EU-Colombia/Peru trade agreement: continuing a succesful implementation
The European Commission presented the Third Annual Report on the Implementation of the EU-Colombia/Peru Trade Agreement to the European Parliament and the Council.
The Agreement entered into force on 2013 with Peru and Colombia and in 2017 with Ecuador, focuses on the progressive and reciprocal liberalization of custom tariffs, services, investment and includes other issues such as public procurement and the protection of intellectual property rights, among others.
The Trade Agreement establishes a legal framework and an institutional dialogue which increase the stability in trade relationship and promote long term businesses. In this context, the report emphasizes the following results, among others:
- The EU in Colombia is the second trading partner after the US and the third commercial partner of Peru, after China and the United States.
- During 2016, bilateral trade declined slightly, mainly due to the reduction of external demand and the global fall of commodity prices. Nevertheless, and in terms of EU exports, some categories increased significantly between 2012 and 2016, in particular agricultural products (+82% for exports to Colombia and +76% to Peru). Such result is attributed among others to progress in the implementation of the Sanitary and Phytosanitary Chapter.
- The EU companies improved the use of the Tariff Rate Quotas (TRQ’s) in particular for some of the most sensitive products (100% for products, such as mushrooms, yogurts and milk in powder, whey and preparations for infant use in Colombia and for butter and milk powder in Peru). As a consequence, EU exports increased significantly for these products and new opportunities are offered for EU producers both, in Colombia and Peru. This is in line with the trend recorded by Colombian and Peruvian exporters, concretely, for cane sugar.
- The Trade Agreement has positive effects on trade in services. As far as Perú is concerned, in 2015, bilateral trade in services increased by 5% compared to 2012. EU exports increased by 11% and the EU's participation in Peru's total trade in services represented almost 30% in 2015. EU services exports to Colombia remained stable since the entry into force of the Trade Agreement.
- EU Investment increased as a consequence of the Trade Agreement. The EU is the first foreign investor in both countries and the EU investments increased since the implementation of the Trade Agreement: +15% in Perú and +4% in Colombia, between 2012 y 2015.
The report also highlights the progress in other chapters, such as sanitary and phytosanitary measures, in particular, the establishment of harmonized import conditions for dairy and meat products. As regards the sustainable development issues, the EU reported the ratification of ILO Conventions by its Member States, standout progress in the framework of multilateral environmental agreements, as well as measures to implement the commitments of the Paris Agreement.
The EU Commission supports actively the implementation of the Trade Agreement so that economic agents from both parties fully benefits from its opportunities.
Through the ELANBiz project, the EU SME’S can obtain tailored information about the opportunities provided by the Trade Agreement for their sector.
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