Title
Economic Complementation Agreement for the Establishment of an Enlarged Space between Colombia and Chile (ACE No. 24)
Preamble
The Government of the Republic of Chile and the Government of the Republic of Colombia.
Whereas:
The desirability of promoting greater economic complementarity between our countries and promoting a more active participation in the global economy.
The importance of strengthening the Latin American Integration Association (ALADI), and achieve the objectives set out in the Montevideo Treaty 1980, through the conclusion of bilateral and multilateral agreements the widest possible.
Colombia's participation in the Cartagena Agreement and the commitments of the related to this country.
The agreement in the guidelines of trade policies of the two countries in both tariff and in the guidelines of their economic policies.
The significance in the development of both countries may take appropriate cooperation in the areas of trade, industrial and services.
The desirability of achieving a more active involvement of the economic operator both public and private, both countries in efforts to increase the mutual exchange.
Agree:
Body
In conducting an economic complementarity agreement for the establishment of an enlarged economic area in accordance with the Montevideo Treaty 1980 and resolution 2 of the Council of Ministers of ALADI. this Agreement shall be governed by the provisions and rules are set out below.
Chapter I. Objectives of the Agreement
Article 1.
This agreement aims:
(a) Establish, in the shortest time possible, an enlarged economic area between the two countries, allowing the free movement of goods, services and factors of production;
(b) Intensify economic and trade relations between the signatory countries through a total release of taxes and restrictions on imports originating in the same;
(c) Encourage coordinated action in international economic forums, as well as in relation to the industrialized countries, aimed at improving access for products of the signatory countries to world markets;
(d) Coordinate and complement the economic activities, especially in the areas of industrial and services;
(e) Encourage investments aimed at an intensive use of markets of the signatory countries and strengthen their competitiveness in the global exchanges; and
(f) To facilitate the establishment and operation of multinational companies bilateral and regional character.
Chapter II. Release Programme
Article 2.
The products included in the schedule of tariff relief referred to in article 3 of this Agreement shall enjoy, from 1 January 1994 the total elimination of non-tariff restrictions, except those referred to in Article 50 of the Montevideo Treaty 1980.
Furthermore, the signatory countries shall not introduce any new restrictions on the reciprocal trade.
Article 3.
The signatory countries agree free of charge their reciprocal trade by 1 January 1999. to this effect, have agreed as follows:
(a) Apply, from 1 January 1994 for the reciprocal trade, liens listed below:
Programme of relief of Chile: for products whose tariff applicable to the signature of this Agreement is 11%:
The 1-i-94 30-vi-94 to:
8. 5%
The 1-vii-94 31-xii-94 to:
6. 5%
The 1-i-95 31-xii-95 to:
4. 5%
The 1-i-96 31-xii-96 to:
2. 5%
With effect from 1-i-97:
0%
Programme of relief of Colombia: for products whose tariff applicable to the signature of this Agreement is:
The 1-i-94 30-vi-94 to:
The 1-vii-94 31-xii-94 to:
The 1-i-95 31-xii-95 to:
The 1-i-96 31-xii-96 to:
With effect from 1-i-97:
(b) The products listed in Annex N or 1 shall be subject to tariff relief that shall begin on 1 January 1994 and conclude on 1 January 1999, according to the following schedule:
Programme of relief of Chile: for products whose tariff applicable to the signature of this Agreement is 11%:
The 1-i-94 31-xii-94 to:
8. 5%
The 1-i-95 31-xii-95 to:
7. 5%
The 1-i-96 31-xii-96 to:
6. 5%
The 1-i-97 31-xii-97 to:
4. 5%
The 1-i-98 31-xii-98 to:
2. 5%
With effect from 1-i-99:
0%
Programme of relief of Colombia: for products whose tariff applicable to the signature of this Agreement is:
20%
15%
10%
5%
The 1-i-94 31-xii-94 to:
15%
12%
8%
4%
The 1-i-96 31-xii-96 to:
11%
9%
6%
3%
The 1-i-97 31-xii-97 to:
7%
6%
4%
2%
The 1-i-98 31-xii-98 to:
3%
3%
2%
1%
With effect from 1-i-99:
0%
0%
0%
0%
(c) If at any moment a signatory reduces its tariff charges to third countries for one or more products covered by this Agreement, proceed to adjust the charge applicable to the reciprocal trade in accordance with the proporcionalidades set out in subparagraphs a. and b. as appropriate.
Article 4.
The products listed in Annex 2 to this Agreement which are part of the agreement of partial scope. 14 signed between Chile and Colombia within the framework of ALADI, enjoy n the tariff preferences that listed in annex under the conditions laid down therein.
Article 5.
The schedule of tariff relief referred to in article 3 of this Agreement shall not apply to the products referred to in chapter IV and Annex N or 3.
Article 6.
The signatory countries may agree special programmes to incorporate the products contained in annex N 3 or for the release of this Agreement. it may at any time Accelerate the schedule of tariff relief for products or groups of products as mutually agreed.
Article 7.
For the purposes of trade covered by this Agreement are understood by "taxes" customs duties and other charges of equivalent effect, fiscal, monetary, exchange-rate or of any nature that focus on imports or exports. are not included in this concept when similar fees and charges commensurate with the cost of services rendered.
The term "restrictions" any measure of administrative, financial, exchange or of any kind, through which prevents or hinders a party, by unilateral decision, its imports or exports.
Article III. Origin
Article 8.
The signatory countries shall apply to imports under the programme of release of this Agreement, the general rules of origin of ALADI established by resolution 78 of the representatives of the Association committee.
Transported goods in transit through a third country, since a signatory to the territory of the other signatory, with or without transhipment or temporary storage under the surveillance of the customs authority competent in such countries shall be considered as direct consignment provided that:
(a) Are not intended to use or trade, employment in the country of transit; and
(b) None during transport, storage, and any other operation than unloading and reloading or handling to keep them in good condition or to ensure its preservation.
In addition to the documentation required by article 7 of resolution 78, the certificates of origin issued for the purposes of tariff relief under this Agreement, shall contain an affidavit of the final producer or exporter of goods in that expresses its full compliance with the provisions on the origin of the Agreement.
Article 9.
Notwithstanding the above, administering the Commission established in article 33 of this Agreement shall be empowered to set and modify the rules of origin to goods or specific sectors other than the general regime established in this chapter.
Article IV. Automotive Sector
Article 10.
Imports of products included in annexes and N N or 4 or 5 originating in the signatory countries shall be released of taxes and restrictions from 1 January 1994. the marketing of these products, in the territory of the importing country shall be made without any restriction that taxes that each country applied internally.
Article 11.
Motor vehicles and transport of goods and persons referred to in the annex N or (4) shall be considered as originating in the signatory countries where the destination port CIF value of materials used in the assembly or assembling, originating in non-member countries of this Agreement does not exceed 60 per cent of the FOB value of exports of the vehicle. this percentage shall be calculated on the basis of the procedures established by the IMF.
Article 12.
As regards the parties and spare parts for vehicles referred to in the preceding article specified in Annex N or 5 shall be governed by the rules of origin contained in this Agreement, and shall benefit from the provisions of article 10 of this chapter.
The administrative commission established in article 33 of this Agreement is empowered to incorporate new products to annex N or 5.
Article 13.
Trade between signatory countries of the products covered by this chapter does not grant direct incentive or for export.
Article V. Safeguard Clauses
Article 14.
Prior notice, the signatory countries may apply to imports under the programme of release of this Agreement, the regional regime of the safeguard of ALADI approved by Resolution 70 representatives of the Association of the Committee with the following limitations:
(a) In the event that the reasons of imbalances in the overall balance of payments of a signatory, measures may be taken up to a year and shall not be discriminatory or selective applied tariff couples surcharges affecting the total imports.
(b) In cases in which the importation of one or more goods benefiting from the application of chapter II of this Agreement causes or threatens to cause significant damage to the domestic production of the like or directly competitive goods, the signatory countries may apply temporary safeguard clauses, and in a non-discriminatory manner, for the period of one year.
The extension of the safeguard clauses for a further period, require a joint review by the signatory parties, the background and reasons for their implementation, which must be reduced in its intensity and extent to which the expiration of the additional period, which may not exceed one year.
The administrative commission established in article 33 of this agreement shall define, within 90 days of its Constitution, which shall mean significant damage and establish procedures for the implementation of the provisions of this chapter.
Article VI. Unfair Trade Practices
Article 15.
If in the reciprocal trade situations of dumping or other unfair trading practices as well as distortions arising from the application of export subsidies or grants equivalent internal nature, the country concerned may apply the measures provided for in its domestic legislation. without prejudice to the foregoing be conducted simultaneously, an exchange of information through the competent national bodies referred to in article 33 of this Agreement.
To this end, countries may impose anti-dumping, countervailing or surcharges ad-valorem, according to their respective national legislation on positive evidence of serious injury caused to the domestic production of the threat of injury to the production of material retardation or at the beginning of the same.
Fees or surcharges above shall not exceed, in any case, the margin of dumping or the amount of the subsidy as appropriate and shall be limited to the extent possible, to the extent necessary to prevent injury, threat of injury or delay.
In any case, both countries shall apply their regulations in these fields, in accordance with the General Agreement on Tariffs and Trade (GATT) and shall take as a reference codes Anti-dumping and Subsidies and Countervailing Measures of this Agreement.
Article 16.
The signatory countries recognise that pricing policies public may have distortive effects on bilateral trade. accordingly, agree not to resort to public policies and practices that pose a nullification or impairment of benefits arising directly or indirectly under this Agreement.
The administrative commission established in article 33 of this Agreement, monitored pricing practices and policies in specific sectors to detect cases that would lead to significant distortions in bilateral trade.
Chapter VII. Treatment of Internal Taxation
Article 17.
In accordance with article 46 of 1980, the Montevideo Treaty countries signatory to this Agreement shall grant to imports originating in the territory of the member countries, a treatment no less favourable than that applied to like domestic products in respect of taxes, taxes and other internal charges. the recovery of internal taxes on imports originating should be based on the CIF value over the applicable customs duties.
Chapter VIII. Government Procurement
Article 18.
The Commission, article 33 shall define during the first year of implementation of the Agreement, the scope and terms governing the procurement by governmental between the signatory countries. for this purpose, taking into account the criteria set out in the General Agreement on Tariffs and Trade (GATT) for the signatory countries enjoy open, transparent, equitable and competitive with respect to government procurement.
Article IX. Trade Promotion
Article 19.
The Parties to this Agreement, concluded of trade promotion programmes, inter alia, exhibitions, fairs and exhibitions, as well as meetings and reciprocal visits entrepreneurs, information on supply and demand and market studies.
Furthermore, the signatory countries, undertake to facilitate participation in fairs, by streamlining administrative procedures.
Article X. Investments
Article 20.
The signatory countries shall promote the development of the investments esablishement and constitution of companies in their territories, both with capital of one or both countries as to the possible participation of third parties.