WT/REG295/2  
11 September 2013  
(13-4046)  Page: 1/5  
Committee on Regional Trade Agreements  Original: English/Spanish  
 
  FREE TRADE AGREEMENT BETWEEN PERU AND THE EFTA STATES 
(GOODS) 
QUESTIONS AND REPLIES 
 The following communication, dated 16 August 2013, is being circulated at the request 
of the delegations of Peru and the EFTA States.  
 This document reproduces the questi ons addressed to the Parties and the 
responses submitted.  
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 Questions from the Delegation of Colombia 
 1.1.  Page 4. Why have Iceland and Norway put the Agreement into effect with Peru and not with Colombia? The entry into effect of the Iceland/Norway-Colombia 
Agreement requires the inclusion of a memo randum of understanding covering aspects 
such as labour issues. The Agreement with Peru, however, does not include labour issues and was approved.  
The FTA with Colombia has as of yet not gained Parliamentary approval in Iceland, mainly 
due to concerns voiced regarding the protection of labour rights in Colombia. Efforts to gain Parliamentary approval for the EFTA-Colombia FTA are expected to continue this autumn. 
 
The FTA with Colombia has not yet been submitted to the Norwegian Parliament 
for ratification as the Norwegian Government first wishes to establish a separate mechanism 
for dialogue and cooperation, including on labour rights issues. As Colombia and Norway recently 
have agreed on establishing such a mechanism, this may pave the way for Parliamentary approval 
of the FTA with Colombia.  
1.2.  Page 4, footnote 2. Why do Swiss fore ign trade statistics not include Switzerland's 
imports of gold and silver from Peru?  
Trade in gold and silver is not reported in the Swiss official foreign trade statistics, 
as a substantial share of the imported gold to Switzerland is re-exported with only very limited added value in Switzerland due to the high price of the raw material. Including gold in the trade 
statistics would distort the numbers and provide a less accurate picture of trade in products from 
other key Swiss industries such as pharmaceuticals, chemicals, watches and machines.  1.3.  Page 14, paragraph 3.12. This para graph highlights the difficulty in obtaining 
ad valorem  equivalent rates of duty from the EF TA Secretariat, a problem experienced 
by Colombia as well as Peru. Colombia has also tried to obtain copies of the Swiss Tariff and, in Excel format, the files containing th e tariff preferences granted by Switzerland, 
which would facilitate a comparative analysis of the results of the Agreement, but this 
was not possible either. What steps should  be taken to resolve these difficulties? 
 WT/REG295/2 
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Switzerland applies only specific duties and therefore ad valorem  equivalent rates of duty 
are not available. The Swiss Tariff is only available in PDF format and can be obtained from the web page of the Swiss Customs Administration:   
http://www.ezv.admin.ch/dokumentation /04027/04028/05363/in dex.html?lang=fr  
(Tarif général).  
 
An Excel file containing the applied MFN duties, as well as preferential duties to the free 
trade partners, is available on the webp age of the Swiss Customs Administration: 
  http://www.ezv.admin.ch/zollinfo_firm en/04016/04197/index.html?lang=en . 
 
1.4.  Page 24, paragraph 3.44, line 14. Wh at is meant by "su fficient guarantees", 
which, once provided, allow for the earl y release of goods prior to all import 
requirements having been met? Do the Part ies really make use of this mechanism? 
How frequently?  
Article 3 of Annex VII of the Agreement establishes that Parties shall, in accordance with 
their legislation, allow importers to obtain the release of goods prior to meeting all of the Party's import requirements if the importer provides suffi cient guarantees and that a Party is not required 
to release goods if its legitimate import requirements have not been satisfied. In that sense, 
the "sufficient guarantees" referred to would be determined in accordance with the national 
legislation of the Parties concerned.   
For example, in the case of Switzerland, the Swiss Customs Administration uses this 
mechanism with numerous importers who have an account with the customs administration to pay their import duties and fees.  
 
In the case of Peru, Peruvian Customs Administration can authorize the release of goods 
prior to final determination when there are sufficient guarantees (as provided in Peruvian General Customs Law) and legitimate import requirements are satisfied. 
 
1.5.  Page 8, paragraph 3.4, line 5 onward s. Have any of the Parties requested the 
acceleration of the elimination of tariffs or consultations for further tariff liberalization? 
 
To date, there have been no consultations on accelerating tariff liberalization under the 
Agreement. At its first meeting, in April 2013, the Joint Committee noted that tariff dismantling 
was proceeding as set out in the Agreement. 
 1.6.  Annexes 2 and 3. What tariff treatment did the EFTA States grant to sugar from Peru? 
 
The tariff treatment accorded to sugar originating in Peru and imported into the EFTA States 
is set out in Appendix 1 to Annex III to the Agreem ent (regarding processed agricultural products), 
as well as in the Agreements on Agriculture concluded between Peru and each individual 
EFTA State (regarding basic agricultural produc ts). These documents are available on the EFTA 
website and Peru's website at: 
 
 http://www.efta.int/free-trade/fr ee-trade-agreements/peru.aspx .  
 
 http://www.acuerdoscomerciales.gob.pe/index .php?option=com_content&view=category&la
yout=blog&id=87&Itemid=110  
 
1.7.  Page 18, paragraph 3.15. Does the GS P of each of the EFTA countries remain 
in force for Peru or, like Colombia, has Pe ru been excluded from GSP preferences? 
 
The EFTA States' Generalized System of Preferences (GSP) schemes are no longer applied 
as of the entry into force of the Agreement with Peru.  
 
The Norwegian GSP system is, however, still in force in the case of Colombia, since the free 
trade agreement is not yet ratified and entered into force. 
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1.8.  Page 18, paragraph 3.16. Have the Parties already complied with Article 2.9 
of the Agreement as regards the elimination of prohibitions or other restrictions in their 
mutual trade?  
Yes, in accordance with Article 2.9 of the Agreement, Parties have eliminated prohibitions 
and other restrictions in their mutual trade in accordance with GATT Article XI. This provision does not apply to the measures taken by Peru set out in Annex IX (Used Goods). 
 
1.9.  Page 19, paragraph 3.17. What work has been carried out jointly by the Parties 
as regards mutual assistan ce in customs matters? 
 
The Agreement's provisions on mutual administrative assistance in customs matters are 
contained in Annex VI of the Agreement. To da te, no further provisions have been developed 
in this area. 
 
1.10.  Page 19, paragraph 3.18. What is th e Parties' experience as regards compliance 
with origin requirements in trade? 
 
At the first meeting of the Sub-Committee on Trade in Goods, Rules of Origin and Customs 
Matters, the Parties noted that commercial exchanges are working well and the goods comply with origin requirements. 
 
1.11.  Page 19, paragraph 3.20. What prog ress have the Parties made in the area 
of accumulation of origin? 
 
The existing accumulation regime is set out in Article 3 of Annex V to the Agreement. 
Accumulation-related issues, including cross-accumulation and pan-FTA accumulation, are being 
discussed in the framework of the Joint Committee. 
 1.12.  Page 24, paragraph 3.46. Has the Sub-Committee on Rules of Origin, 
Customs Procedures and Trade Facilitation met? 
 
Yes, the first meeting of the Sub-Committee on Trade in Goods, Rules of Origin and Customs 
Matters took place on 16 April 2013. 
 
1.13.  Page 25, paragraph 3.47. The last two lines of this paragraph state that 
negotiations on a chapter on trade in services  are to take place no later than one year 
after the entry into force of the Agreement. Since this period of time has now passed, 
are we to assume that these negotiations have taken place?  
At the first meeting of the Joint Committee, in April 2013, Parties discussed the initiation 
of negotiations on trade in services as foreseen  in paragraph 4 of Article 4.1 of the Agreement. 
Such negotiations may be launched in late 2013 or early 2014. Without prejudice to these negotiations, it should be noted that Iceland, Liechtenstein, Norway, Peru and Switzerland are 
participating in negotiations in Geneva on a plurilateral Trade in Services Agreement (TISA). 
 1.14.  Page 27, paragraph 4.2. In accordance with Article 9.2, which authorities in each 
of the Parties have been made responsibl e for receiving the written notifications 
and communications mentioned?  
For EFTA, the contact point under Article 9.2 is the EFTA Secretariat (9-11 Rue de Varembé; 
1211 Geneva 20). 
 
For Peru, the contact point under Article 9.2 is the Ministry of Foreign Trade and Tourism 
(Calle Uno Oeste N° 050, Urbanización CORPAC, San Isidro, Lima). 
 1.15.  Page 34, paragraph 4.28. Have th e Parties ratified or acceded to the 
WIPO Conventions mentioned in th e footnotes to this paragraph? 
 
Peru is formal member of the UPOV Convention since August 2011, apart from that, 
there have been no further developments in this area since the entry into force of the Agreement. 
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1.16.  Page 36, paragraph 4.37. With regard  to cooperation, what progress has been 
made by the Parties and in what areas?  
To date, there have been no cooperation activities under the Agreement.  
 
As for bilateral cooperation activities, Peru is a priority country for Switzerland's economic 
development cooperation programme, implemented by the State Secretariat for Economic Affairs 
(SECO). Based on the experience of the last four years, SECO has established its intervention 
strategy for 2013-2016. The overall objective of Switzerland's economic development cooperation 
with Peru is to support sustainable and regionally balanced growth, as well as the country's further 
integration into the global economy in order to  fight poverty and promote social inclusion. 
Switzerland's current trade promotion portfolio in Peru includes programmes supporting national 
and regional export strategy development and implementation; biotrade; tourism development; 
trade facilitation; and capacity building on trade law and policies. In addition, Switzerland has 
activities in the field of resource efficient production to improve SME competitiveness. 
 Questions from the Delegation of the European Union 
 Provisions on trade in goods  
Rules of origin 
 
1.17.  According to paragraph 3.20 of the Factual Presentation, the Parties will also 
review Article 3 no later than four years after the date of entry into force of the Agreement, taking into account new conc epts, in particular, cross-accumulation 
or pan-free-trade-agreement-accumulation. Considering that the EU-Peru Agreement 
contains a provision on cumulation with other countries:   
a. Could the Parties clarify whether such  a possibility already exists in the 
EFTA-Peru Agreement?  
 
b. Should it be the case, could the Pa rties clarify under which conditions 
it is applicable? 
  The existing accumulation regime is set out in Article 3 of Annex V to the Agreement. 
Cross-accumulation and pan-FTA accumulation  are not implemented under the Agreement. 
Accumulation-related issues, including cross-accumulation and pan-FTA accumulation, are being discussed in the framework of the Joint Committee. 
 
General Provisions of the Agreement 
Electronic Commerce 
 
1.18.  According to paragraph 4.39, the Partie s recognize the growing role of electronic 
commerce in their mutual trade and agree to intensify cooperation in this area for their mutual benefit. 
 Could the Parties give an overview of the cooperation ongoing between the Parties 
in this respect?  
To date, there have been no activities in this  area under the Agreement. Article 1.8 of the 
Agreement (Electronic Commerce) was designed as an open window for the Parties to intensify 
cooperation in the area for their mutual benefit; it was not designed to require the Parties to take immediate actions after the entry into force of the Agreement. 
 
Questions from the Delegation of Mexico 
 
Services and Investment 
 
1.19.  With reference to Chapter 4 (Trade in Services) of the Agreement, 
and in particular to Annex X mentioned in  paragraph 4 of Article 4.2 (Recognition) 
on recognition of qualifications of serv ice suppliers, has there been any agreement 
on mutual recognition of academic ti tles and degrees between the Parties? WT/REG295/2 
- 5 - 
No, the Parties have not concluded any agreements on mutual recognition of academic titles 
and degrees. 
1.20.  Regarding Annex XI (Reservations) of the Agreement, Peru's first reservation 
relates to the direct or indirect acquisition of land or water located within 50 km of the 
border unless an exception is authorized. Under what conditions would an exception 
be authorized? 
Foreign natural and legal persons must request authorization through a supreme resolution 
endorsed by the President of the Council of Mini sters and the minister responsible for the sector 
concerned. For example, if it is a mining investment, the minister concerned would be the Minister of Energy and Mines.  
1.21.  In its reservation on fishing, Peru reserves the right to adopt or maintain any 
measure relating to "artisanal fishing". Wh at does this type of fishing consist of, 
and what are the services related to it? Mexi co would also like to know if foreign-flag 
fishing vessels with a fishing permit have the right to engage in artisanal fishing. 
According to the Regulations to the General Law on Fisheries, "artisanal fishing" is fishing 
that is conducted: 
 
a. without a vessel; 
b. with vessels of a maximum hold capacity of 32.6 m
3 and a maximum length of 15 m, 
using predominantly manual labour. 
Related services include any type of service relating to fishing activities that meets 
the above-mentioned conditions, for example research, training of artisanal fishermen, etc. 
According to the General Law on Fisheries, whatev er the type of fishing, foreign-flag vessels 
may only conduct fishing operations "against the surplus of allowable catch unused by the national 
fishing fleet". The Law lays down the conditions for access to fishery resources by foreign-flag 
vessels. These include fishing for "occasional, highly migratory or under-exploited resources" or the signing of an agreement with a Peruvian company to exploit certain resources. 
1.22.  In one of Peru's reservations, applie d to all sectors, concerning the granting 
of preferential treatment to Peruvian nati onals when hiring workers, and according 
to which foreign natural persons may not compromise more than 20% of the total number of service providers employed by the enterprise, and their remuneration may 
not exceed 30% of the total payroll, you mention that these percentages will not apply 
in certain cases when, for example, the fore ign national is from a country that has 
reciprocal labour or dual nationality agreem ent with Peru. How many reciprocal labour 
agreements has Peru concluded, and with which countries? 
In the framework of the Andean Community, Decision 545 on Labour Migration stipulates 
that Peru shall accord to nationals of Bolivia, Colombia and Ecuador entering Peru for work 
purposes the same treatment as to Peruvian nationals. 
This treatment is granted on a reciprocal basis among the four member countries of the 
Andean Community. 
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