Title
Free Trade Agreement between the Republic of Per and the Republic of Guatemala
Preamble
The Government of the Republic of Peru, on the one hand, and the Government of the Republic of Guatemala, on the other, resolved to:
To strengthen the special bonds of friendship and cooperation among them and promote regional economic integration;
Promote the creation of a larger market and insurance for goods and services produced in their respective territories;
Promote a comprehensive economic development to reduce poverty;
Encourage the creation of new employment opportunities and improve working conditions and living standards in their respective territories;
Establish clear rules governing their mutual benefit and commercial exchanges;
To ensure a predictable legal framework for business and trading and investment;
Recognizing that the promotion and protection of investments of a Party in the territory of the other party will contribute to increasing the flow of investment and stimulate business of mutual benefit;
To prevent distortions in their reciprocal trade;
To promote the competitiveness of their enterprises in global markets;
To facilitate trade promote transparent and efficient customs procedures to ensure predictability for importers and exporters;
Stimulating creativity and innovation and promote innovation in trade sectors of their economies;
Promote transparency in international trade and investment;
Preserving its ability to safeguard the public welfare; and
Develop their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization and other agreements to which they are party,
Have agreed as follows:
Body
Chapter 1. Initial General Provisions and Definitions
Section A. Initial Provisions
Article 1.1. Establishment of the Free Trade Area
The Parties to this Treaty in accordance with Article XXIV of the General Agreement on Tariffs and Trade of 1994 (and article V of the WTO General Agreement on Trade in Services of the WTO, establish a free trade area.
Article 1.2. Objectives
The objectives of this Agreement are:
(a) Encourage expansion and diversification of trade between the parties;
(b) Eliminate unnecessary barriers to trade and facilitate the cross-border movement of goods and services between the parties;
(c) Promote conditions of fair competition in the Free Trade Area;
(d) Increase investment opportunities in the territories of the Parties;
(e) An adequate and effective protection and enforcement of intellectual property rights in the territory of each party, taking into account the balance between the rights and obligations arising from the same; and
(f) Create effective procedures for the implementation and enforcement of this Treaty, for its joint administration and to prevent and resolve disputes.
Article 1.3. Relation to other International Agreements
1. The Parties confirm their rights and obligations existing between them under the WTO Agreement and other agreements to which the parties are party.
2. In the event of any inconsistency between this Agreement and the agreements referred to in paragraph 1, this treaty shall prevail to the extent of the inconsistency, except as otherwise provided in this Treaty.
Article 1.4. Scope of Obligations
Each Party shall take all necessary measures to implement the provisions of this Treaty in its territory and at all levels of government.
Section B. General Definitions
Article 1.5. Definitions of General Application
For the purposes of this Treaty, unless otherwise specified:
WTO TRIPs Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights related to trade in the WTO; 1
WTO Anti-Dumping Agreement means the Agreement on Implementation of article VI of the General Agreement on Tariffs and Trade 1994 (of WTO;
Customs valuation agreement means the WTO Agreement on Implementation of article VII of the General Agreement on Tariffs and Trade 1994 (of WTO;
GATS means the WTO General Agreement on Trade in Services of the WTO;
WTO / SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures of the WTO;
TBT Agreement means the WTO Agreement on Technical Barriers to Trade;
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, dated 15 April 1994;
The WTO Agreement on Safeguards means the Agreement on
WTO safeguards;
WTO Agreement on Subsidies means the Agreement on
Subsidies and countervailing measures of the WTO;
1 for greater certainty, WTO TRIPs Agreement includes any exemption existing between the parties of any provision of the WTO TRIPS Agreement granted by WTO members in accordance
With the WTO Agreement.
Customs tariff means any tax or tariff rate to imports and a charge of any kind imposed in connection with the importation of goods, including any form of surtax or surcharge on imports, except any:
(a) Charge equivalent to an internal tax established in accordance with Article III.2 of GATT 1994;
(b) Anti-dumping or countervailing measures to be applied in accordance with the domestic legislation of a party and in accordance with article VI of the GATT 1994 and the Agreement on Subsidies and Countervailing Measures and the WTO Agreement on the implementation of article VI of GATT 1994 and the WTO; or
(c) Duty or other charge in connection with importation commensurate with the cost of services rendered;
Chapter means the first two digits of the tariff classification number under the Harmonized System;
Commission means the Free Trade Commission established under article 17.1 (the Free Trade Commission);
Government procurement means the process by which a Government obtains the use of goods or acquires or services. or any combination thereof, for governmental purposes and not with a view to commercial sale or resale or with a view to use in the production or supply of goods or services for commercial resale or sale;
Days means calendar days;
Enterprise means any entity constituted or organized under the applicable law, whether or not for profit and whether private or government owned, including companies, trusts, shares, sole proprietorship firms, joint ventures and other forms of association;
GATT 1994 means the General Agreement on Tariffs and Trade 1994 (of WTO;
Measure includes any law, regulation, procedural requirement or practice; goods means any material or product, article;
Goods of a Party means domestic products as understood in GATT 1994 or goods such as the parties may agree, and includes originating goods of that Party;
Goods originating means qualifying under the Rules of Origin set out in chapter 3 (Rules of Origin and Origin Procedures);
National means a natural person who has the nationality of a Party according to annex 1.5 or a permanent resident of a party;
Central level of Government means the national level of government;
Regional level of government means for:
(a) Guatemala: "regional level of government is not applicable; and
(b) Peru: regional government of the Political Constitution of the Republic of Peru and other applicable legislation;
A local government level of means for:
(a) Guatemala: municipalities;
(b) Peru: provincial and local municipalities;
WTO means the World Trade Organization;
A Party means the Republic of Guatemala, on the one hand, and the Republic of Peru, on the other, hereinafter referred to collectively as the parties;
Heading means the first four digits in the tariff classification number under the Harmonized System;
Person means a natural person or an enterprise;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System of goods, including its general rules of interpretation, and notes to section notes chapter;
Subheading means the first six digits in the tariff classification number under the Harmonized System; and
Territory means for a party, the territory of that Party as set out in annex 5.
Attachments
For the purposes of this Treaty, unless otherwise specified:
Natural person who has the nationality of a Party means:
(a) With respect to the Republic of Guatemala, a Guatemalan as defined in articles 144 and 145 and 146 of the Political Constitution of the Republic of Guatemala; and
(b) With respect to the Republic of Peru by Peruvians, birth or naturalization option in accordance with the Constitution and domestic legislation.
2 territory means:
(a) With respect to the Republic of Guatemala, the Land, Sea and Air Space under its sovereignty, as well as the exclusive economic zone and continental shelf over which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law; and
(b) With respect to the Republic of Peru, the mainland, islands, the maritime areas and the airspace above them, under the sovereignty or sovereign rights and jurisdiction of Peru, in accordance with its domestic law and international law.
2 for greater certainty, the definition and references to "territory" contained in this Treaty apply solely for purposes of determining the geographical scope of application.
Chapter 2. Market Access for Goods Article 2.1 : Scope of Application
Except as otherwise provided in this Treaty, this chapter applies to trade in goods of a party.
Section A. National Treatment Article 2
2: National Treatment
1. Each Party shall accord to the National Treatment goods of the other Party in accordance with article III of the GATT 1994, including its interpretative notes and to this end article III of the GATT 1994 and its interpretative notes are incorporated into this Agreement and form an integral part of this Agreement mutatis mutandis.
2. Paragraph 1 shall not apply to the measures set out in annex 2.2.
Section B. Article 2 Tariff Elimination
3: tariff elimination
1. Except as otherwise provided in this Treaty, neither party may increase any existing Customs Tariff, or adopt any new customs tariff, originating on goods of the other party.
2. Except as otherwise provided in this Treaty, each Party shall eliminate its customs duties on goods originating of the other Party in accordance with annex 2.3.
3. The tariff elimination program under this chapter does not apply to goods used, including those identified as such in headings or subheadings of the Harmonized System. Used goods also include those goods reconstructed, renovated, recovered remanufacturadas, or any other similar name given to goods after having been used have been subjected to a process to restore their original characteristics or specifications, or to restore the functionality when they had new. 4. At the request of any party, there shall be consultations to consider the improvement of conditions of market access tariff in accordance with annex 2.3.
5. Notwithstanding article 17.1 (the Free Trade Commission), an agreement between the parties to improve conditions of market access tariff on a good shall supersede any customs tariff or category defined in the
This greater certainty for paragraph 1 does not apply to goods recycled.
Annex 2.3 for such good when approved by the parties in accordance with its applicable legal procedures.
6. For greater certainty, a Party may:
(a) A customs duty to increasing the level established in annex 2.3 Following a unilateral reduction; or
(b) Maintain or increase a customs duty as authorized by the Dispute Settlement Body of the WTO.
Section C. Special Regimes
1. No Party may adopt any new waiver of customs duties or the extension of the application of an existing waiver of customs duties with respect to existing recipients or extend it to new beneficiaries, when the exemption is qualified explicitly or implicitly, the fulfillment of a performance requirement.
2. No party may condition, explicitly or implicitly, the continuation of any existing waiver of customs tariffs on the fulfilment of a performance requirement.
1. Each Party shall allow the temporary admission free of customs duties for the following goods, regardless of their origin:
(a) Professional equipment, including equipment for medical, scientific research activities, the press or television broadcasting and cinematographic, software and equipment necessary for the exercise of the business activity, trade or profession of a person who qualifies for temporary entry pursuant to the laws of the importing Party;
(b) Demonstration or goods intended for display at exhibitions, fairs, meetings or similar events;
(c) Commercial Samples and Advertising and recordings and films;
(d) Goods admitted for sports purposes.
2. Each Party shall, upon request of the person concerned and for reasons deemed valid by its customs authority, shall extend the time limit for temporary admission beyond the period initially fixed in accordance with the national legislation.
3. No party may condition the duty-free temporary admission
Customs to goods described in paragraph 1, a different conditions to which the goods:
(a) It shall be used solely by or under the personal supervision of a national or resident of the other party in the exercise of the business activity, ex officio, or professional sport of that person;
(b) While not be sold or leased in its territory;
(c) Be accompanied by a bond or security in an amount not exceeding the charges that would otherwise due in its case on entry or final importation reimbursable, at the time of the exportation of goods;
(d) Be capable of identification when exported;
(e) To be exported on the departure of the person referred to in subparagraph (a), or within a time limit which corresponds to the purpose of the temporary admission as the party may establish; or within one year unless extended;
(f) Be admitted in quantity no greater than is reasonable for agreement with that it intended use; and
(g) Be otherwise admissible into the territory of the Party in accordance with its national legislation.
4. If has not been fulfilled any of the conditions imposed by a Party under paragraph 3, the party may apply the customs duty and any other charge that would normally be due for the good plus any other charges or penalties provided for under its domestic law.
5. Each Party shall adopt or 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.
6. Each Party shall permit a good temporarily admitted under this article to be exported through a Customs port through other than that which it was admitted.
7. Each Party shall provide that the importer or another person responsible for a good admitted under this article, is not responsible for the failure to export the goods, satisfactory upon presentation of proof to the importing Party that the good has been destroyed within the original period fixed for temporary admission or any lawful extension.
8. Subject to Chapter 12 (investment) and chapter 13 (cross-border trade in services), no party may:
(a) Prevent a vehicle or container used in transport
International has entered into its territory from the other party to exit from its territory on any route that is reasonably related to the economic and prompt departure of such vehicle or container;
(b) Require bond or impose any penalty or charge solely by reason of the entry of a vehicle or container is different from that of departure;
(c) Condition the release of any obligation, including any bond that has applied for the entry of a vehicle or container into its territory on its exit is made by a port in particular; and
(d) Require that the carrier bringing a container or vehicle from its territory to the territory of the other party, be the same vehicle or carrier that takes into the territory of the other party.
9. For the purposes of paragraph 8, a truck, tractor tractocamión means a vehicle, trailer or a trailer unit or locomotive, a freight railroad or other equipment.
26:.
"re-imported goods after repair or alteration
1. No party may apply a customs duty to a good regardless of their origin, which has been reingresada in its territory after having been temporarily exported from its territory to the territory of the other party to be repaired or altered, regardless of whether such repair or alteration could be performed in the territory of the Party from which the good was exported for repair or alteration.
2. No party may apply a customs duty to a good regardless of their origin, be admitted temporarily from the territory of the other party, to be repaired or altered.
3. For the purposes of this article, repair or alteration does not include an operation or process that:
(a) Destroys the essential characteristics of a good or creates a new or different commercially or good;
(b) Transform an unfinished good into a finished goods.
27:.
"free import tariffs for Commercial Samples and Advertising of negligible value printed materials
Each Party shall grant duty-free import tariffs to Commercial Samples and Advertising of negligible value printed materials imported from the territory of the other party, regardless of their origin, but may require that:
(a) Such samples be imported solely for purposes of solicit orders
Goods or services provided from the territory of the other party or of a non- Party; or
(b) Such advertising materials be imported in each packets that contain no more than one copy printed materials and that neither the nor packets form part of a larger consignment.