REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Second Annual Report on the Implementation of the EU-Colombia/Peru Trade Agreement
Date: 2016-02-10
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: Colombia, Peru, activity report, interim agreement (EU), liberalisation of trade, trade agreement (EU), trade cooperation

EUROPEAN 
COMMISSION 

Brussels, 10.2.2016  
COM(2016) 58 final 

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 

Second Annual Report on the Implementation of the EU-Colombia/Peru Trade 
Agreement 

EN 

   EN 

 
 
 
 
  
 
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 

Second Annual Report on the Implementation of the EU-Colombia/Peru Trade 
Agreement 

1. 

INTRODUCTION 

Between  11  and  19  June  2015  the  second  round  of  Trade  Committee  and  of  the  eight 
subcommittees took place in Bogotá, Colombia. The meetings marked the second year of the 
provisional application of the Trade Agreement between the European Union and its Member 
States, of the one part, and Colombia and Peru, of the other part1 (hereafter the "Agreement") 
which started in March 2013 with Peru and in August 2013 with Colombia2.  

On  30  June  2015  the  Parties  signed  a  Protocol  amending  the  Agreement  to  take  account  of 
Croatia's accession to the EU. The Protocol is undergoing internal ratification procedures in 
the three parties. 

On 12 December 2014 the Protocol of Accession of Ecuador to the Agreement was initialled 
by the EU and Ecuador. Before submitting the Protocol to the respective internal ratification 
approval  procedures,  it  needs  to  be  approved  by  the  Trade  Committee  established  by  the 
Agreement.  

In  accordance  with  Regulation  (EU)  No  19/20133  (hereafter  the  "Regulation")  the 
Commission  committed  to  submit  an  annual  report  to  the  European  Parliament  and  the 
Council  on  the  application,  implementation  and  fulfilment  of  obligations  of  the  Agreement 
and the Regulation. 

This is the second such report. In line with Article 13(1) of the Regulation, it is structured in 
three parts:  

•  an overall assessment of trade flows; 
• 
• 

information on the activities of the various bodies implementing the Agreement; 
information on the monitoring activities referred to in the Regulation. 

2. 

OVERALL ASSESSMENT: EVOLUTION OF TRADE 

2.1.  Methodology 

The analysis of bilateral trade flows is based on comparing the data for the calendar year 2014 
with  the  data  for  calendar  year  immediately  preceding  the  Agreement  (2012).  While  the 
presented figures hereunder can offer an early indication on how trade between the EU, on the 
one side, and Colombia and Peru, on the other, developed, one should keep in mind that such 

1  
2 

3 

OJ L 354, 21.12.2012, p. 3. 
The status of the ratification of the Agreement by the EU Member States is available on the Council's 
website: http://www.consilium.europa.eu/en/documents-publications/agreements-
conventions/agreement/?aid=2011057  
Regulation  (EU)  No  19/2013  of  the  European  Parliament  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  Union  and  its  Member  States,  of  the  one  part,  and  Colombia  and 
Peru, of the other part (OJ L 17, 19.1.2013, p. 1). 

2 

 
 
 
 
 
 
 
                                                 
conclusions  cannot  be  considered  final  and  also  the  changes  observed  cannot  be  attributed 
merely to the effects of the Agreement. 

Evolution of trade flows with Peru 

2.2. 
Imports of Peru4 from the EU have registered a 4% reduction in 2014 (EUR 3 716 million) as 
compared to 2012 (EUR 3 891 million). This is broadly in line with the reduction of Peru's 
imports  from  the  world  (3%).  This  being  said,  the  reduction  essentially  occurred  in  the 
products  that  enter  MFN  duty  free  (10%  reduction),  whereas  the  imports  of  those  products 
that  have  been  fully  liberalised  under  the  Agreement  increased  by  19%,  those  partially 
liberalised by 15% and those under the preferential tariff quotas - albeit from a very low level 
-  by  86%.  Interestingly,  Peru's  imports  from  the  EU  of  products  that  do  not  benefit  from 
preferential  treatment  through  the  Agreement  and  which  therefore  face  an  MFN  duty,  have 
increased by 14%, while the increase of Peru's imports of these same products from the World 
have increased by only 3%. 

As  for  product  category,  the  biggest  fall  in  Peru's  imports  from  the  EU  can  be  observed  in 
mineral products (25%) and in base metals (25%), although in absolute terms the most notable 
fall is observed for machinery and mechanical appliances (EUR 159 million or 9%). This is 
particularly  the  case  for  chapter  84  (nuclear  reactors,  boilers,  machinery  and  mechanical 
appliances; parts thereof) where the EU represents a quarter of all imports into Peru and an 
11%  fall  has  been  observed.  On  the  other  hand,  the  biggest  increases  can  be  observed  for 
works of art (184%), animals and animal products (47%) and prepared foodstuffs (46%). In 
absolute terms only foodstuff and chemical products represent a noteworthy increase (each by 
EUR 43 million). In the latter group the most important increase occurred for pharmaceutical 
products (31%). 

As for imports by the EU5 from Peru, these have seen a reduction of 21%; from EUR 6 072 
million in 2012 to EUR 4 789 million in 2014. Again, the reduction is observed primarily for 
products that already enter MFN duty free (34% reduction). All other group of products have 
seen an increase, notably the ones that are fully liberalised by the Agreement (by 22%), those 
that  are  partially  liberalised  (by  11%),  those  that  face  MFN  duty  and  were  not  subject  of 
liberalisation  through  the  Agreement  (by  12%)  and  those  subject  to  preferential  tariff  quota 
(by 102%). 

Given  the  heavy  concentration  of  imports  from  Peru  in  terms  of  product  categories,  the 
category  that  observed  a  noteworthy  fall  in  EU  imports  from  Peru  are  mineral  products  (a 
decrease  of  EUR  1  062  million  or  38%),  which  can  be  attributed  to  the  worldwide  fall  in 
mineral  prices,  as  well  as  the  category  of  pearls,  (semi-)precious  stones  and  metals  with  a 
decrease of EUR 145 million or 75%. A notable increase is that of EUR 47 million or 24% in 
animals and animal products, most notably for products of chapter 03 (fish and crustaceans, 
molluscs  and  other  aquatic  invertebrates).  An  important  increase  can  also  be  observed  for 
chapter 08 (edible fruit and nuts, peel of citrus fruits or melons) with an increase of EUR 157 
million or 38%. 

In the first two years of the Agreement, 1133 new companies exported from Peru to the EU, 
38%  of  them  in  the  agricultural  sector.  Most  of  the  new  exporting  companies  are  SMEs 
(97.4%), but the large new exporters (remaining 2.6%, i.e. 30 companies) account for 68% of 

4 Source: ITC/ Comext (R1) 
5 Source: Comext (R1) 

3 

 
 
 
 
 
 
 
                                                 
the total value exported by new companies. In the same period, there were exports from Peru 
to the EU in 370 new tariff lines (10 digit) for a total value of USD 60 million (0.5% of total 
exports, of which half is crude oil). 

Evolution of trade flows with Colombia 

2.3. 
Imports of Colombia6 from the EU have registered an important increase between 2012 and 
2014, from EUR 4 870 million to EUR 6 602 million (36%). It should be noted, though, that 
the biggest increase occurred in 2013 (23%), whilst the Agreement only started being applied 
in August 2013 and the Agreement can therefore not be considered solely responsible for such 
an increase. This is confirmed by the fact that the biggest increase occurred for products that 
already enter at MFN duty free (increase by 1 133 mio euro or by 42%). Nevertheless, also 
the increase of Colombia's imports from the EU of products that have been fully liberalised by 
the Agreement has been important – EUR 306 million or 43%. Imports of products partially 
liberalised  by  the  Agreement  have  increased  by  27%  and  those  subject  to  preferential  tariff 
quotas by 71% (albeit from a very low value – EUR 21 million). As a result of these positive 
developments, the EU's share in Colombia's imports increased from 11% in 2012 to 14% in 
2014. 

Practically  all  product  categories  with  significant  trade  have  registered  an  increase  in 
Colombia's  imports  from  the  EU.  The  most  important  increases  were  registered  in  transport 
equipment  (EUR  951  million  or  146%,  chemical  products  (EUR  294  million  or  22%),  and 
measuring and musical instruments (EUR 116 million or 42%). In terms of product areas, the 
biggest  increase  in  Colombia's  imports  was  registered  for  category  88  (aircraft,  spacecraft, 
and  parts  thereof)  and  30  (pharmaceutical  products),  namely  EUR  980  million  (450%)  and 
EUR 235 million (35%). 

On  the  other  hand,  EU  imports  from  Colombia7  registered  a  slight  decrease  of  2%  between 
2012 (EUR 8 040 million) and 2014 (EUR 7 867 million). This is particularly due to the fall 
of imports of products that enter MFN duty free (EUR 197 million decrease), while there has 
been  a  notable  increase  in  EU  imports  of  products  that  are  fully  liberalised  under  the 
Agreement  (EUR  71  million).  It  should  be  noted,  however,  that  the  decrease  occurred  in 
2013, whereas in 2014 (as compared to 2013) EU imports from Colombia increased by EUR 
533  million  or  7%.  Indeed,  if  we  were  to  consider  the  first  year  of  the  Agreement's 
application, i.e. from August 2013 through July 2014 as compared to the same period before 
that, EU imports from Colombia in fact increased by 10%.  

Looking  at  the  product  categories  the  sole  biggest  noteworthy  decrease  occurred  for  base 
metals and articles thereof (EUR 265 million or 78%). Almost the entire decrease within this 
category takes place in chapter 72 (iron and steel), notably a decrease of EUR 264 million or 
88%. As for increases, noteworthy changes can be observed for vegetable products (increase 
of  EUR  73  million  or  5%)  and  for  animal  or  vegetable  fats  (EUR  45  million  or  66%).  The 
biggest increase can be observed in chapter 09 (coffee, tea, maté and spices) with an increase 
of EUR 113 million or 28%. 

Another important development is that since the start of the Agreement's application and until 
the end of 2014, there were 526 new companies which managed to export from Colombia to 
the  EU,  328  of  them  for  less  than  USD  10.000  and  only  8  for  more  than  USD  1  million, 
indicating that this are probably small enterprises. In the same period of time, 336 new tariff 

6 Source: ITC/ Comext (R1) 
7 Source: Comext (R1) 

4 

 
 
 
 
 
 
                                                 
lines registered exports from Colombia to the EU with main products as diverse as tuna (USD 
4  615  647  over  the  observed  period),  self-propelled  machinery  (USD  3  109  501)  and  anise 
liquors (USD 1 691 638)8. 

2.4. 

Use of tariff rate quotas (TRQs) 

Table 1 shows rate of utilisation of tariff rate quotas (TRQs) that were established by the EU 
for Colombia and Peru9. Only the TRQ for cane or beet sugar and chemically pure sucrose is 
being  truly  utilised  by  Colombia  and  Peru,  and  to  some  extent  the  TRQ  for  sweetcorn  by 
Peru, whereas the remaining TRQs10 are quite underutilised or not used at all. 

Table 1: Rate of utilisation of TRQs by Colombia and Peru 

TRQ use by 
Colombia 
2014 

2013 

88.40%  85.72%  

1.37% 

1.32% 

TRQ use by Peru 

2013 

100% 

0.02% 
0.7% 
21% 

2014 

100% 

0.01% 
3% 
76% 

and 

sugar 

Cane 
chemically pure sucrose 
Other sugar confectionery 
Maize 
Sweetcorn 
Source: TARIC 

On the other side, it can be observed that the EU is using the TRQ established by Colombia 
for mushrooms, dairy products such as milk and cream in powder, whey and cheese as well as 
preparations  for  infant  use,  sweetcorn  and  to  a  lesser  extent  ice  cream  and  sugar 
confectionery. In the case of Peru, only the TRQ for ice-creams was used in 2014, and also 
milk and butter in the first half of 2015.Table 2 shows the complete set of the EU's utilisation 
of TRQs established by Colombia and Peru. 

Table 2: Rate of utilisation of TRQs by the EU 

EU  use  of  TRQs  in 
Colombia 
2013 
1.57% 
0.00% 

  2014 
  4.95% 
  34.92%

EU use of TRQs in 
Peru 
2013 

  2014 

in 

57.60% 
40.45% 

Mushrooms 
Milk  and  cream 
powder 
Whey  
Preparations  for  infant 
use 
Sweetcorn 
Ice cream 
Cheese 
Sugar confectionery 
Milk 
Source: DIAN Colombia  and SUNAT Peru  

0.42% 
5.26% 
9.07% 
1.82% 

  49.96%  
  67.50%

  54.18%  
  13.35% 0% 
  8.02% 
  3.41% 

8 Source: PROCOLOMBIA 
9 Only TRQs that were used are mentioned. 
10 The EU established 8 TRQs for Colombia and 18 TRQs for Peru. 

5 

  90% 

   4% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
2.5. 

Trade in Services and Foreign Direct Investment (FDI)11 

Services trade data is produced with a significant time lag. At the time of writing this report, 
data  is  only  available  for  the  year  2013  and  thus  only  a  limited  analysis  can  be  done 
considering  that  the  Agreement  is  being  applied  with  Peru  since  March  2013  and  with 
Colombia since August 2013. 

In 2013 EU exports of services to Peru amounted to EUR 1.215 billion, having decreased by 
18%  compared  to  the  previous  year.  At  the  same  time,  EU  imports  of  services  from  Peru 
amounted  to  EUR  839  million,  a  decrease  of  4%  compared  to  2012.  In  2013  the  EU's  FDI 
stock in Peru was EUR 7.678 billion, whereas Peru's FDI stock in the EU amounted to EUR 
218 million. 

As  for  Colombia,  EU  exports  of  services  in  2013  were  equal  to  EUR  2.581  billion,  having 
decreased  by  10%  compared  to  the  previous  year.  While  EU  imports  of  services  from 
Colombia amounted to EUR 1.475 billion, an increase of 3% compared to 2012. In 2013 the 
EU's FDI stock in Colombia was EUR 15.622 billion, whereas Colombia's FDI stock in the 
EU amounted to EUR 3.839 billion. 

3. 

ACTIVITIES OF THE IMPLEMENTATION BODIES 

The Agreement establishes a Trade Committee and eight specialised bodies for overseeing its 
implementation.  The  second  round  of  meeting  took  place  between  11  and  19  June  2015  in 
Bogotá, Colombia, as summarised below. 

Sub-Committee on Technical Barriers to Trade – 10 June 2015 

The meeting was useful to raise specific issues of concern and to get clarifications from the 
other parties. In the case of Colombia the EU raised concerns in relation to the need for third 
party certification to be carried out in Colombia and the forthcoming implementation of the 
National Quality System. The EU also raised concerns on the National Development Plan that 
appears to establish pricing as one of the requirements for the issuing or renewal of marketing 
authorisations for medicines and medical devices. In the case of Peru the EU raised the issue 
of  the  pending  application  for  the  "High  Health  Surveillance"  (Alta  Vigilancia  Sanitaria) 
status for exports of pharmaceuticals and medical devices.  

Sub-Committee on Intellectual Property – 11 June 2015 

Discussion  on  Geographical  Indications  (GIs)  resulted  in  an  accurate  state  of  play  of  the 
protection of GIs, identified critical areas regarding the effective protection and registered a 
push  from  Colombia  and  Peru  to  initiate  the  process  for  adding  new  GIs  to  the  list.  Parties 
agreed to try to streamline the procedure for adding new GIs to the list.  

In addition, Colombia and Peru answered EU's list of questions on various IPR issues. Most 
noteworthy  are  the  confirmation  by  Colombia  of  the  opportunity  to  contribute  to  a 
forthcoming public consultation on the definition of national emergencies in the health sector 
and on arranging a meeting between the relevant stakeholders on licensing of digital material. 

11 Source: Eurostat and DG Trade Chief Economist Unit 

6 

 
 
 
 
 
 
 
 
 
 
 
                                                 
Sub-Committee on Agriculture – 12 June 2015 

The  meeting  was  an  opportunity  to  exchange  statistics  on  trade  flows  and  quota  utilisation. 
Most  notably,  the  meeting  confirmed  the  difficulties  of  Peru  and  Colombia  to  comply  with 
their  commitments  under  the  Agreement  in  the  area  of  spirit  drinks,   where  trade  distorting 
measures are experienced by EU (and other imported) products.  Neither Peru nor Colombia 
were able to indicate a roadmap for addressing these shortcomings. The EU side clearly stated 
that all options were currently being considered for addressing this situation, including the use 
of  dispute  settlement  mechanisms.  The  stabilisation  mechanism  of  bananas  and  the 
Colombian request for equivalency in the organic farming were amongst the other topics on 
the agenda. 

Sub-Committee on Government Procurement – 16 June 2015 

The main elements raised in relation to Colombia were the market access at sub central level 
and the application, by procuring entities, of unusual and sometimes very high indicators for 
determining economic capacity of tendering companies, and on which the discussions need to 
continue. Peru, on the other hand, informed that an ongoing reform will make a delegation of 
public  procurements  to  international  organisations,  currently  the  main  problem  in  this  area, 
impossible.  

Sub-Committee on Sanitary and Phytosanitary Measures – 16-17 June 2015 

In relation to  Colombia,  the  meeting noted the advances on a single approval procedure for 
EU exports of animal products. In relation to Peru it was not possible to discuss and identify 
solutions  to  the  lack  of  an  approval  procedure  compatible  with  the  Agreement  due  to  the 
absence from the meeting of one of the responsible entities (i.e. SENASA).  

Sub-Committee on Trade and Sustainable Development (see also point 4 below) – 16-17 
June 2015 

The  second  meeting  served  as  a  transition  to  a  more  substantive  agenda,  in  particular  on 
labour-related issues. The parties drew up a list of potential topics for follow-up action which 
will  need  to  be  studied  in  more  detail  and  prioritised.  An  open  session  with  civil  society 
(about  80  participants)  was  held,  in  which  the  two  sides  summarised  the  discussions  in  the 
government to government meeting the previous day.  Most civil society interventions in the 
session focussed on the impact of the trade agreement on Colombia. (see also point 4 below) 

Sub-Committee  on  Customs  Procedures,  Trade  Facilitation,  and  Rules  of  Origin  – 
17 June 2015 

The meeting was an opportunity to present the latest developments on the subject and address 
some  current  points  of  interest.  The  interpretation  of  the  provision  defining  direct  transport 
received  particular  attention,  albeit  with  no  final  agreement,  and  discussion  began  on  the 
possibility for extended cumulation with Chile and Mexico.  

7 

 
 
 
 
 
 
 
 
 
 
 
 
 
Sub-Committee on Market Access – 19 June 2015 

To improve the evaluation of the functioning of the Agreement, the Parties agreed to a regular 
exchange  of  import  statistics.  On  market  access  issues,  the  EU  highlighted  the  concerns  in 
relation to the truck scrapping policy in Colombia. 

Trade Committee – 19 June 2015 

The Trade Committee was used to take stock of progress achieved by the subcommittees and 
to  reiterate  some  of  the  main  concerns,  including  the  continued  discrimination  of  imported 
spirits most notably in Colombia but also in Peru, EU market access to public procurements at 
sub central level  in Colombia and problems in Peru in relation to certification of EU exports 
of animal products. 

EU offered an update on the state of ratifications of the Agreement by the EU. The meeting 
also  served  to  push  forward  the  signature  of  the  Croatia  Protocol  to  the  Agreement  which 
materialised  on  30  June  2015.  Regarding  the  Protocol  of  Accession  of  Ecuador  to  the 
Agreement it was agreed to continue discussions with a view to find a solution agreeable to 
all as soon as possible and that Colombia and Peru would provide more detailed comments.  

4.  

FULFILMENT  OF  OBLIGATIONS  ON  TRADE  AND  SUSTAINABLE 
DEVELOPMENT 

Sub-Committee on Trade and Sustainable Development 

The  second  meeting  of  the  Sub-Committee  on  Trade  and  Sustainable  Development  (the 
Subcommittee)  was  held  in  Bogota  on  16  and  17  June  2015.    Discussions  covered  the 
following: 

4.1. 

Implementation of labour-related provisions 

Colombia made reference to its recently adopted National Development Plan, which includes 
a  national  policy  for  decent  work  as  well  as  to  efforts  to  strengthen  labour  inspections, 
improve  collection  of  fines  and  address  inappropriate  outsourcing  and  collective  bargaining 
practices  by  some  companies.  Progress  had  been  made  on  social  dialogue  through 
mechanisms  such  as  the  Committee  on  Resolution  of  Conflicts  (CETCOIT)  and  a  major 
exercise of collective bargaining in the public sector had been carried out successfully.  While 
recognising  that  much  remained  to  be  done,  Colombia  stated  that  increased  resources  had 
been employed to improve the protection of trade union leaders threatened with violence and 
it reiterated its commitment to fight against impunity. 

Peru presented its strategy and action plan on formalisation of labour and reported on progress 
in implementing policies to combat forced labour as well as in implementing its strategy for 
the  prevention  and  eradication  of  child  labour.  Peru  notably  informed  that  the  labour 
inspection regime under the National Superintendency for Labour Inspection (SUNAFIL) had 
been strengthened.  In addition, some positive developments on labour conflict resolution and 
social dialogue were highlighted.  A national prize to recognise companies with good working 
practices had been instituted.   

The  EU  gave  an  update  on  the  ratification  of  ILO  Conventions  by  its  Member  States.    It 
underlined  its  commitment  to  promote  decent  work  and  reported  on  actions  undertaken  to 
allow swift ratification of the ILO Protocol on Forced Labour by its Member States.  It asked 

8 

 
 
 
 
 
 
for  clarifications  on  a  number  of  points  that  had  been  raised  in  ILO  expert  reports  on 
Colombian and Peru.   

4.2. 

Implementation of environment-related provisions 

Colombia  referred  to  its  National  Development  Plan,  which  incorporates  a  cross-cutting 
strategy for green growth, its National Plan for Green Business and its policy on sustainable 
public procurement. 

For  its  part,  Peru  gave  a  presentation  on  its  2015-2016  Environmental  Action  Agenda  and 
highlighted the setting up of a national environmental prize as an incentive for good practice.   

The EU provided information on  the development of a new cross-cutting policy on a circular 
economy,  developments  in  CITES  and  the  Rotterdam  Convention  on  the  Prior  Informed 
Consent  Procedure  for  Certain  Hazardous  Chemicals  and  Pesticides  in  International  Trade, 
plans for an EU Action Plan Against Wildlife Trafficking, and information on the review of 
the EU Forest Law Enforcement Governance and Trade (FLEGT) Action Plan.   

4.3. 

Domestic consultation and Sub-Committee sessions with civil society 

The EU domestic mechanism for consultation with civil society ("domestic advisory group") 
met  several  times  and  agreed  its  rules  of  procedure.    The  European  Economic  and  Social 
Committee (EESC) provides the Secretariat as well as three members of the group and set up 
a  dedicated  web-page  on  its  website.    Colombia  and  Peru  informed  the  EU  side 
intersessionally  that  they  intended  to  use  existing  domestic  consultative  mechanisms  in  the 
fields  of  labour  and  environment.    The  EU  and  Colombia  shared  details  of  the  members  of 
their groups with each other and with Peru.     

An open session was held in Bogota on 17 June 2015 with approximately 80 representatives 
of  Colombian  civil  society  and  several  members  of  the  EU  domestic  advisory  group.    The 
session  had  been  publicised  on  the  website  of  the  Colombian  Ministry  of  Trade  as  well  as 
other websites. Representatives of the parties informed civil society about their discussions in 
the  Sub-Committee  on  Trade  and  Sustainable  Development  through  an  oral  and  written 
report.  Colombian civil society representatives made a number of general statements, mainly 
expressing  concern  about  the  overall  impact  of  the  Agreement.  Moreover,  some  speakers 
addressed problems linked to trade union rights, working conditions, labour informality and 
labour  inspections.  A  joint  statement  by  EU  and  Colombian  representatives  called  for  more 
interaction between the groups. 

4.4 

Follow-up 

Following a presentation by the EU, Colombia and Peru expressed interest in learning more 
about how the EU assesses the labour and environmental impacts of trade agreements – and 
this was identified as a potential area of future cooperation. The Sub-Committee identified a 
broad range of labour-related topics on which cooperation could be developed such as good 
practices  in  labour  inspection,  labour  market,  mobilisation  of  informal  to  formal  work, 
prevention  and  resolution  of  labour  conflicts  as  well  as  prevention  and  eradication  of  child 
and forced labour. On the environment side interest was expressed in cooperation on trade and 
biodiversity,  including  CITES,  trade  in  forest  products,  chemicals  and  hazardous  waste, 
environment  information  systems.    Corporate  Social  Responsibility  was  also  identified  as  a 
topic of interest, and the EU underlined its support to the work of the OECD on this issue, in 

9 

 
 
 
 
particular  with  respext  to  the  textile  and  minerals  sectors.  It  was  agreed  to  work 
intersessionally to prioritise the topics with a view to their implementation. 

4.5 

Other Activities 

The  Commission  participated  in  a  meeting  of  the  INTA  Committee  of  the  European 
Parliament  Monitoring  Group  on  the  EU-Colombia-Peru  trade  agreement  on  5  May  2015, 
which focussed on labour rights in Colombia and Peru.   

The EU Delegation to Colombia, with support of DG Trade, organised an event on trade and 
sustainable development on 18 June 2015 with the Bogota Chamber of Commerce in which 
over 400 people participated.  The event included presentations on themes such as renewable 
energy, geographic indications , trade facilitation, fair trade, organic certification.  Colombian 
fair trade producer organisations and distributors of European food and drinks displayed their 
products in stands at the event.   

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  investigation or introduce 
prior  surveillance  measures  under  conditions  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.  By  the  time  of  writing  this  report,  the 
Commission neither initiated nor received any requests for initiating a safeguard investigation 
or introducing prior surveillance measures. 

5.1. 

Evolution of Colombian and Peruvian fresh banana exports to the EU 

Imports of fresh bananas form Peru in 2014 fell by 14%  as compared to the 2013 volumes; 
96 136 tonnes and 112 396 tonnes, respectively. Nevertheless, Peru again reached its trigger 
import  volume  for  2014  as  established  by  the  Agreement  (i.e.  82  500  tonnes),  notably  in 
November  –  see  chart  below.  Pursuant  to  Article  15(3)  of  the  Regulation  the  Commission 
examined the impact on the EU banana market, taking into account, inter alia, the effect on 
the price level, the development of imports from other sources and the overall stability of the 
Union market.  

Given that the imports of fresh bananas from Peru represented only 1.9% of the total imports 
of fresh bananas into the EU, that imports of fresh bananas from other traditional exporting  
countries remained largely below the thresholds defined for them in comparable stabilisation 
mechanisms, that the average wholesale banana price did not register notable changes and that 
there were no indications of a negative effect for the stability of the EU market, for the EU 
producers or for the EU outermost regions, the Commission concluded that the suspension of 
the preferential customs duty on bananas originating in Peru was not be appropriate. 

10 

 
 
 
 
 
 
 
 
EU imports of Bananas from Peru

Cum
ton

Trig

120,000

100,000

80,000

60,000

40,000

20,000

0

Like in the case of Peru, also the imports of fresh bananas from Colombia in 2014 decreased 
as compared to the year before, in this case by 6% as compared to the 2013 volumes; 1 086 
096  tonnes  and  1  150  980  tonnes,  respectively.  As  can  be  observed  in  the  chart  below, 
Colombia  remained  significantly  below  its  trigger  import  volume  as  established  by  the 
Agreement (only 64% of the trigger volume has been reached). 

EU imports of Bananas from Colombia

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

Cumulative quantity
in tonnes

Trigger import
volume

11 

 
 
 
 
 
 
 
 
 
6. 

CONCLUSION 

Two years after its entry into force, the implementation process continues and the Agreement 
is  functioning  well  overall  to  the  satisfaction  of  all  Parties.  It  is  still  difficult  to  make 
assessments in some areas, e.g. because data for trade in services and investment flows are not 
available yet or only partially so. The economic slowdown  in  Latin America and the fall in 
commodity  prices  on  the  global  market  also  affected  EU  trade  flows  between  the  EU  and 
Colombia  and  Peru.  Overall,  since  2012  both  EU  imports  from  and  exports  to  Peru  show  a 
reduction  in  value,  in  line  with  the  general  trend  in  Peruvian  trade.  The  EU's  share  of 
Colombia's  imports  increased  from  2012  to  2014,  while  exports  from  Colombia  to  the  EU 
increased in value in 2014, following a decrease in 2012 and 2013.  

Trade  in  products  liberalised  under  the  Agreement  indicates  a  positive  effect  of  its 
implementation. Imports into the EU from Peru and Colombia of products liberalised under 
the Agreement have increased, in some cases significantly.  EU has significantly increased its 
exports  to  both  Colombia  and  Peru  of  products  that  have  been  liberalised  under  the 
Agreement,  either  fully,  partially  or  by  means  of  preferential  tariff  quotas.  In  terms  of 
diversification, since 2012, a significant number of new tariff lines registered imports.  

The fact that 526 Colombian companies and 1133 Peruvian companies exported for the first 
time to the EU since the entry into force of the Agreement is a welcome development, even 
more  so  since  a  significant  number  of  them  are  SMEs.  EU  development  programmes  to 
support implementation of the agreement aim to further strengthen this trend.   

While the implementation process is going well in most of the areas, some areas need to be 
addressed  rapidly,  for  example  the  implementation by Peru of the obligations in the area of 
sanitary and phytosanitary measures and the taxation of spirits most notably in Colombia but 
also in Peru. The implementation of the market access commitments for procurement at sub-
central level in Colombia also raises concern. 

The  mechanisms  for  implementation  of  the  Trade  and  Sustainable  Development  Chapter  of 
the  Agreement,  which  reflect  a  priority  for  the EU  are  now  in  place  and  with  tangible  civil 
society  involvement.  Colombia  noted  progress  in  the  area  of  social  dialogue  and  Peru 
highlighted  its  strategy  for  the  prevention  and  eradication  of  child  labour  as  well  as  on 
formalisation of labour.  

Regarding  the  stabilisation  mechanism  for  bananas,  the  average  wholesale  price  of  fresh 
bananas on the EU market did not register any notable change and there were no indications 
that the stability of the EU market or that the situation of the EU producers have been affected 
by  the  increase  of  Peruvian  exports.  Consequently,  the  Commission  has  concluded  that  any 
suspension of the preferential customs duty on imports of bananas originating in Peru was not 
warranted.  The  close  monitoring  of  the  banana  imports  and  the  evaluation  of  the  market 
situation is therefore proving effective. 

The  Commission  will  continue  focusing  on  measures  aimed  at  ensuring  the  full 
implementation  of  the  Agreement  in  all  its  aspects  for  the  benefit  of  mutual  trade  and 
investment and in close cooperation with the partner countries.  

12