WT/REG316/2  
18 June 2014  
(14-3540)  Page: 1/2  
Committee on Regional Trade Agreements  Original: English/Spanish  
 
  FREE TRADE AGREEMENT BETWEEN EL SALVADOR, 
GUATEMALA, HONDURAS AND COLOMBIA 
(GOODS AND SERVICES) 
QUESTIONS AND REPLIES 
 The following communication, dated 17 June 2014,  is being circulated at the request of the 
delegations of El Salvador, Guatemala, Honduras and Colombia. 
 
 This document reproduces the questi ons addressed to the Parties and the 
responses submitted.  
_______________ 
  
Questions from the delegation of Canada 
 
1.1.  Paragraph 3.30: What rules of origin gove rn trade for goods for which the specific 
rules of origin have not yet been established? 
For goods for which specific rules of origin have not yet been established and which 
are covered by a tariff elimination programme, there will be the option of satisfying the requirements of Article 4.3(a) and (b) (Originating Goods), in addition to the other applicable 
provisions in the Chapter on Rules of Origin. Failure to do so means that the goods will not 
be entitled to preferential tariff treatment.  
1.2.  Paragraph 3.32: Extended cumulation fo r textiles and clothing only applies 
"… provided that each Party has a trade agre ement with the third-party". What is meant 
by "each Party"? 
Each Party means each of the States for which the Agreement is in force. Pursuant 
to Chapter 2 of the Agreement (General Definiti ons), "'Party' means a State that has consented 
to be bound by this Agreement and for which the Agreement is in force".  
1.3.  Paragraph 3.32: Are yarns of nylon from Mexico, Israel and Canada automatically 
considered as originating from Honduras and Colombia for trade between these two Parties? 
Pursuant to paragraph 2 of Section II on Special Provisions Relating to the Origin of Certain 
Goods, yarns of nylon of the subheadings listed in paragraph 2, originating in the United States, Mexico, Israel and Canada are considered as originating from Honduras and Colombia if used 
as inputs for a good traded between the latter two countries. 
 1.4.  Paragraph 5.26: The Parties' lists of covered governmental entities are given 
in Annex 11.1 of the Agreement; however, no thresholds are indicated. Could the Parties 
provide details on the coverage of procur ement by the governmental entities listed 
in Annex 11.1 of the Agreement? Are the rules of the Government procurement Chapter applicable to all products and services pr ocured by covered governmental entities 
in Annex 11.1, regardless of the value? WT/REG316/2 
- 2 - 
  The Government Procurement Chapter does not establish thresholds for determining 
market access coverage under this Chapter. As specified in Article 11.1, the Chapter applies to measures relating to the procurement of goods and services, including construction services or any combination thereof. 
 
In Annex 11.1, the Parties specify a number of goods and services to which Chapter 11 
does not apply. 
 
Questions from the delegation of Peru
1 
 Provisions on trade in goods 
Regulatory provisions on trade in goods 
Safeguard mechanisms 
Special safeguards 
 1.5.  Paragraphs 3.27 and 3.66. Pursuant to Article 21.7, a special safeguard mechanism 
will be negotiated if, as a result of new ne gotiations, tariff lines that were initially 
excluded are to be liberalized. Why shou ld this special mechanism be different 
from the safeguard mechanism established in Chapter 7 of the Agreement? 
Replies from the delegations of Colombia, El Salvador and Honduras 
The Agreement allows products that were excluded from the FTA (i.e. those which were 
most sensitive at the time) to be included at a later date. If the Parties agree on extending access 
to these sensitive products, they should analyse whether it is appropriate to include additional 
provisions in the current safeguard mechanism, so as to be able to provide concessions for 
these products. 
General provisions of the Agreement 
Competition policy 
 
1.6.  Paragraph 5.33. In accordance with Arti cle 16.10 (Promotion of Free Competition), 
the Parties will promote any actions they co nsider necessary to provide a suitable 
framework for identifying and possibly sanctioning practices that restrict 
free competition. Since the entry into force of the Agreement, what necessary actions 
have the Parties promoted in order to pr ovide a suitable fram ework for identifying 
and sanctioning practices that restrict free competition? 
El Salvador  applies the Competition Law and its Implementing Regulations, which provide 
the legal framework for investigating, identifying and sanctioning anti-competitive practices. 
The Supervisory Authority for Competition is respon sible for ensuring the implementation of this 
Law and for conducting the relevant investigations into anti-competitive practices. 
In Colombia , free competition was first established as a constitutional right in Article 333 
of the 1991 Constitution. This was followed by the issuing of Decree No. 2153 of 1992, 
which permitted the implementation of Law No. 155 of 1959 for the first time. The Supervisory 
Authority for Industry and Trade is responsibl e for ensuring compliance with the Law and the 
rights and duties of Colombians in this area. 
In 2006, Honduras  introduced the Law for the Defence and Promotion of Competition. 
The Law was approved pursuant to Legislative Decree No. 357-2005 and was published 
in Official Journal La Gaceta  on 4 February 2006. The Commission for the Defence and Promotion 
of Competition was established upon the entry into force of the Law. To date, no action has been 
taken in this area between Colombia and Honduras. 
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1 Questions were submitted to the Parties on 28 May 2014 (three weeks, five days before the meeting).