European Commission Directorate-General for Trade

Andean countries

The EU, Colombia and Peru announced the conclusion of negotiations for a trade agreement on may 2010 during the EU-LAC summit. In April 2011, EU Trade Commissioner Karel De Gucht, the Minister of Trade, Industry and Tourism of Colombia and the Deputy Minister for Foreign Trade of Peru welcomed the initialling of the Trade Agreement after the conclusion of legal review. This Agreement is estimated to be worth half a billion Euros in duties saved alone and is expected to boost Colombia and Peru's economies by close to 1% of GDP. Above all, it recognises that the partnership between the EU, Colombia and Peru is based on the respect of democratic principles, fundamental human rights and the respect for the principle of the rule of law.

The text of the Trade Agreement will now follow the process of translation, signature and adoption according to each Party's domestic procedures.

For more information: Peru and Colombia Trade Agreement - full text - Highlights of the Trade Agreement

The EU is the second largest trading partner of the Andean region after the US.  In 2010, the Andean Community of Nations represented 0.7% of the EU's world trade whereas the EU totaled 14% of CAN's trade (2009). In 2010,EU imports from Andean countries are predominantly primary products: agricultural products (41.1%); fuels and mining products (44.7%). EU exports consist mostly of manufactured goods (81.5%), notably machinery and transport equipment (46.5%) and chemical products (13.8%). The EU grants the Andean countries preferential access to its market under the EU's General System of Preferences (special incentive arrangement for sustainable development and good governance, known as GSP+).

Trade-related technical assistance

The EU is committed to supporting regional integration in the Andean Community and has fostered this process through its trade-related technical assistance in the region. A number of EU programs currently focus on institutional support to the Secretariat of the Community of Andean Nations (CAN) private sector support projects, and capacity building for the development of trade policies.

The trade negotiations

Negotiations between the EU and the Andean Community for a region-to-region Association Agreement, including political dialogue, cooperation and trade, were launched in June 2007. Building on the same principles and objectives as the Political Dialogue and Cooperation Agreement signed between the two regions in 2003, the aim was to consolidate and develop the political and economic relations between the two regions. However, this region to region negotiation had to be suspended in June 2008 because of the lack of agreement between Andean countries on the objectives and scope of the trade part.

Trade negotiations between the EU and three Andean countries – Colombia, Perú and Ecuador – restarted in January 2009, aiming at a Multiparty Trade Agreement to provide for progressive and reciprocal liberalisation by means of an ambitious, comprehensive and balanced free trade area fully compliant with the rules and obligations of the World Trade Organisation. This is important for enhancing trade between the two regions, attracting investment to the Andean countries and helping local businesses develop the strength in their regional market to compete internationally. Nine rounds of trade negotiations took place between January 2009 and March 2010, with a successful conclusion reached with Colombia and Peru (in July, Ecuador had suspended its participation).

During the negotiation process, a sustainability impact assessment was carried out by the EU.

The 2010 Madrid Summit

The EU-LAC Summit took place on 18 May 2010 in Madrid, preceded by a Meeting of Ministers of Foreign Affairs on 17 May. The theme of the Summit was: 'Towards a new stage in the bi-regional partnership: Innovation and Technology for sustainable development and social inclusion'.

The Madrid Summit, which brought together Heads of State and Governments from Latin America, the Caribbean and Europe, as well as important non-state actors, resulted in a decision to re-launch negotiations for an EU-Mercosur Free Trade Agreement, a process which is now under way.The Summit also resulted in the political approval of the conclusion of a comprehensive trade agreement between the EU and the Andean Countries (Peru and Colombia) as well as the endorsement of the conclusion of the negotiations between the EU and Central America.

More on the 2010 Madrid Summit