WT/REG333/M/1  
 
10 April 2015  
(15-1953)  Page: 1/5  
Committee on Regional Trade Agreements 
Seventy-sixth Session   
 
 TRADE AGREEMENT BETWEEN THE EUROPEAN UNION AND ITS MEMBER STATES, OF THE 
ONE PART AND COLOMBIA AND PERU, OF THE OTHER 
GOODS AND SERVICES 
NOTE ON THE MEETING OF 30 MARCH 2015 
Chairman: Ambassador Francisco Pirez Gordillo (Uruguay) 
1.1.  The 76th Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/RTA/1 dated 16 February 2015. 
1.2.  Under Agenda Item B.II of the session, th e CRTA considered the Trade Agreement between 
the European Union and its Member States, of the one part and Colombia and Peru, of the other, 
(hereinafter "the Agreement"). 
1.3.  The Chairman said that the Agreement ha d entered into force on 1 March 2013 for the EU 
and Peru and on 1 August 2013 for the EU and Colomb ia. It had been notified to the WTO first by 
the EU and Peru on 20 March 2013 and subseque ntly by Colombia on 29 November 2013 under 
Article XXIV:7(a) of the GATT 1994 and the Understand ing on the Interpretation of Article XXIV of 
GATT 1994 as an Agreement establishing a free trade area (documents WT/REG333/N/1/Rev.1 
and WT/REG333/N/2) and under GATS Article V:7(a) as an Agreement providing for the liberalization of trade in services within th e meaning of Article V of the GATS (document 
S/C/N/681/Rev.1 and S/C/N/681/Rev.1/Add.1). The text of the Agreement was available, together 
with its Annexes, on the Parties' official websites. The Factual Presentation on the goods and 
services aspects (document WT/REG333/1 dated 19 January 2015) had been prepared by the Secretariat on its own responsibility in full consultation with the Parties, in accordance with 
paragraph 7(b) of the Transparency Me chanism for Regional Trade Agreements 
(document WT/L/671). In addition, written questi ons and replies on this Agreement had been 
distributed in document WT/REG333/2 dated 25 March 2015. He proposed to organize the 
consideration of the Agreement by first asking the Parties and then other Members to give any 
general comments and then turn to the specifics of the Agreement. 
1.4.  The representative of the European Unio n thanked the Chairman and welcomed the CRTA's 
consideration of the Trade Agreement between th e EU and Colombia and Peru. He also thanked 
the Secretariat for the preparation of the Factual Presentation, Colombia and Peru for the excellent 
cooperation in this exercise and Members for the interest shown in the consideration of the Agreement. 
1.5.  The EU recalled the broader economic an d political context in which the Agreement was 
situated. The EU and Latin America had developed a Strategic Partnership since the first bi-regional Summit in Rio de Janeiro in 1999, based on their strong historical, cultural and 
economic ties. They co-operated closely internationally and maintained an intensive political 
dialogue at all levels - regional, sub regional (Central America, Andean Community and Mercosur) and also increasingly bilaterally. 
1.6.  The Agreement had been signed on 26 June 2012 and applied since 1 March 2013 with Peru 
and 1 August 2013 with Colombia. It was expected to strengthen the EU's ties with Colombia and 
Peru, providing for improved trading and investme nt conditions and for a stable, transparent, 
predictable and enforceable business enviro nment. The Agreement was ambitious and 
comprehensive in terms of trade coverage. It  reflected a well-balanced outcome aimed at WT/REG333/M/1 
 
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  establishing a free-trade area in which duties and other restrictive regulations would have been 
eliminated on substantially all trade between the EU and its Member States, on the one Part, and 
Colombia and Peru, on the other. By the end of its implementation period (2023), the EU would 
have fully liberalized 97% of its tariff lines. By the end of its implementation period (2028), 
Colombia would have fully liberalized 96.1% of its tariff lines and, by the end of its implementation 
period (2030), Peru would have liberalized 98% of its tariff lines. These figures were complemented by important liberalization of TRQs in some key sectors of interest to the Parties. 
1.7.  In terms of trade in services, the commitme nts had been arguably one of the most ambitious 
negotiated at the time. The Agreement covered all modes of supply, with no a priori exclusions.  
1.8.  The Agreement ensured an adequate and effective level of protection of intellectual, 
industrial and commercial property rights and othe r rights covered by the TRIPS Agreement. There 
was an ambitious chapter on dispute settlement based on transparency and clear sequencing, 
which would allow for faster resolution of any potential disagreements. There was improved transparency and exchange of information in areas such as SPS measures, NTBs or competition. 
These were only a few of the areas where import ant ambition had been achieved demonstrating 
the comprehensive nature of the Agreement. 
1.9.  The Agreement included far-reaching provisions on effective implementation of international 
conventions on labour rights and environmental protection. A strong role was given to civil society 
organisations which would be systematically involved in the work of monitoring the implementation of these commitments. In addition, a structured dialogue with civil society had been foreseen to take place annually. The Chapter also included a mechanism for resolution of 
differences by engaging experts on the partic ular topics to offer their recommendations.  
1.10.  The Agreement also aimed to contribute to regional integration among the Andean countries 
by leaving the door open for other Andean countries – Ecuador and Bolivia – to enter into the 
partnership. In fact, the EU had recently conclude d negotiations with Ecuador for acceding to the 
Agreement. The relevant Protocol of Accession was under preparation and consultations with Colombia and Peru were on-going. Less than two years after the implementation of the 
Agreement, it was too early to make any definite assessment of its results in terms of its trade and 
investment impact. However, it was already possible to note some positive trends in areas where important liberalization had taken place, including the participation of an increasing number of new actors in bilateral trade.  
1.11.  Finally, the EU looked forward to a constructive discussion in the Committee on this 
important Agreement. 
1.12.  The Chairman welcomed the representatives of Colombia and Peru who had come from their 
capitals for the meeting. This showed their commitment to the review. 
1.13.  The representative of Colombia thanked and commended the Secretariat for the Factual 
Presentation of the Trade Agreement between the European Union, of the one part, and Colombia 
and Peru, of the other, contained in document  WT/REG333/2, which was a very comprehensive 
and objective report. He also appreciated the questions raised by Members, to which answers had already been provided and which had proven ex tremely useful in improving clarity on some 
specific issues. For Colombia and the European Union, the provisional application of the Agreement 
had begun on 1 August 2013. The trade disciplines were applicable to both Colombia and Peru, 
while the market access schedules were bilateral. Thus the Agreement did not create new rights or obligations between Colombia and Peru. 
1.14.  The EU was Colombia's second largest export destination. Moreover, foreign investment in 
Colombia from Member States of the European Union was growing. This trade link was an important economic justification for the elimination of barriers to substantially all trade in goods 
and services between the two economies, which woul d result in increased trade. The negotiation of 
the Agreement had begun in June 2007 and it had been applied just in time for Colombia to maintain its tariff preferences in the European market. Indeed, pursuant to the reform of the European Union's Generalized System of Preferen ces, on 1 January 2015 Colombia had ceased to 
be a beneficiary of these unilateral preferences. The Agreement hence had become an economic WT/REG333/M/1 
 
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  necessity for Colombia as, without it, Colombian exports would have lost their margin of 
preference vis-à-vis  other trading partners. 
1.15.  In addition to promoting comprehensive economic development in order to reduce poverty 
and create new employment opportunities, the sco pe of the Agreement met the requirements of 
Article XXIV of GATT 1994. One of the compatibility criteria for free trade agreements under Article 
XXIV of the GATT 1994 was the "elimination of duties  on substantially all trade". In this regard, 
paragraph 3.1.3.1 of the Secretariat's Factual Pr esentation stated that "[b]y the end of the 
implementation period, 9,315 of the European Union' s tariff lines, corresponding to 95.8% of its 
tariff, will be duty free". With regard to Colombia, paragraph 3.1.3.2 stated that "[t]en years after the entry into force of the Agreement (in 2023), 7,153 tariff lines, or 95.8% of its imports from the EU will be duty free". 
1.16.  The Agreement met the requirements of Ar ticle XXIV of the GATT 1994 in respect of the 
other regulations governing trade. A free trade area had been established that facilitated trade between the two territories without introducing more restrictive trade regulations vis-à-vis third 
parties. It included regulations that facilitated bilateral trade such as: prohibition of export 
restrictions and of imposition of export duties and taxes; cumulation of origin for materials originating in the European Union or Peru in their capacity as signatories, and also with Costa Rica, 
El Salvador, Guatemala, Honduras, Nicaragua, Panama, Venezuela, Bolivia and Ecuador and, upon 
request to the Agreement's Sub Committee on Custom s, with Mexico and Chile; easily satisfied 
rules of origin for a range of products subject to annual quotas; approval of establishments exporting animals or products of animal origin, removing the need for the importing country to 
carry out on-site inspections; simplification of the certification of origin procedure by way of self-
certification by the exporter; specific rules for marking and labelling; application of bilateral safeguards only during the transition period; prohibition of export subsidies on agricultural goods 
which were fully liberalized and benefitted from a duty-free quota; issuance of advance rulings on 
tariff classification and origin; and establishment of a mediation mechanism to resolve disputes involving non-tariff measures. 
1.17.  The Agreement met the requirements of Ar ticle V of the General Agreement on Trade in 
Services as liberalization of trade in services had substantial sectoral coverage. Table 4.1 of the Secretariat's Factual Presentation which compared the European Union's commitments under the Agreement with its WTO commitments showed that the EU had improved its specific commitments 
on establishment and cross border supply in almost all sectors and had removed limitations on 
market access and national treatment. Table 4.2 made a similar comparison for Colombia, showing 
that Colombia had improved its specific commitments on establishment and cross border supply 
compared to those set out in the WTO schedules and had made specific commitments in 24 new 
sectors. The Agreement also exceeded the scope  of GATS because it established regulatory 
frameworks for computer, postal and courier, telecommunications, financial, international maritime 
transport and e-commerce services. The Parties had agreed that a delivery by electronic means 
would be considered as a provision of services. 
1.18.  One of the new features of the Agreemen t had been the inclusion of a very demanding 
chapter on trade and sustainable development. Th e Parties had recognized that trade was not an 
end in itself but rather a way to achieve econ omic development and that they would respect 
environmental and labour practices. Thus, they had established an institutional framework to monitor compliance, which consisted of the creation of domestic consultative mechanisms on 
labour and the environment that could submit opinions and make recommendations; the 
organization of an annual dialogue with civil society organizations and the public at large; and the establishment of a group of experts to examin e requests for consultations made by a Party 
concerning any matter relating to labour or the environment. 
1.19.  Bilateral commitments had been undertaken in respect of government procurement, the 
scope of which was similar to that of the revised WTO Agreement on Government Procurement. Disciplines had been laid down for the essential elements to be taken into account in the notice of 
intended procurement; the time periods for the su bmission of tenders; the notice of award; and 
documentation for tenders. Market access commitments on government procurement covered goods, services and construction services. 
1.20.  To conclude he hoped to have shown that the Agreement eliminated customs duties on 
substantially all trade, contained bilateral trade facilitation provisions that went beyond those in WT/REG333/M/1 
 
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  the WTO Agreements, did not introduce more restrictive trade regulations vis-à-vis third parties 
and that the specific commitments on trade in services had substantial coverage. Finally, Colombia expressed its readiness to answer any questions Members might have. 
1.21.  The representative of Peru said that re lations between the EU and Peru had prioritised 
dialogue on global issues and challenges, including economic, trade and financial matters, human 
rights, the environment, climate change, technological innovation, migration and the fight against drugs. Their trading relations were strong and dynamic and had been enhanced by the March 2013 
entry into force of the Agreement, which complement ed their existing ties within the framework of 
the multilateral trading system embodied by the WTO and the political and commercial relationship 
between the EU and the Andean Community. 
1.22.  Peru had incorporated trade into its national development strategy and had recognised its 
importance as a tool for social inclusion and poverty reduction. The Agreement reaffirmed this 
role, together with Peru's long term strategy for transforming itself into an exporting country, by further consolidating markets and creating improved opportunities for the Peruvian population 
through the attraction of investment. Within this framework, Peru's objectives in negotiating the 
Agreement were: to benefit from permanent preferen tial access for Peruvian exports to the EU by 
making the GSP plus advantages (which were unilateral, temporary and partial preferences) both 
binding and permanent; to increase and diversify exports, with an emphasis on non-traditional 
exports, by eliminating distortion caused by tari ffs, import quotas and para-tariff barriers and by 
favouring the development of economies of scale, a higher level of economic specialization and the more efficient allocation of production factors; to help to improve the quality of life of the Peruvian 
people through consumer access to cheaper, better quality and more varied products; to enhance 
the efficiency and productivity of Peruvian comp anies by facilitating the acquisition of inputs, 
technology and capital goods at lower prices, thus promoting their competitiveness and 
specialization, export of value-added manufactures and services, and Peru's integration into global 
value chains; and to create transparent and effective mechanisms to defend Peruvian trade interests in the EU States and to resolve any trade related disputes that could arise. 
1.23.  Two years from its entry into force, the Agreement was fulfilling these objectives. In 2014 
the EU had accounted for 16.5% of Peru's global goods exports, making it the second leading destination market after China. While total export s to the EU had fallen in 2014 in relation to 2012 
(the year before the entry into force of the Agr eement) due to the global economic slowdown and 
the fall in mineral prices, non-traditional exports, i.e. those with greater value-added, had 
increased by 23% and had accounted for 37% of total shipments to this trading bloc. The main exports had been agricultural, fishery, iron and steel, and textile products, many from micro and 
small exporting enterprises that accounted for 53 % of the Peruvian companies exporting to the 
EU. In fact, the EU had accounted for 20% of total non-traditional exports from Peru to the world, which made it the second leading destination market for these exports after the United States. 
1.24.  With regard to trade in services, the Agreement established commitments that largely 
exceeded the Parties' commitments under the WTO GATS. Compared to the GATS, there were new and improved commitments that benefitted the serv ices suppliers of the Parties in cross border 
supply and establishment in sectors such as communications and construction, environmental, 
financial, tourism and transport services. 
1.25.  With an investment share of 50%, the EU was the primary source of foreign direct 
investment in Peru in a number of sectors such as communications, mining, finance and energy, 
with stock amounting to US$11,639 million in 2014.  In 2013 and 2014, FDI flows from the EU to 
Peru had amounted to US$348 million. 
1.26.  The Agreement also recognised the importance of the conservation and sustainable use of 
biological diversity and its role in ensuring sustainable development, as well as the importance of 
respecting and preserving traditional knowle dge and the practices of native communities. 
1.27.  The Agreement was therefore helping Peru to consolidate its duty-free access to the EU 
(with a greater impact on the non-traditional sector), to establish stable and predictable rules on 
bilateral trade relations, to develop a diversified export sector for goods and services, and to 
promote the attraction of investment and th e sustainable development of the Parties. WT/REG333/M/1 
 
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  1.28.  The strengthening of bilateral relations between Peru and the EU in recent years was 
reflected not only in the Agreement and the growth  of trade in goods, services and investment, 
but also in similarities between Peru and the EU on the trade front, which were, in turn, reflected in shared interests at the WTO, for instance in th e field of intellectual property and the sponsorship 
of WTO document W/52, and in other regional and plurilateral trade forums, such as the TISA 
negotiations in Geneva; as well as in the EU's inte rest in the development of the Pacific Alliance, in 
which various EU Member countries were observers. 
1.29.  Lastly, she thanked the WTO Secretariat for preparing the factual presentation, Members for 
their interest and questions and the EU and Colombia, for their work with Peru in the preparation of the review. She hoped that the information given had helped to enhance Members' understanding of the terms of the Agreement and would be happy to answer any further questions 
they might have. 
1.30.  The representative of the United States  thanked all Parties and the Secretariat for the 
materials provided which had enabled the consider ation of the Agreement. The presentations had 
highlighted the many important aspects of the comprehensive Agreement. However, the U.S. 
noted the disproportionate protection of the Part ies' agricultural sectors in the Agreement as 
compared to their excellent commitments in indust rial goods. Also according to Table 5.1 of the 
factual presentation, both Colombia and Peru ha d non-notified RTAs, and though they were not 
listed, the U.S. believed the EU had a number of  non-notified interim agreements as well. He 
hoped that they could notify these agreemen ts as required under the WTO Transparency 
Mechanism for RTAs as soon as possible. 
1.31.  The Chairman said that consideration of  the Goods and Services Aspects of the Trade 
Agreement between the European Union and Colombia and Peru had allowed the Committee to 
clarify a number of questions and the oral discussion  of this RTA could be concluded in accordance 
with paragraph 11 of the Transparency Mechanism. If any delegations wished to ask follow up 
questions they were invited to forward submissions in writing to the Secretariat by 6 April 2015 and Parties were asked to submit replies in writing by no later than 20 April 2015. In accordance 
with paragraph 13 of the Transparency Mechanism all written submissions, as well as minutes of 
this meeting would be circulated promptly, in all WTO official languages, and would be made available on the WTO website. 
1.32.  The Committee took note of the comments made. 
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