EN    EN  
 EUROPEAN  
COMMISSION 
Brussels, 4.12.2014  
COM(2014) 718 final 
  
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 
Annual Report on the Implementation of  the EU-Colombia/Peru Trade Agreement 
 
 
2 
 REPORT FROM THE COMMISSION TO  THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 
Annual Report on the Implementation of  the EU-Colombia/Peru Trade Agreement 
1. Introduction 
On 26 June 2012, the EU signed a Trade Agreemen t (hereafter the Agreem ent) with Colombia 
and Peru. The Agreement has been provisiona lly applied since 1 March 2013 for Peru and 1 
August 2013 for Colombia1.  
 Since the start of the Agreement's application, the Commission provided to the Parliament and 
the Council information regarding its implementa tion, in particular during meetings of the 
dedicated monitoring group set up by the European Parliament's International Trade 
Committee. In accord ance with the Regulation (EU) No 19/2013
2 the Commission committed 
to submit an annual report to the European Parliament and the Council on the application, 
implementation and fulfilment of obligati ons of the Agreement and the Regulation. 
 This is the first such Report. In line with Ar ticle 13(1) of the Regulat ion, it is structured in 
three parts:  
• an overall assessment of trade flows; 
• information on the activities of various bodies implementing the Agreement; 
• information on the monitoring activ ities referred in the Regulation. 
 
2. OVERALL ASSESSMENT: EVOLUTION OF TRADE 
2.1. Methodology 
The analysis of bilateral trade flows is based on data for the first year of implementation of 
the Agreement. In the case of Peru, data used was for the calendar year 2013, while for 
Colombia the data pertains to the first five  months of provisional implementation of the 
Agreement (August 2013 to December 2013). In either case, the period was compared with the same one the previous year.  The fact that the implementation of the Agreement is still in its early st ages and that certain 
data and figures are lacking, limits the possibility  to draw conclusions ab out the impact of the 
Agreement. Indeed it can take some time befo re economic operators adapt so as to fully 
benefit from the additional trad ing opportunities offered by the tr ade agreement. Moreover, it 
is difficult to attribute changes in trade flow s solely to the Agreement as other factors 
influence these figures, such as fluctuations  in demand and global prices for commodities, 
which make up an important part of  Peruvian and Colombian exports. 
 
                                                
 
1 The Agreement is provisionally applied in the EU un til all Member States have ratified it. The status of 
the ratification is posted on the Council's website: 
http://www.consilium.europa.eu/policie s/agreements/search-the-agreements-
database?command=details&lang=en&aid=2011057&doclang=EN  
2 Regulation (EU) No 19/2013 of the European Parliament (EP) and of the Council of 15 January 2013 
implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Trade Agreement between the European Un ion and its Member States, of the one part, and Colombia and 
Peru, of the other part. 
 
3 
 In general, there has been an upward trend in trade for specific goods. This has acted as a mild 
counterbalance to an overall decline in trade flows spurred by the glob al negative trends in 
commodity prices and EU demand. While it is pr emature to fully extrap olate conclusions, the 
figures suggest that businesses in specific sectors are increasingly making use of the 
Agreement.  
2.2. Evolution of trade flows with Peru 
In comparison with the year pr eceding the Agreement, the value of EU imports of goods from 
Peru in 2013, decreased by 15.9% (EUR 995 m), mos tly because of the fall in international 
prices for commodities.  In 2012, the value of EU imports from Peru wa s EUR 6.3 bn (17.5% of Peruvian exports). In 
2013, the figure was EUR 5.3 bn (16.5% of Peruvian  exports), reflecting the aforementioned 
development. 
 
 The main EU imports were raw materials (copper and zinc accounted for 29.9% of all imports) whose value suffered a significant co ntraction in comparison with 2012 (-15.7%). 
The second group of products (f ood and live animals, accounti ng for 36.8% of all imports 
from Peru) saw a 10.4 % decrease in value compared  to the previous year. However, some of 
the non-traditional exports from Peru (mainly in  the agro-food sector and with a higher added 
value) increased by almost 6%. Chemicals and fisheries also experienced notable increases 
(24.9% and 4% respectively).  The value of EU exports remained constant (increasing by 0.16% or EUR 5.7 m). The EU is 
Peru's third largest origin for imports (acc ounting for some 13% of all imports in 2013). 
 The main products exported by the EU were machinery and tr ansport equipment (55.5% of 
total). Exports of these products remain ed relatively stable  (0.16% increase). 
 In 2013, the EU's trade balance with Peru reached a deficit of EUR 1,778 m (in 2012 the 
deficit was EUR 2,779 m). The re duction is consistent with the trend from 2009 to 2013, as 
the annual average growth rate was 13.5% for EU imports and 23.7% for EU exports.
 
 
2.3. Evolution of trade flows with Colombia 
The analysis of trade flows with Colombia is affected by the fact that the Agreement has only 
been applied since 1 August 2013.  In comparison with the peri od before the Agreement was 
provisionally applied (August – December 2012), th e overall value of trade flows remained at 
similar levels.  In terms of value of trade, Colombia remains the EU's first partner in the Andean Community 
and the fifth in Latin America.  The value of EU imports increas ed by 4.2% in comparison with th e previous period, totalling 
EUR 3,596 m. In 2012, the total value of Colomb ian goods exported to the EU represented 
15.2% of Colombian exports (EUR 7,098.8 m out of EUR 46,720.1 m). In 2013 this figure 
reached EUR 7,223.2 m (15.8% of Colombian total exports).  
 
4 
 Colombian exports remain concentrated in co mmodities and agricultural goods. Four types of 
products account for 87.2% of total exports to  the EU (petroleum oils, coal, bananas and 
coffee).  The value of EU exports decreased by 4% comp ared to the same period the previous year, 
totalling EUR 2.328 m.   In 2012, the EU was Colombia's third largest pa rtner in terms of impor ts (with 12.6% of all 
goods imported in 2012, or EUR 5,657.9 m out  of EUR 45,025.8 m). In 2013, this figure 
increased to EUR 6,171.8 m (13.4% of Colombian total imports). 
 EU exports are characterised by a diversification of manufactur ed goods, consisting mainly of 
machinery and mechanical appliances (19% of all exports, down by 4.1%), pharmaceutical 
products (11.5%, up by 8.5%), aircrafts and part s (11.8%, up by 33.2%), electrical machinery 
and equipment (7.4%, up by 9.8%), vehicles (7 .6%, up by 9.8%), and optical, photo, technical 
and medical apparatus (5.8%, up by 10.6%).   In 2013, the trade balance with Colombia r eached a deficit of EUR 1,782 m (in 2012 the 
deficit was EUR 3,064 m). This needs to be weighed against the f act that during 2009-2013 
the annual average growth rate was 17.8% for EU imports and 15.4% for EU exports. On the 
other hand, in 2013, compared to 2012, EU imports fell by 11.2%, whereas EU exports 
increased by 5.7%.  
2.4. Evolution of trade in specific goods 
A closer look at the evolution of trade flow s in specific goods between the EU and the two 
Andean countries suggests that some sector s have begun to profit from the Agreement. 
 As regards Peru , notable variations were regi stered from 2012 to 2013 for: 
 
• Fresh bananas : total imports rose from EU R 61 m to EUR 85 m (+39.3%); 
• Edible fruits and nuts : EUR 408 m to EUR 527 m (+29.2%)   
• Sugar and sugar confectionery : EUR 0.8 m to EUR 2.3 m (+187.5%); 
• Beverages and spirits:  EUR 44 m to EUR 71 m € (+61.4%). 
 Conversely, notable variations in EU exports were recorded for: 
 
• Cereals: EUR 0.1 m to EUR 12.6 m  
• Vehicles for transport of persons and goods: EUR 308  m to EUR 351 m (+14%) 
• Pharmaceutical products: EUR 104 m to EUR 140 m € (+34.6%). 
 Given that the Agreement with Colombia  has not been applied for as long as with Peru, there 
is less data available. The following analysis  draws upon data from August to December 2013 
(compared to the same period in 2012). 
 
In terms of EU imports, notable vari ations were registered in 2013 for: 
 
• Cane sugar : imports increased from EUR 1.4 m to EUR 3.4 m (+147.5%); 
•
 Tabacco : EUR 4.6 m to EUR 15.4 m (+247.6%); 
• Prepared or preserved tuna: EUR 2.5 m to EUR 2.8 m (+9.2%) 
 
5 
 • Cut flowers: EUR 5.1 m to EUR 5.4 m (+4.4%). 
 
Conversely, notable variations in EU exports were recorded for: 
 
• Dairy products : exports increased from EU R 0.7 m to EUR 1.7 m (+136.5%); 
• Chassis fitted with engines for vehicles : EUR 0.8 m to EUR 4.5 m (+467.4%); 
• Vehicles, with compression-ignition internal combustion piston engine (diesel or semi-
diesel) of a cylinder capacity exceeding 1,500 cm3 but not exceeding 2,500 cm3: EUR 
2.6 m to EUR 4.3 m (+64.7%). 
 
2.5. Use of tariff rate quotas (TRQs) 
The Agreement provides for several TRQs on bo th sides. The preliminary analysis of quota 
utilisation suggests that there is still significa nt margin for an increase of EU exports under 
these advantageous TRQs.  Customs data colle cted through the Peruvian  authorities indicate that in 2013, only two 
classes of products subject to TRQs registered  significant trade flows (ice cream products and 
products with a high content of sugar), alt hough remaining significan tly below the allotted 
TRQs.  Similar deductions can be done for Colombia  where, according to data referring to January to 
June 2014, only two groups of products regist ered any significant exports from the EU 
(vegetables and fruits, and malt extracts). In this case too, the utilisation of TRQs was 
significantly below the allotted tonnage. Groups of products such  as whey and milk products, 
and sugar preparations registered minimal trad e flows, while others (e.g. sugar, milk and 
cream, buttermilk, and ice-cream preparations) registered a negligible or inexistent use of available TRQs.  On the other hand, the EU opened a number of im portant TRQs for Peru and Colombia. In the 
case of Peru , the main TRQs are spread betw een the following groups of products: 
sweetcorn, maize, cane sugar, products with high  sugar content, cocoa powder, rum, rice, and 
meat of bovine animals, among others.  According to 2013 EU customs data, only TRQs for cane sugar (full quota exhaustion, 18,334 tonnes
3), products with a high sugar content (2 out of 10,000 available tonnes) and for maize 
(58 out of 8,334 available tonnes) were taken advantage of between March 2013 and February 
2014. Data for March to May 2014 indicates that TRQs were us ed for four groups (maize, 
sweetcorn, cane sugar, and produc ts with high sugar content). Ou t of these, the quota for cane 
sugar (22,660 tonnes) was already depleted by Peru by 6 May 2014. However, all remaining 
products registered minimal trade flows (1 t onne for the TRQ for products with high sugar 
content).  As regards Colombia , the EU has opened a number of TR Qs for products su ch as sweetcorn, 
maize, cane sugar, yoghurt, rum, milk and cream , and products containing high sugar content. 
 According to EU customs data, no use of TR Qs was made in 2013. Data for 2014 indicates 
that TRQs were used for two broad categories (cane sugar and sugar confectionery). Out of 
                                                
 
3 Total annual quota proportionally adjusted for the 10 months of application of the TA in 2013. 
 
6 
 the allotted 63,860 tonnes for cane sugar produc ts, 23,383 tonnes had been imported by 8 July 
2014. For sugar confectionery products, out of 20,600 tonnes only 105 tonnes were imported 
by 8 July 2014.  Overall, the modest utilisation of TRQs indicate s that a disturbance in the respective internal 
markets for these sensitive products as a consequence of the Agreement is unlikely. 
 
2.6. Services  
Services trade data is produced with a severe time lag and presented in aggregated terms, 
making it unrealistic to make the same partial anal ysis as for trade in goods. This aspect will 
thus be covered in the annual implementation report once sufficient data is available. 
3. A
CTIVITIES OF THE IMPLEMENTATION BODIES  
The institutional provisions of  the Agreement envisage the establishment of a Trade 
Committee and eight specialised bodies. The annual EU-Colombia/Peru ministerial level 
Trade Committee plays a supervisory role and en sures that the Agreem ent operates properly. 
The first meetings of these bodies were held in 2014 in Lima, Peru (see below). 
 Sub-Committee on Agriculture  – 5 February 
 
Participants discussed the evolut ion of trade and the usage of TRQs (namely aspects related to 
internal procedures). The stabilisation mechan ism for bananas was also discussed due to the 
increase of Peruvian exports. Other topics  included the taxation of spirits (Peru and 
Colombia), and a cooperation agreem ent for dairy products (Colombia). 
 Sub-Committee on Technical Barriers to Trade – 5 February 
 
The Parties exchanged information on their quality  infrastructure systems. The EU presented 
a number of concerns to Colombia (technical regulations for the automotive sector, conformity assessment procedures, labelling of  textiles, technical re gulations on alcoholic 
drinks, and biofuels policy) and Peru (Law for the Promotion of Healthy Eating, delays in the 
registration of pharmaceutical products and diet ary supplements). Colombia and Peru voiced 
concerns about the EU requirement for origin certificates  for fish exports and the restriction of 
the use of palm oil in some Member States.  Sub-Committee on Trade and Sustainable Development  – 6 February  
 The Parties agreed on the list of  experts that could be convened to examine matters that have 
not been satisfactorily addressed through gove rnmental consultations, and shared their 
experiences on domestic mechanisms to promote the participation of ci vil society and groups 
committed to the implementation of the Trade and Sustainable Development provisions of the Agreement (see also point 4 below).   Sub-Committee on Intellectual Property  – 11 February 
 The meeting discussed Geographical  Indications (GIs), with the EU expressing its interest for 
simplified recognition procedures. Colombia presen ted a full set of certif icates of protection 
of EU GIs under the Agreement and submitted a lis t of 18 new GIs, nine of them referring to 
 
7 
 agricultural products, which the EU will evaluate in accordance with the Agreement. For the 
remaining non-agricultural GIs,  the EU clarified how their protection might be achieved. 
 Peru submitted a list of four new GIs for agricultural products. Other topics included the Party's respective enforcement systems, the li ability of intermediary service providers, 
Paragraph 6 System
4 of the TRIPS Agreement, the adhesion of Peru and Colombia to the 
Madrid Protocol5, protection for performers, and pharm aceutical sector patents (Colombia). 
 Sub-Committee on Public Procurement  – 31 March 
 The Parties discussed bilateral issues, with Pe ru and Colombia updating the EU on the list of 
government entities. The Parties agreed to exch ange information on the participation of SMEs 
in foreign procurement markets.  Sub-Committee on Sanitary and Phytosanitary Measures  – 1 April 
 Topics discussed included import requirements, verifications, measures linked to animal and 
plant health, equivalence, and technical assistance. 
 
Sub-Committee on Customs Procedures, Trad e Facilitation, and Rules of Origin  – 28-29 
April  The Parties presented recent developments in their customs legislation. The EU emphasised 
the importance of creating a pa perless customs environment. The Parties exchanged their 
experience on Authorised Economic Operators
6 and Mutual Recognition Agreements. On 
rules of origin, the Parties addr essed the certificati on and verification of preferential origin, 
and the issue of direct transport. 
 
Sub-Committee on Market Access  – 15 May 
 The Parties exchanged information on the evoluti on of trade flows, noting the lack of reliable 
statistics over a prolonged peri od of time. The parties discussed bilateral issues such as GSP+ 
(Peru), and domestic policies on biofuels  and truck scrapping (both Colombia). 
 Trade Committee  – 16 May 
 The Committee reviewed the activities of the sp ecialised bodies and discussed topics related 
to trade in services. The EU expressed concerns about de adlines for the issuance of work 
visas in Peru which could nega tively affect Peru's commitme nts under the trade in services 
part of the Agreement. The Parties also discus sed topics pertaining to  the WTO and the Trade 
                                                
 
4 Once two thirds of WTO membership have accep ted it, this paragraph will amend the TRIPS 
Agreement to allow WTO members with insufficien t capacities in the pharmaceutical sector for the 
product in question to import patented drugs made under compulsory licensing. 
http://www.wto.org/english/tratop _e/trips_e/public_health_e.htm   
5 An international system for registering tr ademarks simultaneously in many countries 
http://www.wipo.int/madrid/en/   
6 Authorised Economic Operators are economic operators that have been approved by or on behalf of 
customs authorities as complying with a set of requir ements (e.g. compliance, solvency, security etc.) 
and thus benefit from various simplifications and/ or facilitations specifically provided for under the 
respective customs legislations of the EU, Peru and Colombia. 
 
8 
 Facilitation Agreement, exchanging information on their current respec tive negotiations with 
other countries or regions. 
4.  F ULFILMENT OF OBLIGATIONS ON TRADE AND SUSTAINABLE DEVELOPMENT  
Sub-Committee on Trade and Sustainable Development  
The first meeting of the Sub-Committee was he ld back-to-back with  an open session with 
civil society on 7 February attended mainly by members of Peruvian civil society and the 
EU’s domestic advisory group. Di scussions included labour and e nvironment related topics of 
importance to the implementation of Title IX of the Agreement, where potential areas for 
follow-up were discussed. 
The Parties expressed their commitment to effec tively implement Title IX of the Agreement. 
Colombia and Peru reported on the applicable  organisational aspects of their labour and 
environment ministries, as well as progress made in relation to freedom of association, rights 
to collective bargaining, and the elimination of forced labour, which was also relevant in the 
context of the various measures  included by Colombia and Peru  in their Roadmaps presented 
to the European Parliament in 2012.  
The Parties discussed the following issues. 
4.1. Implementation of la bour-related provisions 
The EU reported on policy and measures taken at EU level to promote freedom of association, 
the right to collective bargaining, and to protect the righ ts of children (including the 
prevention of child labour). The EU also informed on the progress made by the Member 
States to ratify Internationa l Labour Organisation (ILO) c onventions, in particular the 
Maritime Labour Convention. It also informed on the EU Counc il Decisions of 28 January 
2014 authorising the Member States to ratify  the ILO Chemicals and Domestic Workers 
conventions.  Peru reported on the implementation of its oblig ations under Title IX of the Agreement and 
provided an update on the following areas: 
i. Reinforcement of the Collective Relation System, including the strengthening of the 
inspection system, the creation of the Nationa l Superintendency for Labour Inspection; 
and the increase of the scale of applied fines;  
ii. Promotion of fundamental rights, as established by the ILO, through special 
regulations for the registry of labour unions  in the construction sector, regulation of 
optional arbitration, act ion plans and strategies against child and forced labour, and the 
approval of regulations for the equality of opportunities for persons with disabilities;  
iii. Actions and increased inspections for the protection of labour rights; and  
iv. Ratification of ILO conventions. 
  Colombia provided information on the implementati on of Title IX of the Agreement, focusing 
on the following areas:  
i. The new structure of the Ministry  of Labour and its achievements; 
ii. The existing channels and m echanisms for social dialogue; 
iii. The implementation of freedom of association; 
iv. The strengths of the existing surveillance systems;  
 
9 
 v. Legislation adopted to comb at illegal intermediation; 
vi. The situation as regard s the implementation of the ILO Conventions.  
 The Parties agreed to further the implementation of labour-related provisions of Title IX, including the ratifica tion and implementation of ILO conventions ( i.e., the Domestic Workers 
Convention of 2011, later ratified by Colomb ia on 9 May 2014). The Parties agreed to 
continue exchanging information, in particular with respect to measures against child and 
forced labour, and the promotion of freedom  of association and collective bargaining. 
 The meeting afforded an opportunity to meet repr esentatives of the regional office of the ILO 
and to discuss matters such as the negotiation and implementation of EU trade agreements in general. 
4.2. Implementation of environment-related provisions 
The Parties reported on the progress of the impl ementation of the environmental provisions in 
Title IX. Peru reported on the Legal and Political Framework for Environmental Issues, the Strategic Axis of Environmenta l Management in Peru, the National Agenda, and the National 
System for Environmental Action. Peru al so reported on the National System for 
Environmental Impact Evaluation and the National Service of E nvironmental Certification for 
Sustainable Investments (SENACE). 
 Colombia reported on the Environment Nationa l System, the main achievements and policies 
from the Ministry of Environment and Sustai nable Development, and the implementation of 
multilateral environmental agreements such as the Basel Convention, the Convention on 
International Trade in Endange red Species (CITES), the Mont real Protocol, the Convention 
on Biological Diversity, the Cartagena Pr otocol, and the Unite d Nations Framework 
Convention on Climate Change (UNFCCC).  The EU addressed the liberalis ation of environmen tal goods, highligh ting the green goods 
initiative through which the EU and 13 othe r WTO members pledged to work towards 
liberalising trade in green goods. The EU encouraged  Colombia and Peru to  join the initiative, 
in particular in the context of  Peru’s upcoming hosting of th e UNFCCC Conference of Parties 
in Lima in November 2014, noting that it coul d have the potential for better and cheaper 
access to goods and technologies th at protect the environment. 
 The EU outlined its resource efficiency roadmap and environmental footprint methodologies, with 17 products selected for pilot testing from November 2013. Any stakeholders, including 
businesses in Colombia and Peru, can sign up to follow and contribute to these pilots. 
Companies exporting to the EU should find pa rticipation in this exercise useful. 
4.3. Domestic consultation and Sub-Commi ttee sessions with civil society 
During the Sub-Committee meeting, Parties discussed Article 281 ( Domestic Mechanisms ) 
and its implementation. The EU said its domestic  advisory group mechanism would be similar 
to other EU Agreements and Peru and Colombia said they would use existing domestic advisory bodies. The Parties agr eed guidelines for the open sessions  to be held with the civil 
society. 
In the open session with civil society, the EU domestic advisory group members, together 
with members of Peruvian civil society, stress ed the importance of institutionalised civil 
society structures under the Agreement. The part icipants also stressed  the need for civil 
 
10 
 society to be able to work w ith their counterparts between sess ions so as to enable more 
productive discussions in open sessions. 
4.4. Potential areas for follow-up work 
The Parties agreed to continue engaging in the implementation of labour-related provisions of 
Title IX, including the ratifica tion and implementation of ILO conventions. The Parties also 
agreed to continue to exchange information, in particular on measures against child and 
forced labour, and the promotion of freedom  of association and collective bargaining. 
 On biodiversity, the Sub-Committee discussed the provisions within  Title IX and future work. 
It was stressed that initiatives  to combat illegal logging and a ssociated trade, such as the 
recent EU Timber Regulation
7, may potentially represent incr eased trade opportunities in 
sustainable timber and timber products. 
 Colombia highlighted the importance of consider ing social and environmental mechanisms in 
the gold market, in particular in the fight agai nst illegal mining. Horiz ontal issues such as 
impact assessments, and corporate social respons ibility were also highlighted as potential 
areas for future discussion.   
                                                
 
7 Regulation (EU) No 995/2010. 
 
11 
 5. IMPLEMENTATION OF REGULATION (EU) NO 19/2013 OF THE EUROPEAN 
PARLIAMENT AND OF THE COUNCIL IMPLEMENTING THE BILATERAL 
SAFEGUARD CLAUSE AND THE STABILISATION MECHANISM FOR 
BANANAS  
 
The Regulation provides for the possibility to initiate a safeguard inve stigation or introduce 
prior surveillance measures under certain conditi ons set out in the Regulation. In accordance 
with Articles 3 and 13 of the Regulation, the Commission has been monitoring the evolution 
of imports of bananas from Colombia and Peru. During the first year of implementation of the 
Agreement, the Commission neither initiated nor received any requests to initiate a safeguard 
investigation or introducing prior surveillance measures. 
 
5.1. Evolution of Colombian and Peruvian banana exports 
The results of monitoring during the first ye ar of implementation of the Agreement are 
summarised below.  In 2013 imports of bananas from Peru increased by 39.3% in value when compared to 2012 
(from EUR 61 m to EUR 85 m). In quantity, the increase was of 39.7% (80,696 tonnes in 
2012 to 112,750 tonnes in 2013). This increase wa s greatest in November and December 
2013, falling back to the usual levels of trade in  the following months (January to April 2014). 
 
   
 
12 
 In 2013, imports of bananas from Colombia decreased by 0.6% in value when compared to 
the 2012 (EUR 759 m in 2012 to EUR 754 m in 2013). Total imported tonnage increased by 2.1% (1,134,567 tonnes in 2012 to 1,158,755 tonnes in 2013). Trade levels remained relatively constant (in value and quan tities) for the early months of 2014. 
 
 
In the case of Peru , imports of bananas reached the threshold level of 78,750 tonnes in 
November 2013. In line with the provisions of the Banana Stabilisati on Mechanism (notably 
Article 15(2) and 15(3) of the Regulation), th e Commission examined the impact of these 
imports on the situation of the market for bana nas in the EU. Imports from Peru represented 
only 1.8% of the total imports of fresh bananas to the EU, and the imports from other major 
banana exporters to the EU remained in line with expected trends. Moreover, the average 
wholesale trade of fresh bananas on the EU mark et did not register not able changes and there 
were no indications that the stab ility or situation of EU producers had been impacted by this 
increase of Peruvian exports. On the basis of this examination, the Commission concluded 
that the suspension of preferen tial customs duties on imports of  bananas originating in Peru 
was inappropriate. 
 
13 
 6. C ONCLUSION  
Based on about one year of implementation, it is still early to make any conclusive assessment 
of the results of the Agreement on trade and inve stment flows. While the overall level of trade 
seems to have decreased in relation to Peru, there were some notable increases in non-
traditional trade. The reduction of trade value was probably due to reasons which are not directly linked to the Agreement itself but rather  to the decrease in global commodities prices 
in 2013. Meanwhile, some specific sectors such as wine, vehicles, tobacco, and sugar-cane 
products saw important increases. On the other hand, the few months of available data for 
Colombia indicate little change in trade flow s with some notable positive exceptions as 
described in the report. A greater utilisation of the available TRQs represents an important unused opportunity of this Agreement.  With regard to bananas, imports from the A ndean countries remained overall stable, which 
made it unnecessary to initiate any suspen sion of preferential customs duties. 
 The focus thus remains on ensuring the prope r implementation of the Agreement so that 
business can enjoy the trade opportu nities arising from it. Some implementation issues persist, 
notably in the area of animal and plant hea lth and hygiene (SPS) measures. Discussions on 
these issues will continue in the context and follow-up of the meetings of the various Sub-
Committees, with a view to finding mutually accepta ble and workable solutions. It is in this 
context that the first year of  implementation overall has br ought about a satisfactory set-up 
and functioning of the institutional framework of the Agreement.