WT/REG380/M/1  
 
30 April 2019 
(19-2949) Page: 1/5 
Committee on Regional Trade Agreements  
Ninety -second  Session    
 
ACCESSION OF ECUADOR  TO THE TRADE AGREEM ENT BETWEEN THE EURO PEAN UNION  
AND COLOMBIA AND PER U 
(GOODS AND SERVICES)  
NOTE ON THE MEETING OF 1 APRIL 2019 
Chairm an: Ambassador Carlos Mario F oradori  (Argentina)  
1.1.  The 9 2nd Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/RTA/1 7/Rev.1  dated 22 March 2019.  
1.2.  Under Agenda Item V of the Session, the CRTA considered the Protocol of  Accession of Ecuador 
(hereinafter "the Accession Protocol") to the Trade agreement between the European Union and 
Colombia and Peru (goods  and services ), (hereinafter "the Agreement").  
1.3.  The Chairman  noted that the Accession Protocol  had been provisionally applied between the 
EU and Ecuador since 1  January 2017. It had been notified to the WTO by the Parties on 2 March 
2017 under Article  XXIV:7(a) of the GATT  1994 and the Understanding on the Interpretation of 
Article  XXIV of GATT 1994 as an amendment to the Agreement between the E U and Colombia and 
Peru (document  WT/REG380/N/1) and under GATS  Article  V:7(a) (document S/C/N/876). The text 
of the Accession Protocol  was available, together with its Annexes, on the Parties' official websites. 
The Factual Presentation on the goods aspects (document  WT/REG380/1 dated 14 January 2019) 
and questions and replies on the Accession Protocol  (document WT/REG380/2 dated 27 March 20 19) 
had been distributed.  
1.4.  The representative  of the European Union  welcome d the CRTA 's consideration of the Protocol 
of Accession of Ecuador to the Trade Agreement between the EU , Colombia and Peru. He thanked  
the Secretariat for the preparation of the Fac tual Presentation and Ecuador, Colombia and Peru for 
their excellent cooperation in th e exercise. He also thanked  Canada, Chinese Taipei, Thailand and 
the U nited States for their advance questions and interest.  
1.5.  Before introducing Ecuador 's accession to the  Agreement in more detail, he made  some general 
remarks on the broader economic and political context of th e Accession  Protocol . The EU and Latin 
America were natural partners  linked by historical, cultural and economic ties. Their strategic 
partnership went back to the first bi -regional summit in Rio de Janeiro in 1999 and  they continue d 
to cooperate at all levels , regional, sub -regional and bilatera l. 
1.6.  The Agreement between the EU and Colombia and Peru ha d been applied since 2013 and had 
been consider ed in the CRTA on 30 March 2015. It had brought many positive developments to the 
trade relationship between the Parties. For example, it had helped Colombia and Peru diversify their 
exports to the EU. Moreover, both Colombia and Peru ha d increased substantiall y their share of agri -
food exports to the EU, and Colombian and Peruvian SMEs ha d benefitted in particular from these 
new opportunities.  
1.7.  By signing the Protocol of Accession to th e Agreement in November 2016, Ecuador had become 
the third member of the Andean Community to join th e trade deal. With th e Agreement, the EU 
showed that it continue d paying special attention to Latin America and advancing an ambitious trade 
agenda with th e region.  WT/REG380/M/1  
 
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  1.8.  He was  pleased to present what was now the EU -Colombia , Ecuador  and Peru Agreement , 
which had been app lied with Ecuador since 1 January 2017. As it was  an accession to the Trade 
Agreement with Colombia and Peru, only minimal changes had been  made to the text of the 
Agreement in order to take into account Ecuador 's specificities. The EU and Ecuador had agreed on 
a limited number of cases that required specific flexibilities and transitional periods. However, the 
overall scope and ambition of the Agreement were maintained.  
1.9.  The Agreement cover ed trade in goods and service s. Once fully implemented, it would  eliminate 
tariffs for all industrial and fisheries products. It increase d market access for agricultural products, 
improve d access to public procurement, services and investment markets, and include d provisions 
to reduce  technical barriers to trade. It also establishe d common disciplines on intellectual property 
rights, transparency and competition. Furthermore, the Agreement contain ed important provisions 
from a sustainable development perspective. It include d measures o n the protection of human rights 
and the rule of law, as well as commitments on effective implementation of international conventions 
on labour rights and environmental protection.  
1.10.   The Accession Protocol  was tailored towards the development needs of Ecuad or. The tariff 
cuts for EU exports to Ecuador would  therefore be implemented gradually. Most tariff lines would  be 
liberalised within 10 years, except  very few products which would  be liberalised over a longer period. 
The EU ha d liberalised almost 95% of t ariff lines upon entry into force, while Ecuador had liberalized 
about 60%.  Frontloading ha d been agreed for products that were central to the Parties ' respective 
export markets, such as passenger cars ( within seven years) and alcoholic beverages (immediat e 
liberali zation) in the case of the EU, and fishery products and flowers (immediate liberali zation) for 
Ecuador.  
1.11.   The implementation of the Accession Protocol  since 1 January 2017 ha d already produced 
remarkable results. To give two examples, bilateral trade between the EU and Ecuador ha d increased 
by 20% after its first year of implementation, reaching €5.32 billion compared to €4.4 billion in 
2016. In 2017, Ecuador 's exports to the E U had increased by 12% while EU exports to Ecuador had 
increased by more than 30%. The EU was the second  destination for Ecuador 's exports and the third 
source of its imports in 2017.  
1.12.   Ecuador ha d addressed a number of bilateral trade irritants raised by t he EU under the 
institutional bodies established by the Agreement. The EU was  happy to see a positive start to the 
implementation of the Trade and Sustainable Development chapter of the Agreement. The EU look ed 
forward to continuing its close cooperation w ith Ecuador on the further implementation of the 
Agreement  and was confident that it would  bring benefits to businesses, consumers and civil society 
on both sides. He concluded by stating that the EU look ed forward to a fruitful discussion and would  
endeav or to answer Members' questions.  
1.13.   The delegation of Ecuador  said that the multi-Party Agreement with the European Union ha d 
been beneficial for Ecuador in terms of access for its supply of exportable products, particularly 
non-petroleum exports.  In the second year following its entry into force, non -petroleum exports had 
increased by 2.4 %, representing a rise of USD  77 million compared with 2017. Consequently, the 
EU had become the main destination for Ecuador's non-petroleum exports in 2018, with  25% of such 
products exported to the bloc.  
1.14.   Bananas were one of the main exports to gain greater access, with an increase of 10 % in the 
first year (2017) and 6 % in the second year (2018). Exports of shrimp, which was the second main 
product exported to the  EU, had greater tariff access through the Agreement , increas ing by 1.4 % in 
2017 and 2.6 % in 2018. Exports of tuna and other tinned fish had grown  by 51 % in the first year.  
1.15.   Imports from the EU had  increased by 11 % in 2018, with raw materials and capital go ods 
accounting for 74 % of total imports, thus boosting the Ecuadorian production sector by enabling its 
industries to acquire inputs at better prices and improve their competitiveness. These imports most 
notably include d industrial machinery, medical instr uments and appliances, and immunological 
products.  Ecuador's non -petroleum trade balance with the EU had posted a surplus of 
USD 970 million in 2018, which was equivalent to 1 % of GDP.  
1.16.   The European Union was the main destination for exports from the local community and 
solidarity -based econom y, as it receive d over 60 % of such exports. Furthermore, these exports to WT/REG380/M/1  
 
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  the EU had increased by 25 % since the Agreement had been  first implemented.  From the beginning 
of 2017 to mid -2018, products from the local community and solidarity -based econom y had been  
exported to a total of 22 destinations. The main destination was Italy, to which  the principal exports 
were bananas, cocoa, raw cane sugar and straw hats. Other EU countries to which these products 
were expor ted include d the Netherlands, Belgium, Germany and the United Kingdom.  
1.17.   Foreign direct investment by the EU in Ecuador had increased by USD  176.4  million in 2018. 
The main sectors in which these investments had been  recorded include d construction, mining an d 
quarrying, commerce, manufacturing and agriculture.  
1.18.   In general, the Agreement had  had several benefits. For micro, small and medium -sized 
enterprises and community and solidarity -based economies, these benefits were related to market 
access, trade in ser vices, public procurement, intellectual property, and trade and sustainable 
development.  One of the benefits was the cooperation project established under the Agreement for 
the internationalization of micro, small and medium -sized enterprises, which would  enable around 
220 enterprises  in Ecuador  to participate in global trade and increase their exports or export for the 
first time to the EU market.  It provide d an opportunity for small enterprises and cooperative and 
family economic sectors to make use of th e benefits provided by the Agreement in an efficient and 
appropriate way. This opportunity was even more significant, given that it would be more difficult 
for micro, small and medium -sized enterprises and community and solidarity -based economies to 
gain a ccess without the support provided for under the Agreement.  
1.19.   He reiterate d that Ecuador had  begun to benefit from the Agreement in terms of greater 
accessibility for its products, increased competitiveness for Ecuadorian industry though the entry of 
Europea n inputs, and more foreign investment, which was expected to increase in time and which 
could involve technology transfer . Such developments would significantly boost the production of 
goods and services with greater value added.  The enjoyment of the benef its provided by th e 
Agreement depend ed, to a large extent, on the implementation of national policies that took into 
account the protection of Ecuador's trade balance  – which was essential for its dollarized economy 
– and the preservation of its external a ccounts.  
1.20.   The delegation of Colombia  thanked  the Secretariat for preparing the factual presentation , his 
colleagues from Ecuador and the EU on their joint work and coordination efforts to jointly prepare 
and provide  replies to the questions submitted by Members.  
1.21.   As indicated in the Secretariat's report, the Protocol of Accession of Ecuador to the Agreement 
with the EU had been  signed in November  2016 and had entered into force in January  2017. The 
Agreement between C olombia and the EU had already entered into force in August  2013, and 
Ecuador's accession had been  made possible by Article 27 of the Multiparty Agreement.  
1.22.   Ecuador and the EU were among the five main destinations for Colombia's total world exports, 
and Colombia  therefore view ed the Protocol of Accession as a major opportunity for Colombian 
exporters.  The Agreement had had very positive results for Colombia, with exports amounting to 
USD 4.9 billion in 2018. He highlight ed in particular the positive perfo rmance of exports of goods 
that were not related to mining or oil, which currently account ed for 47 % of total exports, compared 
with 21 % in 2013. This increase was indicative of improved sales of agricultural, agro -industrial and 
manufactured products.  
1.23.   Colombia's  total bilateral trade with Ecuador had amounted to over USD 2.63 billion in 2018 
and was based mainly on industrial and high value -added products. For Colombian entrepreneurs, 
Ecuador was an important platform for internationalization and broader p articipation in regional 
trade.  
1.24.   Ecuador, Colombia and Peru were neighbours and, historically  had been  close and 
complementary trade and political partners. Their trade relations were governed by the 
Andean  Community, an international organization regional in nature , that would  celebrate its 
50th anniversary that year. In the first 50 years of regional integration, their economies ha d 
developed significant complementarities and synergies, thus fostering entrepreneurship in the 
three  Andean countries that were participating that day . These synergies were enhanced by their 
joint participation in the Agreement with the EU. WT/REG380/M/1  
 
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  1.25.   One of the most interesting aspects of the Agreement for Colombia was undoubtedly the 
possibility of cumulating origin for goods exported to the EU. This cumulation of origin, which ha d 
already been beneficial for Peru and Colombia, ha d been strengthened and extended by Ecuador's 
accession, and ha d simultaneously promoted Andean regional integration and trade with the EU. 
1.26.   Colombia's  export and investment promotion agencies ha d identified products with a high 
potential for the development of production chains for the purpose of exportation to the EU, including 
quinoa, tuna loin, wood panels, tyres and fabric.  Ecuador's accession to the A greement had opened 
up possibilities for cooperation between regulatory and technical authorities, in order to facilitate 
compliance with technical and sanitary and phytosanitary standards.  
1.27.   The delegation of Peru thank ed the Secretariat for its diligent work in pre paring the Factual  
Presentation and his counterparts, the European Union, Ecuador and Colombia, for their joint efforts 
in reviewing the documents and questions that had been  circulated.  
1.28.   As the EU representative had mentioned in his statement, Latin Americ a and Europe were 
allies united through historical, economic and cultural ties. These close ties ha d allowed the Parties  
to forge solid and dynamic strategic alliances  and the Agreement had helped to strengthen the 
bilateral relationship.  The trading relationship with the EU had been enhanced by the entry into force 
of the Agreement, which complement ed existing ties within the framework of the multilateral trading 
system embodied in the WTO, and the political and commercial relationship betwee n the EU and the 
Andean Community.  
1.29.   As a State policy, the Agreement with the EU was part of a long -term strategy that aim ed to 
transform Peru into an export ing country by building  greater markets and creating better 
development opportunities by attracting investment. The economic and trade integration fostered 
by Peru's trade agreements , including the Agreement with the EU, ha d enabled Peru to advance 
towards the following goals: increas ing the efficiency and productivity of Peruvian companies; 
facilitat ing the acquisition of inputs, technology and capital goods at lower prices that promote d the 
competitiveness and specialization of those companies; promot ing the export of value -added 
manufactured products and integrat ing Peru into global value chains.  
1.30.   March  2019 would  mark the sixth anniversary of the entry into force of th e Agreement in Peru 
and he was pleased to mention the positive results achieved to date: Peru ha d consolidated its 
tariff-free access to the EU (in particular as regards the non -traditiona l sector) ; stable and 
predictable rules ha d been established for bilateral trade relations ; a diversified export sector for 
goods and services ha d been developed; and an attractive investment climate ha d been promoted, 
along with the sustainable developmen t of the Parties.  
1.31.   In 2018, the EU was the third largest importer of Peruvian goods, accounting for 15 % of total 
exports. In the same year, Peru's  exports to the EU had risen  to USD  7 billion, an increase of 11 % 
over 2017.  Peru welcomed Ecuador's accession to the Agreement and the excellent results of the 
implementation  as mentioned previously in the EU's and Ecuador's  statement s. Peru was  certain 
that the Parties would  continue along the path of cooperation and work with a view to achieving 
their common goals.  
1.32.   The representative of the United States  thanked the Parties for their presentations which  
contained valuable information and for their responses to its written questions. Should the United 
States have  any follow up questions they would be su bmitted within the deadline. On services, he 
welcomed Ecuador's improvements on its GATS commitments but was concerned that it had  not 
made commitments in basic telecoms given that the EU, Colombia and Peru all had strong 
commitments in that sector. With respect to services it appear ed that the agreement that covered 
services among the Latin American members of the Agreement had not been notified to the WTO 
but was included within it . It was not clear what the Cart agena Agreement was as it was not reflected  
in Table 5.1. The factual presentation s tated that the Andean Community Services Agreement 
governed trade but the responses from the Parties indicated  that this was not the case and pointed 
to the Cart agena Agreement. He would appreciate a clarification o f the guiding agreement governing 
trade in services between the Latin American countries and a notification of  it. It was strange  that a 
notified Agreement captured provisions of a non -notified agreement.  
WT/REG380/M/1  
 
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  1.33.   His delegation welcomed  Ecuador 's commit ment not to impose customs duties on electronic 
transmissions, an obligation that many countries were adopting as standard FTA practice.  He had 
an additional question with respect to paragraph 5.34 of the factual presentation which addressed 
cancelling tradema rks that affect ed pre-existing GIs. He noted that just as later -in-time trademarks 
would be refused or cancelled if they were likely to cause confusion with an earlier established GI as 
reflected in the factual presentation , so too should later -in-time GI s be refused registration or 
cancelled if they were likely to cause confusion with an earlier registered trademark. He asked the 
Parties to clarify whether the Agreement only denied trademarks that came later in time  or whether 
the inverse of that obligatio n also worked . In conclusion he said that  the large number of non -
notified LAIA agreements among the Parties  and the lack of transparency in Latin American trade 
networks was a systemic concern that he had raised on multiple occasions in the Committee and 
elsewhere. He urged the Parties to review the list of non -notified RTAs and take meaningful steps 
toward providing WTO Members with the transparency called for under WTO rules.  
1.34.   The representative of Ecuador  said a response to the United States' questions  would be 
provided  in due time.  
1.35.   The representative of the European Union  asked if the United States  would put its question 
on trademarks and GIs in writing so that a written  response could be provided.  
1.36.   The Chairman  said that consideration of the accession of  Ecuador to the Trade Agreement 
between the European Union and Colombia and Peru, goods and services, ha d allowed the 
Committee to clarify a number of questions and it could  now conclude oral discussion of this RTA in 
accordance with paragraph 11 of the Tr ansparency Mechanism. If any delegations wish ed to ask 
follow -up questions they were invited to forward submissions in writing to the Secretariat by 8  April 
2019 and Parties were asked to submit replies in writing by no later than 22  April 2019. In 
accorda nce with paragraph  13 of the Transparency Mechanism all written submissions, as well as 
minutes of this meeting would  be circulated promptly, in all WTO  official languages, and would  be 
made available on the WTO website.  
1.37.   The Committee took note  of the comm ents made.  
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