Directorate-General for Trade

Andean countries

For the Andean region, the EU is the second largest trading partner after the US.  For the EU, the Andean Group is totalling 0.6% of share of EU world trade in 2008. EU imports from Andean countries are primary products: agricultural products (47.5%); fuels and mining products (41.1%). EU exports are focused on manufactured goods (89.6%), notably machinery and transport equipment (47.4%) and chemical products (18.4%). 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+).

The EU is the leading investor in the Andean Region and accounts for a significant share of total foreign direct investment in the region. EU FDI is found in the financial services, mining, oil extraction and manufacturing sectors.

The new 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 is 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 – have restarted in January 2009, aiming at a multiparty Trade Agreement which will 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. Five rounds of trade negotiations have taken place from January to July 2009, and it is expected to conclude rapidly at least with Colombia and Peru (in July, Ecuador has provisionally suspended its participation).

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 programmes currently focus on institutional support to the Secretariat of the Community of Andean Nations (CAN) and capacity building for the development of trade policies.