WORLD TRADE  
ORGANIZATION   
WT/REG301/M/1 
11 October 2012 
 (12-5525) 
Committee on Regional Trade Agreements 
Sixty-sixth Session  
 
 
 
CONSIDERATION OF THE FREE TRADE AGREEMENT BETWEEN  
CANADA AND COLOMBIA, GOODS AND SERVICES 
 
Note on the Meeting of 18-19 September 2012 
 
Chairman:  Mr. F. Riegert (France) 
 
 1. The 66
th Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgra m WTO/AIR/3987 dated 7 August 2012. 
2. Under Agenda Item B.IV of this session, th e CRTA considered the Free Trade Agreement 
(FTA) between Canada and Colombia (hereinaft er the 'Agreement'), goods and services.  
3. The Chairman noted that the Agreement had entered into force on 15 August 2011.  It had 
been notified to the WTO by the Parties on 7 October 2011 under Article  XXIV:7(a) of the 
GATT 1994 and the Understanding on the Interpre tation of Article XXIV of GATT 1994 as an 
Agreement establishing a free trade area (doc ument WT/REG301/N/1) and under GATS Article 
V:7(a) as an Agreement providing for the liberaliz ation of trade in services  within the meaning of 
Article V of the GATS (document S/C/N/602).  The te xt of the Agreement was available, together 
with its Annexes, on the Parties' official websit es.  The Factual Presentation on the goods and services 
aspects (document WT/REG301/1 dated 26 June 2012) had been prepared by the Secretariat on its 
own responsibility in full consultation with the Part ies, in accordance with paragraph 7(b) of the 
Transparency Mechanism for Re gional Trade Agreements (document WT/L/671).  In addition, 
written questions and replies on this Agreement ha d been distributed in document WT/REG301/2 and 
WT/REG301/2/Rev.1 (English version only) dated 10 and 17 September 2012 respectively.  He 
proposed to organize the consideration of the Agre ement by first asking the Parties and then other 
Members to give any general comments and to th en review the specifics of the Agreement. 
4. The representative of Colombia thanked the Secr etariat for the factual presentation and also 
Canada for its assistance in preparing for the review .  The Free Trade Agreement with Canada formed 
part of Colombia's strategy to integrate itself into  the global economy under a transparent, predictable 
and inclusive multilateral system that was supplemente d by regional and bilateral efforts.  Under this 
strategy, Colombia had gone from having two ag reements with nine countries in 2002, to 
ten agreements with 17 countries in 2012.  By 2 014, Colombia hoped to have 16 agreements with 
49 countries.  The ultimate aim of the policy was to improve Colombia's participation in value chains 
and increase and diversify foreign trade in goods and services.  At the same time, Colombia was 
trying to increase inward foreign investment flow s, as well as remittances from Colombians based 
abroad, with a view to improving growth and the well-being of the Colombian people. 
5. The Agreement provided for the liberalization of  trade in agricultural and non-agricultural 
goods.  It contained disciplines that supplemented the tariff reduction programme, such as rules of 
origin, customs and trade facilitation procedures,  technical standardization, competition, trade 
remedies, sanitary and phytosanitary measures, a nd government procurement.  The Agreement also WT/REG301/M/1 
Page 2  
 
  included commitments on cross border trade in servi ces, the transit of persons, telecommunications, 
electronic commerce, investment, and environmental and labour cooperation.  It sought to create an 
area free of restrictions, so as to ensure a greater supply of products at better prices, and clear and 
stable rules for the bilateral trade dynamic.  The Agreement recognized the asymmetries resulting 
from the differences in size of the two economies and was based on the principles of national and 
most favoured nation treatment and transparency.  
6. On market access, for industrial goods, ag reement was reached on a tariff reduction 
programme beginning with the elimination of tariff s for the majority of Canadian exports to the 
Colombian market.  The most sensitive products were  subject to a gradual automatic tariff reduction 
schedule, which included the elimination of tariffs in  periods of five, seven and ten years.  The first 
reductions began on 15 Au gust 2011.  The remaining reductions would take place in equal and annual 
stages which began on 1 January 2012.  The reducti on of tariffs for industr ial goods would end on 
31 December 2015, 2017 and 2020, in accordance with  the established tariff reduction time frames.  
For agricultural goods, tariffs for a wide range of products were eliminated upon the entry into force 
of the Agreement.  Products for which tariffs were  not eliminated on 15 August 2011 were subject to 
a general tariff reduction schedule of  five and ten years.  Extende d reduction periods existed for a 
small number of products:  tariff reductions for ma ize and rice, tariff quotas for other products, and 
special agricultural safeguards to regulate imports of  bovine meat and beans.  Colombia retained the 
right to use export promotion instruments such as the Vallejo Plan and Free Zones.  The tariff 
reduction programme included some remanufactured products such as machinery and equipment that 
would further the development of domestic industry a nd lower the cost of industrial restructuring. 
7. In investment, the Agreement contained provisions on the treatment of investments and 
investors, in accordance with inte rnational standards.  These discip lines reduced the non-trade risk for 
investments, ensuring they were not affected by arbitrary State action, and provided non-discriminatory treatment for investors in both count ries.  The defence of the agreed standards was 
ensured through a mechanism for the settlement of disputes between investors and the State.  In 
services, conditions of certainty and transparency were established for the service suppliers of both 
Parties.  Agreement had been reached on discip lines regarding national a nd most favoured nation 
treatment, market access and local presence.  In so me cases, provision had been made for exceptions 
to these principles.  The Agreement included all the measures in existence at the time of the 
negotiations, as well as reservations  for the future.  On temporary entry, conditions were established 
to facilitate temporary entry, stay and work of business persons, in accordance  with the preferential 
trade relationship between Colombia and Canada.  N one of this affected border security requirements 
or the protection of the domestic labour force an d permanent employment.  The types of persons 
benefitting from the Agreement were business visitors, traders and investors, intra company transferees, professionals, technicians, and their spouses.  In telecommunications a regulatory framework was laid down consistent with inte rnational regulatory standards that promoted 
competition between public telecommunications servi ces suppliers and ensured national and foreign 
access to public telecommunications networks a nd services under reasonable and non-discriminatory 
conditions.  In the area of electronic commerce, no cu stoms duties, taxes or charges would be applied 
to the import or export of products by electronic mean s.  Provisions were also  agreed that aimed at 
protecting consumers and promoting paperless trade administration.  
8. In financial services, the Agreement consolidated the existing government policy of 
authorizing the cross border supply of certain fina ncial services and the entry of foreign financial 
institutions in the form of branches, in a moderate  and gradual manner.  On government procurement, 
the Agreement established transparent and non-disc riminatory procedures enabling Colombian and 
Canadian enterprises to participate in procuremen t by public entities at the central government level, 
including special entities and government enterprises .  Canada had listed 78 fe deral level entities and 
ten government enterprises, while Colombia had included 28 central level entities and the entities 
attached thereto.  On competition, provisions we re established to prevent the benefits of the  WT/REG301/M/1 
 Page 3 
 
 
  liberalization programme being undermined by an y anti-competitive practices by companies.  The 
Parties also established commitm ents on cooperation between authorities in the area of enforcement 
of competition law and agreed on disciplines aimed at guaranteeing the State's power to maintain or establish designated monopolies and State enterprises. 
9. On trade remedies, the Agreement included a bilateral safeguard allowing for the re-
establishment of a tariff if the tariff reducti on programme had a damaging effect on domestic 
production.  The Agreement also maintained existi ng WTO rights and obligations for the application 
of general safeguards and anti- dumping and countervailing duties.  A cooperation mechanism was 
established to maximize the opportunities provided by the Agreement, and to promote trade and 
investment opportunities, foster competitiveness and innovation, and encour age cooperation between 
public and private sector science and technology centres and academic institutions.  The cooperation 
mechanism placed special emphasis on small and medium sized enterprises (SMEs).  On the 
environment, the Agreement reflected the Partie s' commitment to sustainable development through 
mutual support in the formulation of trade an d environmental policies.  The supplementary 
Agreement on the Environment established proceedi ngs and procedural standards for cases in which 
environmental regulations were violated, together  with biodiversity and cooperation commitments. 
10. The Agreement included the protection of fundamental labour rights of workers, including 
migrant workers, in their domestic legislation.   The Parties also signed a Labour Cooperation 
Agreement linked to the Agreement, which develope d rules and regulations on labour.  A Ministerial 
Council made up of the Ministries of Work and Soci al Protection had been established which would 
serve as a contact point and permanent link between the Parties.  Non fulfilment of the Labour 
Cooperation Agreement's obligations could not lead  to trade sanctions.  Any fines imposed on the 
offending country would be reinvested in that same country with a view to strengthening the implementation of labour legislation. 
11. Since 2005, bilateral trade with Canada had incr eased steadily.  Since the entry into force of 
the Agreement, trade had intensified, so that bila teral trade increased by 20%.  The trade balance for 
2011 showed a deficit for Colombia of US$345 milli on.  By the end of the first half of 2012, 
11 months after the Agreement entered into fo rce, the trade balance showed a deficit of 
US$316 million.  Sales of coffee, coal, oil and th eir by-products accounted for more than 80% of 
Colombian exports to Canada.  Other significant products were flowers (7.5%) and light industry 
products, in particular clothing.  Between 2008 and 2011, Colombian e xports to Canada grew at an 
average annual rate of 11%, rising from US$326.6 milli on to US$614.4 million.  However, by the end 
of the first half of 2012, exports had fallen by 16% , mainly due to the drop in international coal and 
coffee prices.  Between 2008 and 2011 imports from Canada grew on average by 16%, notably on 
wheat, lentils, barley and peas, accounting for 30% of a ll imports from Canada.  In the first 11 months 
of the Agreement, imports had increased by 28%, mostly made up of machinery and equipment, 
intermediate products and inputs. 
12. Canadian FDI into Colombia had grown from US$19 million in 2006 to US$174 million by 
the end of 2011.  At the close of the first quarter of 2012, Canada's FDI accounted for 4% of total FDI 
in Colombia, without taking into account oil and cap ital reimbursement.  In the same period of the 
previous year, Canadian FDI had amounted to 3% .  The revival of tourism from Canada had been 
another positive result of the Agreement.  24,000 Cana dian citizens visited Colombia as tourists or on 
business in 2006;  38,000 visited in 2011;  and almost  29,000 had visited the country by the end of the 
first half of 2012.  The preferential access obtained into the Canadian market put Colombia on the 
same footing as other countries that had Free Trad e Agreements with Canada .  The elimination of 
tariffs for 99.8% of industrial goods and 97.9%  of agricultural goods gave Colombia more 
opportunities to increase and diversify exports.  Th e Agreement would also help attract FDI by 
ensuring a stable and predictable environment that protected both investors and their investments.  
The Agreement provided Colombia with a valuable  tool for furthering its economic and social WT/REG301/M/1 
Page 4  
 
  development.  Colombia looked forward to replyi ng to any questions posed by members of the 
Committee. 
13. The representative of Canada thanked the Secr etariat for preparing the Factual Presentation 
and Colombia for their assistance in preparing for the meeting.  He also thanked members for the 
questions received so far.  Canada was pleased to present to the committee its Agreement with 
Colombia signed on 21 November 2008 which had entered into force on 15 August 2011.  The 
Agreement contained extensive goods, services and investment obligations.  Important provisions 
concerning standards, government procurement, in tellectual property and electronic commerce were 
included in the FTA.  The Agreement also contained principles-based environment and labour chapters, which were expanded upon in the pa rallel agreements on e nvironment and labour 
cooperation, both of which also had treaty status.  The Parties believed that the Agreement was fully 
consistent with the WTO’s rules and principles.  In particular, it met the test of covering substantially 
all trade in goods as set out in GATT Article XXIV.  By 2017, for goods of Colombian origin, 98.5% of Canada’s tariff lines would be duty free cove ring 98.6% of Canada’s imports from Colombia 
between 2008 and 2010.  By that date, 88.2% of Colo mbia’s tariff lines representing 94.9% of imports 
from Canada between 2008 and 2010 w ould be duty free.  By 2028, 98.5% of Colombia’s tariff lines 
would be duty free and 99.1% of Cana da’s exports would enter duty free. 
14. Both Parties had taken on services commitments beyond their GATS obligations.  
Consequently, the Parties believed they had clear ly met the requirements of GATS Article V to 
achieve substantial sector coverage in services.  Canada was confident that the Agreement with 
Colombia had set the groundwork for a growing and strong trade relationship w ith Colombia.  Canada 
believed that comprehensive FTAs helped to br eak new ground that could, ultimately, be 
multilateralized through the WTO. 
15. The representative of Mexico thanked the Secr etariat for the Factual Presentation and the 
Parties for their responses to questions wh ich were being examined in Capital. 
16. The representative of the United States thanked the Secretariat for the Factual Presentation 
and the Parties for their responses to questions, which had facilitated the Committee's consideration of 
the Agreement.  All of her delegation's questions  on services had been adequately answered.  The 
Agreement was of a relatively high standard with so me protection for both Parties' agriculture sectors, 
but her delegation had no further questions at this stage.   
17. The Chairman noted that the consideration of the Goods and Services Aspects of the 
Free Trade Agreement between Canada and Colombia  had allowed the Committee to conclude oral 
discussion of this RTA in accordance with paragr aph 11 of the Transparency Mechanism.  If any 
delegations wished to ask follow up questions they were invited to forward submissions in writing to 
the Secretariat by 25 September 2012.  The Parties we re asked to submit replies in writing to any such 
questions no later than 9 October 2012.  In acco rdance 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.   
18. The Committee took note of the comments made. 
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