2012 nomenclature.  
Source:  WTO estimates based on data provided by Pacific Alliance parties and UNSD -Comtrade.  
 
   
  WT/REG377/1  
 
- 90 - Table A1.8 Peru: Market access opportunities under the Protocol for Peru's top 25 exports to the world.   
Peru's top export products in 2013 -2015  Access Conditions to Pacific Alliance  parties'  import markets  
HS number and description of the product  
Share in global 
exports (%)  Chile  Colombia  Mexico  
MFN 2016  
Duty free 
lines 
Under the 
Protocol  MFN 2016  
Duty free lines 
Under the Protocol 
(2016)  MFN 2016  
Duty free lines 
Under the Protocol  Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  2016  
2020  
2016  
2020  
2023  
2025  
2030  
260300  Copper ores and concentrates  18.5 6.0 1  1  5 1  1 0.0  1      
710812  Gold, incl. gold plated with platinum, 
unwrought  17.1 6.0 1  1  5 1  1 0.0  1      
740311  Copper, refined, in the form of cathodes 
and sections of cathodes  4.8 6.0 1  1  5 1  1 0.0  1      
271012  Light oils and preparations, of petroleum 
or bituminous minerals  3.8 6.0 11  11  5 10  10 0.0  8      
271019  Medium oils and preparations, of 
petroleum or bituminous minerals  3.5 6.0 12  12  5 17  17 0.4 1 8 1     
230120  Flours, meals and pellets of fish or 
crustaceans, molluscs  3.4 6.0 7  7  10 3  3 15.0 1   1    
260800  Zinc ores and concentrates  3.0 6.0 1  1  5 1  1 0.0  1      
260700  Lead ores and concentrates  2.8 6.0 1  1  5 1  1 0.0  1      
271111  Natural gas, liquefied  2.3 6.0 1  1  5 1  1 0.0  1      
090111  Coffee  1.8 6.0 1  1  10 2  2 20.0 2      2 
260111  Non-agglomerated iron ores and 
concentrates  1.6 6.0 3  3  5 1  1 0.0  1      
080610  Fresh grapes  1.6 6.0 18  18  15 1  1 15.0 1     1  
800110  Unwrought tin, not alloyed  1.2 6.0 1  1  5 1  1 0.0  1      
261610  Silver ores and concentrates  1.2 6.0 1  1  5 1  1 0.0  1      
710691  Silver, incl. silver plated with gold or 
platinum  1.1 6.0 2  2  5 2  2 0.0  1      
070920  Fresh or chilled asparagus  1.1 6.0 2  2  15 1  1 10.0 2    2   
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  1.0 6.0 2  2  5 1  1 0.0  2      
251010  Natural calcium phosphates and natural 
aluminium calcium  0.9 6.0 1  1  5 1  1 0.0  2      
150420  Fats and  oils of fish and their fractions, 
whether or not refined  0.9 6.0 3   3 10 2  2 10.0 2  1 1    
610910  T-shirts, singlets and other vests of 
cotton, knitted or crocheted  0.9 6.0 4  4  15 1  1 25.0 1  1     
790111  Unwrought zinc, not alloyed  0.9 6.0 1  1  5 1  1 0.0  1      
261390  Molybdenum ores and concentrates  0.8 6.0 2  2  5 1  1 0.0  1       
  WT/REG377/1  
 
- 91 - Peru's top export products in 2013 -2015  Access Conditions to Pacific Alliance  parties'  import markets  
HS number and description of the product  
Share in global 
exports (%)  Chile  Colombia  Mexico  
MFN 2016  
Duty free 
lines 
Under the 
Protocol  MFN 2016  
Duty free lines 
Under the Protocol 
(2016)  MFN 2016  
Duty free lines 
Under the Protocol  Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  
Average MFN 
applied rate (%)  
Dutiable lines  
Duty free lines  2016  
2020  
2016  
2020  
2023  
2025  
2030  
080440  Fresh or dried avocados  0.7 6.0 5  5  15 1  1 20.0 1  1     
740811  Wire of refined copper, with a maximum 
cross-sectional dimension of > 6 mm  0.6 6.0 2  2  5 1  1 5.0 2  2     
030749  Cuttle fish "sepia officinalis, rossia 
macrosoma, sepiola spp."  0.6 6.0 2  2  15 1  1 17.0 2  2     
Total  76.1 6.0 86 - 83 3 7.6 55 - 55  15 32 8 2 2 1 2 
Note:  Based on the HS2012 nomenclature.  
Source:  WTO estimates based on data provided by the Parties and UNSD -Comtrade.  
 
 WT/REG377/1  
 
- 92 - 
 
  - 92 - ANNEX 2  
MEXICO'S PROHIBITED LINES  
Chemicals and drugs prohibited for health reasons  
 
1. 0301.99.01  
2. 1208.90.03  
3. 1209.99.07  
4. 1211.90.02  
5. 1302.11.02  
6. 1302.19.02  
7. 1302.39.04  
8. 2833.29.03  
9. 2903.82.02  
10. 2903.89.03  
11. 2910.90.01  
12. 2931.90.05  
13. 2939.11.01  
14. 3003.40.01  
15. 3003.40.02  
16. 3003.90.05  
17. 3004.40.01  
18. 3004.40.02  
19. 3004.90.33  
20. 4103.20.02  
21. 4908.90.05  
22. 4911.91.05  
 
__________