(iv) the procuring entities listed in Appendix 1 of Annex XII (Government Procurement);
(v) the lists of commitments set out in Annexes VII (List of Commitments on Establishment) and Annex VIII (List of Commitments on Cross-Border Supply of Services), and the reservations set out in Annex IX (Reservations Regarding Temporary Presence of Natural Persons for Business Purposes); and
(vi) other provisions subject to modifications by the Trade Committee pursuant to an explicit provision of this Agreement.
Each Party shall implement, in accordance with its applicable legal procedures, any modification referred to in this subparagraph.
3. The Trade Committee may examine the impact of this Agreement on the micro, small and medium-sized enterprises (hereinafter referred to as ‘Micro and SMEs’) of the Parties (6), including any resulting benefits.
4. The Parties shall, to the extent possible, exchange information within the Trade Committee concerning agreements establishing or modifying customs unions or free trade areas and, where requested, on other major issues related to the trade policy of each Party regarding third countries.
5. In the exercise of any of the functions set out in this Article, the Trade Committee may adopt any decision as envisaged in this Agreement.
Article 14. Decision-making
1. The Trade Committee shall adopt its decisions by consensus.
2. The decisions adopted by the Trade Committee shall be binding upon the Parties, which shall take all necessary measures to implement them.
3. In the cases referred to in Article 12 paragraph 4, any decision shall be adopted by the EU Party and the signatory Andean Country concerned and shall have effect only between those Parties, provided that such decisions do not affect the rights and obligations of another signatory Andean Country.
Article 15. Specialised Bodies
1. This Agreement establishes the following sub-committees:
(a) Sub-committee on Market Access;
(b) Sub-committee on Agriculture;
(c) Sub-committee on Technical Obstacles to Trade; (d) Sub-committee on Customs, Trade Facilitation and Rules of Origin;
(e) Sub-committee on Government Procurement;
(f) Sub-committee on Trade and Sustainable Development;
(g) Sub-committee on Sanitary and Phytosanitary Measures; and
(h) Sub-committee on Intellectual Property.
2. Any specialised body established under this Agreement shall comprise representatives of the EU Party, and representatives of each signatory Andean Country.
3. The respective scope of competence and duties of the specialised bodies created in this Agreement are defined in the relevant Titles.
4. The Trade Committee may establish other sub-committees, working groups, or any other specialised bodies in order to assist it in the performance of its tasks. The Trade Committee shall determine the composition, duties and rules of procedure of such specialised bodies.
5. The specialised bodies shall inform the Trade Committee, sufficiently in advance, of their schedule of meetings and of the agenda of those meetings. They shall also report on their activities at each of the meetings of that Committee.
6. Notwithstanding paragraph 2, any specialised body may meet in sessions in which the EU Party and one of the signatory Andean Country participate, when such session regards matters relating exclusively to the bilateral relationship between the EU Party and such signatory Andean Country.
7. If another signatory Andean Country expresses interest in the matter to be discussed in such a session, such signatory Andean country may participate in the session subject to prior agreement of the EU Party and the signatory Andean Country concerned.
Article 16. Coordinators of the Agreement
1. Each Party shall designate a Coordinator of the Agreement and notify all other Parties accordingly, at the latest, at entry into force of this Agreement (7).
2. The Coordinators of the Agreement shall:
(a) prepare the agenda and coordinate the preparation of Trade Committee meetings;
(b) follow up on the decisions adopted by the Trade Committee, as appropriate;
(c) act as contact points to facilitate communication between the Parties on any matter covered by this Agreement, unless otherwise provided in this Agreement;
(d) receive any notifications and information submitted under this Agreement, including any notification or information submitted to the Trade Committee unless provided otherwise; and
(e) consider any other matter that may affect the operation of this Agreement, as requested by the Trade Committee.
3. The Coordinators of the Agreement may meet as necessary.
Title III. Trade In Goods
Chapter 1. Market Access for Goods
Section 1. Common Provisions
Article 17. Objective
The Parties shall progressively liberalise trade in goods over a transitional period starting from the entry into force of this Agreement, in accordance with the provisions of this Agreement and in conformity with Article XXIV of GATT 1994.
Article 18. Scope of Application
Except as otherwise provided in this Agreement, this Chapter shall apply to trade in goods between the Parties.
Article 19. Definitions
For the purposes of this Title:
- "customs duty" includes any duty or charge of any kind imposed on or in connection with the importation of a good, including any form of surtax or surcharge imposed on or in connection with such importation. A "customs duty" does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article III of GATT 1994;
(b) anti-dumping, countervailing or safeguard duty applied in conformity with GATT 1994; the WTO Agreement on Implementation of Article VI of GATT 1994 (hereinafter referred to as the "Anti-dumping Agreement"), the WTO Agreement on Subsidies and Countervailing Measures (hereinafter referred to as the "Subsidies Agreement") and the WTO Agreement on Safeguards (hereinafter referred to as the "Safeguards Agreement"), as relevant;
(c) fee or other charge imposed in accordance with Article VIII of GATT 1994.
- "originating product or good" is that which qualifies under the rules of origin set out in Annex II (Concerning the Definition of the Concept of "Originating Products" and Methods for Administrative Cooperation).
Article 20. Classification of Goods
The classification of goods in trade between the Parties shall be that set out in the respective tariff nomenclature of each Party in conformity with the Harmonised Commodity Description and Coding System 2007 (hereinafter referred to as "HS") and subsequent amendments.
Article 21. National Treatment
1. Each Party shall accord national treatment to the goods of another Party in accordance with Article III of GATT 1994, including its interpretive notes. To this end, Article III of GATT 1994 and its interpretive notes are incorporated into and made integral part of this Agreement, mutatis mutandis.
2. For greater clarity, the Parties confirm that national treatment shall mean, with respect to any level of government or authority, a treatment no less favourable than the treatment accorded by that level of government or authority to like, directly competitive or substitutable domestic goods, including those originating in the territory over which that level of government or authority exercises jurisdiction. (8)
Section 2. Elimination of Custom Duties
Article 22. Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, each Party shall dismantle its customs duties on goods originating in another Party in accordance with Annex I (Tariff Elimination Schedules).
2. For each good, the base rate of customs duties, to which the successive reductions are to be applied under paragraph 1, shall be that specified in Annex I (Tariff Elimination Schedules).
3. If at any moment following the date of entry into force of this Agreement, a Party reduces its applied most favoured nation (hereinafter referred to as "MFN") customs duty, such customs duty shall apply only if it is lower than the customs duty calculated in accordance with Annex I (Tariff Elimination Schedules).
4. Upon request of a Party, the Parties shall consult in order to consider accelerating and broadening the scope of the elimination of customs duties set out in Annex I (Tariff Elimination Schedules).
5. Any decision of the Trade Committee to accelerate or broaden the scope of the customs duty elimination in accordance with Article 13 subparagraph 2(g), shall supersede any duty rate or staging category determined pursuant to Annex I (Tariff Elimination Schedules).
6. Except as otherwise provided in this Agreement, no Party may increase any customs duty set as base rate in Annex I (Tariff Elimination Schedules) or adopt any new customs duty on a good originating in another Party.
7. Paragraph 6 shall not preclude any Party from: (a) raising a customs duty to the level established in Annex I (Tariff Elimination Schedules) for the respective year, following a unilateral reduction; or (b) maintaining or increasing a customs duty in accordance with the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes (hereinafter referred to as "DSU") or Title XII (Dispute Settlement).
Section 3. Non Tariff Measures
Article 23. Import and Export Restrictions
No Party shall adopt or maintain any prohibition or restriction on the importation of any good of another Party or on the exportation or sale for export of any good destined for the territory of another Party, except as otherwise provided in this Agreement or in accordance with Article XI of GATT 1994 and its interpretative notes. To this end, Article XI of GATT 1994 and its interpretive notes are incorporated into and made integral part of this Agreement mutatis mutandis.
Article 24. Fees and Charges
1. Each Party shall ensure, in accordance with Article VIII of GATT 1994 and its interpretative notes, that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax or other internal charges applied consistently with Article III of GATT 1994, and antidumping and countervailing duties), imposed on or in connection with importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
2. No Party shall require consular transactions (9), including related fees and charges, in connection with the importation of any goods of another Party.
3. Each Party shall make available and maintain, preferably through the Internet, updated information of all fees and charges imposed in connection with importation or exportation.
Article 25. Duties and Taxes on Exports
Unless otherwise provided for in this Agreement, no Party shall adopt or maintain any duty or tax, other than internal charges applied in conformity with Article 21, on or in connection with the exportation of goods to the territory of another Party.
Article 26. Import and Export Licensing Procedures
1. No Party shall adopt or maintain a measure that is inconsistent with the WTO Agreement on Import Licensing Procedures (hereinafter referred to as the "Import Licensing Agreement") which is incorporated into and made an integral part of this Agreement, mutatis mutandis.
2. Each Party shall apply the provisions contained in the Import Licensing Agreement, mutatis mutandis, for any licensing procedures for exports to another Party. The notification foreseen in Article 5 of the Import Licensing Agreement shall be carried out between the Parties with regard to licensing procedures for exports.
3. "Import licensing" means administrative procedures used for the operation of import licensing regimes requiring the submission of an application or other documentation (other than that required for customs purposes) to the relevant administrative body as a prior condition for importation to the importing Party.
Article 27. State Trading Enterprises
1. For the purposes of this Agreement, "state trading enterprises" means public and non-public enterprises, wherever located, at central and sub-central level, including marketing boards, which are entrusted with exclusive or special rights or privileges, including through legislative or constitutional powers, through which they influence via their purchases or sales the level or direction of imports and exports (10).
2. The Parties, recognise that state trading enterprises should not operate in a manner that creates obstacles to trade, and to this end, commit to the obligations established under this Article.
3. The Parties reaffirm their existing rights and obligations under Article XVII of GATT 1994, its interpretative notes and supplementary provisions and the Understanding on the Interpretation of Article XVII of the General Agreement on Tariffs and Trade 1994, which are hereby incorporated into and made an integral part of this Agreement, mutatis mutandis.
4. Each Party shall ensure, in particular, that state trading enterprises shall comply, in their purchases or sales, or whenever they exercise any power, including any legislative or constitutional power which a Party has delegated to them at central or sub-central level, with the obligations undertaken by each Party in this Agreement.
5. The provisions of this Article shall not affect the rights and obligations of the Parties under Title VI (Government Procurement).
6. In the context of the notification submitted by the Parties under Article XVII of GATT 1994, when faced with a request for additional information on the effect of state trading enterprises on bilateral trade, the requested Party shall make its best efforts to ensure maximum possible transparency in order to answer these requests which look for information relevant to determine whether the state trading enterprises comply with the relevant obligations of this Agreement, in accordance with the provisions of Article XVII.4 (d) of GATT 1994 regarding confidential information.
Section 4. Agricultural Goods
Article 28. Scope of Application
This Section applies to measures adopted or maintained by the Parties in respect of trade in agricultural goods (hereinafter referred to as "agricultural goods") between them covered by the definition of Annex I of the WTO Agreement on Agriculture (hereinafter referred to as the "Agreement on Agriculture") (11).
Article 29. Agricultural Safeguard
1. Notwithstanding the provisions of Article 22, a Party may apply an agricultural safeguard measure in the form of additional import duties on originating agricultural goods included in its list of Annex IV (Agricultural Safeguard Measures), provided that the conditions set out in this Article are met. The amount of any additional import duty and any other customs duty on such goods may not exceed the lesser of:
(a) the MFN rate applied; or
(b) the base tariff rate as specified in Annex I (Tariff Elimination Schedules).
2. A Party may apply a quantity-based safeguard measure during any calendar year if at the entry of an originating good in its customs territory the amount of imports of the originating good during such year exceeds the trigger level for such good set out in the list of the Party in Annex IV (Agricultural Safeguard Measures).
3. Any additional duty applied by a Party under paragraphs 1 and 2 shall be in accordance with the list of the Party in Annex IV (Agricultural Safeguard Measures).
4. No Party may apply an agricultural safeguard measure under this Article while at the same time adopting or maintaining with respect to the same good:
(a) a safeguard measure under Chapter 2 (Trade Remedies); or
(b) a measure under Article XIX of GATT 1994 and Safeguards Agreement.
5. No Party may adopt or maintain an agricultural safeguard measure:
(a) as from the date on which a good is subject to duty-free treatment under Annex I (Tariff Elimination Schedules), except as otherwise provided in subparagraph (b); or
(b) after the expiry of the transition period set out in the list of the Party in Annex IV (Agricultural Safeguard Measures); or
(c) that increases a customs duty within a tariff rate quota.
6. Within 10 days from the application of an agricultural safeguard measure pursuant to paragraphs 1 and 2, the Party applying the measure shall notify in writing to the exporting Party concerned, and shall provide relevant data and justification for the measure. The Party applying the measure shall provide the exporting Party concerned with an opportunity to consult regarding the conditions for its application in accordance with such paragraphs.
7. Each Party shall maintain its rights and obligations under Article 5 of the Agreement on Agriculture except for agricultural trade subject to preferential treatment.
Article 30. Price Band System
Unless otherwise provided in this Agreement:
(a) Colombia and Ecuador may apply the Andean Price Band System established in Decision 371 of the Andean Community and its modifications, or subsequent systems for agricultural goods covered by such Decision;
(b) Peru may apply the Price Band System established in the Supreme Decree 115-2001-EF and its modifications, or subsequent systems for agricultural goods covered by such Decree.
Article 31. System of Entry Prices
Unless otherwise provided in this Agreement, the EU Party may apply the Entry Price System established by Commission Regulation (EC) No 1580/2007 of 21 December 2007 laying down implementing rules of Council Regulations (EC) No 2200/96, (EC) No 2201/96 and (EC) No 1182/2007 in the fruit and vegetable sector and its modifications or subsequent systems.
Article 32. Export Subsidies and other Equivalent Effect Measures
1. For the purposes of this Article, "export subsidies" shall have the meaning assigned to that term in Article 1 (e) of the Agreement on Agriculture, including any amendment of that Article.
2. The Parties share the objective of working jointly in the WTO to reach an agreement to eliminate export subsidies and other equivalent effect measures for agricultural goods.
3. Upon entry into force of this Agreement, no Party shall maintain, introduce or reintroduce export subsidies or other measures with equivalent effect on agricultural goods which are fully and immediately liberalised, or which are fully but not immediately liberalised and benefit from a duty free quota at entry into force of this Agreement in accordance with Annex I (Tariff Elimination Schedules), and are destined to the territory of another Party.
4. No Party shall maintain, introduce or reintroduce export subsidies or other measures with equivalent effect on agricultural goods which are fully but not immediately liberalised and which do not benefit from a duty free quota at entry into force of this Agreement, from the date on which those goods are fully liberalised.
5. Without prejudice to paragraph 3 and 4, if a Party maintains, introduces or reintroduces subsidies or other measures with equivalent effect on the export of partially or fully liberalised agricultural goods to another Party, the importing Party may apply an additional tariff that will increase customs duties for imports of such good up to the level of either the MFN applied duty or the base rate set out in Annex I (Tariff Elimination Schedules), whichever is lower, for the period established for retaining the export subsidy.
6. In order for the importing Party to eliminate the additional tariff applied in accordance with paragraph 5, the exporting Party shall provide detailed information which demonstrates compliance with the provisions of this Article.
Article 33. Administration and Implementation of Tariff Rate Quotas
1. Each Party shall implement and administer tariff rate quotas for imports of agricultural goods set out in Annex I (Tariff Elimination Schedules) in accordance with Article XIII of GATT 1994, including its interpretative notes, and the Import Licensing Agreement.
2. The Parties shall administer tariff rate quotas for imports of agricultural goods on a first-come first-served basis.
3. Upon request of an exporting Party, an importing Party shall consult with the exporting Party with respect to the administration of the tariff rate quotas of the importing Party. These consultations shall replace the consultations provided for under Article 301 provided that they meet the requirement set out in paragraph 9 of that Article.
Section 5. Management of Administrative Errors
Article 34. Management of Administrative Errors
In case of error by the competent authorities of any Party in the proper management of the preferential system at export, and in particular in the application of the provisions of Annex II (Concerning the Definition of the Concept of "Originating Products" and Methods of Administrative Cooperation), and where this error leads to consequences in terms of import duties, any Party facing such consequences may request, after the matter has been technically discussed between the Parties concerned within the Sub-committee on Customs, Trade Facilitation and Rules of Origin set out in Article 68, that the Trade Committee examine the possibilities of adopting all appropriate measures with a view to resolving the situation. The decision of the Trade Committee on the appropriate measures shall be adopted by agreement of the Parties concerned.
Section 6. Sub-committees
Article 35. Sub-committee on Market Access
1. The Parties hereby establish a Sub-committee on Market Access comprising representatives of each Party.
2. The Sub-committee shall meet upon request of a Party or of the Trade Committee to consider any matter not covered by another sub-committee arising under this Chapter.
3. The functions of the Sub-committee shall include, inter alia:
(a) promoting trade in goods between the Parties, including through consultations on accelerating and broadening the scope of tariff elimination under this Agreement and other issues as appropriate;
(b) addressing any non-tariff measure which may restrict trade in goods between the Parties and, if appropriate, referring such matters to the Trade Committee for its consideration;
(c) providing advice and recommendations to the Trade Committee on cooperation needs regarding market access matters;
(d) consulting on, and endeavouring to resolve, any difference that may arise between the Parties on matters related to amendments to the Harmonized System, including the classification of goods, to ensure that the obligations of each Party under this Agreement are not altered.
Article 36. Sub-committee on Agriculture
1. The Parties hereby establish a Sub-committee on Agriculture comprised of representatives of the EU Party and each signatory Andean Country.
2. The Sub-committee on Agriculture shall:
(a) monitor and promote cooperation on the implementation and administration of Section 4, in order to facilitate the trade of agricultural goods between the Parties;
(b) resolve any unjustified obstacle in the trade of agricultural goods between the Parties;
(c) consult on matters related to Section 4 in coordination with other relevant sub-committees, working groups or any other specialised body under this Agreement;
(d) evaluate the development of agricultural trade between the Parties and the impact of this Agreement on the agricultural sector of each Party, as well as the operation of the instruments of this Agreement, and recommend any appropriate action to the Trade Committee;
(e) undertake any additional work that the Trade Committee may assign to it; and
(f) report and submit for consideration of the Trade Committee the results of its work under this paragraph.
3. The Sub-committee on Agriculture shall meet at least once a year. When special circumstances arise, upon request of a Party, the Sub-committee shall meet at the agreement of the Parties no later than 30 days following the date of such request. Meetings of the Sub-Committee on Agriculture may also take place at bilateral level and shall be chaired by representatives of the Party hosting the meeting.
4. The Sub-committee on Agriculture shall adopt all decisions by consensus.