WORLD TRADE  
ORGANIZATION   
WT/REG301/1  
26 June 2012 
 (12-3397) 
Committee on Regional Trade Agreements  
  
 
  
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement  
between 
Canada and Colombia 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 This report, prepared for the considera tion of the Free Trade Agreement between 
Canada and Colombia has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties.  The report has been drawn up in 
accordance with the rules and procedures cont ained in the Decision for a Transparency 
Mechanism for Regional Trade Agreements (WT/L/671).  
 Any technical questions arising from this  report may be addressed to Ana Cristina 
Molina (tel: +41 22 739 60 60).  WT/REG301/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
  Page 
 
I.  TRADE ENVIRONMENT 1  
A.  MERCHANDISE TRADE  1  
B.  TRADE IN SERVICES AND INVESTMENT  5  
II.  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 9  
A.  BACKGROUND INFORMATION  9  
III.  PROVISIONS ON TRADE IN GOODS 10  
A.  IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  10  
1.  General provisions 10  
2.  Liberalization of trade and tariff lines 12  
3.  Liberalization schedule by product 14  
4.  Tariff-rate quotas 16  
B.  RULES OF ORIGIN  16  
C.  EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  18  
D.  REGULATORY PROVISIONS ON TRADE IN GOODS  18  
1.  Standards 18  
2.  Safeguard mechanisms 19  
3.  Anti-dumping and countervailing measures 20  
4.  Subsidies and State-aid 20  
5.  Customs-related procedures 20  
6.  Other regulations 21  
IV.  PROVISIONS ON TRADE IN SERVICES AND INVESTMENTS 22  
A.  SCOPE AND DEFINITIONS  22  
B.  DENIAL OF BENEFITS  23  
C.  GENERAL PROVISIONS ON TRADE IN SERVICES  23  
1.  Market access 23  
2.  National and MFN treatment 23  
3.  Commercial presence 24  
4.  Movement of natural persons 24  
5.  Performance requirements 26  
6.  Senior Management and boards of directors 26  
7.  Other investment-related provisions 27  
D.  LIBERALIZATION COMMITMENTS  27  
1.  Canada 28  
2.  Colombia 34  
E.  REGULATORY PROVISIONS  40  
1.  Domestic regulation 40  
2.  Recognition 40  
3.  Subsidies 41  
4.  Safeguards 41  
F.  SECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  41  
1.  Telecommunications 41  
2.  Financial services 42 
 WT/REG301/1 
Page iv  
 
  V.  GENERAL PROVISIONS OF THE AGREEMENT 43  
A.  TRANSPARENCY  43  
B.  CURRENT PAYMENTS AND CAPITAL MOVEMENTS  44  
C.  EXCEPTIONS  44  
D.  ACCESSION AND WITHDRAWAL  45  
E.  INSTITUTIONAL FRAMEWORK  45  
F.  DISPUTE SETTLEMENT  46  
G.  RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  49  
H.  GOVERNMENT PROCUREMENT  50  
I.  INTELLECTUAL PROPERTY RIGHTS  52  
J.  ELECTRONIC COMMERCE  52  
K.  LABOUR  53 
L.  ENVIRONMENT  53  
ANNEX I 54 
ANNEX II 58 
ANNEX III 60 
ANNEX IV 61 
 
  WT/REG301/1 
 Page 1 
 
 
   
 
Key Facts 
 
Parties to the Treaty:  Canada and Colombia  
 
Date of Signature:  21 November 2008 
 Date of Entry into Force:  15 August 2011 
 
Date of Notification:   7 October 2011 (goods and services)  
 End of Implementation: 2027 (Canada) and 2032 (Colombia), goods  
 
  
I. TRADE ENVIRONMENT 
1. The Free Trade Agreement (hereafter "the Ag reement") between Canada and Colombia, 
which covers goods and services, is the seventh Regi onal Trade Agreement (RTA) notified by Canada 
and the eighth notified by Colombia to the WTO.
1 
2. Canada and Colombia differ subs tantially in the size of their economies and their participation 
in world trade.  In 2010, Canada’s GDP amounted to  US$1,574.1 billion, about five times bigger than 
that of Colombia (US$ 288.2 billion).  Canada was the world’s 13th largest exporter with 
US$385.8 billion worth of exports and the 11th largest importer with imports of US$391.3 billion.  As 
for Colombia, it ranked 57th in terms of exports (US$39.8 billion) and 53rd for imports 
(US$40.7 billion).2   
3. With regard to services, exports from Canada amounted to US$67.4 billion in 2010, making 
the country the world’s 18th largest exporter of services.  In the same year, Canada was the 13th largest 
importer with imports worth US$90.0 billion.  Colo mbia exported US$4.4 billion worth of services 
and imported US$7.8 billion, ranking respectively 69th and 58th in the world.3 
A. MERCHANDISE TRADE  
4. Trade between the Parties is modest and accounts for a small share in each Party's trade.  In 
2010, exports to and imports from Canada represented,  respectively, 1.3% and 2.0% of Colombia's 
total exports and imports, ma king Canada Colombia’s 13th and 11th largest export destination and 
import source.  As for Co lombia, it was Canada’s 23rd and 33rd largest export and import partner with 
0.2% of its total exports and imports. 
5. Charts I.1 and I.2 show global and bilateral trends in merchandise trade for each Party for the 
                                                      
1Source: WTO Regional Trade Agreements Database, 
http://rtais.wto.org/UI/Pu blicMaintainRTAHome.aspx . 
2 In terms of shares, Canada's imports and exports represent, respectively, 2.55% in world exports and 
2.61% in world imports, while that of Colombia's, represent 0.26% in world exports and 0.26% in world 
imports. 
3 In terms of shares, Canada's imports and exports in  services represent, resp ectively, 1.83% in world 
exports and 2.56% in world imports, while that of Colombia's, represent 0.12% in world exports and 0.22% in 
world imports.  Source: WTO Statistics Database, Colomb ia Trade Profile and Canada Trade Profile (2011). WT/REG301/1 
Page 2  
 
  2000-2010 period.
4  Canada's total exports and imports  almost doubled between 2002 and 2008, 
amounting to US$455.6 billion and US$408.8 billion, r espectively, in 2008.  During that period, 
Canada boasted a trade surplu s ranging from US$30.1 billion (in 2002) to US$46.9 billion (in 2008).  
Exports and imports fell sharply in 2009, but picked up in 2010 to reach US$385.8 billion and 
US$391.3 billion.  During these two years, imports  outpaced exports for the first time during the 
surveyed period.  Colombia's merchandise trade more than tripled between 2002 and 2008, with 
exports going from US$11.9 billion to US$37.6 billion, and imports going from US$12.7 billion to US$39.7 billion.  Like for Canada, after falling in 2009, exports and imports  recovered in 2010 to 
reach US$39.8 billion and US$40.7 billion, respectively.   Over 2001-2010, Colombia reported a trade 
deficit ranging from US$13.7 million (in 2005) to US$2.9 billion (in 2007).   
6. Bilateral trade also expanded during this peri od.  Canadian exports to Colombia tripled 
between 2003 and 2008 from US$219.8 million to US$669.2 million, and dippe d in 2009, before 
picking up to reach US$626.0 million in 2010.  Colo mbia's exports also increased between 2003 and 
2010 but growth rates were more erratic, with a ma rked acceleration since 2007.  Since then exports 
expanded rapidly to reach US$532.1 million in  2010, almost doubling its 2007 value of 
US$266.2 million.  Colombia ran a trade deficit with Canada from 2000 to 2010, which widened 
between 2006 and 2008. 
 
0.00.51.01.5
0100200300400500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$billion US$billionChart I.1 - Canada: M erchandise imports from and exports to the 
world and Colombia, 2000-2010
Source : UNSD, Comtrade database.Imports from Colombia
Exports to ColombiaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
                                                      
4 Canada reports to UNSD its exports and imports st atistics in FOB values, while Colombia reports it 
exports in FOB and its imports in CIF.  WT/REG301/1 
 Page 3 
 
 
  0.00.51.01.5
051015202530354045
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$billion US$billionChart I.2 - Colombia: Merchandise im ports from and exports to  the 
world and Canada, 2000-2010
Source : UNSD, Comtrade database.Imports from Canada
Exports to CanadaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
7. Chart I.3 shows the Parties' trade structure by  HS section between 2008 and 2010.  Canada's 
imports from Colombia are dominated by two prod ucts, namely vegetables (44.0%) and minerals 
metals (42.9%), which together accounted for 86.9%  of Canada's bilatera l imports in 2008-2010.  
These industries are also Colombia's top exports wo rldwide.  Colombia's imports from Canada are 
relatively more diverse with vegetables (26.7%), machinery (18.7%), vehicles (13.3%), chemicals 
(12.5%), wood pulp (8.4%) and base metals (5.6 %) accounting for 85.2% of bilateral imports.  
Vehicles and machinery were also Canada's sec ond and third largest export industries, only behind 
minerals. WT/REG301/1 
Page 4  
 
  Chart I.3
Canada and Colombia: product composit ion of merchandise trade, annual 
average 2008-2010
Canada's imports from Colombia Colombia's imports from Canada
Source:  UNSD, Comtrade database.Per cent
Total:  US$ 648 million Total:  US$ 765 million
Total:  US$ 374 billion Total: US$ 38 billion
Total:  US$ 386 billion Total:  US$ 37 billionCanada's global exports Colombia's global exportsCanada's global imports Colombia's global imports 
Machinery
25.2
Vehicles 
16.5
Vegetables 4.4Animal or vegetable fat and oils  1.7
Minerals
27.0Other 
8.7Other 
5.5
Machinery 11.7Prepared foods 3.5
Minerals 11.6
Precious stones 3.6 Minerals
51.1 Vegetables 5.2
Vehicles 14.3Other 
3.8Other 
3.8
Prepared foods 3.4Other 
6.8Vegetables 
26.7
Base metals 5.3Machinery 
24.7Wood pulp 2.5
Prepared foods 6.7Textiles 3.1 Textiles 3.7Precious stones 2.6Other 
6.1
Optical 3.1
Wood pulp 2.1Chemicals 15.3
Live animals 2.1Vegetables 
44.0Minerals 4.6
Base metals 8.8
Vehicles 15.0Minerals 4.9
Chemicals 6.7Chemicals 2.6 Plastics 2.9
Articles of wood 2.1Vehicles 13.3
Vegetables 10.4Chemicals 4.9Textiles 3.9Plastics 3.8Textiles 1.7
Chemicals 9.0Base metals 6.9Plastics 4.7Miscellaneous 3.3Optical 3.0
Plastics 6.1Minerals 
42.9
Chemicals 
12.5Wood pulp 8.4Base metals 
5.6
Wood pulp 2.3
Prepared foods 3.6Plastics 1.6
Vegetables 2.4
Base metals 
8.5Live animals 2.4Prepared foods 2.3
Wood pulp 4.6Precious stones 4.8Machinery 
18.7Optical 1.9
Machinery 2.7
Plastics 3.6
  WT/REG301/1 
 Page 5 
 
 
  B. TRADE IN SERVICES AND INVESTMENT  
8. Chart I.4 depicts Canada's trade in services by type of activity in 2000-2010, revealing that 
the country is a net importer.  Services imports grew  faster than exports (especially doubling in value 
between 2002 and 2008 to reach US$90 billion), thus wi dening Canada’s trade deficit.  Exports grew 
by 70%, from US$39.6 billion in 2002 to US$67.4 b illion in 2010.  Both exports and imports of 
services fell sharply in 2009 but recovered the year after.  Canada’s top e xport categories were other 
business services (27.0% of services exports as of 2010), travel (23.3%) and transportation (17.3%) 
services.  The main import sector was travel services (43.8% of services imports as of 2010), followed by transport services (30.3%). 
0102030405060708090
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Chart I.4
Canada, total commercial services trade, 2000-2010
Exports Imports
Transportation services
Travel
Source : UNCTADStat.Communications servicesUS$ billion
ConstructionFinancial services
Computer and information servicesRoyalties and license fees
Other business services
Personal, cultural and recreational 
servicesUS$ billion
Insurance services0102030405060708090
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 
 
9. Chart I.5 shows that Canada is a net provider of foreign direct investments (FDI) and  that 
FDI, both inward and outward, grew at a simila r pace between 2000 and 2010.  During that decade, 
Canada's inward and outward FDI grew by 160% to respectively US$561.1 billion and 
US$616.1 billion in 2010.  WT/REG301/1 
Page 6  
 
  0100200300400500600700
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010inward outward
Source: UNCTADStat.Chart I.5
Canada, inward and outward foreign in vestment stock with world, 2000-2010
US$ billion
 
 
 10. Chart I.6 shows trade in services between the Parties for 2008 and 2 009 during which Canada 
ran a surplus with Colombia.  Its main exports to  and imports from Colombia were travel services, 
followed by transportation services and other business services.  
11. Chart I.7 depicts Canada's inward and outward  investment flows with Colombia and shows 
that for the period 2008-2010 Colombia has been a net recipient of FDI.  During this period outward 
FDI eroded and declined from US$0.99 billion to  US$0.8 billion.  Inward FDI also fell to 
US$0.9 million in 2010 from US$2.8 million in 2008.  WT/REG301/1 
 Page 7 
 
 
  020406080100
Export Import Export Import
2008 2009
Note: Only available data on transportation, travel and other bu siness services, no trade data on the rest of the services sect or.
Exchange rates used for converting Canadian dollar to US dollar were: 1.066 Canadian dollar per US dollar (2008), 1.1419 (2009) and 1.03 (2010).Chart I.6
Canada, bilateral commercial services trade with Colombia, 2008-2009
US $ billion
Transportation services
Travel
Communications servicesFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational services
ConstructionInsurance services
 
 
0.01.02.03.04.05.0
0.00.20.40.60.81.0
2008 2009 2010outward inwardUS $ millionChart I.7
Canada, bilateral outward foreign investment stock with Colombia, 2008-2010
US $ billionUS $ million
Note:   Exchange rates used forconverting Canadian dollar to US dollar were: 1.066 Canadian dollar per US dollar (2008), 1.1419 (2009) and 
1.03 (2010).
Source: Canadian authorities.Left hand scale: Right hand scale:
 
 WT/REG301/1 
Page 8  
 
  12. Chart I.8 reports Colombia's services trade by services categories between 2000 and 2010.  
During this period, Colombia recorded a global tr ade deficit, which deepened after 2003, as imports 
rose markedly to reach US$7.8 billion in 2010, more  than twice its value in 2003 (US$3.3 billion).  
During the same period, exports grew at a similar pace, though from a lower initial value 
(US$1.9 billion) and amounted to US$4.4 billion in  2010.  As of 2010, travel accounted for almost 
half of services export (47.6%), followed by tr ansportation (27.5%) a nd other business services 
(13.4 %).  With regard to imports, the services cate gories with the largest share were transportation 
(35.9% of imports as of 2010), travel (23.3%) and other business (21.0%) services. 
13. Unlike Canada, Colombia’s trade in services e xperienced only a very mild drop in 2009. 
 
012345678
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Chart I.8
Colombia, total commercial services trade, 2000-2010
Exports Imports
Transportation services
Travel
Note: No export data on construction (2000-2010); insurance services (2000-2009). No import data on construction (2000-2005, 20 07). 
Data from 2003-2004 and 2005-2010: preliminary.Source : Colombian authorities.Communications servicesUS$ billion
ConstructionFinancial services
Computer and information servicesRoyalties and license fees
Other business services
Personal, cultural and recreational 
servicesUS$ billion
Insurance services012345678
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 
 
 
14. Chart I.9 depicts Colombia's global investme nt position and shows that during 2000-2010 the 
country was a net recipient of FDI.  The gap between inward and outward stock significantly 
deepened after 2004 to reach almost US$60 billion in 2010.    WT/REG301/1 
 Page 9 
 
 
  0102030405060708090
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010inward outwardChart I.9
Colombia, inward and outward foreign in vestment stock with world, 2000-2010
US$ billion
Source: UNCTADStat .  
 
 
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
15. The Agreement, which covers goods and servi ces, was signed by Canada and Colombia on 
21 November 2008 and entered into force on 15 August 2011.5   
16. The Agreement was notified to the WTO by the Parties on 7 October 2011 under 
Article XXIV:7(a) of GATT 1994 and Article V:7(a)  of the GATS (WT/REG301/N/1).  The text of 
the Agreement, along with its schedules and annexes, is available on the website of:  
 Canada's Department of Foreign Affairs and International Trade: 
"http://www.international.gc.ca/trade-agreem ents-accords-commerciaux/agr-acc/colombia-
colombie/can-colombia-toc-tdm-can-colombie.aspx?view=d " 
   
 Colombia's Ministry of Trade, Industry and Tourism: 
http://www.tlc.gov.co/publicaciones.php?id=681  
 
                                                      
5 Two additional agreements on environmental and labour co-operation were signed in parallel with the 
Agreement and entered into force at the same time. WT/REG301/1 
Page 10  
 
  17. The Agreement consists of 23 chapters, 32 re lated annexes and two appendices as described 
in Table II.1.  
Table II.1 Structure of the Treaty 
Preamble 
Chapter 1 Initial Provisions and General Definitions 
Chapter 2 National Treatment and Market Access for Goods 
Chapter 3 Rules of Origin 
Chapter 4 Origin Procedures and Trade Facilitation 
Chapter 5 Sanitary and Phytosanitary Measure 
Chapter 6 Technical Barriers to Trade 
Chapter 7 Emergency Action and Trade Remedies 
Chapter 8 Investment 
Chapter 9 Border Trade in Services 
Chapter 10 Telecommunications 
Chapter 11  Financial Services 
Chapter 12  Temporary Entry of Business Persons 
Chapter 13 Competition Policy, Monopolies and State Enterprises 
Chapter 14 Government Procurement 
Chapter 15 Electronic Commerce 
Chapter 16 Labour Affairs 
Chapter 17 Environment 
Chapter 18 Trade-Related Cooperation  
Chapter 19 Transparency 
Chapter 20 Administration of the Agreement 
Chapter 21 Dispute 
Chapter 22 Exceptions 
Chapter 23 Final Provisions 
Annex I  The Parties' schedules (existing measures)   
Annex II  The Parties' schedules (future measures) 
Annex III  Financial Services Non-Conforming Measures 
 
Source : The Agreement. 
 
III. PROVISIONS ON TRADE IN GOODS 
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
18. Chapter 2 applies to goods in Chapters 1-97 of the Harmonized System (HS) and consists of 
six sections on national treatment, tariff eliminati on, special regimes, non-tariff measures, agriculture 
and institutional matters.  The Agreement follows  the WTO definition for agricultural products. 
19. The Parties agree to grant national treatment to  goods of the other Party in accordance with 
Article III of GATT 1994, except for measures described in Annex 202 (A rticle 202).  In this Annex, 
Colombia lists measures affecting the taxation of beverages (on a temporary basis), as well as export 
and import controls such as those on coffee (exports) and automotive vehicles (imports).  Canada lists 
measures affecting controls on the exports of logs of  all species and unprocessed fish;  the use of ships 
in its coastal trade;  the internal sale and distri bution of wine and distilled spirits;  excise duties on 
absolute alcohol used in manufacturing and the impor t of certain goods such as arms and ammunition, 
books, printed paper, drawings, paintin gs, prints or photographs of crimin al content.  In addition, both 
Parties exempted actions authorized by the Dispute Settlement Body of the WTO.   
20. The Parties also commit to eliminate customs duties on originating goods according to their 
respective Schedules in Annex 203 and to not incr ease or introduce any customs duty on originating 
products, unless otherwise specified.6  Annex 203 describes the Parties' tariff elimination schedules 
                                                      
6 Article 203 further specifies that a Party can (a) increase a customs dut y to the level established in its 
Schedule following an unilateral tariff reduction;  (b) main tain or increase a customs duty as authorized by the  WT/REG301/1 
 Page 11 
 
 
  and staging categories, as well as Colombia’s tari ff rate quotas (see Sections III.A.3 - 4).  During the 
liberalization process, the Parties agree to apply th e lesser of the preferential rate and the existing 
applied MFN rate and to consider, upon the request of a Party, accelerating the liberalization process 
(Article 203).  As of May 2012, no consu ltations had taken place in this respect.  
21. The Parties also agree on preferential access cond itions for three type of goods (i.e. special 
regimes), goods that are imported on a temporary basis (Article 204), re-enter af ter repair or alteration 
(Article 205)7 and commercial samples of negligible value and printed advertising materials 
(Article 206).  Goods temporally admitted are professional equipment, goods imported for sports 
purposes, goods intended for display or demonstrati on, commercial samples and advertising films and 
recordings (Article 204).  In add ition, Colombia commits to prohibit the sale of any product labeled as 
"Canadian Whisky" and "Canadian Rye Whisky", whic h is not manufactured in Canada in accordance 
with Article 212 on Distinctive Products.  The Pa rties noted that Colombia had not requested 
reciprocal protection from Canada in this regard.8 
22. The Parties agree to not introduce or maintain any import prohibition or restriction except as 
provided in Article XI of the GATT 1994 and measu res listed in Annex 202 (see Paragraph 19).  
Prohibited measures include import price requirements (Article 207).9  A Party may however restrict 
the import from the other Party of a good from a non-party and the re-export of the good of the Party 
to the non-party, when the Party maintains restrictions on the import from or export of such a good to the non-party. 
23. In addition, the Parties commit to not introduce or maintain measures that are inconsistent 
with the Agreement on Import Licensing Procedures and to notify the other Party of any existing 
import licensing procedures following the Agreement’s en try into force.  The Parties must publish any 
new import licensing procedure or change 21 days prio r to its entry into force, and in any case no later 
than this date (Article 208).   Finally, under the Agreement Colombia will continue to apply a Price 
Band System (PBS) to 154 agricultural products, in cluding swine meat, poultry meat, cereals, sugars, 
milk, cream, rice, maize a nd soya beans (Article 218).
10  Annex II presents the complete list of 
products.  Colombia eliminated the PBS on white ma ize, rice, milk and cream (which correspond to 
18 tariff lines) on January 2012 (Decree 185), but can re-introduce it through executive decree (Annex 218). The PBS for swine meat and certain typ es of sugars is to be eliminated in 2023 and 
2027, respectively, according to its liberalization schedule.
11  With respect to fees and formalities, the 
Parties shall ensure that all admi nistrative fees and charged in c onnection with the import and export 
of goods are applied in accordance with Article VIII:1 of the GATT.  They will not require any 
                                                                                                                                                                     
Agreement, the WTO's Dispute Settlement Body or any WT O Agreement, and (c) modify its tariffs outside the 
Agreement on originating goods except from tariff elimination in Annex 203.   
7 Under Article 205, repair or alteration does not include a process that a) destroys the essential 
characteristics of a good or creates a new good;  or b) transforms an unfinished good into a finished good.   
8 Colombia clarified that its commitments on distin ctive products are not co mmitments on geographical 
indicators (GI).  It further noted th at under the Agreement it had not acqu ire any commitments with regard to 
geographical indications and that Article 212 refer to  market access protection fo r distinctive products of 
Canada.  Colombia explained that the difference between the protection of distinctive products and the 
protection of GI protection is that IG protection requires registration with the competent authority 
(i.e. Superintendencia de Industria y Comercio), and the declaration or recognition of such protection confer certain rights as provided by the law. 
9  Except as permitted in enforcement of countervailing and antidumping measures. 
10 Under the price band system an additional ad-valorem duty is applied to a given product if its 
international price falls below a given threshold.  The aim of this system, which is applied in Colombia and 
other Andean Community countries, is to counter fluctuations in international prices.   
11 Swine meat is also one of the products subject  to tariff-rate quotas under the Agreement (see 
Section III.A.4 and Annex IV of this Factual Presentatio n).  In the case of sugars , they correspond to the 
Nandina codes 171019910 and 17019990, which fall under category Y of Colombia's schedule (see Annex III).    WT/REG301/1 
Page 12  
 
  consular transaction related to imports from the othe r Party, including related fees and charges, and 
will publish on the internet a list of the fees and charges currently applied (Article 209).
12 
24. For the customs valuation of goods, the Parties commit to apply rules in accordance with the 
WTO Customs Valuation Agreement and any su ccessor agreement to their bilateral trade 
(Article 211). 
2. Liberalization of trade and tariff lines 
25. The Parties’ tariff elimination schedule and stag ing categories are detailed in Annex 203.  The 
base rates employed in their schedules are the MF N rates applied on 1 January 2007 for Canada and 
1 April 2007 for Colombia.  For both Parties, liber alization started upon the Agreement’s entry into 
force and will be completed by 2027 for Canada  and 2032 for Colombia.  Between 2028 and 2032, 
only tariff reductions (without elimination) are fores een by Colombia (see Table AI.2 in Annex I).  
Canada listed five different staging categories in its tariff elimination schedule.  Colombia employs 
two schedules, one for non-agricultural goods (6 stag ing categories) and the other for agricultural 
goods (29 staging categories), and lists in total 32 different staging categories, of which three are 
identical in both schedules.  Its agricultural sch edule includes staging categories for the fixed 
component of the Price Band System (PBS) of swine meat and certain types of sugars.  Both Parties 
exclude products from liberalization: 117 by Canada and 100 by Colombia.13  In the case of 
Colombia, six tariff lines are subject to tariff reduc tions only.  Annex AIII.1 and AIII.2 list Colombia 
and Canada's staging categories. 
26. Table III.1 on Canada’s tariff lib eralization shows that in 2011 , 68.6% of its schedule were 
already duty free on an MFN basis and corresponded to 83.4% of Canada's imports from Colombia in 
2008-2010.14  Upon the entry into force of the Agreement,  Canada liberalized  another 28.8% of lines 
which accounted for an additional 15. 2% of its imports from Colombia.  Further tariff eliminations 
will take place between 2012 and 2017; and at the e nd of the implementation period in 2027.  By 
2021, after 10 years of implementation, duties on 98.6%  of Canada’s tariff lines will be zero.  In 2027, 
one additional line will be liberalized.  Of the 1 17 lines that will remain dutiable, the majority 
(i.e. 90 lines) will exhibit values higher than 50%.   
                                                      
12 Canada specified that the Canada Border Servi ces Agency (CBSA) imposes two types of fees: a 
charge for special services and a fee for information and records. These fees  and charges are the only export and 
import fees that CBSA levies and are applied in accordance with Article VIII:1 of the GATT.  The information 
regarding these fees as available in the CBSA website at the following addresses: " http://www.cbsa-
asfc.gc.ca/publications/d m-md/d1/d1-2-1-eng.pdf " (Special Services Charge) and " http://www.cbsa-
asfc.gc.ca/publications/d m-md/d1/d1-3-1-eng.pdf " (Fee for Information and Records). 
13 Both Parties include a transversa l agricultural clause which indicat es that if the Trade Promotion 
Agreement between Colombia and the Un ited States (TPA), signed in 2006, en ters into force within two years 
of the Agreement’s entry into force, Canada shall apply to goods with code 17019900 (i.e. certain type of sugars) originating in Colombia, the tariff elimination pe riod prescribed in Colombia’s schedule in the TPA for 
the corresponding good from the TPA’s entry into force.  If the TPA ente rs into force within one year of the 
Agreement’s entry into force, Colombia shall modify the tariff phase-out for beans, whisky, vodka, sugar and 
maple syrup, saccharose, solid sugars (from cane or beet ), high and standard quality beef and bovine meat 
(offals) originating in Canada (Colombia’s tariff schedule, Part ii).  Under this new schedule, beans, high and 
standard quality beef and bovine meat are to be liberali zed in 10 years upon the TPA's entry into force (12 years 
in the Agreement, see Section III.A.4 on TRQs); whisky and vodka are to be liberalized in 10 years (12 years in 
the Agreement, category P), sugar and maple syrup in five years (seven in the Agreement, category F); and 
saccharose and solid sugars in 15 year s (17 years in the Agreem ent, category Y).  If the TPA enters into force 
between one and two years of Agreemen t’s the entry into force Colombia shall apply to a good listed above, 
from the TPA’s entry into force, the tariff e limination period set out above, plus one year. 
14 Of the 8,193 tariff lines, 287 lines (3.5% of the tariff lines) are subject to non- ad valorem  duties 
including specific rates (87), compound (43), mixed (142) and others (15).  For tariff lines with compound and 
mixed rates, the Secretariat has used the ad valorem  part of the line in its calculations.  WT/REG301/1 
 Page 13 
 
 
  Table III.1 
Canada: Tariff elimination commitments under th e Agreement and corresponding average trade  
Duty phase-out period Number of 
lines a % of total lines 
in Canada's 
tariff schedule Value of Canada's imports from 
Colombia  
(2008-2010) in million US$ % of Canada's total imports 
from Colombia 
2008-2010 
MFN duty free (2011) 5,619 68.6 540.1 83.4 
2011 2,359 28.8 98.7 15.2 
2012 1 0.0 0.0 0.0 
2013 19 0.2 0.1 0.0 
2015 12 0.1 0.3 0.0 
2016 17 0.2 0.1 0.0 
2017 48 0.6 0.1 0.0 
2027 1 0.0 8.0 1.2 
Remain dutiable 117 1.4 0.1 0.0 
Total 8,193 100.00 647.4 100.0 
 
a excludes products beyond HS chapter 97. 
 
Note: For tariff lines subject to TRQs at the MFN level, only the out-of-quota duty is included in the calculations. 
 Based on the HS 2007 nomenclature. 
 
Source:  WTO estimates based on data pr ovided by Canada and WTO-IDB. 
 
27. Table III.2 on Colombia’s tariff liberalization show s that in 2011, only 3.6% of its tariff lines 
were duty free on an MFN basis.15  Following the Agreement’s entry in to force, Colombia liberalized 
an additional 63.4% of lines, representing 71.3% of  its imports from Canada  between 2008 and 2010.  
In 2015, Colombia will liberalize another 20.8% of its tariffs lines, accounting for 9.2% of its imports 
from Canada during the same period.  In the follo wing years, additional lines will be eliminated in 
each year until 2028, except in 2019.  Following 10 years of implementation, 97.4% of tariff lines, accounting for 98.3% of its imports from Canada, are to  be liberalized.  By 2028, a total of 98.5% of 
tariff lines and 99.1% of its imports from Canada wi ll be duty-free.  Of the 106 lines that will remain 
dutiable, more than half (i.e. 71 lines) will have  rates ranging between 10%  and 20% and around one 
fifth will exhibit values larger than 50%.
 
Table III.2 
Colombia: Tariff elimination commitments under the Agreement and corresponding average trade 
Duty phase-out period Number of 
lines a % of total lines 
in Colombia's 
tariff schedule Value of Colombia's imports 
from Canada  
(2008-2010) in million US$ % of Colombia's total 
imports from Canada 
2008-2010 
MFN duty free (2011) 264 3.6 97.4 12.7 
2011 4,621 63.4 544.8 71.3 
2015 1,515 20.8 70.5 9.2 
2016 10 0.1 0.0 0.0 
2017 24 0.3 13.2 1.7 
2018 20 0.3 0.0 0.0 
2020 633 8.7 26.3 3.4 
2021 18 0.2 0.1 0.0 
2022 33 0.5 0.1 0.0 
2023 19 0.3 4.4 0.6 
2024 1 0.0 0.0 0.0 
2025 17 0.2 0.1 0.0 
2027 5 0.1 0.0 0.0 
2028 6 0.1 0.4 0.1 
Remain dutiable 106 1.5 6.9 0.9 
Total 7,292 100.0 764.2 100.0 
 
a excludes products beyond HS chapter 97.  
Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the calculations. 
 Based on the HS 2007 nomenclature. 
 
Source:  WTO estimates based on data provided by Colombia.  
                                                      
15 All tariff lines contained in Colombia's sc hedule are subject to ad-valorem duties.    WT/REG301/1 
Page 14  
 
  3. Liberalization schedule by product 
(a) Canada 
28. Table III.3 shows Canada's tariff liberalization by HS section.  At the end of the 
implementation period, 117 tariff lines will remain dutiable, of which almost all fall within 
HS sections I, III and IV (agriculture), except for f our lines from HS Section VI (chemicals).  Average 
preferential tariffs in these sections range between  218% and 229%, most of them applying to live 
animals, animal products and prepared food.  In  chemicals and chemical products, the remaining 
tariffs average 138.3%. 
Table III.3 
Canada: Tariff elimination under the Agreement, by HS section 
HS section and description  MFN 
avg.
% Total 
No. of 
lines a Number of duty-free lines  
No. of lines 
remaining dutiable  
Avg. Final Tariff 
(Dutiable %  
MFN 
2011 
2011 
2012 
2013 
2015 2016 2017 
2027 
I Live animals and animal products 52.4 283 179 32 1 3  1 1  66 228.8 
II Vegetable products 3.8 427 247 180         
III Animal or vegetable fats and oils 8.6 63 21 40       2 218.0 
IV Prepared food etc. 17.6 522 156 315   1 2 2 1 45 228.9 
V Minerals 0.3 174 167 7         
VI Chemicals and chemical products 1.1 1,121 953 163     1  4 138.3 
VII Plastics and rubber 1.9 381 271 107     3    
VIII Hides and skins 1.8 183 149 31     3    
IX Wood and articles 2.4 136 75 61         
X Pulp, paper etc. 0.0 177 177          
XI Textiles and textiles articles 5. 2 1,504 841 639  1 10 8 5    
XII Footwear, headgear 11.1 99 24 51  15  5 4    
XIII Articles of stone 1.9 195 133 60   1  1    
XIV Precious stones, etc. 1.6 65 50 15         
XV Base metals and base metals  
products 1.1 883 736 147         
XVI Machinery 0.8 1,191 1,032 159         
XVII Transport equipment 5.5 237 100 115     22    
XVIII Precision equipment 1.6 324 234 90         
XIX Arms and ammunition 3.8 31 8 23         
XX Miscellaneous manufactured 
articles 5.6 188 59 122    1 6    
XXI Works of art, etc. 1.4 9 7 2         
Total 5.1 8,193 5,619 2,359 1 19 12 17 48 1 117 226.7 
 
a excludes products beyond HS chapter 97. 
 
Note: For tariff lines subject to TRQs at the MFN level, only the out-of-quota duty is included in the tariff-related calculati ons; for the 
calculation of averages, specific duties are excluded and the ad valorem  parts of alternate rates are included. 
Based on the HS 2007 nomenclature. 
 
Source : WTO estimates based on da ta provided by Canada. 
 
29. Chart III.1 compares the average MFN rates with the preferential rates at the end of the 
implementation period at the HS chapter level and shows that both rates are identical.  Tariffs of the order of 200% or more will continue to apply in 12 Chapters.  The Ch apters with tariffs larger than 
250% include cereal preparations, flour, starch and milk (chapter 19), beverages, spirits and vinegar 
(chapter 22) and cocoa and cocoa preparations (chapt er 18).  Specific tariffs apply to sugars and sugar 
confectionary goods.   WT/REG301/1 
 Page 15 
 
 
  050100150200250300
01 02 04 15 16 *17 18 19 21 22 23 35Chart III.1
Canada: Average of dutiable rates, by HS Chapter
Average rate of duty (%)  
HS Chapter
MFN Preferential
Note: HS chapter 17 contain tariff lines with specific duties.
Source :  WTO Secretariat estimates based on data provided by Canada.  
 
(b) Colombia 
30. By 2028, 106 lines will remain dutiable, of whic h almost all are in Sections I-IV except for 
two lines in Section VI (chemicals).  Tariffs appl y mainly to prepared foods, beverage, spirits and 
vinegar, tobacco and manufactured substitutes (S ection IV) and live animals and animal products 
(Section I).  Sections II (vegetable products) and I (live animals and animal products) have the highest 
average tariffs (47.5% and 41.6% respectively).     
Table III.4 
Colombia: Tariff elimination under the Agreement, by HS section 
HS 
section  MFN 
Avg. 
% Total 
No. of 
lines a Number of duty-free lines
No. of lines 
remaining 
dutiable  
Avg. Final 
Tariff (Dutiable 
%) MFN 2011 
2011 
2015 
2016 
2017 2018 
2020 2021 
2022 
2023 
2024 
2025 
2027 
2028 
I 21.9 302  186 25 1   7 2 16 11     54 41.6 
II 13.2 386  318 8 5 4  23  10   12   6 47.5 
III 15.5 64  12 5  8 1 36        2 20.0 
IV 14.0 293  43 84 2 7 18 51 16 7 8 1 3 5 6 42 14.6 
V 5.0 192 1 167 22    2          
VI 5.0 1,419 173 939 247 2  1 53     2   2 10.0 
VII 7.4 315 8 143 78  5  81          
VIII 8.8 78  69 4    5          
IX 7.5 107  42 51    14          
X 8.2 202 14 64 94    30          
XI 10.2 935 1 836 65    33          
XII 13.3 56  32 18    6          
XIII 7.6 168  71 87    10          
XIV. 7.2 57  41 8    8          
XV 6.3 720 18 386 271    45          
XVI 6.0 1,230 35 823 316    56          
XVII 12.4 251 12 71 78    90          
XVIII 5.7 285 2 257 20    6          
XIX 14.9 69  69               
XX 13.3 156  49 34    73          
XXI 15.0 7  3     4          
Total 8.5 7,292 264 4,621 1,515 10 24 20 633 18 33 19 1 17 5 6 106 30.2 
a excludes products beyond HS chapter 97. 
Note: For tariff lines subject to TRQs , only the out-of-quota duty is include d in the tariff-related calculations. 
Based on the HS 2007 nomenclature 
 
Source :   WTO estimates based on data provided by Colombia. WT/REG301/1 
Page 16  
 
  31. Chart III.2 presents a more disaggregated view of Colombia's tariff liberalization by 
HS Chapter.  Tariffs will continue to apply in 13  chapters.  Chapters with the highest tariffs are 
cereals (Chapter 10) and dairy pro ducts, birds' eggs, natural honey and other edible products of animal 
origin (Chapter 4) with preferential tariffs of 47. 5% and 48.9%, respectively.  The Chart further shows 
that cereals are also the only ch apter where the preferential tari ff is lower than the MFN rate. 
0510152025303540455055606570
01 02 04 10 15 16 17 18 19 21 22 23 35Chart III.2
Colombia: Average of dutiable rates, by HS Chapter
Average rate of duty (%)  
HS Chapter
MFN Preferential
Source :  WTO Secretariat estimates based on data provided by Colombia.  
 
4. Tariff-rate quotas 
32. Under the Agreement, only Colombia establis hes tariff-rate quotas (TRQs) for high and 
standard quality beef, bovine meat (offals), swin e meat and beans (Annex 203).  By 2022, after 
12 years of gradual liberalization, TRQs will be elim inated for all but swine meat which will be fully 
liberalized in 2023.  Table AIV.1 in Annex IV lists  the tariff lines subject to TRQs as well as their 
liberalization schedule. At the MFN level, Colomb ia applies TRQs to five products: whey, white 
maize, yellow maize, soya beans, and cotton, all of which except for whey and white maize will be 
eliminated under the Agreement.  At the MFN le vel, Canada applies TRQs to 149 tariff lines, of 
which 64 (i.e. beef/veal, wheat, barley and th eir products) are to become duty-free under the 
Agreement.   For the remaining products (i.e. dairy, pou ltry, margarine and egg products), only the 
in-quota tariff will be eliminated.16 
33. Colombia agrees to implement and administer its  TRQs in accordance with Article XIII of the 
GATT 1994 and the Import Licensing Agreement; and co mmits to ensure that TRQ administration 
procedures are transparent, made available to th e public, timely, non-discriminatory, market-oriented 
and minimally burdensome to trade (Article 219).    
B. RULES OF ORIGIN  
34. In Chapter 3 on Rules of Origin, the Parties characterize originating goods and specify the 
requirements that a good has to meet to acquire originating status.  
35. Provided all other requirements in this Chapter are satisfied, a good qualifies as originating if 
it is:  
                                                      
16 For five of these products, the in-quota tariff was duty-free on an MFN basis in 2011.    WT/REG301/1 
 Page 17 
 
 
  (a) wholly obtained or produced in the territory of one or both of the Parties (as described 
in Article 318); 
(b) produced in the territory of the Parties exclusively from originating materials;  
(c) produced in one or both of the Parties with non-originating materials in full 
accordance with the specifi c rules of origin set out in Annex 301; or 
(d) produced in one or both of the Parties and the value of non-originating materials used 
in its production does not exceed 55% of th e transaction value of the good when these 
materials cannot satisfy the requirements in Annex 301 because both the good and the 
non-originating materials are classified in th e same subheading or heading.  Category 
(d) does not apply to goods in HS Chapters 1 to 24, 50 to 63 and HS headings 39.01 
to 39.14.  
36. Annex 301 contains the specific rules of origin a given good has to meet to acquire 
originating status.  These rules apply to goods at th e HS 6- and 4-digit leve ls and require, depending 
on the product, a change in the tariff classi fication (CTC) at the Chapter (HS 2 digit), 
Heading (HS 4 digit) or Subheading (HS 6 digit) le vel.  Some products, in addition to the CTC, may 
be required to satisfy a restriction on the value (i.e . value test) or weight of non-originating materials, 
or a specific manufacturing condition, such as the use of certain originating inputs or the execution of 
specific operations.  Articles 303 and 304 define the value test and the method for calculating the value of non-originating materials used in the pr oduction of originating goods.  The valuation of 
non-originating materials will be based on the tr ansaction value of the good, and in the case of 
automotive goods in HS 87.01-87.08, the net cost of the good can also be used. 
37. For goods for which a CTC and value of non-originating materials are required, the 
de minimis  provision in Article 307 specifies that a good qualifies as originating if the value of all 
non-originating materials used in its production which do not satisfy the CTC do not exceed 10% of the transaction value of the good.  The condition does not apply to non-originating goods used in the 
production of products in HS Chap ters 1 to 24, unless the non-originating materials fall under a 
different subheading.  For textiles (HS Chapters 50-60), a good will qualify as originating if the total 
weight of non-originating yarns u sed in its production does not exceed 15% of the total weight of the 
good.  For apparel and clothing (HS Chapters 61- 63), originating stat us will be granted if the total 
weight of non-originating yarns used in the produc tion of the component of the good that determines 
the tariff classification, does not exceed 15% (Article 307). 
38. Additional flexibility is provided for textiles and clothing (HS Chapter 50-63) through the 
inclusion of a short supply rule under which the Pa rties can temporarily consider upon request by a 
Party a yarn or fabric from a non-party used in text iles production as originating if such inputs are not 
available in commercial quantities in a timely manner in the territory of the Parties (Article 317). 
39. Full cumulation is permitted between the Parti es provided that non-originating materials used 
in the production of a good satisfy the requirements of Annex 301 entirely in their territories and that 
all other requirements in Chapter 3 are met.  Cr oss-cumulation with a non-party is also permitted, 
provided that each Party has an FTA (in force) with the non-party and that these FTAs contain a 
provision that is equivalent in effect.  When the provisions apply only to certain goods and under 
certain conditions, the Parties can limit such cumu lation to these goods and conditions (Article 306). 
40. Chapter 3 also specifies that operations such as (a) packaging, re-packaging or breaking up 
for retail sale of the good; (b) oiling or applying an ti-rust paint or protective coatings to the good; or 
(c) disassembly of a new good into parts, are not sufficient to confer originating status (Article 302).  
It also includes an absorption provision under wh ich non-originating materials that have acquired WT/REG301/1 
Page 18  
 
  originating status in accordance with Annex 301 are to be treated as originating in the subsequent 
production of another good (Articles 303 and 305).  Orig inating goods in transit and transhipment are 
to maintain their status provided that they do not undergo any further processing in the territory of a 
non-party other than preservation, unloading, or reloading, and that they remain under customs control while outside the territories of the Parties.  Additional provisions in Chapter 3 specify how 
fungible goods and materials (Article 308) , indirect materials (Article 309),
17 sets of goods 
(Article 310), accessories, spare parts and tools (Ar ticle 311), packaging materials and containers for 
retail sale and for shipment (Article 312 and 313) are to be treated when determining the origin of a 
good.  
41. The Parties agree to hold regular consultations to ensure that Chapter 3 is administered 
effectively and to cooperate in its administration in accordance with Chapter 4 (Origin Procedures and 
Trade Facilitation) (Article 316). 
C. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
42. The Parties agree to not introduce or maintain any restrictions on the export or sale for export 
of any good destined for the other Party except as provided in Article XI of the GATT 1994 and for 
measures listed in Annex 202 (Article 207).  Prohib ited measures include export price requirements, 
except as permitted in the enforcement of counterva iling and antidumping measures;  and voluntary 
export restraints inconsistent with Article VI of the GATT 1994, as implemented by the Agreement 
on SCM (Article 18) and the Agreement on impl ementation of Article VI of the GATT 1994 
(Article 8.1).  
43. The Agreement also prohibits the adoption or ma intenance of any tax, duty, or charge on the 
export of any good destined for the other Party, unless such tax, duty, or charge is also applied to 
goods intended for domestic consumption, except for charges applied on Colombian exports of coffee 
and emeralds (Article  210 and Annex 210).  
D. REGULATORY PROVISION S ON TRADE IN GOODS  
1. Standards 
(a) Sanitary and phytosanitary measures 
44. In Chapter 5 on Sanitary and Phytosanitary (SPS)  measures, the Parties affirm their existing 
rights and obligations under the WTO SPS Agreemen t and agree to use the WTO dispute settlement 
mechanism for any disputes regard ing SPS measures (Article 503).  They also agree to establish a 
Committee on SPS measures (Article 504), as well as to avail themselves of all reasonable options to resolve any specific SPS trade-related issue (Article 505). 
(b) Technical barriers to trade 
45. In Chapter 6 on Technical Barriers to Trade (TBT), the Parties affirm their existing rights and 
obligations under the WTO TBT Agreement (Article 602).  The Chapter applies to the preparation, 
adoption and application of
 all standards, technical regulations and conformity assessment 
procedures, including those related to metrology  that can affect trade between the Parties 
(Article 603).  On a Party’s written requ est, country coordinators will initiate  consultations in 
                                                      
17 Indirect material is defined as a good used in the production, testing or inspection of a good but not 
physically incorporated into the good, or a good used in the maintenance of buildings or operation of equipment 
associated with the reduction of a good (e.g. fuel, energy, lubrican ts, greases, gloves, glasses, etc.)  WT/REG301/1 
 Page 19 
 
 
  accordance with the Agreem ent's dispute settlement mechanism (Article 609) on any matter arising 
under this chapter. 
46. Relevant international standards are to be used  by the Parties as a basis for their technical 
regulations and conformity assessment procedures in accordance with Article 2.4 and 5.4 of the TBT 
Agreement (Article 605).18 
47. Each Party shall give positive consideration to  accepting technical regulations of the other 
Party as equivalent to its own, and where a Party do es not accept, it shall, at the request of the other 
Party, explain its decision.  The Parties also agre e to provide non-confidential information to each 
other to assist a Party in the development of a technical regulation (Article 606). 
48. With regard to conformity assessment procedur es, a Party should explain, upon request by the 
other Party, the reasons for its decisions, when  it does not accept the results of a conformity 
assessment conducted in the territory of the other Pa rty, or when it declines a request by the other 
Party to enter into negotiations to conclude an  agreement for recognition of conformity assessment 
procedures (Article 607).   
49. With respect to transparency, the Parties co mmit to notify (electronically) each other their 
proposed or adopted technical regulations and conf ormity assessment procedures and to provide at 
least 60 days to submit comments on the proposed  regulations and procedures (or give positive 
consideration to a reasonable request for extending the comment period).  The Parties shall publish or 
make publicly available (in print or electronically ) their responses to significant comments, no later 
than the date of publication of the final technical regulation or conformity assessment procedure.  A 
Party, upon request by the other Party, can also es tablish or extend the period between the adoption of 
the technical regulation and its application, excep t when such a delay would be ineffective in 
achieving the objectives pursued.  Such request is to be received before the end of the comment 
period following transmission of a pr oposed technical regulation. In addition, each Party shall ensure 
that its transparency procedures allow the other Party to participate in the development of its technical 
regulations and conformity assessment when amendmen ts can still be introduced except where urgent 
problems of safety, health, environmental protection or national security arise or threaten to arise.  
The Parties shall also ensure that their adopted  technical regulations and conformity assessment 
procedures are freely and publicly available on the in ternet.  The Chapter's transparency obligations 
are to be implemented as soon as practicable and no later than two years from the date of the 
Agreements' entry into force (Article 608).  
2. Safeguard mechanisms 
(a) Global safeguards 
50. The Parties may apply global saf eguards and shall resolve any related dispute in accordance 
with Article XIX of GATT 1994 and the WTO Agre ement on Safeguards.  The Agreement does not 
confer any additional rights or obligations on the Parties with regard to actions taken under 
Article XIX of GATT 1994 and the WTO Agreemen t on Safeguards except that imports from the 
other Party can be excluded from the imposition of global safeguards if they are not a substantial 
cause of the serious injury or threat thereof (Article 701). 
(b) Bilateral safeguards 
51. The Parties can apply bilateral safeguards dur ing a ten-year transition period starting in 
                                                      
18 Relevant international standards are to follow, to the greatest possible extent, the principles set out by 
the WTO TBT Committee decisions and recommendations. WT/REG301/1 
Page 20  
 
  2011
19, if as a result of the trade liberalization in the Agreement, the imports of a good cause to the 
importing Party serious injury or a threat thereo f to sectors producing a like or directly competitive 
good.  The safeguard will consist of a suspension of  further tariff reductions under the Agreement or 
the increase of tariffs to a level that will not exceed  the lesser of the (current) MFN applied tariff and 
the base tariff rate set out in the Parties’ schedules (Article 702).  A bilateral safeguard can be applied 
for a maximum of three years and only once.  Upon termination of the safe guard, the applied tariff 
will be the rate that it would have been under the Agreement, but for the action (Article 704).  The 
same good cannot be subject, at the same time, to a bilateral and a global safeguard (Article 701).  
(c) Special safeguards 
52. Colombia may apply an agricultural safeguard in  the form of an additional customs duty on 
bovine meat (offal), beans, and high and standard quality beef originating fro m Canada (Article 217), 
provided certain conditions are met.  The tariff lines associated with these products are listed in 
Annex 217, and correspond to those subject to TRQs (see Section III.A.4 and Annex IV).  For a given 
year, the volume of imports that would trigger the safeguard amounts to 120% of the TRQ quantity for that year, except in the case of high quality b eef, for which the trigger quantity is 150% of the 
TRQ.  The total customs duties applied on such goods including the safeguard, shall not exceed the 
lesser of the applied MFN tariff rate at the time th e measure is adopted and the tariff rate established 
in the Parties' schedule. 
3. Anti-dumping and countervailing measures 
53. Under the Agreement, the application of  antidumping and countervailing measures is 
exclusively governed by the WTO Agreement and the resolution of any related dispute will be 
exclusive to the jurisdiction of the WTO dispute settlement system (Article 706). 
4. Subsidies and State-aid 
54. The Parties agree to eliminate export subsidies on any agricultural good originating in or 
shipped from its territory (directly or indirectly) to th e territory of the other Party.  If a Party was to 
maintain, introduce or re-introduce an export subsidy on  exports to the other Party, the Parties shall, 
upon request of the affected Party, hold consultati ons to agree on the measures that could be adopted 
to counter the effects of the export subsidy.  If no  agreement is reached after 90 days following the 
initial request, the importing Party can a dopt countervailing measures (Article 214).
20  
55. The Parties also commit to consultations in accordance with Article 2104 (see Section V.F for 
more details on the consultation process) to avoid the nullification and impairment of the concessions 
granted under the Agreement when a Party mainta ins, introduces or reintroduces a domestic support 
measure for agricultural goods that the other Party considers distorts bilateral trade (Article 216).  
5. Customs-related procedures 
56. Chapter 4 contains the procedures for the administration of the rules of origin and for 
claiming preferential tariff treatment (Section A) , as well as provisions on trade facilitation 
(Section B).  The Parties commit to establish, no la ter than the date of th e Agreement’s entry into 
force, a certificate of origin to certify that goods imported into their territories qualify as originating 
                                                      
19 Except when the liberalization of the tariff of a go od against which the action is taken occurs over a 
longer period, in which case the transition period is th e period of the staged tariff elimination of the good. 
20 Article 214 also states that the Parties share the objective of multilateral elimination of agricultural 
subsidies and shall collaborate to reach a WTO agreement that eliminat e those subsidies and forbid their 
re-introduction.  WT/REG301/1 
 Page 21 
 
 
  goods.21  Importers in the territory of a Party wish ing to claim preferential treatment for their 
importations must have such a certificate, except for imports with a customs value lower than US$1,000
22 or when the importing Party has waived its requirement (Article 403).  The certificate will 
be valid for four years from the date it was signe d and can apply to a single or multiple imports of 
identical goods occurring within a specified peri od not exceeding one year (Article 401).  The 
procedures to verify the origin of a good are d escribed in Article 406, and include contacting the 
exporter or producer through letters and written ques tionnaires, as well as visits to their premises.  
57. With regard to trade facilitation, the Parties commit to administer their import and export 
procedures for goods based on cost efficiency, inte rnational trade standards, transparency, integrity, 
effective enforcement and compliance mechanisms, ri sk assessment principles, bilateral co-operation 
and consultations with the Parties' trading commun ities (Article 408).  They also include provisions 
on the publication of customs-related information (i.e. laws, regulations and procedures) and the 
establishment of contact points (Article 409);  customs procedures regarding the release of goods 
(Article 410);  the use of information technology to  expedite the release of goods (Article 411); the 
adoption of risk management systems to simplify the release of low-risk goods and improve the 
controls on high-risk goods (Article 412);  the use of electronic customs forms (Article 413);  
technical co-operation (Article 414);  confidentiality of the information collected (Article 415);  the 
adoption or maintenance of separate and expedite d procedures for express shipments (Article 416); 
the imposition of penalties for violation of laws or re gulations relating to this  Chapter (Article 418);  
and on the issuance of advance rulings (Article 419).  Colombia has two years to implement 
Articles 412 (Risk Management) and 413 (Paperless trade administration).   
58. The Parties further agree to establish a Sub- Committee on Trade Facilitation (Article 420).  
6. Other regulations 
(a) Competition and State enterprises  
59. Chapter 13 contains specific provisions on competition policy, designated monopolies and 
state enterprises.  The Parties commit to adopt or maintain measures to prevent anti-competitive 
behavior, take appropriate actions  accordingly, and to cooperate on issues of law enforcement, 
through notifications, consultati ons, positive and negative comity, technical assistance and exchange 
of information, among others (Articles 1302 to 1304 ).  The Parties cannot invoke the Agreement's 
dispute settlement mechanism for any matter arisin g under Chapter 13, except for issues related to 
designated monopolies and state enterprises (Article 1307). 
60. The Parties can designate a monopoly (i.e. privat ely owned or government) but must ensure 
that it:  (a) does not act in a manner that is in consistent with the Agreement wherever such a 
monopoly exercises any governmental authority23 in connection with the monopoly of a good or 
service; (b) undertakes its activiti es in accordance with commercial considerations; (c) provides 
non-discriminatory treatment to covered investments, goods or service suppliers of the other Party;  
and (d) does not engage in anticompetitive practic es, that affect covered investments, in 
non-monopolized markets in its territory (Article 1305). 
                                                      
21 The certificate of origin has been establis hed by both Parties and can be found at 
https://www.mincomerc io.gov.co/tlc/publi caciones.php?id=16157  (Colombia) and " http://www.cbsa-
asfc.gc.ca/publications/forms -formulaires/menu-eng.html " (Canada).   
22 Or its equivalent amount in Colombian pesos or Canadian dollars.  In this case, the Parties could 
request a statement from the expor ter certifying that the good qualifies as an originating good.  
23 Such as the power to grant import or export licenses, impose import quotas or fees. WT/REG301/1 
Page 22  
 
  61. The Parties can maintain or establish state enterp rises, but must ensure that such enterprises 
grant non-discriminatory treatment to covered investments when selling their goods or services; and operate in accordance with the Ag reement's obligations in Investme nt (Chapter 8) and Financial 
Services (Chapter 11) when they exercise any delegated governmental authority (Article 1306). 
IV. PROVISIONS ON TRADE IN SERVICES AND INVESTMENTS 
A. S
COPE AND DEFINITIONS  
62. Trade in services is governed by Chapter 9 (Cro ss-Border Trade in Services) together with 
Chapter 10 on Telecommunications, Chapter 11 on  Financial Services (self-contained chapter), 
Chapter 12 on Temporary Entry for Business Persons and Chapter 8 on Investments.  These Chapters 
are complemented by Annexes I, II and III, which cont ain the Parties' lists of  reservations.  Annexes I 
and II contain reservations for existing and future  measures, and Annex III reservations specific to 
financial services.  
63. Chapter 9 applies to measures adopted or mainta ined by a Party affecting cross-border trade 
in services by service suppliers of the other Party (A rticle 901).  The definition of cross-border trade 
in services covers GATS modes of supply 1, 2, an d 4 (Article 913), thus excluding the supply of a 
service in the territory of a Party by a covered invest ment (i.e. mode 3), which is treated separately, in 
Chapter 8.  Chapter 9 does not apply to: 
(a) financial services (covered by Chapter 11);   
(b) air services and related services supporting activ ities to air services except for aircraft 
repair and maintenance services, selling and marketing of air transport services, and computer reservation system services
24;  
(c) government procurement by a Party or a state company;  and 
(d) subsidies or grants by a Party, includ ing government-supported loans, guarantees and 
insurances);    
 64. Chapter 9 does not impose any obligation on the Par ties with respect to a national of the other 
Party seeking access to its employment market or em ployed on a permanent basis in its territory, nor 
confer any right on that national with respect to that access or employment. 
65. Chapter 10 on Telecommunications applies to (a) access to and use of public 
telecommunications transport networks or services and (b) its suppliers; (c) other related-measures 
and (d) to value-added services (Article 1001).  It do es not apply to the transmission by any means of 
telecommunications including broadcast and cable di stribution of radio or television programming 
intended for reception by the public (for a detailed description see Section F.1). 
66. Chapter 11 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 servi ces (for a detailed description see Section F.2). 
67. Chapter 12 on the temporary entry of business pe rsons aims at facilitating the movement of 
business persons on a reciprocal basis by establis hing transparent criteria and procedures (for a 
detailed description see Section C.4).   
68. Finally, Chapter 8 on Investments applies to measu res by a Party affecting (a) the investors of 
                                                      
24 Aircraft repair and maintenance services, selling and marketing of air transport services, and 
computer reservation system services  are also services covered in the GATS according to the GATS Annex on 
Air Transport Services.  WT/REG301/1 
 Page 23 
 
 
  the other Party;  (b) covered investments25;  and (c) all investments in the territory of the Party with 
respect to performance requirements, health, safety and environmental measures and corporate social responsibility (Article 802).  This Chapter also covers measures relating to bonds or financial 
securities, to the extent that they are a covered i nvestment.  It does not appl y to measures covered by 
Chapter 11 on financial services.  In addition, the provisions on market access and domestic 
regulations from Chapter 9 are incorporated in this Chapter and apply to measures adopted or 
maintained by a Party affecting the supply of a service in its territory by an investment of the other 
Party.  In case of any inconsistency between this and another Chapter, the other Chapter will prevail 
to the extent of the inconsistency (Article 802).  
B. D
ENIAL OF BENEFITS  
69. Under Article 911, a Party can deny the benef its of Chapter 9 (on Cross-Border Trade in 
Services) to a service supplier of the other Party if the supplier is an enterprise owned or controlled by 
nationals of a non-Party, and the denying Party prohib its transactions with that non-Party.  It can also 
deny these benefits if the service supplier is a co mpany that has no substantial business operations in 
the territory of the other Party and is owned or co ntrolled by persons of a non-party or the denying 
Party.   
70. Under Article 814, a Party can deny the benefits of Chapter 8 (on Investments) to an investor 
of the other Party that is a company of that Party, and to its investments, if the company is owned or 
controlled by investors of a non-Party or of the denying Party and the company is not engaged in 
substantial business activities in the Party's territory under whose law it is constituted or organized.  A 
Party can also deny these benefits to an investor of  the other Party and to its investments, if that 
investor is a company owned or controlled by investors of a non-Party, and the denying Party 
prohibits transactions with that non-Party.  
71. In the area of financial services, a Party may also apply provisions on the denial of benefits of  
Articles 814 and 911 (described above) as they are incorporated in Chapter 11.     
C. GENERAL PROVISIONS ON TRADE IN SERVICES  
1. Market access 
72. The Parties cannot apply measures that:  (a) limit the number of service suppliers, the total 
value of service transactions or assets, the total num ber of service operations or the total quantity of 
services output, the total number of natural persons that can be employed in a particular service 
sector, or that a service supplier can employ;  or (b) restrict or require specific types of legal entities 
or joint ventures to supply a service (Article 904). 
2. National and MFN treatment 
73. The Parties agree to grant MFN and national treatment to:  
(a) services and service providers of the other Party (Articles 902 and 903); 
                                                      
25 The Agreement defines covered investment as an investment in the territory of a Party of an investor 
of the other Party existing on the date of entry into fo rce of this Agreement, as well as investments made or 
acquired thereafter (Article 838). WT/REG301/1 
Page 24  
 
  (b) investors of the other Party and covered investments with respect to the 
establishment, acquisition, expansion, ma nagement, conduct, operation and sale or 
other disposition of investments in its territory (Articles 803 and 804)
26;  
 
(c) investors of the other Party, financial ins titutions of the other Party and investments 
of investors of the other Party in financial institutions with respect to activities related 
to financial institutions27, as well as to cross-border financial service suppliers of the 
other Party (Articles 1102 and 1103).28  
 
3. Commercial presence 
74. Under Article 905, a service provider of a Party will not be required by the other Party to 
establish 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 
75. Chapter 12 describes the conditions  for the temporary entry of business persons in the Parties' 
territory (Article 1201).29  The Parties' commitments in mode 4 cover more categories than in their 
GATS commitments.30  Conditional on compliance with their immigration requirements and 
according to Annex 1203, the Parties commit to gran t temporary entry and provide a work permit or 
other authorization to:  
(a) Business visitors  seeking to engage in a business activity as set out in 
Appendix 1203.A.  In this case, no work permit or employment authorization shall be required, provided that the business pers on (i) presents proof of nationality, 
citizenship or permanent residence in a Part y;  (ii) presents documents describing the 
activity to be carry out and the purpose of th e entry;  and (iii) demonstrates that the 
proposed business activity is international in  scope and that the business person is not 
seeking to enter the local labour market.  The activities in Appendix 1203.A include 
attending meeting and consultations, co nducting research, purchasing and production 
management personnel, marketing researchers and analysts, sales representatives, transportation operators, customs brokers, af ter-sales or after-lease service personnel, 
and certain general service professionals and technicians. 
                                                      
26 MFN treatment with respect to investment activities does not include dispute settlement mechanisms, 
which are provided for in international treaties or trade agreements. 
27 These activities include the establishment, acquis ition, expansion, management, conduct, operation 
and sale or other disposition of financial institutions and investments. 
28 Differences in market share, pr ofitability or size do not in them selves establish a breach of the 
national treatment obligation.  A Party may also recognize prudential measures of a non-Party in the application 
of measures covered by the Financial Services Chap ter.  Such recognition may be accorded unilaterally; 
achieved through harmonization or other means; or based upon an agreement or arrangement with the non-Party.  
29 Article 1209 defines "business person" as a national of a Party who is engaged in trade in goods, the 
provision of services or investment activities. 
30 Canada's GATS commitments in mode 4 are limite d to business visitors, in tra-corporate transferees 
(i.e. executives, managers and specialists) and profession als (i.e. engineers, agrologi sts, architects, forestry 
professionals, geomatics proffesionals, land surveyors, foreign legal consultants, urban planners and senior computer specialists) (Documents: GATS/SC/16 and GATS/SC/16/Suppl.2/Rev1) .  Colombia's GATS 
commitments in mode 4 cover managers, legal representa tives and technical specialis ts, with the exception of 
the professional services in sub-sect ors. Under the Agreement and the GATS, Colombia also requ ires that back-
office and managerial staff of firms with more than ten employees be nationals, and to restrict the temporary 
movement of certain professionals and technicians.  WT/REG301/1 
 Page 25 
 
 
  (b) Traders and investors, in a supervisory or executive position or involving essential 
skills, seeking to (i) carry on substantial trade in goods and services principally between the Parties or (ii) establish, develop, administer or provide advice or key technical services, to the operation of an investment to which the business person or its company has committed, or will commit, a substantial amount of capital.
31  
 
(c) Intra-company transferees who seek to work as an executive or manager, a 
specialist or a management trainee on professional development.  The Parties may require the business person to be employed by the enterprise in question for at least 
six months within the three-year period prior to the application for admission.
32   
 
(d) Professional and technicians  who seek to engage in an occupation at a professional 
or technical level.  The work authorization will be issued as long as the business person presents (i) proof of na tionality, citizenship or permanent residency of a Party 
and (ii) documents demonstrating that th e business person is seeking to enter the 
other Party to provide pre-arranged professi onal services in the field for which the 
business person has the appropriate qualifi cations.  Appendix 1203.D lists the 
professionals that are not covered by this Chapter, as well as the technicians that are covered.
33 
 
(e) Spouses  of traders, investors, intra-company transferees, professionals or technicians 
that qualify for temporary entry. 
 76. In neither case, will a Party, as a condition for temporary entry (a) require approval 
procedures, labour certification tests or other proced ures of similar effect; or (b) impose or maintain 
any quantitative restriction.    
77.  A Party can refuse to issue a work permit or authorization to a business person if the 
temporary entry of that person negatively affects:  (i ) the settlement of any labour dispute that is in 
progress at the place or intended place of employment;  or (ii) the employment of any person who is involved in the dispute (Article 1203).  The Part y must notify the business person of its decision 
within 30 days after receiving the complete application (Article 1208) and limit any fees for 
processing the application to facilitate trade in goods or services or the conduct of investment 
activities.  In the case of a refusal of a tempor ary entry permit, a Party cannot initiate a dispute 
settlement procedure under Chapter 21, unless the case is a pattern of practice, the business person has 
exhausted all possible administrative remedies availa ble, and the contact points have been unable to 
resolve the issue (Article 1206).
34 
                                                      
31 In the case of Colombia, a "substantial amount of capital" refers to a foreign direct investment of not 
less than US$ 100,000 (Resolution 4700 of 2009, Decree 2622 of 2009, Decree 4000 of 2004 and in accordance 
with the general foreign investment and exchange regime). 
32 In its GATS schedule, Canada requires that intra-co rporate transferees be employed for at least one 
year prior the transfer and limits th e period of stay to three years. 
33 In the case of professionals, the chapter excludes all education,  health and social services 
occupations and related occupations; all professional oc cupations related to cultural industries; directors in 
recreation, sports and fitness program and services; ma nagers in telecommunication carriers, postal and courier 
services, manufacturing, utilities, construction and tran sportation; and judges, lawyers and notaries except 
foreign legal consultants. Appendix 1203.D also provides with a list of 19 types of technicians that are covered 
by the Chapter, which includes tech nicians in construction, electricians, plumbers, co mputer an information 
system technicians, sale agents, chefs, among others. 
34 Administrative remedies are considered to be exhausted if a final determination in the matter has not 
been issued by the competent authority  within one year from the beginning of the administrative procedure, and 
that the failure to issue a determination is not attributable to a delay caused by the business person. WT/REG301/1 
Page 26  
 
  78. Article 1204 requires that explanatory documen tation regarding requirements for temporary 
entry be made available no later than six months  following the Agreement's entry into force, and 
Article 1205 provides the contact points in Canada and Colombia, as well as their responsibilities, 
which include the implementation and ad ministration of this Chapter.   
5. Performance requirements  
79. Article 807 prohibits any of the following performance requirements, as well as the 
enforcement of any undertaking, affecting the invest ment activities of an investor of a Party or of a 
non-Party in its territory:  
(a) to export a given level or percentage of goods or services; 
(b) to achieve a given level or pe rcentage of domestic content;  
(c) to purchase, use or accord a preference to  goods produced in its territory, or to 
purchase goods from persons in its territory; 
(d) to relate in any way the volume or value of  imports to the volume or value of exports 
or to the amount of foreign exchange in flows associated with such investment; 
(e) to restrict sales of goods or services in its territory that such investment produces or 
supplies by relating such sales in any way to the volume or value of its exports or 
foreign exchange earnings; 
(f) to transfer technology, a production process  or other proprietary knowledge to a 
person in its territory; or 
(g) to supply exclusively from the territory of  the Party the goods that such investment 
produces or the services it supplies to a spec ific regional market or to the world 
market. 
80. The Parties cannot make the receipt or contin ued receipt of an advantage related to an 
investment in its territory of an investor of a Party or a non-Party conditional on the requirements in 
(b), (c), (d) and (e).  Article 807(4)(a) clarifies that the performance requirements obligation does not 
prevent the Parties from conditioning the granting of  advantages on compliance with a requirement to 
locate production, provide a service, train or employ workers, construct or e xpand particular facilities, 
or carry out research and development, in their territories. 
81. The requirement in (f) can be applied when it is imposed by a court, administrative tribunal or 
competition authority to remedy an alleged violation of competition laws or to act in accordance with 
other provisions in the Agreement. 
6. Senior Management and boards of directors  
82. A Party cannot apply nationality conditions to  senior management positions of a company 
that is a covered investment but can require that a majority of its board of directors, or any committee 
thereof, be of a particular nationality, or resident  in the territory of the Party, provided that the 
requirement does not impair the ability of the inv estor to exercise control over its investment 
(Article 808). 
83. In financial services, the Parties cannot apply nationality conditions to the senior managerial 
or other essential personnel of fina ncial institutions of the other Party, nor require that more than a 
simple majority of its board of directors be compo sed of nationals or residents of the Party, or a 
combination thereof (Article 1108).  
 
  WT/REG301/1 
 Page 27 
 
 
  7. Other investment-related provisions  
84. In addition to the provisions on the denial of benefits, performance requirements, senior 
management and board of directors, MFN and na tional treatment, Chapter 8 on investments includes 
provisions dealing with compensation for losses (Art icle 806), transfers (Article 810 and its Annex), 
expropriation (Article 811 and its  Annex), special formalities and information requirements 
(Article 812), subrogation (Article  813), health, safety and environm ental measures (Article 815) and 
corporate social responsibility (Article 816). It also  provides procedures for the settlement of disputes 
between an investor and the host Party (Articl es 818-837) and of disputes regarding a contract 
between the Colombian government and a Canadian investor (i.e. juridical stability contract) (Article 839) (see Section V.F). 
D. L
IBERALIZATION COMMITMENTS  
85. The liberalization of trade in services and in vestments follows a "neg ative list" approach, 
which means that provisions in Chapters 8 and 9 appl y to all sectors, unless otherwise specified in the 
Parties' lists of reservations.  For financial services,  a "negative list" approach  is also followed except 
for cross-border trade in or supply of financial ser vices where the Parties have specified the covered 
sectors on a positive basis in Annex 1105 (Article 1109).35    
86. Annexes I and II to the Agreement contain the reservations on existing and futures measures 
with respect to national and MFN treatment, market access, local presence, performance 
requirements, and senior management and board of  directors (Articles 809 and 906) in cross-border 
trade and investments.  Annex III lists the financia l services reservations with respect to existing and 
future measures that do not conform with the articles on national and MFN treatment, right of 
establishment, cross-border trade or senior management  and board of directors.  The same Annex also 
lists Parties’ specific commitments in this area. 
87. Moreover the Agreement contains a broad cultural carve out, which is included in Chapter 22.  
According to this exception, the Agreement does not cover measures adopted or maintained by either 
Party with respect to cultural industries except as  provided in Article 203 (on Tariff Elimination) 
(Article 2206).36  Canada pointed out that it considers a udio-visual services, recreational and cultural 
services as well as certain subsectors in the categor y "other business services " such as advertising 
services, photographic services, printing and publishing services, as services related to culture.37 
88. As mentioned previously, Chapter 9 and Anne xes I and II cover mode 4, but for clarity 
purposes liberalization commitments described in  the following sections focus on modes 1-3. 
Commitments (in terms of scope) for Mode 4 are described in detail in section IV.C.4. 
 
                                                      
35 Cross-border trade in (or cross- border supply of) financial servi ces, as defined in the Agreement,  
does not include the supply of a financial service in the territory of a Party by an investment in that territory (mode 3) (Article 1118). 
36 Cultural industries are defined as persons engaged in (a) the publication, distribution, or sale of 
books, magazines, periodicals or newspapers in print or machine readable form but not including the sole activity of printing or typesetting any of the foregoing; (b ) the production, distribution, sale or exhibition of film 
or video recordings;  (c) the production, distribution, sale or exhibition of audio or video music recordings; 
(d) the publication, distribution or sale of music in print or machine readable form; or (e) radiocommunications in which the transmissions are intended for direct reception by the general public, and all radio, television and 
cable broadcasting undertakings and all satellite programming and broadcast network services; (f) production 
and presentation of performing arts; (g) production and exhibition of visual arts; or (h) design, production, distribution and sale of handicrafts. 
37 Canada further noted that in the GATS it did not take commitments in those sub-sectors. WT/REG301/1 
Page 28  
 
  1. Canada 
89.  Under the Agreement, Canada listed 26 reser vations (at the federal level) for existing 
measures, of which seven are horizontal (Annex I).  It also included one reservation at the provincial 
level, under which it reserves the right to main tain all existing non-conforming measures of all 
provinces and territories; these measur es are not listed in the Agreement.
38  
90. Canada also listed 15 reservations on futu res measures: ten sector-specific and three 
horizontal, as well as two non-sector specific reservations for aboriginal and minority affairs (Annex II).
39  
91. In financial services, Canada listed one reserv ation with respect to existing measures and 
three with respect to future measures (Annex III). 
92. The following sections refer to Canada's hor izontal and sector-specific commitments for 
modes 1-3 at the federal level. 
(a) Horizontal commitments 
93. In modes 1 and 2, Canada expands its commi tments but maintained its GATS reservation 
with respect to tax measures in scientific research and experimental development services.  It also 
introduced one restriction which reserves import and export permits and transit authorization 
certificates for goods and related services for Canadian residents, enterprises and branches of foreign enterprises.  
94. In mode 3, Canada also made broader commi tments but applies six reservations on existing 
measures, of which two mirror those in the GA TS and one is less restrictive.  The two GATS 
reservations require approval for direct acquisitions  by foreigners of Canadian businesses of a certain 
size (or for any size for business related to Canada's  heritage or national id entity);  and ownership 
(i.e. sale or other disposition) restrictions on assets and equity of existing state enterprises or 
government entities as well as nationality restrictions  on their board of directors. Unlike the GATS, 
the first reservation also applies to indirect ac quisitions.  For federally-incorporated corporations 
Canada requires that 25% of directors be Canadian  residents, instead of 50% (in the GATS), except 
for corporations operating in uranium mining, bo ok publishing or distribution, book sales, and films 
or video distribution, where a simple majority is  required.  For corporations with an ownership 
requirement, directors are also subject to nationality/ residency requirements.  The issue, transfer and 
ownership of shares in federally incorporated corpor ations can be restricted to maintain a certain 
"Canadian" ownership level.
40  The acquisition of land in Albe rta by non-Canadians, foreign 
corporation or governments is restricted.41  Finally, equity participation by non-residents is restricted 
in selected Canadian corporations (i.e. Air Cana da, Cameco limited, Nordion international INC, 
                                                      
38 Canada pointed out that while in the GATS it liste d specific-provincial limitations, in its FTAs all 
provincial non-conforming measures are grandfathered thr ough this reservation.  This meant that, while these 
measures were not listed specifically, they were bound under the Agreement and subject to the ratchet so that 
any future liberalization of those meas ures would be automatically captured.  The fact that a provincial limitation 
specified in its GATS schedule was not listed in the Agreement, it did not mean that the limitation had been removed, or that a newly committed sector was committed with no limitations at the provincial level. 
39 Under the reservation regarding aboriginal affairs, Canada reserves the right to adopt or maintain any 
measure denying Colombian investors and their investments, or Colombian service providers, any rights or preferences provided to aboriginal peoples.  Under the reservation on minority affairs, Canada reserves the right 
to adopt or maintain any measure according rights or preferences to disadvantage minorities.   
40 This restriction has no equivalent in the GATS. 
41 Although a GATS reservation covers land (i.e. Cr own land) investments in Alberta, the reservation 
in the Agreement covers another set of lands.  WT/REG301/1 
 Page 29 
 
 
  Theratronics International limited, Canadian Arsenal s Limited).  GATS restrictions on tax treatment 
and subsidies in the public sector and research are also maintained.    
95. Moreover, Canada reserves the right, for all sector s, to adopt or maintain any measure relating 
to market access that is not inconsistent with its obligations under GATS Article XVI.  It also reserves 
the right to adopt or maintain any measure (with respect to investments) that grants differential 
treatment to countries under an existing interna tional agreement, as well as under any current and 
future agreement relating to aviation, fisheries and ma ritime matters (including salvage).  Finally, it 
reserves the right to adopt or maintain any measure relating to residency requirement for the ownership of oceanfront land. 
(b) Sector-specific commitments 
96. Compared to its GATS schedule, Canada's sector-specific commitments are broader.
42  
Business services, communication services, construction and related engineering services, distribution services, financial services, tourism and travel related services and transport services are subject to reservations in both the GATS and the Agreem ent, but commitments are broader under the 
Agreement.  Commitments were also made in e ducation sevices and in recreational, cultural and 
sporting services, which are not included in the GATS.  
97. Table IV.1 compares the degree of liberalizati on by sector in the Agreement with that in 
Canada's GATS schedule.  In particular, it indicates  whether sectoral commitments in the Agreement 
(except as indicated in the Agreement horizontal reserv ations at the federal level) are improved or the 
same compared to those in the GATS.
43 
98. With regard to reservations at the provincial level, the table indicates when a subsector in 
Canada's GATS schedule is subject to limitations  on market access and national treatment at the 
provincial level.  In the case of the Agreement, this is not possible as provincial non-conforming 
measures are not listed. Canada noted in this respect that they are grandfathered through the 
horizontal reservation at the provincial level (see Paragr aph 89) and thus that the fact that a provincial 
limitation specified in its GATS schedule was not lis ted in the Agreement, did not mean that the 
limitation had been removed, or that a newly co mmitted sector was committed with no limitations at 
the provincial level.  In order to  determine the level of sectoral lib eralization in the Agreement and 
compare it to that in Canada's GATS schedule, Ta ble IV.1 takes into account the reservation at the 
provincial level, and thus for the possibility that  existing non-conforming measures of provinces and 
territories can be maintained.  
 
 
    
 
  
                                                      
42Regarding MFN exemptions under the GATS, Canada included in its list of exemptions the following 
sectors: business (i.e. fishing, agriculture), communications (i.e. audiovisual), transport (i.e. air and maritime 
transport) and financial services (i.e. insurance and insurance related services and banking and other financial 
services).    
43This 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/REG301/1 
Page 30  
 
  Table IV.1  
Canada: Sector-specific liberalization under the Ag reement at federal level, excluding mode 4 
Sectors (CPC Classification) GATS FTA 
Sectoral Commitments 
(except as indicated in 
the GATS horizontal 
commitments) Compared to the GATS, 
sectoral commitments  
(except as indicated in the 
FTA horizontal 
reservations at the federal 
level) in the FTA are: Sector-specific 
reservations 
(or provisions) 
specified in 
1. Business services  partial improved  Annex I, II 
and Article 
2206  
A. Professional Services  partialPL improved  
B. Computer and Related Services                            partial improved   
C. Research and Development Services                           partial improved   
D. Real Estate Services                                        partialPL* the same  
E. Rental/Leasing Services without Operators                  partial the same  
F. Other Business Services  partialPL improved   
2. Communication services  partial improved  Annex II and 
Article 2206 
A. Postal services                                           0 0  
B. Courier services                                           partialPL the same  
C. Telecommunication services  partial improved   
D. Audiovisual services 0 0  
E. Other  0 improved   
3. Construction and related engineering 
services  partial improved Annex II  
A. General construction work for buildings                    partialPL* the same   
B. General construction work for civil engineering           partialPL improved  
C. Installation and assembly work                           full the same  
D. Building completion and finishing work                     full the same  
E. Other                                                  partial improved  
4. Distribution services  partial improved Annex I, II 
and Article 
2206  
A. Commission agents' services                                partial improved  
B. Wholesale trade services  partialPL improved  
C. Retailing services                                                            partialPL improved  
D. Franchising                                                                      partialPL improved  
E. Other partialPL improved  
5. Education services  no commitments improved  Annex II 
A. Primary education services                                 0 improved    
B. Secondary education services                               0 Improved   
C. Higher education services                                  0 Improved   
D. Adult education                                            0 Improved   
E. Other education services                                   0 Improved   
6. Environmental services  full the same - 
A. Sewage services                                           full the same  
B. Refuse disposal services                                  full the same  
C. Sanitation and similar services                           full the same  
D. Other full the same  
7. Financial servicesa partial improved Annex III  
A. All insurance and insurance-related services               partial improved  
B. Banking and other financial services partial improved  
C. Other 0 0  
8. Health related and social services no  commitments  no liberalization Annex II 
A. Hospital services 0 0  
B. Other Human Health Services                               0 0  
C. Social Services                                            0 0  
D. Other 0 0  
9. Tourism and travel related services  partial improved Annex II 
A. Hotels and restaurants (including catering)                   partialPL* the same   
B. Travel agencies and tour operators se rvices               partialPL* the same  
C. Tourist guides services                                   0 improved   
D. Other 0 improved   
Table IV.1 (Cont'd) WT/REG301/1 
 Page 31 
 
 
  Sectors (CPC Classification) GATS FTA 
Sectoral Commitments 
(except as indicated in 
the GATS horizontal 
commitments) Compared to the GATS, 
sectoral commitments  
(except as indicated in the 
FTA horizontal 
reservations at the federal 
level) in the FTA are: Sector-specific 
reservations 
(or provisions) 
specified in 
10. Recreational and cultural and sporting 
services no commitments improved  Annex I and  
Article 2206 
A. Entertainment services  0 0  
B. News agency services                                       0 0   
C. Libraries, archives, museums and other cultural 
services    0 improved   
D. Sporting and other recreational services                   0 improved   
E. Other  0 0  
11. Transport services  partial improved Annex I, II 
and Article 
901 
A. Maritime Transport Services  partial improved  B. Internal Waterways Transport  0 improved 
C. Air Transport Services  partial improved  
D. Space Transport                                            0 improved   
E. Rail Transport Services  partialPL improved   
F. Road Transport Services partialPL the same   
G. Pipeline Transport  0 improved   
H. Services auxiliary to all mode s of transport  partial improved  
I. Other Transport Services  0 improved  
12. Other services not included elsewhere  no commitments improved - 
 
a  subject to a positive-list approach. 
PL For this sub-sector, Canada listed limitati ons at the provincial level in the GATS. 
PL* For this sub-sector, the only limitations that Canada  listed in the GATS were at the provincial level. 
 
99. For business services, Canada expands sectoral c overage in computer and related services, 
research and development services.  In professional services, it expanded the sectoral and modal coverage of legal services, lim ited under the GATS to modes 1, 2 a nd partially 3 for legal advisory 
services and the practice of foreign legal consultancy services for international  and third country law.  
Residency requirements for patent and trade-mark agents were maintained.
44  Sectoral coverage is 
also expanded in taxation services, which in th e GATS exclude related legal services.  Broader 
commitments are made in accounting, auditing a nd bookkeeping services in mode 3 but residency 
requirements for auditors or members of the firm of accountants auditing a bank45, insurance 
company, cooperative credit association, trust or  loan company are maintained.  Additional 
commitments were also made in architectural se rvices (for mode 3). Canada also bound veterinary 
services as well as other professional services (excluding health related professions) in sectors where it does not have GATS commitments. 
100. In other business services, Canada made commitments in services incidental to energy 
distribution. In services incidental to fishing, uncommitted under its GATS schedule, it specified two 
reservations, a prohibition on commercial fishing licen ces for majority foreign owned fish processing 
companies; and a reservation on the right to adopt  or maintain any measure with respect to the 
issuance of licences to foreign vessels and with respect to access for fore ign fishing vessels to 
Canada's port, internal waters, territorial sea or exclusive economic zone.  In services incidental to mining, Canada also specifies four reservations.
46  In "Other business services", examination services 
                                                      
44 Registration requirements also apply under the Agreement but according to Canada they are a simple 
formality, and do not represent a limitation. 
45 For its auditing, a bank must have a firm of accountants.  
46 These reservations comprise licence requirements for oil and gas production; authorizations for any 
oil and gas development project; foreign equity ceili ngs in uranium mining properties, and performance WT/REG301/1 
Page 32  
 
  relating to the export and import of cultural prop erty are reserved for Canadian residents and 
institutions.
47    
101. In communication services, Canada notes that for postal services it continues to reserve 
Canada Post's exclusive privilege for letters48 through its horizontal reservation on market access.  It 
believes that its commitments on postal and courier services are consistent with its GATS 
commitmentse.  In telecommunications services, Canada removed most GATS restrictions in modes 1 
and 3 for basic telecommunications49 services but maintained three reser vations with respect to future 
measures.  It excludes audiovisual services throught  the Agreement's carve-out on cultural industries.   
102. In construction and related e ngineering services, Canada expands sectoral coverage in 
construction work for civil engineering and other related construction services. 
103. In distribution services, sectoral coverage is expanded in commission agents' services, 
wholesale trade services, retailing services, franchi sing and other related distribution services.   
Canada also applies one reservation (not in th e GATS), which allows only Canadian citizens or 
residents and Canadian corporations owned by Cana dian citizens or residents to obtain a licence to 
operate duty-free shops.  The exclusion on the dist ribution, wholesale trade and retailing services for 
books, magazines, periodicals or newspapers, as well as for audio, music and video recordings is 
maintained (Article 2206). 
104. Education, health related and social services ar e covered by the liberalization obligations of 
the services and investment chapters, but are subject to a broad reservation on social services with respect to future measures.  Cana da reserves the right to adopt or maintain any measure for services 
such as social security or insuran ce, social welfare, public education, health and child care to the 
extent that these are social services provided for a public purpose. With respect to education and 
health related services, Canada clarified that th e reservation covers both public and private health 
services, and only public education services; and public  education services and health services are not 
subject to liberalization. 
105. The Parties combine a negative- and positive-lis t approach to schedu ling their commitments 
for cross-border trade in financial services.  A nnex 1105 contains their commitments on cross-border 
trade in or supply of financial services.  In in surance and related services, Canada’s commitments 
apply to insurance of risks relating to maritime  shipping, commercial aviation, space launching, 
freight (including satellites) and goods  in international transit, whic h in its GATS schedule are subject 
to a limitation related to commercial presence.  It also listed reinsurance and retrocession services, services auxiliary to insurance and insurance in termediation, which in the GATS are subject to 
commercial presence and tax requirements.  In  reinsurance and retrocession services, the GATS 
restrictions limiting the purchase of reinsurance serv ices by Canadian insurers (i.e. non-life insurer or 
reinsurer) from a non-resident reinsurer to 25% of the risks undertaken by the insurer purchasing the 
                                                                                                                                                                     
requirements for the Hibernia project and its oil field.  In this respect, Canada noted that the reservation on 
uranium mining does not appear in its GATS schedule because it relates exclusively to uranium mining, which 
is not a service and thus outside the scope of the GATS.  With respect to the other three reservations on services 
incidental to mining, they do not appear in full in Ca nada's GATS schedule as they relate primarily to oil and 
gas production (not services).  Canada indicates that to the extent that these reservations do involve services, it 
has an equivalent limitation listed in the horizontal section of its GATS schedule for Nova Scotia and Newfoundland that relates to petroleum operations in these provinces. 
47 This reservation also applies for Museum servi ces except for historical sites and buildings.  
48 Subject to certain exclusions as described in the Canada Post Corporation Act. 
49 GATS commitments in basic telecommunications were added to Canada's GATS schedule in 1997 
following the negotiations in telecommunications.    WT/REG301/1 
 Page 33 
 
 
  reinsurance is maintained.50  In banking and other financial servi ces, Canada listed the provision and 
transfer of financial informa tion and financial data processing.51  It also listed advisory and other 
auxiliary financial, and credit referen ce and analysis, excluding intermediation.52  Furthermore,  as part 
of its specific commitments, Colombian financial institutions are allowed to provide investment 
advice and portfolio management services to Ca nadian investment funds or fund management 
companies.53  Finally, Canada reserves, among others, th e right to adopt or maintain any measure 
requiring that a foreign bank establish as a subsidiary  in order to manage re tail deposits of certain 
size, as well as any measure requiring that foreign banks  with an authorization to establish a branch in 
that country be members of the Canadian Payments Association.   
106. In transport services, Canada expands its commitments but maintains nine reservations for 
existing measures and four for future measures.  It  made commitments in space, pipeline and other 
transport sectors, not included in its GATS' schedul e.  Canada pointed out that, although not listed, 
limitations at the provincial level exist for exampl e in the case of pipeline transport services.  In 
maritime and internal waterways transport services,  it specified nationality, local presence and legal 
requirements for ship registration, as well as a local presence requirements for shipping conferences.54  
It also maintains some nationality, local presence and certification requirements for ships crew and 
pilots.55 In addition, Canada reserves, among others, the right to adopt or maintain any measure 
relating to the investment in or provision of marine cabotage services.   
107. Broader commitments were made in rail trans port services and services auxiliary to all modes 
of transport while keeping various reservations.  In rail transport services, it liberalized pushing and 
towing services and rail support services, all excluded from the GATS.  In services auxiliary to all 
modes of transport, Canada maintains a GATS nationality or residency requirement on licensed 
customs brokers and their directors in the case of corporations and partners hips.  In air transport 
services, Canada made commitments with respect to investments, while binding its 25% foreign 
investment limitation for providers of air transport services.56  It also bound its regulatory status quo 
in aircraft repair and maintenance services by r eserving the supply of repair and maintenance of 
Canadian-registered aircraft and other aeronauti cal product for Canadian-certified persons (i.e. 
approved maintenance organizations a nd aircraft maintenance engineers).57  In addition Canada 
reserves, among others, the right to adopt or ma intain any measure relating to the selling and 
marketing of air transportation.  Finally according to Canada, its commitments in road transport are 
not broader than those in its GATS schedule, as it continues to reserve the supply of truck or bus 
services between two points in Canada for Canadian s using Canadian registered vehicles, which is 
consistent with its GATS reservation for cabotag e in passenger and freight transportation.   
                                                      
50 Canada's commitments on cross-bo rder insurance and insurance -rel ated services apply only where a 
Colombian entity is not itself or through an agent insuring in Canada a risk. 
51 This sub-sector is covered in "GATS” in the Understanding on Commitments in Financial Services. 
52 These subsectors are also covered by Canada's GATS schedule but subject to limitations. 
53 Except for custodial and execution services unless they are related to managing an investment fund 
and fund management company, as well as certain trustee services. 
54  A shipping conference is an asso ciation of ocean carriers that has th e purpose or effect of regulating 
rates and conditions for goods transportation by those carriers.  
55 Foreign corporations (but not foreign natural pe rsons) are entitled to own vessels on the Canadian 
register; nationality/residency requirem ents to masters, mates, engineers and other seafarers; certification and 
nationality/residency requirements to the suppliers of p ilotage services in Canadian waters; local presence 
requirements for shipping conferences.  
56 Under this reservation, the operation of Canadian aircraft and the supply of commercial air 
transportation services are reserv ed for Canadian operators.   
57 Certification is not provided for persons located outside Canada, except sub-organizations of 
approved maintenance organization that are themselves located in Canada.   WT/REG301/1 
Page 34  
 
  2. Colombia 
108. Under the Agreement, Colombia listed 21 reservations for existing measures, of which five 
are horizontal (Annex I). It also listed three hor izontal, three sector-specific and two non-sector-
specific reservations on future measures, as well as one reservation that covers certain sectors.
58  
Under this "multi-sector" reservation, Colombia reserves the right to adopt or maintain any 
market-access measure consistent with GATS Article  XVI in investigation and security services;  
research and development services; services incidental to energy distribution; distribution, wholesale 
and retail services;  education services;  environmenta l services; health related and social services;  
professional services related to health; libraries, archives and museums;  sporting and other recreational services; and transportation services (Annex II).  
109. In financial services, it listed six and four reservations on existing and future measures, 
respectively (Annex III).   
110. The following sections refer to Colombia's horizontal and sector-specific commitments for 
modes 1-3 at the national level. 
(a) Horizontal commitments 
111. Compared to the GATS, Colombia's horizontal commitments in mode 3 are broader although 
some restrictions remain.  Under the Agreement, foreign firms with a concession from the Colombian 
government must establish a branch in Colombia;  and foreign investors may only make portfolio 
investments in securities in Colombia through a lo cal administrator.  The ownership of shares and 
assets of an existing State enterprise or governmental entity is also restricted;  and the supply of services in the free port of San Andres, Providencia  and Santa Catalina is reserved for persons with 
their main office in that region.
59  The GATS reservations prohibiting foreign investment in waste 
disposal services, the acquisition by foreigners of land in border areas60 and a tax on the remittance of 
profits for foreign corporations are maintained. 
112. Moreover, Colombia reserves the right to adopt  or maintain any measure (with respect to 
investments and cross-border trade) that grants differential treatment to countries under an existing 
international agreement, as well as to countries under  any current or future international agreement 
involving aviation, fisheries and maritime matters (inc luding salvage).  It also reserves the right to 
maintain or adopt any measure affecting the su pply of a service provided in the exercise of 
governmental authority.    
(b) Sector-specific commitments 
113. Compared to its GATS schedule, Colombia's sector-specific commitments are also broader.61  
Construction and related engineer ing services, restricted under the GATS, are fully liberalized.  
Distribution, environmental, transport and recrea tional, cultural and sporting services, not committed 
under the GATS, are partially liberalized under the Agreement.  As for business, communication, 
                                                      
58 The non-sector-specific reservation concern issues related to minorities and ethnic groups and 
traditional expressions. 
59 Colombia noted that with the exception of serv ices suppliers in San Andrés (included in GATS´ 
horizontal measures), these reservatio ns have no equivalent in the GATS because its measures cover aspects that 
are not consolidated in its GATS schedule. 
60 The latter is reflected in the list of future reservations (Annex II). 
61 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), and are 
covered a reservation (Annex II) in the Agreement.   WT/REG301/1 
 Page 35 
 
 
  financial, and tourism and travel related service, all are subject to restrictions in the GATS and the 
Agreement, but commitments under the Agreement are broader. 
114. Table IV.2 compares the degree of liberalizati on by sector in the Agreement with that in 
Colombia's GATS schedule.  In particular, it indicates whether for a given subsector the sectoral commitments in the Agreement (except as indicated  in the Agreement horizontal reservations) are 
improved or the same compared to those in the GATS. 
Table IV.2  
Colombia: Sector-specific liberalization under the Agreeme nt at the national level, excluding mode 4   
Sectors (CPC Classification) GATS FTA 
Sectoral 
commitments 
(except as 
indicated in the 
horizontal 
commitments) Compared to the GATS, 
sectoral commitments  
(except as indicated in the 
FTA horizontal 
reservations) in the FTA 
are: Sector-specific 
reservations 
(or provisions) 
specified in: 
1. Business services  partial improved  Annex I, II 
and Article 
2206 
A. Professional Services  partial Improved 
B. Computer and Related Services                            partial improved  
C. Research and Development Services                           0 Improved 
D. Real Estate Services                                        0 Improved 
E. Rental/Leasing Services without Operators                  partial Improved 
F. Other Business Servi ces  partial Improved 
2. Communication services  partial improved Annex I and 
Article 2206 
A. Postal services                                           0 Improved 
B. Courier services                                           0 improved  
C. Telecommunication services  partial Improved 
D. Audiovisual services 0 0 
E. Other  0 improved  
3. Construction and related engineering services  partial improved  - 
A. General construction work for buildings                    partial Improved 
B. General construction work for civil engin eering            partial Improved 
C. Installation and assembly work                           partial Improved 
D. Building completion and finishing work                     0 improved  
E. Other                                                  partial improved  
4. Distribution services  no commitments improved Annex II and 
Article 2206 
A. Commission agents' services                                0 Improved 
B. Wholesale trade services                                   0 Improved 
C. Retailing services                                                                   0 Improved 
D. Franchising                                                                             0 Improved 
E. Other  0 Improved 
5. Education services  no commitments no liberalization Annex II 
A. Primary education services                                 0 0 
B. Secondary education services                               0 0 
C. Higher education services                                  0 0 
D. Adult education                                            0 0 
E. Other education services                                   0 0 
6. Environmental services  no commitments improved Annex I and II 
A. Sewage services                                           0 Improved 
B. Refuse disposal services                                  0 Improved 
C. Sanitation and similar services                           0 Improved 
D. Other 0 Improved 
7. Financial servicesa partial improved Annex III 
A. All insurance and insurance-related servi ces              partial Improved 
B. Banking and other financia l services partial Improved 
C. Other  0 Improved 
  Table IV.2 (Cont'd) WT/REG301/1 
Page 36  
 
  Sectors (CPC Classification) GATS FTA 
Sectoral 
commitments 
(except as 
indicated in the 
horizontal 
commitments) Compared to the GATS, 
sectoral commitments  
(except as indicated in the 
FTA horizontal 
reservations) in the FTA 
are: Sector-specific 
reservations 
(or provisions) 
specified in: 
8. Health related and social services no commitments no liberalization Annex II  
A. Hospital services 0 0 
B. Other Human Health Services                               0 0 
C. Social Services                                            0 0 
D. Other 0 0 
9. Tourism and travel related services  partial improved Annex I and II 
A. Hotels and restaurants (incl. catering)                   partial improved  
B. Travel agencies and tour operators servi ces               partial Improved 
C. Tourist guides services                                   0 Improved 
D. Other            0 Improved 
10. Recreational and cultural and sporting services no commitments improved Annex II and 
Article 2206 
A. Entertainment services  0 0 
B. News agency services                                       0 0 
C. Libraries, archives, museums and other cultural services 0 0  
D. Sporting and other recreational services                   0 Improved  
E. Other  0 0 
11. Transport services  no commitments improved Annex I, II 
and Article 
901 
A. Maritime Transport Services  0 Improved 
B. Internal Waterways Transport  0 Improved 
C. Air Transport Services  0 0 
D. Space Transport                                            0 Improved 
E. Rail Transport Services  0 Improved 
F. Road Transport Services 0 Improved 
G. Pipeline Transport  0 Improved 
H. Services auxiliary to all modes of transport  0 Improved 
I. Other Transport Services 0 Improved 
12. Other services not included elsewhere  no commitments  improved  - 
 
a subject to a positive-list approach. 
 
115. In construction and related e ngineering services, Colombia liberalized building completion 
and finishing work services, not included in its GATS schedule.  It also expanded sectoral coverage 
and liberalized mode 1 in general construction works for buildings, civil engineering, installation and 
assembly work and other related services.62  
116. Distribution services are partially liberalized as they are covered by the exception on cultural 
industries (Article 2206) and the "multi-sector" reserva tion on future measures wi th respect to market 
access.  
117. In environmental services, Colombia made co mmitments but reserves the right to adopt any 
measure with respect to market access in envi ronmental services established or maintained for a 
public purpose.  It also has a foreign investment restriction in activities related to the processing and 
disposal of toxic, hazardous or radioactive waste not  produced in Colombia, which mirrors part of its 
GATS horizontal commitments. 
                                                      
62 GATS commitments are limited to dams and golf courses in the case of general construction works 
for civil engineering; derrick operations in the case of in stallation and assembly works;  and to pre-erection work 
at building and construction sites in the case of other services.  WT/REG301/1 
 Page 37 
 
 
  118. Transport services, uncommitted under the GATS,  are partially liberalized. Reservations 
apply to all subsectors, except space transport servi ces and air transport services which are to a great 
extent not covered by Chapter 9.63  Colombia specified three reservations on existing measures and 
two on future measures.  The first reservation on existing measures restricts the supply of maritime 
and fluvial transport services to Colombian compani es using Colombian-flag vessels and requires that 
foreign-vessels entering Colombian ports have a legal representative domiciled in Colombia.  
Nationality requirements also apply to pilots providing  maritime and fluvial public services and to the 
crew of any vessel operating in Colombian waters with a permit of more than six months.  The second reserves the concession to supply port services to Co lombian corporations and the supply of such 
services to Colombian flags vessels, except when no Colombian-flag vessel can provide such service.  
The third reserves the supply of public transpor tation services to companies legally established and 
domiciled in Colombia;  in addition, foreign firm s willing to provide multi modal cargo services must 
have an agent or representative domiciled in Colo mbia.  Colombia reserves the right to adopt or 
maintain any future measure regarding the number of concessions and the total number of operations 
for road transportation passenger services, passe nger and freight rail transportation services, pipeline 
transport, services auxiliary to all modes of transport and other transport services; as well as any 
measure that accords differential treatment to countries under any fu ture international agreements 
involving road and river transport services (in cross-border trade). 
119. In recreational, cultural and sporting services, Colombia liberalized sporting and other 
recreational services but reserves the right to adopt or maintain any measure relating to market access for these services. Libraries, archives and museums services are also subject to the "multi-sector" 
reservation on market access, and according to Co lombia, they are covered by the exception on 
cultural industries.  The remaining sub-sectors are covered by the exception on cultural industries and 
therefore exempted from liberalization. 
120. In business services, Colombia made commitments in real estate services, not included in its 
GATS schedule, as well as computer and related services and rental and leasing services without 
operators, which are subject to GATS limitations.  In  computer and related services, "other services" 
were liberalized and GATS restrictions in mode 1 in the other subcategories were  removed.  In rental 
and leasing services without operators, rental and leasi ng services relating to ships, aircrafts, and other 
machinery and equipment were liberalized; and GATS restrictions in mode 1 in rental and leasing 
services relating to transport equipment were lifted.   Partial commitments were also made in other 
services in rental and leasing services without operators.
64  Colombia made also broader commitments 
in the remaining subsectors but maintained its reservations for existing and future measures in 
research and development services, professional services, and other business services.  In research and development services, uncommitted under the GATS, Colombia reserves the right to adopt or maintain any measure relating to market access. Fo r R&D services in natural sciences it requires any 
scientific research project on biological diversity in Colombia to include at least one Colombian 
researcher.  In professional services, Colombia ma de commitments in architectural, engineering and 
integrated engineering services, urban planning an d landscape architectural, dental and veterinary 
services.  It also made broader commitements in legal services (limited in the GATS to legal advisory 
services in foreign and international legislation for modes 1 and 2) except for notary and registrar 
services which are reserved for Co lombian nationals.  It extended its commitments in accounting, 
auditing and bookkeeping services to modes 1, "unb ound", and 3, restricted under the GATS.  The 
only reservation is that accountants be registered and domiciled in Colombia for at least three years 
prior to registration; and have ac quired accounting experience in Colombia of at least one year.  This 
                                                      
63 Chapter 9 does not cover air tansport services and related services in support of air service, other 
than aircraft repair and maintenance services, the selling and marketing of air transport services, and computer 
reservation system ("CRS”) services (Articel 901).    
64 The exception on cultural industries applies to certain activities in the category "Other services" in 
rental and leasing services without operators. WT/REG301/1 
Page 38  
 
  is less stringent than in the GATS which requi res also that the accounting degree comes from 
a Colombian university or a foreign institution recognized by the Colombian government.  Commitments are also made in mode 1 for tax advisory services. Finally, Colombia specifies a reservation on future measures with respect to national treatment, market access and local presence for professional services (excluding accountants and travel agents)
65, as well as with respect to market 
access for professional services related to health.  
121. In other business services, restrictions in m ode 1 are removed for management consulting 
services and all remaining subsectors are liberalized  except for printing and publishing, advertising 
services, and photographic services which are covered by  the exception on cultural industries;  and  
for services relating to fishing, mining, investig ation and security, energy distribution and other 
services (i.e. domiciliary public services) which are subject to reservations.  Artisanal fishing is 
reserved for Colombian nationals a nd to engage in commercial fishing, foreign flagged vessels must 
have a permit and be in association with a Colomb ian enterprise that owns a permit. This is more 
restrictive than the GATS, where services relating to fishing are fully liberalized for modes 1-3.  In 
mining, foreign companies wishing to supply services in excess of one year for exploration and 
exploitation of minerals and hydrocarbons in Colo mbia, must establish a branch, affiliate company or 
subsidiary in the country.  This seems more rest rictive than the GATS, wh ere full commitments are 
made in prospecting, drilling and production services .  Private security and surveillance services are 
reserved for limited liability Colombian companies or cooperatives.  Capital restrictions also apply to 
companies with foreign capital established prior 1994.   The marketing, generation, distribution and 
transmission of electricity are reserved for Colo mbian electrical power companies.  Foreign 
companies willing to supply domiciliary services must be domiciled and legally established in 
Colombia as a corporation.  Finally, Colombia sp ecified a reservation on future measures relating to 
market access in services incidental to energy distri bution and in investigation and security services.     
122. In communication services, courier and ot her communication services, uncommitted under 
Colombia's GATS schedule, were liberalized.  Po stal services were liberalized, except for cross-
border trade, which is subject to a local presen ce requirement for individuals willing to supply 
specialized postal services, intermediation servi ces, deposit services for merchandise, transportation 
services for merchandise under customs control, international cargo services;  or to act as "permanent customs users" or "highly exporting users".  Colo mbia made broader commitments in both basic
66 and 
value-added telecommunication services by lifting GATS restrictions in mode 3.  Mode 1 is partially 
liberalized with concessions for the supply of  telecommunications services still reserved for 
Colombian companies.   
123. In financial services, based on a positive-list a pproach for cross-border trade and a negative-
list approach , Colombia broadened commitments in direct non-life insurance and insurance 
intermediation.  By 201467, the cross-border supply of risk insurance relating to goods transportation 
(i.e. maritime, air, space and freight) and internatio nal transfer, as well as their brokerage shall be 
fully liberalized.  Brokerage of reinsurance and re trocession are also included in its schedule.  In 
                                                      
65 Under this reservation, Colombia reserves "the right to adopt or maintain any measure that would 
allow a Canadian professional, other than an accountant or travel agent, to practice on ly to the extent that the 
government of the province or territory in which that professional conducts his or her primary practice affords 
treatment consistent with the obligations referenced in  this reservation to a Colombian national who otherwise 
satisfies the relevant authorization, licensing, or ce rtification requirements to practice that profession. 
Notwithstanding this, Colombia shall permit such professi onals who were practicing in its territory prior to the 
date of entry into force of this Agreement in accor dance with Colombian law to continue practicing in 
accordance with the existing law" (Annex II). 
66 Basic telecommunication services were excluded from the 1994 GATS but partially liberalized in its 
1997 GATS schedule. Indeed, following the Negotiations on Basic Telecommunications, Colombia added in 1997 partial commitments on basic telecommunications (WTO document GATS/SC/20/Suppl.2). 
67 Or when the necessary modifications to the legislation had been implemented.  WT/REG301/1 
 Page 39 
 
 
  services auxiliary to insurance, it liberalized c onsultancy, risk assessment , actuarial and claims 
settlement services for modes 1 and 2 -excluded from the GATS-.68 A s  p a r t  o f  i t s  s p e c i f i c  
commitments, it made broader commitments in as set management for pension fund managers in 
modes 1 and 3.  Colombia also committed to li beralize mode 2 for insura nce services by 2014, except 
for mandatory insurance, insurance related to manda tory insurance and any in surance services, where 
the policy holder is a Colombian agency.  As fo r reservations, Colombia requires that to supply 
services as an insurance agent, Canadian nationals must be domiciled in Colombia for at least one 
year.  
124. In banking, Colombia liberalized the provision a nd transfer of financial information; financial 
data processing and related software by suppliers of other financial services; and advisory and other 
auxiliary financial services, excluding intermedia tion and credit reference and analysis.  Colombia 
also expands its specific commitments in asset management services, excluded from the GATS, and commits to permit by 2014 the provision of investment advisory and portfolio management services
69 
by Canadian financial institutions to Colombian i nvestments funds.  It has capital requirements for 
established pension funds during the first five y ears, and deposit conditions for monetary amounts 
subject to a court or police order.  It reserves th e right to grant advantages or exclusive rights to 
certain Colombian financial entities and limits th e number of institutions participating in the 
Colombian debt security market.  Colombia also allows the establishment of branches – not in its 
GATS commitments – of Canadian banks and insu rance companies in its territory by 2014 but 
reserves the right to regulate such branches, includi ng their characteristics, structure, relationship to 
the parent company, capital requirement, technical reserves, and obligations regarding risks patrimony 
and their investments.70  
125. Colombia liberalized tourist guide services, restaurants' services and other tourism related 
services, all excluded from its GATS schedule.  In hotel services, GATS restrictions in mode 1 are removed.  For travel agencies and tour operator services, sectoral coverage is expanded save one 
reservation requiring Canadian na tionals supplying these services to be domiciled in Colombia.  
126. According to Colombia, both health related and social services and education services are not 
subject to liberalization.  Both sectors are subj ect to a broad reservation with respect to future 
measures.  The reservation applies to services such  as social re-adaptation, income security or 
insurance, social security , social welfare, public training and ed ucation, health and child care to the 
extent they are social services with a public purpose.   Colombia specified that the reservation covers 
only public health and pub lic education services.  In addition, under the "multi-sector" reservation, 
Colombia reserves the right to adopt or maintain  any measure relating to market access in health 
related and social services, prim ary and secondary education services, and, with respect to higher 
education, requirements relating to the specific type of legal entity that may supply these services,  both public and private.  
 
 
   
                                                      
68 These commitments do not apply to insurances services dealing with risks in Colombia.  
69 These exclude custodial, trus tee and execution services not related to investments funds 
management. 
70 Under its reservations on future measures for financial services, Colombia reserves, among others, 
the right to adopt or maintain any measure requiring that Canadian financial institutions be constituted under the laws of Colombia, as well as any m easure that accords treatement incons istent with MFN treatment under any 
existing international agreement.      WT/REG301/1 
Page 40  
 
  E. R
EGULATORY PROVISIONS  
1. Domestic regulation 
127. Article 907 on Domestic Regulati on mirrors paragraphs 3 and 4 of Article VI of the GATS.71  
If WTO Members were to adopt any new disciplin e aiming at ensuring that measures regarding 
qualification requirements and procedures, techni cal standards and licensing requirements do not 
constitute unnecessary barriers to trade in services, th e Parties agree to review it jointly to determine 
whether it should be incorporated into the Agreement.   
2. Recognition 
128. Article 908 contains provisions on the recogn ition of professional qualifications of service 
suppliers of the other Party, which largely mirror those in Article VII of the GATS (paragraphs 1, 2 
and 3).72  In addition, the Parties shall try to ensure that the professional bodies of (covered) 
professional services (a) exchange information on standards and criteria for the authorization, 
licensing and certification of services providers;  (b) meet within 12 months to discuss the development of an agreement or arrangement on re cognition;  (c) take into account the guidelines for 
the negotiation of mutual recognition agreements (MRAs) described in Annex 908.4 (which are non-
binding but to be considered by the Pa rties when negotiating MRAs nevertheless)
73;  and (d) notify 
the Commission of the conclusion of any agreement or arrangement.  Following the notification, the 
Commission will review the agreement or arrangement to determine whether it is consistent with the 
Agreement in order to be implemented.  The Wo rking Group on Cross-Border Trade in Services 
(CBTS) will determine the professional services sector s to be covered within six months following the 
entry into force of the Agreement.   
129. Furthermore, Article 909 of the Agreement pr omotes the development of procedures for the 
temporary licensing of professional suppliers of the ot her Party, in particular engineers. The Parties 
should consider establishing a work programme to grant temporary licenses to  each others' engineers 
based on recommendations by the relevant professional bodies to the Working Group on CBTS on the development of procedures to permit engineers to  practice in the jurisdiction of each Party, its 
implementation, the engineering specialties to be  considered and other related matters.  The 
recommendations are to be received within 18 months  as of the date of their first meeting of the 
relevant professional bodies, which should take place within the two years following the entry into 
force of the Agreement.  The Working Group on CBTS would request reports on the progress made 
regarding the recommendations and review them to  ensure their consistenc y with the Agreement. 
Once consistency is assured, it will recommend its  implementation within one year.     
                                                      
71 Under GATS Article VI.3, when an authorization is required for the supply of a service on which a 
specific commitment has been made, the Parties commit to review complete applications and inform the applicant of the decision within a reasonable period of time.  U nder GATS Article VI.4, the Parties can 
establish, develop any necessary disciplines with the view of ensuring that measures relating to qualification 
requirements and procedures, techni cal standards and licensing requireme nts do not constitute unnecessary 
barriers to trade in service. 
72 These include education, experience, requ irements met, licences and certifications. 
73 The guidelines include the type of information required by the Commission during the negotiation of 
the MRA, the participants, the purpose and scop e, the recognition conditions, the mechanisms for 
implementation and the licensing requirements if applicable.  WT/REG301/1 
 Page 41 
 
 
  3. Subsidies 
130. Chapter 9 on cross-border trade in services as well as certain provisions on investments 
(i.e. national and MFN treatment, and senior mana gement and boards of directors) do not cover 
subsidies or grants provided by a Party or state enterprise (See Section IV.A).  
4. Safeguards 
131. Under Article 2203, the Parties can temporarily  adopt or maintain measures to restrict 
transfers74 in the event of serious balance-of-payments di fficulties, provided that such restrictions are 
in accordance with the Articles of the Agreem ent of the IMF and Article XII of the GATS.75  Such 
measures cannot take the form of tariff surcharges, quotas, licences or similar m easures, except if they 
are related to cross-border trade in financial services.  Restrictions affecting cross-border trade in 
financial services are also subject to consultations a nd limits in the number of applicable measures.   
F. SECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  
1. Telecommunications 
132. Chapter 10 on Telecommunications applies to any measure relating to public 
telecommunications transport networks or services (i ncluding those relating to its access and use), its 
suppliers and to value-added telecommunication servi ces.  It thus has broader coverage than the 
GATS Telecommunications Annex an d Reference Paper, which cover access to and use of public 
telecommunications transport networks or service s, and basic telecommunications services.  The 
Chapter incorporates and extends some of the provisions found in the GATS Telecommunications 
Annex and Reference Paper.  Measures affecting the transmission of telecommunications including 
broadcast and cable distribution of radio or televisi on programming intended for reception by the 
public are excluded (Article 1001).76  This Chapter will prevail to the extent of any inconsistency with 
another Chapter of the Agreement (Chapter 1014).  
133. With respect to access to and use of public telecommunications transport networks or 
services77, companies of the other Party may perform switching, signalling and processing and 
conversion functions in addition to the activities contained in the GATS Annex on 
Telecommunications (Article 1002).  The Agreemen t goes beyond the Reference Paper, by using a 
broader definition of major supplier (whi ch covers all telecommunication services)78 and including 
regulations on access to the public telecommunica tions transport network and services of major 
suppliers; access to wholesale facilities; resale of ne twork facilities and services;  access to unbundled 
network facilities and services; and options to interc onnect with major suppliers of the other Party 
(Article 1003).  In addition, the provisions on  licences and other authorizations (Article 1006), 
allocation and use of scarce resources (Article  1007), resolution of domestic telecommunication 
disputes (Article 1009) are more detailed than in th e Reference Paper.  The Transparency provision 
(Article 1010) is also more detailed than in GATS Telecommunications A nnex and the Reference 
Paper.   
                                                      
74 Include payments related to investme nts, trade in goods and services.   
75 Such measures can not substantially impede transfers from being made in a freely usable currency at 
a market rate of exchange, when imposed on transf ers related to investments and to trade in goods. 
76 A similar exception is found on the GATS Annex Telecommunications. 
77 The Parties' commitments regarding the access to and use of public telecommunications network and 
services, and the interconnection with major suppliers are subj ect to the list of reservations in Annexes I and II.   
78 A major supplier is defined as a supplier of public telecommunications transport services that has the 
ability to materially affect the terms of participation (having regard to price and supply) in the relevant market for public telecommunications transport ne tworks or services or a result of its  control over essential facilities; or 
the use of its position in the market. WT/REG301/1 
Page 42  
 
  134. Finally, the Chapter introduces new regulator y provisions regarding the availability of 
enforcement procedures (Article 1008), conditi ons for the provision of value-added services 
(Article 1013), the establishment of a regulatory b ody for value-added services and the treatment of 
government-owned telecommunications suppliers (Article 1004), flexibility in the choice of 
technologies (Article 1011) and the reliance on market forces to ensure variety in the supply of 
telecommunication services (Article 1012 on Forbearance).   
2. Financial services  
135. Chapter 11 covers all aspects of trade in financial services, including the Parties' 
commitments and provisions on MFN and national treatment, the right of establishment, senior 
management requirements, the treat ment of financial and confidential information, transparency, 
exceptions, the access to payment and clearing syst ems and an investor-to-state dispute settlement 
mechanism, which are described in Sections IV and V.
79  It also incorporates  provisions on 
Investment (Chapter 8) and Cross-Border Trade in Services (Chapter 9).80  
136. The Chapter applies to measures by a Party aff ecting (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 ser vices.  The Chapter does not prevent a Party from 
exclusively conducting activities or services (a) forming part of a public retirement plan or social 
security system and (b) for the account, or with the guarantee or using the financial resources of the 
Party, including its public entities (Article 1101).  
137. The activities the Parties made commitments in on a cross-border basis are listed in 
Annex 1105 (see Section IV.D).  In addition, Annex III to the Agreement lists their specific 
commitments and existing and futures non-conforming measures81 with respect to national and MFN 
treatment (Articles 1102 and 1103), right of es tablishment (Article 1104), cross-border trade 
(Article 1105) and senior management and board of directors (Article 1108).  Non-conforming 
measures with respect to national and MFN treatment  in Annexes I and II also apply to financial 
services (i.e. investments and cross-border trade), to the extent that the measure or activity in the 
reservation list is covered by Chapter 11.  
138. In addition to the services listed in Annex 1105, a Party allows persons located in its territory, 
and its nationals wherever located, to purchase fi nancial services from cross-border financial services 
suppliers of the other Party located in that territo ry (Article 1105).  This does not require a Party to 
permit these suppliers to do business or solicit in its te rritory.  In the case of Colombia, this provision 
initially excludes insurance services, which are to be  liberalized by 2014, when persons located in its 
territory and its nationals wherever located will be allowed to purchase any insurance service from 
Canadian cross-border financial service suppliers  located in Canada or Colombia, except for 
mandatory insurance, insurance related to mandato ry insurance, and any insurance services having a 
Colombian agency as policy holder.  Moreover, the Parties can require registration of cross-border 
financial service suppliers of the othe r Party and of financial instruments .  Financial institutions of the 
other Party are also permitted to supply any new ser vice that a Party would permit to its own financial 
institutions, in like circumstances, to supply under its domestic law. The Parties may determine the 
                                                      
79 The provision on the settlement of a dispute between an investor and the host country has also been 
incorporated in Chapter 11 (Section B of Chapter 8) but applies only to those claims that a Party has breached 
Articles 810 (Transfers), 811 (Expropria tion) or 814 (Denial of Benefits). 
80 These provisions are those on transfers (Article 810 and 910), expropriation (Article 811), special 
formalities and information requirements (Article 812), de nial of benefits (Articles 814 and 911) and health, 
safety and environment measures (Article 815). 
81 These measures referred to those maintained at the national (as set out in annex I and II), provincial, 
territorial or local level.  WT/REG301/1 
 Page 43 
 
 
  institutional and juridical form used to supply such services and to establish an authorization 
requirement (Article 1106). 
139. The Parties recognise the right of establishment of an investor of the other Party and therefore 
permit an investor of the other Party that does not own or control a financial institution in the Party's 
territory to establish a financial institution in the territory of the other Party in accordance with the 
modalities provided for in that national legisla tion, and without the imposition of numerical 
restrictions or juridical requirements.  The Parti es reserved however the right to impose conditions or 
requirements in connection with the type  of legal entity to be established.   The right of establishment 
also applies to the establishment of additional fi nancial institutions and th e acquisition of existing 
entities.  In the case of additional financia l institutions, a Party can impose conditions on 
establishment and on institutional a nd juridical form (Article 1104).82 
140. Colombia's commitments on the right of indivi duals to purchase any financial service abroad, 
the supply of new services and the right of establishm ent are broader than under the GATS.  Canada's 
commitments mirror those in the "Understanding on Commitments in financial services" (1997). 
141. Nothing in Chapters 8-13, and 15 will preclude  the Parties from adopting or maintaining 
prudential measures to protect investors, depositors, or  persons to who, a fiducia ry duty is owned by a 
financial institution or cross-border financial service supplier or to en sure the stability and integrity of 
the financial system.  Such measures should not be u sed to circumvent the Parties' obligations.  These 
Chapters do not apply to non-discriminatory measures by any public entity related to monetary and 
related credit policies or exchange rate policies (Article 1110).  Finally, unde r certain conditions, the 
Parties can restrict transfers by a financial institution or cross-border financial services 
(see Section V.C.). 
142. The Parties commit to promote regulatory transparency in financial services, publish in 
advance (if possible) any related regulation that they propose to adopt, make available to the 
interested persons all the documentation required fo r the application to supply a financial service and 
follow the procedures regarding such application (Article 1111).   
143. The Parties commit to grant on the basis of na tional treatment, financial institutions of the 
other Party established in its territory access to payment and clearing systems operated by public 
entities and to official funding and refinancing (b ut not lender-of-last-resort) facilities (Article 1113). 
144. The Agreement provides for the establishm ent of a Financial Services Committee 
(Article 1114 and Annex 1114). 
V. GENERAL PROVISIONS OF THE AGREEMENT 
A. TRANSPARENCY  
145. Chapter 19 Section A contains provisions on transparency, and Section B on anti-corruption. 
146. Under Section A, the Parties must ensure that their laws, regulations, procedures and 
administrative rulings with respect to any matter covered by the Agreement are promptly published or made available to the Parties and interested persons  (Article 1901).  Each Party shall also notify, to 
the extent possible, any measure that it considers can substantially affect an interest of the other Party 
(Article 1902), provide information on a measure if requested by the other Party and answers its 
                                                      
82 In the case of Colombia, this represents an improvement with respect to its GATS commitments, as 
government authorization is no longer required for foreign financial entities to operate in the Party and the type 
of authorized legal entity is no longer limited to affiliated companies or subsidiaries.  WT/REG301/1 
Page 44  
 
  questions.  To ensure that their administrative pro ceedings are applied in a consistent, impartial and 
reasonable manner, the Parties also commit to guara ntee that all procedures are in line with domestic 
law and that certain procedural formalities (e.g . provision of prior notice and information, and 
opportunity for hearings) are respected to the extent possible (Article 1903).  According to 
Article 1904, each Party shall also establish or ma intain judicial or administrative tribunal or 
procedures to review and appeal final administrative actions for matters covered by the Agreement.   
147. Section B sets out the anti-corruption measures the Parties agree to adopt or maintain in order 
to establish bribery and corruption activities as criminal  offences in international trade or investment, 
when committed internationally.  In addition there are transparency provisions in individual chapters 
such as Chapter 6 on technical barriers to trade. 
B. C
URRENT PAYMENTS AND CAPITAL MOVEMENTS  
148. The Agreement includes provisions on the moveme nt of payments and capital across borders 
relating to services (supplied on a cross-border basis) and investments.  Under Article 910, the Parties 
allow free and unrestricted flow of all transfers a nd payments relating to the cross-border supply of 
services.  The same obligation applies to transfers relating to covered investments, income, earnings, 
profits and other returns to investments in the territory  of the other Party, provided that the investor is 
engaged (or seeking to engage) in investment activities in the territory of the other Party (Article 810).  
The Parties can deny a transfer or payment in the case of:  (a) bankruptcy, insolvency, or the 
protection of the rights of creditors;  (b) issuing, tr ading, or dealing in securities (including futures, 
options, or derivatives);  (c) financial reporting or re cord keeping of transfer s when necessary to assist 
law enforcement or financial regulatory authorities;  (d) criminal or penal offences;  or (e) compliance 
with orders or judgments in judicial or administra tive proceedings.  In the case of financial services, 
the Parties can apply measures to prevent or limit tr ansfers (by a financial institution or cross-border 
financial service supplier) in order to maintain  the safety, soundness, integrity or financial 
responsibility of institutions or cross-border financ ial services suppliers (Article 1110).  Finally, 
Colombia reserves the right to apply capital controls  to maintain or preserve the stability of its 
currency (Annex 810).83  
C. EXCEPTIONS  
149. Chapter 22 on Exceptions describes the circum stances under which the Parties can derogate 
from the provisions in the Agreement.  The Chapte r covers general and secu rity exceptions, balance 
of payment measures (see Section IV.E.3), taxation,  disclosure of information, cultural industries and 
WTO waivers.   
150. Articles XX of GATT 1994 and XIV of the GATS are incorporated into and made part of the 
Agreement, mutatis mutandis  (Article 2201).  GATT Article XX a pplies to Chapters 2 to 7 and 1584 in 
the case of goods; while GATS Article XI V applies to Chapters 9, 12 and 1585 in the case of services.  
With regard to investment provisions, the Partie s may adopt or enforce measures necessary to (a) 
protect human, animal or plant life or health (including environmental measures);  (b) ensure 
compliance with laws and regulations that are not inconsistent with the Agreement; or (c) conserve 
living or non-living exhaustible natural resources.  They are also permitted to adopt or maintain 
                                                      
83 Such controls shall not affect outward transfer or foreign direct investment. 
84 These are National Treatment and Market Access fo r Goods (Chapter 2), Rules of Origin (Chapter 
3), Customs Procedures and Trade Facilitation (Chapter 4) , Sanitary and Phitosanitary Measures (Chapter 5), 
Technical Barriers to Trade (Chapter 6), Emergency Action and Trade Remedies (Chapter 7) and Electronic 
Commerce (Chapter 15).  
85 These are Cross-Border Trade in Services (C hapter 9), Temporary entry for business persons 
(Chapter 12) and Electronic Commerce (Chapter 15).  WT/REG301/1 
 Page 45 
 
 
  measures with respect to nationals of the other Party in order to preserve public order.  Such measures 
should not constitute a means of arbitrary or unju stifiable discrimination between investments or 
between investors, or a disguised restriction on international trade or investment (Article 2201).    
151. To protect the Parties' essential security inte rests, Article 2202 indicates that nothing in the 
Agreement shall be interpreted as requiring a Part y to furnish or allow access to any information 
contrary to its security interests.  A Party can also apply measures that it considers necessary to 
protect its essential security interests86 and to fulfil its obligations  in accordance with the United 
Nations Charter on the maintenance of international peace or security.  
152. The Agreement does not apply to taxation measu res except as provided for in Article 2204 
and paragraph 2 of Anne x 1101.5 (on the Understandings Rega rding Financial Services Measures ).87  
The Agreement does not affect the rights and obliga tions of the Parties under any tax convention. In 
the case of any inconsistency between the Agreement and the convention, the convention will prevail 
to the extent of the inconsistency.  
153. The Parties are not obliged to furnish or allow access to confidential information whose 
disclosure could impede law enforcement or be c ontrary to a Party's laws protecting the executive 
branch of the government at the cabinet-level, pe rsonal privacy, financial affairs and accounts of 
individual customers of financial institutions.  Th ey are also not obliged to disclose information 
protected under its competition laws or by its co mpetition authority during a dispute (Article 2205). 
154. The Agreement does not cover measures adopted or  maintained by either Party with respect 
to cultural industries, except as provided in Artic le 203 (on Tariff elimination) (Article 2206).  
155. Any measures adopted by a Party in accordance with a WTO waiver  will be considered to be 
in conformity with the Agreement, except as othe rwise agreed by the Parties (Article 2207).    
D. ACCESSION AND WITHDRAWAL  
156. Any country or group of countries can accede to the Agreement subject to the terms and 
conditions agreed between the Parties (Article 2306). 
157. Either Party can end the Agreement by a wr itten notification to the other Party.  The 
termination will take effect six months  after the notification (Article 2305). 
E. INSTITUTIONAL FRAMEWORK  
158. The Agreement foresees the creation of a Jo int Commission that comprises cabinet-level 
representatives of both Parties.  It further establishes a Country Coordinator on TBT88, a Working 
Group for Cross-Border Trade in Servi ces and six Committees, on Trade in Goods89, SPS Measures, 
Financial Services, Investment, Proc urement and Trade Related Cooperation.    
                                                      
86 These include arms trafficking; war and other emergency situations and the non-proliferation of 
nuclear weapons or other nuclear explosive devices. 
87  Under Annex 1101.5(2), a Party may adopt indirect or other taxes levied on cross-border services to 
the extent such taxes are consistent with Articles 902 (Cross-Border Trade in Services - National Treatment), 
903 (Cross-Border Trade in Services - MFN Treatment), 1102, and 1103, subject to Article 2204 (Exceptions - Taxation).   
88 For Colombia, it is the Ministerio de Comercio, Industria y Turismo or its successor; and the 
Department of Foreign Af fairs and International Trade, or its successor, for Canada  (Annex 609.1). 
89 Two sub-committees, one on Agriculture and anothe r on Trade Facilitation are established under the 
Committee on Trade in goods.  A m eeting of the Sub-Committee on Agri culture was held in May 2012. WT/REG301/1 
Page 46  
 
  159. The Commission is the main body of the Agreem ent and is responsible for supervising its 
implementation and developments;  reviewing its functioning, assessing its results, supervising the 
work of all committees, working groups and count ry coordinators;  approving the Panel’s Model 
Rules of Procedure and considering any other matter that may affect the operation of the Agreement.  
It shall establish its own rules and procedures, take all its decisions by consensus and meet once a year 
or upon the request of the Parties (Article 2001).  As of May 2012, the Joint Commission had not met.     
160. The Commission can also adopt interpretive d ecisions binding on panels and tribunals 
established under Article 2106 and Chapter 8 (S ection B); seek advice from non-governmental 
persons or groups; take any other action as agreed  by the Parties, approve revisions, consider 
amendments or modifications;  and determine the re muneration and expenses of the dispute panelists.   
161. Each Party must appoint an Agreement coordinator and notify the other Party within 60 days 
following the entry into force of this Agreement (Article 2002). The Parties noted that they had 
provided the contact information of their Agreemen t Coordinators at the end of 2011.  Agreement 
coordinators will meet as often as required and monitor the work of all committees, working groups 
and country coordinators; recommend to the Comm ission their establishment; coordinate commission 
meetings; follow-up on any decision by the Commi ssion; receive all notifications and information 
provided pursuant to the Agreement; facilitate comm unication between the Parties; and consider any 
matter that may affect the functioning of the Agreement.  
F. D
ISPUTE SETTLEMENT  
162. The Agreement includes state-to-state (Chapter 21) and investor-to-state (Chapter 8, Section 
B) dispute settlement mechanisms.   
163. Except for issues related to Chapters 16 (L abour) and 17 (Environment) and as otherwise 
specified in the Agreement, Chapter 21 on state-to -state disputes settlement applies to any dispute 
related to the interpretation or a pplication of the Agreement or wherever a Party considers that:   
(a) an actual or proposed measure of the other Pa rty is or would be in consistent with its 
obligations;   
(b) the other Party has otherwise failed to carry out its obligations;  or  
(c) any benefit the Party could reasonably have expected to accrue to it under Chapters 2 
(National Treatment and Market Access for Goods), 3 (Rules of Origin), 4 (Origin Procedures and Trade Facilitation), 7 (Emergency Action and Trade Remedies), 14 (Government Procurement), or 9 (Cross-Bor der Trade in Services) is being nullified 
or impaired as a result of the application of any measures of the other Party that is not 
inconsistent with the Agreement (Article 2102).
90 
164. For disputes regarding any matter arising unde r the Agreement and the WTO Agreement (or 
any other agreement of which both Parties are members) the complaining Party may select either forum for the settlement of the dispute.  Once the forum has been selected, it must be used to the 
exclusion of the other (Article 2103). 
165. The Parties are encouraged to resolve dis putes through co-operation and consultations 
(Article 2101).  Under Article 2104, a Party can re quest consultations with the other Party on any 
matter described in Article 2102 (see above).  Failure to  reach an agreement within 45 days of the date 
                                                      
90 Paragraph (c) cannot be invoked for measures covered by Article 2201 on General Exceptions or 
Article 2206 on Exceptions regarding cultural industries.  WT/REG301/1 
 Page 47 
 
 
  of receipt of the request for consultations, or 25 days in urgent cases91, may result in the complaining 
Party requesting, in writing, the establishment of a dispute settlement (DS) panel (Article 2106).  The 
Parties can at any time agree on an alternative method of dispute resolution, such as good offices, 
conciliation or mediation.  
166. Articles 2107-2109 detail the qualifications of pa nelists, panel and chair selection as well as 
the Panel's rules of procedure.  The Panel will consis t of three panelists with expertise or experience 
in law, international trade, disputes’ resolution u nder trade agreements or any other matters covered 
by this Agreement.  Within 90 days from the date the last panelist was designated the Panel will issue 
an initial report.  The Parties can submit their comments within a gi ven timeframe.  After considering 
their comments the Panel can requ est further comments from the Parties, reconsider the report or 
undertake any further examination if necessary (Ar ticle 2110).  The Panel will present its final report 
within the 30 days following the submission of the initial report.  Following receipt of the report, the 
Parties will agree on the resolution of the dispute,  including wherever possible, the removal of the 
measure not conforming to the Agreement or of th e nullification or impairment.  Failure to agree 
within 30 days of the final report will trigger consultations between the Parties to agree on a 
compensation until the dispute is resolved.  Failure  to agree on compensation or if the complaining 
Party believes that the other Party has failed to ob serve the terms of the Agreement may result in the 
complaining Party suspending benefits to the other Party of equivalent effect following notice to the 
other Party.  In suspending benefits the Party should first consider benefits or obligations in the same 
sector(s) as those affected by the measures or other matter that the Panel has found to be inconsistent 
with the obligations under the Agreemen t or to have caused nullification or impairment;  if it feels that 
suspending benefits in the same sector is not practicable or effective it may do so in other sectors.  
The suspension of benefits shall be temporary a nd only applied until the disputed measure has been 
brought into conformity with the Agreement or the dispute has been resolved (Article 2114).  
Chart V.1 summarizes the procedure for the settlement of a dispute. 
167. For disputes in financial services, Article 1116 m odifies slightly certain procedures in Chapter 
21, in particular, the timing for requesting the establishment of a panel and the qualification 
requirements of the three panelists.  In addition to their general qualifications, arbitrators must have 
expertise or experience in financial services law or practice.  When an investor from a Party submits a claim for arbitration invoking an exception regard ing financial services (Article 1110), the matter is 
first referred to the Financial Services Committee for a decision.  If a decision is not made within the 
specified time, a panel can be established to report on the issue (Article 1117).  
168. Chapter 8 describes the settlement of investment disputes between an investor of a Party and 
the other Party (Chapter 8, Section B), including di sputes on juridical stability contracts (Chapter 8,  
Section D).
92  It permits investors (on their own behalf or that of an enterprise) to make a claim and to 
seek redress for damages resulting from a breach of the host Party' obligations. 
169. The Dispute settlement provisions in Chapter 21 and 8 (Section B) do not apply to matters in 
Annex 837.  This includes decisions by Canada rega rding acquisitions that are under review in its 
territory;  decisions to restrict investments in a Pa rty's territory by an investor of the other Party 
covered by a national security exception (Article  2202) and potential derogations from domestic 
health, safety or environmental measures to enc ourage investments from the other Party.    
                                                      
91 These include cases involving perishable goods or goods or services that rapidly lose their trade 
value. 
92 The Agreement defines "Juridical Stability Contract" as a contract between the Colombian 
government and a Canadian investor. WT/REG301/1 
Page 48  
 
   Suspension of the benefits by the Complaining Party (Art.2114) 
Review of compliance and suspension of benefits following 
procedures in Articles 2109 and 2110 (Art. 2115).       
 Panel’s Report with decision (Art. 2115) 
- initial report within 60 days when the request concerns the review of the level of benefits suspended. - initial re
port within 90 da ys when the re quest concerns both, the review of the com pliance and the level of benefits sus pended.Chart V.1. Dispute Settlemen t Mechanism under the Agreement 
  
 
   
 
    
 
    
 
     
 
    
 
     
 
    
 
     
 
    
 
 
 
 
 Notes: 
*Unless otherwise agreed by the Parties. 
**If no appointment is made within this time, 
selection is by lot within 7 days. *** If no agreement is reached, selection is by 
lot within a further 7 days. 
 No compensation is 
requested    
 No compensation  
agreed  Max 20 days
 Compensation 
agreed but failed 
to comply   Compensation is requested: 
Launch negotiations (Art. 2113 )   Max. 30 days*If disagreement  If agreement 
Termination Non-compliance    Implementation  
(Art. 2113)    Clarification request  (Art. 2111)   
Panel response (Art. 2111)   Max 10 daysMax 10 days Panel’s initial report (Art. 2110 ) 
Comments by the Parties (Art. 2110)
 Panel’s final report sent to the Parties
Art. (2110) 15 days* Publication (Art. 2110) If necessary, Panel can request the
views of a Party, reconsider the report,make further examinations (Art. 2110).Max 90 days*Max 15 days
 Establishment of Terms of 
Reference (ToR) if different 
than default ToR (Art. 2109).  Consultations
Art. (2104) 
 Max. 45 days or
 25 days in cases of urgency  Alternative methods of dispute resolution 
(i.e. Good offices, conciliation or mediation)  
Art. (2105) 
 Request for establishment of DS Panel
Art. (2106) 
 Composition of DS Panel (Art. 2108)
Panel selection: appointment of panelist within 30 days**   
Chair selection: within 45 days by agreement of the Parties ***   Max. 45 days
Max. 30 days*  Deadlines set by the Panel WT/REG301/1 
 Page 49 
 
 
  G. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
170. In Article 102, the Parties affirm their existi ng rights and obligations with respect to each 
other under the WTO Agreement and other agreements to which they are party.  They also indicate 
that in the event of any inconsistency with th ese agreements, the Agreement will prevail, unless 
specified otherwise and except when the inconsis tency involves a trade obligation provided in the 
multilateral environmental agreements  listed in Annex 103 (Article 103).93 
171. Table V.1 lists the notified and non-notified (if any)  trade agreements that have either Canada 
or Colombia as members (excluding the current Agreement). 
Table V.1:  Canada and Colomb ia:  Participation in other RTAs (notified and non-notified in fo rce), as of 1 June 201294 
Partner / Treaty with Date of entry 
into force Type of Treaty95 GATT/WTO Notification 
Year WTO Provision 
Canada 
Peru 01.08.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V
EFTA 01.07.09 Goods 2009 GATT Art. XXIV 
Costa Rica 01.11.02 Goods 2003 GATT Art. XXIV 
Chile 05.07.97 Goods & Services 1997 GATT Art. XXIV & GATS V 
Israel 01.01.97 Goods 1997 GATT Art. XXIV 
NAFTA 01.01.94 Goods & Services 1993 (G) 
1995 (S) GATT Art. XXIV & GATS Art. V
Colombia 
United States 15.05.12 Goods & Services 2012 GATT Art. XXIV & GATS Art. V
EFTA 01.07.11 Goods & Services 2011 GATT Art. XXIV & GATS Art. V
Chile (AAP.CE No. 24) 08.05.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V
Mexico 01.01.95 Goods & Services 2010 GATT Art. XXIV & GATS Art. V
GSTP 19.04.89 Goods 1989 Enabling Clause 
Andean Community 25.05.88 Goods 1990 Enabling Clause 
LAIA 18.03.81 Goods 1982 Enabling Clause 
Northern 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  
Table V.1 (Cont'd)
                                                      
93 The agreements listed in Annex 103 are the Convention on International Trade in Endangered 
Species of Wild Fauna and Flora; the Montreal Protocol  on Substances that Deplete the Ozone Layer; the Basel 
Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal; and the 
Rotterdam Convention on the Prior Informed Consent Procedures for Certain Hazardous Chemicals and 
Pesticides in International Trade. 
94  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/te xtacdos.nsf/vpaises/colombia . 
95  Partial scope agreements are those RTAs not pr oviding for the establishment of a free-trade area 
and/or providing for a limited coverage.   WT/REG301/1 
Page 50  
 
  Partner / Treaty with Date of entry 
into force Type of Treaty95 GATT/WTO Notification 
Year WTO Provision 
CARICOM (AAP.A25TM No. 31) 01.01.95 Goods, partial scope Non notified  
LAIA - Cultural Goods (AR.CEYC 
No. 7) 01.01.89 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 ( except Mexico) - Seeds 
(AAP.AG No. 2) ᵇ Not available Goods, partial scope   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 
  
a Colombia stated the following:  "The Agreements with Costa Ri ca 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 stated the following:  "With regard to the Agre ements 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." 
 
EFTA: European Free Trade Area. 
LAIA: Latin American Integration Association. 
NAFTA: North American Free Trade Agreement. 
AAP.A25: Agreements under Article 25 of the Montevideo Treaty.  Ag reements providing that preferences granted to non-LAIA Latin  
American countries are automatically extended to LA IA's member countries of "relatively lower economic 
development"(RLED), namely the Plurinationa l 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. 
AR.AM: Market Opening Agreements.  The Agreement is amongst all LAIA members, but preferences are only given to RLED 
countries. 
AR.CEYC: Agreements on Cooperation and Exchange of Cultural Goods. 
Source: WTO Secretariat. 
 
H. GOVERNMENT PROCUREMENT  
172. Chapter 14 contains the Parties' commitments a nd procedures in government procurement.  It 
applies to any measure affecting procurement by covered government en tities of goods, services and 
construction services listed in Annexes 1401-3, 1401 -4, 1401-5 for amounts equal to or above a given 
threshold (Article 1401).  The list of covered governmental entities is given in Annexes 1401-1 
(Central entities) and Annex 1401-2 (Other covered entities- Government enterprises).  Canada listed 
88 entities, while Colombia listed 38.  In both cases, exceptions apply.  With respect to covered 
procurement, the Parties agree to provide i mmediately and unconditionally national and MFN 
treatment to each other products, ser vices and suppliers (Article 1403). 
173. The Chapter does not apply to:  
(a) non-contractual agreements or any form of assistance that a Party provides; 
(b) government provision of goods or services to  persons or sub-na tional governments; 
(c) purchases aiming at providing foreign assistance;   WT/REG301/1 
 Page 51 
 
 
  (d) purchases funded by international grants, lo ans, or other assistance, where their 
provisions are subject to conditions inconsistent with the Chapter; 
(e) the procurement or acquisition of fiscal agency or depositary services, liquidation and 
management services for regulated financial institutions, the proc urement of banking, 
financial or specialized services relating to the public debt; 
(f) hiring of government employees and related employment measures; or 
(g) procurements between entities or state enterprises of a Party. 
 174. Canada is a Party to the WTO Government Procurement Agreement (GPA); and Colombia 
has been an observer since February 1996.  Compar ed to the GPA, the coverage of agencies, goods, 
services and construction services under the Agreement for Canada shows similarities but also 
differences.  In goods and services, the thresholds  in the Agreement are lo wer than in the GPA for 
both central level entities and government enterprises.   In construction services, thresholds are the 
same, except for government enterp rises where the threshold in the Agreement is higher.  However, 
pursuant to General Note 7 in Canada's Annex 1 (GPA), there is no coverage of government 
enterprises in Annex 3 extended under the GPA. This coverage will be extende d to most GPA Parties 
once the revised GPA enters into force.  Unlik e the GPA, the Agreement does not include any 
coverage at the sub-federal level.  Procurement th resholds for each Party are shown in tables V.2 and 
V.3.
96   
Table V.2:  Procurement thresholds applied by Canada in the Agreement and the GPA  
Canada The Agreement  Canada GPA 
  Central entities 
(Annex 1401-1) Other entities 
(Annex 1401-2)   Central entities 
(Annex 1)97  Other entities 
(Annex 3) 98 
  (78 entities)  (10 entities)     Thresholds in national currency for the period 
01/01/2010 - 31/12/2011 
Goods $Cdn 76,500  $Cdn 382,800  Goods $Cdn 221,300 $Cdn 604,500 
Services $Cdn 76,500  $Cdn 382,800  Services $Cdn 221,300 $Cdn 604,500 
Construction   5000,000 SDRs  $Cdn 12,200,000 Construction  5000,000 SDRs $Cdn 8,500,000 
Source:  Free Trade Agreement between Canada and Co lombia, Annexes 1401-1 and 1401-2 and WTO document 
 GPA/W/309/Add.2. 
 
Table V.3:  Procurement thresho lds applied by Colombia   
Colombia The Agreement  
  Central entities 
(Annex 1401-1) Other entities 
(Annex 1401-2) 
  (28 entities)  (10 entities)   
Goods US$67,826  US$339,132 
Services US$67,826  US$339,132 
Construction  5000,000 SDRs US$10,852,752 
Source:   Free Trade Agreement between Canada  and Colombia, Annexes 1401-1 and 1401-2. 
 
175. In general open tendering shall be used except for certain cases detailed in paragraphs 6-9 of 
Article 1406 and 1409 allowing inter alia  limited or selective tendering.  The Parties also include 
provisions related to the valuation of a procurem ent (Article 1401); security and general exceptions; 
                                                      
96 The Thresholds are to be adjusted every two years commencing 1 January 2012 (Source Contracting 
Policy Notice: 2011-0, Treasury Board of Canada Secretariat). 
97 For goods and services thresholds values in SDRs are 130,000 SDRs. 
98 For goods and services thresholds values in SDRs are 355,000 SDRs. WT/REG301/1 
Page 52  
 
  the publication of procurement information and noti ces (Articles 1404 and 1405);  the conditions for 
participation (Article 1406);  the adoption of tec hnical specifications (Article 1407);  the availability 
of tender documentation (Article 1407); the time lim its for the submission of tenders (Article 1408); 
the treatment of tenders and awarding of contracts (Article 1410);  disclosure of information regarding 
the procurement process and the treatment of confiden tial information (Article 1411);  the procedures 
for the consideration and review of  complaints and challenges by supp liers (Article 1412);  changes in 
the coverage of the Chapter (Article 1403);  the establishment of a Committee on Procurement 
(Article 1414);  and the electronic disseminati on of information on government procurement 
(Article 1416).  In cases where one of the Parties en ters into another international agreement that 
contains different (or greater) access to its procur ement market, it shall (may) enter into negotiations 
with the other Party, if requested, to harmonize Ch apter 14 with (achieve a similar level of market 
access as) the international agreement (Article 1415). 
I. I
NTELLECTUAL PROPERTY RIGHTS  
176. In the Agreement's Preamble, th e Parties reaffirm their right and obligations under the WTO 
Agreement on Trade-Related Aspects of Intellect ual Property Rights (TRIPS Agreement) and their 
other intellectual property agreements.  
177. The Agreement does not contain a Chapter on Inte llectual Property.  The Parties highlighted 
that in the Agreement intellectual property rights (IPRs ) relate to matters of investments.  They are 
defined under investments (Article 838) and covere d by Chapter 8. As any other investment, they 
benefit, among others, from national and MFN trea tment, prohibition of performance requirements, 
expropriation protection, and access to an i nvestor-state dispute settlement mechanism.99  I n  
Article 809 (on Non-Conforming Measures), the Parti es retain, however, the right to derogate from 
Articles 803 (National Treatment), 804 (Most Favour ed Nation treatment) and subparagraph 1(f) of 
Article 807 (Performance Requirement s) relating to the transfer of  technology, a production process 
or other proprietary knowledge in a manner that is  consistent with the TRIPS Agreement, or WTO 
waivers.100  In the case of expropriation, Article 811 al so indicates that it does not apply to the 
issuance of compulsory licenses relating to IPRs, nor to the revocation, limitation or creation of IPR, 
to the extent that such actions are c onsistent with the WTO Agreement.   
J. ELECTRONIC COMMERCE  
178. Chapter 15 contains provisions on electronic commerce.  The Parties confirm that all 
provisions in the Agreement, including its Annexes, apply to electronic trade and in the event of any 
inconsistency between Chapter 15 an d another Chapter, the other Chap ter will prevail.  The Parties 
are not obliged to allow products to be delivered electronically, except as otherwise specified in the 
Agreement (Articles 1501 and 1508).  They r ecognize the economic opportunities resulting from 
electronic commerce, as well as the importance of avoiding unnecessary barriers to it, and of adopting measures to facilitate it (Article 1502).  Article 1503 prohibits the application of customs duties, fees 
or charges on the import or export of products deliver ed electronically.  However, the Parties reserve 
the right to impose internal taxes or charges on su ch goods, provided that they are not inconsistent 
with the Agreement.  The Chapter also includes provisions to enhance consumers' protection, protect 
personal information, promote co-operation an d to support a paperless trade administration 
(Articles 1504-1507). 
                                                      
99 In the Agreement, intellectual property rights cove rs copyright and related rights, trademark rights, 
rights in geographical indications, rights in industrial designs, patent rights, rights in layout designs of integrated 
circuits, rights in relation to protection of undisclosed  information, and plant bree ders' rights (Article 838). 
100 Article 807(f) prohibits requirements on the transfer of technology, production processes or other 
proprietary knowledge.   WT/REG301/1 
 Page 53 
 
 
  K. LABOUR  
179. In Chapter 16, the Parties reaffirm their oblig ations as members of the International Labour 
Organization (ILO), and their commitments to the ILO's 1998 Declaration  on Fundamental 
Principles and Rights at Work, and its Follow-up (Article 1601).  They also set out their objectives in 
terms of commitments and cooperation on labour i ssues, which include improving working conditions 
and living standards, pursuing c ooperative labour-related activities on th e basis of mutual benefit and 
promoting their commitments to internationa lly recognized labour principles and rights and 
compliance with labour laws (Article 1603).  To fulfill their objectives, the Parties set out their obligations in their Labour Cooperation Agreement (L CA), which was signed and came into effect on 
the same date as the Agreement.
101  In the LCA, the Parties commit, among others, to not derogate 
from domestic labour laws to stimulate trade or i nvestments, apply internationally recognized labour 
principles and rights embodied in their legisla tion; enforce labour laws; establish institutional 
mechanisms to monitor the implementation of the LCA, establish independent review panels to hold 
hearings and make determ inations regarding allege d non-compliance with the LCA, and if requested, 
monetary assessments (Article 1604).  
L. ENVIRONMENT  
180. In Chapter 17, the Parties reaffirm their envi ronmental obligations under their legislation and 
their multilateral environmental agreements.  They also recognize the complementarity between trade 
and environment policies, as well as the need  to implement the Agreement in accordance with 
environmental protection, conservati on and sustainability principles.  To promote such principles, an 
Agreement on the Environment (AE), was signed and entered into force in parallel to the 
Agreement.102  In the AE, the Parties commit to ensure that their laws and policies provide for high 
levels of environmental protection;  to effectively enforce their envi ronmental laws;  to not derogate 
from domestic environmental laws to encourage trad e or investments;  to ensure that appropriate 
procedures for environmental impact assessment are maintained;  and address among others, the 
conservation, protection and improvement of the environment in each Party;  the protection and 
preservation of traditional knowledge;  co-operation on environmental issu es of mutual interest;  the 
promotion of trade and investment of environmental goods and services;  and transparency.  In addition, the Agreement specifies in Article 103 the relationship between the Agreement and the 
multilateral environmental agreements listed in Annex 103 (see Paragraph  168).  Article 815 further 
indicates that the Parties should not derogate from do mestic health, safety or environmental measures 
to encourage the establishment, ac quisition, expansion or retention in  its territory of an investment 
and provides for consultations in the case of  such an encouragement by a Party. 
   
                                                      
101 The text of the Labour Cooperation Agreement between Canada and Colombia (LCA) can be found 
at: http://www.hrsdc.g c.ca/eng/labour/labour_agr eements/ccalc/index.shtml .  
102 The text of the Agreement on the Environment between Canada and Colombia can be found at: 
http://www.ec.gc.ca/caraib-carib/de fault.asp?lang=En&n=FFEF249E-1 .  WT/REG301/1 
Page 54  
 
  ANNEX I 
 
Market Access opportunities 
 
 
1. Tables AI.1 (Canada) and AI.2 (Colombia) present the Parties' tariff elimination schedule by 
agricultural and non-agricultural products.  In the ca se of Canada, the share of the number of duty-free 
tariff lines went from 68.6% to 97.4% upon the Agre ement's entry into force and the overall average 
fell from 5.1% to 2.7%.  For agricultural goods, Colomb ian exporters face in Ca nada an average tariff 
rate of 17.2% instead 21.7%, and 0.2% instead of  2.4% for non-agricultural goods.  By 2017, all non-
agricultural products will be liberalized and most  commitments in agricu ltural products will be 
implemented.  At this date, 90.4% of agricultura l tariff lines will be duty-free.  At the end of the 
implementation period, in 2027, 98.6%  of all tariffs lines are to become duty-free, and 90.5% for 
agricultural products.  
Table AI.1 
Canada:  Indicators of MFN ta riff rates and preferential rate s 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 2011 5.1 16.7 68.6 21.7 43.0 45.7 2.4 8.8 72.6 
Colombia 2011 2.7 117.3 97.4 17.2 206.9 89.5 0.2 13.0 98.8 
 2012 2.6 116.4 97.4 17.2 208.8 89.6 0.1 10.0 98.8 
 2013 2.6 128.1 97.6 17.2 215.2 89.8 0.1 8.6 99.0 
 2014 2.6 127.1 97.6 17.2 215.1 89.8 0.1 6.3 99.0 
 2015 2.6 135.8 97.8 17.2 217.3 89.9 0.0 4.6 99.2 
 2016 2.5 151.4 98.0 17.2 224.3 90.2 0.0 2.6 99.4 
 2017 2.5 226.7 98.6 17.2 226.7 90.4 0.0 0.0 100.0 
 2018 2.5 226.7 98.6 17.2 226.7 90.4 0.0 0.0 100.0 
 2019 2.5 226.7 98.6 17.2 226.7 90.4 0.0 0.0 100.0 
 2020 2.5 226.7 98.6 17.2 226.7 90.4 0.0 0.0 100.0 
 2021 2.5 226.7 98.6 17.2 226.7 90.4 0.0 0.0 100.0 
 2022 2.5 226.7 98.6 17.2 226.7 90.4 0.0 0.0 100.0 
 2023 2.5 226.7 98.6 17.2 226.7 90.4 0.0 0.0 100.0 
 2024 2.5 226.7 98.6 17.2 226.7 90.4 0.0 0.0 100.0 
 2025 2.5 226.7 98.6 17.2 226.7 90.4 0.0 0.0 100.0 
 2026 2.5 226.7 98.6 17.2 226.7 90.4 0.0 0.0 100.0 
 2027 2.5 226.7 98.6 17.1 226.7 90.5 0.0 0.0 100.0 
a WTO Definition. 
Note: For tariff lines subject to TRQs at the MFN level, only the out-of-quota duty is included in the tariff-related calculati ons; for the 
calculation of averages, specific duties are excluded and the ad valorem  parts of alternate rates are included. 
Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Canada. 
 
2. In the case of Colombia, the share of duty-free lines went from 3.6% to 67.0% upon the entry 
into force of the Agreement and the overall tari ff fell to 3.8% from 8.5%.  By 2021, all non-
agricultural products will be liberalized and most of  the liberalization in agricultural products will 
have occurred.  At this date, 80.6% of agricultura l tariff lines will be duty-free and the average tariff 
would have declined to 3.8%.  At the end of the implementation, in 2032, 89% of tariff lines will be 
liberalized for agricultural products, and 98.5% for all goods.   WT/REG301/1 
 Page 55 
 
 
  Table AI.2 
Colombia:  Indicators of MFN tariff rates and preferential rates for imports from Canada 
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 2011 8.5 8.8 3.6 15.7 15.7 0.0 7.4 7.8 4.2 
Canada 2011 3.8 11.5 67.0 10.1 20.9 51.8 2.8 9.2 69.4 
 2012 3.6 10.8 67.0 9.5 19.8 51.8 2.7 8.7 69.4 
 2013 3.1 9.4 67.0 8.8 18.2 51.8 2.2 7.3 69.4 
 2014 2.4 7.2 67.0 7.9 16.3 51.8 1.5 5.1 69.4 
 2015 1.6 13.1 87.8 6.9 18.1 61.9 0.8 9.7 91.7 
 2016 1.4 11.5 87.9 6.3 17.0 62.9 0.6 7.8 91.7 
 2017 1.2 10.0 88.2 5.7 16.1 64.9 0.5 6.0 91.8 
 2018 1.0 8.4 88.5 5.1 15.4 67.0 0.3 4.1 91.8 
 2019 0.8 6.6 88.5 4.6 13.9 67.0 0.2 2.0 91.8 
 2020 0.5 19.2 97.2 4.1 19.4 79.0 0.0 1.3 100.0 
 2021 0.5 19.8 97.4 3.8 19.8 80.6 0.0 0.0 100.0 
 2022 0.5 22.4 97.9 3.6 22.4 84.1 0.0 0.0 100.0 
 2023 0.5 25.0 98.1 3.5 25.0 86.0 0.0 0.0 100.0 
 2024 0.5 24.9 98.2 3.5 24.9 86.1 0.0 0.0 100.0 
 2025 0.5 28.3 98.4 3.4 28.3 87.9 0.0 0.0 100.0 
 2026 0.5 28.2 98.4 3.4 28.2 87.9 0.0 0.0 100.0 
 2027 0.4 28.9 98.5 3.3 28.9 88.4 0.0 0.0 100.0 
 2028 0.4 30.4 98.5 3.3 30.4 89.0 0.0 0.0 100.0 
 2029 0.4 30.4 98.5 3.3 30.4 89.0 0.0 0.0 100.0 
 2030 0.4 30.3 98.5 3.3 30.3 89.0 0.0 0.0 100.0 
 2031 0.4 30.3 98.5 3.3 30.3 89.0 0.0 0.0 100.0 
 2032 0.4 30.2 98.5 3.3 30.2 89.0 0.0 0.0 100.0 
a WTO Definition. 
Note: For tariff lines subject to TRQs , only the out-of-quota duty is include d in the tariff-related calculations. 
Based on the HS 2007 nomenclature. 
Source : WTO Secretariat estimates based on data provided by Colombia. 
 
3. Table AI.3 shows market access opportunities fo r Colombia's top 25 exported goods in 
Canada. These exports accounted for 72.5% of Co lombia's global expor ts during 2008-2010 and 
involved 43 tariff lines. Of these lines, 29 were already duty-free on a MFN basis and 12 were liberalized when the Agreement ente red into force.  Of the two remaining lines: one is to become 
duty-free in 2027 but the other one (which involves certain types of sugars) will remain dutiable. 
Table AI.3 – Canada: Market acce ss opportunities under the agreement  for Colombia's top 25 exports 
Colombia's top export products in 2008-2010  Access Conditions to Canada's import markets
MFN (2011) 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 
2011 
2027 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 27.9 0.0 1     
270112 -- Bituminous coal 13.9 0.0 1     
271019 -- Other 5.0 1.0 4 1 1   
090111 -- Not decaffeinated 4.8 0.0 1     
710812 -- Other unwrought forms 3.9 0.0 1     
720260 - Ferro-nickel 2.3 0.0 1     
080300 Bananas, including plantains, fresh or 
dried. 2.0 0.0 1     
271011 -- Light oils and preparations 1.8 1.3 3 1 1   
060319 -- Other 1.2 6.0  1 1   
270400 Coke and semi-coke of coal, of lignite 
or of peat, whether or not agglomerated; retort carbon. 1.0 0.0 1     
060311 -- Roses 1.0 10.5  1 1   
020110 - Carcasses and half-carcasses 0.8 26.5  1 1   
Table AI.3 (Cont'd)  WT/REG301/1 
Page 56  
 
  Colombia's top export products in 2008-2010  Access Conditions to Canada's import markets
MFN (2011) 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 
2011 
2027 
170199 -- Other 0.7 -  2  1 1 
300490 - Other 0.6 0.0 1     
390410 - Poly(vinyl chloride), not mixed with 
any other substances 0.6 0.0 2     
740400 Copper waste and scrap. 0.6 0.0 4     
060312 -- Carnations 0.6 8.0  1 1   
210111 -- Extracts, essences and concentrates 0.6 0.0 2     
390210 - Polypropylene 0.5 3.0  1 1   
271121 -- Natural gas 0.5 0.0 1     
481840 - Sanitary towels and tampons, 
napkins and napkin liners for babies 
and similar sanitary articles 0.5 0.0 3     
170490 - Other 0.5 6.5 1 2 2   
020130 - Boneless 0.4 26.5  1 1   
380892 -- Fungicides 0.4 3.3 1 1 1   
151110 - Crude oil 0.4 6.0  1 1   
 Total of above  72.5  29 14 12 1 1 
Note: contain specific duties. 
Source : WTO estimates based on data provided by  Canada and UNSD, Comtrade database. 
 
4. Table AI.4 shows market access opportunities fo r Canada's top 25 exports in Colombia, 
which during 2008-2010 accounted for 47.4 % of its gl obal exports.  These exports involved 87 tariff 
lines, of which  five were already duty-free on a MFN basis. Among the 82 lines that are dutiable, 44 
became duty-free upon the Agreement's entry into force; 29 are to be liberalized in 2015 and 9 in 
2020.   
Table AI.4 – Colombia: Market ac cess opportunities under the agreeme nt for Canada's top 25 exports 
Canada's top export products in 2008-2010  Access Conditions to Colo mbia's import markets
MFN (2011)Duty-free in  
MFN avg.  No. of tariff lines  
HS number and description of the product  Share in  
Global 
exports Duty-
free Dutiable 
2011 
2015 
2020 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 13.1 5.0  1  1  
870324 -- Of a cylinder capacity exceeding 3,000 cc 5.8 35.0  4   4 
271121 -- Natural gas 5.2 5.0  1 1   
710812 -- Other unwrought forms 2.5 5.0  1  1  
271019 -- Other 2.2 5.0  17 12 5  
870323 -- Of a cylinder capacity exceeding 1,500 cc 
but not exceeding 3,000 cc 2.1 35.0  4   4 
270112 -- Bituminous coal 1.4 5.0  2 2   
271011 -- Light oils and preparations 1.4 5.0  10 6 4  
310420 - Potassium chloride 1.2 5.0  2 2   
440710 - Coniferous 1.1 5.0  2 2   
100190 - Other 1.1 8.8  4 4   
880240 - Aeroplanes and other aircraft, of an unladen 
weight exceeding 15,000 kg 1.1 0.0 1 0    
300490 - Other 1.0 7.9  7 5 2  
470321 -- Coniferous 0.9 5.0  1 1   
760110 - Aluminium, not alloyed 0.9 5.0  1 1   
120510 - Low erucic acid rape or colza seeds 0.9 12.5  2 1  1 
480100 Newsprint, in rolls or sheets. 0.8 0.0 1 0    
271600 Electrical energy. (optional heading) 0.7 0.0 1 0    
480261 -- In rolls 0.6 5.0 1 1  1  
760120 - Aluminium alloys 0.6 5.0  1 1   
870829 -- Other 0.6 9.2  6  6  
840734 -- Of a cylinder capacity exceeding 1,000 cc 0.6 5.0  2  2  
Table AI.4 (Cont'd) WT/REG301/1 
 Page 57 
 
 
  Canada's top export products in 2008-2010  Access Conditions to Colo mbia's import markets
MFN (2011)Duty-free in  
MFN avg.  No. of tariff lines  
HS number and description of the product  Share in  
Global 
exports Duty-
free Dutiable 
2011 
2015 
2020 
260112 -- Agglomerated 0.6 5.0  1 1   
870899 -- Other 0.6 6.7  12 5 7  
750210 - Nickel, not alloyed 0.6 0.0 1 0    
 Total of above  47.4  5 82 44 29 9 
Source : WTO estimates based on data provided by Colombia and UNSD, Comtrade database. WT/REG301/1 
Page 58  
 
  ANNEX II 
 
 
Table AII.1 
Colombia: Products subject to a band-price system  
product description (HS4-digit)  Tariff lines covered  
 Meat of swine, fresh, chilled or  frozen 02031100*; 02031200*; 02031900*; 02032100*; 02032200*;  
02032900*. 
 Meat and edible offal of poultry, fresh, chilled or 
frozen. 02071100;   02071200;  02071310;  02071390;  02071410;  
02071490;   02072400;  02072500;  02072600;  02072700;   
02073200;   02073300;  02073400;  02073500;  02073600.   
 Meat and edible meat offal, salted, in brine, dried 
or smoked; edible flours and meals of meat or its 
offal 02101200*;  02101900*.  
 Milk and cream, not concentrated nor containing 
added sugar or other sweetening matter 04011000;  04012000;  04013000;   
 Milk and cream, concentrated or containing added 
sugar or other sweetening matter 04021010**;  04021090**;  04022111**;  04022119**;  
04022191**;  04022199**;  04022911**;  04022919**;  
04022991**;  04022999**;  04029110**;  04029190**;  
04029990**. 
 Whey and other natural milk constituents 04041090;  04049000. 
 Butter and other fats and oils derived from milk; 
dairy spreads:  04051000;  04052000;  04059020;  04059090. 
 Cheese and curd 04063000;  04069040;  04069050;  04069060;  04069090. 
 Maize (corn) 10059011;  10059012**;  10059030;  10059040;  10059090.   
 Rice 10061090**;  10062000**;  10063000**; 10064000**.   
 Grain sorghum 10070090 
 Cereal flours, (excl. wheat or meslin) 11022000 
 Starches and inulin 11081200;  11081900   
 Soya beans 12010090 
 Ground-nuts, not roasted or otherwise cooked 12021090;  12022000   
 Rape or colza seeds 12051090;  12059090   
 Sunflower seeds 12060090 
 Other oil seeds and oleaginous fruits 12074090;  12079991; 12079999 
 Flours and meals of oil seeds or oleaginous fruits 12081000;  12089000.   
 Lard, other pig fat and poultry fat 15010010;  15010030 
 Fats of bovine animals, sheep or goats. 15020011;  15020019;  15020090 
 Lard stearin, lard oil, oleostearin, oleo-oil and 
tallow oil. 15030000 
 Other animal fats and oils and their fractions 15060010;  15060090 
 Soya-bean oil and its fractions 15071000;  15079010;  15079090 
 Ground-nut oil and its fractions 15081000;  15089000   
 Palm oil and its fractions 15111000;  15119000  
 Sunflower-seed, safflower or cotton-seed oil and 
fractions thereof. 15121110;  15121120;  15121910;  15121920;  15122100;  
15122900   
 Coconut (copra), palm kernel or babassu oil and 
fractions thereof.  15131100;  15131900;  15132110; 15132910   
 Rape, colza or mustard oil and fractions thereof. 15141100;  15141900;  15149100;  15149900   
 Other fixed vegetable fats and oils (including 
jojoba oil) and their fractions,  15152100;  15152900;  15153000;  15155000;  15159000   
 Animal or vegetable fats and oils and fractions 15162000 
 Margarine; edible mixtures or preparations of 
animal or vegetable fats or oils or of its fractions  15171000;  15179000  
 Animal or vegetable fats and oils and their 
fractions, chemically modified 15180010;  15180090. 
 Sausages and similar products 16010000 
Table AII.1 (Cont'd) WT/REG301/1 
 Page 59 
 
 
  product description (HS4-digit)  Tariff lines covered  
 Other prepared or preserved meat, meat offal or 
blood 16023110;  16023211;  16023219;  16023910;  16024100;  
16024200.    
 Cane or beet sugar and ch emically pure sucrose, in 
solid form 17011190;  17011200;   17019100;  17019910*;   17019990*   
 Other sugars in solid form; sugar syrups; artificial 
honey 17023020;  17023090;  17024010;  17024020;  17026000;  
17029020;  17029030;   17029040;  17029090  
 Sugar molasses  17031000;  17039000.    
 Flours, meals and pellets, of  meat or meat offal, of 
fish or of crustaceans, molluscs or other aquatic 
invertebrates, unfit for human consumption; 
greaves (cracklings):  23012011;  23012019  
 Brans, sharps and other residues, derived from 
cereals or leguminous plants 23021000;  23023000;  23024000   
 Oil-cake and other solid residues, of soya-bean 23040000 
 Oil-cake and other solid residues, of vegetable fats 
or oils 23061000;  23063000;  23069000   
 Vegetable materials, waste, residues, etc, used in 
animal feeding 23080090 
 Preparations of a kind used in animal feeding 23091090;  23099010;  23099090.   
 Dextrins and other modified starches; glues 35051000;  35052000. 
 Industrial monocarboxylic fatty acids; acid oils 
from refining; industr ial fatty alcohols 38231100;  38231200;  38231900. 
* The PBS is applicable only during the phase-out period 
** The PBS is to be eliminated at the entry into force of  the Agreement, but can be re-introduced.   
Source:  Free Trade Agreement between Canada and Colombia (Annex 218). WT/REG301/1 
Page 60  
 
  ANNEX III 
 
 
Table AIII.1 
Tariff Elimination categories for Canada  
Categories Duties on originating goods will be: 
A removed immediately upon the entry in to force of the Agreement, 2011 
B removed in 3 equal annual stages begi nning in 2011, duty-free by  01.01.2013 
C removed in 7 equal annual stages begi nning in 2011, duty-free by  01.01.2017 
D17 removed in 17 equal annual stages  beginning in 2011, duty-free by  01.01.2027 
E exempt from tariff elimination. 
 
Table AIII.2 
Tariff Elimination categories for Colombia 
Categories common to all goods 
Categories Duties on originating goods will be: 
A removed immediately upon the entry into force of the Agreement (i.e. year one) 
B removed in 5 equal annual stages be ginning in 2011, duty-free by 01.01.2015  
C removed in 10 equal annual stages be ginning in 2011, duty-free by 01.01.2020 
Categories applied to non-agricultural goods 
Categories Duties on originating goods will be: 
BU reduced by 10% in 2011, 20% in 2012, 50% in 2013, 70% in 2014, duty-free in 2015 
C7 removed in 7 equal annual stages, duty-free by 01.01.2017 
remanufactured   removed in in 5 equal annua l stages beginning in 2016, duty-free by 01.01.2020 
Categories applied to agricultural goods 
Categories Duties on originating goods will be removed in: 
E 6 equal annual stages beginning in 2011, duty-free by 01.01.2016 
F 7 equal annual stages beginning in 2011, duty-free by 01.01.2017 
L 7 equal annual stages beginning in 2014, duty-free by 01.01.2020 
G 5 equal annual stages beginning in 2013, duty-free by 01.01.2017 
J 8 equal annual stages beginning in 2011, duty-free by 01.01.2018 
Y 17 annual stages beginning in year one, duty-free by 01.01.2027 
D 15 equal annual stages beginning  in 2011, duty-free by 01.01.2025 
U 14 equal annual stages beginning  in 2011, duty-free by 01.01.2024 
R 13 equal annual stages beginning  in 2011, duty-free by 01.01.2013 
P 12 equal annual stages beginning  in 2011, duty-free by 01.01.2022 
N 11 equal annual stages beginning  in 2011, duty-free by 01.01.2021 
AA 18 equal annual stages beginning  in 2011, duty-free by 01.01.2028 
Categories Duties on originating goods will be reduced by: 
BB 15 percentage points in 16 equal annual stages  beginning in 2017, to 65% as of 01.01.2032 
CC 20 percentage points in 16 equal annual stages  beginning in 2017, to 60% as of 01.01.2032 
V 20 percentage points in 15 equal annual stages  beginning in 2011, to 25% as of 01.01.2025 
Categories The fixed component of the PBS ap plied on originating goods will be removed: 
H in 7 equal annual stages beginni ng in 2011, eliminated by 01.01.2017 
I completely by 01.01.2017. 
K in 10 equal annual stages beginning  in 2011, eliminated by 01.01.2020 
M in 7 equal annual stages beginni ng in 2014, eliminated by 01.01.2020 
O in 11 equal annual stages beginning  in 2011, eliminated by 01.01.2021 
Q completely by 01.01.2022. 
S in 13 equal annual stages beginning  in 2011, eliminated by 01.01.2023 
T in 3 equal annual stages beginni ng in 2021, eliminated by 01.01.2023 
W in 15 equal annual stages beginning  in 2011, eliminated by 01.01.2025 
X in 2 equal annual stages beginning in  year 16, eliminated by 01.01.2027 
Categories Duties on originating goods will be: 
Z exempt from tariff elimination 
Source:  Free Trade Agreement between Canada and Colombia.  WT/REG301/1 
 Page 61 
 
 
  ANNEX IV 
 
Table AIV.1 
Tariff-rate quotas applied by Colombia under the Agreement  
High quality beef, standard quality beef and bovine meat (offal)   
Product  
(NANDINA 2007) year  quantity (tonnes) in-quota 
tariff rate  Liberalization schedule 
High quality beef                
02012000A; 02022000A; 
02013010; 02023010 
    
  Standard quality beef           
02011000; 02012000B; 
02013090; 02021000; 
02022000B; 02023090 
   
Bovine meat (offal)              
02061000; 02062100; 
02062200; 02062900; 
05040010; 05040020; 05040030  1 1,750 
0% Duties on these goods will be 
removed by Colombia in 12 equal annual stages 
beginning on the date of entry into force of the 
Agreement. These goods shall be duty-free on 01.01.2022. In-quo ta quantities are duty-free in 
any year of the transition period.  2 1,803 
3 1,855 
4 1,908 
5 1,960 
6 2,013 
7 2,065 
8 2,118 
9 2,170 
10 2,223 
11 2,275 
12 Unlimited  
Swine meat  
Product  
(NANDINA 2007) year  quantity 
(tonness) in-quota 
tariff rate  Liberalization schedule 
02031100; 02031200; 
02031900; 02032100; 02032200; 02032900; 
02063000; 02064100; 
02069000; 02101200; 02101900  1 5,000 20% 
Duties on these goods will be 
removed by Colombia in 13 equal annual stages beginning on the date of entry into force of the 
Agreement. These goods shall be duty-free on 
01.01.2023. In-quota tari ffs will be 20% on the 
date of entry into force of the Agreement. They 
shall be removed in 5 equal stages beginning in 
2012 and be fully eliminated by 2016. 2 5,150 16% 
3 5,300 12% 
4 5,450 8% 
5 5,600 4% 
6 5,750 0% 
7 5,900 0% 
8 6,050 0% 
9 6,200 0% 
10 6,350 0% 
11 6,500 0% 
12 6,650 0% 
13 Unlimited  0% 
Beans 
Product  
(NANDINA 2007) year  quantity (tonnes) in-quota 
tariff rate  Liberalization schedule 
07133290; 07133391; 
07133392; 07133399; 07133999  1 4,000 
0% Duties on these goods will be 
removed by Colombia in 12 equal annual stages 
beginning on the date of entry into force of the Agreement. These goods shall be duty-free on 
01.01.2022. In-quo ta quantities are duty-free in 
any year of the transition period.   2 4,120 
3 4,240 
4 4,360 
5 4,480 
6 4,600 
7 4,720 
8 4,840 
9 4,960 
10 5,080 
11 5,200 
12 Unlimited  
Source:  Free Trade Agreement between Canada and Colombia (Annex 203). 
__________