Title
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE UNITED ARAB EMIRATES AND THE REPUBLIC OF COLOMBIA
Preamble
PREAMBLE
The Governments of the United Arab Emirates (UAE) and the Government of the Republic of Colombia (Colombia); hereinafter being referred to individually as a "Party" and collectively as "the Parties";
RECOGNISING the strong economic and political ties between the UAE and Colombia, and wishing to strengthen these links through the creation of a free trade area, thus establishing close and lasting relations;
STRENGTHENING the special bonds of friendship and cooperation between them;
CONTRIBUTING to the harmonious development and expansion of world trade by removing obstacles to trade through the creation of a free trade area and by avoiding to create new barriers to trade or investments;
STRENGTHENING their economic relations and promoting economic cooperation;
REAFFIRMING their membership in the World Trade Organization and their commitment to comply with their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization done at Marrakesh on 15 April 1994 (WTO Agreement) and its covered agreements to which they are both parties;
DETERMINED to build on their respective rights and obligations under the WTO Agreement and its Annexes including the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs Agreement);
CONSCIOUS of the dynamic and rapidly changing global environment brought about by globalisation and technological progress that presents various economic and strategic challenges and opportunities to the Parties;
DETERMINED to develop and strengthen their economic and trade relations through the liberalisation and expansion of trade in goods and services in their common interest and for their mutual benefit, build a predictable market for their goods and services, and establish clear and mutually advantageous rules in order to foster a predictable environment for their trade and investments;
AIMING to promote transfer of technology and expand trade;
CONVINCED that the establishment of a free trade area will provide a more favourable climate for the promotion and development of economic and trade relations between the Parties;
RECOGNISING the growing importance of foreign investments in creating, maintaining, and enhancing sustainable economic growth and prosperity for both parties;
RECOGNISING that the promotion and protection of investments of investors of one Party in the territory of the other Party will be conducive to the stimulation of mutually beneficial business activity;
AIMING to facilitate trade by promoting efficient and transparent customs procedures that reduce costs and ensure predictability for their importers and exporters;
PROMOTING broad-based economic development in order to improve living standards;
IMPLEMENTING this Agreement in a manner to strengthen their cooperation on environmental matters and endeavour to preserve and protect the environment in accordance with the principal of sustainable development;
CONVINCED that the establishment of a free trade area will provide a more favourable climate for the promotion and development of economic and trade relations between the Parties;
EXPLORING the possibility of promoting the development of their trade as well as the expansion and diversification of their mutual cooperation in fields of common interest, including fields not covered by this Agreement;
DETERMINED to support the growth and development of micro, small and medium-sized enterprises by enhancing their ability to participate in and benefit from the opportunities created by this Agreement;
AIMING to establishing a clear, transparent, and predictable legal and commercial framework for business planning, that supports further expansion of trade and investment;
REGARDING to the fact that Colombia is a member of the Andean Community established by the Cartagena Agreement; and that Decision 598 of the Andean Community requires Andean Community Member Countries negotiating trade agreements with third countries to preserve the Andean legal system in relations between the Andean Community Member Countries;
HAVE AGREED, in pursuit of the above, to conclude the following Agreement (this Agreement):
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. General Definitions
For the purposes of this Agreement:
Agreement on Agriculture means the Agreement on Agriculture in Annex 1A to the WTO Agreement;
Anti-Dumping Agreement means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
customs administration means customs administration as defined in Chapter 2 (Trade in Goods);
customs duty means customs duty as defined in Chapter 2 (Trade in Goods) and Chapter 11 (Digital Trade);
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
days means calendar days, including weekends and holidays;
DSU means the Understanding on Rules and Procedures Governing the Settlement of Disputes in Annex 2 to the WTO Agreement;
GATS means the General Agreement on Trade in Services in Annex 1B to the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
goods means any merchandise, product, article, or material;
Harmonized System or HS means the Harmonized Commodity Description and Coding System, including its General Rules for the Interpretation, Section Notes, Chapter Notes, Subheading Notes, and its subsequent amendments;
Import Licensing Agreement means the Agreement on Import Licensing Procedures in Annex 1A to the WTO Agreement;
Joint Committee means the Joint Committee established pursuant to Article 16.1 (Joint Committee);
juridical person means juridical person as defined in Chapter 10 (Trade in Services);
measure means any measure in force, whether in form of a law, regulation, rule, procedure, decision, practice, administrative action, or any other form;
national means:
(a) with respect to Colombia, Colombians by birth or naturalization, in accordance with Article 96 of the Constitución Política de Colombia; and
(b) with respect to the UAE, any person who holds citizenship of the State in accordance with the provisions of Federal Law No. (17) of 1972 Concerning Nationality and Passports with its amendments;
natural person means:
(a) with respect to the UAE, a national or a permanent resident under the laws and regulations of the UAE; and
(b) with respect to Colombia, a natural person under the domestic legislation; person means a natural or juridical person as defined in Chapter 10 (Trade in Services);
preferential treatment or preferential tariff treatment means the duty rate applicable under this Agreement to an originating good as defined in Chapter 3 (Rules of Origin) or under Annex 3A (List of Product Specific Rules (PSRs));
Safeguards Agreement means the Agreement on Safeguards in Annex 1A to the WTO Agreement;
sanitary or phytosanitary measure means any measure referred to paragraph 1 of Annex A of the SPS Agreement;
SCM Agreement means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement;
TBT Agreement means the Agreement on Technical Barriers to Trade in Annex 1A to the WTO Agreement;
territory (1) means:
(a) with respect to Colombia, its continental and insular territory, internal waters, the territorial sea, and the air space and maritime areas over which it exercises sovereignty or sovereign rights or jurisdiction in accordance to its domestic law and international law, including applicable international treaties; and
(b) with respect to the UAE, its land territories, internal waters, territorial sea, including the seabed and subsoil thereof, and airspace over such territories and waters, as well as the contiguous zone, the continental shelf, and exclusive economic zone, over which UAE has sovereignty, sovereign rights, or jurisdiction as defined in its laws, and in accordance with international law;
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement; (2)
WTO means the World Trade Organization; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization done at Marrakesh on 15 April 1994.
Article 1.2. Establishment of a Free Trade Area
The Parties hereby establish a free trade area, in conformity with Article XXIV of GATT 1994 and Article V of GATS, and in accordance to the provisions of this Agreement.
Article 1.3. Objectives of the Agreement
The objectives of this Agreement are:
(a) to strengthen and enhance trade and economic cooperation in the fields agreed between the Parties;
(b) to liberalise and facilitate trade between the Parties in accordance with the provisions of this Agreement;
(c) to enhance investment opportunities and cooperation between the Parties in accordance with the provisions of this Agreement;
(d) to promote conditions of competition relating to economic relations between the Parties;
(e) to improve the efficiency and competitiveness of the Parties? manufacturing and services sectors and to expand trade between the Parties, including joint exploitation of commercial and economic opportunities in non-Parties; and
(f) to facilitate and enhance interregional economic cooperation and integration and to build upon the Parties' commitments at the WTO.
Article 1.4. Relation to other Agreements
1. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement and other agreements to which such Parties are party.
2. In the event of any inconsistency between this Agreement and other agreements to which both Parties are party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution.
Article 1.5. Regional and Local Government
1. Each Party shall take reasonable measures as may be available to it to ensure enforcement of the provisions of this Agreement by the regional and local governments and authorities and by non-governmental bodies in the exercise of governmental powers delegated by central, regional, and local governments and authorities within its territories.
2. This provision is to be interpreted and applied in accordance with the principles set out in Article XXIV:12 of the GATT 1994 and Article I:3 of the GATS.
Article 1.6. Transparency
1. Each Party shall publish or otherwise make publicly available their laws, regulations, as well as their respective international agreements which may affect the operation of this Agreement.
2. Without prejudice to Article 1.7, each Party shall promptly respond to specific questions and provide, upon request, information to each other on matters referred to in paragraph 1.
Article 1.7. Confidential Information
1. Each Party shall, in accordance with its laws and regulations, maintain the confidentiality of information designated as confidential by the other Party.
2. Nothing in this Agreement shall require a Party to disclose confidential information, the disclosure of which would impede law enforcement of the Party, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of any economic operator. (3)
Chapter 2. TRADE IN GOODS
Article 2.1. Definitions
For the purposes of this Chapter:
agricultural goods means those products referred to in Article 2 of the Agreement on Agriculture;
customs administration means the authority that, according to the legislation of each Party, is responsible for the administration and enforcement of customs laws and regulations of the Party. In the case of the UAE, it shall be the Federal Authority for Identity, Citizenship, Customs & Port Security and each of the individual Emirates Customs Authorities, and in the case of Colombia, it shall be the National Directorate of Taxes and Customs duties (DIAN);
customs duty refers to any duty or charge of any kind imposed in connection with the importation of a product, including any form of surtax or surcharge in connection with such importation, but does not include any:
(a) charge equivalent to an internal tax imposed in conformity with Article III of the GATT 1994;
(b) anti-dumping or countervailing duty that is applied consistently with the provisions of Article VI of the GATT 1994, the Agreement on the Implementation of Article VI of the GATT 1994, and the SCM Agreement; or
(c) fee or other charge in connection with importation commensurate with the cost of services rendered and which does not represent a direct or indirect protection for domestic goods or a taxation of imports for fiscal purposes;
export subsidies means those referred in Article 1(e) of the Agreement on Agriculture, including any amendment of that Article, and Article 3 of the SCM Agreement; and
import licensing means an administrative procedure requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body as a prior condition for importation into the territory of the importing Party.
Article 2.2. Scope
Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties.
Article 2.3. National Treatment
1. The Parties shall accord national treatment in accordance with Article III of the GATT 1994, including its interpretative notes. To this end, Article III of the GATT 1994 and its interpretative notes are incorporated into and form part of this Agreement, mutatis mutandis.
2. Paragraph 1 shall not apply to the measures set out in Annex 2A (National Treatment, Export Duties, and Import and Export Restrictions).
Article 2.4. Customs Duties
1. Except as otherwise provided in this Agreement, neither Party shall increase any existing customs duty, or adopt any new customs duty, on an originating good.
2. Except as otherwise provided in this Agreement, each Party shall reduce or eliminate its customs duties on originating goods in accordance with its Tariff Elimination Schedule set out in Annex 2B (Reduction or Elimination of Customs Duties).
3. Where a Party reduces its most-favoured-nation ("MFN") applied rate of customs duty, that duty rate shall apply to an originating good of the other Party if, and for as long as, it is lower than the customs duty rate on the same good calculated in accordance with Annex 2B (Reduction or Elimination of Customs Duties).
Article 2.5. Classification of Goods and Transposition of Schedules
1. 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 Harmonized System and its amendments.
2. The Parties shall mutually decide whether any revisions are necessary to implement Annex 2B (Reduction or Elimination of Customs Duties) due to periodic amendments and transposition of the HS.
3. If the Parties decide that revisions are necessary in accordance with paragraph 2, the Subcommittee on Trade in Goods shall resolve any conflict between such amendments in accordance with the procedures adopted by the Subcommittee on Trade in Goods established under Article 2.20.
4. Each Party shall ensure that the transposition of its Schedule of Tariff Commitments under paragraph 3 does not afford less favourable treatment to an originating good of the other Party set out in its Schedule of Tariff Commitments in Annex 2B (Reduction or Elimination of Customs Duties).
5. A Party may introduce new tariff splits, provided that the preferential conditions applied in the new tariff splits are not less preferential than those applied originally.
Article 2.6. Temporary Admission
1. Each Party shall, in accordance with its respective domestic laws, grant temporary admission free of customs duties for the following goods imported from the other Party regardless of their origin:
(a) professional and scientific equipment and materials, including their spare parts, and included goods for sports purposes, that are necessary for carrying out the business activity, trade, or profession of a person who qualifies for temporary entry pursuant to the laws of the importing Party;
(b) goods intended for display or use at playgrounds, theaters, exhibitions, fairs, or other similar events, including but not necessarily limited to commercial samples, advertising materials including printed materials, films, and recordings;
(c) containers and pallets in use or to be used for refilling;
(d) machinery and equipment for completion of projects or for conducting the experiments and tests relating to such projects, or for repair; and
(e) goods entered for completion of processing.
2. A Party shall not impose any condition on the temporary admission of a good referred to in paragraph 1, other than to require that such good:
(a) be used in accordance with the legislation of each of the Parties;
(b) be accompanied by a security deposit in an amount no greater than the customs duty or charges that would otherwise be owed on importation, releasable on exportation of the good;
(c) be exported on the departure of the person referred to in paragraph 1 or within such period of time as is reasonably related to the purpose of temporary admission;
(d) be capable of identification when exported;
(e) not be sold or leased while in its territory;
(f) not be imported in a quantity greater than is reasonable for its intended use; and
(g) be otherwise admissible into the importing Party's territory under its laws.
3. If any condition that a Party imposes under paragraph 2 has not been fulfilled, that Party may apply the customs duty and any other charge that would normally be owed on importation of the good.
4. Each Party shall, at the request of the importer and for reasons deemed valid by its Customs Administration, extend the time limit for temporary admission beyond the period initially fixed.
5. Each Party shall relieve the importer of liability for failure to export a temporarily admitted good upon presentation of satisfactory proof to the Party?s Customs Administration that the good has been destroyed within the original time limit for temporary admission or any lawful extension. A Party may condition relief of liability under this paragraph by requiring the importer to receive prior approval from the Customs Administration of the importing Party before the good can be so destroyed.
6. Each Party, through its Customs Administration, shall adopt and maintain procedures providing for the expeditious release of goods admitted under this Article. To the extent possible, these procedures shall provide that when such goods accompany a national or resident of the other Party who is seeking temporary entry, the good shall be released simultaneously with the entry of that national or resident.
Article 2.7. Duty-Free Entry of Commercial Samples of Negligible Value and Printed Advertising Materials
Each Party shall, in accordance with its respective domestic laws and regulations, grant duty-free entry to commercial samples of negligible value, and to printed advertising materials, imported from the territory of the other Party, regardless of their origin, but may require that:
(a) such samples be imported solely for the solicitation of orders for goods, or the solicitation of orders for services provided from the territory, of the other Party or a non-Party; or
(b) such advertising materials be imported in packets that each contain no more than one copy of each such material and that neither such materials nor packets form part of a larger consignment.
Article 2.8. Goods Returned or Re-Entered after Repair or Alteration
1. Neither Party may apply a customs duty to a good, regardless of its origin, that reenters its territory within one year after that good has been exported from its territory to the territory of the other Party for repair or alteration, regardless of whether such repair or alteration could be performed in its territory, except that a customs duty may be applied to the addition resulting from the repair or alteration that was performed in the territory of the other Party.
2. Neither Party may apply a customs duty to a good, regardless of its origin, imported temporarily from the territory of the other Party for repair or alteration, provided such good is exported from the territory of the importing Party according to the national laws and regulations.
3. For the purposes of this Article, "repair" or "alteration" means any operation or process undertaken on a good to remedy operational defects or material damage and entailing the re-establishment of the good to its original function, or to ensure its compliance with technical requirements for its use. Repair or alteration of a good includes restorating, renovating, cleaning, resterilizing, maintenance, or other operation or process regardless of a possible increase in the value of the good that does not:
(a) destroy a good's essential characteristics or create a new or commercially different good;
(b) transform an unfinished good into a finished good; or
(c) change the function of a good.
Article 2.9. Import and Export Restrictions
1. Article XI of the GATT 1994 and its interpretive notes are incorporated into and made a part of this Agreement, mutatis mutandis.
2. Paragraph 1 shall not apply to the measures set out in Annex 2A (National Treatment, Export Duties, and Import and Export Restrictions).
Article 2.10. Import Licensing
1. No Party shall adopt or maintain a measure that is inconsistent with the Import Licensing Agreement.
2. Promptly after this Agreement enters into force for a Party, that Party shall notify the other Parties of its existing import licensing procedures, if any. The notice shall include the information specified in Article 5.2 of the Import Licensing Agreement and any information required under paragraph 6.