Proposal for a COUNCIL DECISION on the conclusion of the Trade Agreement between the European Union and Colombia and Peru
Date: 2011-09-22
Institutions: European Commission
Subjects: Colombia, Peru, liberalisation of trade, trade agreement (EU)

EUROPEAN COMMISSION 

Brussels, 22.9.2011 
COM(2011) 569 final 

2011/0249 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Trade Agreement between the European Union and Colombia 
and Peru 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

BACKGROUND 

The  attached  proposal  constitutes  the  legal  instrument  for  concluding  a  trade  agreement 
between the European Union and Colombia and Peru: 

- 

Proposal for a Council Decision concluding the trade agreement. 

Negotiations  between  the  EU  and  the  Andean  Community  of  Nations  (hereinafter,  Andean 
Community)  for  a  region-to-region  association  agreement,  including  political  dialogue, 
cooperation and trade were launched in June 2007 following a Council decision to authorise 
these  negotiations  in  April  of  the  same  year.  Regrettably,  disagreement  between  Andean 
countries  on  approaches  to  a  number  of  key  trade  issues  covered  under  the  foreseen 
agreement  led  to  the  suspension  of  talks  in  June  2008.  Under  these  circumstances,  the 
Commission presented a recommendation to the Council on 17 December 2008 with a view to 
modifying  the  existing  authorisation  so  as  to  pursue  negotiations  of  a  trade  agreement  with 
those countries of the Andean Community willing to move ahead.  

On 19 January 2009, the Council authorised the Commission to negotiate a multiparty trade 
agreement  with  those  countries  sharing  our  general  objective  of  a  balanced,  ambitious, 
comprehensive  and  WTO-compatible  agreement.  The  Presidents  of  Colombia,  Ecuador  and 
Peru confirmed their commitment to negotiate in letters to President Barroso in January 2009. 
Bolivia  had  been  very  critical  of  the  new  format,  and  had  not  shown  any  interest  in 
participating.  New  negotiations  for  a  multiparty trade agreement were therefore launched in 
January  2009  between  the  EU  and  Colombia,  Ecuador  and  Peru.  After  4  rounds,  Ecuador 
suspended  its  participation  in  the  talks  and  negotiations  therefore  continued  with  Peru  and 
Colombia only. They were successfully concluded in May 2010 and - after a phase of legal 
review - the text of the trade agreement was initialled with Colombia and Peru on 23 March 
2011.  

As set out in the negotiating directives, the Commission reached the objectives to eliminate 
high tariffs, tackle technical barriers to trade, liberalise services markets, protect valuable EU 
geographical indications (GIs), open-up public procurement markets, include commitments on 
the enforcement of labour and environmental standards and offer effective and swift dispute 
settlement  procedures.  The  aim  to  go  well  beyond  WTO  commitments  and  ensure  a  level 
playing field with competitors in the region such as the US is therefore achieved.  

Above all, the agreement is an opportunity for the EU to provide an anchor for Colombia and 
Peru's reforms to integrate the global economy, increase welfare and consolidate their growth 
with a view to improving the living conditions of their peoples. Other Members of the Andean 
Community are  also encouraged via an accession clause to take part in the  trade  agreement 
whenever they see fit.  

The EU Member States were informed orally and in writing on the process of the negotiations 
with Colombia, Peru and - until it participated – Ecuador via the Trade Policy Committee of 
the Council. The European Parliament has also been regularly informed on developments via 
its  Committee  on  International  Trade  (INTA).  The  complete  text  resulting  from  the 

EN 

2 

   EN 

 
negotiations  was  circulated  throughout  the  process  to  both  institutions.  A  detailed  Trade 
Sustainability  Impact  Assessment  (SIA)  examining  the  Agreement's  potential  economic, 
social and environmental effects has been conducted and published in October 2009.  

2. 

NATURE AND SCOPE OF THE AGREEMENT 

The trade agreement between the EU, Colombia and Peru establishes the conditions for EU 
economic  operators  to  take  full  advantage  of  the  opportunities  and  the  emerging 
complementarities between our respective economies. Over the course of its implementation, 
the Agreement will fully relieve EU exporters of industrial and fisheries products to Peru and 
Colombia  from  paying  customs  duties.  It  satisfies  art.  XXIV  GATT  criteria  (to  eliminate 
duties  and  other  restrictive  regulations  of  commerce  with  respect  to  substantially  all  trade 
between  the  parties)  i.e.:  99%  of  EU  exports  are  covered  (100%  of  our  trade  in  industrial 
products in 10 years; and c.85% of agriculture after 17 years). In addition, it will allow for the 
dismantling  of  some  difficult  non-tariff  barriers.  Peru  and  Colombia,  for  their  part,  will 
benefit  from  substantial  new  access  to  the  EU  market  in  particular  for  their  key  agriculture 
exports:  bananas,  sugar  and  rum  while  the  EU  will  grant  100%  duty-free  coverage  for 
industrial products and fisheries of Colombian and Peruvian origin at entry into force.  

On  services  and  establishment  as  well  as  public  procurement  coverage,  the  agreement  is 
among  the  most  ambitious  ever  negotiated  by  the  Commission.  It  includes  substantial 
commitments  on  all  key  sectors  (notably  financial  services,  telecommunications,  transport) 
for cross-border supply and establishment in particular, while the EU's concerns in terms of 
temporary presence  of  natural  persons  for  business purposes (mode 4)  have been dealt  with 
satisfactorily.  In  procurement,  the  EU  has  obtained  the  commitment  of  institutions  at  both 
central and sub-central level with reasonably low thresholds.  

The  agreement  also  establishes  a  set  of  disciplines  which  go  beyond  those  agreed  in  the 
multilateral framework, notably on intellectual property (e.g. 205 EU geographical indications 
protected,  data  protection  conditions  clarified);  sustainable  development  (the  agreement  is 
GSP+  equivalent  or  above  on  labour  and  environmental  issues  and  contains  specific 
commitments  on  sustainable  fisheries);  competition  (disciplines  on  monopolies  and  State 
Enterprises  –  transparency  obligations  on  subsidies);  technical  barriers  to  trade  (WTO+ 
elements  on  market  surveillance,  transparency  in  regulation  procedures  and  disciplines  on 
labelling  and  marking);  Sanitary  and  Phytosanitary  measures  (WTO+  measures  on  animal 
welfare, regionalisation, approval of export establishments, on the spot inspections and import 
checks) among others. In addition, the agreement establishes a Trade Committee as well as a 
set of sub-committees to allow for consultations on specific trade concerns under its different 
titles.  A  key  added  value  of  the  agreement  is  therefore  to  lock-in  and  promote  –  above  and 
beyond those rules that derive from the WTO framework – openness policies and respect for 
internationally agreed best practices at the domestic level while securing a transparent, non-
discriminatory and predictable environment for EU operators and investors in the region – in 
particular via the bilateral dispute settlement mechanism foreseen under the agreement.  

The agreement also includes a Title on technical assistance and trade capacity building aimed 
at  promoting  competitiveness,  innovation  and  facilitating  trade  and  technology  transfers 
between the parties.  

All the areas covered by the trade agreement fall within the competence of the EU and, more 
particularly, within the scope of Articles 91, 100(2) and 207 TFEU. Therefore, the agreement 

EN 

3 

   EN 

 
is  to  be  concluded  by  the  European  Union  pursuant  to  a  decision  of  the  Council  based  on 
Article 218(6) TFEU, following the European Parliament's consent. 

3. 

PROCEDURES 

The Commission has judged the results of the negotiations to be satisfactory and requests the 
Council: 

– 

– 

to  conclude  on  behalf  of  the  European  Union,  the  Trade  Agreement  between  the 
European Union and Colombia and Peru; 

The European Parliament will be called upon to give its consent to the conclusion of 
the Trade Agreement.  

EN 

4 

   EN 

 
2011/0249 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Trade Agreement between the European Union and Colombia 
and Peru 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles  91,  100(2)  and  207(4),  first  subparagraph,  in  conjunction  with  Article  218(6)(a) 
thereof, 

Having regard to the proposal from the Commission, 

Having regard to the consent of the European Parliament 1, 

Whereas: 

(1) 

(2) 

(3) 

On 19 January 2009 the Council authorised the Commission to negotiate a multiparty 
trade agreement on behalf of the European Union with the Member Countries of the 
Andean Community which shared the aim to reach an ambitious, comprehensive, and 
balanced trade agreement. 

Those  negotiations  have  been  concluded  and  the  Trade  Agreement  between  the 
European Union and Colombia and Peru (hereinafter referred to as "the Agreement") 
was initialled on 23 March 2011. 

In  accordance  with  Council  Decision  No  …/2011/EU  of  …2  the  Agreement  was 
signed on behalf of the European Union on …, subject to its conclusion at a later date. 

(4) 

The Agreement should be approved. 

(5) 

(6) 

(7) 

1 
2 

Pursuant to Article 218(7) of the Treaty, it is appropriate for the Council to authorise 
the Commission to approve modifications to be adopted by the Trade Committee, as 
proposed  by  the  Subcommittee  on  Intellectual  Property  on  Geographical  Indications 
pursuant to Article 209 paragraph 2 of the Agreement.  

It  is  appropriate  to  set  out  the  relevant  procedures  for  the  protection  of  geographical 
indications which are given protection pursuant to the Agreement. 

The Agreement should not be construed as conferring rights or imposing obligations 
which can be directly invoked before Union or Member State courts and tribunals, 

OJ C , , p. . 
The Agreement has been published in OJ … together with the decision on signing. 

EN 

5 

   EN 

 
                                                 
HAS ADOPTED THIS DECISION:  

Article 1 

The  Trade  Agreement  between  the  European  Union  and  Colombia  and  Peru  is  hereby 
approved on behalf of the Union. 

Article 2 

The President of the Council shall designate the person(s) empowered to proceed on behalf of 
the European  Union  to  give  the  notification  referred  to  in  Article  330  paragraph  1  of  the 
Agreement,  in  order  to  express  the  consent  of  the  European  Union  to  be  bound  by  the 
Agreement. 

Article 3 

For  the  purposes  of  Article  209  paragraph  2  of  the  Agreement,  modifications  of  the 
Agreement through  decisions  of the  Trade Committee as proposed  by the Subcommittee  on 
Intellectual  Property  on  Geographical  Indications,  shall  be  approved  by  the  Commission  on 
behalf  of  the  European  Union.  Where  interested  parties  cannot  reach  agreement  following 
objections relating to a Geographical Indication, the Commission shall adopt such a position 
on  the  basis  of  the  procedure  laid  down  in  Article  15(2)  of  Council  Regulation  (EC)  No 
510/2006 of 20 March 2006 on the protection of geographical indications and designations of 
origin  for  agricultural  products  and  foodstuffs3.  The  period  referred  to  in  Article  5(6)  of 
Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise 
of implementing powers conferred on the Commission4 shall be set at one month. 

Article 4 

A name protected under Appendix 1 of Annex XIII (List of Geographical Indications) of the 
Agreement may be used  by  any  operator marketing  agricultural  products, foodstuffs, wines, 
aromatised wines or spirits conforming to the corresponding specification. 

The  Member  States  and  the  institutions  of  the  European  Union  shall  enforce  the  protection 
provided for in Article 210 of the Agreement, including at the request of an interested party. 

Article 5 

The  applicable  provision  for  the  purposes  of  adopting  the  necessary  implementing  rules  for 
the application of the rules contained in Appendix 2A and Appendix 5 of Annex II concerning 
the  Definition  of  the  Concept  of  'Originating  Products'  and  Methods  of  Administrative  Co-
operation, and Appendix 1 of Annex I concerning the Elimination of Customs Duties of the 

3 
4 

OJ L 93, 31.3.2006, p. 12. 
OJ L 184, 17.7.1999, p. 23. 

EN 

6 

   EN 

 
                                                 
Agreement  is  Article 247a  of  Council  Regulation  (EEC)  No  2913/92  of  12  October  1992 
establishing the Community Customs Code5. 

5 

OJ L 302, 19.10.1992, p. 1. 

EN 

7 

   EN 

 
                                                 
The Agreement shall not be construed as conferring rights or imposing obligations which can 
be directly invoked before Union or Member State courts and tribunals. 

Article 6 

Article 7 

This Decision shall enter into force on the day of its adoption. 

Done at Brussels, […] 

For the Council 
The President 

EN 

8 

   EN 

 
 
 
LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A BUDGETARY 
IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

1. 

NAME OF THE PROPOSAL: 

COUNCIL DECISION on the conclusion of the Trade Agreement between the European 
Union and Colombia and Peru 

2. 

BUDGET LINES: 

Chapter and Article: 12 0 

Amount budgeted for the end of the implementation period 

3. 

FINANCIAL IMPACT  

(cid:133) 

Proposal has no financial implications 

⌧  Proposal  has  no  financial  impact  on  expenditure  but  has  a  financial  impact  on 

revenue – the effect is as follows: 

(€ million to one decimal place)  

Budget line 

Revenue6 

Article … 

Impact on own resources 

12 month period, 
starting dd/mm/yyyy

[Year n] 

137.5 

Article … 

Impact on own resources 

Situation following action 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

[n+5] 

Article … 

6 

Regarding  traditional  own  resources  (agricultural duties, sugar  levies,  customs  duties)  the  amounts  indicated 
must be net amounts, i.e. gross amounts after deduction of 25 % of collection costs 

EN 

9 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Article … 

4. 

ANTI-FRAUD MEASURES 

The  EU's  customs  legislation  is  designed  to  ensure  the  correct  application  of  all  EU  customs 
measures including the tariff preferences laid down in this trade agreement, which also contains the 
necessary  provisions  on  the  application  of  preferential  rules  of  origin  and  administrative 
cooperation (Annex II), assistance with enquiries (Annex V), and the possibility, after consultations, 
of  temporary  withdrawal  of  tariff  preferences  in  the  event  of  frauds  and  irregularities  involving 
preferential treatment (Annex III). 

5. 

OTHER REMARKS 

This estimation is based on the average imports for the period 2007-2009 and represents the annual 
loss  in  revenues  due  to:  1/  full  implementation  of  negotiated  tariff  preferences  of  the  Trade 
Agreement  i.e.10  years  after  entry  into  force  and  2/  initial  levels  of  conceded  tariff  rate  quotas. 
During the previous years, revenue losses will be inferior also bearing in mind the likely increase in 
imports of products that will have duties reduced in stages and that will partly compensate the loss. 

EN 

10 

   EN