WT/REG316/1  
3 March 2014  
(14-1273)  Page: 1/74  
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN EL SALVADOR, GUATEMALA,  
HONDURAS AND COLOMBIA 
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the considerat ion of the Free Trade Agreement between 
El Salvador, Guatemala, Honduras and Colombia has been drawn up by the WTO 
Secretariat on its own responsibility and in full consultation with the Parties. The 
report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
Any technical questions arising from this report may be addressed to 
Ana Cristina Molina (tel: +41 22 739 6060). Any statistical questions arising from this report may be addressed to Ms. Alejandra Barajas (tel: +41 22 739 6425). 
 
 
 
 
 
   
 
  
 
  
 
   
 
  
 
  
 
   
 
  WT/REG316/1 
 
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TABLE OF CONTENTS 
 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Merchand ise trade ..................................................................................................... 4  
1.2   Trade in servic es and inve stment ................................................................................. 6  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT .................................................... 10  
2.1   Background  Information ............................................................................................ 10 
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 11  
3.1   Import duties and charges,  and quantitative  restrict ions ................................................ 11 
3.1.1   Genera l provisions ................................................................................................. 11 
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 12 
3.1.3   Liberalization by product ......................................................................................... 14 
3.1.3.1   Colombia ........................................................................................................... 14 
3.1.3.2   Northern Triangle ................................................................................................ 18 
3.1.4   Tariff rate quotas ................................................................................................... 22 
3.1.5   Price-band system ................................................................................................. 23 
3.1.6   Further negotiations ............................................................................................... 23 
3.2   Rules of origin .......................................................................................................... 23 
3.2.1   Definitions an d main principles ................................................................................ 23 
3.2.2   Administration of  the rules of origin .......................................................................... 25 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 25 
3.4   Regulatory provisions on trade in goods ....................................................................... 25 
3.4.1   Standards ............................................................................................................. 25 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 25 
3.4.1.2   Technical barriers to trade .................................................................................... 26 
3.4.2   Safeguard mechanisms ........................................................................................... 28 
3.4.2.1   Global safeguards ............................................................................................... 28 
3.4.2.2   Bilateral safeguards ............................................................................................. 28 
3.4.2.3   Safeguards related to the balance of payments ....................................................... 29 
3.4.2.4   Special safeguards .............................................................................................. 29 
3.4.3   Anti-dumping and countervailing measures ............................................................... 29 
3.4.4   Subsidie s and State aid .......................................................................................... 29 
3.4.5   Customs-re lated procedures .................................................................................... 29 
3.5   Sector-specific provis ions on trad e in goods ................................................................. 30 
4   PROVISIONS ON TRADE IN SERVICES ....................................................................... 30  
4.1   Scope and definitions ................................................................................................ 30 
4.2   Denial of benefits ..................................................................................................... 31 
4.3   General provisions on trade in services ........................................................................ 31 
4.3.1   Mark et acce ss ....................................................................................................... 31 WT/REG316/1 
 
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4.3.2   National treatment and MFN .................................................................................... 31 
4.3.3   Commercial presence ............................................................................................. 32 
4.3.4   Movement of  natural persons .................................................................................. 32 
4.3.5   Performanc e requirements ...................................................................................... 34 
4.3.6   Senior Management and boards of  direct ors .............................................................. 34 
4.3.7   Other investment -related pr ovisions ......................................................................... 34 
4.4   Liberalization commitments ........................................................................................ 34 
4.4.1   Colombia ..............................................................................................................  35 
4.4.1.1   Horizont al commit ments ...................................................................................... 35 
4.4.1.2   Sector-spe cific commitments ................................................................................ 36 
4.4.2   Northern Triangle .................................................................................................. 40 
4.4.2.1   El Salvador ........................................................................................................ 41 
4.4.2.2   Guatem ala ......................................................................................................... 45 
4.4.2.3   Honduras ........................................................................................................... 49 
4.5   Regulatory provisions ................................................................................................ 52 
4.5.1   Domestic regulation ............................................................................................... 52 
4.5.2   Recognition ........................................................................................................... 53 
4.5.3   Subsidies .............................................................................................................. 53 
4.5.4   Safeguards related to  the balance of payments .......................................................... 53 
4.6   Sector specific provis ions on trade in services ............................................................... 53 
4.6.1   Freight land transport ............................................................................................. 53 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 53  
5.1   Tran sparency ........................................................................................................... 53 
5.2   Current payments and capital movements .................................................................... 54 
5.3   Safeguards ..............................................................................................................  54 
5.4   Exceptions ............................................................................................................... 54 
5.5   Accession and Withdrawal .......................................................................................... 54 
5.6   Institutio nal framework ............................................................................................. 55 
5.7   Disput e settlement ................................................................................................... 55 
5.8   Relationship with other agr eements concluded by the Parties .......................................... 58 
5.9   Intellectual property rights ......................................................................................... 60 
5.10   Government  procurement ........................................................................................ 60 
5.11   Electron ic commerce ............................................................................................... 61 
5.12   Competition policy .................................................................................................. 61 
ANNEX 1 ....................................................................................................................... . 62 
ANNEX 2 ....................................................................................................................... . 71 
 WT/REG316/1 
 
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Key Facts 
 
Parties to the Agreement:  Colombia, El Salvador, Guatemala and Honduras 
 
Date of Signature:   9 August 2007    
 
Date of Entry into Force:  
 
 
Date of Notification:   31 August 2012 
 
Full implementation:  2029 (goods)/ 2010 (services) 
 
 
1  TRADE ENVIRONMENT 
1.1.  The Free Trade Agreement (hereafter "the Agreement") between El Salvador, Guatemala, 
Honduras (the Northern Triangle) and Colombia covers goods and services. It is the 10th regional 
trade agreement (RTA) notified by Colombia and El Salvador to the WTO, and the 9th by Guatemala and Honduras.  
1.2.  The Parties differ substantially in the size of their economies and their participation in world 
trade. In 2012, Colombia's GDP amounted to about US$370 billion, almost four times bigger than that of the Northern Triangle combined (about US$93 billion). Taken individually, the difference is 
even greater, as GDP was US$23.8 billion for El  Salvador, US$50.5 billion for Guatemala, and 
US$18.5 billion for Honduras.
1 In 2012, Colombia was the world's 54th and 50th largest exporter 
and importer with exports of US$60.2 billion and im ports of US$58.1 billion. All Northern Triangle 
countries rank behind Colombia in terms of bo th exports and imports. For exports, Guatemala 
came at 90th place (US$10.1 billion), Honduras at 99th (US$5 billion) and El Salvador at 109th 
(US$5.3 billion). For imports, Guatemala ranked 84th (US$16.9 billion) and El Salvador 97th (US$10.3 billion) only three places behind Honduras (94th, US$9.7 billion).  
1.3.  With regard to services, exports from Colombia amounted to US$5 billion in 2012, making it 
the world's 71st largest exporter of services. In the same year, Colombia was the 60th largest importer with imports worth about US$11 billion. Compared to the Northern Triangle countries, 
services exports from Colombia we re about two to five times larger and imports were between four 
to ten times larger. In terms of exports, Guatemala ranked 97
th (US$2.4 billion) in the world, 
El Salvador 112th (US$1.3 billion) and Honduras 120th (US$1. 1 billion). In terms of imports, the 
rankings were similar; Guatemala came at 96th place (US$2.5 billion), Honduras at 
121st (US$1.6 billion) and El Salvador at 125th (US$1.1 billion). 
1.1  Merchandise trade 1.4.  Chart 1.1 show recent trends in trade both globally and between the Parties. During 
2000-2012, trade for all Parties increased stead ily, except in 2006 when exports from Guatemala 
fell and in 2009 when trade plunged for all Parties as a result of the global crisis. In both situations, trade recovered in the following years.  
1.5.  During this period Northern Triangle countries (taken together and individually) maintained a 
trade deficit with the world and with Colombia. The trade deficit with Colombia has broadened since 2009, and even tripled for El Salvador, amounting to US$323 million in 2012, up from US$93 in 2009.
2 The increase in the trade deficit for all No rthern Triangle countries resulted from a 
                                               
1 WTO World Trade Profiles, as of September 2013. 
2 For Guatemala, the deficit with Colombia went from US$276 to US$490 million between 2009 and 
2012, and for Honduras from US$165 to US$ 243 million. Colombia - El Salvador: 1 February 2010 
Colombia - Guatemala: 12 November 2009  
Colombia -  Honduras:  27 Ma y 2010  WT/REG316/1 
 
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modest growth in their exports to Colombia and a surge in their imports, especially since 2010. 
During 2000-2012, Colombia exhibited a global trade deficit, except in 2011 and 2012 when it reported a yearly trade surplus of US$2 billion. 
1.6.  Trade between the Parties is modest and accounts for a small share in each Party's trade. In 
2012, exports to and imports from the Northern Triangle represented, respectively, 1.4% and 
0.1% of Colombia's total exports and imports. None  of the Northern Triangle countries rank among 
Colombia's top 15 largest partners. For El Salvador, exports to and imports from Colombia 
accounted for 0.1% and 3.2% of its total exports and imports. Similarly, Colombia accounted for 
0.6% and 3.2% of Guatemala's total exports and imports; and for 0.1% and 2.6% of Honduras' 
total exports and imports. Colombia ranks among the Parties' top partners only for imports, as it represents respectively the 6th, 9th and 13th largest import source for Guatemala, Honduras and 
El Salvador. Most of the trade between Colombia and the Northern Triangle is driven by 
Guatemala.  
Chart 1.1 Colombia and the Northern Triangle: merchandise trade with the world and 
between them, 2000-2012 
0.000.020.040.060.080.100.12
0102030405060
2000 2002 2004 2006 2008 2010 2012B. Colombia: Imports
(USD Billions) 
Imports from El Salvador (Right Axis)
Imports from Guatemala (Right Axis)
Imports from Honduras (Right Axis)
Total Imports
0.000.300.600.901.201.501.80
071421283542
2000 2002 2004 2006 2008 2010 2012D. Northern Triangle: Imports
(USD Billions) 
Imports from COL (El Salvador, Right Axis)
Imports from COL (Guatemala, Right Axis)
Imports from COL (Honduras, Right Axis)
Total Imports
0.000.020.040.060.080.100.12
04812162024
2000 2002 2004 2006 2008 2010 2012C. Northern Triangle: Exports
(USD Billions) 
Exports to COL (El Salvador, Right Axis)
Exports to COL (Guatemala, Right Axis)
Exports to COL (Honduras, Right Axis)
Total Exports0.000.300.600.901.201.501.802.10
010203040506070
2000 2002 2004 2006 2008 2010 2012A. Colombia: Exports
(USD Billions) 
Exports to El Salvador (Right Axis)
Exports to Guatemala (Right Axis)
Exports to Honduras (Right Axis)
Total Exports
 
Source: UNDS Comtrade and IMF (DOTS). 
 WT/REG316/1 
 
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 Chart 1.2 Colombia – Northern Triangle: Pr oduct Composition of Bilateral Trade and 
Trade with World 2007-2009, (in percentage) 
25.7
15.3
14.99.36.15.34.23.73.53.02.46.6Colombia's Global Imports (%)
44.6
11.16.65.25.04.23.93.63.2 2.82.42.4
5.0Colombia's Global Exports (%)
Total: US$ 42 millionTotal:  US$ 33 billion
Animal 
products
Vegetables
Fats and OilsMinerals
ChemicalsPlastics, 
rubber
Wood Pulp
Wood articles Precious stonesBase metals
VehiclesOptical
OtherMiscellaneousPrepared 
foods
Machinery Stone articlesTextilesTotal: US$ 35 billion
21.7
22.356.05.6
5.2
2.8 2.5
5.6
7.9
5.2
2.4
2.34.5
17.512.28.38.39.7NT imports from Colombia (%)
GTMSLV
HND
Total: US$ 29 billion Total: US$ 14 billion Total:  US$ 484 million3.2
1.9
1.6
1.3
2.13.9
2.3
1.3
1.0 4.458.87.43.0
2.3
9.3Colombia's imports from NT (%)
HND
12.9GTM
80.7SLV
10.1
29.6
25.445.15.14.3
4.2
3.1
2.3
2.0
8.6
5.1
4.5 3.4
2.3
1.81.86.48.87.15.74.13.23.03.02.47.7NT Global Imports (%)
GTMSLV
HND29.6
18.452.012.5
4.5
2.1
1.7
8.8
7.4
1.9
1.8
1.26.111.910.18.05.24.82.72.37.1NT Global Exports (%)
GTMSLV
HND
 
 
Source: UNDS Comtrade, Banco Central de Honduras (BCH).  
1.7.  Chart 1.2 on the Parties' trade structure during 2007-2009 suggests that there is some 
complementarity between the Parties, but also competition in the case of textiles, which is one of the main export sectors for both Colombia and the Northern Triangle countries.
3 Colombia's 
imports from the Northern Triangle are dominated by plastics and rubber, which accounted for 
about 60% of all Colombia's bilateral imports during 2007-2009. Other imported products were prepared foods (10%) and wood pulp (5%). Of th ese products, only prepared food (14%) ranked 
among Northern Triangle's top 3 exports, behind vegetables (21%) and textiles (23%). Northern 
Triangle imports from Colombia are relatively more diversified, three product categories accounted 
for about two thirds of their main imports. Th ese categories were minerals (31%), chemicals 
(23%), machinery (13%). Of these products, minerals (45%) and chemicals (5%) were among 
Colombia's main exports, together with vegetabl es (11%), base metals (7%) and textiles (5%). 
1.2  Trade in services and investment 
1.8.  Charts 1.3 and 1.4 depict the Parties trade fl ows in services by type of activity in 2000-2012. 
During this period, Colombia recorded a global trade deficit, which has deepened since 2005 as 
                                               
3 It is worth noting that El Salvador, Guatemala,  and Honduras, all export almost the same main 
products to Colombia. Therefore, the overall structure of Northern Triangle (combined) exports to Colombia reflects in genera l that of individual countries. WT/REG316/1 
 
- 7 - 
 
imports have continued to outpace exports. In 2012, travel services accounted for almost half of 
services exports (45.7%), followed by transpor ts (27.3%) and communications services (6.1%). 
Transport and travel are also the categories with the largest import shares, accounting, respectively, for 32.4% and 24.1% of Colombia's total services imports. They are followed by 
insurance services (7.8%).  
Chart 1.3 Colombia, Total Commercial Services trade, 2000-2012 
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information 
servicesRoyalties and license fees
Other business services
Personal, cultural and 
recreational servicesInsurance services0.000.501.001.502.002.503.003.504.004.505.00
0.000.501.001.502.002.503.003.504.004.505.00
2000 2002 2004 2006 2008 2010 2012aA. Colombia: Exports 
(USD Billion) 
0.001.202.403.604.806.007.208.409.6010.8012.00
0.001.202.403.604.806.007.208.409.6010.8012.00
2000 2002 2004 2006 2008 2010 2012aB. Colombia: Imports 
(USD Billion) 
 
a Preliminary Data. 
Note:  No export data and import data on Co nstruction (2000-2012; 2000-2005) and Other Business 
Services (2000-2012; 2000-2005). 
 Source:  WTO Secretariat based on data from UN CTADStat and Banco de la República (BanRep). 
 
1.9.  During the same period, El Salvador, Hondur as and Guatemala ran a trade deficit in services, 
except in 2001-2002 for Guatemala and for 2012 for El Salvador. El Salvador's surplus resulted 
from a surge in exports in recent years and a stagnation of imports.  
1.10.  All three Parties exhibit a similar trade stru cture in services. In 2012, transport, travel and 
communication services were the main export categories for all three.4 Travel services accounted 
between 42% (El Salvador) and 63.8% (Honduras) of a Party's total export services, transport 
services between 8.1% (Honduras) and 32% (El Salvador), and communications services between 
12.11% (El Salvador) and 19.4% (Honduras). Transpor t and travel services were also the Parties' 
main import sectors followed by insurance services and by communications services in the case of 
Honduras. The share of transport services in the Parties total imports ranged between 42.4% 
(El Salvador) and 50.8% (Guatemala); that of trav el services ranged between 24.4% (El Salvador) 
and 27.5% (Guatemala), and that of insurance se rvices varied between 10.5% (El Salvador) and 
11.1% (Guatemala).  
                                               
4 In 2012, El Salvador's main export categori es were travel (42%), transport (32%), and 
communications services (14.9%). Transportation (42.4%) and travel (24.4%) services were also El Salvador's 
main import sectors followed by insurance services (10. 5%). For Guatemala, the categories with the largest 
export shares were travel (58%), transport (13.4% ) and communication (12.1%) services. Transportation 
(50.8%) and travel (27.5%) services were also Guat emala's main import sectors followed by insurance 
services (11.1%). For Honduras, the main export categories were travel (63.8%), communications (19.4%) 
and transport (8.1%) services . Transportation (47.3%) and travel (27.4% ) services were also Honduras's main 
import sectors followed by communication services (8.4%). WT/REG316/1 
 
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 Chart 1.4 Northern Triangle (NT), Total Commercial Services Trade, 2000-2012 by 
member 
0.000.150.300.450.600.750.901.051.201.351.50
0.000.150.300.450.600.750.901.051.201.351.50
2000 2002 2004 2006 2008 2010 2012aA. El Salvador: Exports 
(USD Billion) 
0.000.150.300.450.600.750.901.051.201.351.50
0.000.150.300.450.600.750.901.051.201.351.50
2000 2002 2004 2006 2008 2010 2012aB. El Salvador: Imports
(USD Billion) 
0.000.250.500.751.001.251.501.752.002.252.50
0.000.250.500.751.001.251.501.752.002.252.50
2000 2002 2004 2006 2008 2010 2012aC. Guatemala: Exports
(USD Billion) 
0.000.250.500.751.001.251.501.752.002.252.50
0.000.250.500.751.001.251.501.752.002.252.50
2000 2002 2004 2006 2008 2010 2012aD.Guatemala: Imports
(USD Billion) 
0.000.160.320.480.640.800.961.121.281.441.60
0.000.160.320.480.640.800.961.121.281.441.60
2000 2002 2004 2006 2008 2010 2012aE.Honduras: Exports 
(USD Billion) 
0.000.160.320.480.640.800.961.121.281.441.60
0.000.160.320.480.640.800.961.121.281.441.60
2000 2002 2004 2006 2008 2010 2012aF.Honduras: Imports 
(USD Billion) 
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information servicesRoyalties and license fees
Other business services
Personal, cultural and recreational servicesInsurance services
 
a Preliminary Data 
b Break in Series in 2007 for El Salvador.   Notes: No export and import data for El Salvador on Computer and Information (2005, 2007), Personal,  Cultural and Recreational services and Other Business services (2003, 2005-2008, 2011).  WT/REG316/1 
 
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 No export data for Guatemala on Constructi on (2004-2005, 2007-2008), Royalties and Licence Fees 
(2000-2003), Other Business services (2000-2005,  2007-2010) and Personal, Cultural and 
Recreational services (2000, 2006-2009). No import data for Guatemala on Construction (2004, 2005, 2007, 2008, 2012), Royalties and Licence Fees (2000-2003) and Other Business Services (2000-2005, 2007, 2008, 2012). 
  No export data for Honduras on Constructi on (2001, 2002, 2009-2012), Computer and Information 
(2001-2002), Financial services (2011, 2012), Other Business services (2001, 2002, 2009-2012), and Personal, Cultural and Recreational serv ices (2001, 2002, 2008). No import data on 
Construction and Other Business Services (2009).  
 Source: WTO Secretariat based on data from UNCTADSt at, Banco Central de Honduras, Banco Central de 
 El Salvador and Banco Central de Guatemala.   
1.11.  Chart 1.5 depicts the Parties global investment position between 2000 and 2011. During 
this period, all Parties were a net recipient of foreign direct investments (stocks). In the case of 
Colombia, Guatemala and Honduras, the gap between inward and outward FDI (stocks) widened since 2005. For El Salvador, the gap has fluctuated over the years but surged during 2009-2011, 
following a sharp fall in outward FDI. 
Chart 1.5 Colombia's and Northern Triangle's foreign direct investment with the world, 
2000-2011 
0.010.020.030.040.050.060.070.080.090.0100.0
0.010.020.030.040.050.060.070.080.090.0100.0
2000
2001
2002
2003
20042005
2006
2007
2008
2009
2010
2011A. Colombia
(USD Billion) 
Inward
Outward
0.00.10.20.30.40.50.60.70.80.91.0
0.00.91.82.73.64.55.46.37.28.19.0
2000
2001
200220032004
2005
200620072008
2009
20102011B. El Salvador
(USD Billion) 
Inward
Outward (Right Axis)
0.00.10.20.30.40.50.60.70.80.91.0
0.00.81.62.43.24.04.85.66.47.28.0
2000
2001
2002
20032004
2005
20062007
2008
200920102011C. Guatemala
(USD Billion) 
Inward
Outward (Right Axis)
0.00.10.20.30.40.50.60.70.80.91.0
0.00.81.62.43.24.04.85.66.47.28.0
2000
20012002200320042005200620072008200920102011D. Honduras 
(USD Billion) 
Inward
Outward (Right Axis)
 
 
Source:  WTO Secretariat based on data from UN CTADStat and Banco de la República (BanRep). 
 
1.12.  The Parties indicated that only El Salvador and Colombia maintain data on bilateral FDI and 
trade in services. El Salvador maintains bilateral data for inward FDI only (stocks); while Colombia has data for bilateral trade in services but only for Honduras. These data reveal that Colombia's services exports to Honduras almost doubled between 2008 and 2012, amounting to 
US$13.6 million in 2012; while imports fell from US$3.2 to US$1.1 million during the same period WT/REG316/1 
 
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 (Table 1.1). The data also shows that Colombia's FDI in El Salvador has been relatively stable 
since 2009. In 2012, it totalled US$ 37.2 million (Table 1.2.). 
Table 1.1 Colombia: Trade in Services with Honduras, 2008-2012 
 Million USD 
2008 2009 2010 2011 2012 
Exports 6.90 5.51 11.73 13.00 13.66 
Imports 3.22 0.41 0.74 0.80 1.10 
  
Note: Includes only trade in Transportation services; Other Business services; Communication services; 
Computer and information services; Personal, cultur al and recreational services and Royalties and 
licences fees.  
 Data may diverge from records based on BoP methodol ogy, due to prevailing differences in sources.  
 Source: Quarterly Sample on Trade in Services, Depa rtamento Administrativo Nacional de Estadística 
(DANE).  
 
Table 1.2 El Salvador's foreign direct in vestment (inward) with Colombia, 2009-2012 
 Million USD 
2009 2010 2011 2012 
inward FDI (stocks) 37.6 41.8 35.1 37.2  
 
Source: Banco Central de Reserva de El Salvador.  
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Agreement, which covers goods and services, was signed by the Parties on 
9 August 2007 and notified to the WTO on 31 August 2012 after its entry into force. The 
Agreement entered into force on 1 February 2010 for Colombia and El Salvador, 12 November 
2009 for Colombia and Guatemala, and on 27 March 2010 for Colombia and Honduras.  
2.2.  The Agreement was notified to the WTO under Article XXIV:7(a) of GATT 1994 and 
Article V:7(a) of the GATS (WT/REG316/N/1 and S/C/N/646). The text of the Agreement, along 
with its schedules and annexes, is available in the website of the Parties' competent authorities.5  
2.3.  The Agreement contains 21 chapters and three annexes (Box 2.1).  Box 2.1 Structure of the Agreement 
 Preamble 
Chapter 1 Initial Provisions  
Chapter 2 General Definitions 
Chapter 3 National Treatment and Market Access for Goods 
Chapter 4 Rules of Origin 
Chapter 5 Customs Procedures related to the origin of goods 
Chapter 6 Trade Facilitation 
Chapter 7 Safeguard measures  
                                               
5 The text of the agreement can be found in: 
https://www.mincomercio.gov.co/publicaciones.php?id=15292  (for Colombia); 
http://www.minec.gob.sv/index.php? option=com_phocadownload&view=ca tegory&id=16:tlc- entre-colombia-
guatemala-honduras-y-e l-salvador&Itemid=142  (for El Salvador); http://portaldace.mineco.gob.gt/tratados-y-
acuerdos-comerciales  (for Guatemala) and http://www.sic.gob.hn/dgiepc/texto-normativo.html  (for Honduras). WT/REG316/1 
 
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Chapter 8 Antidumping and countervailing measures  
Chapter 9 Sanitary and Phytosanitary Measures 
Chapter 10 Technical Barriers to Trade 
Chapter 11 Government procurement 
Chapter 12  Investment 
Chapter 13 Cross-Border Trade in Services 
Chapter 14 Electronic commerce  
Chapter 15 Temporary Entry of Business Persons 
Chapter 16 Transparency 
Chapter 17 Administration of the Agreement 
Chapter 18 Dispute Settlement 
Chapter 19 Exceptions 
Chapter 20 Cooperation 
Chapter 21 Final Provisions 
Annex I  Non-Conforming Existing Measures - Services and investment  
Annex II  Non-Conforming Future Measures  - Services and investment 
Annex III  Exceptions with respect to the MFN principle  
Source: The Agreement. 
 
3  PROVISIONS ON TRADE IN GOODS 
3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 
3.1.  Trade in goods between the Parties is governed by Chapter 3. The Chapter, which does not 
apply to used goods (except as otherwise specified), contains provisions on national treatment, 
tariff elimination, special regimes, agriculture, non-tariff measures, export taxes, distinctive products, customs valuation and institutional matters. The Agreement follows the WTO definition 
for agricultural products.  
3.2.  The Parties agree to grant national treatm ent to each other's goods in accordance with 
Article III of GATT 1994, except as provided in Anne x 3.3 (Article 3.3). In this Annex, the Parties 
list the measures that are exempted from nation al treatment (Article 3.3) and from elimination 
(Article 3.7). All Parties list import and export controls for a number of goods. The goods covered 
varied across Parties, and include both agricultural and non-agricultural goods.
6 All the Parties 
(except for Colombia) apply import controls for arms. In addition all Parties list actions authorized 
by the WTO Dispute Settlement Body.  
3.3.  The Parties commit to eliminate and reduce customs duties on originating goods according to 
their respective Schedules (Annex 3.4). Tariffs shall be ad-valorem only. The Parties cannot 
increase an existing tariff or introduce a new one, except as otherwise specified. In particular, they 
can (a) increase a custom duty up to the level established in their tariff schedule following a 
                                               
6 In Annex 3.3., Colombia lists import controls fo r new and used vehicles, us ed and imperfect goods, 
and waste, as well as export contro ls for coffee. El Salvador lists impo rt controls for we apons, ammunitions 
and their accessories; used vehicles, buses and trucks of a certain age; sacks and bags made out of jute and similar textile fibres, and for goods listed in Decree 647, such as maize, prepared food and wines. El Salvador also lists controls on the export of smelting wastes, st eel, iron, copper, nickel, alum inium, lead, zinc and tin. 
Guatemala lists export controls for wood, coffee, as well as imports controls for arms and ammunitions. 
Honduras lists exports controls for wood from broad- leaved forests and import  controls for arms and 
ammunitions, vehicles and buses, substances that deplet e the ozone layer, products with asbestos and for all 
oil and derivate products. WT/REG316/1 
 
- 12 - 
 
 unilateral reduction; and (b) maintain or increase a custom duty when authorized by the WTO 
Dispute Settlement Body (Article 3.4). The Parties also agree that at the request of any Party, they 
will hold consultations to consider accelerating the liberalization process or improving the market access conditions for originating goods. In this respect, the Parties indicated that several meetings 
have taken place and that the consultation process is ongoing.  
3.4.   The Parties allow duty-free entry for two ty pes of goods: (a) goods imported on a temporary 
basis
7 (Article 3.5) and (b) commercial samples of negligible value and printed advertising 
materials (Article 3.6).  
3.5.  They agree to eliminate any non-tariff meas ure that prohibits or restricts their bilateral 
imports, except as provided in Article XI of  the GATT 1994 (see Paragraph 3.2). The prohibition 
applies to measures such as import price requirements, import licences and minimum and 
reference prices (Article 3.7). 
3.6.  Regulations on customs valuation will fo llow the WTO Customs Valuation Agreement and any 
successor agreement (Article 3.8).  
3.7.  The Parties prohibit any measure that is in consistent with the Agreement on Import Licensing 
Procedures and commit to notify the other Party of any existing import licensing procedure, as well as any subsequent related change following the Agreement's entry into force. The notification shall 
be made 60 days before its procedural implementation. A good from the other Party can be 
subject to an import license only if the procedure has been notified (Article 3.9). 
3.8.   With respect to fees and formalities, the Parties shall ensure that all administrative fees and 
charges in connection with the import and export of goods are applied in accordance with 
Article VIII:1 of the GATT (i.e. the amount shall be  limited to the approximate cost of services 
rendered). They will not require any consular transaction related to imports from the other Party. A list of the fees and charges currently applied in connection with import or export must be 
available on the internet (Article 3.10).  
3.9.  The Parties establish a Committee on Trade in goods (Article 3.18).  3.1.2  Liberalization of trade and tariff lines 
3.10.  The Parties' tariff elimination schedule and staging categories are detailed in Annex 3.4 of 
the Agreement. They list 14 different staging categories in their schedules and use the MFN rates applied in 2006 as the base rate. For all Parties, liberalization started upon the Agreement's entry into force and will be completed by 2025 for Colombia
8 and by 2029 for the Northern Triangle. All 
Parties exclude products from liberalization: 1,839 lines were excluded by El Salvador, 1,676 by 
Guatemala, and 931 by Honduras.9 Colombia excluded 1,601 lines with respect to its liberalization 
with El Salvador10, 1,561 lines for Guatemala11 and 682 lines for Honduras.12 
3.11.  Tables 3.1- 3.2 summarize the tariff and trade liberalization carried out by the Parties under 
the Agreement. Table 3.1 shows that Colombia's commitments towards the Northern Triangle were similar across the countries in terms of the coverage and timing, except for Honduras, which 
benefits from a broader coverage in terms of the number of lines. In 2010, when the Agreement 
entered into force, 4% of Colombia's tariffs were  duty free on an MFN basis, accounting for 0.3% 
of its imports from El Salvador and Honduras in 2007-2009, and for 1.4% of its imports from 
                                               
7 Goods temporally admitted are professional equipm ent, goods intended for display or demonstration, 
goods imported for sports purposes, and commerci al samples and advertising films and recordings. 
8 For El Salvador and Honduras, the liberalization process scheduled by Colombia will be completed 
before 2025 (i.e. 2024). 
9 Of these lines, 238 were duty-free on an MFN basis in the case of El Salvador (as of 2010) , 136 in the 
case of Honduras, 156 in the case of Guatemala. 
10 Of these lines, 5 were duty-free on an MFN basis, but one was still subject to a variable component 
under the price band system. 
11 Of these lines, 7 were duty-free on an MFN basis, but one was still subject to a variable component 
under the price band system. 
12 Of these lines, 4 were duty-free on an MFN basis, but one was still subject to a variable component 
under the price band system. WT/REG316/1 
 
- 13 - 
 
Guatemala. As a result of the Agreement's entry into force, Colombia liberalized in 2010 another 
60% of lines for El Salvador and Guatemala, and about 73% for Honduras. Further tariff elimination will take place between 2013 and 2025, with major changes occurring in 2014 and 2019. By 2020, after 10 years of implementation, 77%  of Colombia's tariff lines will be duty-free 
for El Salvador, 76% for Guatemala and 90% for Honduras. At the end of the implementation 
period in 2025, these percentages will be almost the same and will correspond to 58%, 46% and 67% of Colombia's imports from El Salvador, Guatemala and Honduras, respectively. Of the lines 
that will remain dutiable, the majority (530 lines for Honduras, 1,396 lines for El Salvador and 
1,417 for Guatemala) will exhibit rates between 10% and 20%. 
Table 3.1 Colombia: Tariff elimination commi tments under the Agreement and average 
values of corresponding trade 
 Commitments applied by Colombia to: 
Period No. of lines % 
of lines Value of Imports (07-09) 
(in million USD) % of Total imports El Salvador  
Guatemalaa 
Honduras  
El Salvador  
Guatemalaa 
Honduras  
El Salvador  
Guatemalaa 
Honduras  
El Salvador  
Guatemalaa 
Honduras  
MFN Duty 
Free 
(2010) 293 293 293 4.0 4.0 4.0 0.0 0.4 0.0 0.3 1.4 0.3 
2010 4,353 4,339  5,274 60.0 59.9 72.7 2.0 13.5 2.3 52.5 42.2 61.3 
2012 5  5 0.1 0  0.1 0.0 0  0.0 0.0  0 0.0 
2013 2 2 2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
2014 644 576 641 8.9 8.0 8.8 0.2 0.5 0.2 4.8 1.4 4.8 
2015 22 21 22 0.3 0.3 0.3 0.0 0.0 0.0 0.0 0.0 0.0 
2017  7  0  0.1 0  0  0.0 0   0 0.1  0 
2018 1 1 1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
2019 248 279 256 3.4 3.8 3.5 0.0 0.3 0.0 0.7 0.8 0.7 
2020 13 13 13 0.2 0.2 0.2 0.0 0.0 0.0 0.0 0.0 0.0 
2024 4 5 6 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 
2025  1  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Remain 
dutiable 1,668 1,716  740 23.0 23.6 10.2 1.6 17.3 1.2 41.7 54.1 32.9 
Total 7,253 7,253  7,253 100.0 100.0 100.0 3.7 31.9 3.7 100.0 100.0 100.0 
 
a  According to the Decision N°2 of the administrative council to the Agreement, the first period of 
tariff phase-out for Guatemala was from 12 November 2009 to 31 December 2010. For calculation purposes, 2010 (instead of 2009) is thus considered as the Agreement's first year of implementation in the case of Guatemala.  
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific rates are excluded and the ad valorem  parts of 
alternate rates are included.   Based on HS 2007 nomenclature.  
 Source: WTO estimates based on data pr ovided by Colombia and WTO-IDB.  
 
3.12.  Table 3.2 shows the commitments of El Salvador, Guatemala and Honduras towards 
Colombia. Of the three countries, Honduras made broader commitments by agreeing to liberalize 
the largest share of lines by the end of the transiti on period. All three countries will liberalize at a 
similar pace. In 2010, when the Agreement entered in to force, about 47% of their respective tariff 
schedules were duty free on an MFN basis, which accounted for between 48% (Guatemala) and 
69% (Honduras) of their import s from Colombia during 2007-2009.13 Upon the Agreement's entry 
into force, each Party liberalized around 7% of additional lines. Subsequent tariff eliminations are scheduled for 2014 to 2029, with major changes occurring in 2014 and 2019. By 2020, after 10 years of implementation, El Salvador will have  liberalized 72% of its tariff lines, Guatemala 
70% and Honduras 84%. By 2029, these percentages will rise respectively to 75% 74% and 88%. 
For El Salvador, Guatemala and Honduras, more than half (i.e. 914, 968 and 474, respectively) of their dutiable lines will exhibit a tariff lower than 10%.  
                                               
13 All tariff lines for El Salvador, Guatemala and Honduras have ad valorem  duties (as of 2010). WT/REG316/1 
 
- 14 - 
 
 Table 3.2 Northern Triangle: Tariff elimin ation commitments under the Agreement and 
average values of corresponding trade with Colombia  
 Commitments towards Colombia by: 
Period No. of lines % of lines Value of Imports (07-
09) (in million USD) % of Total imports 
from Colombia El Salvador 
Guatemalaa 
Honduras 
El Salvador 
Guatemalaa 
Honduras 
El Salvador 
Guatemalaa 
Honduras 
El Salvador 
Guatemalaa 
Honduras 
MFN Duty 
Free 
(2010) 3,094 2,977 3,098 47.1 47.3 47.2 62.5 132.0 75.5 59.5 47.7 68.7 
2010 426 443 477 6.5 7.0 7.3 1.3 20.4 15.5 1.2 7.4 14.1 
2014 626 520 1,350 9.5 8.3 20.6 3.7 17.1 2.6 3.5 6.2 2.4 
2015 4  3 0.1  0.0 0.3  0.2 0.3  0.1 
2016 4 4 4 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 
2019 554 462 564 8.4 7.3 8.6 7.2 41.5 3.8 6.9 15.0 3.5 
2020 15 6 13 0.2 0.1 0.2 0.0 0.0 0.1 0.0 0.0 0.0 
2021 11 5 6 0.2 0.1 0.1 0.2 0.1 0.1 0.2 0.0 0.1 
2022  11   0.2   4.5   1.6  
2023 1 2 1 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 
2024 195 199 209 3.0 3.2 3.2 2.3 10.7 4.8 2.2 3.9 4.3 
2025 3 4 3 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
2029 10 11 12 0.2 0.2 0.2 0.0 0.0 0.0 0.0 0.0 0.0 
Remain 
dutiable 1625 1,654 824 24.7 26.3 12.6 27.5 50.3 7.4 26.2 18.2 6.7 
Total 6,568 6,298 6,564 100.0 100.0 100.0 105.1 276.6 109.9 100.0 100.0 100.0 
 
a  According to the Decision N°2 of the administrative council to the Agreement, the first period of 
tariff phase-out for Guatemala was from 12 November 2009 to 31 December 2010. For calculation purposes, 2010 (instead of 2009) is thus considered as the Agreement's first year of implementation in the case of Guatemala.  
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific rates are excluded and the ad valorem  parts of 
alternate rates are included.   Based on HS 2007 nomenclature.  
 Source: WTO estimates based on data provided  by Guatemala, Hond uras and WTO-IDB.  
 
3.1.3  Liberalization by product 
3.1.3.1  Colombia  
3.13.  At the end of the implementation period, Colombia will continue to apply tariffs for all 
Northern Triangle countries, but the number of dutiable lines as well as the average tariff rates will 
vary. For El Salvador and Guatemala, 1,668 and 1,716 lines of Colombia's schedule will remain 
dutiable; while for Honduras, there will be 740 dutiable  lines. These lines fall within all HS sections, 
except for pearls and precious stones (XIV), op tical, precision or medical instruments (XVIII), 
arms and ammunition (XIX), and works of art (XXI) (Table 3.3). In addition, Colombia fully liberalizes textiles (XI) but only for Honduras.  
3.14.  The sections with the highest average tariffs (range of tariffs in parenthesis) will be animal 
products (I) (41.6%-45.3%), vehicles (XVII) (26.6%-28.7%) and vegetables (II) (19.5%-20.6%). 
Although the sections with the highest average tariffs are I to IV, the majority of dutiable lines involve goods in sections V to XXI. Of the dutiable lines, 1,337 refer to goods in sections V-XXI in 
the case of El Salvador, 1,366 in the case of Guatemala and 412 for Honduras. For sections V to 
XXI, the average preferential tariffs will rang e between 5% and 28.7%. The sections with the 
highest average tariffs will be vehicles (XVII) (26.6%-28.7%), footwear (XII) (17.8%-19.2%) and 
textiles (XI) for El Salvador and Guatemala (18. 4%), and machinery (XVI) for Honduras (17.5%). 
For El Salvador and Guatemala, section XI (textiles) is also the section with the highest number of dutiable lines (902 lines each). As for sections I-IV, the average preferential tariffs will range 
between 17.5% and 45.3%. Animal products (I) will exhibit the highest average preferential tariffs WT/REG316/1 
 
- 15 - 
 
(41.6%-45.3%), followed by vege tables (19.5%-20.6%), animal or vegetable fats and oils (III) 
(18.8%-19%) and prepared foods (17.5%-18.3%).  
Table 3.3 Colombia: Tariff elimination under the Agreement, by HS section Partner HS 
section MFN 
average
%a Total  
No. of 
lines MFN  
duty-
free 
(2010)  Number of duty-free lines under the Agreement 
Remain 
dutiable  Avg. 
Duty 2010 
2012 
2013 
2014 
2015 
2017 
2018 
2019 
2020 
2024 
2025 El Salvador  I 24.6 301 2 185      23       4       87 45.3  
II 14.8 386   218     65 2   1 13 10     77 20.1 
III 17.4 64   21        1             42 18.8  
IV 18.4 292   56     67 17     23 3 1   125 18.2 
V 6.1 192 4 180      3               5 7.0  
VI 6.4 1,417 196 1,070      36 2     7       106 13.1 
VII 13.1 314 9 158      33       28       86 17.3  
VIII 12.4 78   33 5   33       3   3   1 5.0 
IX 12.5 107   33      51       13       10 15.0  
X 12.5 202 14 80     22       3       83 13.6 
XI 18.1 933 1 30                      902 18.4  
XII 18.8 56   17     5       15       19 19.2 
XIII 13.9 168   104      53       5       6 15.0  
XIV 11.1 57   41     16                   
XV 10.5 714 18 543      50       32       71 13.7  
XVI 9.4 1,227 35 1,121      63       4       4 16.3 
XVII 14.5 228 12 107      76       8       25 28.5  
XVIII 7.1 285 2 275     6       2           
XIX 17.5 69                 69           
XX 18.0 156   74   2 42       19       19 17.4 
XXI 20.0 7   7                          
Total 12.1 7,253 293 4,353  5 2 644 22   1 248 13 4   1,668 19.1 Guatemala  I 24.6 301 2 176      15       12       96 42.4  
II 14.8 386  212     65 2   1 12 10     84 19.5 
III 17.4 64  21        1             42 19.0  
IV 18.4 292  54     69 16     20 3 1 1 128 17.5 
V 6.1 192 4 177      3               8 7.5  
VI 6.4 1,417 196 1,088      38 2     6   1   86 13.5 
VII 13.1 314 9 157      31   7   23       87 16.9  
VIII 12.4 78  32     30       3   3   10 11.8 
IX 12.5 107  36      46       13       12 14.4  
X 12.5 202 14 82     17       11       78 13.8 
XI 18.1 933 1 30                      902 18.4  
XII 18.8 56  20     2       13       21 17.8 
XIII 13.9 168  106      47       5       10 10.8  
XIV 11.1 57  42     15                  
XV 10.5 714 18 528      36       45       87 13.5  
XVI 9.4 1,227 35 1,114      52       2       24 10.1 
XVII 14.5 228 12 113      69       6       28 28.7  
XVIII 7.1 285 2 275     6       2          
XIX 17.5 69               69          
XX 18.0 156  69   2 35       37       13 15.2 
XXI 20.0 7  7                         
Total 12.1 7,253 293 4,339    2 576 21 7 1 279 13 5 1 1,716 18.8 Honduras I 24.6 301 2 189      23               87 41.6  
II 14.8 386   220     63 2   1 13 10     77 20.6 
III 17.4 64   21        1             42 19.0  
IV 18.4 292   58     67 17     22 3 3   122 18.3 
V 6.1 192 4 177      6               5 7.0  
VI 6.4 1417 196 1100     37 2     7       75 15.1 
VII 13.1 314 9 159      33       28       85 17.4  
VIII 12.4 78   33 5   33       3   3   1 5.0 
IX 12.5 107   32      54       12       9 14.4  
X 12.5 202 14 83     19       2       84 13.9 
XI 18.1 933 1 906      11       15          
XII 18.8 56   17     5       15       19 19.2 
XIII 13.9 168   106      53       3       6 15.0  
XIV 11.1 57   41     16                  
XV 10.5 714 18 538      50       35       73 13.5  
XVI 9.4 1227 35 1122     64       4       2 17.5 
XVII 14.5 228 12 116      59       6       35 26.6  
XVIII 7.1 285 2 275     6       2          
XIX 17.5 69                 69          
XX 18.0 156   74   2 42       20       18 17.2 
XXI 20.0 7   7                         
Total 12.1 7253 293 5274  5 2 641 22   1 256 13 6   740 20.1 WT/REG316/1 
 
- 16 - 
 
 
a According to the Decision N°2 of the administrative council to the Agreement, the first period of 
tariff phase-out for Guatemala went from 12 November 2009 to 31 December 2010. For calculation 
purposes, 2010 (instead of 2009) is thus considered as the Agreement's first year of implementation in the case of Guatemala.  
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific rates are excluded and the ad valorem  parts of 
alternate rates are included.  
 Based on HS 2007 nomenclature.   Source: WTO estimates based on data pr ovided by Colombia and WTO-IDB.  
 
 
3.15.  At the HS chapter level, the average preferential tariffs will range between 3% and 70% for 
all three partners (Chart 3.1). The HS chapters wi th the highest average preferential tariffs will be 
products of animal origin (Chapter 5), dairy prod ucts (Chapter 4), followed by meat and edible 
meat offal (Chapter 2) in the case of El Salvador and Guatemala, and edible vegetables (Chapter 7) for Honduras. For El Salvador, of the 63 Chapters subject to a tariff, 15 will exhibit an 
average preferential rate lower than the MFN average.
14 Most of them (11 chapters) refer to 
chapters 1 to 24. For Guatemala, 24 of the 65 Chap ters subject to duties, will show an average 
preferential rate lower than the MFN average. Most  of them (15 chapters) fall in the manufactured 
sector.15 Finally, for Honduras, in 14 of the 46 dutiable Chapters, the average preferential rate will 
be lower than the MFN average.16 About half of them (8 chapters) are in the agricultural sector. In 
all remaining chapters, the MFN and preferential average rates are the same. 
                                               
14 The 15 Chapters are: 2,6,7,8,10,11,12,15,21,22,23,30,48,87 and 95. 
15 The 24 Chapters are: 3,6,8,10,12,16,20,21,23,38,40,42,44,48,49,64,70,72,73,82,83,85,87 and 95. 
16 The 14 Chapters are: 2,6,8,10,11,12,21,23,28,30,44,48,87 and 95. WT/REG316/1 
 
- 17 - 
 
Chart 3.1 Colombia: Tariff elimination under the Agreement, by HS chapter 
01020304050607080
*02
*04
0506
07
0809
*10
*11*12
*15
16
*17
18
*19
20
2122
*23
2425
27
2829
30
31
32
3334
*35
*38
39
40
4144
48
4950
51
52
53
5455
56
5758
59
6061
62
6364
68
7072
73
76
84
8587
94
9596Average rate of duty (%)
01020304050607080
*02
03
*04
05
06
070809
*10
*11*12*15
*16
*17*19
20
21
22
*23
24
25
272830
31
3233
34
*35*38
39
40
414244
48
495051
52
535455
56
575859
60
616263
64
6870
72
737682
83
848587
94
9596Average rate of duty (%)Colombia - Guatemala
01020304050607080
*02
*04
0506070809
*10*11*12*15*16*17
18
*19
202122
*23
2425272830323334
*35*38
394041444849646870727376848794
95
96Average rate of duty (%)Colombia - Honduras
HS 01-24 HS 25-97
MFN+ PreferentialColombia - El Salvador
HS 01-24
HS 01-24 HS 25-97HS 25-97
 
* Includes lines subject to the price band system. 
+  For a given HS chapter, the average MFN rate can be different across Partie s, due to a difference in 
the number of dutiable lines in that category at the end of the implementation period.  WT/REG316/1 
 
- 18 - 
 
 
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. For tariff lines subject to the pric e band system, only their fixed component is 
considered. For Guatemala, in Chapter 11, the aver age preferential tariff is higher than the MFN, 
which is due to the way lines subject to the band price system are treated. The fixed component of 
this type of lines (ad-valorem rate) is included in the calculation. In Chapter 11, the MFN average includes 12 lines, of which two are subject to the band price system. Under the Agreement, the fixed component of the two lines became duty free. As a result, they are not included in the counting when computing the average preferential rate. Si nce the fixed component of these lines has an 
ad valorem rate lower (i.e. 15%) than the rest of the lines (i.e. 20%), and they are not included in 
the computation of average prefer ential rate, the latter is lower than the MFN average rate. 
 "Source:  WTO estimates based on data provided by Colombia and WTO-IDB."   
3.1.3.2  Northern Triangle 
3.1.3.2.1  El Salvador 
3.16.  By 2029, 1,625 lines will remain dutiable. Most of them are in Sections V-XXI except for 288 
lines which fall within Sections I-VI (Table 3.4). For sections V-XXI, average tariffs will vary between 7.5% and 19.7%, while for Sections I-VI , they will range between 12% and 31.2%. The 
sections with the highest average tariffs are: animal products (I); prepared foods (IV) and vehicles 
(XVII), with 31.2%, 26.4% and 19.7%, respectively.  
3.17.  At the HS chapter level, tariffs will continue to apply in 63 chapters (Chart 3.2). The 
average tariff varies between 5% and 50.1%. In a ll but five chapters, the average preferential rate 
equals the average MFN. These chapters are: dair y products (Chapter 4), live trees and plants 
(Chapter 6), fruits and nuts (Chapter 8), products  of the milling industry (Chapter 11) and edible 
preparations (Chapter 21). 
Table 3.4 El Salvador: Tariff eliminatio n under the Agreement, by HS section 
HS 
section MFN 
average 
% Total 
No. of 
lines MFN 
duty-
free 
(2010) Number of duty-free lines under the Agreement  No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2010 
2014 
2015 
2016 
2019 
2020 
2021 
2023 
2024 
2025 
2029 
I 16.1 299 42 127 13     19       3     95 31.2 
II 9.8 376 107 45 75     59     1 23 3   63 14.3 
III 7.3 54 18 5 3       1           27 12.0 
IV 16.4 274 32 24 23   4 52 7 7   21   1 103 26.4 
V 2.7 178 112 42 17     2             5 12.0 
VI 2.1 962 751 17 62     27   1   10     94 9.7 
VII 4.6 335 145 7 43     12       19     109 8.3 
VIII 8.3 108 19 11 13     30       22   9 4 7.5 
IX 7.9 138 27 1       44 2     29     35 8.9 
X 5.1 294 149 2       37       5     101 10.2 
XI 9.6 920 118                       802 11.0 
XII 13.1 64 2 6 10     15       9     22 14.1 
XIII 6.4 176 80 7 21     54       5     9 15.0 
XIV 6.9 54 15 6 18     15                 
XV 3.3 699 458 11 63 1   51       33     82 9.9 
XVI 2.2 974 777 33 115     36   3   3     7 12.9 
XVII 6.2 234 66 48 41     29             50 19.7 
XVIII 3.9 237 150 11 68     8                 
XIX 30.0 21           21                 
XX 10.7 162 26 23 32 3   43 5     13     17 12.9 
XXI 7.8 9     9                       
Total 6.3 6,568 3,094 426 626 4 4 554 15 11 1 195 3 10 1,625 13.3 
 
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations.  
 Based on HS 2007 nomenclature.   Source: WTO estimates based on data pr ovided by El Salvador and WTO-IDB. 
 WT/REG316/1 
 
- 19 - 
 
Chart 3.2 El Salvador: Tariff eliminatio n under the Agreement, by HS chapter 
MFN Preferential0510152025303540455055
02
04
050607
08
091011
12
151617
18
192021
22
2324
25
272829
30
313233
34
353839
40
414448
49
505152
53
545556
57
585960
61
6263
64
687072
73
768485
87
949596Average rate of duty (%)HS 01-24 HS 25-97
 
 
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations.  Based on HS 2007 nomenclature.  
 Source: WTO estimates based on data prov ided by El Salvador and WTO-IDB.  
 
3.1.3.2.2  Guatemala 
3.18.  By 2029, 1,654 lines of Guatemala's schedule w ill remain dutiable (Table 3.5). The majority 
of these lines (1,345 lines) refer to manufactured products (HS sections V to XXI), in particular textiles (XI). The average preferential tariffs ac ross these sections will range between 7.6% and 
12.9%. Like for El Salvador, all sections are subject to tariffs, except for pearls and precious 
stones (XIV), optical and precision instruments (XVIII), arms and ammunitions (XIX) and works of 
art (XXI). As for sections I-IV, the average tari ff will vary between 12.6% and 15.6%. Overall, the 
sections with the highest average tariffs will be: prepared foods (IV), footwear (XII) and 
machinery (XVII), with 15.6%, 12.9% and 12.6%, respectively. 
3.19.  At the HS chapter level, tariffs will continue to apply in 65 chapters (Chart 3.3). The 
average preferential rate will range between 4. 9% and 29.8%. The HS chapters with the highest 
average preferential tariff will be beverages, spir its and vinegar (Chapter 22), cereals (Chapter 10) 
and vegetables (Chapter 7). The average preferen tial rate will be lower than the MFN rate in 
22 chapters, including fish (chapter 3), fruits and nuts (chapter 8), prepared food (chapters 16, 
19, 20 and 21), footwear (chapter 64) and vehicles (chapter 87).
17 For the remaining chapters, the 
MFN and preferential rates are equal.  
Table 3.5 Guatemala: Tariff elimination under the Agreement, by HS section 
HS 
section MFN 
average 
% Total 
No. of 
lines MFN 
duty-
free 
(2010a) Number of duty-free lines under the Agreement  
No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2010a 
2014 
2016 
2019 
2020 
2021 
2022 
2023 
2024 
2025 
2029 
I 10.2 289 41 123 6   18         3     98 12.8 
II 9.8 371 92 61 61   56       1 19 4   77 12.6 
III 7.7 53 17 5 3     1             27 12.6 
IV 12.6 270 30 24 20 4 50 5 4 2 1 22   1 107 15.6 
V 2.7 177 113 33 20   2               9 10.6 
VI 2.0 920 726 22 75   19         11   1 66 10.9 
VII 4.7 330 139 10 38   11     9   12     111 8.1 
VIII 8.3 108 19 11 12   25         22   9 10 10.2 
IX 7.8 90 25 2     26         17     20 10.3 
X 5.1 285 143 2     33         8     99 9.4 
                                               
17 These chapters are: 3, 6, 8, 16, 19, 20, 21, 38, 40, 42, 44, 48, 49, 64, 70, 72, 73, 82, 83, 85, 87 and 
95. WT/REG316/1 
 
- 20 - 
 
 
HS 
section MFN 
average 
% Total 
No. of 
lines MFN 
duty-
free 
(2010a) Number of duty-free lines under the Agreement  
No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2010a 
2014 
2016 
2019 
2020 
2021 
2022 
2023 
2024 
2025 
2029 
XI 9.8 914 110                       804 11.1 
XII 12.9 63 2 9 11   12         6     23 12.9 
XIII 6.4 160 72 7 16   45         5     15 7.8 
XIV 6.9 54 15 8 17   14                   
XV 3.1 693 469 31 19   29         43     102 8.7 
XVI 2.5 901 706 39 105   28   1     2     20 7.6 
XVII 7.2 188 75 16 18   27               52 12.6 
XVIII 3.8 245 158 11 68   8                   
XIX 16.4 21         21                   
XX 10.6 157 25 29 22   38         29     14 9.4 
XXI 7.8 9     9                       
Total 5.9 6,298  2,977 443 520 4 462 6 5 11 2 199 4 11 1,654 11.1 
 
a  According to the Decision N°2 of the administrative council to the Agreement, the first period of 
tariff phase-out for Guatemala went from 12 November 2009 to 31 December 2010. For calculations purposes, 2010 (instead of 2009) is thus considered as the Agreement's first year of implementation in the case of Guatemala. 
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations.  Based on HS 2002 nomenclature.  
 Source: WTO estimates based on data pr ovided by Guatemala and WTO-IDB.  
 
Chart 3.3 Guatemala: Tariff elimination under the Agreement, by HS chapter 
MFN Preferential051015202530
02
03040506
07
0809101112151617192021222324252728303132333435
38
3940414244484950515253545556575859606162636468
70
7273768283848587949596Average rate of duty (%)HS 01-24 HS 25-97
 
 
 
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations.  Based on HS 2002 nomenclature.  
 Source: WTO estimates based on data pr ovided by Guatemala and WTO-IDB.  
 
3.1.3.2.3  Honduras  
3.20.  By 2029, 824 lines of Honduras's schedule will remain dutiable (Table 3.6). The majority of 
these lines (529 lines) refer to manufactured products (HS sections V to XXI), in particular plastics (VII) and wood pulp (X). The average preferenti al rates for these sections will range between 
7.5% and 15%. All sections are subject to tariffs, except for textiles (XI), pearls and precious 
stones (XIV), optical and precision instruments (XVIII), arms and ammunitions (XIX) and works of 
art (XXI). As for sections I-IV, the average tari ff will vary between 10.4% and 15.8%. Overall, the 
sections with the highest average tariffs will be: animal products (I), prepared foods (IV) and 
articles of stones, plaster and cement (XIII) , with 24.1%, 15.8% and 15%, respectively.  WT/REG316/1 
 
- 21 - 
 
3.21.  At the HS chapter level, tariffs will continue to apply in 47 chapters (Chart 3.4). The 
average preferential rate will range between 5%  and 31.7%. The HS chapters with the highest 
average preferential tariffs will be cereals (C hapter 10), tobacco (Chapter 24), and meat and 
edible meat offals (Chapter 2). In all chapters bu t seven, the average preferential rate equals the 
average MFN. These chapters are: meat and edible meat offal (Chapter 2), live trees and plants 
(Chapter 6), fruits and nuts (Chapter 8) and ed ible preparations (Chapter 21), wood and wood 
articles (chapter 44), paper (chapter 48) and vehicles (chapter 87). 
Table 3.6 Honduras: Tariff elimination under the Agreement, by HS section 
HS 
section MFN 
average 
% Total 
No. of 
lines MFN 
duty-
free 
(2010) Number of duty-free lines under the Agreement 
No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2010 
2014 
2015 
2016 
2019 
2020 
2021 
2023 
2024 
2025 
2029 
I 14.0 299 42 133 10     19             95 24.1 
II 9.9 376 105 57 66     57     1 23 3   64 14.6 
III 8.1 54 9 6 3       1           35 10.4 
IV 12.2 274 33 23 23   4 55 7 5   20   3 101 15.8 
V 2.9 178 113 35 19     6             5 12.0 
VI 1.9 962 777 23 55     28   1   12     66 11.3 
VII 4.5 335 148 8 42     12       19     106 8.2 
VIII 8.3 108 19 12 12     30       22   9 4 7.5 
IX 8.6 138 26 8       45 2     28     29 9.8 
X 5.1 294 149 5       36       4     100 10.1 
XI 9.6 920 117 7 772     11       13         
XII 12.7 64 2 6 11     14       10     21 13.1 
XIII 6.4 176 79 10 21     54       3     9 15.0 
XIV 6.9 54 15 6 18     15                 
XV 3.1 697 467 18 42     48       38     84 10.0 
XVI 2.4 971 770 33 122     38       4     4 10.0 
XVII 6.1 235 51 50 28     21             85 8.2 
XVIII 3.9 237 150 11 68     8                 
XIX 12.6 21           21                 
XX 10.6 162 26 26 29 3   46 3     13     16 12.5 
XXI 7.8 9     9                       
Total 6.0 6,564 3,098 477 1,350  3 4 564 13 6 1 209 3 12 824 12.6 
 
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific rates are excluded and the ad valorem  parts of 
alternate rates are included.  
 Based on HS 2007 nomenclature.   Source: WTO estimates based on data provided by Honduras and WTO-IDB. 
 
Chart 3.4 Honduras: Tariff elimination und er the Agreement, by HS chapter  
MFN PreferentialHonduras
05101520253035
02
04
05
0607
08
09
*10
*11
1215
16
1718
19
2021
22
2324
25
2728
30
3233
34
3538
39
4041
44
4849
64
6870
72
7376
84
8587
94
9596Average rate of duty (%)HS 01-24 HS 25-97
 
*  Includes only tariff lines su bject to the price band system. WT/REG316/1 
 
- 22 - 
 
 
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific rates are excluded and the ad valorem  parts of 
alternate rates are included. 
 Based on HS 2007 nomenclature.   Source: WTO estimates based on data provided by Honduras and WTO-IDB. 
 
3.1.4  Tariff rate quotas 
3.22.  Under the Agreement, the Parties establish tariff-rate quotas (TRQs) for a couple of 
products (Table 3.7).18 Colombia, Guatemala and Honduras apply TRQs to dog and cat food (one 
tariff line). Additionally, Colombia applies TRQs to spirits and liquors (one tariff line). El Salvador 
does not apply any TRQ. The application of the TRQs is indefinite as the Agreement does not 
specify any transition period. The quotas are subject to annual increases, except for those applied to the trade of dog and cat food between Colombia and Honduras.  
Table 3.7 Products subject to TRQs under the Agreement 
Applied 
by/to HS Code 
(description) MFN rate 
in 2010 TRQs under the Agreement 
In 
quota 
rate Out of 
quota 
rate TRQs: 
transition 
period Quantity 
in 2010 Annual 
increases 
Colombia/  
El Salvador, Guatemala, Honduras  Spirits and 
liquors  (2208901000) 15%+VC  0 15%+VC  No 12 million 
litres (total)  Yes 
Colombia/ 
Guatemala, 
Honduras Dog and cat food 
(2309109000) 20%+VC  0 20%+VC  No 2400 tonnes 
(Guatemala); 
1000 tonnes 
(Honduras) Yes 
(Guatemala); 
No  
(Honduras)  
Honduras/ 
Colombia Dog and cat food 
(23091000) 15%  0 15% No  500 tonnes No 
Guatemala/ 
Colombia Dog and cat food 
(23091000) 15% 0 15% No 1200 tonnes Yes 
VC:  Variable Component under the Price Band System. 
 
Source: Parties' schedules under the Agreement.  
3.23.  At the MFN level, Colombia applies TRQs to five tariff lines, which include products such as 
maize and cotton.19 Of these lines, only one (cotton) is liberalized under the Agreement, the rest 
are excluded. For two of the excluded lines (i.e. yellow and white maize), El Salvador benefits from 
a preferential rate under the LAIA Partial Scope Agreement No. 8 with Colombia. At the MFN level, 
El Salvador applies TRQs to cheddar cheese, only.20 Guatemala applies TRQs to two lines, yellow 
maize and rice.21 Honduras applies TRQs to three product lines which correspond to sugar and 
sugar confectionery.22 All the lines subject to TRQs at the MFN level by the Northern Triangle are 
excluded from the Agreement.  
3.24.  The Parties agree to implement and administer  their TRQs in accordance with Article XIII of 
the GATT 1994 and the Import Licensing Agreemen t. They also commit to ensure that TRQ 
administration procedures are transparent, made available to the public, timely, 
non-discriminatory, market-oriented and do not constitute a barrier to trade. In addition, the Parties shall not condition the application for, or use of, an in-quota quantity on the re-export of 
an agricultural good (Article 3.16). 
                                               
18 Lines subject to a tariff-rate quota fall un der category H in the Parties' schedules.  
19 These lines are: 0404101000 (whey); 1005901100 (yellow maize); 1005901200 (white maize); 
1201009000 (soya beans) and 5201003000 (cotton). 
20 The tariff line for this product is 04069020. 
21 The lines are: 10059020 (yellow maize) and 10061090 (rice). 
22 These lines are: 17011100 (cane sugar), 170410 00 (Chewing gum) and 17049000 (other Sugar 
confectionery). WT/REG316/1 
 
- 23 - 
 
3.1.5  Price-band system 
3.25.  Colombia maintains a price band system, which covers 156 agricultural and chemical 
products (at the 10-digit level) (see Table A2.1). Under this mechanism, a product is subject to an ad-valorem duty (variable component) in addition to its current duty (fixed component) if its CIF 
price (reference price) is lower than a "floor" pr ice (Decree No 547 of 1995). A tariff reduction can 
also apply if the CIF price (reference price) is higher than a "ceiling" price. Of these lines, 131 are excluded
23 from liberalization under the Agreement and 16 will have their fixed component 
removed gradually or upon the Agreement's entry into force. The treatment of the remaining 
9 lines is different depending on the Party. For El Salvador, one more line will be excluded, and 8 will benefit from a preferential rate for th e fixed component under the LAIA Partial Scope 
Agreement (No. 8) between El Salvador and Colomb ia. For Guatemala, 7 additional lines will be 
excluded, tariffs on one line will be removed gradually (groats and meal of wheat) and another is 
subject to a quota (i.e. animal food). For Honduras, 8 additional lines will be excluded and one is subject to a quota (i.e. animal food) (see Section 3.1.4). Of the lines subject to the price band 
system, only one (i.e. oleic acid) had an MFN duty equal to zero in 2010. 
3.26.  Honduras also applies a price band system for seven products (at the 8-digit level), namely 
yellow maize, white maize, grain sorghum, maize flour and other worked grains (Table A2.2). All 
are excluded under the Agreement. 
3.1.6  Further negotiations 3.27.  The Parties agree to review the Agreement and undertake new negotiations after three 
years following the Agreements' entry into forc e. These negotiations would cover tariff and 
non-tariff measures, as well as rules of origin or any other matter related to the Agreement's 
objectives. In case products initially excluded are partially or fully liberalized, the Parties shall consider the adoption of a special safeguard mechanism (Article 21.7). 
3.2  Rules of origin 
3.28.  In Chapter 4 on Rules of Origin, the Parties characterize originating goods and specify the 
requirements a good must meet to acquire originating status. For purposes of this Chapter, the 
WTO Customs Valuation Agreement shall apply to domestic transactions, as they would apply to 
international transactions. In the event of any inconsistency between Chapter 4 and the WTO Customs Valuation Agreement, Chapter 4 will prevail (Article 4.2).  
3.2.1  Definitions and main principles 
3.29.  Unless specified otherwise in Chapter 4, a good qualifies as originating if it is:  
 wholly obtained or produced in one or more Parties (as described in Article 4.1); 
 produced in one or more Parties, using only originating materials in accordance with 
Chapter 4; 
 produced in one or more Parties using non-originating materials that meet the change in 
tariff classification (CTC), the regional value content (RVC) or any specific rule of origin 
set out in Annex 4.3; and that the good satisfies all other applicable requirements 
(Article 4.3).  
3.30.  Most of the rules specified in Annex 4.3 contain a CTC requirement, except for a few cases 
where a RVC
24 can replace the CTC. The CTC rules require, depending on the product, a change in 
the tariff classification at the Chapter (HS 2 digit) , Heading (HS 4 digit) or Subheading (HS 6 digit) 
level, but also from Heading to Subheading, Chapter to Subheading, and from Chapter to 
Heading.25 In addition to the CTC requirement, certain products, in particular in chapters 25-97, 
                                               
23 Of the 131 lines, one is only partially excluded (i.e. product line 1207999900). 
24 The formula to compute the RVC is set in Article 4.7. For vehicles, the RVC formula is based on the 
good's net cost instead than in its transaction value.  
25 For products in Chapter 1-24, the CTC requirem ent mainly involves a change from a Chapter to 
Heading or a change from a Chapter to a subheading; and in very few cases a specific manufacturing condition WT/REG316/1 
 
- 24 - 
 
 also need to meet an RVC, a specified weight for non-originating materials, or a specific 
manufacturing condition. For some products the rules are still to be negotiated, in particular for 
wood pulp (chapters 47-49) and textiles and clothing (chapters 50-63). For textiles and clothing, only Colombia and Honduras have set their specific rules of origin (Article 4.17 and Annex 4.17). 
These rules require in general a CTC at the Heading level (HS 4 digit) or from Chapter to 
Subheading, and from Chapter to Heading. In additi on to the CTC condition, certain products also 
require a specific manufacturing condition, such as the execution of specific operations. These 
rules are to be in force pending the implementati on of extended cumulation (see paragraph 3.32). 
For El Salvador and Colombia, only the rules for two product lines (at the 6-digit level) have been included in the Agreement, the rest are subject to future negotiations. As of December 2013, for Guatemala and Colombia, no rules have been negotiated. For El Salvador and Colombia, some 
rules have been negotiated but have not been approved by the Administrative Commission yet. 
3.31.  The Agreement allows cumulation between th e Parties. Originating materials of a Party used 
in the production of a good in the territory of another Party, are therefore to be considered as 
originating in this other Party. A good qualifies as originating if produced in one or more Parties 
provided that it satisfies the requirements of Ar ticle 4.3 and all other requirements in Chapter 4 
(Article 4.6). For cumulation purposes, goods that are excluded from liberalization shall be 
considered as non-originating until they are included in the liberalization process.  
3.32.  The Agreement also foresees discussions fo r the implementation of extended cumulation 
(diagonal cumulation) for textiles and clothing  (HS Chapter 50-63), under which textiles and 
clothing produced in a third-party will be considered as originating under the Agreement, provided 
that each Party has a trade agreement with the third-party. Discussions on its implementation 
were to take place within 90 days following the Agreement's entry into force. As of December 2013, the implementation of the extended cumulati on for textiles and clothing was still pending. 
Pending its implementation, Colombia and Honduras will apply on their bilateral trade their existing 
rules of origin (Annex 4.17). According to these rules, cotton yarns
26, yarn of polyesters27 and yarn 
of artificial staple fibers28 from Mexico and the US are to be considered as originating from 
Honduras and Colombia if used in a good trad ed between these two Parties. Yarns of nylon29 from 
Mexico, Israel and Canada are also to be considered as originating from Honduras and Colombia if used in a good traded between these two Parties under the Agreement (Annex 4.17). 
3.33.  For other products, the Parties can hold consultations with the concerned non-parties in 
order to implement extended cumulation with them, provided that each Party has a trade 
agreement with these non-parties. 
3.34.  The Agreement includes a  de minimis  provision, under which a good qualifies as originating 
if the value of all non-originating materials used in its production which do not satisfy the specific 
rules of origin set in Annex 4.3 do not exceed 10% of the transaction value of the good (Article 4.8) (or such materials do not exceed 10% of the weight of the fibres or yarns used in the 
production of a good in the case of textiles and clothing). The de minimis  provision does not apply 
to:  
 non-originating materials used in the production of goods falling in HS Chapters 1-24, 
unless these materials are classified in a different subheading (6-digit level) than the 
good for which the origin is being determined.  
 non-originating materials in Chapter 15 (Animal or vegetable fats and oils) used in the 
production of palm oil (HS code 1511), kern el palm or babassu crude oil (HS code 
151321 and 151329).  
3.35.  Chapter 4 also lists the operations that do not confer originating status to a good, namely 
(a) those that guarantee goods preservation; (b) simple operations such as cleaning, washing, 
                                                                                                                                               
also applies. For products in chapter 25-97, except for chapters 50-63 (textiles), the CTC requirement mainly 
refers to a change between subheading, between headin gs and to a change from a Heading to a Subheading.  
26 HS code 5205-5206. 
27 HS code 540220, 540233, 540242, 540243, 540252 and 540262. 
28 HS code 5509-5510. 
29 HS code 540210, 540231, 540232, 540241, 540251 and 540261. WT/REG316/1 
 
- 25 - 
 
division, grouping, packing, unpacking or repackagin g; (c) assemblage of goods; (d) water dilution 
operations, ionization and salting that do not alter the characteristics of the products; and (e) slaughter of animals (Article 4.4).  
3.36.  It also indicates how to deal with indirect materials and goods in transit in the determination 
of origin. Indirect materials shall be considered as originating materials regardless of where they 
are produced (Article 3.5).
30 Originating goods in transit or transhipment are to maintain their 
status provided that they do not undergo any further processing in the territory of a non-party 
other than preservation, unloading, or reloading, and that they remain under customs control 
while outside the territories of the Parties (Article 4.14). In addition, Chapter 4 specifies how to determine the (origin) status of fungible goods and materials; sets or assortments of goods; accessories, spare parts and tools; packaging materials and containers for retail sale; and packing 
materials and containers for shipment (Articles 4.9 to 4.13). 
3.37.  Under the Agreement, the Parties establish a Committee on the Rules of Origin, which will 
meet once a year or more if requested by the Parties or the Administrative Commission 
(Article 4.15). As of December 2013, the Committee had held several meetings.  
3.2.2  Administration of the rules of origin  3.38.  The procedures for the administration of the rules of origin are described in Chapter 5. To 
claim preferential treatment under the Agreement, importers must present a certificate of origin 
(hard copy or electronic),
31 except for imports with a value lower than US$1,50032, or goods 
benefitting from a waiver by the importing Party (Articles 5.2-5.3). In accordance with the Agreement, the Parties establish a single format for the certificate of origin, which was adopted in 
July 2010 and has been in force since September 2010.
33 The certificate of origin will be valid for 
one year from the date of issue and apply to a single shipment of one or more goods to one Party or to multiple shipments of the same good (Article 5.2). 
3.39.  The Agreement also foresees procedures to verify the accuracy of the certificate of origin 
(Article 5.7), including information requests, questionnaires and verification visits. Finally, it includes provisions on the confidentiality of the information collected (Article 5.8), the review and 
appeal of the determinations of origin (Article 5.9), and the implementation of uniform regulations 
regarding the interpretation, application and administration of Chapter 4 (Article 5.10). 
3.3  Export duties and charges,  and quantitative restrictions 
3.40.  Export taxes are prohibited under the Agreement, except for those applied on Colombian 
coffee (Article 3.11 and Annex 3.11). 
3.41.  The Agreement also forbids the adoption or maintenance of any measure that prohibits or 
restricts exports of the other Party, except as provided in Article XI of the GATT 1994 and 
Annex 2.2. Such measures include export price requirements, except as permitted in the 
enforcement of countervailing and antidumping measures; and voluntary export restraints inconsistent with Article VI of the GATT 1994 (Article 3.7). 
3.4  Regulatory provisions on trade in goods 
3.4.1  Standards 3.4.1.1  Sanitary and phytosanitary measures 3.42.  In Chapter 9 on Sanitary and Phytosanitary (SPS) measures, the Parties re-affirm their 
rights and obligations under the WTO SPS Agreement. In case of any dispute regarding SPS 
                                               
30 Indirect materials are goods used in the production , testing, or inspection of another good but that 
are not physically incorporated into the good, or goods us ed in the maintenance of buildings or the operation of 
equipment associated with the production of another good, including fuel and energy (Article 4.1). 
31 The electronic format will be implemented no la ter than three years following the Agreement's entry 
into force.  
32 Or its equivalent amount in na tional currency. The importing Part y can establish a larger amount. 
33 Decision n°3 by the Administrative  Commission of the Agreement.  WT/REG316/1 
 
- 26 - 
 
 measures, the Parties will have recourse to the Dispute Settlement Mechanism (DSM) established 
under the Agreement. The Parties can refer to the WTO Dispute Settlement Mechanism for issues 
specified in the WTO SPS Agreement (Article 9.2). They also establish a Committee on SPS measures which shall meet at least once a year (Article 9.12). The Committee is in charge, among 
others, of promoting the implementation of Chap ter 9 and the improvement of the Parties' SPS 
conditions. As of December 2013, the Committee had already met several times.  
3.43.  Chapter 9 includes provisions on harmonization (Article 9.4), equivalence (Article 9.5), risk 
assessment (Article 9.6), adaptation to regional conditions (Article 9.7), SPS procedures and 
certification (Article 9.8), technical co-operation (Article 9.9) and transparency (Article 9.10). In most cases, these provisions are more detailed than those in the WTO SPS Agreement. 
3.44.  In the area of harmonization and equivalence, the Parties can develop under the Agreement 
criteria and procedures for the harmonization of SPS measures (Article 9.4) and negotiate 
equivalence agreements to facilitate trade (Article 9.5).  
3.45.  In risk assessment, the Agreement lists the factors to be taken into account when assessing 
risk and establishing the level of protection. When relevant scientific evidence is insufficient to 
carry out risk assessment, the Parties can provisionally adopt SPS measures based on available pertinent information and on information provided by the exporting Party. The implementation or 
modification of any provisional measure shall be notified immediately to the other Party. In case 
the result of the risk assessment involves non-acceptance of the import, the Party shall notify in writing the scientific basis for its decision. When a Party considers that a SPS measure by the other Party is not based on relevant international standards, guidelines or recommendations; or 
such standards, guidelines or recommendations do not exist, the other Party shall provide an 
explanation, upon request of the Party (Article 9.6).  
3.46.  To obtain recognition that an area is free from a specific pest or disease under the 
Agreement, the Party shall send a request to the other Party and provide relevant scientific and 
technical information. The Party that receives the request can carry out inspections, testing and other verification procedures. If the request is rejected, it shall notify in writing the technical 
reasons for its decision (Article 9.7). 
3.47.  Regarding control, inspection and approval  procedures, the Agreement provides that when a 
Party requests for the first time to inspect a production unit or production process of the other Party, the competent authority of the importing Party shall, upon review and evaluation of 
necessary documents, establish a date for the inspection which shall be carried out within 
100 days. Once the inspection is completed the im porting Party shall notify the results within 
60 days following the end of the inspection. The certificates of a production unit or production 
process will be valid according to the Parties' le gislation and shall be renewed 90 days before it 
expires (Article 9.8 and Annex 9.8). 
3.48.  With respect to transparency, the Parties will notify each other of their SPS measures, as 
well as the application of an emergency measure or any change to existing measures in 
accordance with the WTO Agreement. Changes to exis ting SPS measures are to be notified at least 
60 days before the measure enters into force. Changes related to the Parties' animal health and phytosanitary situation, such as the outbreak of a disease, shall be notified within 24 and 72 hours 
respectively following the confirmation of the change (Article 9.10).  
3.49.  The Parties agree to cooperate and provide each other technical assistance for the 
application of Chapter 9 and the WTO SPS Agreem ent (Article 9.9); and to enter consultations 
whenever they have doubts regarding the application of Chapter 9 (Article 9.11).  
3.4.1.2  Technical barriers to trade 3.50.  Chapter 10 on Technical Barriers to Trade (TBT) applies to the preparation, adoption and 
application of
 all standards, technical regulations, conf ormity assessment procedures, metrology, 
approval and authorization procedures for the access of goods into the Parties' territory. The Chapter does not apply to SPS measures and gove rnment procurement conditions (Article 10.3). 
Some of the provisions under the Agreement mi rror those in the WTO TBT Agreement (hereafter 
the WTO Agreement), while others are more detailed or new. In case of a dispute regarding any WT/REG316/1 
 
- 27 - 
 
matter under Chapter 10, the Parties will have recourse to the Agreement's Dispute Settlement 
Mechanism. For issues covered by the WTO TBT Agreement, the Parties will use the WTO Dispute 
Settlement Mechanism. 
3.51.  In Chapter 10, the Parties reaffirm their rights and obligations under the WTO TBT 
Agreement (Article 10.4). Like in the WTO Agreement (Article 2), they also commit to use relevant 
international standards as a basis for the preparation and application of their standards and technical regulations, but also for preparat ion and application of conformity assessment 
procedures, approval and authorization procedures , and metrology, except when such standards 
would not be an effective means to fulfil the Parties' objectives (Article 10.6). Regarding the participation of Parties in the elaboration of TBT measures, the provision in the Agreement is more detailed and specifies that they must allow the participation of nationals of the other Party in the 
development of standards and technical regulations, conformity assessment procedures, and 
metrology in the same way as for their own nationals and those of any other country. When a Party rejects a good from another Party because it does not comply with a technical regulation or 
mandatory standard, it shall notify the reason for its decision to the importer (Article 10.5). 
3.52.  The Parties further commit, to the greatest extent, to harmonize their standards, technical 
regulations, metrology measures, and related proced ures without reducing the level of safety or 
protection of human, animal or plant life or health, or the environment (Article 10.7). 
3.53.  With regard to technical regulations, the language in the Agreement is stronger than that 
used in the WTO Agreement (Article 2). In the Agreement, each Party commits to accept the technical regulations of the other Party as equivalent to its own.
34 If a Party does not accept them, 
it shall, at the request of the other Party, expl ain the reasons for such refusal. Upon request, a 
Party shall also explain its decision if it accepts the technical regulations or assessment procedures of a non-party as equivalent to its own but it does not accept those of a Party (Article 10.8). 
3.54.  With regard to conformity assessment pr ocedures, the provisions in the Agreement are 
more detailed than those in the WTO Agreement (Article 6). Like in the WTO Agreement, the Parties shall accept the results of conformity asse ssment procedures carried out in the territory of 
the other Party, provided that those procedures offer an assurance of conformity equivalent to its 
own procedures. Yet, the Agreement also specifies th at if the Party does not accept the results of a 
conformity assessment conducted in the other Party and upon the request of that Party, it should 
explain its decision. The Parties will also recogniz e the conformity assessment bodies of the other 
Party on the same terms as accorded to such bodies in their own territory and can use the 
infrastructure of the accredited bodies of the Parties for the conformity assessment procedures. Finally, upon request of any of the Parties, the Parties will initiate negotiations for a recognition 
agreement of the results of their respective co nformity assessment procedures (Article 10.9).
35 
3.55.  Unlike the WTO TBT Agreement, the Chapte r also includes a provision on approval and 
authorization procedures (Article 10.10). Under this provision, each Party will prepare, adopt and 
apply its approval and authorization procedures in order to ensure that goods imported from 
another Party are treated no less favourably than its own goods or goods from non-parties. The approval and authorization procedures must be quick and non-discriminatory and its requirements shall be publicly available. The Parties shall establish a system to review claims relating to the 
procedures and apply corrective measures. 
3.56.  Additional provisions on TBT describe the procedures for notifications and the exchange of 
information with respect to any proposed standard, technical regulation or conformity assessment 
procedures when no international standard exists or the measure is inconsistent with international 
standards (Article 10.12). The Agreement also provides for the traceability of its standards and calibration of its measuring instruments (Article 10.11); the identification of contact/enquiry points 
(i.e. information centres) (Article 10.13); technica l co-operation (Article 10.14); and consultations 
                                               
34 Under the WTO Agreement, the Parties have no obligation to accept the technical regulations of the 
other Party as equivalent. Article 2, paragraph 2.7 states  that "Members shall give positive consideration to 
accepting as equivalent technical regulations of other Members". 
35 Under the WTO Agreement (Article 6, paragraph 6. 3), "Members are encouraged, at the request of 
o t h e r  M e m b e r s ,  t o  b e  w i l l i n g  t o  e n t e r  i n t o  n e g o t i a t i o ns for the conclusion of agreements for the mutual 
recognition of results of each others  conformity assessment procedures."  WT/REG316/1 
 
- 28 - 
 
 when a measure by the other Party is considered to be inconsistent with Chapter 10 
(Article 10.15).  
3.57.  The Parties further established a Committee on TBT (Article 10.16), whose functions include 
monitoring the implementation of Chapter 10. The Committee will meet at least once a year. As of 
December 2013, the Committee had already met several times to prepare its rules of procedures, 
as well as its work plan.  
3.4.2  Safeguard mechanisms 
3.58.  Unless otherwise specified in Chapter 7 of the Agreement, safeguard measures shall be 
applied according to the Parties legislation, Article XIX of GATT 1994 and the WTO Agreement on Safeguards (Article 7.2).  
3.4.2.1  Global safeguards 
3.59.  The Agreement does not confer any additional rights or obligations to the Parties with 
regard to actions taken under Article XIX of GATT 1994 and the WTO Agreement on Safeguards, except that imports from the other Party can be ex cluded from the imposition of global safeguards 
if they are not a substantial cause of the serious injury or threat (Article 7.8). 
3.60.  The same good cannot be subject simultaneously to a bilateral and a global safeguard 
(Article 7.8). 
3.4.2.2  Bilateral safeguards 
3.61.  The Parties can apply bilateral safeguards during a transition period
36 if as a result of the 
trade liberalization under the Agreement the impo rts of a good cause to the importing Party 
serious injury or a threat thereof to sectors producing a like or directly competitive good. The 
safeguard will consist of a suspension of further tariff reductions under the Agreement or the 
increase of tariffs to a level that will not exceed the MFN applied tariff in effect at the time the action is taken (Article 7.3). The maximum duration of a bilateral safeguard is four years, including 
an extension of one year. The measure can be extended only once but be applied twice to the 
same good provided that the non-application period is at least half of the duration of the first bilateral measure (Article 7.4). Compared to the WTO Agreement on Safeguards (Article 7), the 
period of application of a safeguard measure under the Agreement is shorter. Under the WTO 
Agreement, the application period is a maximu m of eight years, when taking into account 
provisional and initial applications, as well as extensions.
37 As for the non-application period, under 
the WTO it must be equal to the first application period and to at least two years. In contrast, 
under the Agreement the minimum period of non-application can be shorter than two years.  
3.62.  Upon termination of the bilateral safeguard, the applied tariff shall not be higher than the 
rate that, according to the Party's Schedule, would have been in effect one year after the initiation 
of the measure. From 1 January of the year foll owing the termination of the measure, the applied 
rate shall be that established in the Parties' tariff schedules (Article 7.4). The Parties can apply a safeguard measure only if an investigation determines so. The investigation will be carried out in 
accordance with the WTO Agreement on Safeguards (Articles 3 and 4.2) (Article 7.5). 
3.63.  The Agreement also includes an article on provisional safeguards (Article 7.6), which mirrors 
that of the WTO Agreement on Safeguards (Artic le 6). Like the WTO Agreement, the Agreement 
permits the application of a provisional safeguard if a delay in its application would cause damage 
difficult to repair and if a preliminary investigation showed that the increased imports have caused 
or are threatening to cause serious injury to a domestic industry. The provisional safeguard can be applied for a maximum of 200 days and will take the form of tariff increases. The funds resulting 
from such increases will be refunded if the final investigation concludes that the increased imports 
are not the cause of or do not threaten to cause any serious injury to a domestic industry. 
                                               
36 The "transition period" is a 10-year period starti ng from the date of the entry into force of the 
Agreement. For goods with tariff elimin ation schedules longer than 10 years, the transition period shall be the 
period of their tariff elimination (Article 7.1). 
37 The duration of the initial safeguard is  maximum four years but can be extended. WT/REG316/1 
 
- 29 - 
 
3.64.  Each Party will notify the other Party of the initiation of a bilateral safeguard investigation, 
as well as of the application (or extension) of a definitive or provisional measure. Upon request by the Party whose good is subject to a safeguard proceeding, the Parties will hold consultations regarding the safeguard notification and investigation (Article 7.7). 
3.4.2.3  Safeguards related to the balance of payments 
3.65.  The Parties may maintain safeguards for balance of payments reasons (See Section 5.3). 3.4.2.4  Special safeguards 
3.66.  There are no provisions in the Agreement regarding special safeguards. However, the 
Agreement includes an evolutionary clause, whic h provides, upon request by a Party, for the 
negotiation of special safeguards if as a result of new negotiations tariff lines that were initially excluded, are to be liberalized (fully or partially) (Article 21.7).  
3.4.3  Anti-dumping and countervailing measures 
3.67.  Under the Agreement, the Parties maintain their rights and obligations under WTO 
Agreements regarding the application of antidumping and countervailing measures (Article 8.1).  
3.4.4  Subsidies and State aid 
3.68.  The Parties commit to eliminate export subsidies on any agricultural good destined for the 
other Party (Article 3.15).  
3.69.  The Agreement does not contain provisions on State aid.  
3.4.5  Customs-related procedures 3.70.  Chapters 6 set out the provisions on trade facilitation (and customs procedures). 3.71.  The Parties commit to publish on the internet, their respective laws, regulations, and 
administrative procedures and maintain inquiry points concerning customs matters (Article 6.1). 
They also agree to issue advance rulings regarding a future shipment, upon request of an importer 
or exporter (Article 6.10). These provisions are to be implemented two years following the 
Agreement's entry into force (Article 6.12). As of  December 2013, only the implementation of the 
advance rulings was pending for some of the Parties. 
3.72.   Each Party shall maintain or adopt simplified customs procedures to facilitate their bilateral 
trade. In particular, goods should be released, to  the extent possible, within 48 hours of arrival. 
The Parties will also allow importers to withdraw  goods from customs before and without prejudice 
to the final determination by its customs authority of the applicable customs duties and charges. The Parties can however request a guarantee in the form for instance of a deposit covering all 
charges and duties related to the goods (Article 6.2). The Parties agree to implement these 
provisions in one year following the entry into force of the Agreement (Article 6.12). As of December 2013, the implementation of these provisions was still pending for some of the Parties. 
3.73.  Each Party shall endeavour to use informat ion technology that expedites procedures for the 
release of goods (Article 6.4), as well as risk management systems to target high-risk goods and simplify the clearance and movement of low-risk goods (Article 6.3). These provisions are to be 
implemented in two years of the Agreement's entry into force (Article 6.12). The Parties indicated 
that they have adopted computerized systems in order to comply with these provisions. 
3.74.  In the area of co-operation, the Parties commit to notify each other of any change in their 
regulations affecting the Agreement's implementa tion; exchange information to prevent illegal 
activities; and to provide mutual technical assistance to improve compliance with their customs 
legislation. In addition, they agree to sign an Agr eement of Mutual Assistance in the month 
following the signing of the Agreement (Article 6.5) . As of December 2013, the negotiations of this 
agreement were still ongoing. WT/REG316/1 
 
- 30 - 
 
 3.75.   The Parties shall also adopt or main tain expedited customs procedures for express 
shipments. In particular, goods shall be released within 6 hours following the presentation of the 
relevant documents, provided that the shipment has arrived (Article 6.7). These provisions were to be implemented one year following the Agreements' entry into force (Article 6.12). As of 
December 2013, some provisions were still to be implemented by some of the Parties. 
3.76.  The Chapter also includes provisions on information confidentiality (Article 6.6), the review 
and appeal proceedings relating to determinations on customs matters (Article 6.8) and the 
imposition of penalties for violation of laws or regulations relating to the Agreement (Article 6.9).  
3.77.  Finally, the Parties establish a Committee on Trade Facilitation, which is to meet at least 
once a year. As of December 2013, several meetings had already taken place. 
3.5  Sector-specific provisions on trade in goods 
3.78.  The Parties agree to establish a Committee on Agriculture, which will meet at least once a 
year to ensure the implementation of agriculture related provisions (Articles 3.17). As of December 2013, no meeting had been held.
38 Besides this provision and those regarding agricultural export 
subsidies and quotas administration (Articles 2.15-2.16), there are no other sector-specific 
provisions on trade in goods in the Agreement. 
4  PROVISIONS ON TRADE IN SERVICES 
4.1  Scope and definitions 
4.1.  Trade in services is governed by Chapter 13 (Cross-Border Trade in Services) together with 
Chapter 12 on investments and Chapter 15 on  temporary entry for business persons. These 
Chapters are complemented by Annexes I, II and III, which contain the Parties' lists of 
reservations. Annexes I and II contain reservat ions for existing and future measures, and 
Annex III the exceptions with respect to the MFN principle. Financial services are excluded from the Agreement, they are neither covered by Chapter 12 nor 13.  
4.2.  Chapter 13 applies to measures by a Party affecting cross-border trade in services by service 
suppliers of the other Party (Article 13.2). The Agreement's definition of cross-border trade in 
services covers GATS modes of supply 1, 2 and 4 (Article 13.1). Mode 3 is treated in Chapter 12 
and defined as the supply of a service in the territory of a Party through an investment. Chapter 
13 does not apply to: 
 financial services; 
 government procurement by a Party or State entity; 
 air transport services and related support services except for aircraft repair and 
maintenance services, specialty air services
39 and computer reservation system services; 
 services supplied in the exercise of governmental authority40; and  
 subsidies or grants by a Party, including government-supported loans, guarantees and 
insurances. 
4.3.  The exclusion relating to services in air transport shows some similarities but also differences 
to that found in the GATS. The Agreement, like the GATS, covers aircraft repair and maintenance 
services, and computer reservation system services. In contrast it does not apply to the sale and marketing of air transport services, covered by th e GATS, but does apply to specialty air services, 
excluded by the GATS. 
                                               
38 The Parties indicated that some discussions relating  to agricultural goods have taken place under the 
Committee on trade in goods.  
39 Specialty air services are defined as air services that do not involved transportation (Article 13.1). 
40 Such services are define d exactly as in the GATS. WT/REG316/1 
 
- 31 - 
 
4.4.  The exclusion of services supplied in the ex ercise of governmental authority is as in the 
GATS.  
4.5.  Contrary to the Agreement, government procurement is not totally excluded under the GATS 
(Article XIII), but exempted from the applicatio n of market access, MFN and national treatment 
provisions. Regarding subsidies, the GATS does not contain any specific rule. 
4.6.  Chapter 12 on investments applies to measures by a Party affecting (a) the investors of the 
other Party (as far as their investments are concerned); (b) covered investments; and (c) all 
investments in the territory of the Party with respect to performance requirements and 
environmental measures (Article 12.2).41 It does not apply to financial services. In case of any 
inconsistency between this Chapter and another Chapter, the latter will prevail to the extent of the inconsistency (Article 12.3). Provisions on senior management and board of directors and national 
and MFN treatment do not apply to measures listed in their reservations lists (i.e. Annex I, II and 
III), government procurement, subsidies or gran ts by a Party (Article 12.12). Additionally, 
performance requirements do not apply to measures listed in the reservation lists. 
4.7.  Chapter 15 on the temporary entry of business persons aims at facilitating the movement of 
business persons (relating to trade in goods, serv ices and investments) on a reciprocal basis and 
in a transparent manner (Chapter 15.2). It does not apply to measures affecting natural persons 
seeking access to the labour market of a Party and to measures regarding nationality, residence or 
employment on a permanent basis (Article 15.2) (see Section 4.3.4).  
4.2  Denial of benefits 4.8.  Prior to notification and consultations, a Party can deny the benefits of Chapter 13 to a 
service supplier of the other Party if the supplier is a company owned or controlled by nationals of 
a non-party, which has no substantial business activities in the territory of the other Party. It can also deny these benefits if the supplier is a company, owned or controlled by nationals of the 
denying Party that has no substantial business operations in the territory of the other Party 
(Article 13.12).
42  
4.9.  Prior to notification and consultations, a Party can deny the benefits of Chapter 12 to a 
company of the other Party, and its investments, if the company is owned or controlled by 
investors of a non-party and is not engaged in su bstantial business activities in the other Party. 
These benefits can also be denied to a company of the other Party and to its investments, if the company is owned or controlled by investors of the denying Party, and does not have substantial 
business activities in the territory of the claiming Party (Article 12.11).  
4.3  General provisions on trade in services 4.3.1  Market access 
4.10.  The provision on market access under the Ag reement is almost identical to that of GATS 
Article XVI, except that it does not prohibit measures limiting the participation of foreign capital. The other five limitations specified in this provision are the same as those in GATS Article XVI.
43 
These limitations cannot be maintained or adopted by the Parties unless otherwise specified in 
their reservations (Article 13.5).  
4.3.2  National treatment and MFN 4.11.  The Parties agree to grant MFN and national treatment to: 
                                               
41 Provisions on market access (Article 13.5), national  regulation (Article 13.8) and transparency in the 
application of regulations (Article 13. 9) also apply to measur es affecting the services  provided by a covered 
investment (Article 13.2). 
42 The Agreement does not contain a definition  for "substantial bu siness activities". 
43 Under the Agreement, like under the GATS, the Parties cannot apply measures that: (i) limit the 
number of service suppliers, (ii) the total value of service transactions or assets, (iii) the total number of 
service operations or the total quantity of services output, (iv) the total number of natural persons that can be 
employed in a particular service sector, or that a servic e supplier can employ; or that (v) restrict or require 
specific types of legal entities or joint ventures to supply a service. WT/REG316/1 
 
- 32 - 
 
 
 services and service providers of the other Party (Articles 13.3 and 13.4); 
 investors of the other Party and covered investments with respect to the establishment, 
acquisition, expansion, management, conduct, operation and sale or other disposition of investments in its territory (Articles 12.5 and 12.6). 
4.12.  Investments are not granted MFN treatmen t with respect to access to dispute settlement 
mechanisms in other international investment agreements (Article 12.6). 
4.3.3  Commercial presence 
4.13.  The Parties agree that they will not require a service provider of the other Party to establish 
or maintain a representative office or other form of company, or be resident, in their territory in 
order to supply a service (Article 13.6).  
4.3.4  Movement of natural persons 
4.14.  Chapter 15 describes the conditions for the temporary entry of business persons in the 
Parties' territory. It does not apply to measures affecting natural persons seeking access to the employment market of a Party and measures regard ing nationality, residence or employment on a 
permanent basis (Article 15.2). Under the Agreement,  the definition of natural persons covers only 
the nationals of a Party (Article 15.1) which is in line with the definition used in the GATS.
44 
Conditional on compliance with their security and immigration requirements and according to 
Annex 15.4, the Parties commit to authorize the temp orary entry of certain: (a) business visitors, 
(b) traders and investors, (c) intra-company tran sferees and (d) professionals. Tables 4.1-4.2 
detail the scope of application for each category , the requirements, and the permitted length of 
stay. In all four cases, an authorization is required prior to the entry of the business person.   
Table 4.1 Authorized business persons by the Parties 
Authorized categories and 
scope of application  Specific requirements 
Business visitors   
Business visitors who seek to 
engage in one of the business 
activities listed in Appendix 1, 
Chapter 15.a The Parties will grant an entry authorization and issue the necessary 
documents provided that the busine ss person (i) presents proof of 
nationality; (ii) presents documents describing the activity to be carry 
out and the purpose of the entry; and (iii) demonstrates that the 
proposed business activity is international in scope and that the business 
person is not seeking to enter the local labour market.  
Traders and investors   
Traders and investors who have a 
supervisory or executive position 
or with specialized knowledge  
  The Parties will grant an entry authorization and issue the necessary 
documents, provided that the business person seeks to (i) carry on 
substantial trade in goods and services principally between the involved 
Parties or (ii) establish, develop, administer or provide advice or key 
technical services to the operation of an investment to which the 
business person or its company has committed, or will commit, a 
substantial amount of capital.b 
Intra-company transferees   
Intra-company transferees who 
seek to work as an executive, 
manager or a specialist in a 
company or its subsidiaries. The Parties will grant an entry authorization and issue the necessary 
documents provided that the business person has been employed by the 
enterprise in question for at least one year prior to the application for 
admission. The Parties can require the approval of the work contract by 
the competent authority, as a condition for the authorization of 
temporary entry. 
Professionals   
Professionals who have a pre-
arranged work contract in a 
company to provide its services. The Parties will grant an entry authorization and issue the necessary 
documents provided that the busine ss person presents (i) proof of 
nationality and (ii) documents demonstrating that the business person is 
seeking to enter the other Party to provide pre-arranged professional 
services the purpose of the entry.  A Party can also require minimum 
academic records according to its national legislation. 
                                               
44 Under the GATS, natural persons cover only nation als as neither Party has made any notification 
under GATS Article XXVIII(k) to include reside nts in the definition of natural persons. WT/REG316/1 
 
- 33 - 
 
a The activities in Appendix 1 include attending consultations, conducting research, purchasing and 
production management personnel, marketing re searchers and analysts, sales representatives, 
customs brokers, after-sales service personnel, and certain general services. 
b The Agreement does not provide for a defini tion of "substantial amount of capital". 
 
Source: Chapter 15 of the Agreement. 
 
Table 4.2 Length of stay of bu siness people under the Agreement 
Party Length of stay of any type business person  
Colombia One year (renewable)  
El Salvador  90 days (renewable and extendable up to one year) 
Guatemala 180 days (renewable only once) 
Honduras 90 days (renewable) 
 
Source: Chapter 15 of the Agreement. 
 
4.15.  The Parties' commitments in mode 4 are in general broader and more detailed than those in 
their GATS schedules. The Agreement covers a larg er number of categories of business people and 
provides details on the length of stay. 
4.16.  Under the GATS, Colombia allows the entry and temporary stay of managers, legal 
representatives and technical specialists, except for activities falling in the category of professional 
services.45 Colombia also applies nationality restrictions for the back-office and managerial staff of 
firms with more than ten employees. Under the Ag reement, this reservation continues to apply 
(see Section 4.4.1.1). Moreover, Colombia also lists in the Agreement a reservation for tourism 
services, which requires that to provide travel agencies and tour operator services, foreigners 
must be domiciled in Colombia. This reservation applies to mode 4, only, and does not apply to 
tourist guides.  
4.17.  Under the GATS, all Northern Triangle count ries allow employers to hire foreigners up to 
10% of their staff and apply wages restrictions. In addition, Guatemala and Honduras allow the temporary entry of senior and specialized staff in connection with a company or subsidiaries 
(i.e. commercial presence) as long as they contribute to the training of national personnel. 
Honduras also applies restrictions on wages, the language skills of managers and supervisors and on the participation of foreign staff in trade unions. Finally, El Salvador prohibits foreigners from 
holding the positions of administrator, director, manager or representative of small companies in 
trade, industry or service sectors. Under the Ag reement, all Northern Triangle countries remove 
the restriction on staff wages and only El Salvador maintains the restriction on the share of foreign 
staff in companies.
46 
4.18.  For issues regarding the interpretation and application of Chapter 15, Parties can have 
recourse to the Agreement's dispute settlement in Ch apter 18, except in the case of a refusal of a 
temporary entry permit. In that event, a dispute settlement procedure cannot be initiated, unless 
the case is a pattern of practice and the business person has exhausted all possible administrative 
remedies available (Article 15.7). 
4.19.  Chapter 15 also includes provisions regarding the exchange of information (Article 15.5), 
consultations on its implementation (Article 15.6) and its relation with other chapters 
(Article 15.8). 
                                               
45 Colombia indicated that the exception covers all the subsectors in the category of professional 
services of the WTO Services Sector Classification (WTO document MTN.GNS/W/120). 
46 El Salvador maintains the GATS reservation, under which the staff of a company must be composed 
of at least 90% of Salvadorians, but removes the GATS restrictions on the staff wages. WT/REG316/1 
 
- 34 - 
 
 4.3.5  Performance requirements 
4.20.  Under Article 12.9 the Parties cannot impose performance requirements in connection with 
investment activities of an investor of a Party or a non-party in its territory.
47 
4.21.  A Party cannot make the receipt or continued receipt of an advantage related to an 
investment in its territory of an investor of a Party or a non-party conditional on certain 
performance requirements, unless the requirement is to locate production, provide a service, train 
or employ workers, construct or expand particular facilities, or carry out research and development 
in its territory.  
4.22.  Some performance requirements are allowed in the case of government procurement, 
export promotion and external support progra mmes. Performance requirements to achieve 
national content and benefit domestic goods can also be used to determine the origin status of 
products.  
4.3.6  Senior Management and boards of directors 
4.23.  The Parties cannot impose nationality requirements for senior management positions of a 
company that is a covered investment, but can require that a majority of its board of directors, or any committee thereof, be of a particular nationality, or resident in the territory of the Party, 
provided that the requirement does not impair the ability of the investor to exercise control over 
its investment (Article 12.10). 
4.3.7  Other investment-related provisions  
4.24.  In addition to the provisions on the deni al of benefits, performa nce requirements, senior 
management and board of directors, MFN and national treatment, Chapter 12 on investments includes provisions dealing with investment protection (Article 12.4), transfers (Article 12.7), expropriation and compensation (Article 12.8), compensation in case of war or conflicts 
(Article 12.14), special formalities and information requirements (Article 12.13), subrogation 
(Article 12.15) and environmental measures (Article 12.16).
48 It also provides procedures for the 
settlement of disputes between an investor and the host Party (Articles 12.17-12.30) 
(see Section 5.7). 
4.4  Liberalization commitments 4.25.  The liberalization of trade in services and investments follows a "negative list" approach, 
which means that provisions in Chapters 12 (Investments) and 13 (Cross-border trade in services) 
apply to all sectors, unless otherwise specified in the Parties' lists of reservations. Financial services are excluded from the scope of application of these two chapters. 
4.26.  Annexes I and II to the Agreement contain the list of existing non-conforming measures 
with respect to national and MFN treatment, performance requirements, market access, local 
presence, and senior management and board of directors in cross-border trade in services and investments, as well as of non-conforming measures  that the Parties could adopt in the future. The 
number and content of the reservations in Annexes I and II vary across Parties, with some 
exceptions. In total there are three reservations with respect to future measures that are common to all Northern Triangle countries (see Section 4.4.2): one on minorities and disadvantaged 
                                               
47The performance requirements prohibited under Ar ticle 12.9 are: (a) to export a given level or 
percentage of goods or services; (b) to achieve a give n  l e v e l  o r  p e r c e n t a g e  o f  d o m e s t i c  c o n t e n t ;  ( c )  t o  
purchase, use or accord a preference to goods produced in its territory, or to pu rchase goods from persons in 
its territory; (d) to relate in any way the volume or value of imports to the volume or value of exports or to the amount of foreign exchange inflows associated with such investment; (e) to restrict sales of goods or services 
in its territory that such investment produces or supplies by relating such sales to the volume or value of its exports or foreign exchange earnings ; (f) to transfer technology, a prod uction process or other proprietary 
knowledge to a person in its territory, except in certain cases; or (g) to supply exclusively from the territory of 
the Party the goods that such investment produces or the se rvices it supplies to a spec ific regional market or to 
the world market. 
48 Under Article 12.16, nothing in Chapter 12 will pr event a Party from taking any measure to ensure 
that investments in its territory are in line with its environmental legislation.  WT/REG316/1 
 
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populations, one on professional services and anot her on social services. Of these reservations, the 
one on professional services is identical to that listed by Colombia and the two others are similar.  
4.27.  Annex III contains exceptions with respect to the MFN obligation. It includes only one and 
identical reservation for all Parties, which allows them to grant to each other different treatment 
than they are granting to countries under an existi ng international agreement. This also applies for 
trade agreements that are signed or implemented after the Agreement's entry into force but only 
in aviation, fisheries and maritime matters (including salvage). 
4.28.  The following sections refer to the Parties' horizontal and sector-specific commitments for 
modes 1-3 in Annexes I and II. Commitments (in terms of scope) in Mode 4 are described in section 4.3.4. 
4.4.1  Colombia 
4.29.  Under the Agreement, Colombia lists 28 reservations for existing measures, of which five 
are horizontal (Annex I).  
4.30.  It also has 13 reservations on future me asures, of which two are horizontal. Of the sector-
specific measures, four cover more than one CPC sector.
49 Under the first one, Colombia can 
maintain or adopt any non-conforming measure with respect to market-access as defined in the Agreement but consistent with GATS Article XVI in  investigation and security services; research 
and development services; services incidental to energy distribution; distribution, wholesale and 
retail services; education services; environmental services; health related and social services; professional services related to health; libraries, archives and museums; sporting and other recreational services; and transportation services (Annex II).
50 Under the second multi-sector 
reservation, which is almost the same across Parties, Colombia can adopt or maintain any measure 
with respect to investments and cross-border trade in social services such as: social re-adaptation, income security or insurance, social security, soci al welfare, public training and education, health, 
and childcare. Under the third one, Colombia can adopt or maintain any non-conforming measure 
with respect to national and MFN treatment in modes 1-3 in cultural industries
51, which include 
audiovisual, recreational and cultural services as well as certain subsectors in the category "other 
business services" such as distribution, advertising, printing and publishing services. Finally, under 
the fourth reservation, Colombia imposes legal and local presence requirements to companies willing to supply domiciliary public services, which include electricity, gas distribution, basic telecommunication, sewage and refuse disposal services. 
4.31.  The following sections refer to Colombia's horizontal and sector-specific commitments for 
modes 1-3 at the national level. 
4.4.1.1  Horizontal commitments 
4.32.  Under the GATS, Colombia has horizontal re strictions only in mode 3. Under the Agreement 
some of these restrictions are removed, some are maintained while others are new. New restrictions also not only affect mode 3 but also modes 1 and 2. The GATS reservations prohibiting 
foreign investment in waste disposal services and the acquisition by foreigners of land and real 
estate in border and insular areas are maintained. Colombia also continues to apply nationality 
                                               
49This Factual Presentation follows the WTO Services Se ctor Classification list, which is based on the UN 
Central Product Classification (CPC) and consists of 12 sectors (WTO document MTN.GNS/W/120). 
50 This implies that under the Agreement, Colombia can apply a measure restricting market access in 
the listed sectors, as long as such measure has been listed in its GATS schedule.  
51 Cultural industries are defined as persons engaged in (a) the publication, distribution, or sale of 
books, magazines, periodicals or newspapers in print or  electronic form but excluding the sole activity of 
printing or typesetting any of the fore going; (b) the production, distribution, sale or exhibition of film or video 
recordings; (c) the production, distribution, sale or  exhibition of audio or video music recordings; 
(d) production or presentation of performing arts; (e ) production or exhibition of visual arts; (f) the 
publication, distribution or sale of music in print or machine readable form ; (g) design, produc tion, distribution 
and sale of handicrafts; (h) radio communications in wh ich the transmissions are intended for direct reception 
by the general public, and all radio, television an d cable broadcasting under takings and all satellite 
programming and broadcast netw ork services; and (i) creation  and design of publicity. WT/REG316/1 
 
- 36 - 
 
 restrictions on the staff and specialized staff of a company with more than 10 employees.
52 Under 
the Agreement, this reservation is softer as it allows an adjustment in the number of foreign 
technical staff. 
4.33.  Under the new reservations, Colombia indicates the following: foreign companies with 
a concession from the government must establish a branch in Colombia; and foreign investors can 
make portfolio investments in securities in Colombia only through a foreign investment fund. The acquisition of shares and assets of an existing State enterprise or governmental entity is also 
restricted. Individuals willing to provide services in the free port of San Andres, Providencia and 
Santa Catalina, must have their main office in that region.  
4.34.  Moreover, Colombia reserves the right to grant any measure that benefits socially or 
economically disadvantaged minorities and ethnic groups. 
4.4.1.2  Sector-specific commitments 
4.35.  Compared to its GATS schedule, Colombia's sector-specific commitments are in general 
broader.
53 It liberalized tourism, travel, construction  and related engineering services, restricted 
under the GATS. It also made partial commitments in distribution, environmental, transport and 
recreational, cultural and sporting services, all absent from the GATS. The remaining sectors are subject to reservations in both the GATS and the Agreement, but commitments are broader under 
the Agreement, except for health related and social services where there are no commitments, and 
financial services, which are not covered by the Agreement. 
4.36.  Table 4.3 compares Colombia's sectoral commitments under the Agreement and under its 
GATS schedule for modes 1-3. 
Table 4.3 Colombia's sector-specific liber alization under the Agreement, excluding 
mode 4 
Sectors (CPC Classification) GATS RTA 
Sectoral 
commitmentsa 
 Sectoral 
commitmentsb 
under the FTA Reservations 
specified in: 
1. Business services  Partial Partial*  
A. Professional Services  Partial Partial Annexes I-II 
B. Computer and Related Services  Partial Full - 
C. Research and Development Services  0c Partial Annex II 
D. Real Estate Services  0 Full - 
E. Rental/Leasing Services without Operators  Partial Full - 
F. Other Business Services  Partial Partial Annexes I-II 
2. Communication services  Partial Partial*  
A. Postal services  0 Partial Annex I 
B. Courier services  0 Partial Annex I 
C. Telecommunication services  Partial Partial Annex I 
D. Audiovisual services 0 Partial Annexes I-II 
E. Other 0 Partial Annex II 
3. Construction and related engineering services Partial Full  
A. General construction work for buildings  Partial Full - 
B. General construction work for civil engineering  Partial Full - 
C. Installation and assembly work  Partial Full - 
D. Building completion and finishing work  0 Full - 
E. Other  Partial Full - 
4. Distribution services  0 Partial  
A. Commission agents' services  0 Full - 
                                               
52 It is worth noting that under the Agreement this reservation also applies to mode 3, in addition to 
mode 4, while under the GATS, it is listed only for mode 4.  
53 Regarding MFN exemptions under the GATS, Colombia included in its list of exemptions the following 
sectors: communications (i.e. telecommunications and audi ovisual), transport (i.e. land transport) and financial 
services (i.e. insurance and insuranc e related services, banking and other financial services). The exempted 
measures grant national treatment mainly to Andean countries. WT/REG316/1 
 
- 37 - 
 
Sectors (CPC Classification) GATS RTA 
Sectoral 
commitmentsa 
 Sectoral 
commitmentsb 
under the FTA Reservations 
specified in: 
B. Wholesale trade services  0 Partial Annex II 
C. Retailing services   0 Partial Annex II 
D. Franchising   0 Full - 
E. Other 0 Full - 
5. Education services  0 Partial  
A. Primary education services  0 Partial  Annex II 
B. Secondary education services  0 Partial Annex II 
C. Higher education services  0 Partial Annex II 
D. Adult education  0 Partial Annex II 
E. Other education services  0 Partial Annex II 
6. Environmental services  0   
A. Sewage services  0 Partial Annexes I-II 
B. Refuse disposal services  0 Partial Annexes I-II 
C. Sanitation and similar services  0 Partial Annexes I-II 
D. Other 0 Partial Annexes I-II 
7. Financial services Partial Excluded  
A. All insurance and insurance-related services  Partial - Chapter 12-13 
B. Banking and other financial services Partial - Chapter 12-13 
C. Other  0 - Chapter 12-13  
8. Health related and social services 0 0  
A. Hospital services 0 0 Annexes I-II 
B. Other Human Health Services  0 0 Annexes I-II 
C. Social Services  0 0 Annexes I-II 
D. Other 0 0 Annexes I-II 
9. Tourism and travel related services  Partial Full  
A. Hotels and restaurants (incl. catering)  Partial Full - 
B. Travel agencies and tour operators services  Full Full - 
C. Tourist guides services  0 Full - 
D. Other  0 Full - 
10. Recreational and cultural and sporting services 0 Partial  
A. Entertainment services (including theatre, live bands 
and circus services) 0 Partial Annex II 
B. News agency services  0 Partial Annexes I-II 
C. Libraries, archives, museums and other cultural 
services  0 Partial Annex II 
D. Sporting and other recreational services  0 Partial Annex II 
E. Other  0 Partial Annex II  
11. Transport services  0 Partial  
A. Maritime Transport Services  0 Partial Annex I 
B. Internal Waterways Transport  0 Partial Annex I 
C. Air Transport Services  0 Partial Annex I 
D. Space Transport  0 Partial Annex I 
E. Rail Transport Services  0 Partial Annex II 
F. Road Transport Services 0 Partial Annex II 
G. Pipeline Transport  0 Partial Annex II 
H. Services auxiliary to all modes of transport  0 Partial Annexes I-II 
I. Other Transport Services 0 Partial Annex I  
12. Other services not included elsewhere  0 Full - 
a Except as indicated in the GATS horizontal commitments. 
b Except as indicated in the Ag reement horizontal reservations. 
c  "0" means that no commitments have been made. * Means that partial commitments were made both under the GATS and the Agreement, but in general 
commitments under the Agreement are improved.  
 
4.37.  In business services, Colombia makes full commitments in real estate services and partial 
commitments in research and development (R&D) se rvices, both excluded from its GATS schedule. 
In R&D services, Colombia reserves the right to ad opt or maintain any measure relating to market 
access. In R&D services in natural sciences, any research project on biological diversity in 
Colombia must include at least one Colombian researcher. Colombia also expands its commitments in computer, rental and leasing services, which are restricted under the GATS. In computer and 
related services, it added "other services" to its GATS schedule, as well as mode 1 for all 
remaining subsectors. In rental and leasing services, it added mode 1 for rental and leasing WT/REG316/1 
 
- 38 - 
 
 services relating to transport equipment and has full commitments in all remaining subsectors, 
excluded from the GATS.  
4.38.  Despite a few reservations, commitments in professional services are broader than in the 
GATS, where they are limited to certain modes in legal, taxation, accounting, auditing and 
bookkeeping services. According to its reservations, Colombia can adopt or maintain any 
non-conforming measure with respect to national and MFN treatment, market access and local presence and affecting cross-border trade in professional services. Further commitments in this 
sector are subject to future negotiations.
54 In accounting services, Colombia maintains registration 
and local presence requirements55, but no longer requires that the accounting degree comes from 
a Colombian university or a foreign institution recognized by the Colombian government. Colombia also removed the restriction regarding the number of public accountants in public accounting 
companies. In legal services, it expands the sectoral and modal coverage, which in the GATS are 
limited to certain activities and to modes 1-2, but maintains nationality requirements for notaries and registers, as well as authorization requirem ents for the establishment of a notary office. 
Finally, Colombia specifies a reservation on future measures with respect to market access for 
professional services related to health.  
4.39.  In other business services, Colombia makes full commitments in all subsectors except for 
services relating to fishing, mining, energy distribution, investigation, security, printing, publishing 
and advertising services which are subject to reservations.
56 Artisanal fishing is reserved to 
Colombians and to engage in fishing activities, foreign flagged vessels must be, in general, associated to a Colombian firm with a permit. The price of the fishing permit and licence is higher 
for foreign flagged vessels. This is more restrict ive than the GATS, where services relating to 
fishing are fully liberalized for modes 1-3. In mining, foreign companies must be domiciled in Colombia to supply services of exploration and expl oitation of minerals and hydrocarbons for more 
than one year. This seems more restrictive than  the GATS, where full commitments are made in 
prospecting, drilling and production services. In services relating to energy distribution, 
investigation and security services, Colombia can adopt or maintain any non-conforming measure 
with respect to market access. In addition, in services relating to energy distribution, only 
companies established in Colombia before 1994 can supply marketing, generation, distribution and transmission of electrical power services. Moreover, foreign companies willing to supply domiciliary services (including electricity distribution) must be domiciled and legally established in Colombia as 
a corporation. In investigation and security services, companies willing to provide these services 
must comply with local presence and legal entity requirements, as well as with nationality requirements for their partners. As for printing, publishing and advertising services, they are all 
covered by the reservation on cultural industries. In advertising services, Colombia also reserves 
the right to adopt or maintain domestic content requirements.  
4.40.  In communication services, Colombia has partial commitments in postal and courier services 
but reserves the provision of postal services, specialized postal services and related 
intermediations services to companies legally established or having a legal representative in Colombia. In telecommunications services, commitments in both basic
57 and value-added 
telecommunication are also broader despite a few reservations. Colombia lifted the capital 
restrictions in mode 3 under the GATS but contin ues to reserve the concessions for the supply of 
telecommunications services to Colombian companies.58 Moreover, suppliers of basic 
telecommunications services are also required to take a certain type of legal entity and be legally 
established in Colombia according to the reservation on public domiciliary services.  
                                               
54 Yet, the Parties were to consult in two years from the entry into force of the Agreement in order to 
deepen their commitments. As of December 2013,  no meeting has been held in this respect. 
55 Like in the GATS, accountants must be registered and domiciled in Colombia for at least three years 
prior to registration; and have acquired accountin g experience in Colombia  of at least one year. 
56 Under the GATS, Colombia has commitments only in two sectors, namely management consulting 
services and services relating to mining. 
57 Basic telecommunication services were excluded from the 1994 GATS but partially liberalized in its 
1997 GATS schedule as a result of the Negotiations on Basic Telecommunications (WTO document 
GATS/SC/20/Suppl.2). 
58 Under the GATS, valued-added telecommunication serv ices are limited mainly to mode 2, while basic 
telecommunications services are limited to certain services and mainly to modes 1-2. WT/REG316/1 
 
- 39 - 
 
4.41.  Colombia added audiovisual services to its schedule but maintains several reservations 
regarding investments and cross-border trade. Audiovisuals are covered by the reservation on cultural industries with respect to national and MFN treatment; and the concessions to provide radio broadcasting services and free-to-air television services are reserved for Colombians or 
companies legally established in Colombia. Colombia also reserves the right to adopt or maintain 
any measure granting governmental support conditional on the level of domestic content. It reserves the right to apply domestic content quotas to cinematographic works shown in cinemas 
and on free-to-air television channels, as well as to the programming for community television, 
multichannel free-to-air commercial and national television. The exhibition and distribution of foreign films is also subject to a fee. Moreover, Colombia reserves the right to adopt measures to guarantee the access of Colombian audiovisual programming to its nationals through interactive 
audio and/or video services.  
4.42.  In television services, providers holding a concession are subject to foreign capital and legal 
restrictions. Regional television services are reserved for the state and subject to domestic content 
quotas. The provision of Community television services is reserved for communities, which must 
be legally established in Colombia and have a certain type of legal form. These services are also subject to restrictions in their coverage, channels, among others. In subscription-based (pay) 
television services, Colombia applies local presence requirements, as well as domestic content 
quotas for services not delivered by satellite transmission.  
4.43.  In construction and related engineering services, Colombia liberalized building completion 
and finishing work services, not included in its GATS schedule. It added mode 1 in general 
construction works for buildings, which under the GATS is unbound. It also expanded the sectoral 
and modal coverage in construction works for civil engineering, installation and assembly works and other related services, which under the GATS are limited to certain activities and to 
modes 2-3.
59  
4.44.  In distribution services, Colombia made full commitments except in wholesale and retailing 
services. These two subsectors are covered by the exception on cultural industries and the 
"multi-sector" reservation on future measures with respect to market access (see Section 4.4.1). 
These services are also subject to a reservation on handicrafts, which allows Colombia to take any non-conforming measures with respect to performance requirements and national treatment and relating to the design, distribution, retailing, or exhibition of Colombian handicrafts.  
4.45.  In education services (excluded from the GATS), Colombia reserves the right to adopt or 
maintain any measure relating to social services, including public education and public training services with respect to national and MFN treatment, performance requirements, market access, 
local presence and senior management and board of directors.  In addition, it reserves the right to 
adopt or maintain any measure relating to mark et access for primary and secondary education 
services and to require any specific type of legal entity to provide higher level education services 
(both public and private). 
4.46.  In environmental services, Colombia has commitments but reserves the right to adopt any 
measure with respect to market access in environmental services established or maintained in the public interest. It also requires that companies w illing to provide domiciliary public services such as 
sewage and refuse disposal take a specific legal form and be legally established in Colombia. 
Foreign investment is prohibited in activities related to the processing and disposal of toxic, hazardous or radioactive waste not produced in Colombia, which mirrors part of its GATS 
horizontal commitments. 
4.47.  Health related and social services are not subject to any commitment according to the 
reservation on social services.  
4.48.  Colombia made full commitments in tourist guide services, restaurants' services and other 
tourism related services, all excluded from its GATS schedule. In hotel services, it added mode 1, 
                                               
59 GATS commitments are limited to dams and golf cour ses in the case of general construction works for 
civil engineering; derrick operations in installation and assembly works; and to pre-erection work at building and construction sites in the case of other services. WT/REG316/1 
 
- 40 - 
 
 which was unbound under the GATS. However, in practice the level of commitments in hotels 
services remains unchanged as trade in mode 1 is not technically possible.
60  
4.49.  In recreational, cultural and sporting services, Colombia made partial commitments in all 
subsectors, although it maintains a few reservations. All subsectors, except for sporting and other 
recreational services, are covered by the reservation on cultural industries. Sporting and other 
recreational services are covered by another reservation which allows Colombia to adopt or maintain any measure relating to market access. This reservation also applies to libraries, archives 
and museums services. In addition Colombia reserves the right to adopt any measure that 
conditions the receipt of government support on domestic content requirements for jewellery design, theatre, music, visual arts, audio-visuals and editorials. It also has a reservation covering 
the design and exhibition of handicrafts (as well as  its distribution and retailing), the design of 
jewellery and the development of expressions relating to intangible cultural heritage. Finally, in 
news agency services, it requires the director or manager of domestic newspapers dealing with politics to be Colombian.  
4.50.  In transport services (not included under the GATS), Colombia made partial commitments 
but applies reservations to all subsectors.
61 In maritime and fluvial transport services, cabotage 
services (within its territory) are reserved for Colombian companies using Colombian-flag vessels 
and foreign-vessels entering Colombian ports must have a legal representative domiciled in 
Colombia. Nationality requirements also apply to the captain and crew of any vessel operating in Colombian waters (sea and rivers) (except for foreign fishing vessels) for more than six months, as well as to maritime and river pilots. The provision of port services (under a concession) is 
reserved for Colombian corporations and Colombian flags vessels, except when no Colombian-flag 
vessel is available. In addition, Colombia reserves the right to grant to countries under future international agreements different treatment than granted to the Parties under the Agreement in 
the area of fluvial and road transport services (in cross-border trade). 
4.51.  In air transport services, Colombia made commitments in aircraft repair and maintenance 
services, computer reservation system services and specialty air services, all absent from the 
GATS. It only restricts specialty air services by reserving their supply and the acquisition of 
aircrafts to its nationals and domestic companies. It also applies restrictions on the nationality of the staff of the companies providing these services.  
4.52.  In services auxiliary to all modes of transport, Colombia applies a local presence 
requirement for individuals willing to provide cu stoms services including customs intermediation 
services supply, intermediation for specialized postal services, deposit services for merchandise, transportation services and international cargo services. 
4.53.  Finally, Colombia can adopt or maintain any future measure regarding the number of 
concessions and the total number of operations for road transportation passenger services; passenger and freight rail transportation services ; pipeline transport; services auxiliary to all 
modes of transport; and other transport services. In addition, for any type of public transport, 
suppliers must be legally established and domiciled in Colombia. In the case of foreign providers of freight multimodal transport services, they must have a legal agent domiciled in Colombia. 
4.4.2  Northern Triangle 
4.54.  Annex I lists 16 reservations on existing measures for El Salvador, 12 for Guatemala and 26 
for Honduras. Of these reservations, four refer to horizontal measures for El Salvador and 
Honduras, and five for Guatemala (Annex I). 
4.55.  In addition, El Salvador has six reservat ions on future measures; Guatemala has seven and 
Honduras five. Of these reservations, one is the same for all three Parties and allows them to adopt or maintain any measure granting benefits to socially or economically disadvantaged 
                                               
60 Under the Agreement, Colombia made a reservation on travel agencies and tour operators services 
but which only applies to mo de 4 (See Section 4.3.4). 
61 Chapter 9 does not cover air transport services and related services in support of air service, other 
than aircraft repair and maintenance services, the selling and marketing of air transport services, and 
computer reservation system ("CRS") services (Article 901). WT/REG316/1 
 
- 41 - 
 
minorities, as well as to indigenous populations in the case of Guatemala (Annex II). This is also 
the only horizontal reservation with respect to future measures listed by these Parties. 
4.56.  Besides this reservation, they have in common two other reservations in Annex II regarding 
professional services and social services. In prof essional services, they reserve the right to adopt 
any non-conforming measure in cross-border trade with respect to market access, local presence 
and national and MFN treatment. Following two year s after the entry into force of the Agreement, 
the Parties shall hold consultations in order to deepen their commitments. In this respect, the 
Parties indicated that they have had some ex changes and planned to meet, but that as of 
December 2013, no meeting had taken place yet. In social services, the Parties reserve the right to adopt or maintain any non-conforming measure with respect to investments and cross-border trade and affecting pensions, unemployment insuranc e, social security, social welfare, public 
education, public training, health, and childcare. In addition to these services, Honduras lists 
pension funds. As a result of this reservation, health, public education and training, and social services are not subject to any commitment. 
4.57.  Guatemala and El Salvador also list the same reservation for construction services, where 
they reserve the right to adopt any measure duri ng the two first years following the Agreement's 
entry into force. After this transition period, the existing measures will be considered as existing 
non-conforming measures. 
4.58.  Finally, as mentioned in paragraph 4.27, in  Annex III all three Parties reserve the right to 
deny to Colombia (under the Agreement) the same treatment as granted to other countries under an existing international agreement. For future agreements, they can also deny to Colombia the 
same treatment as granted to other countries under any international agreement signed or 
implemented after the entry into force of the Agreement but only in aviation, fisheries and 
maritime matters (including salvage).
62  
4.59.  The following sections refer to the Northern Triangle Parties' horizontal and sector-specific 
commitments for modes 1-3.  
4.4.2.1  El Salvador  
4.4.2.1.1  Horizontal commitments 
4.60.  Under the GATS, El Salvador lists limitation s in modes 3 (and 4) for market access, and all 
modes for national treatment. Under the Agreement, El Salvador lists some of these restrictions but also adds new ones. In total, three reservations are applied in mode 3. The first one reserves 
the establishment of small enterprises
63 providing services or engaged in commercial activities for 
Salvadorians or Central Americans. This is the same as in the GATS. The second requires that the majority of the partners of a "cooperative production society" be nationals. The third one prohibits 
foreigners from acquiring rural land, except for land to be used for industrial plants. These two 
reservations have no equivalent in the GATS. Moreover, there are some restrictions listed under the GATS that are not listed in th e Agreement. For instance, El Salvador does not list the GATS 
restriction under which foreign companies require to have a legal representative in its territory, 
prove its legal status abroad and be subject to domestic law in order to engage in commercial activities.
64 
4.61.  It also applies reservations with respect to future measures regarding socially and 
economically disadvantaged minorities (see Section 4.4.2).  
                                               
62 In other words, for future Agreements the Parties commit to grant the same preferential treatment to 
Colombia under the Agreement than the one granted to other countries under any subsequent international agreement, except in aviation, fisheries and maritime matters (including salvage). 
63 Small enterprise is defined in the Agreement as an enterprise with a capital of less than US$200,000.  
64 Other restrictions not included in the Agreement are: the registration requirement for investments; 
the charges on dividends or income earned in the countr y by non-residents, as well as the restrictions on the 
transfer of profits of registered investments and of payments relate d to certain services. WT/REG316/1 
 
- 42 - 
 
 4.4.2.1.2  Sector-specific commitments 
4.62.  Compared to its GATS schedule, El Salvador's sector-specific commitments are in general 
broader in the Agreement.
65 It liberalizes environmental, to urism and travel related services, 
which under the GATS are restricted. It also makes partial commitments in construction and 
related engineering services, distribution, educatio n, recreational, cultural and sporting services, 
all excluded from the GATS. The remaining sectors, except for financial, health related and social 
services, are all subject to restrictions in th e GATS and the Agreement, but commitments under 
the Agreement are broader. 
4.63.  Table 4.4 compares El Salvador's sectoral commitments under the Agreement and under its 
GATS schedule for modes 1-3. 
Table 4.4 El Salvador's sector-specific lib eralization under the Agreement, excluding 
mode 4 
Sectors (CPC Classification) GATS RTA 
Sectoral 
commitmentsa 
 Sectoral 
commitmentsb 
under the FTA  Reservations 
specified in: 
1. Business services  Partial Partial*  
A. Professional Services  Partial Partial* Annexes I-II 
B. Computer and Related Services  Partial Full - 
C. Research and Development Services  0c Full - 
D. Real Estate Services  0 Full - 
E. Rental/Leasing Servic es without Operators  Partial Full - 
F. Other Business Services  Partial Partial* Annex I 
2. Communication services  Partial Partial*   
A. Postal services  0 0 Annex II 
B. Courier services  0 Full - 
C. Telecommunication services  Partial Full - 
D. Audiovisual services Partial Partial* Annex I 
E. Other  0 Full - 
3. Construction and related engineering 
services  0 Partial  
A. General construction work for buildings  0 Partial Annexes I-II 
B. General construction wo rk for civil engineering  0 Partial Annexes I-II 
C. Installation and assembly work  0 Partial Annexes I-II 
D. Building completion and finishing work  0 Partial Annexes I-II 
E. Other  0 Partial Annexes I-II 
4. Distribution services  0 Partial   
A. Commission ag ents' services  0 Full - 
B. Wholesale trade services  0 Full - 
C. Retailing services   0 Partial Annex I 
D. Franchising   0 Full - 
E. Other  0 Full - 
5. Education services  0 Partial   
A. Primary education services  0 Partial Annex II 
B. Secondary education services  0 Partial Annex II 
C. Higher education services  0 Partial Annex II 
D. Adult education  0 Partial Annex II 
E. Other education services  0 Partial  Annex II  
6. Environmental services  Partial Full   
A. Sewage services  0 Full - 
B. Refuse dispos al services  0 Full - 
C. Sanitation and similar services  0 Full - 
D. Other Partial Full - 
                                               
65 Regarding MFN exemptions under the GATS, El Sa lvador include a "Central American exemption 
clause" in their trade agreements, which does not allow to extend the concessions among central American 
countries to third countries. It also includes one exemption relating to fi nancial services and applying to the 
resources received by subsidiaries in one signatory State. WT/REG316/1 
 
- 43 - 
 
Sectors (CPC Classification) GATS RTA 
Sectoral 
commitmentsa 
 Sectoral 
commitmentsb 
under the FTA  Reservations 
specified in: 
7. Financial services Partial Excluded  
A. All insurance and insu rance-related services  0 - Chapter 12-13 
B. Banking and other financial services Partial - Chapter 12-13 
C. Other  0 - Chapter 12-13  
8. Health related and social services 0 0  
A. Hospital services 0 0 Annex II 
B. Other Human Health Services  0 0 Annex II 
C. Social Services  0 0 Annex II 
D. Other 0 0 Annex II 
9. Tourism and travel related services  Partial  Full   
A. Hotels and restaurants (incl. catering)  Partial Full - 
B. Travel agencies and to ur operators services  Partial Full - 
C. Tourist guides services  Partial Full - 
D. Other  0 Full - 
10. Recreational and cultural and sporting 
services 0 Partial   
A. Entertainment services (including theatre, live 
bands and circus services) 0 Partial* Annex I 
B. News agency services  0 Full - 
C. Libraries, archives, mu seums and other cultural 
services  0 Full - 
D. Sporting and other recreational services  0 Full - 
E. Other  0 Full - 
11. Transport services  Partial Partial*  
A. Maritime Transport Services  0 Full - 
B. Internal Waterways Transport  0 Full - 
C. Air Transport Services  Partial Partial* Annex I 
D. Space Transport  0 Full - 
E. Rail Transport Services  0 Full - 
F. Road Transport Services 0 Partial Annexes I-II 
G. Pipeline Transport  0 Full - 
H. Services auxiliary to all modes of transport  0 Full - 
I. Other Transport Services 0 Full - 
12. Other services not included elsewhere  0 Full - 
a  Except as indicated in the GATS horizontal commitments. 
b  Except as indicated in the Ag reement horizontal reservations. 
c  "0" means that no commitments have been made. *  Means that partial commitments were made both under the GATS and the Agreement, but in general 
commitments under the Agreement are improved.  
 
4.64.  In business services, El Salvador made full commitments in real estate, research and 
development services, all excluded from the GATS. In computer and related services, it expanded 
the sectoral coverage, which under the GATS was limited to certain data processing activities. In rental and leasing services, it also expanded the sectoral and modal coverage, which under the 
GATS was limited to leasing cars' services and to  modes 2-3. In professional services, it made 
partial commitments in six subsectors, all exclud ed from the GATS, and expanded its commitments 
in legal; accounting, auditing, bookkeeping; taxation; architectural and engineering services.
66 All 
professional services are however covered by a fu ture reservation allowing El Salvador to adopt 
any non-conforming measure in cross-border trade with respect to market access, local presence 
                                               
66 Under the GATS, legal, accounting, auditing, boo kkeeping, taxation, architectural and engineering 
services were limited to certain activities and in certain cases only to mode 3. In legal services, GATS commitments were limited to legal, ad visory and information services (and  modes 1-3). In taxation services, 
GATS commitments were limited to business tax planni ng and tax return preparation and to mode 3. In 
accounting, auditing and bookkeepin g services, GATS commitments were limited to financial auditing, 
accounting review and bookkeeping services, except tax returns for mode 3. In ar chitectural and engineering 
services, GATS commitments were limited to advisory , pre-design and design architectural services, and 
advisory and consultative engine ering services for modes 1-3. WT/REG316/1 
 
- 44 - 
 
 and national and MFN treatment.
67 El Salvador maintains two other reservations: one in 
accounting, auditing and bookkeeping services; and another in architectural and engineering 
services. In accounting, auditing and bookkeeping services, only Salvadorians can be authorized public accountants and companies willing to supply accounting services must be domestically-
owned and have at least one authorized public accountant among its shareholders, partners or 
managers. In architectural and engineering servic es, to provide design, consulting, management 
services for projects in this area or conduct any related study, foreign enterprises must be 
associated with a Salvadoran company, have a national as a representative and comply with other 
investment and staff restrictions. El Salvador indicated that this reservation also applies to construction and related engineering services. The reservation has no equivalent in the GATS.
68 In 
other business services, it added 19 subsectors to its schedule and broadened its commitments (in 
terms of scope and modes) in advertising services while maintaining one reservation.69 El Salvador 
requires that at least 90% of the production and recording of any radio, television or print advertisement media must be carried out by Salv adorans, unless advertisements refer to foreign 
goods or services covered by a licence.  
4.65.  In communication services, El Salvador made full commitments in courier services and other 
services, excluded from the GATS. In audio-visu als, it expanded the coverage of radio and 
television transmission services and added all the remaining subsectors, uncommitted under the 
GATS. In radio and television services, it added mode 1 but maintained a restriction that seems 
more stringent that the one in the GATS. Under th e Agreement, El Salvador reserves the licences 
and concessions to provide such services to it s nationals and domestic companies, and applies 
foreign capital restrictions, while in the GATS, the licences and concessions can be granted to an 
applicant domiciled in El Salvador. In telecommunications, restricted under the GATS, El Salvador did not make any reservation.
70 Yet, it indicated that, although not listed in the Agreement, the 
provision of value-added and basic telecommunications services are subject to authorization.71 In 
postal services, no commitments are made as El Salvador reserves the right to adopt any measure in this sector related to cross-border services or investments. 
4.66.  In construction and related engineering serv ices (absent from the GATS), El Salvador made 
a reservation in modes 1-3, which requires that to provide design, consulting, management services for engineering projects or conduct any wo rk related to the construction of such projects, 
foreign enterprises must be associated with a Salvadoran company, have a national as a 
representative and comply with other investment an d staff restrictions. Additionally, it reserves for 
modes 1-2 the right to adopt any measure during 2010-2012. After this period, the measures in place will become part of Annex I.  
4.67.  In distribution services (excluded from the GATS), El Salvador made full commitments in all 
subsectors, except in retailing services. In this subsector, the establishment of duty-free shopping 
centres in ports is reserved for its nationals and domestic companies held in majority by 
Salvadorians. 
4.68.  In education, health and social services, El Salvador has no commitments either under the 
GATS or under the Agreement (see paragraph 4.56). 
4.69.  In environmental services, El Salvador did not list any reservation. Thus, compared to its 
GATS schedule, in the Agreement El Salvador made commitments in sewage, refuse disposal and 
sanitation services and removed in "other services" the authorization and local presence requirement to provide refuse disposal services relating to exhaust gases, landscape and 
environment protection. 
                                               
67 In 2012, El Salvador and Colombia were to conduc t consultations to deepen their commitments. As of 
December 2013, no agreements had been reached in this regard.  
68 Under the GATS, mode 4 is unbound for advisory, pre-design and design ar chitectural services, and 
advisory and consultative engi neering services; but no restrictions apply to modes 1-3. 
69 GATS commitments in advertising services are limi ted only to certain serv ices and to mode 3.  
70 Basic telecommunication services were excluded from its 1994 GATS schedule but partially liberalized 
in its 1997 GATS schedule following the Negotiations on Basic Telecommunications (WTO document 
GATS/SC/29/Suppl.1). As part of the outcome negotiations El Salvador ad opted the GATS reference paper.  
71 This reservation is not listed in the Agreement but it is in El Salvador GATS's schedule. WT/REG316/1 
 
- 45 - 
 
4.70.  In tourism and travel related services, El Salvador made broader commitments in hotels, 
restaurants, travel agencies, tour operator and tourist guides services, all restricted under the GATS. In travel agencies, tour operator and touris t guides services, it made full commitments by 
adding modes 1 and 2 to its schedule and in hotels and restaurants by adding mode 1. However, it 
is worth noting that although there no restrictions applied in hotels and restaurants for mode 1 
under the Agreement, in practice the level of commitments remains unchanged as mode 1 for this subsector is not technically feasible.  
4.71.  In recreational, cultural and sporting serv ices (excluded from the GATS), El Salvador made 
full commitments in all subsectors, except fo r entertainment services, where it maintains 
reservations relating to foreign artists, foreign ci rcuses and live shows. Foreign artists and circuses 
are subject to authorization and a fee; and their performances are limited to 30 days every year.
72 
Live shows are subject to a domestic participation quota. 
4.72.  In transport services, El Salvador libera lized maritime, internal waterways, rail, space, 
pipeline, services auxiliary to all modes of transport and other transport services, all absent from 
the GATS. It also made partial commitments in ro ad transport services, and broadened those in air 
transport services. In road services, El Salvador makes full commitments in all subsectors, except for freight and passenger transportation. In freight transportation, it reserves the right to adopt or 
maintain any measures to restrict goods transportation. In addition, it reserves the transportation 
of goods within its territory to national vehicles and applies foreign equity restrictions to companies engaged in this activity. In passenger transportation, permits to supply such services 
can be granted only to Salvadorians or their partners. El Salvador also restricts the number of 
concessions for a given route.
73  
4.73.  In air transport services, El Salvador made full commitments in mode 3.74 For modes 1-2, it 
made commitments in specialty air services (excluded from the GATS) and aircraft repair and 
maintenance services, but kept a few reservations.75 The provision of specialty air services is 
subject to an authorization. In aircraft repair and maintenance services, El Salvador did not include the GATS requirement of a licence and local presen ce to provide such services, but listed a new 
reservation. Under the latter, El Salvador applies the reciprocity principle for the recognition of 
licences, authorizations and qualifications of staff on board of an aircraft or on the ground, as well as of pilots and technical staff providing specialty air services.  
4.4.2.2  Guatemala 
4.4.2.2.1  Horizontal commitments 
4.74.  Under the GATS, Guatemala does not have any horizontal limitations with respect to market 
access, but lists horizontal reservations for modes 1-3 with respect to national treatment regarding 
taxation for not residents receiving an income from Guatemalan sources. Under the Agreement, 
Guatemala removed this reservation but introduced new ones. It prohibits the acquisition by foreigners of land in border areas and in the department of Petén; and requires an authorization 
for the acquisition of state-owned land located in certain areas. Only its nationals and Guatemalan 
companies can take adverse possession of real estate.
76 Legally established foreign companies that 
would like to set up and operate in Guatemala must allocate capital for their operations in Guatemala and provide a guarantee in favour of third parties for at least US$50,000. It also 
reserves the right to adopt or maintain any measure benefitting minorities, indigenous and 
disadvantaged populations.  
                                               
72 A year from the last performance in the case of fo reign circuses an d from the first performance in the 
case of foreign artists. 
73 El Salvador indicated that th e reservations on existing measures, which apply to freight and 
passenger transportation in land transp ort, do not apply to rail transport. 
74 Contrary to Chapter 13 on cross-border trade,  Chapter 12 on investments does not exclude air 
services from the scope of application. 
75 Specialty air services are defined as air services th at do not involved transportation (Article 13.1).  
76 Adverse possession is a legal pr ocess by which a person who has owned a property for a given period 
of time but has no registry, can claim title of the property (Article 1 of the Decree N°49-79:"Ley de Titulación Supletoria"). WT/REG316/1 
 
- 46 - 
 
 4.4.2.2.2  Sector-specific commitments 
4.75.  Guatemala's sector-specific commitments in the Agreement are in general than in its GATS 
schedule.
77 Under the Agreement, it made full comm itments in distribution and environmental 
services, both excluded from the GATS. It also liberalized communication services, restricted under 
the GATS. In construction and related engineering services, education, recreational, cultural and 
sporting services (all absent from the GATS), it made partial commitments. The remaining sectors (business, transport, tourism and travel related services) except for financial, health related and 
social services, are all subject to restrictions in the GATS and the Agreement, but commitments 
under the Agreement are broader. 
4.76.  Table 4.5 compares Guatemala's sectoral commitments under the Agreement and under its 
GATS schedule for modes 1-3. 
Table 4.5 Guatemala's sector-specific liber alization under the Agreement, excluding 
mode 4 
Sectors (CPC Classification) GATS RTA 
Sectoral 
commitmentsa 
 Sectoral 
commitmentsb 
under the FTA Reservations 
specified in: 
1. Business services  Partial Partial*  
A. Professional Services  0c Partial Annexes I-II 
B. Computer and Related Services  Partial Full - 
C. Research and Development Services  0 Full - 
D. Real Estate Services  0 Full - 
E. Rental/Leasing Servic es without Operators  0 Full - 
F. Other Business Services  0 Partial Annexes I-II 
2. Communication services  Partial Full  
A. Postal services  0 Full - 
B. Courier services  0 Full - 
C. Telecommunication services  Partial Full - 
D. Audiovisual services 0 Full - 
E. Other  0 Full - 
3. Construction and related engineering 
services 0 Partiald  
A. General construction work for buildings  0 Partiald Annex II 
B. General construction wo rk for civil engineering  0 Partiald Annex II 
C. Installation and assembly work  0 Partiald Annex II 
D. Building completion and finishing work  0 Partiald Annex II 
E. Other  0 Partiald Annex II 
4. Distribution services  0 Full  
A. Commission ag ents' services  0 Full - 
B. Wholesale trade services  0 Full - 
C. Retailing services   0 Full - 
D. Franchising   0 Full - 
E. Other  0 Full - 
5. Education services  0 Partial  
A. Primary education services  0 Partial Annex II 
B. Secondary education services  0 Partial Annex II 
C. Higher education services  0 Partial Annex II 
D. Adult education  0 Partial Annex II 
E. Other education services  0 Partial Annex II 
6. Environmental services  0 Full  
A. Sewage services  0 Full - 
B. Refuse dispos al services  0 Full - 
                                               
77 Regarding MFN exemptions under the GATS, Gu atemala exempts measures resulting from its 
agreements with Central America and Mexico countries to comply with the principle of MFN treatment. It also reserve the right not to extend the concessions granted among Central American countries to third countries 
(i.e. "Central American exemption clause"). Finally, it also exempts measures resulting from investment 
agreements with the US, Central American countries, Colombia and Venezuela from compliance with the principle of MFN principle. WT/REG316/1 
 
- 47 - 
 
Sectors (CPC Classification) GATS RTA 
Sectoral 
commitmentsa 
 Sectoral 
commitmentsb 
under the FTA Reservations 
specified in: 
C. Sanitation and similar services  0 Full - 
D. Other 0 Full - 
7. Financial services Partial Excluded  
A. All insurance and insu rance-related services  Partial - Chapter 12-13  
B. Banking and other financial services Partial - Chapter 12-13  
C. Other  0 - Chapter 12-13  
8. Health related and social services 0 0  
A. Hospital services 0 0 Annex II 
B. Other Human Health Services  0 0 Annex II 
C. Social Services  0 0 Annex II 
D. Other 0 0 Annex II 
9. Tourism and travel related services  Partial Partial*  
A. Hotels and restaurants (incl. catering)  Partial Full - 
B. Travel agencies and to ur operators services  Partial Full - 
C. Tourist guides services  0 Partial Annex I  
D. Other  0 Full - 
10. Recreational and cultural and sporting 
services 0 Partial  
A. Entertainment services (including theatre, live 
bands and circus services) 0 Partial Annex I 
B. News agency services  0 Full - 
C. Libraries, archives, mu seums and other cultural 
services  0 Full - 
D. Sporting and other recreational services  0 Full - 
E. Other  0 Full - 
11. Transport services  Partial Partial*  
A. Maritime Transport Services  0 Partial Annex II 
B. Internal Waterways Transport  0 Full - 
C. Air Transport Services  Partial Partial Annex I 
D. Space Transport  0 Full - 
E. Rail Transport Services  0 Full - 
F. Road Transport Services 0 Partial Annex II 
G. Pipeline Transport  0 Full - 
H. Services auxiliary to all modes of transport  0 Full - 
I. Other Transport Services 0 Full - 
12. Other services not included elsewhere  0 Full - 
a Except as indicated in the GATS horizontal commitments. 
b Except as indicated in the Ag reement horizontal reservations. 
c "0" means that no commitments have been made. d Guatemala indicated that currently it does not apply any reservation to construction and related 
engineering services. 
* Means that partial commitments were made both under the GATS and the Agreement, but in general 
commitments under the Agreement are improved.  
 
4.77.  In business services, Guatemala adds to its schedule research, development, real estate, 
rental and leasing services. It broadens its commitments in computer and related services by 
adding mode 2 (unbound under the GATS) and adding data base and other services to its 
schedule. It also made commitments in professional and other business services, excluded from the GATS, while maintaining a few reservations. Professional services are subject to a broad reservation, under which Guatemala can adopt or maintain any measure in the cross-border trade 
for professional services.
78 Guatemala also prohibits the establishment of foreign companies 
supplying a professional service that requires the recognition of university degrees, certificates, or diplomas. To provide such services, foreign companies must form a joint venture with a domestic 
company. In legal services, it further reserves the provision of notary services to Guatemalans 
domiciled in its territory. In other business services, it liberalizes all subsectors, except for services incidental to fishing and forestry, which are subject to reservations. The exploitation and renewal 
                                               
78 The Parties agree to consult in two years from the Agreement's entry into force with the objective of 
deepening their commitments. As of December 2013, consultations had not taken place.    WT/REG316/1 
 
- 48 - 
 
 of forest resources are reserved for its national and domestic companies. For artisanal fishing and 
related activities, Guatemala reserves the right to  adopt or maintain any non-conforming measure 
with respect to national treatment for investments and cross-border trade. 
4.78.  In communication services, Guatemala expands its commitments as no reservations are 
applied. It adds postal, courier, audio-visuals and other services to its schedule. In 
telecommunications, it makes commitments in valued-added telecommunications services, absent from the GATS, and broadens its commitments in basic telecommunication services by removing 
the requirement under which international traffic for all basic telecommunications services must go 
through a registered company.
79 Nevertheless, Guatemala indicated that the registered company 
is the only one authorized to provide land-line telephone services.   
4.79.  In construction and related engineering services, Guatemala could adopt or maintain any 
measure restricting its cross-border trade until 2011. After this year, the measures in place would 
be considered as part of Annex I. In this regard, Guatemala indicated that it met this deadline and that currently no reservations apply to this sector.   
4.80.  Education, health related and social services are covered by the liberalization obligations of 
the services and investment chapters, but are subject to a broad reservation on social services with respect to future measures. According to this  reservation, health, social and public education 
and training services are not subject to any commitment. 
4.81.  In tourism and travel related services, Guatemala expanded the sectorial coverage of hotel 
and restaurant services, which in the GATS did not include beverage serving services.
80 It also 
expanded the coverage of travel agencies and tour  operators, which under the GATS is limited to 
tourist marina operators and to modes 2-3. In tourist guides services (not included in the GATS), 
Guatemala made commitments in mode 3 but it reserv es mode 1-2 of this activity to its nationals 
and foreign residents. 
4.82.  In recreational, cultural and sporting activities, Guatemala made full commitments in news 
agency, libraries, archives, museums, sporting, and other cultural and recreational services, all excluded from the GATS. It also made partial commitments in entertaining services, which are 
subject to only one reservation. Guatemala requir es authorizations to hire foreign artists to 
participate in shows and, in certain cases, a domestic quota of artists. Foreign entertaining companies require an authorization to conduct performances. 
4.83.  In transport services, Guatemala made full commitments in internal waterways, space, rail, 
pipeline and other transport services, as well as in services auxiliary to all modes of transport, all 
excluded from the GATS. Yet in maritime services (also absent from the GATS), Guatemala reserves the right to adopt or maintain any no n-conforming measure with respect to market 
access and national treatment for investments and cross-border trade. 
4.84.  In air transport services, Guatemala made full commitments in mode 3.
81 Guatemala also 
made commitments in specialty air services for in modes 1-2, but maintained two reservations. 
Under the first one, Guatemala can authorize fore ign staff on board of a domestic operator to 
provide specialty services for up to three months; an extension is possible if domestic staff is not available. Personnel performing aeronautical duties on board of a foreign aircraft require a licence or certificate to perform such activities, which must be recognized as equivalent by the competent 
authorities. 
4.85.  In road transport (absent from the GATS), Guatemala made full commitments in all 
subsectors, except in freight transportation serv ices. This type of services is subject to a 
                                               
79 Guatemala participated in the Negotiations on Basic Telecommunications of 1996 (WTO document 
GATS/SC/36/Suppl.1 and Rev.1) and ad opted the GATS reference paper. 
80 Under the GATS, mode 1 for hotels and reservation services is unbound due to a lack of feasibility. In 
practice the situation remains therefore unchanged, alth ough no restrictions are applied to mode 1 under the 
Agreement.  
81 Contrary to Chapter 13 on cross-border trade,  Chapter 12 on investments does not exclude air 
services from the scope of application. WT/REG316/1 
 
- 49 - 
 
reservation under which Guatemala can adopt or maintain any non-conforming measure with 
respect to market access and national treatment for cross-border trade.  
4.4.2.3  Honduras 4.4.2.3.1  Horizontal commitments 
4.86.  Under the GATS, Honduras has horizontal limitations in mode 3 (and 4). Under the 
Agreement, Honduras maintained two of these restrictions and introduced three new ones. 
Honduras maintains the restrictions regarding land acquisitions and the operation of small-scale 
business by foreigners. Yet, under the Agreement it allows, subject to authorization, the rent or 
acquisition of urban lands for up 40 years, if it is in the public, economic, social interest of the 
country. It also introduces reservations with respect to the establishment of foreign cooperatives 
in its territory, to the nationality of the beneficiaries of the agrarian reform, and to social 
disadvantageous minorities. In the Agreement, Ho nduras did not list the GATS requirements to 
obtain an authorization to establish a commercial presence.82 
4.4.2.3.2  Sector-specific commitments 
4.87.  Honduras' sector-specific commitments under the Agreement are in general broader than in 
the GATS.83 Tourism and travel related services, restricted under the GATS, are fully liberalized. 
Distribution, education, environmental, constructi on and related engineering services, not included 
in the GATS, are partially liberalized under the Agreement. The remaining sectors are subject to 
reservations in both the GATS and the Agreement, but commitments are deeper under the Agreement, except for financial, social and health related services where there are no commitments.  
4.88.  Table 4.6 compares Honduras' sectoral commitments under the Agreement and under its 
GATS schedule for modes 1-3. 
Table 4.6 Honduras's sector-specific liber alization under the Agreement, excluding 
mode 4 
Sectors (CPC Classification) GATS RTA 
Sectoral 
commitmentsa 
 Sectoral 
commitmentsb 
in the FTA Reservations 
specified in: 
1. Business services  Partial Partial*  
A. Professional Services  0c Partial Annexes I-II 
B. Computer and Related Services  Partial Full - 
C. Research and Development Services  0 Full - 
D. Real Estate Services  0 Full - 
E. Rental/Leasing Services without Operators  0 Full - 
F. Other Business Services  Partial Partial* Annex I 
2. Communication services  Partial Partial*  
A. Postal services  0 Partial Annex I 
B. Courier services  0 Full - 
C. Telecommunication services  Partial Partial* Annexes I-II 
D. Audiovisual services 0 Partial Annex I 
E. Other  0 Full - 
3. Construction and related engineering 
services 0 Partial  
A. General construction work for buildings  0 Full - 
B. General construction work for civil engineering  0 Partial Annex I 
C. Installation and assembly work  0 Full - 
D. Building completion and finishing work  0 Full - 
                                               
82 However, Honduras indicated that it maintains this requirement.  
83Regarding MFN exemptions under the GATS, Honduras exempts measures resulting from its 
agreements with Central America countries to comply with the principle of MFN treatment in all services, 
including financial and telecommunications services. In professional services, it requires authorization for the 
exercise of a professional activity on a reciprocal basis.  The same principle is applied to the issue of licences 
and authorizations in land transpor t services and to the establishmen t of branches of foreign banks. WT/REG316/1 
 
- 50 - 
 
 
Sectors (CPC Classification) GATS RTA 
Sectoral 
commitmentsa 
 Sectoral 
commitmentsb 
in the FTA Reservations 
specified in: 
E. Other  0 Full - 
4. Distribution services  0 Partial  
A. Commission agents' services  0 Full - 
B. Wholesale trade services  0 Partial Annexes I-II 
C. Retailing services   0 Partial Annexes I-II 
D. Franchising   0 Partial Annex I 
E. Other  0 Full - 
5. Education services  0 Partial  
A. Primary education services  0 Partial Annexes I-II 
B. Secondary education services  0 Partial Annexes I-II 
C. Higher education services  0 Partial Annexes I-II 
D. Adult education  0 Partial Annexes I-II 
E. Other education services  0 Partial Annexes I-II 
6. Environmental services  0 Partial  
A. Sewage services  0 Partial Annex I 
B. Refuse disposal services  0 Partial Annex I 
C. Sanitation and similar services  0 Partial Annex I 
D. Other 0 Partial Annex I 
7. Financial services Partial Excluded  
A. All insurance and insurance-related services  Partial - Chapters 12-13 
B. Banking and other financial services Partial - Chapters 12-13 
C. Other  0 - Chapters 12-13 
8. Health related and social services 0 0  
A. Hospital services 0 0 Annex II 
B. Other Human Health Services  0 0 Annex II 
C. Social Services  0 0 Annex II 
D. Other 0 0 Annex II 
9. Tourism and travel related services  Partial Full  
A. Hotels and restaurants (incl. catering)  Partial Full - 
B. Travel agencies and tour operators services  0 Full - 
C. Tourist guides services  0 Full - 
D. Other  0 Full - 
10. Recreational and cultural and sporting 
services 0 Partial  
A. Entertainment services (including theatre, live 
bands and circus services) 0 Partial Annex I 
B. News agency services  0 Partial Annex I 
C. Libraries, archives, museums and other cultural 
services  0 Full - 
D. Sporting and other recreational services  0 Partial Annex I 
E. Other  0 Full - 
11. Transport services  Partial Partial*  
A. Maritime Transport Services  0 Partial Annex I 
B. Internal Waterways Transport  0 Partial Annex I 
C. Air Transport Services  Partial Partial* Annex I 
D. Space Transport  0 Full - 
E. Rail Transport Services  0 Partial Annex I 
F. Road Transport Services Partial Partial* Annex I 
G. Pipeline Transport  0 Full - 
H. Services auxiliary to all modes of transport  0 Partial Annex I 
I. Other Transport Services 0 Full - 
12. Other services not included elsewhere  0 Full - 
a Except as indicated in the GATS horizontal commitments. 
b Except as indicated in the Ag reement horizontal reservations. 
c  "0" means that no commitments have been made. * Means that partial commitments were made both under the GATS and the Agreement, but in general 
commitments under the Agreement are improved. 
 
4.89.  In business services, Honduras adds resear ch, development, real estate, rental and leasing 
services to its schedule. In professional servic es (excluded from the GATS), it made partial 
commitments, while maintaining two reservations. Honduras can maintain or adopt any measure 
relating to professional services with respect to cross-border trade, but agreed to conduct WT/REG316/1 
 
- 51 - 
 
consultations in 2012 to deepen its commitments. The Parties indicated that they have had some 
exchanges in this regard. Moreover, customs agents, as well as assistants, can be only Hondurans.  
4.90.  It also broadens its commitments in other business services. In advertising services, it 
expanded the sectoral and modal coverage which under the GATS was limited to planning, creating 
and placement services of advertising and to modes 2-3. It made full commitments in all 
remaining subsectors, except in services incidental  to fishing and to energy distribution and in 
investigation and security, which are subject to reservations. In services incidental to fishing, 
Honduras applies nationality restrictions to ships, fishing companies, (commercial) fishermen and 
ship captains. In services incidental to energy distribution, electricity dispatch and transmission are reserved to the government. To provide elec trical power distribution services, Honduras 
requires a specific type of legal company. In investigation and security, foreign companies must 
form a joint venture with a domestic company to provide such services and appoint an Honduran 
as manager. Honduras also requires background information of foreign staff and of foreign owners/partners.  
4.91.  In communication services, Honduras continues to reserves the supply of postal services to 
the government but broadens its commitments in the other subsectors. It included courier, audiovisual and other services in its schedule and expanded its commitments in 
telecommunications services. In audiovisuals, Honduras maintained only one restriction which 
reserves senior management positions in newspapers and free news media (radio and television) to its nationals. In telecommunications
84, it expands its sectoral and modal coverage, which under 
the GATS is limited only to certain basic telecommunication services and modes.85 Yet, it continues 
to prohibit the (direct) participation of foreign governments in the provision of public 
telecommunication services. It also reserves the right to maintain or modify the participation in the ownership of the telecommunication estate company and its subsidiaries, which in the GATS is set 
to 10%.  
4.92.   In construction and related engineering services, Honduras made full commitments in all 
subsectors, except in construction works for civ il engineering services which are subject to one 
reservation. Foreign firms must be organized and register according to Honduran law to perform 
civil engineering projects in Honduras, except for specific projects.
86 Higher registration fees apply 
to foreign companies and authorizations are also required for foreign workers willing to participate in such projects. 
4.93.  In distribution services, Honduras made full commitments in commission agents' services 
(as well as in other distribution services) and partial commitments in retailing, wholesale and franchising services where it maintains a few reservations. In franchising services, only Hondurans 
or Hondurans companies can hold a concession. In addition, Honduras reserves the wholesale and 
retail distribution of arms and military equipment to its army; and the sale of petroleum derivatives to its nationals and companies legally established in the country. The majority of the 
company's capital must be Honduran. Finally, Honduras can adopt or maintain any measure 
relating to the import, provision and (wholesale) distribution of oil and its derivatives. 
4.94.  In Education services, no commitments were made in public education and public training 
services (see paragraph 4.56). Moreover Honduras applies nationality restrictions to school 
directors, supervisors, and professors and legal criteria to private schools.  
4.95.  Environmental services (not included in the GATS) are subject only to one reservation under 
the Agreement. Public water distribution, waste disposal, and sanitation and hygiene services are 
reserved to the Estate for modes 1-2. 
4.96.  Health related and social services are not su bject to liberalization, as they are covered by a 
broad reservation on social services which allows Honduras to adopt or maintain any 
non-conforming measure relating to social services such as pensions, pension funds, 
unemployment insurance, social security, social welf are, public education, public training, health 
and childcare. 
                                               
84 Honduras participated in the Negotiations on Basic Telecommunications of 1996 (WTO document 
GATS/SC/38/Suppl.2) and adopted the GATS reference paper. 
85 Under the GATS some of these restrictions were removed in 2005. 
86 Only registration is required in this case.  WT/REG316/1 
 
- 52 - 
 
 4.97.  In tourism and travel related services, Hond uras added tourist guides, travel agencies, tour 
operators and other related services to its schedule. In addition, it expands the sectoral coverage 
of restaurants services, restricted under the GATS.
87 
4.98.  In recreational, cultural and sporting services, Honduras liberalized libraries, archives, 
museums and other cultural and recreational services, not committed under the GATS. In the 
remaining subsectors (excluded from the GATS), it made partial commitments as it maintains a few reservations. In entertaining services, foreig n music artists must register with the competent 
authorities and pay a performance fees. Licences to operate casinos are reserved to Hondurans 
and Honduran companies. The national lottery is reserved to a State institution. Senior managerial positions in newspapers are reserved to Honduran s. In sporting services, foreign soccer players 
must be residents in Honduras and registered with the competent authority. Clubs can registered 
up to four foreign players. 
4.99.  In transport services, Honduras broadened its commitments but maintains reservations in 
all subsectors, except in pipeline, space and other transport services. It expanded its commitments 
in air and road transport (restricted under the GATS) and made partial commitments in maritime, 
internal waterways, rail and services auxiliary to  all modes of transport (all excluded from the 
GATS). In maritime and internal waterways transpor t, it made only one restriction which reserves 
cabotage services to national ships.
88 The national shipping company must be domiciled in 
Honduras and owned primarily by Hondurans. In air transport services, all Parties made full commitments in all subsectors in mode 3.
89 It also made commitments in mode 1 in aircraft repair 
and maintenance services, unbound under the GATS; and added specialty air services,90 but 
subject it to one reservation.91 Suppliers of private air transport services required an authorization 
and must be Honduran.  
4.100.  In rail transport services, Honduras main tains one reservation. Only Honduran companies 
and companies legally established under Honduran law can own subsidiaries of the estate rail 
company. The managerial position of the rail company must be Honduran. 
4.101.  In road transport services, Honduras made full commitments in all subsectors except in 
passenger and freight transportation. The provis ion of public domestic passenger and freight 
transportation services is reserved to Hondur ans and Hondurans companies; and requires an 
operation certificate. On the contrary, public international passenger and freight transportation services may be supplied by foreign nationals an d companies on the basis of reciprocity, but 
preference will be given to nationals in the case of  specific routes. Finally, in services auxiliary to 
all modes of transport, it maintains only one reservation affecting storage and warehousing services. To supply storage services, companies must provide only these services and be organized 
under a specific type of legal entity.  
4.5  Regulatory provisions  4.5.1  Domestic regulation 
4.102.  Article 13.8 on domestic regulation of the Agreement mirrors paragraphs 3 and 4 of GATS 
Article VI. Indeed Article 13.8 requires that in th e case of an application for an authorization to 
supply a service, the applicant must be informed about the decision and, if requested, of the 
status of its application. The only difference with the GATS is that under the Agreement the 
obligation to provide information on the status of the application does not apply to measures 
covered by the Parties' reservations. The criteria the Parties must apply to ensure that qualification requirements and procedures, technical standards and licensing requirements do not constitute 
                                               
87 Under the GATS, mode 1 is unbound for hotels an d restaurants due to technical feasibility. In 
practice, the situation remains unchan ged for this subsector, although there are no restrictions under the 
Agreement. 
88 In exceptional cases, foreign ships can be  authorized to provide such services.  
89 Contrary to Chapter 13 on cross-border trade,  Chapter 12 on investments does not exclude air 
services from the scop e of application.  
90 Specialty air services are defined as air services th at do not involved transportation (Article 13.1).  
91 Under the GATS, commitments are limited to aircra ft repair and maintenance services (modes 2 and 
3); computerized reservation systems (modes 1 and 2) and selling and marketing of  air transport services 
(mode 2). WT/REG316/1 
 
- 53 - 
 
unnecessary barriers to trade, are the same criteria  the GATS requires to develop disciplines in 
this area (GATS Article VI.4). In this respect, the Parties agree to jointly review this article 
following the conclusion of negotiations. 
4.5.2  Recognition 
4.103.  Article 13.10 on the recognition of profession al qualifications of service suppliers reflects 
paragraph 1 to 3 of GATS article VII.92 Yet Article 13.10 further clarifies that when a Party 
recognizes, autonomously or by agreement or arrangement, the education or experience obtained, 
requirements met, or licenses or certifications granted in the territory of a non-Party, the Party is 
not obliged to accord the same recognition to the other Party. The Parties also shall encourage the relevant bodies to develop standards and criteria to grant licences and certifications to services providers with respect to different aspects listed in Annex 13.10. The Parties also agree to promote 
in every professional services and if necessary, mutual recognition and to develop procedures to 
grant temporary licences to professional services suppliers of the other Party. The Parties agree to review the implementation of the provisions on the development of standards every three years. 
As of December 2013, no review had taken place.  
4.5.3  Subsidies 4.104.  Chapter 13 as well as certain provisions of Chapter 12 (i.e. MFN and national treatment, 
and senior management and boards of directors) do not apply to subsidies
93 or grants by a Party 
(see Section 4.1).  
 
4.5.4  Safeguards related to the balance of payments 
4.105.  The Agreement permits the Parties to us e safeguards for balance of payments reasons 
(See Section 5.3).  
4.6  Sector specific provisions on trade in services 
4.6.1   Freight land transport 
4.106.  In freight land transport, Guatemala prohibits that a shipping company hire only one 
provider of land transport services to deal with  more than 10 % of the cargo equipment that the 
company uses in a month. Colombia and Guatemala agree that this measure is a domestic 
regulation, and therefore Guatemala will continue to apply it (Annex 13.8).  
5  GENERAL PROVISIONS OF THE AGREEMENT 5.1  Transparency 
5.1.  Chapter 16 contains provisions on transparency. Under the Agreement, the Parties shall 
designate a contact point to facilitate communications between the Parties on any matter covered by this Agreement (Article 16.2). They must ensu re that their laws, regulations, procedures and 
administrative rulings with respect to any matter covered by the Agreement are promptly 
published (Article 16.3). To the extent possible, the Parties shall notify each other of any measure that may affect the Agreement (Article 16.4), and shall, upon request, provide any information or 
answer any question regarding any proposed or actual measure.  
5.2.  Moreover, the Parties shall ensure that all its administrative procedures regarding the 
application of a regulation are in line with domestic law and follow certain proceedings (e.g. prior notice, provision of information, and opportunity for hearings) (Article 16.5-16.6). The Parties 
                                               
92 Indeed Article 13.10 allows Parties to recognize autonomously or by agreement, the education or 
experience obtained, requirements met, or licenses or certifications granted by a Party. In case of an agreement, the Party must give an  opportunity to the other Party to join; and where the Party granted 
recognition autonomously, it should provide the other Party the opportunity to demonstrate that it also 
qualifies for such recognition. Recognition must not be  used as a mean of discr imination among Parties or 
restriction to trade in services. 
93 Including support funds that are administer ed by private entities (Annex 13.2 (4)(d)). WT/REG316/1 
 
- 54 - 
 
 must establish or maintain judicial or administrative tribunal or procedures to review and correct 
final administrative actions for matters covered by the Agreement (19.7). The Parties commit to 
co-operate to fight and prevent corruption (Article 16.9) and to promote free competition (Article 16.10).  
5.2  Current payments and capital movements 
5.3.  The Agreement includes provisions on the movement of payments and capital across borders 
relating to services and to investments. All transfers and payments relating to the cross-border 
supply of services are to be made freely and without any restriction or delay (Article 13.11). The 
same obligation applies to transfers relating to covered investments (Article 12.7). The Parties can restrict transfers in the case of: (a) bankruptcy, insolvency, firm restructuring
94 or the protection 
of the rights of creditors; (b) issuing, trading, or dealing in securities; (c) penal offences; 
(d) financial reporting or record keeping of transfers when necessary to assist law enforcement or 
financial regulatory authorities; (e) compliance with orders or judgments in judicial or administrative proceedings or (f) compliance with labour or tax obligations
95 (Articles 12.7 and 
13.11).  
5.4.  In order to ensure macroeconomic stabilit y, the Parties can adopt measures relating to 
inflows of foreign capital (Article 12.7).  
5.3  Safeguards  
5.5.  In the event of serious difficulties rela ted to the balance-of-payments, the Parties can 
maintain or adopt safeguard measures to restrict trade in goods, trade in services, and payments and capital movements, including those related to investments. Such measures are to be applied 
on a temporary and non-discriminatory basis; and be notified as soon as possible to the other 
Parties (Article 19.3).  
5.4  Exceptions 
5.6.  Chapter 19 on Exceptions describes the ci rcumstances under which the Parties can derogate 
from the provisions in the Agreement. The Ch apter covers general and security exceptions, 
disclosure of information, taxation and balance of payment measures.  
5.7.  Articles XX of GATT 1994 and XIV of the GATS (on General Exceptions) are incorporated into 
the Agreement. GATT Article XX applies to Chapters 3 to 10 to the extent that provisions apply to 
goods; while GATS Article XIV applies to Chapters 12-13, 15, and to chapters 3-10 to the extent that provisions apply to services (Article 19.1).  
5.8.  The Agreement does not apply to taxation measures and does not affect the rights and 
obligations of the Parties under any tax convention, unless otherwise specified. In the event of any inconsistency between the Agreement and a tax co nvention, the convention will prevail to the 
extent of the inconsistency (Article 19.5). If a tax measure is considered as an expropriation or 
contrary to the Agreement's investment provisions, the Parties can have recourse to Article 12.8 (Expropriation and Compensation) and to the Agreement's DSM (Article 12.18).  
5.9.  Under the Agreement, the Parties have no obligation to furnish or allow access to any 
information contrary to its security interests and can apply any measure they consider necessary to keep peace, maintain public order and protect their essential security interests (Article 19.2). They are also not obliged to provide access to confidential information whose disclosure could 
impede law enforcement, be contrary to public interest or damage the commercial interests of 
companies (public or private) (Article 19.4). 
5.5  Accession and Withdrawal 
5.10.  The Agreement has provisions on accessions and terminations. Any country can accede to 
the Agreement subject to the terms and conditions  agreed between the Parties (Article 21.4). The 
                                               
94 In the case of transfers related to investments only. 
95 In the case of transfers related to investments only. WT/REG316/1 
 
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Agreement will enter into force for the Party 30 days following its notification that all its internal 
requirements have been finalized.  
5.11.  Any Party can end the Agreement by a written notification to the other Parties. The 
termination will take effect six months after th e notification, unless the Parties agree otherwise. 
The provisions affecting covered investments made before the Agreement's termination will remain 
effective for ten years following the termination da te. If Colombia withdraws with respect to all 
Parties, the Agreement will be without effect (Article 21.5). 
5.6  Institutional framework 
5.12.  The Agreement foresees the creation of a Free Trade Commission that comprises 
ministerial-level representatives from each Party (Article 17.1). It further establishes Committees on agricultural trade, trade in goods, rules of  origin, trade facilitation, SPS and TBT measures 
(Annex 17.5).  In addition, the Commission can create other Committees and working groups of 
experts. The Committees could also create expert groups to conduct analysis they consider necessary to fulfil their mandate (Article 17.6). 
5.13.  The Commission is the main institutional bo dy of the Agreement and is responsible, among 
others, for supervising its implementation and developments; resolving any dispute arising from the Agreement in accordance with the Agreement' s DSM, supervising the work of all committees; 
and considering any other matter that may affect the operation of the Agreement. The 
Commission can also modify the Parties' tariff schedules, transition periods and rules of origin. It shall take all its decisions by consensus and meet at least once a year (Article 17.1). As of December 2013, the Commission had met twice (2010 and 2011).  
5.14.  Each Party will appoint an Agreement coor dinator, whose functions will include to prepare 
the Commission meetings and follow-up on any of its decisions (Article 17.2). 
5.7  Dispute settlement 
5.15.  The Agreement provides for a mechanism to settle disputes between the Parties 
(Chapter 18) and between a Party and an investor of the other Party (Chapter 12, Section B).  
5.16.  Except if specified otherwise in the Agreement, Chapter 18 applies to any dispute between 
the Parties related to the interpretation or a pplication of the Agreement or wherever a Party 
considers that:  
 an actual or proposed measure of the other Party is or would be inconsistent with its 
obligations;  
 an actual measure of the other Party
96, consistent with the Agreement, nullifies or 
impairs the benefits that could have resulted from the application of Chapters 2 (on trade in goods), 3 (on technical barriers) and 13 (on cross-border trade); or 
 the other Party has otherwise failed to carry out its obligations (Article 18.3). 
5.17.  For disputes regarding any matter arising under the Agreement and the WTO Agreement (or 
any other agreement of which both Parties are members) the complaining Party may select the 
forum for the settlement of the dispute. Once the forum has been selected, it must be used to the 
exclusion of the other (Article 18.4).  
5.18.  The Parties will endeavour to resolve through consultations any matter described in Article 
18.3 (see above) (Article 18.6).
97 If a Party fails to respond to the request of consultations or 
consultations do not resolve the issue98, the complaining Party can request the establishment of a 
                                               
96 Except for those measures that are covered by th e provision on general exceptions (Article 19.1)  
97 In the case of perishable goods, the timeframes es tablished in Chapter 18, ar e to be shorten by half 
(Article 18.5). 
98 The complaining Party can request the establishment of a dispute settlement (DS) panel or a meeting 
of the Commission if the issue has not been resolved  within 60 days from the receipt of the request for WT/REG316/1 
 
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 dispute settlement (DS) panel or the meeting of the Free Trade Commission (hereafter "the 
Commission"). A panel cannot be established to re view a proposed measure (Article 18.11). If the 
complaining Party decides to request (in writing) a meeting of the Commission (Articles 18.7-18.8), and an agreement is reached following such a meeting, it shall be implemented within three 
months. Following its request for a meeting of the Commission, the complaining Party can still 
request the establishment of a dispute settlement (D S) panel, if the issue has not been resolved:  
 within 30 days of the date of receipt of the request for a meeting of the Commission or if 
the meeting did not take place; 
 within 30 days following the meeting of the Commission;  
 and that the complaining Party considers that the other Party has not complied with the 
Commission's agreement within the agreed timeframe (i.e. three months, unless 
otherwise agreed) (Article 18.11). 
5.19.  The Panel will consist of three panellists (Article 18.14) and will operate according to the 
Rules of Procedures established by the Commission (Article 18.15). The Panel will present a report 
to the Parties within 90 days from the date the panel was established. The report will contain the 
Panel's conclusions, determinations on the issue under analysis, as well as the panellists' opinions on issues where opinions were divergent (Artic le 18.17). Following receipt of the report, the 
Parties will implement it within six months, unless they agreed otherwise. Failure to notify the 
claiming Party that the report has been implemente d within five days following the deadline of its 
implementation can lead to a suspension of benefits (of equivalent effect) by the complaining Party. In suspending benefits the Party should first consider benefits in the same sector(s) as 
those affected by the measures or other matter that the Panel has found to be inconsistent with 
the obligations under the Agreement; if it considers that suspending benefits in the same sector is ineffective or not practicable, it may do so in ot her sectors. The suspension of benefits shall apply 
until the Party complained against has complied or until the dispute has been resolved 
(Article 18.20). Chart 5.1 summarizes the procedure for the settlement of a dispute. 
5.20.  Regarding the settlement of private co mmercial disputes, the Agreement prohibits the 
Parties from providing a right of action under their domestic law against the other Party on the 
basis that a measure of the other Party is inconsistent with the Agreement (Article 18.23). The Parties shall encourage and facilitate the use of arbitration and other means of alternative dispute resolution for the settlement of international commercial disputes between private parties in the 
Parties territory (Article 18.24). 
5.21.  Chapter 12 describes the settlement of investment disputes between a Party and an 
investor of the other Party (Chapter 12, Section B). Under this mechanism, investors (on their own 
behalf or that of an enterprise) can make a claim and seek redress for damages resulting from a 
breach of the host Party' obligations (Article 12.18). 
                                                                                                                                               
consultations (i.e. 30 for perishable goods) or if the Pa rty fails to respond to the consultations inquiry within 
10 days following the notification (Articles 18.7-18.8). WT/REG316/1 
 
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Chart 5.1 Dispute Settlement Mechanism under the Agreement  
  Consultations (Art. 18.6)   Failure to respond (Art. 18.6)  
 Request of a meeting of the Free Trade Commission (Art. 18.6) 
 Meeting of the Free Trade Commission (Art. 18.6) 
 Non-Compliance  Agreement reached 
and Compliance Issue not resolved   
(Art. 18.6)  
   Issue resolved  
(Art. 18.6)  
  
Max. 30-60 days  Max. 10 days Max. 10 days
Max. 30 days  
Max. 30 days  Max. 30-60 days   Consultations request (Art. 18.6) 
Max. 3 months
 Implementation and termination 
(Art. 18.19)  Max. 6 months and 5 days   Composition of DS Panel (Art. 18.14)
Panel and Chair selection: within 15 days  
 Initial Panel report 
(Art. 18.17)  
  
 Report Publication 
(Art. 18.9)  Parties comments 
(Art. 18.17)  
  
 Panel report sent to the Parties 
(Art. 18.17) Max. 15 days
15 daysMax. 90 days
Max. 30 days  
Max. 6 months   Request for the establishment of a DS Panel (Art. 18.7-18.8) 
 Non compliance 
(Art. 18.19)  
  
 The Party complained against 
request a panel (Art.18.20)    
   Suspension of the benefits by  
the Complaining Party (Art. 18.19)  
  
Max 15 days
 Panel establishment  
(Article 18.21) 
 Panel decision 
(Article 18.21)  
 Max 30 daysWT/REG316/1 
 
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 5.8  Relationship with other agreements concluded by the Parties 
5.22.  The Parties affirm their existing rights an d obligations with respect to each other under the 
WTO Agreement and other agreements to which they are party (Article 1.3).
99 
5.23.  Table 5.1 lists the notified and non-notified (if any) trade agreements that have Colombia, 
El Salvador, Guatemala or Honduras as me mbers (excluding the current Agreement). 
Table 5.1 Colombia, El Salvador, Honduras an d Guatemala: Participation in other RTAs 
(notified and non-notified in force), as of 28 January 2014  
Partner / Agreement Date of entry  
into force Type of 
Agreement GATT/WTO Notification 
Year WTO Provision 
COLOMBIA 
European Union 01.08.13 Goods & Services 2013 GATT Art. XXIV & GATS Art. V  
United States 15.05.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V  
Canada 15.08.11 Goods & Services 2011 GATT Art. XXIV & GATS Art. V  
EFTA 01.07.11 Goods & Services 2011 GATT Art. XXIV & GATS Art. V  
Chile 08.05.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V  
Mexico 01.01.95 Goods & Services 2010 GATT Art. XXIV & GATS Art. V  
GSTP 19.04.89 Goods 1989 Enabling Clause 
Andean Community 25.05.88 Goods 1990 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
LAIA - Accession of Panama 03.05.12 Goods - Not notified 
Andean Community  14.12.06 Services - Not notified 
MERCOSUR - Andean 
Community (except Peru) 
[LAIA,AAP.CE N°59] 05.01.05 Goods - Not notified 
Cuba [LAIA,AAP.CE N°49] 10.07.01 Goods - Not notified 
CARICOM [LAIA, AAP.A25TM 
N°31] 01.01.95 Goods - Not notified 
Panama [LAIA, AAP.A25TM 
N°29] 01.01.95 Goods - Not notified 
LAIA - Seeds [AAP.AG N°2] n.a.a Goods - Not notified 
LAIA - Cultural Goods [LAIA 
AR.CEYC N°7] 01.01.89 Goods - Not notified 
Preferences in favour of 
Ecuador [LAIA, AR.AM N°2] 19.10.93 Goods - Not notified 
Preferences in favour of 
Paraguay [LAIA, AR.AM N°3] 03.09.85 Goods - Not notified 
Preferences in favour of 
Bolivia [LAIA, AR.AM N°1] 19.10.93 Goods - Not notified 
EL SALVADOR  
European Union (EU- Central 
America) 01.10.13b Goods & Services 2013 GATT Art. XXIV & GATS Art. V  
Mexico-Central America  01.09.12c Goods & Services 2014 GATT Art. XXIV & GATS Art. V  
Cuba 01.08.12 Goods 2013  Enabling clause 
Chinese Taipei 01.03.08 Goods & Services 2010 GATT Art. XXIV & GATS Art. V  
DR-CAFTA 01.03.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V  
Panama (Panama-Central 
America) 11.04.03 Goods & Services 2005 GATT Art. XXIV & GATS Art. V  
Chile (Chile-Central America) 01.06.02 Goods & Services 2004 GATT Art. XXIV & GATS Art. V  
                                               
99 The Parties, also indicated, that in case a provision from the WTO Agreement is amended, and this 
provision was incorporated in the Agreement, the Pa rties shall undertake consul tations with a view of 
amending the corresponding provision in the Agreement. Amendments procedures shall be in accordance with Article 21.2.   WT/REG316/1 
 
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Partner / Agreement Date of entry  
into force Type of 
Agreement GATT/WTO Notification 
Year WTO Provision 
Dominican Republic 
(Dominican Republic-Central 
America) 04.10.01 Goods & Services 2012 GATT Art. XXIV & GATS Art. V  
CACM 04.06.61 Goods 1961 GATT Art. XXIV 
CACM – Accession of Panama 06.05.13 Goods - Not notified 
Venezuela (LAIA, AAP.A25TM 
N°27) 09.07.86 Goods - Not notified 
GUATEMALA  
European Union (EU- Central 
America) 01.12.13b Goods & Services 2013 GATT Art. XXIV & GATS Art. V  
Mexico-Central America  01.09.13c Goods & Services 2014 GATT Art. XXIV & GATS Art. V  
Chile (Chile - Central America) 23.03.10 Goods & Services 2012 GATT Art. XXIV & GATS Art. V  
Panama (Panama - Central 
America) 20.06.09 Goods & Services 2013 GATT Art. XXIV & GATS Art. V  
Chinese Taipei 01.07.06 Goods & Services 2011 GATT Art. XXIV & GATS Art. V  
CAFTA-DR 01.03.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V  
Dominican Republic - Central 
America 15.10.01 Goods & Services 2012 GATT Art. XXIV & GATS Art. V  
CACM 04.06.61 Goods 1961 GATT Art. XXIV 
CACM – Accession of Panama 06.05.13 Goods - Not notified 
Cuba (LAIA, AAP.A25TM N°36) 18.05.01 Goods - Not notified 
Venezuela (LAIA, AAP.A25TM 
N°23) 10.04.86 Goods - Not notified 
HONDURAS  
European Union (EU- Central 
America) 01.08.13b Goods & Services 2012 GATT Art. XXIV & GATS Art. V  
Mexico-Central America  01.01.13c Goods & Services 2014 GATT Art. XXIV & GATS Art. V  
Panama (Panama-Central 
America) 09.01.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V  
Chile (Chile-Central America) 19.07.08 Goods & Services 2011 GATT Art. XXIV & GATS Art. V  
Chinese Taipei 15.07.08 Goods & Services 2010 GATT Art. XXIV & GATS Art. V  
DR-CAFTA 01.04.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V  
Dominican Republic 
(Dominican Republic-Central America) 19.12.01 Goods & Services 2012 GATT Art. XXIV & GATS Art. V
 
CACM 04.06.61 Goods 1961 GATT Art. XXIV 
CACM – Accession of Panama 06.05.13 Goods - Not notified 
Venezuela (LAIA, AAP.A25TM 
N°16) 22.09.86 Goods - Not notified 
 
Source: WTO Secretariat.  
 
a Colombia remarked that the agreement was signed on 22 November 1991, but it did not adopt it. 
However, Article 22 of this agreement provides that the agreement will enter into force when at least three of the parties have implemented it. 
 b
 According to the notifications made in February 2013 (see WTO documents WT/REG332/N/1 and S/C/N/680), the "Provisional application of the Agreem ent by all signatory parties is expected in the 
course of the second quarter 2013". Notifications regarding the dates of entry into force of the 
Agreement between the EU and Central American countries are pending. 
 
 
c The Agreement between Mexico and Central America is  in force for all parties. In accordance with 
Article 21.7 and without prejudice to the transitional provisions described in Article 21.8 of this agreement, the Parties indicated that the previous  trade agreement between Mexico and El Salvador, 
Guatemala and Honduras (i.e. Mexico-Northern Tr iangle) has become inactive (WTO Documents 
WT/REG349/N/1/Rev.1, S/C/N/717/Rev.1 and WT/REG/GEN/N/7). 
   WT/REG316/1 
 
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EFTA:  European Free Trade Association. 
GSTP:   Global System of Trade Preferences among Developing Countries. 
LAIA:  Latin American Integration Association. DR-CAFTA: Dominican Republic – Central America – United States Free Trade Agreement. TPKM:  The separate customs Territory of Taiwan, Penghu, Kinmen and Matsu. 
CACM:   Central American Common Market.  
5.24.  Upon the Agreements' entry into force, the Partial Scope Agreements (AAP) under the LAIA 
framework between Colombia and Guatemala (AAP No.5), El Salvador (AAP No.8) and Honduras (AAP No.9), are no longer in force, except for the tariff preferences granted under the Partial 
Scope Agreement No.8 and No.9. The lines subject to such preferences were excluded from the 
Agreement. These lines as well as their prefer ences under these Partial Scope Agreements are 
listed in the Appendix of Annex 3.4. For the Pa rtial Agreement between Colombia and El Salvador, 
15 lines (8 digits) are listed, while for the Pa rtial Agreement between Colombia and Honduras, 
there are 12 lines (8 digits). 
5.9  Intellectual property rights 
5.25.  There are no provisions on intellectual property rights.  
5.10  Government procurement 5.26.  Chapter 11 contains the Parties' commitments and procedures in government procurement. 
It applies in general to any measure affecting procurement by covered government entities of 
goods and services, including construction services using open bidding in accordance with their 
legislation. The Parties' lists of covered governmental entities are given in Annex 11.1, no thresholds are indicated. The Chapter does not apply, among others, to State aid, and banking and 
financial services relating to public debt (Article 11.1).  
5.27.  The Chapter does not apply to:  
 non-contractual agreements or any form of assistance that a Party provides; 
 purchases funded by grants, loans, or other assistance, where their provisions are 
subject to conditions inconsistent with the Chapter; 
 the procurement of fiscal agency or deposi tary services, liquidation and management 
services for regulated financial institutions and sale and distribution services relating to 
the public debt; 
 hiring of government employees and related employment measures; or 
 purchases made under exceptionally advantageous conditions and limited in time.  
5.28.  The general principles governing the procedures of government procurement are national 
treatment, non-discrimination and transparency. Th e Parties agree to grant national treatment to 
each other's products, services and suppliers. They also commit not to discriminate between 
suppliers established locally based on the degree of foreign affiliation or ownership or on the origin 
of the goods or services offered. In addition, th e Parties will conduct procurement proceedings in a 
transparent (including appropriate advertising) and non-discriminatory manner (Article 11.2). 
5.29.  Nothing in Chapter 11 shall be construed to prevent a Party from adopting or maintaining 
measures necessary to protect, among others, intellectual property, public order, and human, 
animal, and plant life (Article 11.3). 
5.30.  The Parties will meet within the first year  following the entry into force of Agreement to 
review Chapter 11, and then every two years wi th the objective to expand the coverage and 
eventually market access to providers of the ot her Parties (Article 11.4). As of December 2013, 
various meetings had taken place in this respect.   WT/REG316/1 
 
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5.31.  Neither Colombia, El Salvador, Guatemala nor Honduras are party to the WTO Government 
Procurement Agreement (GPA); and only Colombia has been an observer since February 1996. 
5.11  Electronic commerce 5.32.  Chapter 14 contains provisions on electronic commerce. The Parties recognized the 
applicability of WTO rules to e-commerce (Article 14.2). They also affirm that any measure 
affecting the supply of a service conducted by electronic means (Article 14.3) is covered by Chapter 12 (Investment) and Chapter 13 (Cross-bord er trade in services), as well as by any 
exception or disconfirming measure. They also proh ibit the application of customs duties, fees or 
charges on the import or export of products deliver ed electronically (Article 14.4). Yet, the Parties 
reserve the right to impose internal taxes or charge s on the sale of such goods, provided that they 
are not inconsistent with the Agreement (Article 14.2). They further commit not to discriminate 
among digital products
100 based on its origin and characteristics and to grant MFN treatment, 
except if covered by a disconfirming measure (Article 14.4). The Chapter also includes provisions to enhance transparency, consumers' protection , electronic authentication and promote co-
operation (Articles 14.5-14.8). 
5.12  Competition policy 5.33.  The Parties will promote measures that foster free competition and sanction 
anti-competitive practices (Article 16.10). 
                                               
100 Electronically transmitted. WT/REG316/1 
 
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ANNEX 1 
1. Tables A1.1 (Colombia) and A1.2 (Northern Tria ngle) present the Parties' tariff elimination 
schedule overall and by type of product. In the ca se of Colombia, the share of duty free lines went 
from 4% to about 64% for El Salvador and Guatemala upon the Agreement's into force; and to 
77% for Honduras. In addition, the overall average tariff fell to 3.7% (Honduras) and 6% (El 
Salvador and Guatemala), from 12.1%. For agricultural goods, average tariffs went down to 11.4% (Honduras) and 11.7% (El Salvador and Guatemala), from 17.8%, while for non-
agricultural goods, they were of 2.5% (Hondura s) and 5.2% (El Salvador and Guatemala), instead 
of 11.3%. By 2020, almost all commitments in agricultural and non-agricultural products will have been implemented. At this date, between 63.9% (Guatemala) and 64.9% (Honduras) of 
agricultural tariff lines will be duty-free; and between 78.2% (Guatemala ) and 93.5% (Honduras) 
of tariff lines for non-agricultural products. At the end of the implementation period, in 2029, the 
share of liberalized tariffs lines for non-agricultur al goods will be the same as in 2020, while for 
agricultural products the share will vary between 64.4% (Guatemala) and 65.6% (Honduras), 
slightly higher than in 2020. Of the Northern Triangle' countries, Honduras will be the one 
benefiting from the largest number of (overall ) duty-free lines (89.8%) in 2029, and from the 
lowest average tariff (2%).  
Table A1.1 Colombia: Indicators of MFN tari ff rates and preferential rates for imports 
Origin of 
goods Year All products Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFNb 2010 12.1 12.7 4.0  17.8 18.1 1.8 11.3 11.8 4.4  
El Salvado r 2010 6.0 16.8 64.1 11.7 21.2 44.1 5.2 15.7 67.1 
  2011 5.7 15.9 64.1  11.1 20.1 44.1 4.9 14.8 67.1  
  2012 5.3 15.0 64.1 10.5 19.0 44.1 4.6 13.9 67.2 
  2013 5.0 14.0 64.2  9.9 17.9 44.1 4.3 13.0 67.2  
  2014 4.7 17.5 73.0 9.3 22.7 58.0 4.0 16.2 75.3 
  2015 4.6 17.4 73.3  9.2 23.6 60.1 3.9 15.9 75.4  
  2016 4.5 17.2 73.3 9.1 23.3 60.1 3.9 15.7 75.4 
  2017 4.5 16.9 73.3  9.0 23.1 60.1 3.8 15.5 75.4  
 2018 4.4 16.7 73.3 8.9 22.9 60.2 3.7 15.2 75.4 
  2019 3.9 18.3 76.8  5.9 24.2 63.5 3.7 17.4 78.8  
  2020 4.4 19.1 76.9 8.8 25.8 64.8 3.7 17.4 78.8 
  2021 4.4 19.1 76.9  8.8 25.8 64.8 3.7 17.4 78.8  
  2022 4.4 19.1 76.9 8.8 25.7 64.8 3.7 17.4 78.8 
  2023 4.4 19.1 76.9  8.8 25.7 64.8 3.7 17.4 78.8  
  2024 4.4 19.1 77.0 8.8 26.1 65.2 3.7 17.4 78.8 
  2025 4.4 19.1 77.0  8.8 26.1 65.2 3.7 17.4 78.8  
  2026 4.4 19.1 77.0 8.8 26.1 65.2 3.7 17.4 78.8 
 2027 4.4 19.1 77.0  8.8 26.1 65.2 3.7 17.4 78.8  
  2028 4.4 19.1 77.0 8.8 26.1 65.2 3.7 17.4 78.8 
  2029 4.4 19.1 77.0  8.8 26.1 65.2 3.7 17.4 78.8  
Guatemala 2010 6.0 16.7 63.9 11.7 20.8 43.3 5.2 15.7 67.0 
  2011 5.7 15.9 63.9  11.1 19.8 43.3 4.9 14.8 67.0  
  2012 5.4 15.0 63.9 10.5 18.7 43.3 4.6 14.0 67.0 
  2013 5.1 14.1 63.9  9.9 17.7 43.3 4.4 13.2 67.1  
  2014 4.8 17.1 71.8 9.4 22.5 57.3 4.1 15.8 74.1 
  2015 4.7 17.0 72.1  9.2 23.3 59.4 4.0 15.5 74.1  
  2016 4.6 16.7 72.1 9.1 23.1 59.4 4.0 15.3 74.1 
  2017 4.6 16.5 72.2  9.0 22.9 59.4 3.9 15.0 74.2  
  2018 4.5 16.3 72.2 9.0 22.7 59.5 3.8 14.8 74.2 
  2019 4.4 18.6 76.1  8.9 24.4 62.5 3.7 17.2 78.2  
 2020 4.4 18.8 76.3 8.8 25.3 63.9 3.7 17.2 78.2 
 2021 4.4 18.8 76.3  8.8 25.3 63.9 3.7 17.2 78.2  
 2022 4.4 18.8 76.3 8.8 25.3 63.9 3.7 17.2 78.2 
 2023 4.4 18.7 76.3  8.8 25.3 63.9 3.7 17.2 78.2  
 2024 4.4 18.8 76.3 8.8 25.6 64.3 3.7 17.2 78.2 
  2025 4.4 18.8 76.3  8.8 25.6 64.4 3.7 17.2 78.2  
  2026 4.4 18.8 76.3 8.8 25.6 64.4 3.7 17.2 78.2 
  2027 4.4 18.8 76.3  8.8 25.6 64.4 3.7 17.2 78.2  
  2028 4.4 18.8 76.3 8.8 25.6 64.4 3.7 17.2 78.2 
  2029 4.4 18.8 76.3  8.8 25.6 64.4 3.7 17.2 78.2  WT/REG316/1 
 
- 63 - 
 
Origin of 
goods Year All products Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
Honduras 2010 3.7 16.0 76.8 11.4 20.8 44.5 2.5 13.8 81.7 
  2011 3.4 14.5 76.8  10.8 19.7 44.5 2.2 12.2 81.7  
  2012 3.0 13.1 76.8 10.2 18.6 44.5 1.9 10.6 81.8 
  2013 2.7 11.6 76.9  9.6 17.5 44.5 1.6 9.0 81.8  
  2014 2.3 16.6 85.7 9.0 22.0 58.2 1.3 13.3 89.9 
  2015 2.3 16.5 86.0  8.9 22.9 60.4 1.3 12.8 89.9  
  2016 2.2 16.0 86.0 8.8 22.7 60.4 1.2 12.2 89.9 
  2017 2.1 15.6 86.0  8.7 22.4 60.4 1.2 11.6 89.9  
  2018 2.1 15.1 86.0 8.6 22.3 60.5 1.1 11.0 89.9 
  2019 2.0 19.7 89.5  8.5 24.0 63.6 1.0 16.1 93.5  
  2020 2.0 20.0 89.7 8.5 24.9 64.9 1.0 16.1 93.5 
  2021 2.0 20.0 89.7  8.5 24.9 64.9 1.0 16.1 93.5  
  2022 2.0 20.0 89.7 8.5 24.9 64.9 1.0 16.1 93.5 
  2023 2.0 20.0 89.7  8.5 24.8 64.9 1.0 16.1 93.5  
  2024 2.0 20.1 89.8 8.5 25.3 65.6 1.0 16.1 93.5 
 2025 2.0 20.1 89.8  8.5 25.3 65.6 1.0 16.1 93.5  
 2026 2.0 20.1 89.8 8.5 25.3 65.6 1.0 16.1 93.5 
  2027 2.0 20.1 89.8  8.5 25.3 65.6 1.0 16.1 93.5  
  2028 2.0 20.1 89.8 8.5 25.3 65.6 1.0 16.1 93.5 
  2029 2.0 20.1 89.8  8.5 25.3 65.6 1.0 16.1 93.5  
a WTO Definition. 
b According to the Decision N°2 of the administrative council to the Agreement, the first period of 
tariff phase-out for Guatemala went from 12 November 2009 to 31 December 2010. For calculations purposes, 2010 (instead of 2009) is thus considered as the Agreement's first year of implementation 
in the case of Guatemala.  
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations; for the calculation of averag es, specific rates are excluded and the ad valorem  parts of 
alternate rates are included.  
 Based on HS 2007 nomenclature.   Source: WTO estimates based on data pr ovided by Colombia and WTO-IDB.  
 
2. In the case of El Salvador, the share of duty-free lines went from 47.1% to 53.6% upon the 
Agreement's entry into force and the overall tariff  faced by Colombian exporters fell to 5.4% from 
6.3%. By 2020, about 72% of all products (non-agric ultural and agricultural) will be liberalized. At 
this date, 62.6%% and 73.5% of agricultural and non- agricultural tariff lines (respectively) will be 
duty-free. At the end of the impl ementation, in 2029, 75.3% of tariff lines will be liberalized for all 
goods (69.1% for agriculture and 76.3% for non-agriculture).  
Table A1.2. Northern Triangle: Indicators of MFN tariff rates and preferential rates for 
imports from Colombia 
a. El Salvador 
Origin of 
goods Year All products Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2010 6.3 11.9 47.1  12.9 17.2 25.0 5.2 10.5 50.8  
Colombia 2010 5.4 11.6 53.6 10.9 17.6 38.2 4.5 10.2 56.2 
  2011 5.1 10.9 53.6  10.4 16.8 38.2 4.2 9.6 56.2  
  2012 4.8 10.3 53.6 9.9 16.0 38.2 3.9 8.9 56.2 
  2013 4.4 9.6 53.6  9.4 15.2 38.2 3.6 8.3 56.2  
  2014 4.1 11.2 63.1 8.9 17.6 49.6 3.3 9.6 65.4 
  2015 4.0 10.8 63.2  8.6 17.1 49.6 3.2 9.3 65.5  
  2016 3.8 10.4 63.2 8.4 16.8 50.1 3.1 8.9 65.5 
  2017 3.7 10.0 63.2  8.1 16.3 50.1 2.9 8.5 65.5  
  2018 3.6 9.7 63.2 7.9 15.8 50.1 2.8 8.2 65.5 
  2019 3.4 12.0 71.7  7.7 20.1 61.9 2.7 10.1 73.3  
  2020 3.4 12.0 71.9 7.6 20.4 62.6 2.7 10.1 73.5 
  2021 3.4 12.0 72.1  7.6 20.6 63.4 2.7 10.0 73.5  
  2022 3.3 11.9 72.1 7.5 20.5 63.4 2.6 10.0 73.5 
  2023 3.3 11.9 72.1  7.5 20.4 63.5 2.6 9.9 73.5  
  2024 3.3 13.2 75.1 7.4 22.9 67.7 2.6 11.0 76.3 
  2025 3.3 13.2 75.1  7.4 23.1 68.1 2.6 11.0 76.3  WT/REG316/1 
 
- 64 - 
 
 
Origin of 
goods Year All products Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
  2026 3.3 13.2 75.1 7.4 23.1 68.1 2.6 11.0 76.3 
  2027 3.3 13.2 75.1  7.4 23.1 68.1 2.6 11.0 76.3  
  2028 3.3 13.2 75.1 7.4 23.1 68.1 2.6 11.0 76.3 
  2029 3.3 13.3 75.3  7.4 23.9 69.1 2.6 11.0 76.3  
a WTO Definition. 
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. Based on HS 2007 nomenclature.  
 Source: WTO estimates based on data pr ovided by El Salvador and WTO-IDB. 
 
3. For Guatemala, 47.3% of its tariff lines were duty free on an MFN basis in 2010; this share 
was 23.3% and 51.4% for agricultural and non-ag ricultural products, respectively. Upon the 
Agreement's entry into force, the share of duty-f ree lines for imports from Colombia increased to 
54.3% and the overall tariff fell to 4.8% from  5.9%. By 2020, 60.8% and 71.7% of agricultural 
and non-agricultural tariff lines (respectively) will be liberalized; in total these lines represent 70% 
of Guatemala's tariff lines. At the end of the impl ementation, in 2029, these shares will be slightly 
higher, as 73.7% of tariff lines will be liberalized for all products, 67.1% for agricultural goods and 74.9% for non-agricultural goods.  
b. Guatemala 
Origin of 
goods Year All products Agricultural products a Non-agricultural products 
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2010 5.9 11.2 47.3  10.0 13.0 23.3 5.2 10.7 51.4  
Colombia 2010 4.8 10.5 54.3 7.7 12.6 38.4 4.3 10.0 57.1 
  2011 4.5 9.9 54.3  7.3 11.9 38.4 4.1 9.4 57.1  
  2012 4.3 9.3 54.3 6.9 11.1 38.4 3.8 8.8 57.1 
  2013 4.0 8.7 54.3  6.4 10.4 38.4 3.5 8.3 57.1  
  2014 3.7 9.8 62.6 6.0 11.5 48.1 3.3 9.4 65.1 
  2015 3.6 9.5 62.6  5.7 11.0 48.1 3.2 9.1 65.1  
  2016 3.4 9.2 62.6 5.5 10.7 48.5 3.1 8.8 65.1 
  2017 3.3 8.8 62.6  5.3 10.2 48.5 3.0 8.5 65.1  
  2018 3.2 8.5 62.6 5.0 9.8 48.5 2.9 8.2 65.1 
  2019 3.1 10.2 70.0  4.8 12.1 60.2 2.8 9.7 71.7  
  2020 3.0 10.1 70.1 4.8 12.1 60.8 2.7 9.6 71.7 
  2021 3.0 10.0 70.1  4.7 12.1 61.2 2.7 9.5 71.7  
  2022 3.0 10.0 70.3 4.6 12.0 61.4 2.7 9.5 71.9 
  2023 2.9 9.9 70.3  4.6 12.0 61.6 2.7 9.4 71.9  
  2024 2.9 11.0 73.5 4.6 13.2 65.6 2.6 10.5 74.9 
  2025 2.9 11.0 73.6  4.5 13.4 66.0 2.6 10.5 74.9  
  2026 2.9 11.0 73.6 4.5 13.4 66.0 2.6 10.5 74.9 
  2027 2.9 11.0 73.6  4.5 13.4 66.0 2.6 10.5 74.9  
  2028 2.9 11.0 73.6 4.5 13.3 66.0 2.6 10.5 74.9 
  2029 2.9 11.1 73.7  4.5 13.8 67.1 2.6 10.5 74.9  
a WTO Definition. 
b According to the Decision N°2 of the administrative council to the Agreement, the first period of 
tariff phase-out for Guatemala went from 12 November 2009 to 31 December 2010. For calculations purposes, 2010 (instead of 2009) is thus considered as the Agreement's first year of implementation in the case of Guatemala.  
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations 
 Based on HS 2002 nomenclature.   Source: WTO estimates based on data provided by Guatemala and WTO-IDB. 
 
4. In the case of Honduras and as a result of the Agreement's entry into force, the share of 
duty-free lines for imports from Colombia went from 47.2% to 54.5% and the overall tariff fell to 
4.7% from 6%. By 2020, about 84% of its tariff lin es (non-agricultural and agricultural) will be WT/REG316/1 
 
- 65 - 
 
liberalized. At this date, 62% and 87.6% of agricultural and non-agricultural tariff lines 
(respectively) will be duty-free.  At the end of the implementation, in 2029, Colombian exporters 
will face zero duties on almost all tariff lines (i.e. 87.4%), in particular non-agricultural ones (90.6%). In that year, 68.4% of agricultural lines will be duty-free. 
c. Honduras 
Origin of 
goods Year All products Agricultural products a Non-agricultural products  
Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2010 6.0 11.3 47.2  11.1 14.6 24.0 5.1 10.5 51.1  
Colombia 2010 4.7 10.3 54.5 8.9 14.5 38.6 4.0 9.3 57.1 
  2011 4.1 9.0 54.5  8.4 13.7 38.6 3.4 7.9 57.1  
  2012 3.5 7.8 54.5 8.0 12.9 38.6 2.8 6.6 57.1 
  2013 3.0 6.5 54.5  7.5 12.2 38.6 2.2 5.2 57.1  
  2014 2.4 9.6 75.0 7.0 13.7 48.9 1.6 7.9 79.4 
  2015 2.3 9.1 75.1  6.8 13.2 48.9 1.5 7.4 79.5  
  2016 2.1 8.6 75.1 6.5 12.9 49.3 1.4 6.8 79.5 
  2017 2.0 8.0 75.1  6.3 12.4 49.3 1.3 6.2 79.5  
  2018 1.9 7.5 75.1 6.1 12.0 49.3 1.1 5.6 79.5 
  2019 1.7 10.6 83.7  5.8 15.1 61.2 1.0 8.2 87.5  
  2020 1.7 10.5 83.9 5.8 15.2 62.0 1.0 8.1 87.6 
  2021 1.7 10.4 84.0  5.7 15.3 62.5 1.0 7.9 87.6  
  2022 1.6 10.2 84.0 5.7 15.1 62.5 1.0 7.8 87.6 
  2023 1.6 10.1 84.0  5.6 15.0 62.6 0.9 7.6 87.6  
  2024 1.6 12.4 87.2 5.6 16.8 66.8 0.9 9.8 90.6 
  2025 1.6 12.4 87.3  5.6 16.9 67.1 0.9 9.8 90.6  
  2026 1.6 12.4 87.3 5.6 16.9 67.1 0.9 9.8 90.6 
  2027 1.6 12.4 87.3  5.6 16.9 67.1 0.9 9.8 90.6  
  2028 1.6 12.4 87.3 5.5 16.8 67.1 0.9 9.8 90.6 
  2029 1.6 12.6 87.4  5.5 17.5 68.4 0.9 9.8 90.6  
a  WTO Definition. 
Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations; for the  calculation of aver ages, specific rates are excluded and the ad valorem  
parts of alternate rates are included.   Based on HS 2007 nomenclature.  
 Source: WTO estimates based on data provided by Honduras and WTO-IDB. 
 
5. Tables A1.3 (a, b and c) show market access opportunities in Colombia for the top 25 goods 
of each of the Northern Triangle countries. For El Salvador, these exports accounted for 56.4% of 
its world exports during 2007-2009 and covered 57 tariff lines. Of these lines, only one was already duty-free on a MFN basis when the Agreement entered into force in 2010. Of the 
remaining lines, 18 were liberalized immediately and another 7 will be liberalized in 2014 and 
2019. At the end of the implementation period, 31 lines will remain dutiable. Most of these 
products refer to textiles. For Guatemala, the top 25 exports to Colombia covered 53 lines and 
accounted for 53.5% of its world exports. As a re sult of the Agreement, 16 of these lines were 
liberalized in 2010, three in 2014 and one in 2019.  At the end of implementation, 33 lines will 
remain subject to duties. More than half of these lines refer to textiles, shrimps and prawns. For Honduras, its top 25 exports to Colombia accounted for 72.9% of its world exports during 
2007-2009 and covered 60 lines, of which one was already duty-free when the Agreement entered 
into force in 2010. Of the remaining lines, 29 became duty-free in 2010 as a result of the Agreement, 13 will be liberalized in 2014 and anot her two in 2019. At the end of implementation, 
15 lines will remain dutiable, most of which are agricultural products. Of the Northern Triangle 
countries, Honduras will be the one with the best access to the Colombian market for its top 25 exports as it will exhibit the lowest number of  dutiable lines at the end of implementation 
period. WT/REG316/1 
 
- 66 - 
 
 Table A1.3 Colombia: Market access opportuni ties for the Northern Triangle's top 25 
exports 
a. El Salvador 
El Salvador: 2007-2009  
HS number and description of the product Share in 
global 
exports 
(%) Access conditions to Colombia's 
import markets 
MFN (2010) Duty-free 
in 
Remain Dutiable Average 
MFN 
applied 
rate (%) No. of 
tariff 
lines 
2010 
2014 
2019 Duty-free  
Dutiable 
610910 - of cotton 16.6  20.0   1       1 
090111 -- not decaffeinated 5.5 10.0   2       2 
220710 - undenatured ethyl alcohol of an alcoholic strength by volume of 
80% vol or higher 3.4 15.0   1       1 
611020 - of cotton 3.3 20.0   4       4 
271019 -- othe r 2.3 8.5 1 16 15 1     
481810 - toilet pape r 2.2 20.0   1     1   
160414 -- tunas, skipjack and bonito (sarda spp.)  2.2 20.0   2     2    
853221 -- tantalum 2.1 5.0   1 1       
300490 - othe r 1.6 7.9   7       7 
610711 -- of cotton 1.5 20.0   1       1 
610990 - of other textile materials 1.4  20.0   2       2 
392330 - carboys, bottles, flasks and similar articles  1.4 16.7   3     1 2 
611521 -- of synthetic fibres, measuring per single yarn less than 67 
decitex 1.3 20.0   1       1 
220290 - othe r 1.3 20.0   1       1 
170111 -- cane suga r 1.2  20.0   2       2 
853229 -- othe r 1.1 10.0   1 1       
721420 - containing indentations, ribs, grooves or other deformations 
produced during the rolling process or twisted after rolling 1.0 15.0   1       1 
610462 -- of cotton 1.0 20.0   1       1 
621210 - brassières 1.0  20.0   1       1 
190590 - othe r 1.0 20.0   2   2     
620520 - of cotton 0.9  20.0   1       1 
110220 - maize (corn) flou r 0.9 20.0   1       1 
610821 -- of cotton 0.8  20.0   1       1 
610510 - of cotton 0.8 20.0   1       1 
711291 -- of gold, including metal clad with gold but excluding sweepings 
containing other precious metals 0.8 10.0   1 1       
Total of above 56.4   1 56 18 3 4 31 
Note: Based on HS 2007 nomenclature. 
 Source: WTO estimates based on data provided by  Colombia, WTO-IDB and UNSD, Comtrade database. 
 
b. Guatemala 
Guatemala: 2007-2009  
HS number and description of the product  Share 
in 
global 
exports 
(%) Access conditions to Colombia's import 
markets 
MFN (2010) Duty-free in  
Remain Dutiable Average 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines 
2010 
2014 
2019 Duty-
free 
Dutiable  
090111 -- not decaffeinated  8.3 10.0   2       2 
610610 - of cotton 6.2 20.0   1       1 
170111 -- cane suga r 5.7  20.0   2       2 
080300 Bananas, including plantains, fresh or dried.  5.1 15.0   5 1 3 1   
270900 Petroleum oils and oils obtained from  bituminous 
minerals, crude. 3.7 10.0   1 1       
261610 - silver ores and concentrates 3.7 5.0   1 1       
090830 - cardamoms 3.0  10.0   1 1       
610510 - of cotton 2.0 20.0   1       1 
080719 -- othe r 1.5  15.0   1 1       
400122 -- technically specified natural rubber (tsnr)  1.5 5.0   1 1       WT/REG316/1 
 
- 67 - 
 
Guatemala: 2007-2009  
HS number and description of the product  Share 
in 
global 
exports 
(%) Access conditions to Colombia's import 
markets 
MFN (2010) Duty-free in  
Remain Dutiable Average 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines 
2010 
2014 
2019 Duty-
free 
Dutiable  
620463 -- of synthetic fibres  1.3 20.0   1       1 
300490 - othe r 1.3 7.9   7 7       
151110 - crude oil 1.3  20.0   1       1 
220710 - undenatured ethyl alcohol of an alcoholic strength by 
volume of 80% vol or higher 0.9 15.0   1       1 
220210 - waters, including mineral waters and aerated waters, 
containing added sugar or other sweetening matter or flavoured 0.9 20.0   1       1 
210410 - soups and broths and preparations therefo r 0.8 20.0   2       2 
610620 - of man-made fibres 0.8  20.0   1       1 
481910 - cartons, boxes and cases, of corrugated paper or 
paperboard 0.8 15.0   1       1 
300450 - other medicaments containing vitamins or other 
products of heading 29.36 0.8 10.0   2 2       
271112 -- propane 0.7 5.0   1 1       
400110 - natural rubber latex, whether or not pre-vulcanised  0.7 5.0   1       1 
611020 - of cotton 0.7 20.0   4       4 
030613 -- shrimps and prawns 0.7  20.0   7       9 
701090 - othe r 0.6 15.0   4       4 
600622 -- dyed 0.6  20.0   1       1 
Total of above 53.5     53 16 3 1 33 
Note: Based on HS 2007 nomenclature. 
 Source: WTO estimates based on data provided by  Colombia, WTO-IDB and UNSD, Comtrade database. 
 
c. Honduras 
Honduras: 2006-2007, 2009  
HS number and description of the product  Share 
in 
global 
exports 
(%) Access conditions to Colombia's import 
markets 
MFN (2010) Duty-free in  
Remain Dutiable Average 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines 
2010 
2014 
2019 Duty-
free 
Dutiable  
090111 -- not decaffeinated  20.6 10.0   2       2 
854430 - ignition wiring sets and other wiring sets of a kind 
used in vehicles, aircraft or ships 8.0 15.0   1   1     
080300 Bananas, including plantains, fresh or dried.  6.8 15.0   5 1 3 1    
490700 Postage stamps; stamp-impressed paper; banknotes; 
cheque forms; stock, share or bond certificates and 
similar documents of title. 5.4 15.0 1 3 1     2 
030613 -- shrimps and prawns 4.6  20.0   9 9       
271112 -- propane 3.0 5.0   1 1       
151110 - crude oil 2.8  20.0   1       1 
240210 - cigars, cheroots and cigarillos, containing tobacco  2.4 20.0   1 1       
710812 -- other unwrought forms 2.3  10.0   1 1       
260800 Zinc ores and concentrates. 2.0 5.0   1 1       
080719 -- othe r 1.5  15.0   1 1       
030611 -- rock lobster and other sea crawfish (palinurus spp., 
panulirus spp., jasus spp.) 1.4 20.0   1 1       
151190 - othe r 1.3  20.0   1       1 
340119 -- othe r 1.3 20.0   2       2 
711291 -- of gold, including metal clad with gold but excluding 
sweepings containing other precious metals 1.2 10.0   1 1       
261690 - othe r 1.1 5.0   2 2       
440710 - coniferous 1.0  7.5   2   2     
170111 -- cane suga r 1.0 20.0   2       2 
080430 - pineapples 0.9  15.0   1       1 
240220 - cigarettes containing tobacco 0.9 20.0   2       2 
870899 -- othe r 0.9  10.4   12 7 5     
260700 Lead ores and concentrates. 0.8 5.0   1 1       WT/REG316/1 
 
- 68 - 
 
 
Honduras: 2006-2007, 2009  
HS number and description of the product  Share 
in 
global 
exports 
(%) Access conditions to Colombia's import 
markets 
MFN (2010) Duty-free in  
Remain Dutiable Average 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines 
2010 
2014 
2019 Duty-
free 
Dutiable  
261610 - silver ores and concentrates 0.7  5.0   1 1       
190590 - othe r 0.6 20.0   2   2     
392330 - carboys, bottles, flasks and similar articles  0.6 16.7   3     1  2 
Total of above 72.9   1 59 29 13 2 15 
Note: Based on HS 2007 nomenclature. 
 Source: WTO estimates based on data provided by  Colombia, WTO-IDB and UNSD, Comtrade database. 
 
6. Tables A1.4-A1.6 show market access opportunities for Colombia's top 25 exports in the 
Salvadorian, Guatemalan and Honduran market. Market access opportunities for Colombia's 
exports will be similar across these three mark ets at the end of the implementation period. 
Colombia's top 25 exports accounted for 67.5% of its global exports during 2007-2009 when using data based on the HS 2007 nomenclature, and for 68.6% when using the HS 2002 nomenclature 
(i.e. case of Guatemala).
1 In the case of El Salvador, these exports involved 78 tariff lines, of 
which 20 were already duty-free on a MFN basis in 2010. Of the remaining lines, 12 became duty-free upon the Agreement's entry into force,  9 lines will be liberalized by 2024 and 37 will 
continue to be dutiable. About half (i.e. 20) of the dutiable lines correspond to flowers and 
vehicles. In the case of Honduras, Colombia's top 25 exports covered 78 tariff lines, of which 35 were duty free in 2010: 27 were duty free on an MFN basis and 8 as a result of the Agreement. 
Of the remaining lines, Honduras will liberali ze another 8 lines between 2014 and 2024, and will 
continue to apply duties on 35 lines at the end of the implementation period. Dutiable lines include flowers and vehicles. For Guatemala, Colombia's top 25 exports covered 78 tariff lines and accounted for 68.6% of its world exports during 20 07-2009. Of these lines, 25 were duty-free on a 
MFN basis in 2010. Upon the Agreement's entry into force, another 4 lines became duty free and a 
further 17 will be liberalized between 2014 an d 2024. At the end of the implementation, 
Guatemala will continue to apply duties on 32 lines, half of which referred to fresh flowers. 
Table A1.4 El Salvador: Market access oppo rtunities for Colombia's top 25 exports. 
Colombia's top export products in 2007-2009  Access Conditions to El Salvador's import 
markets 
MFN (2010)  Duty-free in 
Remaining Dutiable HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines 
2010 
2014 
2019 
2024 Duty-free 
Dutiable 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 22.8 0.0 2             
270112 -- bituminous coal 13.1 5.0   1     1     
090111 -- not decaffeinated  5.1 13.8   4         4 
271019 -- othe r 4.6 2.8 7 6 5   1     
720260 - ferro-nickel 3.3  0.0 1             
710812 -- other unwrought forms 2.6 5.0   1   1       
080300 Bananas, including plantains, fresh or dried.  2.1 15.0   4   1 2 1    
271011 -- light oils and preparations 1.8 5.0 3 4 3 1       
060319 -- cut flowers and flower buds 1.3  15.0   13         13 
020110 - carcasses and half-carcasses 1.1 30.0   1         1 
060311 -- roses 1  15.0   1         1 
                                               
1 The list and share of the Top 25 exports in Colomb ia's total exports differs  slightly across Parties 
because calculations are based on a different nomenc lature. For El Salvador (T able A1.4) and Honduras 
(Table A1.6), computations employ data based on th e HS 2007 nomenclature, while for Guatemala, the data 
are based on the HS 2002 nomenclature.  WT/REG316/1 
 
- 69 - 
 
Colombia's top export products in 2007-2009  Access Conditions to El Salvador's import 
markets 
MFN (2010)  Duty-free in 
Remaining Dutiable HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines 
2010 
2014 
2019 
2024 Duty-free 
Dutiable 
870323 -- of a cylinder capacity exceeding 1,500 cc but 
not exceeding 3,000 cc 1.0 16.4   10 4       6 
270400 Coke and semi-coke of coal, of lignite or of 
peat, whether or not agglomerated; retort carbon. 0.8
 0.0 2             
300490 - othe r 0.7 5.0   6         6 
740400 Copper waste and scrap. 0.7  0.0 1             
390410 - poly(vinyl chloride), not mixed with any other 
substances 0.7 0.0 1             
060312 -- carnations 0.6  15.0   1         1 
711291 -- of gold, including metal clad with gold but 
excluding sweepings containing other precious 
metals 0.6 0.0 1             
170199 -- othe r 0.6  40.0   1         1 
390210 - polypropylene 0.6 0.0 1             
481840 - sanitary towels and tampons, napkins and 
napkin liners for babies and similar sanitary articles 0.6
 7.5 1 1     1     
210111 -- extracts, essences and concentrates  0.6 15.0   1         1 
170490 - othe r 0.6  15.0   1         1 
151110 - crude oil 0.5 5.0   1         1 
020130 - boneless 0.5  30.0   1         1 
Total of above 67.5 9.8 20 58 12 3 5 1 37 
Note: Based on HS 2007 nomenclature. 
 Source: WTO estimates based on data provided by El Salvador, WTO-IDB and UNSD, Comtrade database. 
 
Table A1.5 Guatemala: Market access oppo rtunities for Colombia's top 25 exports.  
Colombia's top export products in 2007-2009 Access conditions to Guatemala's 
import markets 
MFN (2010) Duty-free in 
Remain Dutiable HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  No. of 
tariff 
lines 
2010 
2014 
2019 
2022 
2024 Duty-free  
Dutiable 
270900 Petroleum oils and oils obtained from bituminous minerals, 
crude. 22.8 0.0 2               
270112 Bituminous coal 13.1 10.0   1     1       
090111 Not decaffeinated 5.1  13.8   4           4 
271019 Other 4.6 3.5 8 5 4   1       
720260 Ferro-nickel 3.3  0.0 1               
060310 Fresh flowers 3.2 15.0   17           17 
710812 Other unwrought forms 2.6  5.0   1   1         
080300 Bananas, including plantains, fresh or dried.  2.1 15.0   4   1 2   1   
271011 Light oils and preparations 1.8  0.7 6 1   1         
020110 Carcasses and half-carcasses 1.1 15.0   1           1 
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 
3,000 cc 1.0 11.7 1 5           5 
270400 Coke and semi-coke of coal, of lignite or of peat, whether 
or not agglomerated; retort carbon. 0.8 2.5 1 1   1         
300490 Othe r 0.7  5.0   6   6         
740400 Copper waste and scrap. 0.7 0.0 1               
390410 Poly(vinyl chloride), not mixed with any other substances  0.7 0.0 1               
711291 Of gold, including metal clad with gold but excluding 
sweepings containing other precious metals 0.6 0.0 1               
170199 Othe r 0.6  20.0   1           1 
390210 Polypropylene 0.6 0.0 1               
481840 Sanitary towels and tampons, napkins and napkin liners for 
babies and similar sanitary articles 0.6 7.5 1 1         1    
210111 Extracts, essences and concentrates 0.6 15.0   1           1 
170490 Othe r 0.6  15.0   1       1     WT/REG316/1 
 
- 70 - 
 
 
Colombia's top export products in 2007-2009 Access conditions to Guatemala's 
import markets 
MFN (2010) Duty-free in 
Remain Dutiable HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  No. of 
tariff 
lines 
2010 
2014 
2019 
2022 
2024 Duty-free  
Dutiable 
151110 Crude oil 0.5 5.0   1           1 
020130 Boneless 0.5  15.0   1           1 
620342 Of cotton 0.5 15.0   1           1 
271121 Natural gas 0.4  0.0 1               
Total of above 68.6   25 53 4 10 4 1 2 32 
Note: Based on HS 2002 nomenclature. The share of the Top 25 exports in Colombia's total exports differs 
across Parties due to the nomencla ture. For El Salvador (Table A1 .4) and Honduras (Table A1.6), 
computations employ data based on the HS 2007 nomenclature, while for Guatemala, data based on the HS 2002 nomenclature. 
 Source: WTO estimates based on data provided by Guatemala, WTO-IDB and UN SD, Comtrade database. 
 
Table A1.6 Honduras: Market access opport unities for Colombia's top 25 exports. 
Colombia's top export products in 2007-2009 Access Conditions to Honduras' import 
markets 
MFN (2010) Duty-free in 
Remaining Dutiable HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff 
lines 
2010 
2014 
2019 
2024 Duty-free 
Dutiable 
270900 Petroleum oils and oils obtained from bituminous minerals, 
crude. 22.8 0.0 2             
270112 -- bituminous coal 13.1 5.0   1     1     
090111 -- not decaffeinated 5.1  13.8   4         4 
271019 -- othe r 4.6 4.6 8 5 4   1     
720260 - ferro-nickel 3.3  0.0 1             
710812 -- other unwrought forms 2.6 5.0   1   1       
080300 Bananas, including plantains, fresh or dried.  2.1 15.0   4   1 2 1    
271011 -- light oils and preparations 1.8 7.1 3 4 3 1       
060319 -- othe r 1.3  15.0   13         13 
020110 - carcasses and half-carcasses 1.1 15.0   1         1 
060311 -- roses 1.0  15.0   1         1 
870323 -- of a cylinder capacity exceeding 1,500 cc but not 
exceeding 3,000 cc 1.0 15.0   10         10 
270400 Coke and semi-coke of coal, of lignite or of peat, whether 
or not agglomerated; retort carbon. 0.8 0.0 2             
300490 - othe r 0.7 0.0 6             
740400 Copper waste and scrap. 0.7  0.0 1             
390410 - poly(vinyl chloride), not mixed with any other substances  0.7 0.0 1             
060312 -- carnations 0.6  15.0   1         1 
711291 -- of gold, including metal clad with gold but excluding 
sweepings containing other precious metals 0.6 0.0 1             
170199 -- othe r 0.6  15.0   1         1 
390210 - polypropylene 0.6 0.0 1             
481840 - sanitary towels and tampons, napkins and napkin liners 
for babies and similar sanitary articles 0.6 7.5 1 1 1         
210111 -- extracts, essences and concentrates 0.6 15.0   1         1 
170490 - othe r 0.6  15.0   1         1 
151110 - crude oil 0.5 5.0   1         1 
020130 - boneless 0.5  15.0   1         1 
Total of above 67.5  27 51 8 3 4 1 35 
Note: Based on HS 2007 nomenclature. 
 Source: WTO estimates based on data provided by  Honduras, WTO-IDB and UNSD, Comtrade database. 
 WT/REG316/1 
 
- 71 - 
 
ANNEX 2 
Table A2.1 Colombia: List of products  subject to the price band system 
Tariff Line Description MFN 2010 Liberalization under the Agreement  
0203110000 Carcasses and half-carcasses of 
swine, fresh or chilled 20 %  + VC Excluded 
0203120000 Hams, shoulders and cuts thereof  20 %  + VC Excluded  
0203190000 Othe r 20 %  + VC Excluded  
0203210000 Carcasses and half-carcasses 20 %  + VC Excluded  
0203220000 Hams, shoulders and cuts thereof  20 %  + VC Excluded  
0203290000 Other 20 %  + VC Excluded  
0207110000 Chickens fresh or chilled 20 %  + VC Excluded  
0207120000 Chickens frozen 20 %  + VC Excluded  
0207130000 Cuts and offal of chickens, fresh or 
chilled 20 %  + VC Excluded  
0207140000 Cuts and offal of chickens, frozen  20 %  + VC Excluded  
0207240000 Turkeys fresh or chilled 20 %  + VC Excluded  
0207250000 Turkeys frozen 20 %  + VC Excluded  
0207260000 Cuts and offal of turkeys, fresh or 
chilled 20 %  + VC Excluded  
0207270000 Cuts and offal of turkeys, frozen  20 %  + VC Excluded  
0207320000 Ducks, geese or guineas 20 %  + VC Excluded  
0207330000 Ducks, geese or guineas 20 %  + VC Excluded  
0207340000 Fatty livers, fresh or chilled 20 %  + VC For El Salvador: a preferential rate applies for the fixed 
component (i.e. preference of 10 percentage points). 
For Guatemala and Honduras: Excluded 
0207350000 Other, fresh or chilled 20 %  + VC Excluded  
0207360000 Livers 20 %  + VC Excluded  
0210120000 Bellies (streaky) and cuts thereof  20 %  + VC Excluded  
0210190000 Othe r 20 %  + VC Excluded  
0401100000 Milk and cream products 15 %  + VC Excluded  
0401200000 Milk and cream products 15 %  + VC Excluded  
0401300000 Milk and cream products 15 %  + VC Excluded  
0402101000 Milk and cream products 98 %  + VC Excluded  
0402109000 Milk and cream products 98 %  + VC Excluded  
0402211100 Milk and cream products 98 %  + VC Excluded  
0402211900 Milk and cream products 98 %  + VC Excluded  
0402219100 Milk and cream products 98 %  + VC Excluded  
0402219900 Milk and cream products 98 %  + VC Excluded  
0402291100 Milk and cream products 98 %  + VC Excluded  
0402291900 Milk and cream products 98 %  + VC Excluded  
0402299100 Milk and cream products 98 %  + VC Excluded  
0402299900 Milk and cream products 98 %  + VC Excluded  
0402911000 Milk and cream products 98 %  + VC Excluded  
0402919000 Milk and cream products 98 %  + VC Excluded  
0402999000 Milk and cream products 98 %  + VC Excluded  
0405100000 Butte r 20 %  + VC Excluded  
0405200000 Butter substitute dairy spread 20 %  + VC Excluded  
0405902000 Fats and oils derived from mil k 20 %  + VC Excluded  
0405909000 Fats and oils derived from mil k 20 %  + VC Excluded  
0406300000 Cheese, except shreded 20 %  + VC Excluded  
0406904000 Other types of cheese 20 %  + VC Excluded  
0406905000 Other types of cheese 20 %  + VC Excluded  
0406906000 Other types of cheese 20  % + VC Excluded  
0406909000 Cheeses  20 %  + VC Excluded  
1001109000 Durum wheat  15 %  + VC Fixed component to be removed by 2010, except Guatemala (2009) 
1001902010 Wheat & meslin  15 %  + VC Fixed component to be removed by 2010, except 
Guatemala (2009) WT/REG316/1 
 
- 72 - 
 
 
Tariff Line Description MFN 2010 Liberalization under the Agreement  
1001902090 Wheat & meslin  15 %  + VC Fixed component to be removed by 2010, except 
Guatemala (2009) 
1001903000 Seed of wheat and meslin 15 %  + VC Fixed component to be removed by 2010, except 
Guatemala (2009) 
1003009010 Barley, for malting purposes 15 %  + VC Fixed component to be removed by 2015, except Guatemala (2014) 
1003009090 Barley, for other purposes 15 %  + VC Fixed component to be removed by 2015, except 
Guatemala (2014) 
1005901100 Yellow dent corn 25 %  + VC For El Salvador: a preferential rate applies for the fixed component (i.e. preference of 10 percentage points). For Guatemala and Honduras: Excluded 
1005903000 Corn (maize), other yellow dent 
corn 15 %  + VC For El Salvador:  a preferential rate applies for the fixed 
component (i.e. preference of 10 percentage points). 
For Guatemala and Honduras: Excluded 
1005904000 Corn (maize), other yellow dent 
corn 15 %  + VC For El Salvador: a preferential rate applies for the fixed 
component (i.e. preference of 10 percentage points). For Guatemala and Honduras: Excluded 
1005909000 Others 15 %  + VC For El Salvador: a preferential rate applies for the fixed 
component (i.e. preference of 10 percentage points). 
For Guatemala and Honduras: Excluded 
1007009000 Grain sorghum 15 %  + VC Excluded  
1101000000 Wheat or meslin flou r 20 %  + VC Excluded  
1102200000 Corn (maize) flou r 20 %  + VC Excluded  
1103110000 Groats and meal of wheat 20 %  + VC For El Salvador and Honduras: Excluded 
For Guatemala: Fixed component to be removed by 
2019 
1107100000 Malt, not roasted 15 % + VC  Fixed component to be removed by 2010, except 
Guatemala (2009) 
1107200000 Malt, roasted  15 % +  VC Fixed component to be removed by 2010, except 
Guatemala (2009) 
1108110000 Wheat starch  20 % + VC  Fixed component to be removed by 2010, except 
Guatemala (2009) 
1108120000 Corn (maize) starch 20 % + VC  Fixed component to be removed by 2010, except 
Guatemala (2009) 
1108190000 Starches other than wheat, maize, 
potato or cassava (manioc) 20 % + VC  Excluded  
1201009000 Soybeans, whether or not broken  15 % + VC  Excluded  
1202109000 Peanuts (ground-nuts), not 
roasted or cooked, in shell 15 % + VC  Excluded  
1202200000 Shelled, whether or not broken 15 % + VC  Fixed component to be removed by 2010, except 
Guatemala (2009) 
1205109000 Low erucic acid rape or colza 
seeds, whether or not broken 15 % + VC  Excluded  
1205909000 Rape or colza seeds  15 % + VC  Excluded  
1206009000 Sunflower seeds, whether or not 
broken 15 % + VC  Excluded  
1207409000 Sesame seeds, whether or not 
broken 15 % + VC  Fixed component to be removed by 2010, except 
Guatemala (2009) 
1207999100 Other oil seeds and oleaginous 
fruits  15 % + VC  Excluded 
1207999900 Other oil seeds and oleaginous 
fruits  15 % + VC  Excluded except for: 
-nuts and palm almond (not for sowing): Fixed 
component to be removed by 2015, except Guatemala 
(2014). 
-For castor oil seeds (not for sowing): Fixed component 
to be removed by 2010, except Guatemala (2009). 
1208100000 Flours and meals of soybeans 15 % + VC  Excluded  
1208900000 Flours and meals of oil seeds or 
oleaginous fruits  15 % + VC  Excluded  
1501001000 Pig fat 15 % + VC  Excluded  
1501003000 Poultry fat 15 % + VC  Excluded  
1502001100 Fats of bovine animals  15 % + VC  For El Salvador: a preferential rate applies for the fixed 
component (i.e. preference of 10 percentage points). For Guatemala and Honduras: Excluded  
1502001900 Fats of bovine animals  15 % + VC  Excluded  
1502009000 Fats of bovine animals  15 % + VC  Excluded  
1503000000 Lard stearin, lard oil, oleostearin, 
oleo-oil and tallow oil 15 % + VC  Excluded  
1506001000 Animal fats and oils  15 % + VC  Excluded  
1506009000 Animal fats and oils  15 % + VC  Excluded  
1507100000 Crude oil, whether or not 
degummed 20 % + VC  Excluded  
1507901000 For use in the manufacture of 
paints and varnishes 20 % + VC  Excluded  WT/REG316/1 
 
- 73 - 
 
Tariff Line Description MFN 2010 Liberalization under the Agreement  
1507909000 Othe r 20 % + VC  Excluded  
1508100000 Crude oil 20 % + VC  Excluded  
1508900000 Othe r 20 % + VC  Excluded  
1511100000 Crude oil 20 % + VC  Excluded  
1511900000 Palm oil 20 % + VC  Excluded  
1512111000 Sunflowe r-seed oil 20 % + VC  Excluded  
1512112000 Safflower oil  20 % + VC  Excluded  
1512191000 Sunflowe r-seed oil and fractions 
thereof 20 % + VC  Excluded  
1512192000 Safflower oil and fractions thereof  20 % + VC  Excluded  
1512210000 Cotton-seed oil 20 % + VC  Excluded  
1512290000 Cotton-seed oil 20 % + VC  Excluded  
1513110000 Coconut (copra) oil 20 % + VC  For El Salvador: a preferential rate applies for the fixed 
component (i.e. preference of 43 percentage points). 
For Guatemala and Honduras: Excluded 
1513190000 Coconut (copra) oil 20 % + VC  Excluded  
1513211000 Palm kernel or babassu oil 20 % + VC  Excluded  
1513291000 Palm kernel oil  20 % + VC  Excluded  
1514110000 Rape, colza or mustard oil 20 % + VC  Excluded  
1514190000 Rape, colza or mustard oil 20 % + VC  Excluded  
1514910000 Rape, colza or mustard oil 20 % + VC  Excluded  
1514990000 Rape, colza or mustard oil 20 % + VC  Excluded  
1515210000 Corn (maize) oil, crude, and its 
fractions, not chemically modified 20 % + VC  Excluded  
1515290000 Corn (maize) oil 20 % + VC  Excluded  
1515300000 Castor oil  20 % + VC  Excluded  
1515500000 Sesame oil 20 % + VC  Excluded  
1515900090 Other vegetable fats and oils 20 % + VC  Excluded  
1516200000 Vegetable fats and oils  20 % + VC  Excluded  
1517100000 Margarine, excluding liquid 
margarine 20 % + VC  Excluded  
1517900000 preparations of animal o r 
vegetable fats or oils 20 % + VC  Excluded  
1518001000 Animal or vegetable fats and oils  20 % + VC  Excluded  
1518009000 Animal or vegetable fats and oils  20 % + VC  Excluded  
1601000000 Pork sausages and similar 
products of pork, pork offal or 
blood 20 % + VC  Excluded  
1602311000 Prepared or preserved meat or 
meat offal of turkeys 20 % + VC  Excluded  
1602321000 Prepared or preserved meat or 
meat offal of chickens 20 % + VC  Excluded  
1602391000 Prepared meals 20 % + VC  Excluded  
1602410000 Prepared or preserved pork ham 
and cuts thereof 20 % + VC  Excluded  
1602420000 Pork shoulders and cuts thereof  20 % + VC  Excluded  
1701119000 Cane sugar, raw solid form, w/o 
flavoring or coloring, nesoi 20 % + VC  Excluded  
1701120000 Beet sugar, raw, in solid form, w/o 
added flavoring or coloring 20 % + VC  Excluded  
1701910000 Containing added flavouring or 
colouring matter 20 % + VC  Excluded  
1701991000 Cane/beet sugar & pure sucrose  20 % + VC  Excluded  
1701999000 Cane/beet sugar & pure sucrose  20 % + VC  Excluded  
1702302000 Glucose and  glucose syrup 20 % + VC  Excluded  
1702309000 Glucose and glucose syrup 20 % + VC  Excluded  
1702401000 Glucose and glucose syrup 20 % + VC  Excluded  
1702402000 Glucose and glucose syrup 20 % + VC  Excluded  
1702600000 Other fructose and fructose syrup  15 % + VC  Excluded  
1702902000 Artificial honey, whether or not 
mixed with natural honey 20 % + VC  Excluded  
1702903000 Other invert sugars and other 
sugar syrups 20 % + VC  Excluded  
1702904000 Chemically pure maltose 20 % + VC  Excluded  
1702909000 Sugars and sugar syrups, and 
articles containing sugar,  10 % + VC  Excluded  
1703100000 Cane molasses 15 % + VC  Excluded  WT/REG316/1 
 
- 74 - 
 
 
Tariff Line Description MFN 2010 Liberalization under the Agreement  
1703900000 Molasses  15 % + VC  Excluded  
1902190000 Uncooked pasta 20 % + VC  Fixed component to be removed by 2015, except 
Guatemala (2014) 
2301201100 Preparations for animal feeding 15 % + VC  Fixed component to be removed by 2010, except 
Guatemala (2009) 
2301201900 Preparations for animal feeding 15 % + VC  Fixed component to be removed by 2010, except 
Guatemala (2009) 
2302100000 Preparations for animal feeding  15 % + VC  Excluded 
2302300000 Preparations for animal feeding  15 % + VC  Fixed component to be removed by 2015, except 
Guatemala (2014) 
2302400000 Preparations for animal feeding  15 % + VC  Excluded  
2304000000 Oil-cake and other solid residues  15 % + VC  Excluded  
2306100000 Oil-cake and other solid residues  15 % + VC  Excluded  
2306300000 Oil-cake and other solid residues  15 % + VC  Excluded  
2306900000 Oil-cake and other solid residues  15 % + VC  Excluded  
2308009000 Vegetable materials and vegetable 
waste 15 % + VC  Excluded  
2309109000 Dog or cat food 20 % + VC  For El Salvador: a preferential rate applies for the fixed 
component (i.e. preference of 10 percentage points). 
For Guatemala and Honduras: a preferential quota applies. The out of quota rate is not subject to liberalization. 
2309901000 Feeds containing cereals, 15 % + VC  Excluded  
2309909000 Preparations  used in animal 
feeding,  15 % + VC  Excluded  
3505100000 Dextrins and other modified 
starches 20 % + VC  Excluded  
3505200000 Glues based on starches or on 
dextrins or other modified starches 20 % + VC  Excluded  
3823110000 Stearic acid  15 % + VC  Excluded  
3823120000 Oleic acid 0 % + VC  Excluded  
3823190000 Other acid oils 15 % + VC  Excluded  
 
VC: Variable Component (Ad-valorem) under the Price Band System.  
Source: Annex 3.4 and Colombia's schedule under the Agreement. 
 
Table A2.2 Honduras: List of products  subject to the price band system 
Tariff Line Description MFN 2010 Liberalization under the Agreement  
10059020 Yellow maize 15%  + VC Excluded  
10059030 White maize  15% + VC Excluded  
10070090 Grain sorghum  15% + VC Excluded  
11022000 maize flou r 15% + VC Excluded  
11031310 Groats and meal of corn (maize) 15%  + VC Excluded  
11031390 Groats and meal of co rn (maize),  15% + VC Excluded  
11042300 Worked Grains of corn (maize) 5%  + VC Excluded  
 
VC: Variable Component ( Ad-valorem ) under the Price Band System. 
 Source: Honduras WTO Trade Policy Review 2010 and Honduras' schedule under the Agreement.  
__________