WT/REG314/2  
 
17 September 2015  
(15-4813)  Page: 1/8  
Committee on Regional Trade Agreements  Original: English/Spanish  
 
 FREE TRADE AGREEMENT BETWEEN THE UNITED STATES AND COLOMBIA 
(GOODS AND SERVICES) 
QUESTIONS AND REPLIES 
 The following communication, dated 16 Septem ber 2015, is being circulated at the request 
of the delegations of the United States and Colombia.  
_______________ 
   This document reproduces the questions addressed to the parties and the responses 
submitted. 
 Questions from the delegation of Canada 
 1.1.  Paragraph 3.1(3.2), with regard to para graph 3.1(3.2) on the specific exceptions to 
Annex 2.2. (National Treatment): the report mentions that Colombia has an exception 
for measures relating to the taxation of alcoholic beverages until four years after the 
date of entry into force of the Agreement (i.e., by 15 May 2016).  
 Could the Government of Colombia please  advise how it intends to address this 
issue and by when? 
 
With regard to measures relating to the taxation of alcoholic beverages, Colombia intends to 
implement its commitments in this area in accordance with the GATT and in the light of the 
provisions of a number of free trade agreements. To this end, central government bodies have 
worked in conjunction with authorities at other levels of government as well as with other parties interested in the development of proposals consistent with these commitments. To date, none of 
these proposals has secured the approval of Congre ss. The Office of the President of the Republic 
is currently leading discussions on the development of a new proposal, which has benefited from the technical support of the Ministries of Financ e and of Trade. In accordance with the agenda 
established by the Office of the President of th e Republic, once consensus on this proposal has 
been achieved at the technical level, talks will be held with interested parties prior to its 
submission to Congress for approval.   
1.2.  Paragraph 3.18: Canada recognizes that the rules of origin allow the use of certain 
non-originating goods listed in the Short Supply List Annex. 
 Could the Parties please provide a copy  of this Short Supply List Annex? 
 
The provisions relating to the Short Supply List contained in Annex 3-B are set out in 
Article 3.3, paragraphs 5 to 7. The list that was initially negotiated contained 18 inputs; two additional products have been included si nce the entry into force of the Agreement.  
 WT/REG314/2 
 
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   The Short Supply List in effect as at 31 August 2015 is provided below: 
 
1. 100% polyester crushed panne velour fabric of circular knit construction classified under 
tariff item 6001.92.aa 
2. Cuprammonium rayon filament yarn classified under subheading 5403.39 
3. Yarn of combed cashmere, combed cashmere blends, or combed camel hair, classified 
under tariff item 5108.20.aa 
4. Fabrics classified under subheadings 5513.11 or 5513.21, not of square construction, 
containing more than 70 warp ends and filling picks per square centimetre, of average yarn 
number exceeding 135 metric 
5. Fabrics classified under subheadings 5210.21 or 5210.31, not of square construction, 
containing more than 70 warp ends and filling picks per square centimetre, of average yarn 
number exceeding 135 metric 
6. Fabrics classified under subheadings 5407.81, 5407.82 or 5407.83, weighing less than 
170 grams per square meter, having a dobby weave created by a dobby attachment, 
of average yarn number exceeding 135 metric 
7. Fabrics classified under subheading 5208.51, of square construction, containing more than 
75 warp ends and filling picks per square cent imetre, made with single yarns, of average 
yarn number 95 metric or greater  
8. Fabrics classified under subheading 5208.41, with the warp coloured with vegetable dyes, 
and the filling yarns white or coloured with vegetable dyes, of average yarn number 
greater than 65 metric  
9. Ring-spun single yarn of English yarn numbe rs 30 and 50, containing 50% or more, but 
less than 85%, by weight of 0.9 denier or finer micro-modal fibre, mixed solely with 
US origin extra-long pima cotton, classified under subheading 5510.30.00.00 
10. Micro-denier 30 and 36 singles solution-dyed,  open-end spun, staple-spun viscose yarn, 
classified under subheading 5510.11.00.00 
11. Certain combed compact yarns, of wool or fi ne animal hair, classified under subheadings 
5107.10, 5107.20 or 5108.20 (except South American Camelidae fine hair) 
12. Fancy polyester filament fabric  
 
HTS tariff item : 5407.53.aa and 5407.53.bb  
Fibre content:  100% polyester  
Width:  58/60 inches  
Construction:  Plain, twill and satin weaves, in combinations of 75 denier, 100 denier, 
150 denier, and 300 denier yarn sizes, with mixes of 25% cationic/75% disperse, 50% 
cationic/50% disperse, and 100% cationic.  
Dyeing:  Containing at least three different yarns, each of which is dyed a different colour 
13. Certain ring-spun single yarns of English yarn number 30 and higher of 0.9 denier or finer 
micro-modal fibres, classified under subheading 5510.11.00.00 
14. 100% cotton, 4-thread twill weave, flannel fabrics , of yarn-dyed, combed, 
and ring-spun single yarns, of the specifications detailed below, classified under 
subheading 5208.43.00.00  
 
Fibre content:  100% cotton  
Weight:  136-140 g/m2  
Width:  148-150 centimetres  
Thread count:  38-40 warp ends per centimetre; 28-30 filling picks per centimetre; total: 
66-70 threads per square centimetre  
Yarn number:  48-52 metric warp and filling, ring-spun, combed; average yarn number 
48-50 metric  
Weave:  4-thread twill  
Finish:  Of two or more and up to eight yarns of different colours; napped on both sides WT/REG314/2 
 
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  15. 100% cotton, 4-thread twill weave, flannel fa brics, of yarn-dyed, combed, and ring-spun 
single yarns, of the specifications deta iled below, classified under subheading 
5208.43.00.00  
Fibre content:  100% cotton  
Weight:  301-303 g/m2  
Width:  142-145 centimetres  
Thread count:  25-26 warp ends per centimetre; 23-24 filling picks per centimetre; total: 
48-50 threads per square centimetre  
Yarn number:  35/2-36/2 metric warp and filling, ring-spun; overall average yarn number 
32-34 metric  
Weave:  4-thread twill; Herringbone twill  
Finish:  Of two or more yarns of different colours in the warp and filling; napped on both 
sides 
16. 100% cotton, 4-thread twill weave, flannel fa brics, of yarn-dyed, combed, and ring-spun 
single yarns, of the specifications deta iled below, classified under subheading 
5208.43.00.00  
 
Fibre content: 100% cotton  
Weight:  325-327 g/m2  
Width: 148-152 centimetres  
Thread count:  33-35 warp ends per centimetre; 57-59 filling picks per centimetre; total: 
90-94 threads per square centimetre 
Yarn number:  50-52 metric warp; 23-25 metric filling; overall average yarn number 
28-30 metric  
Weave:  Double-faced irregular 1 x 3 sateen  
Finish: Printed on one side on yarns of different colours; napped on both sides; sanforized 
17. 100% cotton, 4-thread twill weave, flannel fa brics, of yarn-dyed, combed, and ring-spun 
single yarns, of the specifications deta iled below, classified under subheading 
5208.43.00.00  
 
Fibre content: 100% cotton  
Yarn number: 39/1-41/1 metric combed ring-spun warp; 39/1-41/1 carded ring-spun 
filling; overall average yarn number: 38-40 metric  
Thread count:  43-45 warp ends per centimetre; 24-26 filling picks per centimetre; 
total 61-71 threads per square centimetre  
Weave:  3- or 4-thread twill  
Weight:  176-182 grams per square meter  
Width: 168-172 centimetres  
Finish:  (Piece) dyed, carbon-emerized on both sides 
18. 100% cotton, 4-thread twill weave, flannel fa brics, of yarn-dyed, combed, and ring-spun 
single yarns, of the specifications deta iled below, classified under subheading 
5208.43.00.00  
 
Fibre content: 100% cotton  
Weight:  150-160 g/m2  
Width: 148-152 centimetres  
Thread count:  50-52 warp ends per cm (25-26 x two plies)  
45-46 filling picks per cm (21-23 x two plies)  
92-98 thread per square cm (46-49 x two plies)  
Yarn number:  34 metric warp and filling, ring-spun and combed, two-ply, average yarn 
number 60-62 metric  
Weave:  2 x 2 twill  
Finish:  Yarns of different colours; napped WT/REG314/2 
 
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  19. Certain laminated composite fabric  
 
HTS: 6001.22.00.00; 6001.92.00.00 
 
Overall fabric details:  
Description:  Laminated polyester woven/micro velour grid one-way stretch with 
polyurethane laminate 
Construction:  Woven face/polyurethane laminate/circular-knit velour with grid pattern 
Fibre content:  90-96% polyester/4-10% spandex (includes both face and backer fabric) 
Weight: 287-351 grams per square meter 
Width:  Selvedge: 150.4-154.4 cm; minimum cuttable: 145.3-149.3 cm 
Finishing:  Bonded laminate with durable water repe llency on the face fabric, and optional 
on back 
 
Performance criteria for overall fabric:  
Air permeability (ASTM D737): maximum 1.5 
Durable water repellency (AATCC 22): greate r than or equal to 80 before wash 
 
Face fabric details:  
Construction:  Plain weave 
Fibre content:  81-87% polyester/13-19% spandex 
Warp fibre content/denier : 73-77 denier polyester; 39-41 denier spandex 
Filling fibre content/denier:  73-77 denier polyester; 39-41 denier spandex 
Characteristics of yarns:  Core-spun spandex (filament) 
Thread count : 49-52 picks per cm x 43-45 picks per cm 
Weight:  121.5-148.5 grams per square meter 
Width:  Selvedge: 150.4-154.4 cm; minimum cuttable: 145.3-149.3 cm 
Colouration:  Piece-dyed 
Finishing:  Bonded laminate with durable water repellency 
Other special characteristics:  2-way stretch 
 
Backer fabric details:  
Construction:  Circular-knit with a dropped stitch for the grid-brushed looped pile 
Fibre content: 100% polyester 
Warp fibre content/denier : 145-155 denier polyester 
Filling fibre content/denier:  73-77 denier polyester  
Characteristics of yarns: Filament 
Knitting gauge:  27-29 
Weight:  140.4-171.6 grams per square meter 
Width: Selvedge: 150.4-154.4 cm; minimum cuttable: 145.3-149.3 cm 
Colouration:  Piece-dyed 
Finishing:  Optional bonded laminate with durable water repellency 
 
Performance criteria:  
Pilling (ASTM D3512): Minimum 3 
Other special characteristics: Grid pattern 
 
Laminate description and performance :  
Bonded laminate with durable water repellency (air permeability maximum 1.5 per ASTM 
D737) 
 
NOTE (ranges): Ranges in these specifications reflect a tolerance from the target figures of 
up to 3% for fibre content, yarn size and th read count; up to 10% for weight; and up to 
five centimetres (two inches) for width. 
 
NOTE (processing variations): The yarn size designations describe a range of yarn 
specifications for yarn before knitting, dyeing and finishing of the fabric. They are intended 
as specifications to be followed by the mill in sourcing yarn used to produce the fabric. 
Dyeing, finishing and knitting can alter the characteristics of the yarn as it appears in the 
finished fabric. These specifications therefore include yarns appearing in the finished fabric 
as finer or coarser than the designated yarn si zes, provided that the variation occurs after 
processing of the greige yarn and production of the fabric. The specifications for the fabric WT/REG314/2 
 
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  apply to the fabric itself prior to cutting and sewing of the finished garment. Such 
processing may alter the measurements. 
 
Effective date: 3/18/13 
Reference No: 01.2013.02.11.Fabric.SoriniSametforPatagoniaInc 
20. Certain cotton corduroy fabric  
 
HTS subheading : 5801.22.10.00; 5801.22.90.00 
Wales: 6-10 wales per centimetre (19-23 wales per inch) 
Fibre content: Greater than 95% cotton by weight 
Weight:  133-147 grams per square meter  
Warp: 28-33 ends per centimetre 
Filling: 66-73 picks per centimetre 
 
Yarn counts:  
Warp yarn: English - 38-42; Metric - 65-70 
Filling yarn: English - 38-42; Metric - 65-70 
 
Width:  134-153 centimetres; 53-60 inches 
Finish:  Cut, desized 
 
NOTE: The yarn size designations describe a range of yarn specifications for yarn in its 
greige condition before dyeing and finishing of  the yarn (if applicable) and before knitting, 
dyeing and finishing of the fabric. They are inte nded as specifications to be followed by the 
mill in sourcing yarn used to produce the fabric. However, because dyeing, finishing and 
knitting can alter the characteristics of the yarn as it appears in the finished fabric, the 
specification therefore includes yarns appearing in the finished fabric as finer or coarser 
than the designated yarn sizes, provided that the variation occurs after processing of the 
greige yarn and production of the fabric. In addition, while the fabric is intended to be 
piece-dyed, the specifications include both piece- and yarn-dyed to accommodate any 
Customs' findings that the finished fabric appears to be yarn-dyed as a result of dye 
absorption. 
 
Effective date: 3/28/13 
Reference number: 3.2013.02.22.Fabric.AM&SforBellaBliss 
 
1.3.  Paragraph 4.32: Canada understands th ere are no provisions on safeguards in 
trade in services in the Agreement. 
 Could the Parties please explain what alternate arrangements or mechanisms, 
if any, are to be used in the event that  a safeguard-related issue should occur? 
 
Neither Party considered it necessary to include an explicit provision about safeguards in the 
Chapter on Cross-Border Services. Furthermore, the US experience is that safeguard issues 
typically do not arise in the context of trade in  services, and they have not been an issue in 
US free trade agreements, the first of which wa s concluded with Canada over 30 years ago. 
Nevertheless, if a safeguard-related issue were to  arise, the Agreement provides various means by 
which the parties could address the matter. For ex ample, the Chapter on Cross-Border Services 
provides for annual consultation on implementation of the Chapter or other matters of mutual interest affecting trade in services. A Free Trade Commission, comprised of cabinet-level 
representatives of the Parties, is charged with su pervising administration of the Agreement and is 
empowered to consider any matter that may affect the operation of the Agreement, especially about the potential negative effects on small and medium enterprises in the face of a sharp increase in services imports. The Agreement also  recognizes a process by which the Parties may 
amend the Agreement as they see fit. 
 WT/REG314/2 
 
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  Question from the delegation of Chile 
 
1.4.  Paragraph 5.13 of the document states  that "The further elaboration on many 
WTO IP subjects […] often goes beyond WTO rules and commitments. For example, 
an electronic system is to be created for the registration of trademarks". We would 
welcome more specific information, in particul ar on the rights and the way in which they 
go beyond WTO rules.  
 The Agreement elaborates on WTO rules and commitments, which are minimum obligations 
for WTO Members, often to address challenges and incorporate technologies that have emerged since the TRIPS Agreement was concluded over 20  years ago. For example, the reference the 
question makes to "an electronic system ... fo r the registration of trademarks", while not 
mentioned specifically in any WTO rules and commitments, is meant to facilitate the application 
and protection of trademarks. Electronic systems can help increase efficiency, transparency and acquisition of trademark rights, particularly for small and medium-sized enterprises. 
 
Questions from the delegation of the European Union 
 
Provisions on Trade in Services and Investment 
Liberalization commitments 
United States 
 1.5.  As concerns horizontal measures, the United States has removed its GATS 
horizontal restriction (modes 1-3) concerning the imposition  of differential treatment of 
excise taxes at the federal level under the Agreement. 
 Please confirm that the United States has indeed improved its offer related to 
taxation or is the removal of tax limitations caused by the fact that, unlike in the GATS, 
the US-Colombia Agreement largely excludes tax measures from its scope 
(see Article 22.3 in particular). 
  "We do not agree that the US-Colombia FTA covers taxation measures to a lesser extent than does the GATS. The architecture is different , but in our view, the FTA provisions address tax 
matters in greater detail. With regard to the specific excise tax measure, a grandfather clause in 
the US-Colombia FTA makes listing a specific limitation unnecessary."  
1.6.  According to the "Side letter on stat e measures", the US committed to inform 
Colombia on state measures related to reside ncy and nationality requirements in certain 
professional services in selected states.  
 Has this review been completed and we re the results communicated to Colombia? 
If yes, what is the outcome of the review as  compared to the US measures indicated in 
the US GATS schedule?  
The United States completed the review, and communicated the results to Colombia 
by a letter dated 10 February 2014. The review covered accounting, architecture, dentistry, engineering, legal services, medical general practitioners, nursing, and paramedics. 
All measures noted in the results of the review are administered in a manner consistent with the 
US GATS schedule.  
 
Table 4.2, United States: Sector-specific liberalization under the Agreement at the 
national level, excluding mode 4 
 
1.7.  Table 4.2 compares the degree of liber alization by sector in the Agreement with 
that in the US GATS schedule. Compared to its GATS schedule, the United States' 
sector-specific commitments are broader and deeper. For instance, commitments in 
business services, communication services, en vironmental services, financial services, 
health-related and social services, tourism and travel-related services, and transport 
services are broader under the Agreement.  WT/REG314/2 
 
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   Please explain how the improvements between GATS commitments and the 
US-Colombia FTA were assessed for the sectors,  where the US does not provide a list of 
non-conforming measures at state level (e.g . the sector of insurance or professional 
services, business services). 
 
 Table 4.2 was developed by the Secretariat, th erefore the United States cannot speak to the 
particular methodology. However, it is true that US FTA commitments are broader than those 
undertaken through the GATS. 
  The difference in coverage largely results from the use of the more liberal "negative-list" approach to scheduling limitations under the FTA, through which all sectors are bound unless a 
specific limitation is listed. The United States lists no limitation with regard to future sub-federal 
measures inconsistent with national treatment. As a result, the FTA provides comprehensive bindings of the level of openness und er existing sub-federal measures.  
 
 By contrast, because the US Schedule of Specific Commitments under the GATS applies a positive-list approach, only those sectors that are specifically listed are bound.  
 
 When compared against a standard list of sectors such as the Services Sectoral Classification (W/120), an objective analysis will find that more sectors are omitted from the GATS than are 
limited under the FTA. Thus, US obligations with regard to national treatment are broader under 
the FTA as compared with the GATS.  
 Questions from the delegation of Thailand 
 1.8.  Paragraph 5.15: Chapter 15 contains pr ovisions on electronic commerce, including 
trade in digital products. The provisions of the chapter re-enforce the WTO moratorium 
on E-commerce in that no Party may apply cu stoms duties, fees or other charges on the 
importation or exportation of digital prod ucts. However, the Agreement allows the 
Parties to impose internal taxes or other in ternal charges on domestic sales of digital 
products. The supply of services delivered elec tronically falls within the scope of those 
respective Chapters. Article 15.3 provides for the non-discriminatory treatment of digital 
products, both in terms of discrimination  against other like digital products and vis-à-vis  
the other Party or non-Parties to the Agreement. This provision is subject to the 
reservations taken under non-conforming measures of Chapters 10, 11, and 12. 
Furthermore, the Parties shall endeavour to  have a paperless trade administration 
whereby all documents would be available to the public in electronic form and trade 
administration documents would be submitte d electronically. The Chapter also contains 
provisions on transparency, authen tication, and consumer protection. 
Do the United States and Colombia impose internal taxes or ot her internal charges 
on domestic sales of digital products?
 If any, please identify and explain. 
 
Response from the delegation of the United States 
 
 In the case of the United States, US states are allowed to apply taxes, such as sales tax, 
to domestic sales of digital products. However,  under US law, the Internet Tax Freedom Act, 
US states are prohibited currently from enacting Internet access taxes or Internet-specific taxes 
like email or bandwidth taxes.  
 Response from the delegation of Colombia 
 
 Colombia does not currently apply internal charges (e.g. VAT) to electronic sales of digital 
products. Discussions on the issue are, however, ongoing given that the agency responsible for tax matters (the National Customs and Excise Directorate, DIAN) is considering the possibility of 
drawing up a special regulation governing electronic commerce as a whole, which would cover 
sales of goods and services purchased or distributed electronically.   WT/REG314/2 
 
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  1.9.  Paragraph 3.44: A special provision on su gar products is provided for in Article 2.19 
which gives the US the option to compensa te Colombia's sugar exporters in lieu of 
providing duty-free treatment pursuant to the provisions of Appendix I. 
The compensation shall be equivalent to the estimated economic rents the exporters 
would have obtained on the exports. The US shall make a notification at least 90 days 
before it exercises this option and sha ll enter into consultations if necessary. 
 Could the US provide more details about sugar mechanism on the compensation to 
Colombia's sugar exporter and how to estima te economic rent for special provision? 
  The United States is not in position to provide more details at this time, as the provisions of Article 2.19 "Sugar Compensation Mechanism" have not yet been invoked.  
 
1.10.  Paragraph 5.17: Chapter 17 also prov ides for the creation of a Labor Affairs 
Council to oversee the implementation of the provisions of the Chapter and the Capacity 
Building Mechanism (Article 17.6), review prog ress, develop guidelines, prepare reports, 
and perform other functions as necessary. The provisions on labour are subject to the 
Agreement's dispute settlement procedures, provided that the Parties follow the 
provisions of Article 17.7 on cooperat ive labour consultations which require 
consultations before invoking the provisions of Chapter 21. 
a. What are the elements of  a Labor Affairs Council? 
b. What are the Council's member requirements? 
 With regard to questions "a" and "b", the Labor Affairs Council consists of cabinet-level 
officials from the US and Colombian governments,  or their high-level designees, typically from 
labour, trade and foreign affairs agencies or ministries (Article 17.5, paragraph 1). The Council 
met within one year of entry into force pursuant to Article 17.5, paragraph 1, and will meet as it 
deems necessary pursuant to Article 17.5, paragraph 2. All decisions of the Council are taken by consensus, and all Council meetings include a public session to meet with interested members of 
civil society, unless the Council decides otherwise (Article 17.5, paragraphs 3 and 4).  
c. How can the Council oversee the implementa tion of the provisions on labour? 
With regard to question "c", one of the functions of the Council is to oversee the 
implementation of and review progress of the chap ter on Labor, including cooperation activities 
and the Capacity Building Mechanism established under Article 17.6. The Council oversees the 
implementation of the labour chapter by discussing  efforts to improve respect for labour rights, 
including technical cooperation activities.  
d. Can the dispute on the provisions on la bour be settled by cooperative labour 
consultations without invoking the di spute settlement procedures? If yes, 
in which condition is used? 
 With regard to question "d", the Parties ma y consult and resolve any matter arising under 
the labour chapter through the process of cooperativ e labour consultations set out in Article 17.7.  
  If the Parties fail to resolve the matter by such  consultations, it is also possible to request 
the Labor Affairs Council established under the Agreement to consider the matter. The Council may 
have recourse to alternative dispute settlement procedures such as good offices, conciliation or mediation; the Council is authorized to consult with experts with a view to resolving the matter.  
 
 If the consulting Parties fail to resolve the matter within 60 days of a request, the complaining Party may request consultations or a meeting of the Free Trade Commission under the 
Dispute Settlement Chapter (Article 21.4 or 21.5, respectively) and thereafter have recourse to 
the other provisions of that Chapter. No Party may have recourse to the Dispute Settlement Chapter without first seeking to resolve the matter in accordance with the provisions on cooperative labour consultations. 
 
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