WT/REG377/2  
22 August  2019 
(19-5362) Page: 1/7 
Committee on Regional Trade Agreements  Original:  English/Spanish  
 
  
PACIFIC ALLIANCE – ADDITIONAL PROTOCOL TO THE FRAMEWORK AGREEMENT  
BETWEEN COLOMBIA, CHILE, MEXICO AND PERU, GOODS AND SERVICES  
QUESTIONS AND REPLIES  
 The following communication, dated 14 August  2019, is being circulated at the request of the 
delegations of Colombia, Chile, Mexico and Peru . 
 
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Questions from the delegation of Canada  
 
Trade environment  
 
1.1.  Section 1 highlights the trade environment between the Pacific Alliance members 
using data from 2001 to 2016/2017.  
 Since the coming into force of the Protocol, how has overall trade between the 
Pacific Alliance members evolved.  
 
Response from the Parties  
 
Country  Trade ranking within the Pacific Alliance  
Exports 2017  Imports 2017  
Chile  Peru 7th, Mexico 13th, Colombia 18th  Mexico 6th, Colombia  14th, Peru 15th  
Colombia  Mexico 5th, Peru 9th, Chile 10th Mexico 3rd, Chile 15th, Peru 16th 
Mexico  Colombia  10th, Chile  15th, Peru 17th Colombia  21st, Chile  23rd, Peru 39th 
Peru  Chile 11th, Colombia  16th, Mexico 21st Mexico 4th, Colombia  6th, Chile 7th 
Source:  United  Nations Comtrade Database.  
 
Country  Trade ranking within the Pacific Alliance  
Exports  2018  Imports  2018  
Chile  Peru 6th, Mexico 11th, Colombia 19th Mexico 7th, Colombia  12th, Peru 15th 
Colombia  Mexico 6th, Chile  8th, Peru 10th Mexico 3rd, Peru 15th, Chile  17th 
Mexico  Colombia  7th, Chile  12th, Peru 18th Colombia  22nd, Chile  25th, Peru 42nd 
Peru  Chile 10th, Colombia  14th, Mexico 19th Mexico 5th, Colombia  6th, Chile  7th 
Source : United Nations Comtrade Database . 
 
Provisions on trade in goods  
 
Import duties and charges, and quantitative restrictions  
1.2.  Paragraph 3.25 (footnote 16) states that Peru excluded from tariff liberalization 
20 tariff lines that were duty -free on an MFN basis in 2016.  
 Why has Peru excluded from tariff liberalization 20 tariff lines that were duty -free 
on an MFN basis?  
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  Response from the delegation of Peru  
 
 There are 20 tariff lines that were MFN 2016 duty free that Pe ru excluded under the Protocol, 
15 of them are totally excluded and 5 of them are partially excluded according to the characteristics 
of the goods (ex outs).  
 
 Under the Protocol, for goods classified in the staging category X are not subject to tariff 
elimination meaning that Peru doesn't grant any tariff for them . The rates that Peru will apply to 
them will be the MFN tariff at the time of importation."  
 
Regulator y provisions on trade in goods  
 
Technical barriers to trade  
 
1.3.  Paragraph 3.47  makes reference to Annex 1 on the "Elimination of TBT for cosmetic 
products".  
a. Does the Protocol include other sectoral annexes?  
Response from the Parties  
 
 The First Modifying Protocol only includes the sectoral annex on the "Elimination of TBT for 
cosmetic prod ucts".  
 
b. Is the P acific Alliance  considering other sectoral annexes to add to the Protocol?  
Response from the Parties  
 
 To date, the Pacific Alliance has completed negotiation s on five sectoral annexes : cosmetics, 
medical devices, food supplements , pharmaceutical products and organic products . Currently, the 
Pacific Alliance is working on the implementation of the first four of the aforementioned annexes . It 
is also negotiating an annex on household cleaning products . In the last Presidential Declaration by 
the Pacific Alliance, signed on 6 July 2019 in Lima, Peru, an agreement was reached  to consider 
initiating  negotiations on a new sector on regulatory cooperation . 
 
1.4.  Paragraph 3.49 makes reference to the establishment o f a TBT Committee.  
a. Has the TBT Committee ever been convened by the Parties since the coming into 
force of the Protocol?  
Response from the Parties  
 
 Thus far, no issue requiring a meeting of the Committee has arisen . However, a TBT technical 
group on regula tory cooperation has been meeting periodically since 2012, in order to approve  new 
sectoral annexes and work on the implementation of annexes that have already been agreed on . TBT 
experts meet on a regular basis , which provides an opportunity to address an y TBT -related matters.  
 
b. If so, for what purpose (e.g. consulting on matters arising under the Chapter, 
addressing issues Parties raise, etc.)?  
Response from the Parties  
 
 To date, no matter requiring a meeting of the TBT Committee with regard to  the Protocol has 
arisen . However, the TBT Group could examine and address any matters related to TBT chapters 
requiring discussion.  
 
Provisions on trade in services  
Colombia  
 
1.5.  Paragr aph 4.50 states that Colombia reserves the right to adopt any non -conforming 
measures on social services and with respect to socially or economically disadvantage 
minorities and ethnic groups and to Indigenous groups.  WT/REG377/2  
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  a. Could Colombia please provide examples of measures that do not conform with 
the obligations and that benefit from these reservations?  
Response from the delegation of Colombia  
 In Annex II on services and investment , Colombia included a reservation covering  social 
services established o r maintained for reasons of public interest , namely, correctional, income  
security or insurance , social security, social welfare, public education and training, health, and child 
care services . In this regard , the comprehensive social security system in Co lombia currently 
comprises the following mandatory systems : a general pension system, a general system of social 
security in health, a general system of occupational risks, and an unemployment and unemployment 
assistance regime.  
 
 On the basis of this rese rvation, Colombia retains the authority  to adopt or  maintain any 
measure on the application and enforcement of laws and the provision of correctional services and 
the social services mentioned above . These measures may be contrary to the national treatment 
and most -favoured -nation disciplines of the chapters on cross -border trade in services  and the 
chapter on investment , and to the disciplines on local presence, market access, performance 
requirements, senior managers and board s of directors . 
 
 In Annex II , Colombia also included a reservation covering  matters related to minorities and 
ethnic groups , which include indigenous peoples and Roma  peoples (gypsies ), Afro-Colombian 
communities,  and the Raizal  communities of the Archipelago of San Andrés, Providencia and 
Santa  Catalina . On the basis of this reservation, Colombia retains the authority  to adopt or maintain 
any measure that grants rights or preferences to social ly- or economically -disadvantaged mi norities 
and ethnic groups, including with regard to communal lands held by ethnic groups in accordance 
with Article 63 of the Political Constitution of Colombia . These measures may be contrary to the 
national treatment and most -favoured -nation disciplines  of the chapters on cross -border trade in 
services  and the chapter on investment , and to the disciplines on local presence, market access, 
performance requirements, senior managers and board s of directors.  
 
b. Does Colombia take any additional reservations in  its FTAs with respect to 
Indigenous peoples?  
Response from the delegation of Colombia  
 
 The reservation contained in Annex II mentioned above, which refers to matters related to 
minorities and ethnic groups, is the reservation included by Colombia in its trade agreements.  
 
General provisions of the protocol  
 
1.6.  Section 5 on General provisions of the protocol sets out various disciplines covered 
by the Protocol . While Competition Policy is not currently within the scope of the Protocol, 
member states of the Pacific Alliance have included provisions on Competition within 
other bilatera l and regional FTAs.  
Has the Pacific Alliance considered expanding the Protocol to include Competition 
Policy?  
Response from the Parties  
 
 Currently, the Pacific Alliance is engaged in negotiations with the candidates for associate 
membership . The inclusio n of a chapter on competition in the Protocol of the Pacific Alliance has 
therefore not yet been examined  internally . 
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  Questions from the delegation of Ecuador  
 
Tariff rate quotas  
 
1.7.  Paragraph 3.28 on page 3 3 states  that t here are no provisions on tariff rate quotas 
(TRQs) in the Protocol . 
 In accordance with this par agraph and the corresponding footnote , it is understood 
that each Party upholds its multilateral and bilatera l commitments on tariff rate quotas . 
In accordance with the Protocol, f or co mmitments made  on import licences for the Parties  
(the maximum  period is reduced for the granting and expedition of licences), it is 
important to know how these quotas are administered without affecting the principle of 
non-discrimination regarding  the importation of similar products from other trading 
partners.  
 
Response from the delegation of Mexico  
 
 Mexico confirms that import quot as were not negotiated within the Pacific Alliance . The 
commitments undertaken in the Pacific Alliance regarding import licenses  are in conformity with  the 
rights and obligations established in the Agreement on Import Licensing Procedures and Article  XXIV 
of the  GATT 1994.  
 
Response from the delegation of Colombia  
 
 Article 8 of the Pacific Alliance Framework Agreement establishes that the decisions and 
agreements adopted in the context of the Pacific Alliance  "shall not replace nor amend the economic, 
trade or bilateral, regional or multilateral integration agreements in force among the Parties" . 
 
Response from the delegation of Peru  
 
 In the bilateral agreement between Peru and Mexico, both Parties have applied tarif f quotas, 
which are regulated under the aforementioned agreement . Within the Pacific Alliance, Peru does not 
apply tariff quotas.  
 
Rules of origin  
 
1.8.  Concerning  paragraph 3.33 on page 3 4, as diagonal cumulation is not foreseen in the 
Protocol, what verification mechanisms are used by  the Parties , in addition to the 
corresponding certificate of origin, to avoid such  cumulation , given the multiple free trade 
agreements that the Parties have e stablished with various countries ? For example, in the 
case of products from the automo tive sector that have an RVC threshold of 50 %. 
Response from the Parties  
 
 Preventive mechanisms are found not only in the requirements governing certification of 
origin , which , in this agreement , constitutes  certification by the authorities (in accordance with 
Article 4.17.3), but also in the post-clearance control mechanism which is found  in the rule on 
verification of origin, as described in Article 4.26, and which is related to the obligations indicated in 
Article 4.25 on record -keeping requirements . Article 4.25 requires the competent authority to issue 
certificates of origin, and exporters and  importers to keep records demonstrating compliance with 
the regime of origin established in the agreement . 
 
Questions from the delegation of the European Union  
 
Provisions on trade in goods  
 
Regulatory provisions on trade in goods  
Subsidies and State -aid 
 
1.9.  Paragraph 3.52, page 37 : "3.52. The Parties prohibit the use of export subsidies on 
agricultural goods traded between them and commit to work towards the multilateral WT/REG377/2  
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  elimination of export subsidies on agricultural products in the WTO context 
(Article  3.16)."  
 Please explain how the Parties ensure compliance with the provision on prohibition 
of the use of export subsidies on agricultural goods traded between them.  
 
Response from the Parties  
 
 Each member of the Pacific Alliance is responsible for ensur ing compliance with the provisions 
of the agreement . The Market Access Committee ( Article  3.17 of Chapter 3 of the agreement ) serves, 
inter alia, to monitor compliance with, and the application and correct interpretation of the provisions 
of Chapter 3 on market access of the agreement . 
 
Provisions on trade in services  
 
Regulatory provisions  
Subsidies  
 
1.10.   Paragraph 4.99, page 62 : "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 exchanges of information 
is to take place within two y ears 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."  
 Could you explain why the exchange of information regarding governmental 
subsidies and grants has not taken place so far?  
 
Response from the Parties  
 
 As indicated, this exchange has not taken place . However,  it is important to  note that , as the 
Pacific Alliance countries are WTO M embers, they have a common understanding that it is sufficient 
to comply with WTO obligations in order to meet this requirement . An exchange of specific 
information in this regard is not necessary . Furthermore, the delegates of the Pacific Alliance meet 
regularly in various working groups , which means that any queries  on this and other service -related 
matters can be addressed directly by the corresponding working groups.  
 
Question from the delegation of Japan  
 
Regulatory provisions  
Domestic regulation  
 
1.11.   We understand that Article 9.9 of the Protocol concerning domestic regulation 
applies to all sectors that are committed in the Protocol, including the sectors that have 
not been committed in GATS . As you are the participating members of the plu rilateral 
open -ended meeting of WTO domestic regulation, we wonder if each member of 
Pacific  Alliance is willing to apply new disciplines on domestic regulations that are 
proposed in the meeting to sectors beyond the ones that are currently committed in GA TS. 
Response from the Parties  
 
 As indicated, the domestic regulations disciplines of the Protocol are applicable  to sectors that 
are committed and subject to the non -conforming measures put forward by each Party . Bearing in 
mind that the provisions that are currently being discussed at the WTO  are different from the 
provisions in the Protocol , and that, in recent years, bilateral and regional negotiations on market 
access commitments have been common practice, each country will analyse  independently the 
appropriateness and feasibility of making WTO provisions applicable  to the sectors that are alread y 
committed under  these frameworks, and unilaterally establish ing additional market access 
commitments, or request ing negotiations  on market access . 
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  Questions from the delegation of the United States  
Regulator y provisions  
Domestic regulation  
1.12.   In Paragraph 4.95, the report states that Article 9.9 of the Protocol foresees that 
any progress in the GATS with respect to certain reservations may require an adaption of 
the disciplines in this Article.  
a. How would the Parties compare the domestic regulations disciplines of this 
agreement to the commitments under currently under discussion in the WTO 
joint statement process?  
Response f rom the Parties  
 
Article 9.9 .8 of Chapter 9 on cross -border trade in services states : "the Parties recognize their 
mutual obligations related to domestic regulation under Article  VI:4 of the GATS and affirm their 
commitment to the development of any necessary disciplines in accordance therewith . Where any 
of these disciplines are adopted by WTO Members or applie d in another multilateral forum  in which 
the Parties participate, the Parties shall jointly review the disciplines, as appropriate, with a vie w to 
determining whether  these results should be incorporated in the Additional Protocol".  
 
 In this regard, following the completion of the WTO negotiations on domestic regulation, the 
members of the Pacific Alliance may conduct a joint review to determin e whether and to what extent 
they find it beneficial to incorporate  the results of the negotiations into the Protocol . 
 
b. Are they similar in scope and coverage?  
Response from the Parties  
 
 The disciplines contained in the Protocol go beyond the GATS and cover several similar 
disciplines that are currently being discussed in the WTO joint initiative on domestic regulation.  
 
Relationship with other agreements concluded by the Parties  
1.13.   Paragraph 5.30 states "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."  
a. We would like to better understand how this works in practice.  
Response from the Parties  
 
Article 8 of the Pacific Alliance Framework Agr eement  corresponds to the "principle of 
co-existence " with other agreements to which the same Parties are signatories . On the basis of  this 
principle, the Parties confirm the existing rights and obligations among them in such agreements . It 
should be point ed out that , if a provision of the Additional Protocol is inconsistent with a provision 
from another agreement to which the Party in question and at least one other Party are signatories, 
consultations will be held with the aim of reaching a mutually satis factory solution to the 
inconsistency . Such consultations must be different from the step provided for in the chapter on 
dispute settlement . Furthermore, it should be taken into consideration  that the fact that an 
agreement grants more favourable  treatment  to goods, services, investment or persons than in the 
Additional Protocol, does not constitute an inconsistency, as stated in the reply to question 2(b) with 
regard to the example requested . Thus, the application in practice of the co -existence of agreeme nts 
will depend on the specific rights and obligations in question (question  2(b)).  
b. We would appreciate some practical examples with regard to : (a) trade in goods ; 
(b) services, and (c) investment.  WT/REG377/2  
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  Response from the Parties  
 Regarding goods, exporters will choose the agreement that is more appropriate for the specific 
product ( tariff reduction ) and, accordingly, will use the certificate of origin corresponding only to this 
agreement . Concerning services and investment, the agr eements co -exist because the domestic law 
of the Party is always the same, independent of the agreements to which it is signatory . 
 
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