Title
Trade Agreement between the European Union and its Member States, of the one part, and Colombia, Peru and Ecuador, of the other part
Preamble
THE KINGDOM OF BELGIUM,
THE REPUBLIC OF BULGARIA,
THE CZECH REPUBLIC,
THE KINGDOM OF DENMARK,
THE FEDERAL REPUBLIC OF GERMANY,
THE REPUBLIC OF ESTONIA,
IRELAND,
THE HELLENIC REPUBLIC,
THE KINGDOM OF SPAIN,
THE FRENCH REPUBLIC,
THE ITALIAN REPUBLIC,
THE REPUBLIC OF CYPRUS,
THE REPUBLIC OF LATVIA,
THE REPUBLIC OF LITHUANIA,
THE GRAND DUCHY OF LUXEMBURG,
HUNGARY,
MALTA,
THE KINGDOM OF THE NETHERLANDS,
THE REPUBLIC OF AUSTRIA,
THE REPUBLIC OF POLAND,
THE PORTUGUESE REPUBLIC,
ROMANIA,
THE REPUBLIC OF SLOVENIA,
THE SLOVAK REPUBLIC,
THE REPUBLIC OF FINLAND,
THE KINGDOM OF SWEDEN,
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties to the Treaty on European Union and the Treaty on the Functioning of the European Union, hereinafter referred to as the ‘Member States of the European Union’,
and
THE EUROPEAN UNION,
of the one part, and
THE REPUBLIC OF COLOMBIA (hereinafter referred to as ‘Colombia’),
THE REPUBLIC OF PERU (hereinafter referred to as ‘Peru’)
and
THE REPUBLIC OF ECUADOR (hereinafter referred to as ‘Ecuador’),
hereinafter also referred to as the ‘signatory Andean Countries’,
of the other part,
CONSIDERING the importance of the historical and cultural links and the special links of friendship and cooperation between the European Union and its Member States and the signatory Andean Countries, and their wish to promote the economic integration between the Parties;
DETERMINED to strengthen those links by building on the existing mechanisms that govern relations between the European Union and its Member States and the signatory Andean Countries;
REAFFIRMING their commitment to the United Nations Charter and the Universal Declaration of Human Rights;
CONTRIBUTING to the harmonious development and expansion of world and regional trade, and offering a catalyst for international cooperation;
DESIRING to promote comprehensive economic development with the objective of reducing poverty and creating new employment opportunities and improved working conditions, as well as raising living standards in their respective territories by liberalising and expanding trade and investment between their territories;
COMMITTED to implementing this Agreement in accordance with the objective of sustainable development, including, the promotion of economic progress, the respect for labour rights and the protection of the environment, in accordance with the international commitments adopted by the Parties;
BUILDING on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization (hereinafter referred to as the ‘WTO Agreement’);
DETERMINED to eliminate distortions to their reciprocal trade; and to prevent the creation of unnecessary obstacles to trade;
DETERMINED to establish clear and mutually advantageous rules governing their trade and to foster trade and investment between them, and to promote a regular dialogue among them on these issues;
DESIRING to promote the competitiveness of their companies in international markets by providing them with a predictable legal framework for their trade and investment relations;
CONSIDERING the difference in economic and social development between the signatory Andean Countries and the European Union and its Member States;
AFFIRMING their rights to use, to the greatest extent, the flexibilities provided for in the multilateral framework for the protection of public interest;
RECOGNISING that the signatory Andean Countries are members of the Andean Community, and that the Decision 598 of the Andean Community requires that when its Member Countries negotiate trade agreements with third countries, the Andean legal system is preserved in the reciprocal relations between the Andean Community Member Countries;
RECOGNISING the importance of the respective regional integration processes of the European Union, and of the signatory Andean Countries within the framework of the Andean Community,
HAVE AGREED AS FOLLOWS:
Body
Title I. Initial Provisions
Chapter 1. Essential Elements
Article 1. General Principles
Respect for democratic principles and fundamental human rights, as laid down in the Universal Declaration of Human Rights, and for the principle of the rule of law, underpins the internal and international policies of the Parties. Respect for these principles constitutes an essential element of this Agreement.
Article 2. Disarmament and Non-proliferation of Weapons of Mass Destruction
1. The Parties consider that the proliferation of weapons of mass destruction and their means of delivery, both to States and non-state actors, represents one of the most serious threats to international stability and security.
2. Consequently, the Parties agree to cooperate and contribute to countering the proliferation of weapons of mass destruction and their means of delivery through full compliance with and national implementation of their existing obligations under agreements, treaties and other relevant international obligations on matters of disarmament and non-proliferation.
3. In cooperating to contribute to the objective of disarmament and non-proliferation of weapons of mass destruction, the Parties agree to work together to achieve the universalisation and implementation of the treaties on these matters.
4. The Parties agree that paragraphs 1 and 2 of this Article constitute an essential element of this Agreement.
Chapter 2. General Provisions
Article 3. Establishment of a Free Trade Area
The Parties hereby establish a free trade area, in conformity with Article XXIV of the General Agreement on Tariffs and Trade of 1994 (hereinafter referred to as "GATT 1994") and Article V of the General Agreement on Trade in Services (hereinafter referred to as "GATS").
Article 4. Objectives
The objectives of this Agreement are:
(a) progressive and gradual liberalisation of trade in goods, in conformity with Article XXIV of the GATT 1994;
(b) facilitation of trade in goods through, in particular, the application of the agreed provisions regarding customs and trade facilitation, standards, technical regulations and conformity assessment procedures and sanitary and phytosanitary measures;
(c) progressive liberalisation of trade in services, in conformity with Article V of the GATS;
(d) development of an environment conducive to an increase in investment flows and, in particular, to the improvement of the conditions of establishment between the Parties, on the basis of the principle of non-discrimination;
(e) facilitate trade and investment among the Parties through the liberalisation of current payments and capital movements related to direct investment;
(f) effective and reciprocal opening of government procurement markets of the Parties;
(g) adequate and effective protection of intellectual property rights, in accordance with international rules in force between the Parties, while ensuring a balance between the rights of intellectual property right holders and the public interest;
(h) conduct of economic activities, in particular those regarding the relations between the Parties, in conformity with the principle of free competition;
(i) establishment of an expeditious, effective and predictable dispute settlement mechanism;
(j) to promote international trade in a way that contributes to the objective of sustainable development, and to work in order to integrate and reflect this objective in the Parties' trade relations; and
(k) to ensure that the cooperation for technical assistance and the strengthening of the trade capacities of the Parties contribute to the implementation of this Agreement and to the optimal utilization of the opportunities offered by it according to the existing legal and institutional framework.
Article 5. Relation to the WTO Agreement
The Parties reaffirm the existing rights and obligations between them under the WTO Agreement.
Article 6. Definition of the Parties
1. For the purposes of this Agreement:
- "Party" means the European Union or its Member States or the European Union and its Member States within their respective areas of competence as derived from the Treaty on European Union and the Treaty on the Functioning of the European Union (hereinafter referred to as the "EU Party"), or each of the signatory Andean Countries;
- "Parties" means, on the one hand, the EU Party and, on the other hand, each signatory Andean Country.
2. When this Agreement provides for specific and individual commitments with respect to a Member State of the European Union or for a signatory Andean Country, this Agreement will refer to that specific country or countries as appropriate.
3. In accordance with Article 7, for the signatory Andean Countries the terms "another party" or "the other Parties" shall mean the EU Party, when such terms are used in this Agreement.
Article 7. Trade and Economic Relations Covered by this Agreement
1. The provisions of this Agreement apply to the bilateral trade and economic relations between, on the one part, each individual signatory Andean Country and on the other part, the EU Party; but not to the trade and economic relations between individual signatory Andean Countries (1).
2. The rights and obligations established by the Parties in this Agreement shall not affect to the rights and obligations between signatory Andean Countries as Member Countries of the Andean Community.
Article 8. Fulfilment of Obligations
1. Each Party is responsible for the observance of all provisions of this Agreement and shall take any necessary measure to implement the obligations under it, including its observance by central, regional or local governments and authorities, as well as non-governmental bodies in the exercise of governmental powers delegated to them by such governments and authorities (2).
2. If a Party considers that another Party has failed to fulfil its obligations under this Agreement, such Party shall exclusively have recourse to, and abide by, the dispute settlement mechanism established under Title XII (Dispute Settlement).
3. Without prejudice to the existing mechanisms for political dialogue between the Parties, any Party may immediately adopt appropriate measures in accordance with international law in case of violation by another Party of the essential elements referred to in Articles 1 and 2 of this Agreement. The latter Party may ask for an urgent meeting to be called to bring the Parties concerned together within 15 days for a thorough examination of the situation with a view to seeking an acceptable solution. The measures will be proportional to the violation. Priority will be given to those which least disturb the functioning of this Agreement. These measures shall be revoked as soon as the reasons for their adoption have ceased to exist.
Article 9. Geographical Scope of Application
1. This Agreement shall apply, on the one hand, to the territories in which the Treaty on European Union and the Treaty on the Functioning of the European Union are applied under the conditions established in those Treaties, and on the other hand, to the territories of Colombia, Peru and Ecuador, respectively (3).
2. Notwithstanding paragraph 1, to the extent that the customs territory of the European Union (hereinafter referred to as the "EU customs territory") includes areas not covered by the preceding territorial definition, this Agreement shall also apply to the EU customs territory.
Article 10. Regional Integration
1. The Parties recognise the importance of regional integration in furthering the economic and social development of the signatory Andean Countries and of the European Union, enabling to strengthen the relations between the Parties and to contribute to the objectives of this Agreement.
2. The Parties recognise and reaffirm the importance of the respective regional integration processes between the Member States of the European Union and between the Andean Community Member Countries as a mechanism to achieve greater trade opportunities and foster their effective integration into the global economy.
3. The Parties recognise that progress in Andean regional integration will be determined by the Andean Community Member Countries.
4. The Parties recognise that the signatory Andean Countries must preserve the Andean Legal System in the relations between them, in accordance with Decision 598 of the Andean Community.
5. Having regard to the aspiration of the Parties of achieving an association between the two regions, when all the Andean Community Member Countries become Parties to this Agreement, the Trade Committee will re-examine the relevant provisions, particularly this Article and Article 105, with a view to adapting them to the new situation and supporting regional integration processes.
Chapter 3. Definitions of General Application
Article 11. Definitions
For the purposes of this Agreement, unless otherwise specified:
- "days" means calendar days, including weekends and holidays;
- "good of a Party" or "product of a Party" means domestic products as these are understood in the GATT 1994 or such goods or products as the Parties may agree, and includes products or goods originating in that Party as defined in Article 19;
- "juridical person" means any legal entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship, or association;
- "measure" means any act or omission of a Party, including laws, regulations, procedures, decisions, administrative acts or practices, or any other form;
- "person" means a natural (4) or juridical person.
Title II. Institutional Provisions
Article 12. Trade Committee
1. The Parties hereby establish a Trade Committee. This Committee shall comprise representatives of the EU Party and representatives of each signatory Andean Country.
2. The Trade Committee shall meet at least once a year at the level of Ministers or the representatives that such level may designate. In addition, upon written request of a Party, the Trade Committee may meet at any time at the level of senior officials designated to take the necessary decisions.
3. The Trade Committee shall meet on a rotational basis, in Bogota, Brussels, Lima and Quito, unless the Parties agree otherwise. The Trade Committee shall be chaired by each Party for a period of one year, on a rotational basis.
4. Without prejudice to paragraph 1, the Trade Committee may meet in sessions where the EU Party and one signatory Andean Country participate, regarding matters which:
(a) relate exclusively to the bilateral relationship between the EU Party and such signatory Andean Country; or
(b) have been discussed in a session within a "specialised body" in which only the EU Party and one signatory Andean Country have participated, and that matter has been referred to the Trade Committee.
If another signatory Andean Country expresses interest in the matter to be discussed in such session, it may participate in the session subject to prior agreement of the EU Party and the signatory Andean Country concerned.
Article 13. Functions of the Trade Committee
1. The Trade Committee shall:
(a) supervise and facilitate the operation of this Agreement and the correct application of its provisions, and consider other ways to attain its general objectives;
(b) evaluate the results obtained from the application of this Agreement, in particular the evolution of the trade and economic relations between the Parties;
(c) supervise the work of all specialised bodies established under this Agreement and recommend any necessary action;
(d) evaluate and adopt decisions as envisaged in this Agreement regarding any subject matter which is referred to it by the specialised bodies established according to this Agreement;
(e) oversee the application of Article 105;
(f) supervise the further development of this Agreement;
(g) without prejudice to the rights conferred in Title XII (Dispute Settlement) and other provisions of this Agreement, explore the most appropriate way to prevent or solve any difficulty that may arise in relation to issues covered by this Agreement;
(h) adopt, at its first meeting, the Rules of Procedure and the Code of Conduct for arbitrators referred to in Article 315;
(i) establish the remuneration and expenses to be paid to arbitrators;
(j) adopt its own rules of procedure, as well as its meeting schedule and the agenda for its meetings;
(k) consider any other matter of interest relating to an area covered by this Agreement.
2. The Trade Committee may:
(a) establish and delegate responsibilities to specialised bodies;
(b) receive or seek information from any interested person;
(c) agree to the initiation of negotiations, with the aim of deepening the liberalisation already achieved in sectors covered by this Agreement;
(d) consider any amendment or modification to the provisions of this Agreement, which shall be subject to the completion of the internal legal procedures of each Party;
(e) adopt interpretations of the provisions of this Agreement (5). Such interpretations shall be taken into consideration by arbitration panels established under Title XII (Dispute Settlement);
(f) take such other action in the exercise of its functions as the Parties may agree;
(g) advance in the achievement of the objectives of this Agreement by means of modifications provided for therein, of:
(i) Annex I (Tariff Elimination Schedules), with the aim of adding one or more goods excluded from the tariff elimination schedule of a Party;
(ii) the time schedules established in Annex I (Tariff Elimination Schedules), with the aim of accelerating tariff reduction;
(iii) the specific rules of origin established in Annex II (Concerning the Definition of the Concept of ‘Originating Products’ and Methods of Administrative Cooperation);