WORLD TRADE  
ORGANIZATION   
WT/REG289/1 
9 January 2012 
 (12-0089) 
Committee on Regional Trade Agreements  
  
 
 
 
FACTUAL PRESENTATION 
 
Free Trade Treaty between 
Colombia and Mexico 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the consideration of the Free Trade Treaty between Colombia 
and Mexico, has been drawn up by the WTO S ecretariat on its own responsibility and in 
full consultation with the Parties.  The re port has been drawn up in accordance with the 
rules and procedures contained in the D ecision for a Transparency Mechanism for 
Regional Trade Agreements (WT/L/671). 
      
Any technical questions arising from this report may be addressed to Ana Christina 
Molina (tel:  +41 22 739 60 60) or Maria Pillinini (tel:  +41 22 739 52 44).  WT/REG289/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
   Page 
I.  TRADE ENVIRONMENT ............................................................................................................. ........ 1 
 A.   MERCHANDISE TRADE  ................................................................................................................. 1  
 B.   TRADE IN SERVICES AND INVESTMENT  ........................................................................................ 7  
II.  CHARACTERISTIC ELEMENTS OF THE TR EATY .................................................................... 10  
 A.   BACKGROUND INFORMATION  ..................................................................................................... 10  
III.  PROVISIONS ON TRADE IN GOODS ............................................................................................. 11  
 A.   IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  ......................................... 11  
  1.   General provisions ......................................................................................................... 11  
  2.   Liberalization of trad e and tariff lines ............................................................................ 14  
  3.   Liberalization by  Mexico ............................................................................................... 16  
  4.   Liberalization by  Colombia ............................................................................................ 19  
 B.   RULES OF ORIGIN  ....................................................................................................................... 22  
 C.   EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  ........................................ 25  
 D.   REGULATORY PROVISIONS ON TRADE IN GOODS  ....................................................................... 25  
  1.   Standards ..................................................................................................................... ... 25 
  2.   Safeguard mechanisms ................................................................................................... 27  
  3.   Anti-dumping and counte rvailing measures ................................................................... 28  
  4.   Subsidies and State-aid ................................................................................................... 29  
  5.   Customs-related procedures ........................................................................................... 29  
 E.   SECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  ................................................................. 30  
  1.   Agricultural Sector ......................................................................................................... 3 0 
  2.   Textile S ector  ................................................................................................................ . 31 
  3.   Automotive Sector ......................................................................................................... 31  
 F.   THE 2010  PROTOCOL  ................................................................................................................. 34  
IV.  PROVISIONS ON TRADE IN SERVICES AND INVESTMENTS ................................................ 36  
 A.   SCOPE AND DEFINITIONS  ............................................................................................................ 36  
 B.   DENIAL OF BENEFITS  ................................................................................................................. 38  
 C.   GENERAL PROVISIONS ON TRADE IN SERVICES  .......................................................................... 38  
  1.   Market access .................................................................................................................  39 
  2.   National and MFN treatment .......................................................................................... 39  
  3.   Commercial pr esence ..................................................................................................... 39  
  4.   Movement of natural persons ......................................................................................... 39  
  5.   Performance requirements .............................................................................................. 41  
  6.   Senior Management and Board of Directors .................................................................. 41  
  7.   Other investment-rela ted provisions .............................................................................. 41  
 D.   LIBERALIZATION COMMITMENTS  ............................................................................................... 41  
  1.   Colombia ...................................................................................................................... .. 42 
  2.   Mexico ........................................................................................................................ ... 46 
 E.   REGULATORY PROVISIONS  ......................................................................................................... 50  
  1.   Domestic re gulation ....................................................................................................... 50  
  2.   Recogn ition ................................................................................................................... . 50 
  3.   Balance of Payments safeguards .................................................................................... 51  WT/REG289/1 
Page iv  
 
   F.   SECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  .............................................................. 51  
  1.   Telecommunications  services ........................................................................................ 51  
  2.   Financial se rvices ........................................................................................................... 53 
V.  GENERAL PROVISIONS OF THE TREATY .................................................................................. 54  
 A.   TRANSPARENCY  ......................................................................................................................... 54  
 B.   CURRENT PAYMENTS AND CAPITAL MOVEMENTS  ..................................................................... 55  
 C.   EXCEPTIONS  .............................................................................................................................. . 55 
 D.   ACCESSION AND TERMINATION  .................................................................................................. 55  
 E.   INSTITUTIONAL FRAMEWORK ..................................................................................................... 56  
 F.   DISPUTE SETTLEMENT  ............................................................................................................... 57  
 G.   RELATIONSHIP WITH OTHER TREATIES CONCLUDED BY THE PARTIES  ....................................... 60  
 H.   GOVERNMENT PROCUREMENT  ................................................................................................... 64  
 I.   INTELLECTUAL PROPERTY RIGHTS  ............................................................................................. 65  
ANNEX I ....................................................................................................................... ....................................... 66  
ANNEX II ...................................................................................................................... ....................................... 72  
ANNEX III ..................................................................................................................... ...................................... 73  
ANNEX IV ...................................................................................................................... ..................................... 74  
ANNEX V ....................................................................................................................... ...................................... 75  
ANNEX VI ...................................................................................................................... ..................................... 77  
 
  WT/REG289/1 
 Page 1 
 
 
   
    
 
    
 
    I. TRADE ENVIRONMENT 
1. The Free Trade Treaty (here after "the Treaty") between Colombia and Mexico is the 
fifth Regional Trade Agreement (RTA) notified by Co lombia to the WTO and the fifteenth notified by 
Mexico.
1 
2. The size of Mexico and Colombia's economies differ greatly.  In 2010, the GDP of Mexico 
totalled US$1,039.1 billion, which is  3.6 times bigger than that of Colombia (US$285.5 billion).2  The 
difference, however, has become smaller since 1994 when the Treaty was signed.  The ratio then was 
more than five in favour of Mexico (US$513.3 compared with US$97.4 billion). 
3. Mexico and Colombia's participation in world trade also differs significantly.  With 
merchandise exports of US$229.7 billion and imports of US$234.4 billion in 20093, Mexico ranked as 
the world's 15th largest exporter and 16th largest importer.  As for Colombia, it ranked as the world's 
57th largest exporter and 54th largest importer with exports and imports amounting each to 
US$32.9 billion in the same year.4 
4. With regard to services, Mexico was the 40th largest exporter and 34th largest importer in 
2009.  In that year, its exports in services reached  US$15.4 billion, representing 0.46 per cent of world 
exports, while imports amounted to US$21.4 billion or  0.67 per cent of world imports.  In the same 
year, Colombia ranked as the world's 67th and 58th largest services exporter and importer accounting 
for 0.12 per cent of world exports (i.e. US$4.1 billion) and 0.21 per cent of world imports 
(i.e. US$6.8 billion).5 
A. MERCHANDISE TRADE  
5. Trade flows between the Parties are low and re present a small share in each Party's trade. 
                                                      
1 Source :  WTO Regional Trade Agreements Database, 
http://rtais.wto.org/UI/Pub licMaintainRTAHome.aspx.  
2 Source :  World Economic Outlook database, IMF.  GDP data are given in current prices.  In the case 
of Colombia, the 2010 data are estimates. 
3 These figures represent, respectively, 1.83 per cen t in world exports and 1.85 per cent in world 
imports. 
4 These figures represent, respectively, 0.26 per cen t in world exports and 0.26 per cent in world 
imports. 
5 WTO Statistics Database, Colombia Trade Profile and Mexico Trade Profile (2011). Key Facts 
 
Parties to the Treaty: Colombia and Mexico 
 Date of Signature: 13 June 1994 
 
Date of Entry into Force: 1 January 1995 
 
Final Year of Tariff 
Commitment Implementation: 2011 
 
Date of Notification: 13 September 2010 (goods and services) WT/REG289/1 
Page 2  
 
  6. In 2009, Colombia was Mexico's 4
th and 20th largest export and import partner with 
1.1 per cent and 0.3 per cent of its  total exports and imports, respec tively.  Mexico was Colombia's 
10th and 4th largest exporter and import partner, accounti ng for 1.6 per cent and 7 per cent of its total 
exports and imports. 
7. Charts I.1 and I.2 present the trends in gl obal and intra-Party merchandise between 1992 and 
2009.  Mexico's total trade with the world has st eadily increased over this period, except in 2000-2003 
when trade stagnated.  In 2009, exports reache d US$229.7 million, nearly five times the amount 
in 1992 (i.e. US$46.2 million).  Imports exhibite d a similar pattern, going from US$61.9 in 1992 to 
US$234.4 billion in 2009.  Mexico has maintained a deficit with the world during the period under review, except in 1995 and 1996.  With regards to Colombia, its total exports and imports grew 
timidly from 1992 until 2002, when growth accelerated  and both exports and imports surged.  In 2009 
total exports and imports amounted each to US $32.9 billion up from, respectively, US$11.9 billion 
and US$12.7 billion in 2002.  Duri ng this period, Colombia's trad e balance was in deficit, except 
between 1999 and 2001. 
02468
0100200300400
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009US$billion US$billionChart I.1 - Mexico: Merchandise imports from and exports to the 
world and Colombia, 1992-2009
Source : UNSD, Comtrade database.Imports from Colombia
Exports to ColombiaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
8. As for bilateral trade, Mexico had a trad e surplus with Colombia during the 1992-2009 
period.  This surplus has become more pronounced  since 2004 as a result of a surge in exports to 
Colombia.  From 2004 to 2009, exports to Colomb ia increased fourfold, from US$623.9 million to 
US$2,490.5 million.  In the case of Colombia, exports to Mexico increased but at a much slower pace.  
Exports grew slowly until 2003 to US$358.2 million and then accelerated to reach US$610.9 million 
in 2005.  In the following years, exports exhibited significant fluctuations:  they declined to 2007 and 
picked up in 2008 to US$617.0 million.  In both cases,  bilateral and total expo rts declined in 2009, 
most probably as a result of the global economic crisis.  WT/REG289/1 
 Page 3 
 
 
   
02468
051015202530354045
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009US$billion US$billionChart I.2 - Colombia: Merchandise imports from and exports to  the 
world and Mexico, 1992-2009
Source : UNSD, Comtrade database.Imports from Mexico
Exports to MexicoTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
9. The commodity structure of trade among the Parties and with the world during the years prior 
to the Treaty (i.e. 1992-1994 period) and in recent years (i.e. 2007-2009 period) are reported in 
Charts I.3a and I.3b.  The data reveal that the tr ade structure between the Parties has evolved over the 
surveyed period.  In the case of Mexico, between  1992 and 1994 it imported from Colombia mainly 
wood pulp (28.1 per cent), plastics (12.7 per ce nt), textiles (12.5 per cent) and chemicals 
(11.6 per cent), while in 2007-2009, minerals were  the main import category (26.5 per cent) followed 
by textiles (18.1 per cent), chemicals (10.8 per cent) and plastics (9.1 per cent).  As for Colombia, in 
1992-1994 its main imports from Mexico were:  chem icals (39.5 per cent), vehicles (21.1 per cent) 
and machinery (9.9 per cent).  In recent years th e share in chemicals declined at the expense of 
machinery, which became the main import cate gory (i.e. 39.9 per cent) in 2007-2009, followed by 
vehicles (17.1 per cent), chemicals (15.0 per cent) and base metals (10.2 per cent). 
10. As for the Parties' global trade patterns, the da ta show some complementarities;  and that the 
structure of Mexico's exports on one hand and of  Colombia's imports on the other hand have not 
changed much since 1992.  Mexico's main export sectors during 1992-1994 were machinery (36.9 per cent), minerals (15.0 per cent)  and vehicles (13.7 per cent).  In 2007-2009, the 
same sectors ranked as the top Mexican export s ectors.  Colombia's main imports during the 
two periods were machinery, chemicals, vehicles  and base metals.  Together these sectors accounted 
for 63.2 per cent in 1992-1994 and 65.2 per cent in 2007-2009 of Colombia's total imports from the 
world.  By contrast, Colombia's export structure has evolved to become more concentrated in minerals.  In 2007-2009, minerals (followed by vege tables) were the main export sector with almost 
half of total exports (44.6 pe r cent), while in 1992-1994, vegetables were the main export sector 
(31.3 per cent), followed by minerals (26.0 per cent).  Such an increase in the export share of minerals 
is probably the result of the recent rise in oil pri ces, Colombia's main export product.  In the case of 
Mexico, its main imports in 1992-1994 were:  mach inery (33.8 per cent), base metals (8.8 per cent), WT/REG289/1 
Page 4  
 
  plastics (6.7 per cent) and chemicals (6.6 per cen t).  In 2007-2009, machinery remained Mexico's 
main import sector but then was followed by vehicl es (9.2 per cent), base metals (8.5 per cent) and 
minerals (8.3 per cent).  WT/REG289/1 
 Page 5 
 
 
  Chart I.3a
Mexico and Colombia:  product compos ition of merchandise trade, annual 
average 1992-1994
Mexico's imports from Colombia Colombia's imports from Mexico
Source:  UNSD, Comtrade database.Per cent
Total:  US$83 million Total:  US$266 million
Total:  US$69 billion Total: US$9.5 billion
Total:  US$53 billion Total:  US$7.5 billionMexico's global exports Colombia's global exportsMexico's global imports Colombia's global imports 
Machinery
25.0
Base metals
8.8
Vegetables 4.0Machinery
36.9Other 
6.8Other 
3.8
Vehicles 13.7Plastics 6.7
Chemicals 4.0Vegetables
31.3 Minerals 4.3
Minerals 15.0Other 
6.5Other 
6.3
Plastics 3.1Other 
9.9Chemicals 
39.5
Wood pulp 2.6Machinery 
33.8
Optical 3.1Miscellaneous 2.0
Wood pulp 3.4
Minerals 2.7Other 
14.8
Prepared foods 2.3
Base metals 2.9Chemicals 15.2
Live animals 2.7Wood pulp 28.1
Minerals 7.1Textiles 5.5
Base metals 8.9
Vehicles 13.8Textiles 4.2
Textiles 4.3Raw hides 2.4Articles of stone, plaster, cement 1.7Wood pulp 3.0
Optical 2.3Vehicles 21.1
Minerals 26.0Prepared foods 5.3Raw hides 2.1
Chemicals 3.5Miscellaneous 1.9
Textiles 5.0Vehicles 4.4Vegetables  3.5Prepared foods 2.2
Plastics 5.0Plastics 12.7
Textiles 12.5Machinery 7.0Base metals 4.7
Chemicals 11.6Machinery 9.9Base metals 8.3Plastics 6.5
Vegetables 5.2Optical 2.7Prepared foods 2.3
Live animals 2.5
Base metals 5.6Miscellaneous 2.9Plastics 2.8Prepared foods 1.7
Textiles 9.6Precious stones 5.0Chemicals 6.6Wood pulp 3.8
Machinery 2.1
 
 WT/REG289/1 
Page 6  
 
  Chart I.3b
Mexico and Colombia:  product compos ition of merchandise trade, annual 
average 2007-2009
Mexico's imports from Colombia Colombia's imports from Mexico
Source:  UNSD, Comtrade database.Per cent
Total:  US$818 million Total:  US$2,832 million
Total:  US$275 billion Total: US$35 billion
Total:  US$264 billion Total:  US$33 billionMexico's global exports Colombia's global exportsMexico's global imports Colombia's global imports 
Machinery
25.7
Vehicles 
9.2
Optical 3.4Articles of stone, plaster, cement 1.8
Machinery
38.1Other 
5.2Other 
5.0
Vehicles 15.6Prepared foods 4.6
Base metals 8.5
Miscellaneous 2.8 Minerals
44.6 Vegetables 5.3
Minerals 16.2Base metals 6.6Other 
5.6Other 
4.1
Live animals 2.8Other 
6.6Machinery 
39.9
Chemicals 5.0Machinery 
36.9Prepared foods 1.9
Optical 4.2Textiles 2.9
Textiles 3.7Miscellaneous 2.0Other 
4.3
Optical 3.0
Wood pulp 2.4Chemicals 15.3
Vehicles 9.9Minerals 26.5
Machinery 5.6Textiles 3.0
Base metals 9.3
Vehicles 14.9Minerals 4.2
Chemicals 3.1Base metals 3.3Miscellaneous 1.8 Prepared foods 1.9
Textiles 2.5Vehicles 17.1
Vegetables 11.1Plastics 4.2Prepared foods 3.6Machinery 3.2Vegetable Fats and oils 2.7
Minerals 8.3Chemicals 7.8Plastics 6.8Vegetables 3.0Wood pulp 2.3
Plastics 6.1Textiles 18.1
Chemicals 10.8Wood pulp 5.6Vehicles 4.5
Plastics 9.1Chemicals 
15.0Base metals 10.2Plastics 7.0
Wood pulp 2.4
Prepared foods 3.5Articles of stone, plaster, cement 1.8
Live animals 4.8
Base metals 5.3Vegetables 2.6Prepared foods 2.6Plastics 2.4
Textiles 5.2Precious stones 3.9
 
  WT/REG289/1 
 Page 7 
 
 
  B. TRADE IN SERVICES AND INVESTMENT  
11. Chart I.4 depicts Mexico's trade in commercial  services by type of activity in 1992-2009 and 
shows that during this period, Mexico was a net im porter of services (except in 1995 and 1996 when it 
had a trade surplus). 
12. In 15 years Mexico's services exports increased by 53.0 per cent and went from 
US$10.0 billion in 1994 (the year the Treaty was signed) to US$15.4 billion in 2009.  Services 
exports are highly concentrated in one single activ ity, namely travel servi ces which accounted (on 
average) for 69.0 per cent of export revenues during this period, followed by transportation (11.1 per cent) and insurance (8.7 per cent) servi ces.  As for services imports, they fell in 1995 but 
then, rose steadily to 2009, reaching US$21.4 b illion, more than twice their value in 1995 
(US$9.0 billion).  Insurance (38.5 per cent), travel  (36.7 per cent) and tran sportation (14.5 per cent) 
services capture most of the imports:  together, they account on average for 89.7 per cent of total 
services imports in each year. 
0510152025
1992
199319941995
1996
1997199819992000200120022003
2004
20052006200720082009Chart I.4
Mexico:  total commercial services trade, 1992-2009
Exports Imports
Transportation services
Travel
Note: No trade data on construction and computer and information services (1992-2009). No export data on communications service s (1992-1993); 
financial services (1992-2009);  other business services (2005-2006, 2008) and personal, cultural and recreational services (19 92-1993).  No import data 
on communications services (1992-1996);  financial services (1992-1993);  royalties and licence fees (2007-2009);  other busine ss services (2008-2009); 
personal, cultural and recreational services (1992-1993). 
Source :  UNCTADStat.Communications servicesUS$ billion
ConstructionFinancial services
Computer and information servicesRoyalties and licence fees
Other business services
Personal, cultural and recreational 
servicesUS$ billion
Insurance services0510152025
1992
19931994199519961997199819992000200120022003200420052006200720082009
 
 
13. As for Mexico's global investments, Chart I.5 shows that inward foreign investments have 
steadily increased since 1994 and at a brisker p ace since 2000.  In 2009 Mexican inward FDI 
amounted to US$309.5 billion, which was more than  nine times its 1994 value (US$33.2 billion).  
Outward foreign investments also expanded signifi cantly during the surveyed period although their 
stock levels remained modest.  Outward FDI gr ew steadily since 1995 and, like inward FDI, 
accelerated in 2000.  In 2009, their values reached  US$53.5 billion compared to US$3.5 billion in 
1992, which represented a 15-fold increase. 
 WT/REG289/1 
Page 8  
 
  050100150200250300350
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009inward outward
Source: UNCTADStat.Chart I.5
Mexico:  inward and outward foreign investment stock with world, 1992-2009
US$ billion
 
 
 
14. Chart I.6 depicts the breakdown of Colombia's trade in commercial services in 1992-2009.  
Like Mexico, Colombia shows a global trade defi cit during this period (except in 1993), which has 
become more pronounced in recent years.  Until 2003, growth in commercial services exports was 
modest and characterized by small fluctuations.  During the following years, exports steadily increased and went from US$2.2 billion in 2004 to US $4.1 billion in 2009.  Travel services accounted 
for the largest share of exports (48.5 per cent as of  2009) followed by transportation (27.5 per cent) 
and other business services (13.4 per cent).  These cat egories were also the main drivers of export 
growth over the surveyed period.  On the import side, trade flows increased by 83.6 per cent to 
US$3.6 billion between 1992 and 1997.  In subsequent  years, imports fluctuated between US$3.1 and 
US$3.5 billion until 2003 when they picked up  markedly, reaching $6.9 billion in 2009.  
Transportation (33.5 per cent of imports as of 2009), travel (25.2 per cent) and other business 
(22.9 per cent) services account for the largest shares  of services imports.  Prior to the Treaty, these 
were also the main cate gories traded in terms of both imports and exports. 
15. Chart I.7 depicts Colombia's global invest ment position and shows that, like Mexico, 
Colombia is a net recipient of FDI.  Colombia's outward stock of foreign direct investment (FDI) 
amounted to US$4.4 billion in 2004, which is about nine times the valu e in 1992 (i.e. US$0.5 billion).  
In the following years, outward FDI grew at a fa ster pace and reached US$16.2 billion in 2009.  The 
inward stock of FDI expanded by six times si nce 1992, totalling US$24.8 billion in 2004 and showed 
a temporary surge in 1997.  Like the outward stock of FDI, from 2004 the inward stock of FDI increased rapidly to reach US$74.1 billion in 2009.  Contrary to trade in goods, foreign investment did not decline in 2009.  WT/REG289/1 
 Page 9 
 
 
  012345678
1992
1993
1994
1995199619971998199920002001200220032004
2005
2006200720082009Chart I.6
Colombia:  total commercial services trade, 1992-2009
Exports Imports
Transportation services
Travel
Note: No trade data on communication services, financial services and computer and information services from 1992-1993.  No exp ort data on 
construction (1992-2009);  insurance services (1994-1995, 1998, 2000-2009) and personal, cultural and recreational services (19 92-1993). No import 
data on construction (1992-1994, 2000-2005, 2007). 
Data from 2003-2004:  preliminary and from 2005-2009:  provisional.
Source :  UNCTADStat (1992-1993) and Colombian authorities (1994-2009).Communications servicesUS$ billion
ConstructionFinancial services
Computer and information servicesRoyalties and licence fees
Other business services
Personal, cultural and recreational 
servicesUS$ billion
Insurance services012345678
1992
1993
199419951996
1997
199819992000
2001
200220032004
2005
200620072008
2009
 
 
01020304050607080
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009inward outwardChart I.7
Colombia:  inward and outward foreign investment stock with world, 1992-2009
US$ billion
Source :  UNCTADStat. WT/REG289/1 
Page 10  
 
   
II. CHARACTERISTIC ELEMENTS OF THE TREATY 
A. B
ACKGROUND INFORMATION  
16. The Treaty, which covers goods and services, was signed by Mexico, Colombia and 
Venezuela on 13 June 1994 and entered into force on 1 January 1995;  the services commitments were 
agreed later on and entered into force on 1 January 1997.6  The Treaty was signed in accordance with 
the provisions of the 1980 Treaty of Montevideo in the framework of the Latin American Integration 
Association (LAIA) and has been formali zed in LAIA as Economic Complementarity 
Agreement (ACE) No. 33. 
17. The Treaty was notified to the WTO by both Colombia and Mexico on 13 September 2010 
under Article XXIV:7(a) of the GATT 1994 and Ar ticle V.7(a) of the GATS (WT/REG289/N/1).7  
The Treaty consists of 23 chapters (see Box II.1);  annexes are included at the end of the respective 
Chapters.  Four Protocols, concluded since the Treat y's entry into force, are also integral to it. 
18. In 2006, Venezuela withdrew from the Treaty;  earlier commitments between Colombia and 
Mexico were however not affected and the "G-3" Treaty, as it was generally referred to, became in 
practice a bilateral treaty as of mid-November 2006.8,9 In deciding to adapt the Treaty to the changed 
circumstances, and to deepen th eir commitments with respect to trade in goods, the two remaining 
Parties have negotiated various modi fications to the Treaty in the form of Decisions by the Treaty's 
Administrative Commission (Decisions Nos. 57-60 of 7 April 2010), which have evolved into a new 
Protocol, signed on 11 June 2010 and in force since 2 August 2011.10  The 2010 Protocol, consisting 
of five parts and nine annexes, foresees changes in the Treaty's name, market access, rules of origin as 
well as on its administration and implementation.  The Pr otocol is considered an integral part of the 
Treaty;  Section III.F of this document describes its main features.  The Protocol was notified to the 
WTO on 12 December 2011 (WT/REG289/N/1/Add.1). 
19. In July 2005, Colombia, Mexico, Venezuela and Panama held discussions to examine the 
possibility of Panama acceding to the G-3.  As a result of these discussions, Panama decided that the 
conditions at the time were unsuitable for proceeding with the accession.11 
                                                      
6 Throughout this document, all references made to decisions of the Administrative Commission can be 
found through the general link provided below, that lists and provide links to all these Decisions: 
https://www.mincomerc io.gov.co/publicaci ones.php?id=14558 and  
http://www.economia.gob.mx/comunidad-negoc ios/comercio-exterior/temas-regionales.  
7 The text of the Agreement, along with its schedules, annexes and protocols is available on the 
websites of Mexico's Secretariat of Economy at and Colo mbia's Ministry of Commerce,  Industry and Tourism at 
respectively https://www.mincomercio.gov.c o/tlc/publicaciones.php?id=11963  and  
http://www.economia.gob.mx/files/TLC%20M%C 3%A9xico%20Colombia%20Venezuela.pdf.  
8 On 23 May 2006, Venezuela informed the Parties of its withdrawal from the Agreement;  pursuant to 
the terms of the Agreement, the withdrawal became effec tive on 19 November 2006. 
9 The "Group of Three" (Colombia-Mexico-Venezu ela) was different from most other Free Trade 
Agreements, which had, in general, been negotiated bilaterally, except for the NAFTA (US-Canada-Mexico) 
and the Northern Triangle (Mexico-El Salvador-Guatemala-Honduras). 
10 The text of the Protocol is available at:  
http://200.77.231.109/economia/files/Protocolo%20Modificatorio%20%20TLC%20Mexico%20%20Colombia.
pdf 
11 Panama has partial scope bilateral agreements with Mexico and Colombia, signed respectively 
in 1985 and 1993.  Mexico signed AAP No. 14 under Article 25 of the Treaty of Montevideo of 1980 (TM80) 
(Mexico-Panama) on 22 May 1985;  Colombia signed AAP No. 29 under Article 25 of the TM80 (Colombia-Panama) on 9 July 1993.  These agreem ents have not been notified to the WTO;  they are 
listed in Section V.H.  WT/REG289/1 
 Page 11 
 
 
   
Box II.1 Structure of the Treaty  
  
Chapter I  Initial Clauses 
Chapter II General Definitions 
Chapter III National Treatment and Market Access for Goods 
Chapter IV Automotive Sector 
Chapter V Agricultural Sector and Phyt osanitary and Zoosanitary Measures 
Chapter VI Rules of Origin 
Chapter VII Customs Procedures 
Chapter VIII  Safeguard Measures  
Chapter IX  Unfair  Trade Practices  
Chapter X General Principles on Trade in Services 
Chapter XI Telecommunications 
Chapter XII Financial Services  
Chapter XIII Temporary Entry for Business Persons  
Chapter XIV Technical Regulations 
Chapter XV Government Procurement 
Chapter XVI Policies Regarding State companies 
Chapter XVII Investment  
Chapter XVIII Intellectual Property  
Chapter XIX Dispute Settlement  
Chapter XX Treaty Administration  
Chapter XXI Transparency 
Chapter XXII Exceptions 
Chapter XXIII Final Clauses 
  
Additional Protocols, adopted at a later stage 
 Protocol to Chapters X and XVII on List of Reservations on Services and Investment 
(of 1.1.97) 
 Protocol to Chapter XII on List of Reservations on Financial Services (of 1.1.97) 
 Protocol to Chapter XII on List of Reservations on Financial Services (of 28.09.01) 
 Protocol Modifying the G-3 Treaty (of 11.6.10) 
  
 
III. PROVISIONS ON TRADE IN GOODS 
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
20. The Parties agree to gradually establish a bilate ral free trade area;  the original time-frame 
provided for a maximum transition period of 10.5 year s for all products except automotive and certain 
agricultural goods, with duties generally abolis hed by 1 July 2004 through an automatic and 
progressive reduction.  A longer 13 years transition period was foreseen for automobiles;  however, the modification of Chapter IV on the automotive sect or has extended the transition period to 16 years 
for Mexico and 17 for Colombia.  Agricultural products
12 were either subject to the general transition 
period or benefitted from a transition period of 15.5 years or were not liberalized, either because this 
was not originally foreseen or because negotiations on their liberalization, scheduled in the Treaty, 
were not successfully concluded. 
                                                      
12 Agricultural goods are defined in Article 5-01 to include the WTO definition of agricultural goods, 
plus HS 50.03 to 53.05.  All references made in this document to agricultural goods shall therefore refer to all 
these goods. WT/REG289/1 
Page 12  
 
  21. There are two categories of products that remain  dutiable at the end of the transition period, 
namely those completely excluded from the Treaty's coverage - on which the MFN rate is applied - 
and those benefiting from regional preferences (" PAR") provided for within LAIA.  Under LAIA, 
regional preferences are granted in accordance with  the level of development of countries, with 
Mexico granting a margin of preference of 28 per cent to imports from Colombia and Colombia 
a margin of preference of 12 per cent to imports  from Mexico;  these margins of preference are 
applied on the MFN rate. 
22. Article 3-04 provides for a general prohibition on increasing, or adopting new, import duties 
on originating products as well as for their progressive  elimination.  Annex 1 to Article 3-04 and the 
Parties' individual Annexes detail the Tariff Eliminat ion Programme (TEP).  The Article also specifies 
that increase of a duty remains possible (i) if it had been autonomously reduced, and up to levels not 
higher that those specified under the TEP;  and (ii)  if authorized following a WTO dispute settlement. 
23. Tariff reductions took place on 1 Ja nuary 1995 and thereafter on 1 Ju ly of each year, with the 
second reduction taking place on 1 July 1996.  Box III.1 provides a summary of the Treaty's categories applied between the Par ties.  Reductions have generally been made after setting the base 
rate by applying the regional tariff preference to each country's MFN of 1993, with few exceptions:
13 
(a) Higher rates than the base rate (or the app lied rate in the case of the new regime) were 
applied for reductions on various automotive products, in particular in Mexico (both 
in the original and new regime); 
 
(b) lower rates were applied by Colombia on numerous tariff lines when the rate that 
would have resulted from the reduction woul d be higher than 4.4 per cent;  in these 
cases, the rate of 4.4 per cent has been applied. 
 
Box III.1:  Categories of Tariff Elim ination in the Colombia-Mexico FTT  
(general) Elimination of tariffs in 10 equal annual instalments;  duty free on 1.7.04 
B (Colombia only) Elimination of tariffs in 5 equal annual instalments;  duty free on 1.7.99 
P (Colombia only) The lower of the general reduction applied and 4.4% 
M Automotive sector tariffs.  Mandatory duty free on 1.1.07, if no agreement to do 
otherwise reached in the Administrative Commission;  up to that date, tariffs can be 
maintained at base rate levels or higher if provided in the lists 
Ma  Automotive tariffs.  Elimination of tariffs in 11 annual instalments starting on 1.1.97; 
duty free on 1.1.07 
Aga First instalment (of a normal 10 year reduction) on 1.1.95;  other instalments contingent 
on agreement being found on including sugar in the TEP 
EXCL PAR Product benefitting from LAIA's general preference but on which duties remain 
EXCL Product excluded from liberalization 
  
Reduction in accordance with the new Automotive regime  
M (for Mexico)a Elimination of tariffs in 5 annual instalments starting on 1.1.05;  duty free on 1.1.09 
M (for Colombia)a Elimination of tariffs in 7 annual instalments starting on 1.1.05;  duty free on 1.1.11 
A Elimination of tariffs as from entry into force of the new automotive regime, on 1.1.05 
B Elimination of tariffs in 3 annual instalments starting on 1.1.05;  duty free on 1.1.07 
B* Elimination of tariffs in 1 instalment;  duty free on 1.1.07 
B+ Elimination of tariffs in 5 annual instalments starting on 1.1.05;  duty free on 1.1.09 
C Elimination of tariffs in 6 annual instalments starting on 1.1.05;  duty free on 1.1.10 
                                                      
13 These exceptions were provided for in paragraphs 3 and 8 of Annex 1 to Article 3-04.  Other 
exceptions have also been provided in this Article, bu t they were only applied w ith respect to Venezuela.  WT/REG289/1 
 Page 13 
 
 
   
24. No automatic rendezvous clause is provided for with  respect to trade liberalization.  However, 
upon a Party's request, consultations will take pl ace regarding acceleration of, or inclusion of 
new products in, the TEP.  Annex 2 to Article 3-04 specifically provides, subject to agreement being 
reached on rules of origin, for the inclusion in the TEP within a maximum transition period of 
ten years for products of heading 39.03 (polymers of styrene) among the three Parties.14  These 
negotiations were foreseen to be concluded by end 1997;  however, d espite various extensions of the 
negotiating period until end September 200215, no agreement was reached and these products 
remained outside the Treaty's scope.  With Decisi on No. 60, the Parties agreed, amongst other things, 
on the rule of origin for heading 39.03 and, through Decision No. 59, incorporated subheadings 
3903.20 and 3903.30 into the Treaty for immediate elimination, while subheadings 3903.11, 3903.19 
and 3903.90 were incorporated in to tariff elimination programmes. 
25. The TEP has been modified five times, two rela ting to the acceleration of liberalization of 
some products between Mexico and Venezuela (both in 1997), two concerning the inclusion of some 
products into the TEP between Colombia and Mexi co (both in 2001), and one incorporating the 
automotive sector into the TEP (in 2005).16  Annex II lists the products involved. 
26. Article 3-09 includes a general prohibition on r estrictions on imports from the other Party, 
including quantitative restrictions (Q Rs);  the exceptions are as follows: 
(a) QRs explicitly allowed elsewhere in the Treaty; (b) QRs authorized under Article XI and it s interpretative notes, which are made an 
integral part of the Treaty
17; 
(c) price undertakings agreed in the context of dumping and subsidies proceedings; 
(d) measures listed in Annex to Article 3-09, as follows: 
(i) prohibition on imports of used products for both countries.  However, 
temporary imports of used goods are authorized if they are used for providing transport services, or for complying with a government procurement contract; 
(ii) QRs/prohibitions on imports of energy goods
18 for Mexico, and for Colombia 
when these are needed to  ensure compliance with Colombia's constitutional 
measures;  and 
(iii) QRs/prohibitions on imports of certain automotive goods19 for Mexico. 
27. In case where QRs are applied on imports from a non-party, the Party is free to take necessary 
measures (including limiting imports from the other Pa rty) to counter possible circumvention of such 
                                                      
14 It also provided for the inclusion into the TEP of Chapters 50 to 63 (textiles) between Colombia and 
Venezuela, subject to the same condition. 
15 Decisions Nos. 17, 22 and 32 of the Administrative Commission have extended the negotiating 
period. 
16 Decisions of the Administrative Commission Nos. 12 and 26, 37 and 38, and 42. 
17 The relevance of Article XI is to be seen in light of stricter disciplines in force since the entry into 
force of GATT 1994. 
18 Energy goods are those of HS 2707, 2709-2714 and 2901.10 (paragraph 2 of Section B of Annex to 
Article 3-09). 
19 Those automotive goods are those of HS 8407.34, 8701.20, 8702-8704, 8705.20, 8705.40, 8706 
(paragraph 3 of Section B of Annex to Article 3-09). WT/REG289/1 
Page 14  
 
  QRs.  Upon request of the other Party, consulta tions shall take place with the aim of minimizing 
negative price, trading and distribution e ffects in the market of that Party. 
28. In accordance with Article 3-10, customs taxes for services rendered related to originating 
products were eliminated at the end of June 2000;  si nce the date of entry into force of the Treaty, no 
Party can increase or establish customs taxes for ser vices rendered by customs, and the Parties agreed 
to eliminate these taxes as of June 2000.  As at December 2011, neither Colombia nor Mexico applied 
taxes for services rendered by customs. 
29. Paragraph 4 of Article 3-04 stipul ates that all preferences among the Parties that existed in the 
LAIA context expired as of the Treaty's entry into force. 
2. Liberalization of trade and tariff lines
20 
30. Trade liberalization by the Treaty for both Parties in terms of both lines and imports covered 
(on the basis of 1992-1994 as well as 2006-2008) is above 94 per cent when the full transition period 
is considered;  if the original ten-year trans ition period is considered only, no significant change 
occurs on coverage in terms of tariff lines but the lowest import coverage dr ops to around 78 per cent.  
Better than MFN treatment falling short of tariff elimin ation is applied by both Parties, in accordance 
with the general LAIA preferential regime;  these apply to a maximum of 2.1 per cent of the lines and 
2.3 per cent of bilateral imports. 
31. Salient features of Mexico's elimination of tariffs vis-à-vis  Colombia are as follows: 
(a) Prior to the Treaty's entry into force, al ready 42.8 per cent of Mexico's imports from 
Colombia - on the basis of 1992-1994 imports - entered duty free, as 9 per cent of tariff lines had an MFN zero duty.  This presen ts bilateral trade that was concentrated 
in a relatively limited number of products;  considerable diversification has taken 
place since then with imports of these products falling to only 18.3 per cent on the basis of total imports in 2006-2008. 
(b) At entry into force, liberalization of an additional 510 lines allowed half of 
Colombia's exports to Mexico to enjoy duty-free treatment on the basis of 1992-1994 
figures (but only 41 per cent on the 2006-2008 basis). 
(c) Backloaded liberalization coupled with the absence of tariff elimination between the 
date of entry into force and the general end of implementation date of 1 July 2004.
21  
Liberalization since 2005, which accounted fo r 3.7 per cent of Mexico's tariff lines, 
has increased the value of imports in these products by more than 55 times;  in 
comparison, liberalization of the other 93 per cent of lines (from 1995 to 2004) has 
seen import values for the corresponding prod ucts increase by less than nine times. 
                                                      
20 Liberalization figures, based on the files provided by  the Parties, include the tariff reductions of the 
2005 automotive regime, but exclude the 2002 acceleratio n commitments involving 48 lines for Mexico and 
7 lines for Colombia;  for th e latter, however, acceleration of 6 lines has been included in the original file and 
thus reflected in the calculations. 
21 Except those agreed on the 20 02 acceleration, but which have no t been reflected in Mexico's 
submission.  WT/REG289/1 
 Page 15 
 
 
  Table III.1 
Tariff elimination commitments under the Treaty and corresponding average trade 
A.  Mexico 
Duty phase-out period Number 
of lines % of total 
lines in 
Mexico's 
tariff 
schedule Value of Mexico's 
imports from 
Colombia 
(1992-1994) 
in million US$ % of Mexico's 
total imports from 
Colombia 
1992-1994 Value of 
Mexico's 
imports from 
Colombiaa 
(2006-2008) 
in million US$ % of Mexico's 
total imports 
from Colombia 
2006-2008 
MFN duty free (1995) 1,065 9.0 39.1 42.8 147.0 18.3 
1995 510 4.3 10.7 11.8 181.7 22.7 
2004 9,404 79.7 37.2 40.8 386.6 48.3 
2005 285 2.4 0.8 0.9 43.3 5.4 
2006 3 0.0 0.0 0.0 0.7 0.1 
2007 18 0.2 0.0 0.0 1.6 0.2 
2009 36 0.3 0.0 0.0 0.0 0.0 
2010 89 0.8 0.2 0.2 9.9 1.2 
Remain dutiableb 391 3.3 3.2 3.5 30.4 3.8 
Total 11,801 100.00 91.2 100.0 801.3 100.0 
Out of the total 391 "remain dutiable" lines: 
Benefits from LAIA's PAR 
preferencec 231 2.1 1.3 1.5 18.8 2.3 
MFN applied 160 1.2 1.9 2.8 11.6 1.4 
 
a The average import figures were estimated as the data were tr ansposed from HS 2007 to HS 1992 nomenclature using the World 
Customs Organization (WCO) HS 6-digit concordance table. 
b Tariff lines 8716.39.03 and 8716.39.04 have 20 per cent duties at  the end of the implementation period (2010) and therefore 
accounted under the remain dutiable lines even though its MFN 1995 are already duty-free. 
c 18 tariff lines under LAIA are extractions ("ex"), meaning it c ontains only part of the referenced tariff line code.  The tar iff lines 
are 0407.00.01;  0807.10.01;  1005.90.99;  1006.20.01;  1006.30.01;  1107.10.01;  1107.20.01;  1208.90.99;  1302.19.99;  
1502.00.01;  1602.49.99;  1702.90.99;  1901.90.99;  1905.30.01;  2002.90.99;  2007.91.01;  2007.99.04 and 2007.99.99.  PAR preference is a margin of preferen ce of 28 per cent on the MFN applied rate. 
 
Note: The tariff line and import figures exclude products beyond HS Chapter 97. 
 Based on the HS 1992 nomenclature. 
 
Source : WTO estimates based on da ta provided by Mexico. 
32. The main characteristics of Colombia's liberalization vis-à-vis  Mexico are as follows: 
(a) Prior to the Treaty's entry into for ce, MFN duty-free was of relatively small 
importance in terms of both tariff lines - 91 lines representing 1.3 per cent of the total 
number of lines - and imports from Mexico (3.8 per cent on the basis of 1992-1994 imports and 0.7 per cent of 2006-2008 imports); 
(b) liberalization at entry into force produ ced a boom in imports from Mexico, with the 
additional 255 lines that became duty free a llowing an additional one third of imports 
from Mexico (based on 1992-1994 imports ) to enter Colombia duty free (but 
significantly less on the basis of 2006-2008 imports); 
(c) backloaded liberalization was coupled w ith staged, full liberalization in 1999, 2002 
and finally 2004.
22  In 2011 there was a significant increase in imports under the 
Treaty, by allowing around an additional one fifth of imports from Mexico to enter 
Colombia duty free (on the basis of both 1992-1994 and 2006-2008 data). 
                                                      
22 2002 liberalization is that provide d for in the acceler ation Decisions. WT/REG289/1 
Page 16  
 
  Table III.1 
Tariff elimination commitments under the Treaty and corresponding average trade 
B.  Colombia 
Duty phase-out period Number of 
lines % of total lines 
in Colombia's 
tariff schedule Value of 
Colombia's 
imports from 
Mexico 
(1992-1994) 
in million US$ % of 
Colombia's 
total imports 
from Mexico 
1992-1994 Value of 
Colombia's 
imports from 
Mexicoa 
(2006-2008) 
in million US$ % of 
Colombia's 
total imports 
from Mexico 
2006-2008 
MFN duty free (1995)  91 1.3 9.0 3.8 16.3 0.7 
1995  255 3.7 79.2 33.0 160.4 6.6 
1999  70 1.0 8.2 3.4 35.5 1.5 
2002  6 0.1 0.4 0.2 2.8 0.1 
2004  5,851 84.7 90.4 37.6 1,762.3 72.0 
2005  102 1.5 1.2 0.5 8.0 0.3 
2006  22 0.3 0.6 0.2 4.5 0.2 
2007  20 0.3 0.4 0.2 2.1 0.1 
2008  1 0.0 0.0 0.0 0.0 0.0 
2010  52 0.8 0.9 0.4 7.0 0.3 
2011  50 0.7 46.4 19.3 418.8 17.1 
Remain dutiable  384 5.5 3.6 1.5 30.7 1.3 
Total  6,904 100.00 240.3 100.0 2,448.3 100.0 
Out of the total 384 "remain dutiable" lines: 
Benefits from LAIA's PAR 
preferenceb  32 0.5 0.3 0.1 2.6 0.1 
MFN applied  352 5.0 3.3 1.4 28.1 1.2 
 
a The average import figures were estimated as the data were tr ansposed from HS 2007 to HS 2002 nomenclature using the World 
Customs Organization (WCO) HS 6-digit concordance table. 
b The products under LAIA are extractions ("ex"), meaning it contai ns only part of the referenced tariff line code.  PAR prefer ence 
is a margin of preference of 12 per cent on the MFN applied rate. 
 Note: The import figures exclude products beyond HS Chapter 97. 
 Based on the HS 2002 nomenclature. 
 
Source : WTO estimates based on the data provided by Colombia. 
 
3. Liberalization by Mexico 
33. The vast majority (96.6 per cent) of Mexico's MF N tariffs prior to entry into force were lower 
than 20 per cent;  7 lines (sugar) had specific duties and imports of a total of 15 lines were prohibited.  
As can be seen from Chart III.1, at entry into fo rce, tariff ranges between 20 per cent-30 per cent and 
those higher than 40 per cent did not benefit from elimination, though staged reductions have taken 
place.  In fact, out of the 55 lines within these ra nges, only one (coffee extracts) has seen its tariff 
eliminated (in 2004).  Since 2004, all tariffs that were eliminated had a MFN rate of 20 per cent or 
lower.  WT/REG289/1 
 Page 17 
 
 
  0 2,000 4,000 6,000 8,000 10,000 12,0001995200420052006200720092010Chart III.1
Mexico's duty elimination under the Treaty
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Mexico.Number of duty-free lines (cumulative)
Duty-free ≤10% ≤20% MFN is: ≤30% ≤50% >50% ≤40% Prohibitedspecific 
duty
 
 
34. Table III.2 depicts Mexico's liberalization in te rms of HS Section.  As indicated earlier and 
shown in the table, the excluded products are ma inly from Sections I-IV, with around one third of 
lines remaining dutiable (as listed in paragraph 3 to A nnex 2 to Article 5-04).  Sugar in particular is 
not included, and that has had the effect of also ex cluding various other agricultural products from the 
Treaty's coverage (see paragraph 81 below);  other excluded agricultural products include meat and 
ham, dairy products, wheat and corn flour, tobacco , etc.  As indicated in paragraph 24 above, 
polymers of styrene and certain rubber and articles are excluded as are certain trailers and 
semi-trailers of subheadings 8716.31, 8716.39 and 8716. 40.  The latter are in fact the only industrial 
products having an average applied rate higher th an 15 per cent, while for dutiable agricultural 
products this is the lowest average. WT/REG289/1 
Page 18  
 
  Table III.2 
Mexico:  Tariff elimination unde r the Treaty, by HS section 
HS section and description  MFN 
average 
% Total 
No. of 
lines  Number of duty-free lines  
No. of lines 
remaining 
dutiable  
Avg. Final Tariff 
(Dutiable) %  MFN 1995 
1995 
2004 
2005 
2006 
2007 
2009 
2010 
I Live animals and animal 
products 27.7 254 11 170    73 55.5
II Vegetable products 15.3 388 73 235    80 29.1
III Animal or vegetable fats 
and oils 18.9 84 1 28    55 19.1
IV Prepared food etc. 18.3 259 4 1 135    119 15.0
V Minerals 8.8 220 30 8 182    
VI Chemicals and chemical 
products 10.3 2,772 288 158 2,301 3    22 8.9
VII Plastics and rubber 13.0 528 26 32 431 10 1  16 12 9.3
VIII Hides and skins 15.2 98 8 1 89    
IX Wood and articles 15.9 124 122 1  1 
X Pulp, paper etc. 9.6 336 38 23 273    2 -
XI Textiles and textiles 
articles 19.8 1,076 5 132 924    15 9.4
XII Footwear, headgear 24.9 71 9 62    
XIII Articles of stone 15.3 350 3 329 3   15 
XIV Precious stones, etc. 9.4 81 23 1 57    
XV Base metals and base 
metals products 12.9 1,325 37 54 1,220 10   4 
XVI Machinery 11.5 2,585 448 62 1,875 171 11  18 
XVII Transport equipment 13.5 360 11 182 80 4 36 34 13 20.0
XVIII Precision equipment 12.2 545 45 14 475 10   1 
XIX Arms and ammunition 17.2 27 27    
XX Miscellaneous 
manufactured articles 17.7 304 15 287 1 1   
XXI Works of art, etc. 0.0 14 14    
Total 13.3 11,801 1,065 510 9,404 285 3 18 36 89 391 26.1
 
- Prohibited products.  
Note: For tariff lines subject to TRQs, only the out-of-quota duty  is included in the tariff-related calculations;  for the cal culation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
 Based on the HS 1992 nomenclature. 
 
Source : WTO estimates based on da ta provided by Mexico. 
35. Chart III.2 shows a comparison of average du tiable rates in those HS Chapters where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
the average preferential and MFN rates for lines su bject to preferential duties only.  The average 
preferential tariff is significantly higher in Chapters  1-24.  The best preferential treatment is provided 
in Chapter 19, with the average applied rate on im ports from Colombia being one third lower than the 
MFN rate;  in Chapter 87 the applied preferential ra te in 2011 is higher than the applied MFN rate in 
1995.  This is due to the fact that for HS subheadings 8716.31, 8716.39 and 8716.40, which are not 
included in the new automotive regime in force,  the preferential tariff was 20 per cent while the 
MFN rate for HS 8716.39.03 and 8716.39.04 was duty-free.23 
                                                      
23 These tariff lines have been in cluded in the new Protocol with  immediate tariff elimination.  WT/REG289/1 
 Page 19 
 
 
  0510152025303540455055606570758085
01
02
*03
04
07
080910
11
121314
15
16
**17
18
19
202122
23
240510152025303540455055606570758085
*28
29
*30
3539
*49
52
53
87Chart III.2
Mexico: Average of dutiable rates, by HS Chapter
HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
Note: * HS Chapters 3, 28, 30 & 49 contain prohibited products.
** Excluding specific duties. 
Source :  WTO Secretariat estimates based on data provided by Mexico. 
 
36. As described in Section III.E below, Mexico has applied tariff-rate quotas (TRQs) on bilateral 
trade of textiles and automotive.  In addition, the TEP also provided for the application of TRQs on 
phthalic anhydride and edible gelatine (respectiv ely HS 2917.35.01 and 3503.00.01).  Annex III to 
this document provides details of these schemes. 
4. Liberalization by Colombia 
37. Chart III.3 indicates that MFN tariffs higher th an 20 per cent in 1995 - which correspond to 
19 lines of Chapter 87 with a MFN tariff of 35 per cent - will only be liberalized in 2011, while products with lower MFN rates will be liberalized as of entry into force.  Although at a later stage, all 
these higher tariffs will be liberalized;  conversely, 1.6 per cent of tariff lines with MFN rates of up to 
10 per cent and 9.8 per cent of lines with a MFN rate of between 10 per cent and 20 per cent will 
remain dutiable. WT/REG289/1 
Page 20  
 
  0 1,000 2,000 3,000 4,000 5,000 6,000 7,0001995199920022004200520062007200820102011Chart III.3
Colombia's duty elimination under the Treaty
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Colombia.Number of duty-free lines (cumulative)
Duty-free ≤10% MFN is: ≤20% ≤40%
 
 
38. As can be seen from Table III.3, the vast majority of products remaining dutiable are found in 
HS Sections I-IV;  in total, 23.2 per cent of these lin es remain dutiable, while the equivalent figure for 
the other Sections is 0.6 per cent.  Agricultural products benefitted from liberalization only in 2004;  
for industrial products, some liberalization took plac e before that, including for textiles (where over 
10 per cent of lines became duty free at entry into forc e).  Products that are excluded, both agricultural 
and industrial, are similar to those excluded by Mexico, although Colombia's exclusions affect a 
larger number of lines.  The highest average applied rate is that imposed on trailers and semi-trailers 
of 8716.31, 8716.39 and 8716.40 (equal to the MFN rate) while the lowest apply to textiles, where 
LAIA's regional preference is granted to Mexico.  WT/REG289/1 
 Page 21 
 
 
  Table III.3 
Colombia:  Tariff elimination un der the Treaty, by HS section 
HS section and 
description  MFN 
avg.%  Total 
No. of 
lines  Number of duty-free lines  
No. of lines 
remaining 
dutiable  
Avg. Final Tariff 
(Dutiable) % MFN 1995 
1995 
1999 
2002 
2004 
2005 
2006 
2007 
2008 2010 
2011 
I Live animals and 
animal products 17.2 267  194   73 16.4
II Vegetable 
products 12.9 359  259   100 12.5
III Animal or 
vegetable fats and oils 17.3 63  21   42 16.9
IV Prepared food etc. 17.9 275  145   130 16.0
V Minerals 6.3 194 1 1 192    
VI Chemicals and 
chemical products 6.9 1,330 60 36 37 1,181 4   12 11.2
VII Plastics and 
rubber 13.0 289 1 22 2 227 13 14  10 11.1
VIII Hides and skins 11.9 80  1 79    
IX Wood and articles 12.3 99  98 1   
X Pulp, paper etc. 12.6 196 11 6 6 173    
XI Textiles and 
textiles articles 18.1 934  133 2 785   14 8.8
XII Footwear, 
headgear 18.8 58  6 52    
XIII Articles of stone 13.9 163  158 1 4   
XIV Precious stones, 
etc. 11.5 57  57    
XV Base metals and 
base metals products 10.6 686 8 11 11 1 650 2 3   
XVI Machinery 9.6 1,162 1 28 2 1 1,029 72 14 15   
XVII Transport 
equipment 14.0 197 9 1 95 2 18 5 1 13 50 3 20.0
XVIII Precision 
equipment 6.8 307  9 1 286 9 2   
XIX Arms and 
ammunition 18.2 28  28    
XX Miscellaneous 
manufactured 
articles 17.9 153  2 10 2 135 3 1    
XXI Works of art, 
etc. 20.0 7  7    
Total 11.8 6,904 91 255 70 6 5,851 102 22 20 1 52 50 384 14.8
 
- Prohibited products. 
 
Note: For tariff lines subject to TRQs, only the out-of-quota dut y is included in th e tariff-related calculations;  for the cal culation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
 Based on the HS 1992 nomenclature. 
 
Source : WTO estimates based on da ta provided by Mexico. 
39. It can be seen from Chart III.4 that preferentia l tariffs on products which remain dutiable and 
which account for the greatest cut (in percentage points) are:  cocoa and cocoa preparations 
(Chapter 18), meat and edible offal (Chapter 2) and rubber and articles thereof (Chapter 40).  For 
these sectors, margins of preference are around 26 pe r cent, 17 per cent and 21 per cent, respectively.  
For other chapters, tariff peaks remain with the preferential rate never exceeding 3.1 percentage 
points.  No preference applies for products rema ining dutiable in Chapters 35 and 87, while all 
agricultural chapters benefit from at least some preference. WT/REG289/1 
Page 22  
 
  0510152025
01
0204070809101112131415
16
17181920212223240510152025
29
353839405253
87Chart III.4
Colombia: Average of dutiable rates, by HS Chapter
HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
Source :  WTO Secretariat estimates based on data provided by Colombia.  
 
B. RULES OF ORIGIN  
40. Rules of origin are set out in Chapter VI.  Th e basic requirements for a good to be considered 
originating, as in Article 6 03, are: 
(a) The good is wholly obtained or pr oduced entirely in the Parties;  or 
(b) the good is produced entirely in the Parties from originating materials only;  or (c) the good is produced entirely in the Parties and all of the non-originating materials 
and 
(i) it goes through a change in tariff classification (CTC), or 
(ii) it goes through a CTC and meets requirements concerning a minimum 
regional value content (RVC), or 
(iii) it meets a minimum RVC benchmark, (iv) as provided for in the Annex to Article 6-03
24, as well as meeting all other 
specific criteria contained therein and in the rest of Chapter VI; 
                                                      
24 Specific rules of origin were modified in 1997 through Decisions Nos. 13 and 14 and in 2005 
through Decision No. 43.  WT/REG289/1 
 Page 23 
 
 
  (d) unassembled goods and goods classified with  their parts which, though not meeting 
specific origin rules, contain not less than the RVC specified in Annex to Article 6-03 
or in Article 6-18 (between 40 per cent-55 per cent, depending on the Chapter and on 
the implementation year;  see paragraph 45(b) below), which meets all other requirements in the rest of Chapter VI.  This does not apply to goods under 
HS Chapters 61 to 63 (textiles and clothing). 
41. The main criterion for a good produced from non-or iginating materials to acquire originating 
status is a CTC.  The CTC applies generally at the HS heading level, but requirements at the subheading and chapter levels are also frequent (the latter in particular vis-à-vis  agricultural and 
mineral products).  Finally, in a small number of cases, specific product or process requirements 
apply, always in conjunction with another method. 
42. In the case of sets or assortments (Article 6-10), each part of the set has to fulfil the origin 
requirements.  A tolerance rule app lies in that a set or assortment will be originating if the value of all 
non-originating elements does not exceed 7 per cent of  its transaction value.  Article 6-11 provides 
a list of minimal, non-qualifying opera tions that do not confer origin. 
43. No outward processing is authorized under this  Treaty (Article 6-03:2).  Once originating 
status has been granted to a product, transit through non-Parties is authorized only if the good remains 
under the surveillance of the cust oms authorities, with or without transhipment, provided that 
(a) transit is needed for geographical or transport r easons;  (b) the good is not traded nor used in the 
transit country;  and (c) no processing takes place out side the territory of the Parties, other than 
unloading, reloading or any other operation necessary to preserve it in good conditi on or to transport it 
(Article 6-12). 
44. Article 6-04 provides that the RVC is the differen ce between the value of the good and that of 
the non-originating materials, with both being valu ed in terms of their respective transaction value 
adjusted on a f.o.b. basis.
25 
45. Different thresholds apply to the RVC: 
(a) Specific thresholds are included in the Annex to Article 6-03;  generally, it requires 
a minimum RVC of 50 per cent but in some instances (e.g. skin and leather, paper, some textiles, glass, some transport equipm ent, watches, musical instruments, toys) 
this threshold is increased to 55 per cent;  and 
(b) a more "general" minimum RVC apply (Article 6-18) in the absence of specific 
requirements, with ceilings depending on th e Chapter and the year of implementation 
of the Treaty, as described in Table III.4. 
Table III.4 
General RVC Thresholds 
Date HS Chapters 28-40 HS Chapters 72-85 and 90  Others 
1.1.95-31.12.97 40% 50% 50% 
1.1.98-98-31.12.99 45% 50% 50% 
As of 1.1.00 50% 50% 55% 
 
Note: In cases where a specific threshold is liste d in Annex to Article 6-03, the latter applies. 
                                                      
25 Valuation of goods is done on the basis of the WTO Agreement on Implementation of Article VII of 
the GATT 1994.  Adjustments may however differ from f.o.b. when non-originating materials are bought 
already in the territory of the Party. WT/REG289/1 
Page 24  
 
  46. Bilateral cumulation applies between the tw o countries (Article 6 06).  The absorption 
principle - i.e. the value of non-originating materi als incorporated in another good that has acquired 
originating status is not added into the RVC calculat ion - also applies (Article 6-05:3).  This is also 
the case for those materials which have been desi gnated as "intermediate material" by the producer;  
however, when an intermediate material is s ubject to a RVC requirement, the producer may only 
designate one such material as intermediate (Article 6-07). 
47. A de minimis  rule (Article 6-06) applies so that the good is considered originating if the value 
of all non-originating materials that do not comply w ith the required CTC is less than 7 per cent of the 
transaction value.  Any additional RVC requi rement will apply without any change.  De minimis  does 
not apply to the following: 
(a) Textiles goods in HS Chapters 50 to 63;   however, if the good is non-originating 
because the fibres and yarns used do not comp ly with the CTC requirements, it will 
nonetheless be considered originating if th eir total weight does not represent more 
than 7 per cent of the material's total weight;  and 
(b) a non-originating material used in the production of goods of Chapters 1 to 27, unless 
the material is of a subheading different  from the one for which origin is being 
determined. 
48. Article 6-19 provides that for products that are either excluded from the Treaty or that do not 
have a specific rule of origin, the general pref erential rules of origin of LAIA, as agreed in 
Resolution 78 of its Committee of Representatives, apply.
26  This was also the case for automotive 
products up to 31 December 2004 (Article 4-05 of the or iginal Chapter IV);  from the entry into force 
of a new Chapter IV on 1 January 2005, new rules of  origin, detailed in Appendix III to the Decision 
No. 42 of the Administrative Commission, have b een agreed upon (for some products, in particular, 
LAIA's general 50 per cent domestic content requireme nt is reduced to 40 per cent or 35 per cent). 
49. Duty-drawback on agricultural products is prohi bited from the date of the Treaty's entry into 
force (Article 5-06). 
50. Chapter VI provides for the creation of two bodi es;  these are described in Section IV.A of 
this document. 
Box III.1:  Rules of Origin at a Glance 
Basic Characteristics 
 Product-specific criteria: 
 Wholly obtained goods. 
 CTC, generally a change of heading. 
 RVC:  50%-55%, generally applied in co njunction with the CTC but in certain 
cases used alone. 
 Specific requirements applied in a few cases. 
 Bilateral cumulation. 
 Absorption principle. 
 Tolerance rule. 
 Duty-drawback forbidden on agricultural products. 
 No outward-processing authorized.  
                                                      
26 See LAIA Resolution of 24 November 1987, in http://www.aladi.org/nsfaladi/juridica.nsf/ 
5fd43321c4ceb6660325749b007460ec/9198b93bd16266c2232567a100553d91?OpenDocument.  WT/REG289/1 
 Page 25 
 
 
  C. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
51. As in the case of imports (see paragraph 26 above ), export restrictions towards the other Party 
are generally prohibited;  as for imports, the excep tions are those explicitly allowed elsewhere in the 
Treaty;  those authorized under Article XI;  du mping or subsidy-related price undertakings;  
anti-circumvention restrictions;  and those measur es listed in Annex to Article 3-09 - i.e. export 
restrictions applied by Colombia on energy goods which need to be compliant with its constitutional 
measures. 
52. Article 3-11 provides that the benefits of an internal food assistance programme shall only be 
received by consumers in the Party that applies the programme;  for this reason, the imposition of 
duties and charges on exports to the other Party is limited to the following: 
(a) those also applied on domestic consumption of the good; 
(b) on basic needs goods, their ingredients or derivatives included in Annex 1 to the 
Article, provided it is part of domestic  food-aid programmes or a price-band 
mechanism;27;28, 
(c) on food products in order to alleviate criti cal shortage, provided this is applied for 
a maximum period of one year unless otherwise agreed by the Parties; 
(d) goods listed in Annex 2 to the Article.  Fo r Colombia, this authorizes the maintenance 
of export restrictions in the context of Price Stabilization Funds for Agricultural and 
Fisheries Products - established for cotton;  cocoa;  meat, milk and products thereof;  
centrifugal sugars, molasses deriving from th e extraction or refining of sugar, and 
sugar syrups;  and palm and palm kernel oil and fractions thereof29 - and duties and 
charges on the export of molasses, coffee, charcoal, raw petroleum, natural gas and 
ferro-nickel.  Mexico is authorized to maintain its export ta x on natural gum under 
HS 4001.30.02 up to 31.12.04. 
D. REGULATORY PROVISIONS ON TRADE IN GOODS  
1. Standards 
(a) Technical barriers to trade 
53. Chapter XIV applies to any technical regulations that may affect, directly or indirectly, trade 
in goods and services between the Parties, but not to sanitary and phytosanitary measures under 
                                                      
27 For both countries:  vegetal oil, rice, sugar, coffee, boneless beef meat, beer, chocolate, beans, corn 
flour, eggs, milk, animal and vegetal butter, molasses, pot atoes, pasta, cheese, salt, tomatoes (i for Mexico), 
carrots.  For Colombia only:  corn, lentil, poultry meat, onions.  For Mexico only:  canned tuna, canned sardines, canned peppers, chicken broth, wheat flour, low-priced cookies, gelatine, beef liver, oat flakes, cooked ham, 
bread, crackers, French rolls, soup paste, soft drinks, beef remnants and bones, corn tortilla and dough. 
28 The original Treaty provided for a simultaneous application of thes e restrictions to both the other 
Parties;  since Venezuela's withdrawal from the Treat y, however, this requirement has become irrelevant. 
29 Pursuant to Law No. 101 of 1993 (Chapter VI), the Colombian Government has the authority to 
create Price Stabilization Funds for Ag ricultural and Fisheries Products, wh ich "seek to secure a remunerative 
income for producers, regulate national production and increase exports by funding the stabilization of producer 
prices of agricultural and fisheries goods".  Under this Law, Colombia set up five price stabilization funds for 
the following agricultural products:  cotton;  cocoa;  meat, milk and products thereof;  centrifugal sugars, molasses deriving from the extraction or refining of sugar,  and sugar syrups;  and palm and palm kernel oil and 
fractions thereof. WT/REG289/1 
Page 26  
 
  Section B of Chapter V of the Treaty (Article 14-02).  It binds central or federal, state or department, 
and municipal levels of government, in accordance with  constitutional clauses;  the Parties are also to 
adopt measures ensuring that non-governmental sta ndardization bodies also abide by the chapter's 
disciplines (Article 14-03). 
54. The Parties reaffirm their rights and obligations  under the GATT and all international treaties 
related to standards to which they are part y, including on environment and conservation 
(Article 14-04).  No standardization measure shal l have the goal or effect of creating unnecessary 
obstacles to trade (Article 14-05);  therefore, each Party must ensure that its technical regulations, standards and conformity assessment procedures do not restrict trade more than is necessary to fulfil a Party's legitimate objective, taking into account the risks that non-fulfilment would create.  
International standards shall generally be used as a basis for Party's domestic standards;  in those 
cases, domestic measures are presumed to be compatible with the disciplines of Article 14-05.  Standardization measures providing for a higher level of protection remain, however, authorized 
(Article 14-06). 
55. The Parties agree to make their technical regulations and conformity assessment systems as 
compatible as possible with international standards, and, upon request by a Party, the other Party is to 
promote such compatibility.  Equivalence of technical regulation and conformity assessment procedures is also foreseen;  due c onsideration is to be given to a re quest for the negotiation of mutual 
recognition agreements (Articles 14-07 and 14-08).  Compatibility of metrological standards, also on 
the basis of internationally-agreed norms, is en couraged when they repr esent unnecessary barriers to 
trade (Article 14-12). 
56. Transparency provisions are contained in Article 14-09;  in particular, they provide that each 
Party is to be informed of the other Party's standa rdization measures before their entry into force and 
not later than the other Party's nationals.  Prior pub lication (except in cases of urgency) of 60 days (as 
in the WTO) is required for any proposals relating to  the adoption of new or notification of existing 
standardization measures.  Prior publication "at an early appropriate stage" of a technical regulation 
from a state, departmental and municipal levels of go vernment is also required.  Each Party is also 
required to establish at least one enquiry point in its territory to provide information to the other 
Party's interested persons (Article 14-10).  Article  14-11 specifies that no provisions require a Party to 
provide information contrary to its essential security interests or to the legitimate commercial interests 
of certain companies. 
57. Under Article 14-13, each Party may, on the groun ds of protection of public health, subject 
the following to national registration procedures:  medicines;  medical equipment and instruments;  
pharma-chemical products and other products intended for human, animal or plant health use.  When 
such registration is required in a Party's territory , the product shall be registered, recognized and 
evaluated by the competent authority of that Party in conformity with a unique compulsory national 
system, either at the central or federal level, in order to obtain a certificate of compatibility.  A system 
of mutual technical co-operation has been created;  its monitoring, organization and orientation has 
been delegated to a Technical Sub-Committe e.  Article 14-17 establishes a "Committee on 
Standardization Measures", which consists of re presentatives from each Party's competent authorities 
(see Section V.E). 
(b) Sanitary and phytosanitary measures 58. Section B of Chapter V deals with sanitary and zoosanitary measures.  The Parties may adopt 
or maintain any measure that is more restric tive than international re gulations, principles or 
recommendations where this is necessary to protect human, animal or plant life and health (Article 5-13);  each Party is free to establish its own level of protection of  human, animal and plant  WT/REG289/1 
 Page 27 
 
 
  life and health, in accordance with the conditions in Article 5-22.30  Sanitary and phytosanitary 
measures must:  (a) be based on scientific principles and appropriate risk assessment;  (b) be applied 
in a non-discriminatory manner;  and (c) not constitute unnecessary barriers to trade between the Parties (Articles 5-14 to 5-17).  Article 5-21 pr omotes the equivalence of sanitary standards. 
59. Transparency provisions are contained in Article 5-25.  Each Party is required to inform the 
other about the adoption or modification of a phytosan itary or zoosanitary measure at least 60 days in 
advance of its adoption or modification.  The establishment of an enquiry point in each Party's territory is required under Article 5-26.  The Parties are not required to provide each other with information that may prevent compliance with domes tic laws, be contrary to public interests or be 
prejudicial to any legitimate commercial interests (Article 5-28).  The "Committee on Phytosanitary 
and Zoosanitary Measures" is created under Article 5-29 with the aim of, inter alia , providing 
recommendations, facilitating technical cooperation, a nd improving food safety conditions.  Section B 
of Chapter V is subject to the Treaty's dispute settlement provisions. 
2. Safeguard mechanisms 
60. Chapter VIII deals with safeguard measures,  both at the bilateral and global levels 
(respectively Sections A and B).  A general de finition applies to the whole Chapter whereby 
"domestic production" is defined as domestic producers of identical, similar or directly competitive 
goods representing a substantial proportion of pro duction;  as from 1 January 1998, the latter is 
interpreted to mean at least 40 per cent of domestic production.
31 
61. Procedures for the imposition of safeguard measur es - both at the global and bilateral levels - 
are detailed in Section C, Articles 8-08 to 8-17.  It is necessary to demonstrate a direct "causality link" 
between the rise in imports and the serious injury to  a Party's domestic production.  The investigation 
is to be carried out by the Party's competent aut horities.  In cases where the investigations point 
towards the imposition of safeguards, the importing Pa rty shall inform the other Party and provide for 
consultations, which will last 45 days unless otherwis e agreed;  safeguards may only be imposed after 
this time period has lapsed.  Any extension of a safeguard is subject to the importing Party's 
determination that the conditions for application of a safeguard measure persist;  in this case, the other 
Party must be notified of the extension at least 60 days before the measure expires. 
62. As at December 2011, neither Colombia nor Mexico had imposed any bilateral or global 
safeguard measures within the frame work of this trade Agreement. 
63. The Treaty does not contain a provision for safeguards for balance-of-payments problems 
derived from trade in goods. 
(b) Global safeguards 
64. The Parties reaffirm their WTO rights vis-à-vis  the application of global safeguards;  
WTO rules also apply with respect to  compensation (Articles 8-05 and 8-07). 
                                                      
30 Article 5-22 requires that each Party take the following into account when carrying out risk 
assessment procedures:  appropriate risk assessment methods and technologies, appropriate scientific 
information;  relevant processes, production, operation and packing methods;  relevant inspection, sampling and 
testing methods;  prevalence of specific diseases or pe sts;  existence of pest- or disease-free areas;  relevant 
ecological and environmental conditions;  and quarantine or other treatment.  Each Party shall also take into 
account production or sales losses due to pests or disease;  the costs of pest or diseas e control and er adication in 
the Party's territory;  and the cost efficiency ratio of other possible options to limit risks. 
31 The WTO Safeguards Agreement does not set a si milar threshold but only refers to it constituting 
"a major proportion of the total domestic prod uction of those products." (Article 4:1(c)). WT/REG289/1 
Page 28  
 
  65. Global safeguards may only be extended to the ot her Party if imports from it are "substantial" 
and if they contribute "importantly" to the injury  or threat thereof.  Normally, imports are not 
considered "substantial" if:  (a) the other Party is not  one of the five main suppliers of the product (on 
the basis of the last three preceding years);  and (b) the growth rate of its imports of the product 
concerned during the period under revi ew is substantially lower than th e growth rate of all imports of 
the product taken collectively. 
(c) Bilateral safeguards 66. Bilateral safeguards (Article 8-03) - which may onl y take the form of tariff increases, but in 
no case provide for the application of a tariff high er than the MFN rate - are authorized during 
a 15-year period - i.e. up to 31.12.2009. 
67. In cases where imports of a product for which ta riffs had been reduced according to the TEP 
have increased to such an extent th at the increase by itself - in terms of quantity and conditions - is the 
substantial cause of, or threatens to cause, serious injury to domestic production of identical, similar 
or directly competitive goods, imposition of bilate ral safeguards is authorized provided this is 
absolutely necessary to counter the injury. 
68. Safeguard measures may last a maximum of one year;  one single extension, of the same 
duration, is authorized if conditions persist.  Co mpensation is to be provided when the measure is 
applied following a threat of serious injury or when it is due to be extended;  the compensation - in the 
form of temporary tariff reductions on other products with equivalent trade effects - is to be mutually 
agreed with the exporting Party.  In case of no agreement, safeguards may still be imposed but 
retaliation is authorized. 
69. Upon termination of the safeguard measure, th e applied tariff will be that resulting from the 
normal application of the TEP. 
3. Anti-dumping and countervailing measures 
70. Chapter IX deals with unfair trade pr actices.  Anti-dumping and countervailing 
measures (CVM) may be applied in accordance with Parties' domestic legislation and the relevant 
WTO Articles and Agreements. 
71. De minimis  margins of dumping or of subsidy (Article  9-04) provided for in the Treaty are the 
same as those under the WTO Agreements, namely below 2 per cent of the normal value of the 
product subject to investigation, for dumping, or below 1 per cent for the value of the subsidy.  Investigations that show such de minimis  levels shall be terminated a nd no measure shall be applied.  
The Treaty also provides for a de minimis  threshold in terms of import volume;  accordingly, 
investigations are also to be terminated if th e import volume of products subject to dumping or 
subsidy is below 1 per cent of the domestic market.  In this latter case, however, if the volume of 
dumped/subsidized imports from the other Party and other countries collectively reach 2.5 per cent of 
the market, investigations may continue. 
72. As regards transparency (Article 9-05), resolutions are to be directly communicated to 
importers and exporters and to the government of the exporting Party, the relevant national 
administration, and the diplomatic representation of the exporting Party.  The communication of the initial resolution is to be made within eight working days;  comments may be provided within 
30 working days from its publication.  WT/REG289/1 
 Page 29 
 
 
  73. A sunset clause similar to the one in the WT O Agreement provides that unless a review has 
been requested or initiated ex officio, anti-dum ping duties or CVM are automatically eliminated 
within five years from their application (Article 9-11). 
74. In cases where an arbitral tribunal declares that the anti-dumping duty or CVM is 
incompatible with any of the Chapter's clauses, th e Party will withdraw or modify it (Article 9-22). 
4. Subsidies and State-aid 
75. Article 9-02 prohibits the use of subsidies on export of industrial products towards the other 
Party. 
5. Customs-related procedures 
76. Chapter VII deals with customs procedures.  The Certificate of Origin, which provides the 
basis for the granting of preferential tariff treatment, is to be filled in and signed by the exporter and 
validated by the competent authority of the exportin g Party;  in cases where the exporter is not the 
producer, a Declaration of Origin - to be filled in by the producer - may also be used.  Both these 
forms were agreed upon prior to the Treaty's entry into  force;  instructions regarding their completion 
were revised in 1995 and 1997.32  In April 2009, Decision No. 53 of the Administrative Commission 
provided for the introduction, within 15 months from the date of the Decision - i.e. by July 2010 - of 
a digital Certificate of Origin, whereby the compet ent authority of each Party was to make available 
a web service providing for digital certificates and digital signatures throughout the year;  pending that time, a semi-automatic procedure was to be implemented making use of a unique number of 
acceptance.  Digital certificates are applied by the Parties
33;  in Colombia they have been used since 
4 August 2009, and in Mexico they account for more than 60 per cent of all the certificates of origin 
issued.  The Certificate of Origin is not requi red when the importing Party exempts a good from the 
requirement of a certificate of origin (Article 7-05). 
77. The procedure for verifying the origin of a good is described in Article 7-07.  The competent 
authorities of the importing Party may submit a wr itten questionnaire to, or visit, exporters or 
producers in the territory of the exporting Party.  Questionnaires are to be answered within 30 days 
from the date of receipt, subject to an extensi on of 30 days upon request;  in case of delay, the 
importing Party may deny preferential tariff treatment further to a decision to that effect.  Any visit from the importing Party's authorities shall be preceded by a written notice of at least 30 days, to be sent to the exporter or producer to be visited, to the Party's competent authorities where the visit will 
take place and, upon request, to the latter's Emba ssy in the importing Party.  If the exporter or 
producer does not confirm the visit within 30 days fro m receipt of the notification, the importing Party 
may deny preferential tariff treatment on the good subject to verification. 
78. The result of the verification, including its reasoning, shall be communicated by the 
competent authorities of the importing Party to th e exporter or producer;  no time-frame is however 
provided for such a communication.  In cases wher e the exporter or producer has provided more than 
once false or incorrect information on the good's or igin, the competent authority of the importing 
Party may suspend preferential tariff treatment of identical goods from the same exporter or producer 
until such time as it can prove that it fulfils the requirements of Chapter VII. 
                                                      
32 Administrative Commission Decisions Nos. 5 and 15 respectively.  In Mexico's case, these forms 
were published in the Official Journal (Diario Oficial de la Federación) of 3 August 2011 (http://dof.gob.mx/nota_detalle.php?codigo=5203365&fecha=03/08/2011 ).  As regards Colombia, the certificate 
of origin can be viewed at www.vuce.gov.co and th e declaration of origin at  www.mincomercio.gov.co. 
33 These services are available to exporters at http://www.vuce.gov.co , http://www.economia.gob.mx , 
and http://www.siicex.gob.mx .  In Colombia, digital certificates of  origin are applie d in accordance with 
External Circular No. 024 of 7 July 2009. WT/REG289/1 
Page 30  
 
  E. S
ECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  
1. Agricultural Sector 
79. Article 5-04 provides the disciplines appl ying to trade in agricultural sector.34  The general 
objective is that of facilitating such trade through reduction and elimination of barriers within the 
Treaty's general transition period, and a general prohibition of QRs on imports, of price-band and 
price stabilization mechanisms, and of variab le tariffs for goods included in the TEP. 
80. A number of agricultural products are excluded from the TEP;  these are listed in Annex 2 to 
the Article.  The Committee on Agricultural Trade is to examine annually whethe r to subject some of 
the excluded products to the TEP (paragraph 4 of Article 5-04);  if that is the case, integration into the 
TEP may be based on the methodology provi ded for in Annex 1 to Article 5-04.35  However, up to the 
2010 Protocol, no agricultural products had been integrated into the TEP. 
81. Restrictions authorized for certain agricu ltural products are detailed in Annexes to 
Article 5-04 (at the HS 8-digit level), as follows: 
(a) Previous import permits/licences are allowed for 15 lines for Colombia (poultry meat, 
dairy) and 61 for Mexico (poultry meat, dairy,  eggs, coffee, fats, cigars, etc.).  These 
are listed in paragraph 1 to Annex 2; 
(b) Colombia is allowed to maintain a price-band mechanism for 123 lines and 
one heading, as listed in paragraph 2 to Annex 2; 
(c) the possibility of applying tariffs to 157  lines for Colombia and 276 lines for Mexico, 
as listed in paragraph 3 to Annex 2 (for some  of these lines, LAIA preferences apply); 
(d) exclusion of sugar.  Provisions in Annex 3 however provide for a procedure for 
attempting to give some preferential treatmen t to sugar, on the basis of work to be 
carried out in a Committee for Sugar Analysis ;  the final aim is (i) the adoption by 
Mexico of a TRQ for sugar originating in Colombia (and originally also Venezuela) 
on the basis of guidelines in paragraphs 2-4 of the Annex;  (ii) application of, at least, 
the LAIA preferential rate;  and (iii) defi nitive incorporation into the TEP of certain 
products (see (e) below).  Since no agreement was reached, preferential treatment is 
not granted to sugar;  further, Decision No. 3 of the Administrative Commission (October 1995) authorized Colombia to ex tend its price-band mechanism to sugar and 
Mexico to fully exclude sugar from the TEP; 
(e) definitive inclusion into/exclusion fro m, the TEP of 21 lines for Colombia and 
18 lines for Mexico (listed in Annex 4, and including tomatoes, onions and other 
vegetables, melons and watermelons, coffee, orange juice, mayonnaise, etc.) has been 
linked to an agreement on trade in sugar.  For those products, the Treaty provided only for the first instalment of the TEP on 1.1.95;  the other nine instalments remained 
                                                      
34 The Treaty was negotiated and signed around the same time as the Uruguay Round negotiations, 
when trade in agriculture was subject  to numerous non-tariff barriers, and when not all the technical work 
needed to the tariffy such restrictions had been completed. 
35 Annex 1 to Article 5-04 makes use of the instruments used in the Uruguay Round agriculture 
negotiations for any possible integration of a product into  the TEP - e.g. tariffication of non-tariff barriers, 
establishment of minimum and current access and of a sp ecial safeguard of a maxi mum ten years duration.  
Besides, it provides for the application of the best treatment between the one resulting from the GATT/WTO tariffication on the one resulting from the TEP integration, and a maximum transition period of 
ten years.  WT/REG289/1 
 Page 31 
 
 
  subject to the resolution of the sugar issue.  Failure to resolve the question resulted in 
these products being kept outside the TEP but nevertheless benefitting from 
LAIA preferences (except orange juice (both countries), coffee (Colombia) and roasted and decaffeinated coffee and melons (Mexico)).
36 
82. Various disciplines of the WTO Agreement on Agri culture have been included in the Treaty, 
including on domestic support.  Export subsid ies on agricultural goods included in the TEP are 
prohibited once tariffs are eliminated;  their pr ogressive reduction starte d on 1998 to be completed 
jointly with the elimination of the tariff on the pr oduct.  Parties also agreed to forego any rights 
derived from WTO rules to apply exports subsidies on their bilateral trade.  Article 5-05 contains 
a special safeguard for agriculture, but was lim ited to trade between Mexico and Venezuela. 
83. Duty-drawback on agricultural products is prohibited from the Treaty's entry into force.  
A Working Group on Technical Rules and Trade of Ag ricultural Products is established to follow up 
on related issues;  also, the Treaty provides for the granting of national treatment on the application of 
these rules as they relate to packaging,  grading, quality and size of the goods. 
2. Textile Sector 
84. Article 3-08 provides for "levels of temporary flexibility" for certain textile products during 
the first five years of the Treaty's implementation, i.e. up to 31 December 1999.  This provision allows preferential treatment for certain textiles produ cts that do not meet the Treaty's origin criteria;  
preferential treatment in such cases is thus subject to less strict rules of origin
37 and is granted on the 
basis of pre-defined quotas - equally divided betw een Colombia and Venezuela for the period it was 
still a Party.  More specifically, for certain textile products, the use of non-originating threads, yarns 
or fibres is authorized, up to a certain va lue.  These quotas increased progressively from 
1 January 1995 until 31 December 1999, when this te mporary arrangement was foreseen to lapse.  An 
additional restriction provided that if exports of pr oducts classified under the same tariff heading were 
higher than a 20 per cent share of the yearly quota (in value terms);  the normal, more stringent, rules of origin would apply.  Annex III gives details concerning the quota limitations. 
85. In practice, however, while such preferential tr eatment subject to less restrictive rules of 
origin has lapsed for Mexico's exports, that h as not been the case for exports from Colombia to 
Mexico.  Since January 2000, temporary derogations  from the Treaty's rules of origin on textiles - 
allowing the use of certain non-originating inputs, generally subject to a quota expressed in quantity - have been approved, the most recent one up to 6 October 2012.
38  Rules of origin in textiles have 
further been modified in Decision No. 60 of th e Administrative Commission - integrated in the 
new Protocol to the Agreement - in particular by providing diagonal cumulation with thread made 
from nylon yarns from either Canada or the United States. 
3. Automotive Sector 
86. Special rules apply to the automotive sector, as provided for in paragraph 8 of Annex I to 
Article 3-04 and in Chapter IV.  These rules were amended as of 1 January 2005, and pursuant to 
Decision No. 42 of the Treaty's Administrative Commission, dated 21 February 2005, the automotive 
sector was incorporated into the Treaty's eliminati on programme and rules of origin were established 
                                                      
36 Since the entry into force of the 2010 Protocol, only one of these items continues to be excluded (by 
Mexico):  roasted and decaffeinated coffee (0901.11.01). 
37 The LAIA's rules of origin and those of Section A to Annex to Article 6-19 on rules of origin. 
38 Decisions Nos. 26, 30, 39-40, 45, 47-52, 54-56, 62-64 and 66 of the Administrative Commission. WT/REG289/1 
Page 32  
 
  for this sector.
39  These new rules were drafted in accordan ce with Article 4-03, which provided that 
the Administrative Commission, on the b asis of advice from the Automotive Committee40, could 
modify the original plan and schedul e for liberalization of this sector. 
87. The original text of Chapter IV stated that  its provisions apply to automotive products, as 
listed in annexes 1 and 2 to Article 4-02.41  It provided distinct calendars for two categories of 
products: 
(a) A final, definitive regime for seven tari ff lines - buses with a capacity of more than 
16 persons under HS 8701.20 and 8702, and road tractors and vehicles of more than 15 tonnes in HS 8704 - which eliminated tariffs within 11 years, starting on 1 January 1997 and ending on 1 January 2 007, the date when these products would 
become duty free;  that provided, in practice, a transition period of 13 years;  and 
(b) a "last resort", tentative regime for the vast majority of the sector, that would only 
apply in the absence of a decision provi ding otherwise by the Administrative 
Commission.  This regime provided for a mandatory elimination of tariffs on 
1 January 2007;  from 1995 to 31 December 2006, the Parties remained free to 
continue applying the base rate (or if provided for in the original list, a higher rate).  
Thus, for these products also, a transition peri od of 13 years has been provided.  If the 
Commission took a decision, then liberali zation would take place according to it. 
88. The new regime applies to automotive products as defined in the original Chapter IV, except 
trailers and semi-trailers under subheadings 8716.31, 8716.39 and 8716.40 which, during the period 
between 15 January 2006 (date of entry into force of Decision No. 42) and 1 August 2011 (one day 
before the entry into force of the 2010 Protocol), were excluded from the Treaty.
42  Retreaded and 
used tyres are also excluded from duty-free treatment;  this is in accordance with Article 4-07 of the 
original Chapter and 4-05 of the new regime that authorized exclusion from liberalization of used automotive products. 
89. In practice, the new regime extended the Treaty' s transition period from 13 to 16 years in the 
case of Mexico and 17 years for Colombia (fro m the original date of entry into force of 
1 January 1995).  The new regime provided a de tailed calendar for elimination of tariffs on 
automotive products originating in the Parties, divided into four groups: 
(a) For buses with a capacity of more than 16 persons in HS 8702, road tractors of a gross 
vehicle weight of 15 tonnes or more under HS subheading 8701.20, and motor vehicles for the transport of goods weighing more than 15 tonnes in HS 8704, the 
calendar under section (a) of paragraph 87 above has been main tained;  thus, the 
transition period of 13 years has elapsed and these are duty-free since 1 January 2007 (paragraph 4 of new Article 4-02); 
                                                      
39 Appendixes I and II to Decision No. 42 provide for the replacement of the texts.  The new regime has 
been in force since 1 January 2005 for both Parties.  Prior to the adoption of this Decision, the Parties signed, in 
December 2004, a partial scope agr eement (LAIA's Economic Compleme ntarity Agreemen t (ACE) No. 61) 
which, pursuant to the validity clause  referred to in Article 11 thereof, remained in effect from 1 January to 
31 December 2005. 
40 The Automotive Committee is composed of representative from the Parties and assisted by the 
private sector.  It has also been charged of  defining rules of origin for the sector. 
41 Automotive products are defined to include HS Heading 8702-8706 (excepting subheadings 8703.10 
and 8704.10);  subheadings 8701.20, 8716.31, 8716.39 and 8716.40;  and auto-parts of Chapters 40, 45, 68, 70, 
73, 83-85, 87, 90-91, 94. 
42 Upon the entry into force of the 2010 Protocol, these trailers and semi-trailers became duty free 
between both countries (see Section F).  WT/REG289/1 
 Page 33 
 
 
  (b) for automotive products under HS 8703 and HS 8704 of a weight less than 8.8 tonnes 
(paragraph 1 of new Article 4-02), progressive tariff reductions (in accordance with the Parties' annexes) starting on 1 January 2005 (on the basis of MFN rates indicated by the Parties)
43, becoming free of duties as of 1. January 2009 for Mexico and 
1 January 2011 for Colombia.  In add ition, tariff-rate quotas (TRQ) have been 
provided by each Party as of 1 January 2005 and up to the end of the transition period;  
TRQ quantities have been progressively in creased and in-quota tariff progressively 
reduced (See Annex III); 
(c) for automotive products up to 15 tonnes in HS 8701.20, between 8.8 and 15 tonnes in 
HS 8704, automotive products of HS 8405 and 8406, and non-integral buses of 
HS 8702, the same phase out as under (b) above applies but no TRQ is provided for44 
(paragraphs 2 and 3 of new Article 4-02);  and 
(d) for auto-parts in Chapters 40, 45, 68 , 70, 73, 83-85 and 87 (defined in Parties' 
annexes), elimination of duties in five di fferent categories with a maximum transition 
period of 16 years (see Box III.1). 
90. In short, as at December 2011 - with both Decision No. 42 and the 2010 Protocol already in 
force - the Parties' imports of originating automotiv e goods defined in the original Chapter IV are free 
of import duties. 
91. In addition, the new text of Chapter IV also modifies the preferential rules of origin for 
automotive products (see paragraph 48 above) and ru les regarding extension of preferences provided 
in the context of other RTAs.  The original text of  Chapter IV (Article 4-08) provided that if, after 
signing the Treaty, any of the Parties negotiated ta riff concessions for automotive sector products - in 
the context of deepening the regional tariff prefer ence - which exceeded the tariff treatment of the 
Treaty, the new concessions agreed in the regional ta riff preference by that Party would automatically 
be extended to the other Parties.  Given that the negotiations to deepen the regional tariff preference 
were never held after the signing of the FTA, the Article 4-08 clause was never applied.  The new 
corresponding Article 4-04 includes an "MFN clause" in  favour of Mexico, in that if after the entry 
into force of the new regime, Colombia grants  to a non-Party more favourable treatment than 
provided for in the Treaty, this treatment sha ll be immediately and unconditionally extended to 
Mexico.  Mexico does not provid e such concessions to Colombia.45  As at December 2011, the 
Article 4-04 provision had not been applied. 
92. Article 4-06 of the original Chapter allowed application and modification of performance 
requirements in the automotive sector, as well as the a pplication of QRs needed in order to implement 
those restrictions.  The Treaty provided for these r estrictions to be eliminated at the latest on 
1 January 2007.  As of the entry into force of Decision No. 42, the performance requirements for the automotive sector have been removed from the Treat y and no equivalent clause has been included in 
the new Chapter IV. 
                                                      
43 50 per cent in the case of Mexico, 35  per cent in the case of Colombia. 
44 50 per cent in the case of Mexico, genera lly 15 per cent in the case of Colombia. 
45 Automotive sector trade between Chile and Colombia  has been free of levies and restrictions since 
1 January 1994, in acco rdance with Article 10 of th e Agreement between Chile a nd Colombia, recorded under 
LAIA as Economic Complementarity Agreement (ACE ) No. 24.  As the Agreement between Chile and 
Colombia - notified to the WTO on 14 August 2009 and in force since 8 May 2009 - constitutes an Additional 
Protocol to ACE No. 24 (prior to the Colombia-Mexic o Treaty) and Article 10 continues to apply to trade 
between the Parties, the extension of preferences provided for in Article 4-04 does not apply (the Factual Presentation of the Agreement between Chile and Colombia has been circulated in document 
WT/REG272/1/Rev.1). WT/REG289/1 
Page 34  
 
  F. T
HE 2010  PROTOCOL  
93. As previously mentioned, a new Protocol to the Colombia-Mexico Treaty was signed on 
11 June 2010 and entered into force on 2 August 2011.  The Protocol is composed of six Parts 
containing 12 Articles, as well as nine Annexes;  these provisions modify the original, or add new, 
Articles and Annexes to the original Treaty.  The changes are summarized below, and Table III.5 
gives additional information on improvements to market access. 
Part I -  Modification to the Name of the Free Trade Treaty 
 
94. Article 1 modifies the name of the Treaty to  "Free Trade Treaty between the United Mexican 
States and the Republic of Colombia". 
Part II - Market Access 
 
95. Five Articles and four Annexes provide new market access in bilateral trade: 
(a) Elimination of tariffs on an additional 56 tariff lines for Mexico (28 agricultural and 
28 industrial) and 42 for Colombia (31 agricultural and 11 industrial);  in the case of 
Colombia, they will also not be subject to its price-band mechanism.  These new 
products are included in Annex 1 to the Protocol46, with liberalization that varies from 
immediate elimination at entry into force for some products, up to a maximum transition period of 10 years for other produc ts, so that from 2 August 2020 they will 
be free of levies.
47  Previously excluded products such as fresh tomatoes, juices, 
tobacco, and polymers of styrene are liberalized;  sugar however remains excluded.  
Annex IV lists the tariff lines included in the Protocol. 
(b) Establishment of "levels of flexibilit y" for HS headings 7209-7214, 7216-7217 
(Article 3 and Annex 2 to the Protocol)48, upon limits set in a quota.  Up to limits set 
therein, less strict rules of origin apply,  thus facilitating the granting of preferential 
treatment.  The quota is granted on a yearly  basis and may be increased in accordance 
with the terms set in the respective annex;  this mechanism is of indefinite duration. 
(c) The possibility for the Administrative Commission, upon request by a Party, to 
analyze possible improvements in market access (Article 4 and Annex 3 to the Protocol). 
(d) Establishment of TRQs (Article  5 and Annex 42 to the Protocol)
49 on (i) a duty-free 
basis for boneless bovine meat, milk powder,  butter, butteroil, cheese, wheat flour, 
wheat groats and meal, "dulce de leche", blancmange (only Colombia), beverages 
containing milk;  and (ii) preferential ra tes (reduced progressively to reach 0 per cent 
in 2017) for vegetable oils of soya-bean, s unflower, safflower, rape, colza.  Quotas 
are progressively increased to reach their maximum level in 2020. 
(e) Rules of origin for products referred under (a) above are as listed in the original 
Treaty (Article 6). 
                                                      
46 In terms of the original Treaty, a Sections A Bis and B Bis are added to Annex 1 to Article 3-04. 
47 The tariff reductions take place on 2 August every year. 
48 Article 3-08 Bis and its Annex are added to the original Treaty. 
49 Article 5-04 Bis and its Annex are added to the original Treaty.  WT/REG289/1 
 Page 35 
 
 
  Table III.5 
Additional tariff elimination commitments under the Treaty and corres ponding average trade 
Party to the 
Agreement Duty phase-out period Number  
of lines % to total 
lines in the 
Party's tariff 
schedule % of each Party's total 
imports on  
bilateral trade 
1992-1994  2006-2008  
Mexico MFN duty-free (1995) 1,065 9.0 42.8 18.3 
Remain dutiable in 2010a 391 3.3 3.5 3.8 
Additional duty-free tariff lines in 2020 56b 0.5 0.8 2.2 
Remain dutiable in 2020 335 2.8 2.7 1.6 
Colombia MFN duty-free (1995) 91 1.3 3.8 0.7 
Remain dutiable in 2010  384 5.5 1.5 1.3 
Additional duty-free tariff lines in 2020 42c 0.6 0.5 0.7 
Remain dutiable in 2020 342 4.9 1.0 0.6 
 
a Tariff lines 8716.39.03 and 8716.39.04 have duties of 20 per cent at the end of the implementation period (2010) and therefor e 
are included in the remain dutiable lines even  though its MFN 1995 rates are already duty free. 
b The tariff lines are aligned in the HS Code which exists in  the Mexican submission containing the tariff phase-out (HS 1992 
 nomenclature). 
c The tariff lines are aligned in the HS C ode which exists in the Colombian submission containing the tariff phase-out (HS 2002  
nomenclature). 
 
Source : WTO estimates based on data pr ovided by Mexico and Colombia. 
 
Part III - Rules of Origin 
 
96. Four Articles and Annexes modify disciplines on rules of origin.  Certain specific rules of 
origin are modified;  these are listed in Annex 5 to the Protocol (as per Article 7).  Revised provisions 
were included regarding the CIRI and a new Certificat e of Origin is provided for which entered into 
force on 2 June 201150 (respectively Articles 8 and 10 and Annexes 6 and 8 to the Protocol);  as in the 
original Treaty, certification by the exporter and validation by the competent authority, as well as 
a Declaration of Origin when the exporter is not th e producer continues to be required.  The Parties 
continue to apply digital certification. 
97. A provision for diagonal cumulation has been integrated into the Treaty51 (Annex 7 to the 
Protocol), potentially allowing such cumulation w ith countries having regional trade agreements with 
both Parties and for products and materials liberal ized under these instruments;  the Administrative 
Commission is to define the countries, products and c onditions to implement this Article.  In practice, 
diagonal cumulation is authorized for nylon filame nt yarns produced in either Canada or the 
United States under certain conditions.52 
                                                      
50 Pursuant to Administrative Commission Decision No. 65, amendments to the certificate of origin and 
the declaration of origin were agreed on to reflect the amendm ent to the name of the Treaty. 
51 Article 6-08 Bis of the original Treaty. 
52 Colombia points out that "the extended cumula tion provided for in Article 9 of Annex 7 to the 
Protocol has not been implemented by the Parties, while through the specific rules of origin applied for 
HS Section XI (textiles and textile articles, Chapters 50 to 63), the countries may cumulate nylon filament yarns 
of subheadings 5402.10, 5402.31, 5402.32, 5402.41, 5402.51 or 5402.61 when these are imported and produced 
in the United States or Canada and comply with the rule of origin of this Treaty". WT/REG289/1 
Page 36  
 
  Part IV - Administration of the Treaty 
 
98. The Administrative Commission's decision-making powers have been strengthened and made 
more explicit, to reflect changes provided for in the Protocol (Article 11 and Annex 9 to the 
Protocol).
53  In particular, the Commission may adopt d ecisions relating to accelerated liberalization, 
incorporation of new products into the TEP, impr oved market access conditions and changes to rules 
of origin.  Further, it has also been made explic it that it can recommend to the Parties amendments to 
be made to the Treaty. 
Part VI - Entry into Force 
 99. Article 12 contains disciplines regarding entry into force;  these were completed and as 
previously indicated the Protocol is in force as of 2 August 2011. 
IV. PROVISIONS ON TRADE IN SERVICES AND INVESTMENTS 
A. S
COPE AND DEFINITIONS  
100. Trade in services is governed by Chapter X (Gen eral Principles on Trade in Services) together 
with Chapter XI on Telecommunications, Chapter XI I on Financial Services and Chapter XIII on the 
Temporary Entry of Business Persons.  As for Inv estments, they are covered by Chapter XVII.  These 
Treaty Chapters have been complemented by two Pr otocols, one to Chapters X and XVII and another 
to Chapter XII, adopted in Decision No . 11 of the Administrative Commission.54  These Protocols, 
which entered into force on 1 January 1997, contain the Parties' lists of reservations for services and 
investment.55  In 2001, a new Protocol adopted in Decision No. 35 of the Administrative Commission, 
modified the list of non-conforming measures in Fina ncial Services.  The new Protocol entered into 
force on 28 September 2001.56 
101. Chapter X applies to measures a ffecting trade in services by service suppliers of a Party, 
adopted or maintained by the other Party at the fede ral or central level, state or department level and 
by non-governmental bodies in the exercise of power s delegated by government authorities.  Trade in 
services follows the GATS definition and covers all f our modes of supply.  Article 10-01 defines trade 
in services as the supply of a service: 
(a) From the territory of one Party into the te rritory of the other Party (i.e. cross-border); 
(b) in the territory of a Party to a consumer from the other Party (i.e. consumption 
abroad); 
(c) by a service supplier of a Party, throug h commercial presence in the territory of the 
other Party (i.e. commercial presence);  and 
(d) by a service supplier of one Party, through the presence of a natural person in the 
territory of the other Party (i.e. tem porary movement of natural persons). 
                                                      
53 These were made through modifications of the original Treaty's disciplines of Article 20-01. 
54 Published in Colombia's Official Journal on 14 January 1997. 
55 The Protocol to Chapters X and XVII also contained the lists of reservations of Venezuela for 
services in general;  Venezuela's list relating to financ ial services has been adopted through this Protocol.  
Venezuela's commitments ceased to be  in effect as of 19 November 2006, when the c ountry effectively 
withdrew from the Treaty. 
56 Since this document could not be obtained, the information and commitments relating to the financial 
services described in this factual presentation are based on the 1997 Protocol.  WT/REG289/1 
 Page 37 
 
 
  102. Chapter X does not apply to: 
(a) Subsidies or grants by one Party or by a State enterprise (including 
government-supported loans, guarantees and insurances); 
(b) services supplied on a non-commercial basi s or in the exercise of governmental 
authority (e.g. law enforcement, correcti onal services, pension or social security 
services, social welfare, public education, public training, health and child 
protection); 
(c) financial services (Article 10-02);  and (d) air transport services and supporting activiti es to air transport (Annex 2 of Chapter X) 
except for major aircraft repair and main tenance services, subject to reciprocity, 
computer reservation systems and specialized air services.  Aircraft repair and 
maintenance services and computer reservation systems are also covered in the GATS according to the GATS Annex on Air Trans port Services, while no specific mention 
is made of specialized air services. 
103. In addition, Chapter X does not: 
(a) Impose any obligation on the Parties with respect to a national of the other Party 
seeking access to its employment market or al ready employed on a permanent basis in 
its territory, nor confer any right on that national with respect to that access or employment;  or 
(b) impose any obligation or grant any right regarding government procurement by 
a Party or a state company. 
104. Chapter XI on Telecommunications applies to  value-added services (Article 11-03).  
Broadcast or cable distribution of radio and tele vision programming, as well as the supply of basic 
telecommunication services are excluded.  This Chapter foresees full liberalization of value-added telecommunications services - restricted under the GATS - by 1 July 1995 (for a detailed description 
see Section IV.F.1 of this Factual Presentation). 
105. Chapter XII on Financial Services applies to (a ) financial institutions of another Party;  
(b) investors of another Party, and their investments,  in financial institutions in the Party's territory;  
and (c) cross-border trade in financial services.  Under the Treaty, the Parties commit to gradually 
liberalize, through successive negotiations, all thei r restrictions on financial services (for a detailed 
description see Section IV.F.2 of this Factual Presentation). 
106. Chapter XIII on the temporary entry of business pe rsons aims at facilitating the movement of 
natural persons on the basis of reciprocity by establishing transparent criteria and procedures (for 
a detailed description see Section IV.C.4 of this Factual Presentation). 
107. Finally the Treaty includes a chapter on investments - Chapter XVII - which consists of 
two sections.  Section A lays out the measures that  apply to investors of the other Party and its 
investments, while section B adopts an investor-sta te dispute settlement mechanism.  The Chapter 
defines investments as resources transferred to the te rritory of a Party, or reinvested therein by 
investors of another Party (Article 17-01);  and app lies to measures adopted or maintained by a Party 
relating to (a) investors of another Party;  (b) thei r investments;  and (c) to  all investments in the WT/REG289/1 
Page 38  
 
  territory of the Party with respect to performance requirements (Article 17-04).
57  It does not apply to 
measures covered by Chapter XII on financial servi ces, unless specified otherwise.  Moreover, no 
provision in Chapter XVII can be used to preven t a Party from adopting or maintaining measures 
aiming at ensuring national security, public order or apply penal laws.  In case of any inconsistency 
between this Chapter and another Chapter, the ot her Chapter will prevail to the extent of the 
inconsistency. 
B. DENIAL OF BENEFITS  
108. Under Article 10-15, a Party can deny the benefits  provided in Chapter X to a service supplier 
of the other Party if that enterprise has no substa ntial business operations in its  territory and is owned 
or controlled by persons of a third party. 
109. According to Chapter XI on telecommunications, the Parties can also deny the benefits 
provided to a value-added service provider of  the other Party if the service and its 
related-infrastructure are located in a third country .  Similarly, these benefits will not apply to any 
service provider if it is owned or controlled by  persons of a third Party (Article 11-11). 
110. Subject to communication and consultations, the Parties can also deny the benefits provided 
in Chapter XII to financial institutions or cross-bor der financial services providers of the other Party, 
if the institution in question has no substantial bus iness operations in any of the two Parties or is 
owned or under the control of persons of a third Part y.  As of the beginning of 2000, both the amount 
of the activities of an institution and its owne rship would be required as a condition to deny the 
application of the Chapter XII (Annex to Article 12-16). 
111. Finally, a Party can, subject to prior communica tion and consultation, de ny the benefits of 
Chapter XVII (on Investments) to an investor from th e other Party that is a company of that Party, and 
its investments, if the company is owned or controlled by investors from a non-Party and is not engaged in substantial busin ess activities in the Party's territory (Article 17-11). 
112. The Treaty does not contain an express definition of the scope of the term 
"substantial/important business operations " or of the issues related to "control";  the Parties have 
criteria consistent with their own legislation.
58 
C. GENERAL PROVISIONS ON TRADE IN SERVICES  
113. Under Article 10-07, the Parties agree to not increase the degree of non-compliance of their 
existing measures with regard to local presence requirements, and national and most-favoured 
treatment. 
                                                      
57 This Chapter applies to the entire territory of the Parties and to all government levels. 
58 Colombia points out that "they are, however, commonly used terms in International Investment 
Agreements, and are applied and interpreted similarly in  the three chapters although in accordance with the 
particularities of each of them (for ex ample, the "substantial economic activ ities" of a financial company differ 
from those of a manufacturing company).  With regard to "control", as well as responding to the criteria of International Investment Agreements, it is important to clarify that normally evaluation criteria similar to those 
in Article XXVIII(n) of the GATS are used, i.e. evaluation is  made of criteria such as the "possibility to name its 
directors" or to "direct its actions";  an example of this can be found in the Ag reement between Colombia and 
Switzerland on the Reciprocal Promotion and Protection of Investments (2006):  Protocol, Addition Article 1, 
paragraph 2(a)".  WT/REG289/1 
 Page 39 
 
 
  1. Market access 
114. The Parties commit to undertake negotiations, at least every two years, to liberalize or 
eliminate existing quantitative restrictions maintained  at the federal or central, state or department 
level (Article 10-08).  They also agree to lis t in a new Protocol:  (a) any existing quantitative 
restrictions, no later than one year after the entry in to force of the Treaty (Article 10-08);  and (b) any 
new quantitative restriction introduced (different fro m those maintained at the municipal level) after 
the entry into force of the Treaty.  As at De cember 2011, there have been no negotiations under 
Article 10-08 nor has a Protocol listing th e quantitative restrictions been adopted. 
115. Under the Treaty, negotiations will be convene d by the Administrative Commission with the 
purpose of deepening liberalization in services, elimin ating restrictions in the reservations lists and 
reaching an overall balance (Article 10-09).  The Parties can also negotiate the liberalization of 
quantitative restrictions, licence requirements as  well as other non-discriminatory measures 
(Article 10-10).  During their negotiations ove r non-discriminatory measures (Article 10-10), 
quantitative restriction (Article 10-08) and reserva tions, the Parties will endeavour to reach an 
agreement based on reciprocity (Article 10-11).  As at December 2011, there have been no 
negotiations under Articles 10-08, 10-09 and 10-10. 
2. National and MFN treatment 
116. As of the entry into force of the Treaty, the Parties agreed to grant MFN and national 
treatment to services and service providers of  the other Party (Articles 10-04 and 10-05). 
117. The Parties also agreed in Article 17-03 to acco rd MFN and national treatment to investors of 
the other Party and their investments. 
118. Under Chapter XII, they further commit to ac cord national (Article 12-06) and most-favoured 
(Article 12-07) treatment to financial institutio ns, providers of cross-border financial services, 
investors (engaged in activities related to financia l institutions) of the other Party, as well as to 
investments from these investors in financial ins titutions located in the territory of the Party. 
3. Commercial presence 
119. Under Article 10-06, a service provider of a Party will not be required by the other Party to 
set up or maintain a representative office or other form of enterprise or be resident in its territory in 
order to supply a service. 
4. Movement of natural persons 
120. Chapter XIII lays out the conditions for the tem porary entry of business persons in the Parties' 
territory.59  It aims at facilitating the temporary entry of business persons on the basis of reciprocity 
while considering the need to establis h transparent criteria and procedures in this area.  It also reflects 
the need to ensure border security, the protecti on of the domestic labour force, and permanent 
employment in their respective territories (Article 13-02). 
121. Under this Chapter, the Parties commit to gran t entry and temporary authorization to business 
persons that comply with their immigration requirements.  A Party can refuse to issue an immigration 
document authorizing employment to a business person if the temporary entry of that person 
negatively affects:  (a) the settlement of any labour  dispute that is in progress at the place or intended 
                                                      
59 Article 13-01 defines "business person" as a citizen of a Party who is engaged in trade in goods, the 
provision of services or investment activities. WT/REG289/1 
Page 40  
 
  place of employment;  or (b) the employment of any person who is involved in the dispute.  The Party 
refusing to issue an immigration document must notify the business person in writing of the reasons for the refusal (Article 10-04).  Furthermore, the Parties cannot adopt or maintain any quantitative 
restrictions regarding the immigration permits referred to in this Chapter. 
122. According to the Annex to Article 13-04, each Party commits to grant an authorization of 
temporary entry to
60: 
(a) Business visitors prior to a request by an  enterprise established in the territory of 
a Party.  Such authorization will not requir e a work certificate or any other procedure 
with similar effects and will be issued as long as the business person (i) presents proof of citizenship of a Party;  (ii) presents th e request by an enterprise established in the 
Party's territory or documents describing th e activity to be carry out and the purpose 
of the entry;  and (iii) demonstrates, in the case of services provision, that the proposed business activity is international in  scope and that the business person is not 
seeking to enter the local labour market.  The provision covers research, farming, 
manufacturing, production, trading, sales, di stribution, post sales and general services 
activities. 
(b) Investors seeking to establish, develop, administer or provide advice or key technical 
services, in supervisory, executive or othe r key positions, to the operation of an 
investment to which the business person or its company has committed, or is in the 
process of committing, a substantial amount of capital.
61  In addition, the investor 
must comply with the applicable immigra tion regulations.  The Parties cannot apply 
quantitative restrictions. 
(c) Intra-company transferees who seek to work  in a managerial or executive position, or 
one that requires specialized knowledge.  The Parties can require that the business 
person be employed by the enterprise in ques tion for at least six months prior to the 
application for admission. 
(d) Professionals prior to a request by an enterp rise established in the territory of a Party.  
Such authorization will be issued as long as the business person presents (i) a proof of citizenship of a Party and (ii) documents  describing the purpose of entry and the 
activities the person will engaged in.  The temporary entry of a professional does not 
imply the recognition of degrees and certificates, nor the issuing of work licences.  The working group on Temporary Entry will establish in the six months that followed 
the entry into force of the Treaty a list of  professional activities that will be covered 
by this Article.  As at December 2011, there has been no exchange of lists of professional activities. 
123. According to Article 13-07, a Party cannot initiate a dispute settlement procedure under 
Article 19-06 (on Intervention of the Commiss ion, good offices, medi ation and conciliation) 
                                                      
60 The Treaty goes beyond the GATS Annex on Movement of Natural Persons supplying services, as 
the latter covers only persons who are service supplie rs of a Member, and persons of a Member who are 
employed by a service supplier of a Member.  Co lombia points out that the Treaty goes beyond the 
GATS Annex as it contains a chapter on the temporary entry of business persons which includes business 
visitors, investors, professionals and intra-corporate transferees. 
61 In the text of the Treaty there is  no definition of the concept of "a substantial amount of capital";  this 
is subject to the legislation of the Parties.  Accordin g to Colombian domestic legislation and, in particular, 
Resolution No. 4700 of 2009, Decree No. 2622 of 2009, Decree No. 4000 of 2004 and the general investment and exchange regime, a "substantial amount of capital" is foreign direct investment of an amount not less than 
US$100,000.  WT/REG289/1 
 Page 41 
 
 
  following the refusal of a temporary entry perm it or any other particular matter covered by 
Article 13-03 (on General Obligations), unless the ca se is recurrent practice and the business person 
has exhausted all possible administrative remedies available.62 
5. Performance requirements 
124. Under Article 17-04, the Parties cannot impose ( unless specified in th e Parties' reservation 
lists, Article 17-06) any of the following requirements to  establish or invest or to obtain or maintain 
an advantage or incentive: 
(a) To purchase or use a given quantity or value of a domestic good from the Party, or 
according to a given percentage of the volume or value of the local production; 
(b) to relate in any way the amount of goods  imported by a company to the volume or 
value of its exports; 
(c) to achieve a given level or percentage of  domestic content by restricting the import of 
inputs;  and 
(d) to export a given leve l or percentage of goods. 
125. The requirements in (a) and (d) do not appl y to qualification requirements for goods or 
services with respect to export promotion and foreig n aid programmes.  Requirement (a) also does not 
apply to procurement and to requirements imposed by an importing Party relating to the content of 
goods necessary to qualify for preferential tariffs or preferential quotas. 
126. If a Party considers that a measure not listed above negatively affects trade flows or 
constitutes a barrier to investment, the issue will be considered by the Administrative Commission, 
which can recommend the suspension of such practice. 
6. Senior Management and Board of Directors 
127. A Party may limit the number or percentage of  foreigners working in a company or in 
managerial positions, provided that such requireme nts do not impair or obstruct the ability of the 
investor to exercise control over its investment (A rticle 17-05).  This provision does not apply to 
financial institutions (Article 12-14). 
7. Other investment-related provisions 
128. In addition to performance requirements, rest rictions on senior management and board of 
directors, MFN and national treatment provisions , Chapter XVII on investments includes provisions 
dealing with transfers (Article 17-07), expropri ation and compensation (Article 17-08), special 
formalities and information requirement s (Article 17-09), extra-territorial application of the legislation 
of the other Party (Article 17-12), environment- related concerns (Artic le 17-13), investment 
promotion and information exchange (Article  17-14), and double taxa tion (Article 17-15). 
D. LIBERALIZATION COMMITMENTS  
129. The liberalization of trade in services follows a "negative list" approach, which means that 
provisions in Chapter X apply to all sectors and modes of supply, unless otherwise specified.  
                                                      
62 Administrative remedies are considered to be exha usted if a final determination on the matter has not 
been issued by the competent authority within six mont hs from the beginning of the administrative procedure, 
and that the failure to reach a verdict is not attributable to a delay caused by the business person. WT/REG289/1 
Page 42  
 
  Articles 10-07 and 17-06 from the Services and Inv estment Chapters, respectively, provide with 
a time-frame for the Parties to specify in a Protocol  their reservations for existing and future measures 
with respect to national treatment, MFN treatme nt, local presence, performance requirements and 
senior management and board of directors.
63  In addition, Article 10-07 provides for the establishment 
of a Protocol containing non-conforming measures at  the State and department level within the first 
two years after signature of the Treaty.  Article  17-06 also foresees the adoption of a third list 
indicating the economic activities reserved for the Stat e and a fourth list with their MFN exceptions in 
relation with bilateral or multilatera l treaties signed by the Parties. 
130. As indicated in paragraph 100 above, Protocols c ontaining (a) the Parties' lists of reservations 
of existing and future measures, of activities reserved  exclusive to the State and of exceptions to the 
MFN principle (respectively Lists 1, 2, 3 and 4);  and (b) the Parties list of the reservations on 
financial services, as foreseen by Article 12-15,  were adopted in Decision No. 11 of the 
Administrative Commission.  The 2001 Protocol modified the lists of financial services. 
1. Colombia 
131. Under the Treaty, Colombia listed 31 reserva tions (at the national level) for existing 
measures, among which three concerned a ll sectors (i.e. horizontal reservations).64  Table AV.1 in 
Annex V presents the complete list. 
(a) Horizontal commitments 
 132. Colombia's horizontal commitments are broade r than in the GATS with Colombia expanding 
its commitments in modes 3 and 4. 
133. In the Treaty, mode 3 is almost fully liberalized .  Only a few restrictions remain.  The first 
one consists of a nationality and senior staff requi rement, which applies to managerial and back-up 
staff in foreign firms operating in the public sector .  The second one requires that foreign firms with 
a concession from the Colombian government establish a branch in Colombia.  Lastly, the GATS reservation relating to the prohibition on foreign investment in waste disposal services has 
been maintained, as well as that re lating to the acquisition by foreigners of land in border areas.
65  As 
part of the commitments, the restriction relating to  a tax on the remittance of profits for foreign 
corporations was eliminated. 
134. As for mode 4, Colombia agrees under the Treaty to grant temporary entry to any business 
person (i.e. business visitors, investors, intra-co mpany transferees and professionals) from Mexico 
while in the GATS, Colombia's commitments cover only managers, legal representatives and 
technical specialists (except for professional services sub-sectors). 
(b) Sector-specific commitments 
 135. Compared to its GATS schedule, Colombia's sect or-specific commitments are also broader:  
five sectors
66 - not included in the GATS - are fully liberalized, namely (a) distribution services;  
                                                      
63 Originally, the time frame provided that this should be done within eight months from the Treaty 
signature. 
64 These include a restriction under which Colombia reserves the right to maintain any non-conforming 
measure at the departmental and municipal levels. 
65 The latter is reflected in the list of future reservations (List 2). 
66 This Factual Presentation follows the WTO Services Sector Classification list, which is based on the 
UN Central Product Classification (CPC) and consists of 12 sectors (WTO document MTN.GNS/W/120).  WT/REG289/1 
 Page 43 
 
 
  (b) education services67;  (c) health related and social services;  (d) recreational, cultural and sporting 
services;  and (e) other services.  Two other sectors,  namely environmental and transport services, 
also excluded from the GATS schedule, are partially liberalized under the Treaty.  As for construction 
and related engineering services and tourism and trav el related services, both are restricted under the 
GATS but fully liberalized under the Treaty.  The remaining sectors, namely financial services68, 
business and communications services, are subject to reservations in both the GATS and the Treaty, 
but commitments are broader under the Treaty.69 
136. Environmental and transport services were ex cluded from the GATS but partially liberalized 
under the Treaty.  In the case of environmental servi ces, there is only one reservation specified which 
mirrors the reservation listed in Colombia's horiz ontal GATS commitments which restrict foreign 
investment in activities related to the processing and disposal of toxic, hazardous or radioactive waste 
not produce in Colombia. 
137. In the case of transport services, Colombia made full commitments in rail and pipeline 
transport and in services auxiliary to all modes of tr ansport.  It also partially liberalized maritime, 
internal waterway, road and air transport services.  In maritime and internal waterway transport, 
restrictions concern modes 1 and 3 and allow Colombia to apply a ceiling on foreign equity 
participation in maritime freight transport compan ies and to reserve the ownership of maritime lines 
registered in Colombia for Colombian nationals.  Nationality requirements also apply to cabotage 
services, port towing and pushing, all of which must be supplied by Colombian providers 
(i.e. Colombian vessels and nationals).  In road tr ansport, reservations provide that enterprises that 
carry on such services must be legally established and domiciled in Colombia.  In air transport, in its 
list of reservations Colombia limits foreign equi ty participation to 40 per cent in commercial 
Colombian airlines and reserves the ownership of co mmercial airlines registered in Colombia to 
Colombian nationals;  these reservations also a pply to space transport services.  The supply of 
specialized air services is also reserved to Colombia n nationals, domiciled in Colombia.  The Parties 
further commit to develop and expand their commit ments in freight and passenger transportation in 
order to achieve free market access. 
138. In the case of construction and related engineer ing services, the Treaty adds full commitments 
in building and completion and finishing work servi ces, and fully liberalizes all the other subsectors, 
which under the GATS are subject to various restrict ions in modes 1 and 4 and have partial sectoral 
coverage.  Indeed, GATS' commitments are limite d to dams and golf courses in the case of general 
construction work for civil engineering;  derrick operations in the case of installation and assembly 
work;  and to pre-erection work at building and construction sites in the case of other construction 
services. 
139. For tourism services, the Treaty provides for expanded coverage by adding full commitments 
in tourist guide services and other tourism related services, and lifting the restrictions maintained 
under the GATS in travel agencies and tour operato rs services, mode 4.  It also made full 
                                                      
67 Under the Treaty, Colombia listed a reservation to MFN treatment in education services that 
recognizes primary and secondary degrees obtained only in Mexico and other signatory countries of the Andrés 
Bello Convention (Bolivia, Chile, Cuba, Dominican Republic, Ecuador, Panama, Paraguay, Peru, Spain and 
Venezuela). 
68 Financial services are to be progre ssively liberalized under the Treaty. 
69 Regarding MFN exemptions under the GATS, Colombia included in its list of exemptions the 
following sectors:  communications (i.e. telecommunications and audiovisual), transport (i.e. land transport) and financial services (i.e. insurance and insurance related services, banking and other financial services), which 
have to a large extent been liberalized under the Treaty. WT/REG289/1 
Page 44  
 
  commitments in restaurants' services - excluded from the GATS - and remove the restrictions in the 
case of hotels for mode 4.
70 
140. Colombia made broader commitments in insura nce and insurance-related services, as well as 
in banking and financial services, as compared to its 1998 GATS commitments, which cover mainly 
mode 3 and only certain activities.71  In insurance and insuran ce-related services, Colombia 
liberalized accident and health insurance service s, which are excluded from the GATS.  Limitations 
applying generally have however not been lifted to  Mexican companies;  thus (a) natural or legal 
persons cannot conduct insurance ope rations with Mexican companies not established in Colombia;  
(b) insurance for ships, aircraft and cars regist ered in Colombia must be provided by Colombian 
entities, unless otherwise authorized;  (c) individua l savings retirement accounts can only be managed 
by pension fund administrators registered in Colo mbia;  and (d) Mexican nationals willing to supply 
services in Colombia as insurance agents must have  resided in Colombia for more than one year. 
141. In banking and financial services, Colombia also improve its sectoral coverage by liberalizing 
(a) all payment and money transmission services;  (b) asset and pension fund management services;  (c) all forms of collective investment management services, custodial depository and trust services;  
and (d) settlement and clearing services for financia l assets, derivative products and other negotiable 
instruments, all of which are excluded from the GAT S 1998.  Such liberalization is subject to national 
treatment limitations in financial intermedia tion services (except insurance and pension fund 
services), and reserve for Colombia's Central Bank the organization and regulation of the exchange 
rate market and external public and private debt.  Other national treatment re servations require that 
money subject to court or police order be depos ited in a given Colombian bank and provide that 
Colombian nationals benefit from special conditions to buy State shares in financial institutions. 
142. Business services such as computer and related services, and rental/leasing services, restricted 
under the GATS, are fully liberalized under the Treat y.  Research and development services and real 
estate services - excluded in the GATS - are partia lly liberalized;  Mexican and any other foreign 
investment remains prohibited in companies providing  real estate services and securities.  In the case 
of professional services supplied by Mexico, Colo mbia expanded the covera ge of legal services 
(limited under the GATS to legal advisory services in  foreign and international legislation);  it 
liberalized modes 1 and 4 for tax advisory services and modes 1 and 2 for legal advisory services in 
foreign and international legislation (previously  restricted under the GATS).  For accounting and 
book-keeping (also restricted under the GATS), a less stringent reservation in mode 3 applies to Mexican suppliers:  while a domicile requirement applies (at least three years prior to the application), 
the qualification requirement (public accountant degree from a Colombian university or a foreign 
institution recognized by the Colombian government) is  lifted.  Mexican economists also need to be 
domiciled in Colombia to practice.  Finally, all remaining professional subsectors (i.e. architectural, 
engineering, integrated engineer ing, urban planning a nd landscape architectural, medical and dental, 
veterinary and other services as well as services provi ded by midwives, nurses, physiotherapists and 
paramedical personnel) - excluded from the GATS - are liberalized. 
143. In other business services, the Treaty extends its sectoral coverage to all subsectors (17 in 
total).  It also lifts GATS' restrictions in modes 1 and 4 for management consulting services, and in mode 4 for services incidental to mining and fishing.   Mexican suppliers remain however subject to 
reservations.  In mode 1, they must have a partners hip with a Colombian firm to carry out consultancy 
work in geology (i.e. industrial and commercial).  For fishing-related activities, Mexicans willing to 
                                                      
70 In the GATS, commitments in hotel services for mode 1 are unbound.  Yet, such characterization 
cannot have an effect as cross-border trade in this sector is technically unfeasible. 
71 As a result of the 1998 Negotiations in Financial Services, Colombia added new commitments and 
issued a new text (document GATS/SC/20/Suppl.3) which replaced the financial services section in its 
1994 GATS schedule.  WT/REG289/1 
 Page 45 
 
 
  engage in such activities need to be domiciled in  Colombia, and industrial and commercial fishing is 
reserved for Colombian flagged ships (although in so me cases foreign ships can be used).  As for 
mode 3, investors in surveillance and security companies must be Colombian nationals.  In mining, 
foreign companies wishing to dedicate themselves to permanent business must establish a branch in 
Colombia.72  If the business is occasional or temporary, such companies must appoint a representative 
with domicile and residency in Colombia.73  Finally, as in the GATS horizontal commitments, 
Mexican investment is not allowed in activiti es related to national defence and security.74 
144. For communication services, Colombia made full commitments in postal,  courier, and other 
communication services.  It also included audiovisu al services in its liberalization schedule but 
Mexican suppliers remained subject to eight restri ctions.  National treatment limitations apply to 
television (i.e. advertisement, artists, time quotas and schedule of national programmes) and movie 
projection services.  Television companies and channe ls are subject to foreign investment ceilings.  
Local presence requirements apply to staff hired by  a regional television operator.  Concessions on 
radio broadcasting are reserved for Colombian nationa ls or juridical persons established in Colombia 
and subject to management board restrictions.  The position of director of a news or journal 
broadcasting is also reserved for Colombian nationals .  With respect to telecommunications services, 
Colombia immediately liberalized basic tel ecommunication services - excluded from the 1994 GATS 
but partially liberalized in its 1997 GATS schedule.75  In value-added services, it liberalized modes 1, 
except for video text and enhanced packet sw itching services, and 4 - bot h unbound in the GATS.76  It 
also made broader commitments in mode 3, by permitting Mexican investment up to 100 per cent in 
existing firms or to be established in the Parties' territory to supply valu e-added services, except for 
video text services and enhanced packet switching services.  In contrast, under the GATS, the supply 
of value-added services is reserved for the Stat e or Colombian natural or  legal persons operating 
through a concession.  Finally, the Parties lifted mo de 1 and 3 restrictions on video text services and 
enhanced packet switching services by 1 July 1995, in accordance with the co mmitments made in the 
Agreement. 
                                                      
72 In the Treaty, a company is considered to have perm anent business if it obtains mining rights or if it 
conducts work and services of a duration exceeding one year. 
73 This differs from Colombia's GATS commitments, which include exploration, prospection and 
analysis services, and which include restrictions only in mode 4.  Colombia points out that the reservation in the 
Treaty is focused on permanent activities (referring to the exploitation of resources) and that the 
GATS commitments have a strong exploration, prospection and study component. 
74 In its list of reservations, Colombia defines goods and services in national defence and security as 
(a) armament systems, arms and related accessories, (b) all types of ships, boats and airships for national security, as well as any related accessory and element needed for its functioning, (c) ammunitions, torpedoes 
and mines (d) shield material, (e) road, maritime, waterway inland and air transport equipment and its 
accessories needed for the transporta tion of people and material in national defence, (f) explosives and 
pyrotechnic material, (g) parachute and skydiving equipment for air transport, (h) equipment against riots, 
(i) combat engineers equipment, as well as their pa rts and accessories, (j) diving  equipment and underwater 
blasting, their parts and accessories, (k) aerial, land an d underwater detection equipm ent for the national defence 
sector, as well as its related parts and accessories, (l) tools and equipment for tests and maintenance of 
war material, defence and national security, (m) communication equipment for the national defence sector and 
any entity engaged in the maintenance of public order,  (n) military medical equipment, health equipment, 
countryside military equipment for national defence and for the public force, (o) clothing, personal or team 
equipment for the public force, and (p) intelligence equipm ent required by the defence sector, the Department of 
Security or the Office of the Attorney General of Colombia. 
75 In 1997 as a result of the Negotiations on Basic Telecommunications, Colombia supplemented its 
existing schedule of specific commitments on services by adding partial commitments on basic 
telecommunications (WTO document GATS/SC/20/Suppl.2).  In the 1997 GATS schedule, basic telecommunications are partially liberalized. 
76 Mode 4 was unbound, except as for the horizontal commitment. WT/REG289/1 
Page 46  
 
  145. Regarding reservations for future measur es, Colombia listed one horizontal and 
five sector-specific reservations;  they concern national and MFN treatment, local presence, senior 
management and board of directors, and pe rformance requirements.  They apply to 
telecommunication services, postal services, health-related and social services, other business services, and banking and financial services. 
2. Mexico 
146. According to the Decision No. 11 of the Treaty's Administrative Commission, Mexico listed 
63 reservations (at both federal and state level) fo r existing measures, among which six concerned all 
sectors (i.e. horizontal reservations).
77  Table AVI.1 in Annex VI presents the complete list. 
(a) Horizontal commitments 
 
147. Compared to its GATS schedule, Mexico's horizontal commitments under the Treaty are 
deeper.  In the Treaty, Mexico expands its commitm ents in modes 3 and 4, while maintaining a few 
restrictions78;  these take the form of senior management, national treatment and MFN limitations and, 
in most cases, echo those in the GATS schedule.  W ith respect to mode 3, the Treaty states that the 
National Commission on Foreign Investment may, according to specific criteria, authorize foreign 
investment (acquisition or establishment) in restrict ed activities indicated in the List of Reservations.79  
This differs from the GATS, which permits foreign investment in activities reserved for Mexican nationals (and therefore restricted) but onl y through neutral shares (i.e. shares with no voting 
rights or with limited corporate rights) and with prior authorization from the Ministry of the Economy and, where applicable, the National Banking and S ecurities Commission (Law on Foreign Investment, 
Section 5).  The Treaty also allows (without prior examination) foreign investments up to 49 per cent 
in a Mexican company operating in an unrestricted sector.
80  In another reservation, the Treaty limits 
the acquisition by foreigners of land and water in Mexico, which mirrors the GATS.  With respect to 
mode 4, the Treaty grants temporary entry to a broader category of business persons (i.e. business 
visitors, investors, intra-company transferees a nd professionals).  In the GATS, market access and 
national treatment commitments for temporary entry concerns only natural persons who are directly 
responsible for the sale of a service, and executives, managers or specialists transferred within the 
same company.  In addition, the Treaty applies na tionality requirements to micro-industry enterprises 
and to the staff of Mexican cooperative production enterprises.  The Treaty, like the GATS, also 
specifies that positions related to the functioning and management of ships, aircrafts and trains are 
reserved for Mexican nationals. 
(b) Sector-specific commitments 
 148. Mexico's sectoral liberalization under the Treaty goes beyond its GATS commitments.  
Two sectors, namely environmental services and recreational, cultural and sporting services - excluded from the GATS - are fully liberalized.  Health  related and social services, tourism and travel 
related services, and other services - restricted unde r the GATS - are also liber alized.  Additionally, 
                                                      
77 These include a restriction under which Mexico reserves the right to maintain any non-conforming 
measure at the state and municipal levels. 
78 Under the GATS, Mexico made horizontal commitments in all modes.  Full commitments were made 
in modes 1 and 2, while in modes 3 and 4 commitments were limited. 
79 Restricted sectors are all those activities which app ear in the list of State-reserved activities.  Such 
activities are restricted to foreign investors as well as Mexicans.  Furthermore, the list of reservations includes the sectors restricted to foreign participation under the Law on Foreign Investment. 
80 Unrestricted sectors are those which do not appear in the list of reservations.  WT/REG289/1 
 Page 47 
 
 
  Mexico made broader commitments in seven sectors:  distribution, financial, business, 
communications, education, transport and c onstruction and related engineering services.81 
149. For health-related and social services, Mexico added social and other health services to its 
liberalization schedule and lifted the restrictions a pplying to hospital and other human health services 
in modes 1, 3 and 4 under the GATS.  For tourism and travel related services, it added full 
commitments in other services and fully liberalized th e remaining subsectors:  hotels and restaurants, 
travel agencies and tour operator services, and tourist guides services, which were subject to partial commitments in the GATS schedule and to MFN exemp tions.  Other services are also fully liberalized 
in the Treaty, in contrast to its GATS commitments  which covered only the repair of footwear and 
other articles of leather/skin articles, the repair of electronics, of clocks, watches and jewellery, of 
head gear, of bicycles and to locksmiths' trade and concerned mainly modes 1 and 2. 
150. In the case of distribution services, Mexico  liberalized commission agents' services, 
franchising and other services - excluded from the GATS.  It also liberalized wholesale trade-restricted under the GATS.  In retailing servi ces, it made broader commitments but restricted 
Colombian equity participation in Mexican comp anies engaged in arms, cartridges and ammunition 
trade to 49 per cent;  this is less restrictive than in the GATS, where the retail sales of arms, cartridges 
and ammunition trade by foreigners is prohibited. 
151. In the case of financial services, Mexico adde d new commitments in all subsectors, namely 
insurance and insurance-related services, banking and financial services, and other financial services;  
comparisons are made in relation to GATS 1998 commitments.
82  It liberalized modes 1, 2 and 4 - 
most of the time unbound under the GATS - and e xpanded its commitments in mode 3 across all 
subsectors.  In banking and financial services, Mexico  also expanded its sectoral coverage by adding 
to its liberalization schedule payment and money transmission services;  guarantees and commitments;  settlements and clearing services for fi nancial assets;  advisory  and auxiliary financial 
services;  and the provision, processing and transfer  of financial information and data.  Yet, 
liberalization vis-à-vis  Colombian suppliers remains subject to  two lists of reservations.  List A 
contains ten reservations:  two relate to insurance
83 and the rest to banking and financial services.  
List B contains 15 reservations setting conditions  for the establishment of branches of foreign 
financial institutions in Mexico, investment in  Mexican financial ins titutions, and insurance 
institutions.  Reservations in both lists relate to th e right of establishment, cross-border trade, national 
treatment and MFN treatment, and apply to modes 1 and 3.  With respect to the GATS, reservations in the Treaty are more favourable, similar or new.  For example, under the Treaty the limit on aggregate 
foreign investment participation is  higher (49 per cent instead of 40 per cent) than in the GATS for 
holding companies, multiple banking institutions, security firms, securitie s specialist, financial 
factoring companies, bonding companies and insu rance companies (excluding foreign financial 
affiliates as described in list B), while a simila r limit of 49 per cent applies for general deposit 
warehouses, financial leasing companies, foreign exchange firms, credit information companies, 
limited-purpose financial instituti ons and pension fund management  companies.  Under both the 
Treaty and the GATS, foreign investment in cr edit unions, savings an d loans companies or 
development banking institutions is not allowed.  Foreign investments by persons in a position of 
                                                      
81 Regarding exemptions to the MFN provisions und er the GATS, Mexico listed two tourism-related 
activities.  The first one refers to the supply of road tran sport services by foreign providers, which is reserved to 
United States vehicles.  The second exemption refers to a preferential tax treatment (i.e. tax reductions for 
expenses incurred in Mexican territory) for individuals attending tourism business conventions which also apply only to United States individuals. 
82 As a result of the 1998 Negotiations in Financial Services, Mexico issued a new text 
(document GATS/SC/56/Suppl.3) whic h replaced the financial services section in its 1994  GATS schedule. 
83 Mexico prohibits in certain cases  the purchase of personal or ve hicle insurances from a foreign 
insurance provider. WT/REG289/1 
Page 48  
 
  authority are not permitted neither under the Treat y nor the GATS in holding companies, multiple 
banking companies, security firms,  securities specialists, general deposit warehouses, financial leasing 
companies, financial factoring companies, foreig n exchange firms, saving and loan companies, 
investment companies and pension fund management companies.  The GATS prohibition of foreign 
investment by foreign governments and official agencies in guarantee insura nce institutions is not 
lifted vis-à-vis  Colombia.  Reservations specified in the Treaty concern for instance currency 
requirements for financial transactions and the activities of Mexican development banks
84;  these 
reservations apply to Colombia.85 
152. In the case of business services, the Treaty prov ides for full liberalization in computer and 
related services;  research and development services;  and rental and leasing services, all of which are 
restricted under the GATS.  Mexico also made fu ll commitments in real estate services, which are 
excluded from its GATS schedule.  For professional and other business services, Mexico extended its GATS commitments but maintained various reservati ons (nine in professional services and 15 in other 
business services).  In professional services, Mexico removed mainly mode 3 and 4 restrictions in accounting, architecture, engineering and medicine, and specified reservations mainly in the form of 
local presence and nationality requirements for doctors, customs brokers (also in the GATS), 
accountants, public brokers, veterinari es and lawyers.  In the case of other business services, Mexico 
made partial commitments in 11 of the 20 subsector s under the GATS.  In the Treaty, all subsectors 
are liberalized with few restrictions on fishing, agriculture, energy (oil), manufacturing, and printing and publishing services.  Most of these restrictions  apply to investments and take the form of 
nationality and performance requirements.  Only the restriction on agriculture mirrors the GATS. 
153. For communications services, Mexico liberali zed almost all postal services and the entire 
category of communication-related services, both of  which were excluded from the GATS schedule.  
In the case of postal services, the only restriction ma intained concerns the provision of first class 
postal services, which is reserved for the Mexican St ate.  Mexico also liberalized courier services by 
removing restrictions in modes 1, 3 and 4.  Additionally, it made new commitments in 
telecommunications and audiovisual services while ma intaining various restrictions especially in the 
audiovisual sector (six out of nine restrictions refe r to audiovisual services).  For telecommunications, 
the Treaty foresees the removal of restrictions in  modes 1 and 3 in value-added telecommunication 
services (except for video text services and enhan ced packet switching services) and their complete 
liberalization by 1 July 1995.  In mode 1, the Treaty does not require that the equipment and the systems providing special telecommunications system s to be located in Mexican territory, while in 
mode 3, the Treaty raises the ceiling on foreign e quity for Colombia's participation from 49 per cent 
(in the GATS) to 100 per cent.
86  The Treaty also liberalized basic telecommunications - excluded 
from the 1994 GATS schedule and partially libera lized in the 1998 GATS.  According to the 
reservations (three in total) in this sector, investments of foreign governments and state enterprises in Mexican companies providing telecommunications and transportation services is not permitted.  
Investments in air transit control, aeronautical me teorology, flight control and other air navigation 
services are reserved for Mexican nationals and comp anies (with a foreigners' exclusion clause).  
Finally, the provision of telegraphy and radiotelegra phy services is reserved for the Mexican State.  In 
the case of audiovisual, the Treaty extende d its coverage in private production of 
                                                      
84 Under the Treaty, Mexico reserves certain activities exclusively for Mexican development banks.  
These activities do not appear in the GATS. 
85 Under the Treaty, Mexico prohibits cross-border financial service providers of another Party from 
providing financial services in Mexican territory so as to avoid impairment of the conduct of Mexico's monetary and exchange rate policies.  This is not more restrictive than in the GATS, since in the latter mode 1 in financial 
services is unbound. 
86 In 1997, as a result of the Negotiations on Basic Telecommunications, Mexico supplemented its 
existing schedule of specific commitments on services by adding partial commitments on basic 
telecommunications (WTO document GATS/SC/56/Suppl.2).  WT/REG289/1 
 Page 49 
 
 
  cinematographic films and private film-screening services to modes 3 and 4, restricted under the 
GATS.  Reservations take the form of nationalit y and performance requireme nts and apply to radio 
and television services.  In the case of cable televisi on, in addition to a nationality requirement, local 
presence is required:  cable television providers need a concession which can only be granted to 
Mexican nationals and companies.87  Moreover, foreign investment in such companies is limited to 
49 per cent. 
154. As for educational services, the Treaty improve commitments by liberalizing mode 4, which 
is restricted across all subsectors under the GATS, and by adding full commitments in adult education 
services.  The only reservation under the Treaty reflect s that in the GATS in mode 3, which restricts 
foreign investment in primary, secondary and high er education to 49 per cent and requires previous 
authorization. 
155. Regarding transport services, the Treaty foresees th e liberalization of internal waterways and 
space transport services, for which no commitments exist under the GATS.  Maritime, rail and pipeline transport services - also excluded from th e GATS - are partially liberalized as they are 
subject to few local presence and national treatment limitations.  In maritime transport, 
seven restrictions limit foreign investment in co mpanies engaged in different types of maritime 
activities.  Such activities include port administratio n, the supply of piloting port services, commercial 
exploitation of vessels for inland and coastal navigation, and the provision of port services.  In rail transport services, foreign equity participation is limited to 49 per cent and crew members must be 
Mexican nationals.  In pipeline transport services, the transportation of goods other than fuels is 
reserved for Mexican nationals and enterprises.  In  addition, Mexico made broader commitments in 
the area of air and road transport services, as well as  in services auxiliary to all modes of transports 
and other transport services.  In air transportation,  the Treaty expands its sectoral coverage which 
under the GATS is limited to airport and helicopter  administration services (modes 2 and 3) and to 
supporting services (modes 1, 2 and 3).  Indeed, in the Treaty, Mexico liberalizes aircraft repair and maintenance services, computer reservation system services (both included in GATS Annex on 
Air Transport Services) and specialized air servi ces, while maintaining four reservations.  With 
respect to airport and helicopter administration ser vices, the Treaty establishes that concessions to 
build and/or operate airports and heliports can be granted only to Mexican nationals and companies, 
and foreign equity participation is  limited to 49 per cent.  Greater participation requires authorization 
from the National Commission on Foreign Investment.  In the GATS, Mexicans have priority over 
foreigners regarding concessions, and foreign equity participation is li mited to 30 per cent.  In its list 
of reservations, Mexico also limits foreign partic ipation in Mexican companies providing commercial 
air services and sets nationality requirements for its management staff.  The establishment of 
aeronautic ateliers and training centres requires a pe rmit and is reserved for Mexican nationals.  In 
specialized air services, foreign investment in Me xican companies which provide such services using 
Colombian-registered aircraft is limited to 25 per cent and nationality requirements apply to their 
management staff;  a permit is required to supply these services.
88 
156. For road transport services, the treaty also go es beyond the GATS, which covers only vehicle 
maintenance and repair services.  Reservations (i.e. fi ve in total) in this subsector take the form of 
MFN treatment, nationality and local presence requirements and apply mainly to passenger 
transportation and supporting servi ces, although progressive liberali zation is provided for in the 
Agreement.  Mexico's reservation on administrativ e services for passenger bus stations and auxiliary 
services (bus stations and terminals) establishes that Colombian investors or their investments may 
directly or indirectly hold, from 1 January 2004, up to 100 per cent participation in companies.  Also 
                                                      
87 On the basis of the WTO Services Sectoral Cl assification list, cable television services were 
classified as "audiovisual". 
88 Obtaining such a permit is subject to compliance with  Mexican rules on safety in the case of training 
flight, forest fire control, fire-fighting,  glider trailer and parachuting services. WT/REG289/1 
Page 50  
 
  the supply of local bus, school bus, taxi and co llective transportation services is reserved for 
Mexican nationals and Mexican companies (with a fo reign exclusion clause).  Concessions to build or 
manage roads, as well as to provide bridge manage ment services and auxiliary services, are reserved 
for Mexican nationals and companies.  In services  auxiliary to all modes of transports, Mexico 
liberalized cargo-handling services and storage and warehouse services - excluded from the GATS.  It 
liberalized transport agency services - also exclude d from the GATS - but maintained one reservation, 
namely the prohibition of foreign equity particip ation in custom broker's agency.  Mexico also 
expanded its commitments in other services auxiliary  to all modes of transport, which under the 
GATS were limited to weighbridge services for transpor t purposes with restrictions in modes 3 and 4.  
In this subsector, two reservations remain:  forei gn equity participation is  limited to 49 per cent in 
Mexican companies supplying fuel and lubricants for aircrafts, ships and railway equipment;  and 
specialized staff positions such as captains, pilots or machinists of ships or aircrafts, as well as port 
captains, harbour pilots, airfields commanders and customs agents are reserved for Mexican nationals 
by birth.  Finally, Mexico completely liberalized  other transport services, which under the GATS are 
limited to mode 2 in tramway and subway transport services. 
157. In construction and rela ted engineering services, as of 1999 Mexico liberalized all subsectors 
under the Treaty, with the exception of explorati on and drilling of petroleum and gas wells, pipelines 
for petroleum and its derivatives, which require an au thorization if foreign investment participation in 
non-risk contracts is larger than 49 per cent.  Compared to the GATS, Mexico extended sectoral 
coverage as it not only made full commitments in  installation and assembly work, but added new 
commitments in building completion and finishing wo rk services, construction work for buildings and 
for civil engineering, and other constr uction and related engineering services. 
158. Mexico listed five reservations on future measure s:  one horizontal and four sector-specific.  
The restrictions regard national and MFN treatme nt, local presence, and senior management and 
board of directors and apply in telecommunication, social and other business services. 
E. R
EGULATORY PROVISIONS  
1. Domestic regulation 
159. Under Article 10-14, the Parties commit to ensure that any measure adopted or maintained on 
the licensing, certification, or technical standards of service suppliers of the other Party does not constitute an unnecessary barrier to cross-border trade in services (covered by Chapter X) as provided 
in GATS Article VI.
89  To this end, measures should:  (a) be based on objective and transparent 
criteria, such as competence and the ability to s upply the services;  (b) not be more burdensome than 
necessary to ensure the quality of the services;  and (c) not constitu te a disguised restriction on the 
cross-border supply of the services. 
160. The Treaty also foresees the application of t echnical standards in services.  Chapter XIV 
presented in section III.D of this Factual Presentation la ys out the technical standards to be applied to 
goods and services (excluding phytosanitary an d zoosanitary measures in Chapter V). 
2. Recognition 
161. According to Article 10-14, the Treaty does not oblige a Party to extend to the other Party 
recognition of qualifications (i.e. licences or certifica tions) granted to another country.  In such cases, 
the Party will give an opportunity to the othe r Party to pursue discussions aiming at recognition. 
                                                      
89 It is worth mentioning that this provision applies to all the sectors covered in Chapter X, while in the 
GATS domestic regulation provisions apply only to sectors where specific commitments were undertaken.  WT/REG289/1 
 Page 51 
 
 
  162. Article 10-14 also foresees the elimination of nationality or permanent residence requirements 
to grant a licence, certificate or qualification to  professional services providers from the other Party 
following a two-year transition period from the date of  entry into force of the Treaty.  If a Party does 
not comply with this obligation in a particular sector , the other Party can:  (a) maintain an equivalent 
requirement;  (b) re-establish any federal or central  requirement previously eliminated in accordance 
with this Article or any State or department require ment in force on the date of the Treaty's entry into 
force.  In Mexico's case, nationality and residency re quirements were eliminated at federal level.  At 
present, Mexican requirements for the registration of qualifications and the issue of professional 
licences for foreigners who have studied abroad incl ude the presentation of an immigration document.  
Colombia also eliminated nationality and reside ncy requirements for professional services providers, 
with the exception of those indicat ed in the list of reservations. 
163. Annex 1 to Article 10-02 sets out the procedur es and criteria to grant recognition for studies, 
education and experience, as well as for other st andards and requirements applying to professional 
service suppliers. 
3. Balance of Payments safeguards 
164. Article 12-18 allows the Partie s to adopt or maintain, for a reasonable period of time, 
measures not conforming with the obligations provid ed in Chapter XII on Financial Services and in 
Article 17-07 on investment transfers when the application of these provisions results in economic and financial difficulties for the Party or in the ev ent of serious balance-of-payments difficulties or 
threat thereof. 
F. S
ECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  
1. Telecommunications services 
165. Under Chapter XI, the Parties reserved their rights to regulate the supply of 
telecommunication services in their territories and to  establish new rules to fulfil their national policy 
objectives.  Some of the provisions mirror those in the GATS Annex on Telecommunications, in particular those regarding the coverage, tran sparency, and the access to and use of public 
telecommunications transport networks and services. 
166. According to Article 11-03, provisions in Chapte r XI apply to (a) the supply of value-added 
telecommunication services;  (b) access to public telecommunications transport networks and services and their use by value-added services providers;  and (c) standards-related measures relating to 
interconnection between terminal or other equipment and public  telecommunications transport 
networks.  The Chapter does not apply to measures ad opted or maintained by the Parties for broadcast 
or cable distribution of radio and televi sion programming (also in the GATS Annex on 
Telecommunications), and to the supply of basi c telecommunication services.  In case of any 
inconsistency between this Chapter and any other Ch apter in the Treaty, this Chapter will prevail to 
the extent of the inconsistency. 
167. Article 11-03 also provides that no provi sion shall be interpreted so as to: 
(a) Require a Party to authorize a person from  another Party to establish, build, acquire, 
lease, operate, or provide telecommunications transport networks or services; 
(b) require a Party - or any person - to estab lish, build, acquire, lease, operate or provide 
telecommunications transport networks or services that are not offered to the public 
generally; WT/REG289/1 
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  (c) prevent any Party from prohibiting pers ons operating private networks from using 
them to provide public telecommunication ne tworks or services to third persons;  and 
(d) require any Party to compel any person e ngaged in the broadcast or cable distribution 
of radio or television programming to make  available its infrastructure as a public 
telecommunications transport network. 
168. The Parties agree under Article 11-04 to ensure that any service provider from the other Party 
has access to, and can use, any public telecommunications transport network or service to supply 
value-added services under reasonabl e and non-discriminatory terms and conditions.  This mirrors the 
obligations in the GATS Annex on Telecommunications .  The Parties will also ensure that persons 
from the other Party have access to and can use pu blic telecommunication transport networks and 
services to broadcast information in their territory or across their borders as long as it is for private 
and exclusive use, without providing services to th ird persons and using au thorized international 
entities to provide basic international services (Art icle 11-04).  If necessary, the Parties can apply 
measures on the supply of telecommunication services to  safeguard security and the confidentiality of 
messages.  However, such measures should not be a pplied in a discriminatory or unjustifiable way or 
act as a disguised restriction on trade in services. 
169. The access and use of public telecommunication transport services and networks does not 
imply authorization to supply these services, which in all cases require an authorization.  The Parties 
will ensure that no additional requirements ar e imposed on the access to and use of public 
telecommunications networks or services, other than  that necessary to (a) safeg uard the public service 
responsibilities of providers of public telecommunicati ons transport networks or services;  (b) protect 
the technical integrity of public telecommunications tr ansport networks or services;  and (c) to ensure 
that services providers from the other Party s upply value-added services only when they are 
authorized to.  Finally, under Article 11-04 the Pa rties can impose restrictions on access to and use of 
public telecommunication transport services and netw orks, that are reasonable, non-discriminatory 
and necessary to strengthen public telecommun ication facilities, their capacity to provide 
telecommunications services and to increase participation in international trade in services. 
170. Article 11-05 describes the conditions for the s upply of value-added services.  The Parties 
shall ensure that: 
(a) Any procedure for obtaining a licence, permission, registration or notification to 
supply such services is transparent and non-discriminatory, and that the applications are considered within the shortest delay;  and 
(b) the information required is limited to that necessary to prove the financial and 
technical reliability of the provider to supply the service and that the applicant's services, terminal and equipment comply with the standards or technical regulations required by the Party. 
171. Moreover, neither Party will require private supplie rs to:  (a) provide its service for public use 
when such services have been ordere d by specific users;  (b) cost-justif y its prices;  (c) interconnect its 
network with a client or network;  or (d) comply with any particular standard or technical regulation 
(except for interconnection to a public telecommunica tions transport network).  The Parties may ask 
a service supplier to provide information on its prices if  the provider is considered to be acting in an 
anti-competitive way (Article 11-05). 
172. Chapter XI also foresees that each Party shall ensure that standards-related measures relating 
to the attachment of terminal equipment or other equipment or system to the public 
telecommunications transport networks are intende d to prevent technical damage, interference or  WT/REG289/1 
 Page 53 
 
 
  malfunctioning of the public telecommunication ne twork and service and billing equipment, as well 
as to ensure customer safety and access to public telecommunications transport networks or services 
(Article 11-06). 
173. Under Article 11-07, the Parties will ensure that an agent enjoying a monopoly position in 
public telecommunications networks  and services and competing - either directly or through an 
affiliate - in the provision of telecommuni cations goods, value-added services or other 
telecommunications-related services, will not use hi s dominant position to undertake anti-competitive 
practices that will disadvantage a person from the other Party.  Th e Parties can introduce measures to 
prevent such anti-competitive business practices. 
174. In accordance with GATS Annex on Telecommunications, the Parties agree to make 
publically available the information regarding the access to public telecommunications services and 
networks and its use, including information on ra tes, users terms and conditions, specifications of 
technical interfaces with such networks and servi ces, the bodies responsible for the preparation and 
adoption of standards affecting such access and use, the conditions applied to the attachment of any 
equipment to the public telecommunication network,  and any notification, registration, licensing or 
permits requirement (Article 11-10). 
175. Finally, the liberalization schedule for value- added services is presented in Article 11-12.  
Following the entry into force of the Treaty, each  Party will allow the cross-border provision of 
value-added services, and the investment, up to 10 0 per cent, from persons or enterprises, including 
state firms from the other Party, on existing firms or to  be established in the Parties' territory to supply 
value-added services.  In both cases video text services and enhanced packet switching services were 
excluded temporarily;  as provided for in the Treaty, these restrictions were eliminated as of 
1 July 1995. 
2. Financial services 
176. Chapter XII on financial services applies to (a) financial institutions of the other Party;  
(b) investors of the other Party, and their investments,  in financial institutions in the Party's territory;  
and (c) cross-border trade in financial services.  The Chapter does not cover activities or services 
forming part of a public retirement plan or social security system, the use of financial resources of the Party and activities or services conducted for the account , or with the guarantee, of the Party or its 
public entities.  The Parties commit to gradually liberalize, through successive negotiations, all their 
restrictions on financial services to reach economic complementarity among them.  If an inconsistency arises between this Ch apter and any other provision in the Treaty, the provisions in this 
Chapter will prevail.  Articles 17-08 on expropriatio n and compensation, 17-09 on special formalities 
and information requirements and 17-13 on envi ronment-related measures in the Chapter on 
Investments are also integral parts of this Chapter (Article 12-02). 
177. With regard to cross-border trade, the Parties commit to not increase the degree of 
inconsistency of existing measur es regarding to cross-border financial services following the entry 
into force of the Treaty.  Each Party will also allo w persons located in its te rritory, and its nationals 
wherever located, to purchase financial services from cross-border financial service suppliers of the 
other Party located in that territory.  However, th is does not imply that a Party is obliged to permit 
these suppliers to do business or solicit in its territory .  Finally, the Parties can request registration of 
cross-border financial service suppliers of the other Party and of financial instruments. 
178. Under this chapter, the Parties recognise the right of financial services providers from a Party 
to establish a financial institution in the territory of the other Party in accordance with the modalities 
provided for in that national legislation (Article 12-04). WT/REG289/1 
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  179. In addition, the Parties will allow financial in stitutions of the other Party to supply any new 
service that the Party would permit to its own financ ial institutions.  The Par ties reserve the right to 
decide the institutional and juridical form employ ed to supply such services and to establish an 
authorization requirement (Article 12-13).  The Treat y prohibits restrictions on the nationality or the 
residency of the staff of a financial institution,  in the case of senior management, the board of 
directors or any other essential personnel (Article 12-14).  Also, under the Treaty, the Parties shall 
permit all transfers relating to the investment in a Part y's territory of an investor of the other Party to 
be made freely and withou t delays (Article 12-17). 
180. The Parties agree in Article 12-15 to establish within eight months following the entry into 
force of the Treaty a list of reservations regarding the right of financial institutions to establish in 
a Party's territory (Article 12-04), cross-border tr ade (Article 12-05), nati onal (Article 12-06) and 
MFN (Article 12-07) treatment as well as restric tions on the nationality and residency requirements 
for senior management (Article 12-14).  Such a list,  included in Decision No 11 of the Administrative 
Commission, is described in section IV.D.2.b of this Factual Presentation.  The list was replaced in 2001 by a new protocol issued with Decision No. 35. 
181. With regard to exceptions, the Parties can adopt  or maintain prudential measures (including 
transfer restrictions) to protect investors, depositors , claimants or persons to whom a fiduciary duty is 
owed by a financial institution or a cross-border fina ncial service provider;  and to ensure the integrity 
and stability of the financial system (Article 12-09). 
182. For the purpose of transparency, the Parties co mmit to release or inform in written form 
stakeholders on any new adopted measure  on financial services (Article 12-10). 
183. The Treaty foresees the creation of a Committee on  Financial Services (Article 12-11);  the 
Committee was created in September 1997 in Decision No. 20 of the Administrative Commission (see 
paragraph 200200 below for the details). 
V. GENERAL PROVISIONS  OF THE TREATY 
A. T
RANSPARENCY  
184. For the purpose of transparency , Chapter XXI describes the provisions regarding the Parties' 
focal points, the publication and provision of information, as well as those guaranteeing hearings, legality and due process. 
185. Under Article 21-01, each Party will designate a contact point to facilitate communication 
between the Parties on any matter covered by the Treaty.   At the request of a Party, the contact point 
of the other Party will indicate the office or offici al responsible for the matter and assist, as necessary, 
in facilitating communication with the requesting Party. 
186. The Parties will also ensure that their la ws, regulations, procedures and administrative 
decisions with respect to any matters under the Treat y are published promptly or made available to the 
Parties and interested persons.  Each Party will no tify, to the extent possible, any measure that the 
Party considers can affect or be of interest to  the other Party under the Treaty.  A Party will, upon 
request by the other Party, provide information a nd respond to questions pertaining to any measure, 
whether or not the requesting Party has been previous ly notified of that measure.  Any notification or 
information provided under this Article shall be  without prejudice to whether the measure is 
consistent with this Agreem ent (Articles 21-02 and 21-03). 
187. Under Article 21-04, the Parties confirm the gua rantees of hearings, legality and due process 
provided for in their respective legislations.  They also commit to ensure th at in any administrative  WT/REG289/1 
 Page 55 
 
 
  and judicial proceeding related to any measure affecting the Treaty, the essential procedural 
formalities are observed, and the motiva tion and legal grounds are established. 
B. CURRENT PAYMENTS AND CAPITAL MOVEMENTS  
188. The Treaty does not include a specific provision regarding payments and capital movements 
for goods, but it does for financial services and inv estment.  Under Article 12-17, the Parties shall 
permit all transfers relating to the investment in a Part y's territory of an investor of the other Party to 
be made freely and without delays.  However, para graph 3 of Article 12-09 authorizes limitations on 
transfers from a financial institution or a cross-borde r supplier of financial ser vice to a related person 
or company for prudential reasons. 
189. As regards investment, Article 17-07 provides fo r freedom of transfer similar to that under 
Article 12-17.  Similarly, limitations on investment transfers are possible in cases of bankruptcy, 
insolvency or protection of creditor's rights;  dealing in securities;  criminal or penal offenses;  reports 
of transfers of currency or other monetary instru ments;  ensuring the satisfaction of judgments in 
adjudicatory proceedings;  and in the event of ser ious balance-of-payments difficulties or threat 
thereof. 
C. EXCEPTIONS  
190. Article XX (General Exceptions) of the GATT 1994 and its interpretive notes is incorporated 
into the Treaty for the purposes of Chapters III to IX, except for provisions on investment or services 
and of Article XIV, except for provisions on ser vices (Article 22-01).  As far as services-related 
provisions are concerned, nothing in Chapters III to IX and Chapter XIV, as well as in Chapters X and 
XI (as a whole) shall preclude the Parties from adopting or applying measures to ensure the 
enforcement of laws or rules that are incompatible with the Treaty.  Such measures should not 
constitute a mean of arbitrary discrimination or di sguised restriction on trade between the Parties. 
191. To protect the Parties' essential security interest s, nothing in the Treaty shall be interpreted as 
requiring a Party to provide or allow access to c onfidential information contrary to its security 
interests (Article 22-02).  The Treaty also permits under Article 22-02, the application of measures 
necessary to protect a Party's essential security interests90 and to fulfil its obligations in accordance 
with the United Nations Charter on the main tenance of international peace or security. 
192. Under the Treaty, the Parties are not obliged  to furnish or allow access to confidential 
information whose disclosure could impede law en forcement or be contrary to a Party's laws 
protecting personal privacy, financ ial affairs and accounts of individual customers of financial 
institutions, among others. 
D. ACCESSION AND TERMINATION  
193. The Treaty may be acceded to by any country or group of countries in Latin America and the 
Caribbean, subject to negotiations (Article 23-07). 
194. Either Party can terminate the Treaty.  Such termination will take effect 180 days91 after 
notification to the other Party and the LAIA Genera l Secretary and will not affect the application of 
the Treaty between the remaining Parties (Article  23-08).  As indicated previously, Venezuela's 
withdrawal from the original G-3 Treat y became effective on 19 November 2006. 
                                                      
90 Including trade on arms and military equipment;  war and other emergency situations and the 
non-proliferation of nuclear weapons or other nuclear explosive devices. 
91 The Parties may agree on another period of time. WT/REG289/1 
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  E. I
NSTITUTIONAL FRAMEWORK  
195. The paragraphs below describe some of th e bodies created under the Treaty;  some other 
bodies have been referred to elsew here in this Factual Presentation.92 
196. The Treaty's main body is the Administrativ e Commission, established in accordance with 
Article 20-01.  The Commission consists of the repr esentative of Colombia's Ministry of External 
Commerce (today the Ministry of Commerce, Industry and Tourism) and of Mexico's Secretariat of 
Commerce and Industrial Development (today the S ecretary of Economy), or their designees.  The 
Commission is responsible for enforcing and im plementing the Treaty;  assessing its results;  
monitoring developments and sugg esting modifications;  seeking to resolve disputes that may arise 
according to Chapter XIX;  supervising the wo rk of all the Committees and Working Groups 
established under this Treaty which will report to th e Commission;  monitoring practices and policies 
related to prices in specific sectors to identify any dist ortion that may affect trade between the Parties;  
recommending measures needed for the implementation of its decisions;  and any other matter that 
may affect the operation of the Agreement.  As foreseen in the Treaty, the Commission established its 
own rules and procedures (in its Decision No. 1of 13 August 1996);  all its decisions are to be taken 
by consensus.  The Commission is to meet at le ast once a year, and will be chaired successively by 
each Party. 
197. In November 2000, the Treaty's Administra tive Sub-Commission was established through 
Decision No. 28 of the Administrative Commission.  The Sub-Commission has a surveillance role as 
regards commitments under the Treaty and the work of the various bodies established under the 
Treaty;  it also provides technical expertise for de cision-making.  The Sub-Commission is to meet at 
least twice a year. 
198. In October 1995, the Administrative Commis sion established in Decision No. 4 a Committee 
on Trade in Goods and a Working Group on Intellectua l Property.  Both bodies are to meet at least 
once a year, they are responsible for ensuring the correct application and administration of their 
relevant issues (in Chapters III and XVIII, respec tively) as well as examine proposals to modify and 
deepen existing disciplines and commitments. 
199. The Working Group on Rules of Origin (Article 6-11 ), which is to meet at least twice a year 
or at the request of a Party, aims at ensuring the effective implementation and administration of the chapter, as well as the implementation of any agr eed change.  The Committee on Regional Integration 
of Inputs (CIRI, Article 6-20), composed of represen tatives of the public and private sector, aims at 
evaluating the difficulties faced by producers (in the sect ors of chemical and plastics, textiles, copper 
and aluminium) in accessing certain materials needed for the production of final goods, for export to 
the other Party, under appropriate conditions (in terms of opportunity, volume, quality and price).
93  
The CIRI was established for an initial period of  ten years, and in accordance with the Treaty's 
provisions, in 2005 was extended for an additional ten years.94  Articles 6-22 to 6-25 state how the 
investigating role of the CIRI is to be implemen ted following a request from a Party, and the required 
                                                      
92 In total there is one Sub-Commission, 11 Comm ittees (Automotive Sect or (Article 4-03), 
Agricultural Trade (Article 5-10), Phytosanitary and Zo osanitary Measures (Article 5-29), Sugar Analysis 
(Annex 3 to Article 5-04), Financial Services (Article 12-11), Standardization Measur es (Article 14-17), Micro, 
Small and Medium Industries (Article 15-22), Procurem ent (Article 15-25), Competition (Article 16-03), State 
Enterprises Practices (Article 16-0 3) and Trade in Goods), one Sub-Committee on Standardization of 
Health-Related Measures (Article 14-17) and six working groups (Technical Rules and Agricultural Trade 
(Article 5-09), Rules of Origin (Article 6-17), Cust oms Procedures (Article 7-11), Professional Services 
(Annex 1 to Article 10-02), Temporary Entry (Article 13-06) and on Intellectual Property. 
93 Products of HS Chapters 28, 29, 34, 38, 39, 54, 55, 74, 76 and 85, as listed in the Annex to 
Article 6-21. 
94 Decision No. 44 of the Administrative Commission.  WT/REG289/1 
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  follow-up with the Treaty's Commission.  Rules relati ng to the operation of the Committee, due to be 
agreed by 1 January 1995, were finally agreed in November 2006, pursuant to Decision No. 46 of the Treaty's Administrative Commission, and entered into force on 1 March 2007. 
200. The Committee on Financial Services (Article  12-11) has as main tasks to monitor the 
application of the provisions in this Chapter, to cons ider any issues submitted by the Parties, to help to 
resolve any dispute that may arise between the Part ies (Article 12-19) including investment disputes 
(Article 12-20), to facilitate the exchange of inform ation between supervising authorities of each Part, 
and to advise the Parties regarding prudential measu res, harmonization of standards, as well any other 
related-policies.  The Committee will meet at least once a year to assess the functioning of the Treaty 
concerning financial services. 
201. The Treaty creates a Working Group on Temporar y Entry (Article 13-06) which will meet at 
least once a year to examine the application of Ch apter XIII, the elaboration of measures aimed at 
facilitating the temporary entry of business pers ons, waivers of work certificates for spouses of 
business persons or other procedures having similar effect, and proposals on changes or amendments 
to that Chapter. 
202. The Committee on Standardization Measures (Article 14-17), which consists of 
representatives from each Party's competent authorities, is required to convene at least once a year, but also at the request of a Party or in the event of an emergency.  Where a Party needs clarification 
on the interpretation or application of the Chapter's provisions, it shall request consultations within the 
Committee or the dispute settlement body established under the Treaty (Article 14 18). 
203. Two bodies are created in relation to govern ment procurement, namely a Committee on 
Procurement (Article 15-25) res ponsible for updating the list of entities and recommending the launch 
of negotiations aiming at further liberalizing the Parties' government procurement, and a Committee 
on Micro, Small and Medium  Industry (Article 15-22). 
F. D
ISPUTE SETTLEMENT  
204. Chapter XIX of the Treaty describes the mech anism for the settlement of disputes between 
the Parties, while Chapter XVII (Section B) depicts the one for the settlement of disputes between an 
investor of a Party and the other Party (investment disputes). 
205. According to Chapter XIX, the Parties will e ndeavour to achieve a mutually satisfactory 
solution to any dispute arising from the inte rpretation and the application of the Treaty 
(Article 19-01).  The Chapter applies to:  (a) disputes related to the interpretati on or application of the 
Treaty;  and (b) measures of a Party that are consider ed to be inconsistent with the Treaty by the other 
Party or would cause nullification or impairment of any benefit that a Party could reasonably expected 
from Chapters III to IX (excep t for investments in the Auto motive sector), Chapter X and 
Chapters XIV to XVI (Article 19-02 and its Annex).  Chapter XIX applies even  when the Parties refer 
to Article 22-01 on General Exceptions, unless the general exception regards cross-border trade 
(Annex to Article 19-02).  For any disputes with r espect to the obligations under the Treaty and the 
WTO, the Parties may select the forum in which to  settle the dispute.  Once the forum has been 
selected, it must be used to the exclusion of others (Article 19 03). 
206. The dispute settlement mechanism provides for c onsultations (Article 19-05), intervention of 
the Administrative Commission (Article 19-06), and establishment of an Arbitral Tribunal (AT) (Article 16.09) which will examine the case and present a final report to the disputing Parties.  According to Article 19-05, a Party can request, in writing, consultations with the other Party on any 
measure adopted or any other matter that it consider s might affect the operation of the Treaty.  The 
requesting Party will deliver the request to the nationa l bodies of the other Party.  If the Parties fail to WT/REG289/1 
Page 58  
 
  reach an agreement through consu ltations, they can request in writing, within 45 days of the 
submission of the request for consultation, the in tervention of the Commission.  A Party can also 
request a meeting of the Commission where techni cal consultations according to Articles 5-30 and 
14-18 have been held.  The Commission will meet w ithin ten days and in order to reach a mutually 
satisfactory solution it can (a) call technical advisers or create working or expert groups;  (b) have 
recourse to good offices, conciliation, mediation, or ot her dispute settlement procedures;  or (c) make 
recommendations.  If the Commission fails to resolve the dispute within 45 days, a Party can request 
in writing, the establishment of an AT. 
207. The Commission will establish a list of individuals (up to 30 individuals) qualified to be 
arbitrators (Article 19-08) and AT'S rules of pr ocedure (Article 19-12).  The AT will consist of 
five members, selected from the list set out by the Administrative Commission and by the Committee 
on Financial Services in the case of disputes related to Chapter XII.  The AT will issue a preliminary 
report within 90 days from the date the last arbitr ator was designated;  comments from the Parties can 
be submitted within 14 days of its submission.   The AT will present its final decision to the 
Commission within the 30 days following the submissi on of the preliminary report;  such decision is 
binding on the Parties and must be implemente d in accordance with the terms and conditions 
established therein (Article 19-16).  The complain ing Party may suspend the benefits granted under 
the Treaty to the other Party when the AT consider s that a measure is incompatible with the Treaty 
and the Party complained against does not comply with the final decision;  or a measure causes 
nullification or impairment (Annex to Article 10 -02) and the Parties do not reach a mutually 
satisfactory solution (Article 19-17).  The suspension of benefits will last until the Party complained 
against complies with the ATl's final decision or th e Parties find a mutually satisfactory solution.  
Upon request by a Party, the Administrative Comm ission will establish an AT to determine whether 
the level of benefits suspended is excessive;  a fina l decision is to be submitte d within 60 days from 
the AT's constitution or by any other deadline establi shed by the Parties (Article 19-17).  Table V.1 
summarize the procedures under the Treaty's dispute settlement mechanism. 
208. In case of a dispute between the Parties rega rding the Financial Services Chapter, the 
Committee on Financial Services will establish a lis t of individuals (up to 15), who have the 
competencies to act as arbitrators in the AT whic h will rule the case accord ing to Article 12-19 and 
Chapter XIX (on Dispute Settlements).  In the case of a dispute between an investor and a Party, the 
procedures regarding the resolution of the disput e will be given by Chapter XVII on Investments 
(i.e. Section B and Article 17-16).  If the defendant  claims any of the exceptions under Article 12-09, 
the AT will refer the case to the Fina ncial Services Committee for a decision.  WT/REG289/1 
 Page 59 
 
 
  Table V.1.  Dispute Settlement Mechanism under the Treaty 
 
 Technical advice requested (Art. 19-06: 4(a)) 
Good offices, conciliation, mediation (Art. 19-06: 4(b))
Issue of recommendations (Art. 19-06: 4(c))  Consultations 
  Art. (19-05)   Technical consultations  (Art. 5-30 and 14-18) 
Max. 45 days Referral to Commission (Art. 19-06) 
Meeting of the Commission within 10 daysMax. 30 days
Request for establishment of AT (Art. 19-07) 
Preliminary AT report (Art. 19-14:1) Max. 30 days  
90 daysComposition of AT (Art. 19-09)
14 days
Max. 16 days  Comments by the Parties (Art. 19-14:2)
 Final AT report transmitted 
to the Commission (Art. 19-15) Max. 30 days  
Publication  (Art. 17-03) 15 days
Implementation (Art. 19-16) Time frame as AT decisio n
If compliance/agreemen t 
 Suspension of benefits 
by the Complaining Party until the 
decision implemented  
(Art. 19-17: 2) If non-compliance/agreement  
 Termination   
 Recourse to AT by the other Party
(Art. 19-17: 4)
60 days from constitution of AT 
AT's Final decision (Art. 19-167) WT/REG289/1 
Page 60  
 
  209. The mechanism for the settlement of disputes be tween an investor of a Party and the other 
Party, which is set forth in Chapter XVII (Sec tion B), aims at ensuring equal treatment among 
investors of the Parties in accordan ce with the principle of international reciprocity and international 
law.  The mechanism applies to claims resulting from a breach of an obligation in Chapter XVII and 
does not prevent, in any case, the claimant and th e respondent from resolving the dispute through 
consultation and negotiation.  A claim by an invest or (on its behalf or a company) qualifies for the 
arbitral procedure if the investor has incurred a lo ss or damage by reason of that breach and if the 
breach is not older than three years (Article 17-17).  If this is the case, the investor can submit the 
claim, provided that it has informed the respondent of its intentions and that at least six months have 
passed since the breach took place.  The claim will be  submitted according to the rules and procedures 
of the International Centre for Settlement of Investment Disputes (ICSID) (if both Parties are 
signatories to the ICSID Convention), the Unite d Nations Commission on International Trade Law 
(UNCITRAL) arbitration rules, or any other arbitra tion institution or rules agreed between the Parties 
(Article 17-18).
95  Any Tribunal established under this Chapte r will decide on the disputed issues in 
accordance with the Chapter and app licable rules of international law (Article 17-20).  When a final 
award has been made by the tribunal against a respondent, it can only award monetary damages and 
any applicable interest or property restitution.  If the claim is by an investor on behalf of a company, the award is to be made to the enterprise (Article  17-21).  If a disputing Party fails to abide by or 
comply with a final award, the Party whose investor  was a party to the arbitration may have recourse 
to the dispute settlement procedure under Chapter XIX (Article 17-23). 
210. The Annex to Article 17-16 describes all the proc edural steps from the notice to intent to 
submit a claim to arbitration to the decision and enforcement of an award.  The Annex includes 
provisions regarding the conditions preceding the submi ssion of a claim to arbitration;  the number of 
arbitrators and method of appointment;  the constitution of a Tribunal when a party fails to appoint an arbitrator or the disputing Parties are unable to  agree on a presiding arbitrator;  consent to the 
appointments of arbitrators;  consolidation of mu ltiple claims;  communication/notice;  Parties' 
participation;  documents;  place of arbitration;  th e interpretation of annexes;  provisional and interim 
measures;  and general matters. 
G. R
ELATIONSHIP WITH OTHER TREATIES CONCLUDED BY THE PARTIES  
211. Under Article 1-02, the Parties reaffirm their existing rights and obligations with respect to 
each other under the WTO Agreement, the Treaty of  Montevideo of 1980 (t he LAIA Treaty) and 
other international treaties and agr eements ratified by the Parties.  In case of any inconsistency 
between the Treaty and those mentioned above, th e Treaty will prevail to the extent of the 
inconsistency. 
212. Colombia is a member of the Andean Comm unity (CAN), which includes the Plurinational 
State of Bolivia, Ecuador and Peru;  Vene zuela was a founding member but withdrew on 
22 April 2006.  CAN's main objectives include the cr eation of a free trade area and a customs union;  
the Andean free trade area was fully in force on 1 Ja nuary 2006.  When Venezuela officially withdrew 
from CAN, trade relations between Colombia (and the other CAN members) and Venezuela 
proceeded to be governed by the provisions of  Article 135 of the Cartagena Agreement, which 
establishes that once a Member country has communicated its denouncement, the rights and 
obligations deriving from its status as a Member shall cease, with the exception of the benefits 
received and granted in accordance with the S ubregional Liberalization Programme, which shall 
remain in effect for a period of five years following the denouncement96;  this period ended on 
                                                      
95 No claim shall be made if it has already been submitted to an administrative or judicial tribunal in the 
complaining Party, or any other binding dispute settlement procedure (Article 9-17). 
96 See the Memorandum of Understanding, adopted afterwards as Andean Community Decision 
No. 641, which can be viewed online at http ://www.comunidadandina.org/normativa/dec/D641.htm.  WT/REG289/1 
 Page 61 
 
 
  April 2011.  However, as at December 2011, Ve nezuela continues to grant these preferences 
unilaterally (Venezuelan Decree No. 8160 a nd 8529 of 2011), and Colombia, pursuant to 
CAN Decision No. 756 has decided to enter into a reciprocity commitment with Venezuela and will grant the same tariff advantages insofar as they ar e granted by Venezuela, which include the entire 
tariff universe. 
213. With regard to services, the Andean Community  adopted an open-sky policy in the subregion 
followed by a framework for libera lization of trade in services in 1998;  the framework established an 
inventory of existing restrictions on trade in services, and negotiations of modalities for their 
elimination (Decisions No. 439, 510 and 659 of the Administrative Commission).
97  Decision No. 659 
of December 2006 provides mechanisms for the liber alization of trade in services in the subregion;  
decisions relating to the regime that would regulate the liberalization of trade in financial services and 
television services, in particular in relati on to viewing share, were postponed until 
30 September 2007.  As at December 2011, there are no disciplines relating to financial services, and 
negotiations on this  matter continue. 
214. The trade relationship between Mexico and MERCOSUR is based on a three tier system 
composed of bilateral agreements between Mexi co and each of the MERCOSUR countries on trade in 
goods, an agreement between Mexico and ME RCOSUR regulating automotive products and 
a framework agreement (LAIA's AAP.CE No. 54) provid ing for the establishment of a free-trade area;  
once the framework becomes operational and the FTA implemented, the other bilateral and sectoral 
agreements are to be discontinued. 
215. In addition to LAIA's general margins of pr eference (see paragraph 21 above), an additional 
preferential scheme of relevance to the countries concerned is the agreements concluded between 
LAIA members and non-members.  These agreements are authorized by Article 25 of the Treaty of 
Montevideo, which also require that any preference s granted under these agreements be automatically 
extended to LAIA member countries of "relativel y lower economic development" (RLED) - namely 
the Plurinational State of Bolivia, Ecuador and Pa raguay.  That means that Colombia and Mexico 
extend preferences granted under respectively four and two RTAs to these three countries. 
216. Table V.2 lists the notified and non-notified RTAs  in force for Colombia and Mexico.  The 
RTAs listed are contractual agreem ents providing preferential treatment , irrespective of coverage and 
whether only provided by one of the parties to the ag reement.  Both Parties ha ve agreements in force 
that have not been notified to the WTO with ag reements under the LAIA umbrella constituting the 
majority of these RTAs. 
Table V.2:  Colombia and Mexico:  Part icipation in other RTAs (notified and no n-notified in force), as of October 201198 
Partner / Treaty with Date of entry 
into force Type of Treaty GATT/WTO Notification 
Year WTO Provision 
Colombia 
Chile (AAP.CE No. 24) 08.05.09 Goods & Services 2009 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 
EFTA 01.07.11 Goods & Services Non notified  
                                                      
97 These can be found at http://www.comunidadandina.org/normativa.htm . 
98 For those agreements negotiated under the LAIA framework, the LAIA reference is included in 
brackets.  Details of these agreements can be found at:  http://www.aladi.org/nsfaladi/text acdos.nsf/vpaises/colombia  and 
http://www.aladi.org/nsfaladi/te xtacdos.nsf/vpaises/mexico . WT/REG289/1 
Page 62  
 
  Partner / Treaty with Date of entry 
into force Type of Treaty GATT/WTO Notification 
Year WTO Provision 
Canada 15.08.11 Goods & Services Non notified  
North Triangle (El Salvador, 
Guatemala and Honduras) 27.03.10 (H) 
01.02.10 (ES) 
12.11.09 (G) Goods & Services Non notified  
Andean Community 14.12.06 Services Non notified  
Andean Community (except Peru) 
-MERCOSUR (AAP.CE No. 59) 05.01.05 Goods Non notified  
Cuba (AAP.CE No. 49) 10.07.01 G oods, partial scope Non notified  
Panama (AAP.A25TM No. 29) 01.01.95 Goods, partial scope Non notified  
CARICOM (AAP.A25TM No. 31) 01.01.95 Goods, partial scope Non notified  
LAIA (AR.CEYC No. 7) 1.1.89 Goods, partial scope Non notified  
Costa Rica (AAP.A25TM No. 7) 1985ª Goods, partial scope, 
unilateral preferences 
from Colombia Non notified  
Nicaragua (AAP.A25TM No. 6) 1985ª Goods, partial scope, 
unilateral preferences 
from Colombia Non notified  
LAIA, with the exception of 
Mexico (AAP.AG No. 2) ᵇ Not available Goods, partial scope:  
seeds Non notified  
Paraguay (AR.AM No. 3) ᵇ Not available Goods, partial scope, 
unilateral preferences 
from Colombia Non notified 
  
Ecuador (AR.AM No. 2) ᵇ Not available Goods, partial scope, 
unilateral preferences 
from Colombia Non notified 
  
Bolivia (AR.AM No. 1) ᵇ Not available Goods, partial scope, 
unilateral preferences 
from Colombia Non notified 
  
Mexico 
Japan 01.04.05 Goods & Services 2005 GATT Art. XXIV & GATS V 
EFTA 01.07.01 Goods & Services 2001 GATT Art. XXIV & GATS V 
Honduras (North Triangle) 01.06.01 Goods & Se rvices 2006 GATT Art. XXIV & GATS Art. V
El Salvador (North Triangle) 15.03.01 Goods & Services 2006 GATT Art. XXIV & GATS Art. V
Guatemala (North Triangle) 15.03.01 Goods & Se rvices 2006 GATT Art. XXIV & GATS Art. V
EC 01.07.00 
01.10.00 Goods 
Services 2000 
2002 GATT Art. XXIV 
GATS V 
Israel 01.07.00 Goods 2001 GATT Art. XXIV 
Chile (AAP.CE No. 41) 01.08.99 Goods & Services 2001 GATT Art. XXIV & GATS V 
Nicaragua 01.07.98 Goods & Services 2005 GATT Art. XXIV & GATS V 
Costa Rica 01.01.95 Goods & Services 2006 GATT Art. XXIV & GATS V 
NAFTA 01.01.94 Goods 1993 
1995 GATT Art. XXIV 
GATS V 
GSTP 19.04.89 Goods 1989 Enabling Clause 
LAIA 18.03.81 Goods, preferences and 
framework 1982 Enabling Clause 
PTN 11.02.73 Goods 1971 Enabling Clause 
Bolivia (AAP.CE No. 66) 07.06.10 Goods Non notified  
MERCOSUR (AAP.CE No. 55) 05.01. 06 Goods, partial scope:  
automotive Non notified   WT/REG289/1 
 Page 63 
 
 
  Partner / Treaty with Date of entry 
into force Type of Treaty GATT/WTO Notification 
Year WTO Provision 
Uruguay (AAP.CE No. 60) 15.07.04 Goods & Services Non notified  
Guatemala ᶜ and El Salvador 
 29.01.04 (ES) Goods & Services, partial 
scope:  natural gas Not notified  
(AAP.A25 No. 37) 02.05.03 Goods, partial scope Non notified  
Brazil (AAP.CE No. 53) 28.02.01 G oods, partial scope Non notified  
Cuba (AAP.CE No. 51) 01.01.89 G oods, partial scope Non notified  
LAIA (AR.CEYC No. 7) 26.05.87 Goods, partial scope Non notified  
Ecuador (AAP.R No. 29) 06.08.87 G oods, partial scope Non notified  
Ecuador (AR.AM No. 2) 06.08.87 Goods, partial scope, 
unilateral preferences 
from Mexico Non notified 
  
Peru (AAP.CE No. 8) 01.01.87 Goods Non notified  
Argentina(AAP.CE No. 6) 24.04.86 Goods, partial scope, 
unilateral preferences 
from Mexico Non notified  
Paraguay (AAP.R No. 38) 01. 07.84 Goods, partial scope, 
unilateral preferences 
from Mexico Non notified  
Paraguay (AR.AM No. 3) 01.07.84 Goods, partial scope, 
unilateral preferences 
from Mexico Non notified  
Panama (AAP.A25 No. 14) 01.05.83 Goods, partial scope, Non notified  
 
"Partial scope" agreements are those RTAs not providing for the establishment of a free-trade area and/or providing for 
a limited coverage. 
 
a Colombia states the following:  "The Agre ements with Costa Rica and Nicaragua were brought into effect by National Decree in 
1985.  We have no evidence of the bringing into effect of these agreements by those countries". 
b Colombia states the following:  "With regard to the Agreements LAIA AAP.AG No. 2, Paraguay AR.AM No. 3, Ecuador AR.AM 
No. 2 and Bolivia AR.AM No. 1, it is hoped that they are covered by the current most in-depth instruments regulating bilateral trade 
relations." 
c Guatemala has not formalized its entry into force.  
Source : WTO Secretariat. 
 
EFTA: European Free Trade Area. 
GSTP: Global System of Trade Preferences. 
LAIA: Latin American Integration Association. 
NAFTA: North American Free Trade Agreement. 
PTN: Protocol relating to Trade Nego tiations among developing countries. 
AAP.A25: Agreements under Article 25 of the Montevideo Treaty.  Agreements providing that preferences granted to 
non-LAIA Latin American countries ar e automatically extended to LAIA's  member countries of "relatively 
lower economic development"(RLED), namely the Plurinational State of Bolivia, Ecuador and Paraguay. 
AAP.AG: Agreements under Article 12 of th e Montevideo Treaty on Agricultural Goods. 
AAP.CE: Economic Complementarity Agreements. 
AAP.R: Agreement on the Renegotiation of the Historical Heritage. 
AR.AM: Market Opening Agreements.  The Agreement is amongst all LAIA members, but  preferences are only given 
to RLED country. 
AR.CEYC: Agreements on Cooperation and Exchange of Cultural Goods. WT/REG289/1 
Page 64  
 
  H. G
OVERNMENT PROCUREMENT  
217. None of the Parties are signatories to the WTO Government Procurement Agreement;  
Colombia has however observer status in  the Agreement since February 1996. 
218. Government procurement aspects are addressed in Chapter XV.  The scope of the chapter is 
defined in Article 15-02 to include procurement: 
(a) By certain central or federal government entities, government enterprises, or state or 
departmental entities (as listed respectivel y in Annexes 1 and 2 to Article 15-02 and 
in a Protocol foreseen to be agreed upon;  as at December 2011, no negotiations have been initiated); 
(b) of specified goods, services and constructi on services (as listed in Annexes 3, 4 and 5 
to Article 15-02); 
(c) provided the procurement is above specified thresholds, as follows: 
(i) goods and services:  US$50,000 for pr ocurement from central or federal 
levels of government;  US$250,000 for government enterprises, and 
a threshold yet to be defined for pr ocurement from state or departmental 
entities (under the Protocol referred to (a) above)
99; 
(ii) construction services:  US$6.5 million for procurement from central or federal 
levels of government;  US$8 million for government enterprises, and a threshold yet to be defined for pr ocurement from state or departmental 
entities (under the Protocol referred to (a) above)
100; 
(iii) for both countries, Annex 7 establishe s transitional reservations - eliminated 
in 2004 - on a percentage of the to tal procurement of the entities listed 
therein. 
219. Annex 7 to Article 15-02 also lists procuremen t that is excluded from the disciplines of the 
chapter.  These are procurement aimed for commercial trade by governmental shops, procurement made in conformity with loans from multilateral/r egional financial institutions, procurement made 
between two entities of the same Party, transpor t services, and procurement for national security 
reasons including safeguarding of nuclear material  and technology.  Each Party is free to exclude 
from the chapter's disciplines up to a maximum of 5 per cent per year of their total procurement. 
220. Chapter XV disciplines provide that Par ties' government procurement practices are 
non-discriminatory and non-arbitrary, and that they provide for transparency and equal access among the Parties;  national and MFN treatment are specifi cally provided for (Article 15-04).  The chapter 
also contains detailed provisions regarding tenders.   Dispute settlement is applicable to government 
procurement (Article 15-18);  in case of a dispute, the complaining Party may choose to either use the 
procedures of Chapter XIX as such, or as modifi ed by paragraphs 2 to 9 of Article 15-18. 
                                                      
99 Given that by December 2011 the incl usion of State or departmental en tities in the chapter's coverage 
had not been negotiated, this threshold has not been defined. 
100 Ibid.  WT/REG289/1 
 Page 65 
 
 
  I. INTELLECTUAL PROPERTY RIGHTS  
221. Chapter XIV lays down the provisions on intell ectual property rights (IPRs) and mirrors in 
most aspects the rights and obligations under the Trade-Related Aspects of Intellectual Property 
Rights (TRIPS) Agreement.  The Chapter consists of five Sections:  A (General Provisions:  Article 18-01), B (Copyrights and related rights:  Articles 18-02 to 18-07), C (Industrial Property:  
Articles 18-08 to 18-23), D (Technology Transfer:  Article 18-24) and E (Observance of Property 
Rights:  Articles 18-25 to 18-34). 
222. In accordance with the TRIPS Ag reement, the Parties commit to grant national and most 
favourable treatment to nationals of the other Part y with respect to the protection of intellectual 
property.
101  They also agree to ensure that measu res for IPR protection do not become unnecessary 
barriers to trade.  In addition, Article 18-01 r ecognizes the importance of the Parties being signatories 
to the Paris Convention on the Protection of Indus trial Property (1967);  Colombia ratified it in 1996 
and Mexico was an original signatory. 
223. Moreover, Article 18-01 states that the Parties can implement in their domestic law broader 
protection of intellectual property rights than re quired under the Chapter, provided that such 
protection is not incompatible with the Chapter or ot her agreements to which they are party.  Nothing 
in the Chapter will prevent a Party from adoptin g adequate measures to prevent anticompetitive 
practices resulting from the abuse of the intellectual property rights in the case of licences 
concessions.  Such measures are to be in line with the provisions of the Treaty. 
224. The Treaty covers the protection of copyrights and related rights (Articles 18-02 to 18-04), 
performers (Article 18-05), producers of phonogram s (Article 18-06), broadcasting organizations 
(Article 18-07), trademarks (Articles 18-08 and 18-09), well- known marks (Articles 18-10), 
geographical indicators (18-16), industrial secrets (A rticle 18-17), pharmaceutical or agricultural 
chemical products (Article 18-22) and vegetables varieties (Article 18-23). 
225. With respect to the term of protection, the Treaty extends the period of protection for 
broadcasting organizations from 20 years (in the TR IPS Agreement) to 50 years from the end of the 
year in which the broadcast took place (Article 18-07).  For trademark, the Treaty also provides 
a longer term of protection:  ten years against seven  years in the TRIPS Agreement, from the date of 
filing of the application or the date of its registra tion.  The registration of a trademark will be renewed 
every ten years (Article 18-14). 
226. Regarding civil and criminal procedures, the Tr eaty sets the guidelines (Article 18-26) for the 
adequate and effective protection of IPRs and describes the provisions regarding IPR enforcement 
procedures (Article 18-27), measures to prevent and compensate any harm caused to the right holder 
(Article 18-28), indemnifications (Article 18-29), administrative (Ar ticle 18-30) and penal procedures 
(Article 18-31) and the protection of property rights at the border (18-32).  Moreover, under 
Article 18-25, the Parties have no obligation to establish a legal system for the observance of 
intellectual property rights, different from the existing one. 
227. Finally, under the Treaty, the Parties agree to promote technology transfer, innovation and 
diffusion among companies and institutions through favourable national regula tions (Article 18-24). 
                                                      
101 Indeed, each Party will (i) grant adequate and effec tive protection of IPRs to nationals of the other 
Party in its territory in the same conditions than to its  own nationals;  and (ii) extend any advantage, favour, 
privilege or immunity granted to the nationals of a non-Pa rty to the nationals of the other Party (Article 18-01). WT/REG289/1 
Page 66  
 
  ANNEX I 
 
 1. A comparison between preferential tariffs  applied under the scheduled elimination 
programmes of each Party and the MF N applied duties, by total, agricultural (WTO definition) and 
non-agricultural products, is shown in Tables AI.1  (Mexico) and AI.2 (Colombia).  Applied 
MFN duty rates in 1995 serve as a comparison.  2. In 1995, Mexico had a variable MFN tariff st ructure.  Its (unweighted) average MFN tariff 
(1995) was 13.3 per cent, with the average for agricu ltural products reaching 18.5 per cent and that for 
industrial products 12.8 per cent.  Mexico's share of duty-free lines at the MFN level was 9 per cent in 
1995.  On entry into force of the Treaty, Colombia's  exporters enjoyed a relative margin of preference 
of 38.3 per cent for non-agricultural products vis-à-vis  the prevailing average MFN tariff in 1995, and 
of 21.6 per cent for agricultural goods.  However, th e share of duty-free lines at entry into force for 
imports from Colombia decreased to 6.7 per cent;  th is can be explained by (i) the limited amount of 
lines that had become duty-free at entry into for ce, (ii) the fact that for automotive products, 
reductions have been based on rates higher than the base rate, and (iii) Mexico 's policy of applying 
a TEP tariff even when the MFN rate was lower.  By the end of the original transition period in 2004, 
the average tariff faced by Colombia's exporters on  all products was 1.2 per cent, with the share of 
duty-free tariff lines increasing to 93 per cent;  the in clusion of the new automotive regime moved the 
corresponding percentages to 0.8 per cent and 96.7 per cent in 2010.  The final average applied rate on 
agricultural dutiable goods was 27.8 per cent in 2004 , almost three times higher than the equivalent 
figure for non-agricultural goods.  
Table AI.1 
Mexico:  Indicators of MFN tariff rates and preferential rates for imports from Colombia 
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 1995 13.3 14.6 9.0 18.5 20.6 10.0 12.8 14.1 8.9 
 2010 6.9 15.2 54.2 20.3 26.2 21.5 5.5 13.1 57.8 
Colombia 1995 8.5 9.1 6.7 14.5 16.0 9.8 7.9 8.5 6.4 
 1996 7.7 8.3 6.7 14.0 15.5 9.8 7.2 7.7 6.4 
 1997 6.8 7.3 6.7 13.3 14.8 9.8 6.3 6.7 6.4 
 1998 6.0 6.5 6.7 12.8 14.2 9.8 5.4 5.8 6.4 
 1999 5.3 5.6 6.7 12.2 13.6 9.8 4.6 4.9 6.4 
 2000 4.4 4.7 6.7 11.6 12.9 9.8 3.7 4.0 6.4 
 2001 3.6 3.8 6.7 11.1 12.3 9.8 2.9 3.1 6.4 
 2002 2.8 3.0 6.7 10.5 11.6 9.8 2.1 2.2 6.4 
 2003 2.0 2.1 6.7 9.9 11.0 9.8 1.2 1.3 6.4 
 2004 1.2 17.2 93.0 9.4 27.8 65.7 0.4 9.8 95.5 
 2005 1.0 22.3 95.4 9.4 27.8 65.7 0.2 12.7 98.1 
 2006 0.9 21.6 95.5 9.4 27.8 65.7 0.2 10.6 98.2 
 2007 0.9 21.4 95.6 9.4 27.8 65.7 0.1 8.7 98.3 
 2008 0.9 20.6 95.6 9.4 27.8 65.7 0.1 6.4 98.3 
 2009 0.8 21.4 95.9 9.4 27.8 65.7 0.1 5.0 98.7 
 2010 0.8 26.1 96.7 9.4 27.8 65.7 0.0 12.5 99.5 
 
a WTO Definition. 
 
Note: For tariff lines subject to TRQs, only the out-of-quota dut y is included in th e tariff-related calculations;  for the cal culation of 
averages, specific duties are excluded and the ad valorem  parts of alternate rates are included. 
 Based on the HS 1992 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Mexico. 
 
3. In 1995, Colombia had a variable tariff structure and only 1.3 per cent of tariff lines duty-free on an MFN basis.  Its (unweighted) average MFN rate was 11.8 per cent on all goods, with the tariff  WT/REG289/1 
 Page 67 
 
 
  for agricultural goods being 14.6 per cent and that fo r non-agricultural products 11.4 per cent.  Upon 
the entry into force of the Treaty, Mexico's expor ters enjoyed a relative margin of preference of 
26.3 per cent on non-agricultural products vis-à-vis  the prevailing average MFN tariff in 1995, and 
a relative margin of preference of 15.1 per cent on agri cultural goods.  At entry into force, the share of 
duty-free lines on imports from Mexico increased to 5 pe r cent.  By the end of the original transition 
period in 2004, the average tariff faced by Mexico's exporters on all products is set to be 1.2 per cent, 
with the share of duty-free tariff lines increasing to 90 .9 per cent.  However, the average applied rate 
on lines which continue to be dutiable in 2004 was 13 .5 per cent, and at 15.1 per cent, slightly higher 
for agricultural products.  Once the new automotive re gime is considered, the average final rate in 
2011 is 14.8 per cent. 
 
Table AI.2 
Colombia:  Indicators of MFN tariff rates and preferential rates for imports from Mexico 
Origin of 
goods Year ALL PRODUCTS Agricultural productsa 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 1995 11.8 12.0 1.3 14.6 14.6 0.0 11.4 11.6 1.5 
 2010 12.1 12.6 4.2 17.7 18.0 2.0 11.3 11.8 4.5 
Mexico 1995 8.9 9.4 5.0 12.4 12.4 0.0 8.4 8.9 5.8 
 1996 8.1 8.6 5.0 11.7 11.7 0.0 7.6 8.1 5.8 
 1997 7.4 7.7 5.0 11.0 11.0 0.0 6.8 7.2 5.8 
 1998 6.6 6.9 5.0 10.3 10.3 0.0 6.0 6.4 5.8 
 1999 5.8 6.2 6.0 9.6 9.6 0.1 5.2 5.6 7.0 
 2000 4.9 5.2 6.0 8.8 8.8 0.1 4.3 4.6 7.0 
 2001 3.9 4.2 6.0 8.1 8.1 0.1 3.3 3.6 7.0 
 2002 3.0 3.2 6.1 7.4 7.4 0.1 2.4 2.5 7.1 
 2003 2.1 2.2 6.1 6.6 6.6 0.1 1.4 1.5 7.1 
 2004 1.2 13.5 90.9 5.9 15.1 60.8 0.5 11.4 95.4 
 2005 1.1 14.0 92.3 5.9 15.1 60.8 0.3 11.7 97.1 
 2006 1.0 13.8 92.7 5.9 15.1 60.8 0.3 10.7 97.5 
 2007 1.0 13.5 92.9 5.9 15.1 60.8 0.2 9.2 97.9 
 2008 0.9 13.0 93.0 5.9 15.1 60.8 0.2 7.3 97.9 
 2009 0.9 12.5 93.0 5.9 15.1 60.8 0.1 5.3 97.9 
 2010 0.8 13.4 93.7 5.9 15.1 60.8 0.1 5.6 98.7 
 2011 0.8 14.8 94.4 5.9 15.1 60.8 0.0 10.5 99.6 
 a WTO Definition. 
 
Note: Based on the HS 2002 nomenclature.  
Source : WTO Secretariat estimates based on data provided by Colombia. 
 
4. Mutual market access cond itions for each country's top 25 exports in the 1992-1994 and 
2008-2010 periods are presented in Tables AI.3a to AI.4b1, together with an indication of the year in 
which duty-free treatment was to be granted.  The code and product description are given at the 
six-digit level.  The tables also show the number of tariff lines covered by the products concerned. 
 5. Table AI.3a shows the market access conditions  in Mexico for Colombia's top 25 exports, 
covering 62 tariff lines, which in 1994 accounte d for 72.2 per cent of its global exports.  
Four products, plus one partially (accounting for around 2 per cent of trade), benefitted already from 
duty free treatment at the MFN level, while four other agricultural products accounting for six tariff 
lines and 27.5 per cent of global exports remained dutiable in 2004 and did not benefit from duty-free 
treatment in Mexico prior to th e entry into force of the Treaty.
2  Seven products, plus one partially, 
                                                      
1 Two periods are presented given the period of time that has elapsed between the Treaty's entry into 
force and the preparation of  the Factual Presentation. 
2 Liberalization beyond 2004 relates only to the automotive sector. WT/REG289/1 
Page 68  
 
  which accounted for nine tariff lines
3 and at least 14.8 per cent of Colombia's global exports, became 
duty free upon the Treaty's entry into force, with the remaining 29 lines becoming duty free in 2004.  
Dutiable products - which include top exports su ch as coffee and banana - will face an average 
MFN rate of 20 per cent, while sugar (HS 1701.11) w ill remain subject to a specific tariff rate.  The 
margin of preference granted to Colombia by  Mexico under the Treaty ranges from 0 per cent to 
141 per cent (a result of tariffication for coffee extracts). 
 
Table AI.3a – Mexico:  Market access opportunities  under the Treaty for Co lombia's top 25 exports 
Colombia's top export products in 1992-1994  Access Conditions to Mexico's import markets  
MFN (1995) Duty-free in  
Remain 
Dutiable  
MFN 
average  No. of tariff lines
HS number and description of the product  Share in 
global 
exports Duty-free Dutiable 1995 2004 
090111 Not decaffeinated 19.5 20.0 1   1
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude 14.3 10.0 1  1 
270112 Bituminous coal 7.3 10.0 1 1  
080300 Bananas, including plantains, fresh or 
dried 5.9 20.0 1   1
060310 Fresh 5.1 20.0 2  2 
710391 Rubies, sapphires and emeralds 3.8 10.0 1 1  
271000 Petroleum oils and oils obtained from 
bituminous minerals, other than crude;  
preparations not elsewhere specified or included, containing by weight 70% or 
more of petroleum oils or of oils obtained 
from bituminous minerals, these oils being the basic con 3.6 8.6 3 18 2 16 
720260 Ferro-nickel 1.5 10.0 1 1  
170199 Other 1.2 1.0 2   2
030613 Shrimps and prawns 1.2 20.0 1  1 
210110 Extracts, essences and concentrates, of 
coffee, and preparations with a basis of 
these extracts, essences or concentrates or with a basis of coffee 1.0 141.0 1  1 
170111 Cane sugar 0.9 1.0a2  2
620462 Of cotton 0.8 35.0 1 1  
710310 Unworked or simply sawn or roughly 
shaped 0.8 10.0 1  1 
380820 Fungicides 0.7 0.0 2   
490199 Other 0.7 0.0 7   
620342 Of cotton 0.6 35.0 1 1  
390410 Polyvinyl chloride, not mixed with any 
other substances 0.5 10.0 3  3 
390760 Polyethylene terephthalate 0.4 12.5 2  2 
490290 Other 0.4 0.0 2   
630260 Toilet linen and kitchen linen, of terry 
towelling or similar terry fabrics, of 
cotton 0.4 35.0 1 1  
610910 Of cotton 0.4 35.0 1 1  
590310 With polyvinyl chloride 0.4 10.0 1  1 
420211 With outer surface of leather, of 
composition leather or of patent leather 0.4 35.0 1  1 
380830 Herbicides, anti-sprouting products and 
plant-growth regulators 0.4 0.0 4   
 Total of above  72.2 18 44 9 29 6
 
a Ad valorem  duty, but a specific rate also applies. 
 
Source : WTO estimates based on data provided by Mexico and UN Comtrade database. 
 
6. The evolution of trade in Colombia's top 25 exports as of 2008-2010, and their treatment in 
Mexico's market is reflected in Table AI.3b belo w.  Generally, although there has been a shift in 
Colombia's export ranking - only nine of the t op 25 exports in 1992-1994 remain in the table - 
                                                      
3 For one product, three lines were already MFN duty free.  WT/REG289/1 
 Page 69 
 
 
  globally these top 25 exports represent around the same am ount of exports (73.8 per cent of total trade 
in 2008-2010, compared to 72.2 per cent in the prev ious period).  Overall however this change in 
ranking points, in terms of liberalization under the Treaty, to a reduction of imports remaining 
dutiable - i.e. a little more than 9.1 per cent (t hree times lower than in 1992-1994) - though the 
number of lines is higher (nine lines compared to six in 1992-1994).  In particular, around half of 
Colombia's global exports (48.6 per cent) is petrol eum oils and bituminous coals, all of which have 
become duty free under the Treaty.  
Table AI.3b – Mexico:  Market access opportunities  under the Treaty for Co lombia's top 25 exports 
Colombia's top export products in 2008-2010  Access Conditions to Mexico's import markets  
MFN (1995) Duty-free in  
Remain 
Dutiable  
MFN 
average  No. of tariff lines
HS number and description of the product  Share in 
global 
exports Duty-free Dutiable 1995 2004 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude 27.9 10.0 1  1 
270112 Bituminous coal 13.9 10.0 1 1  
271000 Petroleum oils and oils obtained from 
bituminous minerals, other than crude;  
preparations not elsewhere specified or included, containing by weight 70% or 
more of petroleum oils or of oils obtained 
from bituminous minerals, these oils being the basic con 6.8 8.6 3 18 2 16 
090111 Not decaffeinated 4.8 20.0 1   1
710812 Other unwrought forms 3.9 0.0 1   
060310 Fresh 3.0 20.0 2  2 
720260 Ferro-nickel 2.3 10.0 1 1  
080300 Bananas, including plantains, fresh or 
dried 2.0 20.0 1   1
270400 Coke and semi-coke of coal, of lignite or 
of peat, whether or not agglomerated;  retort carbon 1.0 5.0 1 1  1 
020110 Carcases and half-carcases 0.8 20.0 1   1
170199 Other 0.7 1.0 2   2
300490 Other 0.6 13.7 1 22  22 
390410 Polyvinyl chloride, not mixed with any 
other substances 0.6 10.0 3  3 
740400 Copper waste and scrap 0.6 5.0 2  2 
210110 Extracts, essences and concentrates, of 
coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee 0.6 141.0 1  1 
390210 Polypropylene 0.5 10.0 2  2 
271121 Natural gas 0.5 10.0 1  1 
481840 Sanitary towels and tampons, napkins 
and napkin liners for babies and similar 
sanitary articles 0.5 10.0 3  3 
170490 Other 0.5 20.0 2  1 1
020130 Boneless 0.4 20.0 1   1
380820 Fungicides 0.4 0.0 2   
151110 Crude oil 0.4 10.0 2   2
620342 Of cotton 0.3 35.0 1 1  
321290 Other 0.3 13.3 3  3 
710391 Rubies, sapphires and emeralds 0.3 10.0 1 1  
 Total of above  73.8  8 73 6 58 9
 
Source : WTO estimates based on data provided by Mexico and UN Comtrade database. 
 
7. Table AI.4a shows the market access conditions  in Colombia for Mexico's top 25 exports, 
covering 81 tariff lines, and which in 1992-1994 account ed for 42.7 per cent of its global exports.  
Only one product (fresh tomatoes) will remain subjec t to duties - at an MFN rate of 15 per cent - at 
the end of the transition period;  two products became duty free at entry into force (accounting for 
two lines and 1.2 per cent of exports) and 14 at the end of the original transition period in 2004 
(45 lines and 25.2 per cent of exports);  the remindi ng nine products (automotive) became duty free in WT/REG289/1 
Page 70  
 
  the years 2005 to 2011.  The margin of preferen ce granted to Mexico by Colombia under the Treaty 
ranges from 5 per cent to 35 per cent. 
Table AI.4a – Colombia:  Market acce ss opportunities under the Treaty for Me xico's top 25 exports to the world 
Mexico's top export products in 1992-1994  Access Conditions to Colo mbia's import markets  
MFN (1995)
Duty-free in 
Remain 
Dutiable HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
tariff lines
1995 
2004 2005 
2006 
2007 
2010 
2011 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 12.9 10.0 1  1       
870323 Of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc 5.6 35.0 2      2  
840734 Of a cylinder capacity exceeding 
1,000 cc 2.6 10.0 1  1      
854430 Ignition wiring sets and other wiring 
sets of a kind used in vehicles, aircraft 
or ships 2.4 15.0 1     1   
870322 Of a cylinder capacity exceeding 
1,000 cc but not exceeding 1,500 cc 2.3 35.0 2      2  
852990 Other 1.8 11.7 3  3       
851719 Other 1.1 15.0 2  2       
854441 Fitted with connector s 1.1 15.0 3  3       
852739 Other 1.0 20.0 1  1       
847330 Parts and accessories of the machines 
of heading 84.71 0.9 5.0 1  1       
852830 Video projectors 0.9 20.0 1  1       
852812 Colour 0.9 20.0 2  2       
852821 Colour 0.9 20.0 1  1       
870829 Other 0.9 15.0 6  1  4 1   
271019 Other 0.8 9.7 16  16       
854890 Other 0.8 5.0 1  1       
392690 Other 0.8 14.4 9  9       
870821 Safety seat belts 0.7 15.0 1  1      
010290 Other 0.7 10.0 2  2       
870431 g.v.w. not exceeding 5 t onnes 0.7 25.0 2      2  
870421 g.v.w. not exceeding 5 t onnes 0.6 25.0 2      2  
070200 Tomatoes, fresh or chilled 0.6 15.0 1       1 
870899 Other 0.6 10.3 16   12   4  
853650 Other switches 0.6 9.2 3 1 2       
847130 Portable digital automatic data 
processing machines, weighing not 
more than 10 kg, consisting of at least a central processing unit, a keyboard and 
a display 0.6 5.0 1 1       
 Total of above 42.7 81 2 45 3 12 4 2 12 1 
 
Note:: Based on HS 2002 nomenclature. 
 
Source : WTO estimates based on data provided by  Colombia and UN Comtrade database. 
 
8. The evolution of Mexico's exports and its position in Colombia's market is depicted in 
Table AI.4b below.  Overall, concentration of exports has increased, with the top 25 exports 
accounting for half of global exports;  compared  with 1992-1994, only 10 of the 25 top exports 
remain in the ranking.  In terms of the Treaty's liberalization, all top 25 exports have become duty 
free, two at entry into force (accounting for 2.2 per cent of exports), 13 in 2004, one in 2006 and 
2007, two at 2010 and 6 in 2011.  The only agricult ural product within these top exports - beer - 
became duty free in 2004.  WT/REG289/1 
 Page 71 
 
 
  Table AI.4b – Colombia:  Market acce ss opportunities under the Treaty for Me xico's top 25 exports to the world 
Mexico's top export products in 2008-2010  Access Conditions to Colo mbia's import markets
MFN (1995)
Duty-free in 
HS number and description of the product  Share in 
global 
exports (%)  Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
tariff lines
1995 
2004 
2005 
2006 
2007 
2010 
2011 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 12.8 10.0 1  1      
852812 Colour 7.2 20.0 2  2      
870323 Of a cylinder capacity exceeding 1,500 cc 
but not exceeding 3,000 cc 5.5 35.0 2       2 
852520 Transmission apparatus incorporating 
reception apparatus 3.5 7.5 4  4      
870431 g.v.w. not exceeding 5 t onnes 2.0 25.0 2       2 
851790 Parts 1.5 5.0 1  1      
854430 Ignition wiring sets and other wiring sets of 
a kind used in vehicles, aircraft or ships 1.4 15.0 1      1  
710812 Other unwrought forms 1.4 10.0 1  1      
851780 Other apparatus 1.3 10.0 1  1      
271019 Other 1.3 9.7 16  16      
847149 Other, presented in the form of systems 1.1 5.0 1 1       
870899 Other 1.0 10.3 16    12   4 
847150 Digital processing units, other than those of 
subheading 8471.41 or 8471.49, whether or 
not containing in the same housing one or two of the following types of unit:  storage 
units, input units, output units 1.0 5.0 1 1       
870829 Other 0.9 15.0 6   1  4 1  
940190 Parts 0.9 15.0 3   3     
870332 Of a cylinder capacity exceeding 1,500 cc 
but not exceeding 2,500 cc 0.9 35.0 2       2 
870120 Road tractors for semi-trailers 0.9 15.0 1       1 
870324 Of a cylinder capacity exceeding 3,000 cc 0.7 35.0 2       2 
853710 For a voltage not exceeding 1,000 V 0.7 15.0 1  1      
901890 Other instruments and appliances 0.7 5.5 2  2      
710691 Unwrought 0.7 10.0 2  2      
220300 Beer made from malt. 0.7 20.0 1  1      
841810 Combined refrigerat or-freezers, fitted with 
separate external doors 0.7 20.0 1  1      
901839 Other 0.6 7.5 1  1      
840991 Suitable for use solely or principally with 
spark-ignition internal combustion piston 
engines 0.6 10.0 10   7  3   
 Total of above 50.0 81 2 34 11 12 7 2 13 
 
Note: Based on HS 2002 nomenclature. 
 
Source : WTO estimates based on data provided by  Colombia and UN Comtrade database. 
 WT/REG289/1 
Page 72  
 
  ANNEX II 
 
Changes in the TEP After the Treaty's Entry into Force
1 
  
Mexico:  2002 Accelera tions - Decisions Nos. 37 and 38 of the Administrative Commission 
 
2920.90.01   2920.90.13   4011.20.01  8517.90.07  
2920.90.02  2920.90.14   6805.20.01  8517.90.09  
2920.90.03   2920.90.16   7009.92.01   8517.90.10  2920.90.04   2920.90.17   7605.11.01   8517.90.11  
2920.90.05   2920.90.99   7605.11.99   8517.90.12  
2920.90.06   3808.20.99   8203.10.99   8517.90.13  2920.90.07   3808.30.01  8517.90.01   8517.90.14  
2920.90.08   3808.30.02   8517.90.02   8517.90.16  
2920.90.09   3808.30.03  8517.90.03   8517.90.99  
2920.90.10   3808.30.03   8517.90.04   9615.11.01  
2920.90.11   3808.30.99   8517.90.05   9615.90.99  2920.90.12  4011.10.01  8517.90.06   
       
Colombia:  2002 Accelera tions - Decisions Nos. 37 and 38 of the Administrative Commission 
 
2920.90.90.00   4011.10.00.00  7605.11.00.00  8517.90.00.00 
3808.20.90.90  4011.20.00.00  8203.10.00.00  9615.11.00.00 3808.30.10.00  6805.20.00.00  7009.92.00.00  9615.90.00.00 
3808.30.90.90       
 
Mexico and Colombia:  Changes in the TEP of Automotive Products 
 
TEP has been modified for automotive products defined in Decision No. 42, as follows: 
 
 headings 8702-8706 (excepting sub-headings 8703.10 and 8704.10);  
 subheadings 8701.20, 8716.31, 8716.39 and 8716.40;  and  
 auto-parts of Chapters 40, 45, 68, 70, 73, 83-85, 87, 90-91, 94.  
 
Note:  Subheadings 8716.31, 8716.39 and 8716.40 are not covered by Decision No. 42, thus the  original 
TEP applies, de facto excluding these products from liberalization. 
                                                      
1 Not including the products of the Automotive Sector.  WT/REG289/1 
 Page 73 
 
 
  ANNEX III 
 
Tariff-Rate Quotas under the Treaty 
  
1. The various schemes for the maintenance of preferential tariff rate quotas between the Parties 
provided for upon the conclusion of the Treaty are d escribed in are described in Tables AIII.1-AIII.2 
below.  2. Tariff-rate quotas resulting from the automotive regime in force since 2005 is described in 
Table AIII.3 below. 
 
Table AIII.1 
TRQs provided for in the TEP 
 In-quota rate  Quota Out-of quota  
Mexico 
2917.35.01 TEP on a base rate of 0.7% US$500,000 in 1995, 
increasing each year by 20%  TEP on a base rate of 10.8%
Ex 3503.00.31 
(edible gelatine) TEP on a base rate of 1.5% US$2,000,000 in 1995, 
increasing each year by 20%  TEP on a base rate of 10.8% 
 
Table AIII.2 
Levels of temporary flexibility for textile products exported into Colombia from Mexico a nd into Mexico from Colombia 
Period In-quota rate  HS Chapter Limitation 
1.1.1995-31.12.1995 TEP 51-60 
61-63 US$1,000,000 
US$3,000,000 
1.1.1996-31.12.1996 TEP  51-60 
61-63 US$1,500,000 
US$3,500,000  
1.1.1997-31.12.1997 TEP  51-60 
61-63 US$2,000,000 
US$4,000,000 
1.1.1998-31.12.1998 TEP  51-60 
61-63 US$2,500,000 
US$4,500,000 
1.1.1999-31.12.1999 TEP  51-60 
61-63 US$3,000,000 
US$5,000,000 
 
Source : Annex to Article 3-08 of the Treaty. 
 
Table AIII.3 
Automotive sector:  Tariff rate quotas for products of HS 8703, 8704 of a weight lower than 8.8 tonnes 
 
  1.1.05 1.1.06 1.1.07 1.1.08 1.1.09 1.1.10 
Colombia Quantity 3'000 4,000 5, 000 6,000 7, 000 8,000 
Tariff 10% 8% 6% 4% 2% 0% 
Mexico Quantity 6,000 7,000  8,000 9'000 - - 
Tariff 7% 5% 3% 0% Duty free Duty free 
 WT/REG289/1 
Page 74  
 
  ANNEX IV 
 
2010 Protocol - Products for Which Tariffs are to be Eliminated 
  
Duty Free on  Colombia Mexico 
Entry into Force 0407.00.10.00 
0702.00.00.00 
0713.20.10.00 
0713.20.90.00 1001.10.10.00 
1001.10.90.00 
1511.10.00.00 1511.90.00.00 
1513.21.10.00 
1513.29.10.00 1602.31.90.00 
1602.49.00.00A 
1602.49.00.00B 1704.10-10.00 
1704.10.90.00 
1704.90.10.00 1704.90.90.00 
1901.20.00.00 
1904.10.00.00 
 1905.90.10.00 
1905.90.90.00A 
2009.11.00.00 
2009.12.00.00 2009.19.00.00 
2009.50.00.00 
2106.90.79.00 2106.90.90.00 
2202.10.00.00 
2202.90.00.00 2918.14.00.00 
2918.15.30.00 
2918.15.90.00 3903.20.00.00 
3903.39.00.00 
8716.31.00.00 8716.39.00.10 
8716.39.00.90 
8716.40.00.00  0407.00.03 
0702.00.01 
0702.00.99 
0713.20.01 1001.10.01 
1511.10.01 
1511.90.99 1513.21.01 
1513.29 99 
1602.31.01 1602.49.01 
1602.49.99 
1704.10.01 1704.90.99 
1901 20.01 
1901.20.02 1901.20.99 
1904.10.01 
1905.90.99 2009.11.01 
2009.12.01 
2009.12.99 2009.19.01 
2009.19.99 
2009.50.01 2106.90.06  2106.90.07 
2106.90.08 
2106.90.99 
2202.10.01 2202.90.01 
2202.60.02 
2202.90.03 2202.90.99 
2918.14.01 
2918.15.01 2918.15.99 
3903.20.01 
3903.30.01 8716.31.01 
8716.31.02 
8716.31.99 8716.39.01 
8716.39.02 
8716.39.03 8716.39.04 
8716.39.05 
8716.39.06 8716.39.07 
8716.39.08 
8715.39.99 8716.40.99  
2015 2402.20.10.00a 
2402.20.20.00a 
3903.11.00.00   2402.20.01 
3903.11.01 
  
2016 3903.19.00.00 
3903.90.00.00 
  3903.19.01 
3903.19.02 
3903.19.99 3903.90.01 
3903.90.02 
3903.90.03 3903.90.04 
3903.90.05 
3903.90.99   
2019 1516.20.00.00a
1517.10.00.00 
1602.49.00.00 
  1516.20.01a 
1517.10.01a 
1602.49.01a 
1602.49.99a  
2020 1905.31.00.00 a 
1905.32.00.00 a 
1905.90.90.00Ba  1905.31.01a 
1905.32.01a 
1905.90.01a  
 
a In addition, the LAIA's PAR preference applies. 
  WT/REG289/1 
 Page 75 
 
 
  ANNEX V 
 
 
Table AV.1 Reservations for existi ng measures listed by Colombia 
N# Sector1 Obligations Mode Description 
1. All sectors NT/LP CBTS/I A foreign en terprise needs to establish a branch  in the Party's territory in order 
to carry out a concession obtaine d from the Colombian government. 
2. All sectors NT/ SMBD CBTS/I Nati onality requirement for the manager a nd back-up staff of a foreign firm 
performing a given sector  of public services. 
31. All sectors NT/MFN/LP/ 
PR/ SMBD  All non-conforming measures at the department and municipal levels. 
Business services    
11. Real Estate NT I Foreign investments on real estate securities are not allowed. 
12. Real Estate services NT CBTS/I Foreign investment s are prohibited on enterprises whose main activity is 
buying, selling or leasing real estate (with exceptions). 
13. Research and 
development services in 
natural sciences NT I Any foreign person or enterprise pl anning to undertake a given activity that 
could altered or have negative impact  on the environment, must prior the 
beginning of their activity request impact studies carried out by Colombian 
biologists. 
14. Economist services LP CBTS Foreign economists ar e to be domiciled in Colombia to practice their 
profession. 
15. Accounting and auditing 
services NT/LP CBTS To be registered as an accountant in  Colombia, the person is to be domiciled in 
the country;  and this for at least three years before the application. 
16. Consultancy services in 
science and technology 
related to engineering NT CBTS Foreign companies are required to  be in association with a Colombian 
enterprise to carry out consultancy work in  the field of geology.  If needed it, 
foreign geologist will be gr anted temporary permits to be able practice their 
profession. 
17. Investigation and 
security services NT I Partners of private security and su rveillance companies or cooperatives must 
be Colombian nationals.  Companies that  were created before the application 
of this Treaty cannot increase the participation shares of foreign partners, if any. 
18. Fishing related services NT/LP CBTS A permit is required to  exercise a fishing activity;  foreign people also need to 
be domiciled in Colombia.  Association with a Colombian enterprise is 
required to engage in fishing and rela ted activities in Colombian territorial 
waters. 
19. Coke, refined petroleum 
product and nuclear fuel 
manufacturing services LP I Foreign companies willing to undertake mining activities (on a permanent 
basis) in Colombia need to establish a branch in Colombian territory.  In the 
case of occasional or temporary busine ss, they are required to appoint a 
general representative with domic ile and residency in the country. 
20. Military defence 
services NT I Foreign investment is not permitted in activities related to defence and national 
security. 
Communication services     
23. Movies projection 
services NT  CBTS Movie theatres must show Colombia n films during 30 days per year, including 
Latin American movies in co-production (limited to 10 days). 
24. Radio and television 
services NT/SMBD CBTS/I The position of director of a ne ws or journal broadcas ting is reserved to 
Colombian nationals.  The participation of  foreign artists is also restricted. 
25. Radio and television 
services NT/SMBD CBTS/I The concession to supply radio br oadcasting services may be granted only to 
Colombian nationals or to juridical pe rsons established in Colombia.  The 
management or control of such concessi ons will be in the hands of Colombian 
nationals and the Colombian capital will be no less than 75%. 
26. Television services LP CBTS Regional television opera tors will hire for the elaboration of a programme only 
professionals domiciled within the area covered by the operator. 
27. Television services NT CBTS Foreign advertisement is not permitted in regional te levision.  Voice and sound 
effects of national and "mix" commercials are to be produced and created in Colombia and by Colombian staff. 
                                                      
1 The reservation number corresponds to the order in which provisions appeared in the reservation list 
of each Party. WT/REG289/1 
Page 76  
 
  N# Sector1 Obligations Mode Description 
28. Television services NT CBTS Colombian artists will open the show in programme s presenting also foreign 
artists.  Colombian artists will together with the foreign artist be mentioned in 
the programme advertisement.  Drama s hows presented in regional television 
will be based (preferably) in literary works from Colombian authors and from 
the region. 
29. Radio and television 
(except cable and 
Multipunto ) services, 
and other shows NT I Foreign investment on Television companies or channels is permitted but 
restricted to 15% of th e total company capital. 
30. Motion picture, radio 
and television services NT/ SMBD CBTS/I Time and schedule restri ctions regarding national programmes. 
Educational services    
21. Primary and secondary 
teaching MFN CBTS Recognition of primary /basic studi es and degrees obtained in Mexico.  An 
equivalence scheme has been established to also recognize 
secondary/intermediary studies certificates. 
Environmental services    
22. Refuse disposal services NT I Foreign investment is not permitted in activities related to the processing, 
disposition, and disposal of toxic,  hazardous, or radioactive waste not 
produced in Colombia. 
Transport services    
3. Land transport MFN/LP CBTS Land public transportation services (for passengers) are reserved for 
enterprises legally established and domiciled in Colombia. 
4. Land transport MFN/LP CBTS Land freight public transpor tation services are reserved for enterprises legally 
established and domiciled in Colombia. 
5. Air transport NT I Foreigners' participation share in a commercial Colombian airline cannot 
exceed 40%. 
6. Maritime and internal 
waterway transport NT CBTS Cabotage is reserved for Colombian flag vessels.  Under the authorization of 
the Maritime Transport Direction, foreign-flagged vessels can provide this 
service if there is no national vessel s to perform such activity given the 
technical and time conditions. 
7. Maritime Transports NT CBTS Port towing and pushi ng services taking place in Colombian sea are reserved 
for Colombian flag vessels. 
8. Freight Transports NT I Colombian nationals will ow n at least 60% of the soci al capital of a maritime 
freight transport agency. 
9. Commercial air and 
maritime lines NT I The ownership of commercial air and maritime lines registered in Colombia is 
reserved for Colombian nationals. 
10. Specialized air transport NT CBTS Air specialized transpor t services can be provided only by nationals or legally 
established juridical persons, having their main domicile in Colombia. 
 
Note: CBTS: Cross border trade in services;  I:  Investment;  LP:  Local presence requirements;  MA:  Market access restriction ;  
MFN:  Restriction to MFN treatment;  NT:  National trea tment restriction;  PR:  Performance requirements;  
SMBD:  Restrictions affecting senior management and board of directors. 
 
Source : List 1, Decision 11, Diario Oficial , 14 January 1997. 
 
 
  WT/REG289/1 
 Page 77 
 
 
  ANNEX VI 
 
 
Table AVI.1 Reservations for exis ting measures listed by Mexico 
N# Sector1 Obligations Mode Description/Reduction of Restriction 
1. All sectors NT I Limitation on propert y rights over land and water for foreign 
nationals or enterprises. 
2. All sectors NT I Criteria for permitting investment for activities restricted according 
to this list:  (a) effects on employment and training of workers; 
(b) technological contribution;  (c ) compliance with environmental 
provisions;  and (d) contribution to  the competitiveness of Mexican 
production. 
3. All sectors NT/MFN I The examination of fo reign investments on a Mexican enterprise (in 
an unrestricted sector) is required only if their participation exceeds 
49%. 
4. All sectors NT/SMBD I No more than 10% of the staff of Mexican cooperative production 
enterprise can be foreign nationals.  No foreign nationals can engage 
in general administrative functi ons or managerial activities. 
5. 
 All sector NT I Nationality requirements to qualify as a micro-industry enterprises;  
no foreign partners. 
63. All sectors NT/MFN/ 
LP/SMBD/ 
PR  All non-conforming existing measures at the state and municipal 
levels. 
Business services     
26. Professional, technical and 
specialized services - Medical 
doctors NT CBTS Only Mexican nationals licensed as doctors in Mexico can provide 
in-house medical services in Mexican enterprises. 
27. Professional, technical and 
specialized services - specialized 
services NT CBTS Customs brokers are subject  to nationality and authorization 
requirements. 
47. Professional, technical and 
specialized services - auxiliary 
services - customs agents NT   I Colombian investors or their investments cannot participate directly 
or indirectly in a custom brokers' agency. 
28. Professional, technical and 
specialized services - professional 
services NT/LP CBTS Professional practice by foreigners  in the Federal District is subject 
to the provisions of international tr eaties subscribed to by Mexico.  
In the absence of these, reciprocity is required.  Foreign professionals must have an address in Mexico.  The nationality requirement is to 
be eliminated two years after the entry into force of the Treaty. 
29. Professional services - professional 
services NT/LP CBTS Only Mexican nationals license d as accountants in Mexico can carry 
out a tax audit of certain companies.  As of 1.1.1996, certain 
foreigners are also allowed to do  so in accordance with treaties in 
force. 
30. Professional, technical and 
specialized services - public brokers NT/LP CBTS/
I Public brokers must have the Me xican nationality by  birth and be 
established in Mexico.  The association with non-public brokers is 
not allowed. 
31. Professional, technical and 
specialized services - public notary NT/LP CBTS/
I Public notaries must have the Me xican nationality by  birth and be 
established in Mexico.  The association with any person is not 
allowed. 
32. Professional, technical and 
specialized services - private 
veterinary services NT/LP CBTS Nationality requirements.  This  requirement is to be eliminated 
two years after the entry into fo rce of the Treaty.  A domicile 
requirement will remain. 
58. Professional, technical and 
specialized services - legal services NT/MFN/LP CBTS/
I Foreign investors' participation in a Mexican enterprise that provides 
legal services is limited to 49%.  Only lawyers authorized to practice 
in Mexico can participate in a Mexican law firm.  Authorized 
Lawyers to exercise in Colombia can  associate themselves with those 
exercising in Mexico but subject to numeric limitations.  Colombian 
lawyers cannot practice nor provide  advisory services regarding 
Mexican law. 
                                                      
1 The reservation number corresponds to the order in which provisions appeared in the reservation list 
of each Party. WT/REG289/1 
Page 78  
 
  N# Sector1 Obligations Mode Description/Reduction of Restriction 
6. Agriculture, livestock, forestry, and 
lumber activities NT I Nationality requirement to own land for these activities. 
Participation of foreign investors (through shares) is limited to 49%. 
35. Services to agriculture NT/LP CBT S Concessions granted by the authorities to spray pesticides can only 
be obtained by Mexican nationals or Mexican enterprises. 
14. Fishing NT/MFN I Colombian investors or  their investments may only own up to 49% 
of an enterprise established or to be established in Mexico 
performing coastal fishing, fresh water fishing and fishing in the 
Exclusive Economic Zone.  High sea fishing requires a permit if Colombian investments are larger than 49%. 
48. Fishing NT/MFN/ LP CBTS A concession or permit is required to fish in in "Mexican 
jurisdictional waters", and is gi ven only to Mexican nationals and 
Mexican companies using Mexican flagged vessels.  Only Mexican 
nationals and Mexican enterprises ca n get an authorization for high 
seas fishing on Mexican-flagged vess els to certain fishing activities. 
17. Energy - petroleum products NT I Services regardi ng the distribution, transportation, sales and storage 
of liquefied petroleum are reserved to Mexicans and Mexican 
companies with foreign exclusion clauses. 
18. Energy - petroleum products NT I Only Mexican na tionals and Mexican enterprises with a foreigners' 
exclusion clause can acquire, establis h or operate gas stations for the 
distribution or retail sale of gaso line, diesel, lubricants, oils or 
additives. 
19. Manufacture of goods - automotive 
products NT I Foreign investors' participati on in a Mexican enterprise in the 
automobile parts industry is limited to 49%, except for investors that 
considered as "national suppliers " and supply specific parts to cars 
producers, as well as those that do not apply for government benefits. 
20. Manufacture of goods - automotive 
products PR I Performance requirements and import permits are allowed 
(Article 04-06 on PR).  By 01.01.2007, all measures regarding 
import permits are to be eliminated. 
21. Manufacture of goods - 
"maquilladoras " PR I Sales in the domestic market are limited to 60% of the value of 
exports from the previous year.  This threshold will progressively 
increase from 01.01.1997 until 01.01. 2001, when the restriction will 
be eliminated. 
22. Manufacture of goods PR I Export requirements for "direct" (i.e. must export at least 40% of 
their total sales or US$2 million) a nd "indirect" (i.e. must export at 
least 50% of their total sales) exporters.  These requirements are to be eliminated on 01.01.2001. 
23. Manufacture of goods PR I Authorized exporters are subject to export requirements to be able to 
temporarily import duty-free.  These requirements are to be 
eliminated on 01.01.2001. 
24. Manufacture of goods - explosives 
and fireworks;  firearms and cartridges NT I Foreign investors' participation in  an enterprise established or to be 
established in Mexico is limited to 49%. 
25. Printing, editing and associated 
industries - newspaper publishing NT I Foreign investors' participation in  an enterprise established or to be 
established in Mexico engaged in the printing or publication of 
newspapers written primarily for a Mexican audience and distributed 
in Mexico is limited to 49%.  This does not apply for printing and/or 
distribution of newspapers publis hed simultaneously outside the 
Mexican territory. 
Communication services    
7. Audiovisual - communication 
(leisure services, radio and 
cable TV) NT/PR CBTS/
I Imports of radio and TV programmes are subject to previous 
authorization. 
8. Audiovisual - communication 
(leisure services, radio and 
cable TV) NT/PR CBTS/
I Broadcasting and distribution (cable or multipunto systems) of 
television or radio programmes must be in Spanish.  Previous 
authorization is required for non- Mexican broadcasters and hosts. 
9. Audiovisual - communication 
(leisure services, radio and 
cable TV) NT/PR CBTS/
I Requirements for the use of Spanish or Spanish subtitles in 
advertisements.  Advertisements  included in foreign programmes 
cannot be distributed when the programme is retransmitted in Mexico.  WT/REG289/1 
 Page 79 
 
 
  N# Sector1 Obligations Mode Description/Reduction of Restriction 
10. Audiovisual - communication 
(cable TV) NT/LP CBTS/
I A concession is required to build and/or operate a cable television.  It 
can be granted to Mexican nationals and companies.  Participation of 
foreign investment on cable television companies in Mexican 
territory is limited 49%. 
11. Audiovisual - communication - 
cinemas NT/PR CBTS/
I Domestic content requirements. 
59. Audiovisual - communication - 
entertaining services NT/LP CBTS/
I Only Mexican nationals and Mexican enterprises with a foreigners' 
exclusion clause can provide or inve st in radio broadcasting services, 
distribution of (wireless) tv cabl e systems, music, high-definition 
television.  This does not apply to the production, sale, rights' 
authorization for radio or tv programming. 
12. Telecommunications and transport NT I Foreign go vernments and foreign state enterprises and their 
investments cannot invest direct or  indirectly on Mexican companies 
providing services related to communications, transportation and 
other general means of communication. 
60. Telecommunications (mobile and 
phones services for aeronautical 
services) NT/LP CBTS/
I Only Mexican nationals and Mexican enterprises with a foreigners' 
exclusion clause can invest in th e area of air transit control, 
aeronautical meteorology, flight control and other telecommunication 
services related air navigation. 
61. Communications and transport - 
mail, telegraphy, radiotelegraphy 
and wireless telegraphy services NT CBTS The provision of first cla ss postal services, telegraphy and 
radiotelegraphy services is re served to the Mexican State. 
Construction and engineering related services    
13. Construction services NT I Foreign investor s' participation in a construction enterprise 
established or to be established in Mexico requires a previous 
authorization, if greater than 49%.  This restriction is lifted as of 
1 January 1999. 
15. Construction - exploration and 
drilling works of petroleum and gas 
wells, pipelines for petroleum and 
its derivatives. NT I Risk-sharing contracts are prohibited.  In the case of 
"non-risk-sharing" contracts, fo reign investment require an 
authorization if their share is greater than 49%. 
Distribution services    
33. Retail Trade - sale arms and 
ammunitions NT I Foreign investors' participation in  an enterprise established or to be 
established in Mexico that is engaged in the sale of explosives, 
cartridges and ammunition is limited to 49%. 
Educational services     
16. Education - Private Schools NT I Foreign investors' pa rticipation in an enterprise established or to be 
established in Mexico that provi des pre-school, primary, secondary 
and higher education requires a previous authorization, if greater 
than 49%. 
Transport services    
36. Air transport - services of 
domestically registered aircraft, 
air taxis NT/SMBD I Foreign investors' participati on in a Mexican enterprise that provides 
commercial air services with Mexican registered aircrafts is limited 
to 25%.  There are nationality requ irements for the chairman, the 
board of directors and managing officers.  Only companies complying with these restrictions may register an aircraft in Mexico. 
37. Air transport - specialized 
air services NT/LP/ 
SMBD CBTS/
I A permit is required to provide specia lty air services in Mexico.  For 
certain listed services such perm it can be granted to Colombian 
nationals if they comply with Me xican security rules and trainings. 
Other services are to be liberalized on 1.1.97 and 1.1.2000.  Foreign 
investors' participation in a Me xican enterprise that provides 
specialty air services using Mexican registered aircrafts is limited to 
25%.  There are nationality requireme nts for the chairman, the board 
of directors and managing officers.  Only companies complying with these restrictions may register an aircraft in Mexico. 
38. Air transport - manufacturing, 
assembly and repair of aircraft LP CBTS A permit to establish aeronautical ateliers and training/teaching 
centres is required and will be granted only to Mexican nationals. 
39. Air transport - navigation services, 
airport and heliport management 
services NT/LP CBTS/
I The concession to build and operate  airports and heliports can be 
granted only to Mexican nationals and companies.  Foreign 
investments with an ownership shar e larger than 49% in a Mexican 
company require previous authorization. WT/REG289/1 
Page 80  
 
  N# Sector1 Obligations Mode Description/Reduction of Restriction 
40. Land transport - management 
services of operation of bus stations 
and auxiliary services NT/LP CBTS/
I The permit required to establish or operate a bus or truck station or 
terminal can be granted only to  Mexican nationals and Mexican 
companies with foreign exclusion clauses.  All foreign investments 
are forbidden.  Liberalization of foreign investments will take place 
in three stages.  By 1.1.04., no e quity restrictions will exist. 
42. Land transport - road and bridge 
management services and auxiliary 
services NT/LP CBTS Concessions to provide road and bridge management services and 
auxiliary services can be grante d only to Mexican nationals and 
Mexican enterprises. 
43. Land transportation - local bus;  
school bus;  and taxi and other 
collective transportation NT CBTS/
I Only Mexican nationals and Mexican enterprises with a foreigners' 
exclusion clause can provide local bus services, school bus services 
and taxi and other collective transportation services. 
44. Land transportation - inter-city bus 
services, tourist transportation 
services or freight truck services to 
or from Mexico NT/MFN/ LP CBTS/
I Only Mexican nationals and Mexican enterprises with a foreigners' 
exclusion clause can provide in ter-city bus services, tourist 
transportation services or truck se rvices for the transportation of 
goods to or from Mexico.  Bus or truck services for the transportation 
of goods or passengers within Mexico are also reserved to Mexican nationals and Mexican enterprises with a foreigners' exclusion 
clause.  Special permits are needed for certain services.  All foreign 
investments are forbidden.  Libera lization of foreign investments will 
take place in three stages.  By 1.1. 04., no investment restrictions will 
exist, except in the case of companies providing national freight 
transport services. 
45. Land transportation and 
water transportation NT/LP CBTS The concession required to construct and operate, or operate marine 
or river works or roads for land transportation can be granted only to 
Mexican nationals and Mexican enterprises. 
49.  Maritime transportation - 
manufacture and repair NT/LP CBTS The concession required to establish and operate, or operate, 
a shipyard can be granted only to Mexican nationals and Mexican 
enterprises. 
50. Maritime transportation NT CBTS/
I The operation or exploitation of  high-seas navigation vessels, 
including transport and internati onal maritime towing services is 
open to ships owners and vessels of  all countries, on the basis of 
reciprocity according to international treaties.  Authorities reserve the 
right to favoured Mexican shipping  enterprises with Mexican-flagged 
vessels when the principles of fr ee competition are not respected and 
the national economy is affected.  The operation and exploitation of 
inland ships will be carried out only Mexican companies using 
Mexican vessels but subject to availability.  The operation and 
exploitation of vessels for cabotage requires a permit and are subject 
to reciprocity.  In certain cases , inland and coastal (cabotage) 
navigation can be performed only by  Mexican ship operators using 
Mexican vessels.  Colombian investor s' participation is limited to 
49% in the case of Mexican enterp rises engaged in the commercial 
exploitation of vessels for inland and coastal navigation, excluding 
tourism cruises and exploitation of dredges and maritime devices for 
the construction, preservation and operation of port.  A permit is 
required for investments above the threshold in Mexican companies engages in international maritime transport. 
51. Maritime transportation - 
management of ports (sea, lakes, 
rivers) NT/LP CBTS Nationality requireme nts for all port workers. 
52. Maritime transportation - 
Water transport loading and 
unloading Services NT/LP CBTS/
I The concession required to cons truct and operate, or operate, 
maritime port terminals including do cks, cranes and related facilities 
can be granted only to Mexican nati onals and enterprises.  A special 
permit is required to carry out certa in activities.  Foreign investors' 
participation in a Mexican enterp rise providing port services to 
vessels requires previous authorization if larger than 49%. 
53. Maritime transportation - 
management of ports NT I Foreign investors' participation in a Mexican enterprise authorized to 
act as an integral port administrator is limited to 49%. 
54. Maritime transportation - 
management of ports (piloting 
port services) NT I Foreign investors' participati on is limited to 49% in the case of 
Mexican enterprises engaged in the supply of piloting port services 
to vessels operating in inland navigation. 
57. Maritime transportation - 
high sea transport NT/MFN/ 
SMBD CBTS/
I For automotive products, the freight  and insurance costs will be 
included in the value of exports and subtracted from the value of 
imports if these services are provided by Mexican companies.  WT/REG289/1 
 Page 81 
 
 
  N# Sector1 Obligations Mode Description/Reduction of Restriction 
55. Railway transportation NT I Foreign investors' pa rticipation in a Mexican enterprise authorized to 
provide railway services is limite d to 49%.  For participation above 
this threshold a permit is required. 
41. Railway transport - railway crew NT CBTS Railway crew members must be Mexican nationals. 
46. Pipeline transport - non-energy 
pipelines NT/LP CBTS The concession required to build and operate pipelines carrying 
goods other than energy or basic petrochemicals can be granted only 
to Mexican nationals and Mexican enterprises. 
56. Auxiliary services - energy - 
petroleum products (supply of fuel 
and lubricants for aircraft, ships, railway equipment) NT I Foreign investors' participati on is limited to 49% in the case of 
Mexican enterprises supplying fuel and lubricants for aircraft, ships 
and railway equipment. 
62. Auxiliary services - transport - 
specialized staff NT/PL CBTS Captains, pilots, owners, mach inists, mechanics and crew of Mexican 
flagged ships and aircrafts as well as port captains, port pilots, 
airfields commanders, and customs ag ents are restricted to Mexicans 
nationals by birth. 
 Other services not included 
elsewhere    
34. Religious services - services of 
religious organizations  NT/LP CBTS The representativ es of religious associations are to be Mexican 
nationals.  The registration of religious organizations is subject to 
establishment requirements. 
 
Note: CBTS:  Cross border trade in services;  I:  Investment;  LP:  Local presence requirements;  MFN:  Restriction to MFN trea tment;  
NT:  National treatment restriction;  SMBD :  Senior management and Boards of Di rectors restriction;  PR:  Performance 
requirements. 
 a In the case of Mexico's reservations, a "concession" means an authorization provided by the State to a person to exploit a na tural 
resource or provide a service, for which Mexican nationals a nd Mexican enterprises are granted priority over foreigners. 
 
Source : List 1, Decision 11, Diario Oficial , 14 January 1997. 
 
__________