Title
General Treaty of Integration and Economic and Social Cooperation for the Conformation of a Common Market between the Republic of Bolivia and the Republic of Peru
Preamble
The Government of the Republic of Bolivia and the Government of the Republic of Peru, hereinafter referred to as "The Parties ":
CONSIDERING:
The fraternal and deep bond that unites the peoples of Bolivia and Peru that share a common space and history;
ANIMATED:
For the desire to permanently strengthen the traditional bonds of friendship and cooperation between both countries and consolidate the community of interests that bind them;
CONVINCED:
The importance of broadening and deepening binational integration with a view to building an integrated economic, social, political and cultural space between both countries, with a vision of the future and orientation of modernity that contributes to deepen the integration of the Andean Community and the construction of an integrated South American space;
CONSIDERING:
The objectives set forth in the Treaty of Montevideo 1980, which establishes the Latin American Integration Association and the Cartagena Agreement;
RECOGNIZING:
The importance of the community legal heritage of the Cartagena Agreement and of the Peruvian-Bolivian bilateral relationship;
CONSIDERING:
That in accordance with the stipulations of Article 1, letter e) of the Treaty establishing the Court of Justice of the Andean Community, the Member Countries may adopt Agreements among themselves within the framework of the process of subregional integration, which form part of the order of the Community;
CONSCIOUS:
That the binational integration contributes to a more dynamic and integral economic and social development and to improve the quality of life of its peoples, as well as to achieve a more efficient insertion in the current globalized world;
RECOGNIZING:
That binational integration should lead to a balanced and harmonious development, which implies an equitable distribution of the benefits derived from it and the increasing complementation of their economies;
PERSUADED:
That agriculture and the manufacturing sector, particularly the micro and small enterprises, play a significant role in generating wealth and labor occupation in their territories and that they constitute an important base for the reduction of poverty and the improvement of quality of life;
CONSIDERING:
That productive enterprises, social projects and physical interconnection play a substantive role in the development and integration of peoples;
RECOGNIZING:
The commitment of both Parties to advance in the integration process respecting the norms of conservation of the environment and promoting sustainable development;
REAFFIRMING:
Respect for the cultural diversity of their peoples, common wealth that both countries seek to preserve and develop as an element of union of both nations;
RECOGNIZING:
The value of migrations as a dynamic factor of integration and knowledge among the peoples
PERSUADED:
That civil society must play a relevant role in binational integration;
DECIDED:
To expand and deepen the bonds of cooperation that unite them, as a tool to strengthen binational integration;
REAFFIRMING:
Your commitment to the principles of equality, social inclusion, justice, peace, solidarity and democracy;
Have agreed, in accordance with the provisions of Article 1, letter e) of the Treaty establishing the Court of Justice of the Andean Community, to sign the present
TREATY
Body
Article P One. Objectives, Principles, Instruments and Institutional Framework
Chapter I. Objectives
Article 1.
The present Treaty has the following main objectives:
Deepen binational integration, as a contribution to the consolidation process of the Andean Community and the construction of an integrated South American space;
a) To favor the sustainable and integral development of both countries, with special emphasis on the economic, social, political, cultural and environmental aspects;
c) Promote the balanced and harmonious development of both countries, in order to raise the living standards of their populations;
d) Gradually harmonize economic and social policies;
Increase bilateral trade, tourism and investment flows;
e) Strengthen cooperation and promote the complementarity and competitiveness of their economies;
f) Intensify joint actions aimed at strengthening physical integration, particularly in its infrastructure and services, energy and transport and communications components;
g) Strengthen democratic security through the adoption of specific cooperation mechanisms.
h) Promote joint social development, as well as the fight against poverty and social exclusion, with special emphasis on the populations of the border regions;
i) Promote the participation of regional and local authorities, the private sector and civil society organizations in the binational integration and cooperation process; and
k) To foster the necessary conditions to gradually move towards the formation of a Common Market.
Chapter II. Principles and Instruments
Article 2.
The present Treaty is based on the reciprocity of rights and obligations between the Parties.
Article 3.
The Parties shall promote the convergence of this Agreement with other Integration Agreements.
Article 4.
The Parties shall implement the pertinent clauses of this Treaty in accordance with the provisions on special regime for countries with less relative economic development contemplated in the Cartagena Agreement and in the Montevideo Treaty of 1980.
Chapter III. Legal Framework of the Bilateral Relationship
Article 5.
The Parties recognize the importance of the legal system of the Peruvian-Bolivian bilateral relationship, made up of all the treaties and other binding international instruments in force.
Article 6.
The Parties shall promote the progressive development of this Treaty through agreements that complement it, which will be part of the legal system referred to in the previous Article.
Chapter IV. Institutional Mechanisms
Article 7.
The institutional mechanisms of the present Treaty will be:
a) The Presidential Meetings
b) The Binational Ministerial Cabinet
c) The Ministerial Commission
d) The Executive Committee
Article 8.
The Presidential Meetings, will define the political guidelines of the binational link and will have an annual periodicity.
Article 9.
The Binational Ministerial Cabinet will deal with sectoral issues and will meet on the occasion of the Presidential Meetings.
Article 10.
The Ministerial Commission, made up of the Ministers of Foreign Affairs and the Ministers in charge of Foreign Trade and Integration and Economic Development of both countries, as appropriate, will evaluate the process of binational integration, adopt the measures for the development of the objectives of this Treaty and will comply with the guidelines given in the Presidential Meetings .The Ministerial Commission may invite other Ministers responsible for the areas involved in the topics that require particular attention.The Commission will meet at least twice a year.
Article 11.
The Executive Committee, constituted by senior officials of the respective Ministries of Foreign Affairs and of the Ministries responsible for Foreign Trade and Integration and Economic Development of both countries, as appropriate, will be responsible for articulating, guiding and supervising the implementation of this Treaty, coordinate with the respective sectors and national, regional and local entities and convene them as appropriate, develop and / or channel initiatives on agreements complementary to this Treaty and recommend courses of action to the Ministerial Commission.
Article 12.
The Parties shall promote the contribution and participation of the respective national Congresses in the integrating process that this Treaty fosters, through the mechanisms and modalities that they consider pertinent.
Article 13.
The Parties agree to establish a Business Advisory Council, made up of representatives of organizations and business sector associations, which will be empowered to submit recommendations on the binational integration process.
Article 14.
The Parties agree to establish a Labor Advisory Council, made up of representatives of organizations and unions in the labor sector, which will have the power to make recommendations on the binational integration process.
Article 15.
The Ministerial Commission may establish consultative mechanisms composed of representatives of other sectors of civil society, with the purpose of promoting their active participation in the binational integration process.
Article P Two. Commercial Integration
Chapter I. Objectives
Article 16. Objectives
The bilateral commercial integration will have like objectives the expansion and diversification of the commerce of originating merchandize of the Parts, the complementation of economic activities and the elimination of encumbrances and the restrictions of all order to the reciprocal commerce of originating merchandize.
The Parties entrust the Ministerial Commission with the evaluation of the process of binational integration, adopt the necessary measures to propitiate the conditions that allow to progress gradually towards the conformation of a Common Market.
Chapter II. Free Movement of Goods
Article 17. Free Trade Regime
The Parties, within the framework of the Cartagena Agreement and its related regulations, of the Trade Agreement between the Republic of Peru and the Republic of Bolivia of November 12, 1992 and its Addenda and of Decision 414 of the Commission of the Andean Community, they make effective the free trade zone between both countries, in accordance with the agreement expressed in the Notes exchanged on the date of subscription of this General Treaty.
In accordance with the foregoing, the Parties agree not to create or apply new "tariff levies" or "restrictions of any order" on reciprocal trade.
Article 18. Liens and Restrictions of All Kinds
In order to identify and eliminate "encumbrances" and "restrictions of all kinds", the rules of Chapter VI of the Cartagena Agreement will apply.
Article 19. Origin of the Goods
The determination of the origin of the goods will be governed by what is established in the norms of the Andean legal system.
Article 20. Certifications of Origin
In order to facilitate and make transparent the commercial operations, the Parties agree to collaborate to perfect the evaluation and control systems of the certificates of origin. For this purpose, the competent authorities will promote mechanisms to automate the aforementioned systems.
Article 21. Safeguards
With respect to safeguard measures, the Parties will be governed by the provisions of the Andean legal regulations.
The Party that applies provisional measures, in accordance with the provisions of Article 97 of the Cartagena Agreement, shall endeavor to submit, within 30 days, to the General Secretariat of the Andean Community and to the other Party, a report on the reasons in which bases its application.
Article 22. Technical Barriers to Trade
The standards, technical regulations, conformity assessment and metrology procedures that the Parties develop, adopt and implement should not have the purpose or effect of creating unnecessary technical barriers to trade.For this purpose, they will be governed by the provisions contained in the community regulations on the matter and the Agreement on Technical Barriers to Trade of the World Trade Organization.
Article 23. Customs Matters and Mechanisms to Eradicate Smuggling and other Customs Offenses
The Parties will promote actions to establish cooperation mechanisms and projects in customs matters in order to simplify and coordinate customs procedures to facilitate trade, strengthen the exchange of electronic and online information, and the certification of customs documents.
Likewise, the Parties agree to carry out joint actions to eradicate smuggling and other customs offenses, generating the conditions for the development of binational formal trade.
To this end, the Mutual Assistance and Cooperation Agreement on Customs Matters, signed on August 13, 2003, which is part of this Treaty, will be deepened by Additional Protocols.
Notwithstanding the foregoing, the customs administrations of the Parties may enter into other customs agreements within their jurisdiction, which shall be incorporated through Additional Protocols to this Treaty.
The Parties agree to give priority to the eradication of organized contraband in agricultural products such as sugar, dairy products, rice, wheat flour, pasta and alpacas; and other goods that the Parties consider relevant, such as hydrocarbons. They agree, also, that no later than thirty days after signing the Treaty, a Bilateral Commission will be set up to deal with the matter. Likewise, said Commission will recommend the measures within a period of ninety days, which will be implemented no later than two months later.
Article 24. Transit of Persons, Vehicles and Merchandise
Without prejudice to Andean regulations, the Parties shall adopt bilateral mechanisms or instruments to facilitate the transit of persons, vehicles and merchandise, between their territories, especially in the border area.
Article 25. Merchandise Transit Regime
The Parties, after evaluation, through a special working group made up of government officials and in consultation with representatives of the private sector, of the procedures for the application of the cargo handled from and to Bolivia by Peruvian territory and ports authorized for that purpose. In effect, they will adopt a manual of procedures, based on the different bilateral and multilateral agreements in force between both countries that are relevant, based on the Peru-Bolivia Transit Agreement of 1948, the international goods transit procedure between Peru and Bolivia ( TIM) of 1991 and the applicable Andean regulations.
Article 26. Agriculture
The Parties will promote the development of the agricultural and agro-industrial sector, as a dynamic factor of food security and exports, as well as to improve the sustained supply of both markets. The Parties will exchange information related to their national development plans for the sector, in order to coordinate, as much as possible, joint actions and projects for productive complementation and cooperation in specific areas.
Article 27. Sensitive Agricultural Products
In sensitive agricultural products for Bolivia or Peru, the Parties, at the request of any of them, will collaborate in the evaluation of compliance with origin requirements in a product.This should not mean intervention in the normal procedures used in the country of origin of the merchandise, nor any delay in the usual export procedures.
Article 28. Subsidies for the Export of Agricultural Products and Domestic Support
The Parties agree not to apply to reciprocal agricultural trade, export subsidies, domestic support and other measures of equivalent effect that distort trade and production of agricultural origin.
Article 29. Sanitary and Phytosanitary Measures
The Parties with the aim of facilitating the commercial exchange of plants, plant products, animals, products of animal origin, food for human and animal consumption, agricultural pesticide additives, veterinary products, hydrobiological products, pharmaceuticals and cosmetics, so that it contributes In a manner appropriate to human, animal and plant protection, as well as food in general, they decide to coordinate and work together in the implementation of the standards and procedures established by the international organizations of which the Parties are a part. This work will also be oriented to the perfection of the mechanisms of information, notification, surveillance systems and others that reduce the sanitary and phytosanitary risks, eliminating the unnecessary technical barriers that affect the trade of said products.
Article 30. Double Taxation and Exchange of Information
The Parties agree on the full validity of the Common Regime approved by the Commission of the Cartagena Agreement to avoid double taxation and prevention of tax evasion, a rule designed to encourage collaboration between tax administrations and attract foreign investment.Likewise, they agree to develop cooperation mechanisms between the Tax Administrations, within the framework of the aforementioned Regime.
Article 31. Competition Policy
The Parties recognize the importance of promoting and protecting free competition. To this end, the Parties undertake to ensure free competition, which guarantees that the benefits of commercial opening are not undermined by anti-competitive business practices, whether public or private.
Chapter III. Commerce of Services, Investments and Circulation of Capital
Article 32. Trade In Services
The Parties shall promote the liberalization of bilateral trade in services in the framework of decisions 439 and 510 of the Commission of the Andean Community and the rules that may be adopted in the future on the matter, making use of the provisions of Article 16 of the cited Decision 439.
Likewise, the Parties will promote the development of bilateral agreements on the movement of service providers.
Article 33. Promotion and Reciprocal Protection of Investments
The Parties agree that the treatment, promotion and protection of bilateral investments will be governed by the disciplines of access, substantive obligations and principles included in the Agreement for the Promotion and Reciprocal Protection of Investments signed between Peru and Bolivia on July 30, 1993.
Article 34. Circulation of Capitals
The Parties will move forward in the process of liberalization of the circulation of capital between the two countries, taking into account the Decisions of the Andean Community.
Chapter IV. Intelectual Property
Article 35. Intellectual Property
The Parties recognize the importance of protecting Intellectual Property rights as a tool for the development of both countries.
Article 36. Access and Protection of Genetic Resources, Traditional Knowledge and Cultural Manifestations
The Parties shall adopt strategies, measures and coordinated actions to prevent the use of genetic resources and traditional knowledge, without the prior informed consent of the country and / or the holders of traditional knowledge.
Likewise, they will promote the respect and protection of cultural manifestations, of both Parties.
Likewise, the Parties, by mutual agreement and respecting the genetic and cultural patrimony of the other, will promote policies, strategies and actions that allow both countries to carry out an exchange of information that includes inventories of genetic resources and registers of traditional knowledge and cultural manifestations, in accordance with the norms of the Andean Community and the binding international regimes in which they participate.
Article 37. Control and Enforcement
The Parties commit themselves to develop coordinated actions in the fight against piracy and in this way contribute to the development of the economies of both countries, contemplating joint strategies to reinforce the customs controls of and towards the Parties.
Article 38. Cooperation In Matters of Intellectual Property
The Parties, through the National Institute for the Defense of Competition and the Protection of Intellectual Property - INDECOPI of Peru and the National Intellectual Property Service - SENAPI of Bolivia, will reinforce the ties of inter-institutional cooperation in matters of Intellectual Property, through a Cooperation Agreement that will include, among others, the exchange of information related to intellectual property issues under the rules of confidentiality and reservation established by their national legal systems, the exchange of information related to the modernization and automation of intellectual property systems, expert meetings and training.