Countries and regions
In June 2012 the EU signed an ambitious and comprehensive Trade Agreement with Colombia and Peru. The agreement is provisionally applied with Peru since 1 March 2013 and with Colombia since 1 August 2013.
Once fully implemented, it will open up markets on both sides as well as increase the stability and predictability of the trading environment. To promote its effective implementation, two seminars were organised in Lima and in Bogota. The first Annual Report on the Implementation of the Trade Agreement was published on 4 December 2014.
In July 2014 negotiations were concluded for the accession of Ecuador to the Trade Agreement with Colombia and Peru (read the negotiated texts). In order to apply the Agreement with Ecuador the Parties will now engage in the relevant internal procedures for its approval.
Contacts are maintained to explore the possibility to integrate Bolivia, who is also members of the Andean Community, into the trade deal with the EU.
Council Decision on conclusion and signature of the protocol allowing Ecuador to join the EU-Colombia/Peru Free Trade Agreement
The EU is the second or the third largest bilateral trading partner and one of the principal investors for the Andean countries. In 2014 total trade of the E with the Andean countries was worth some 28.8 billion Euros.
- The Andean countries export predominantly primary products (agricultural products (40.5%), fuels and mining products (52.3%) to the EU.
- EU exports consist mostly of manufactured goods, notably machinery and transport equipment (48%), and chemical products (19.1%).
EU-Andean community "trade in goods" statistics
|Year||EU imports||EU exports||Balance|
EU and the Andean Community
Benefits of the Agreement:
- opening markets for goods, services, government procurement and investment
- savings on import duties alone worth some half a billion Euros at the end of transition periods
- better conditions for trade through new disciplines on non-tariff barriers, competition, transparency and intellectual property rights
- a more stable and predictable environment for economic operators with a mediation mechanism for non-tariff barriers and a bilateral dispute settlement mechanism
- provisions for cooperation on competitiveness, innovation, production modernisation, trade facilitation and technology transfer
- a comprehensive Trade and Sustainable Development title to promote and preserve a high level of labour and environmental protection, including a transparent arbitration system and an engagement of the civil society
The negotiated texts will now follow the process of translation, signature and adoption according to each Party's domestic procedures
Trade negotiations between the EU and with Colombia and Peru were successfully concluded in 2011. The text of the Trade Agreement (Peru and Colombia Trade Agreement - full text)- was signed on June 2012 and started its application with Peru on 1 March 2013 and with Colombia on 1 August 2013. First meetings of all of the established subcommittees took place between February and April 2014 with the Trade Committee taking place in May 2014
The Agreement provides for progressive and reciprocal liberalisation by means of an ambitious, comprehensive and balanced free trade area. 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.
The negotiations with Ecuador for its accession to the Agreement between the EU and Colombia/Peru were concluded in July 2014. The negotiated texts will now follow the process of translation, signature and adoption according to each Party's domestic procedures.
Presently Bolivia benefits from the preferential access that the EU grants under the EU's Generalised Scheme of Preferences, including through the special incentive arrangement for sustainable development and good governance, known as the Generalised Scheme of Preferences Plus(GSP+).
Trading with Andean countries
- The EU is present on the ground in the Andean Community (Delegations in Bolivia, Colombia, Ecuador and Perú )
- Trade relations are part of the EU's overall external political and economic relations with the Andean countries
- Andean Community
- Sustainable impact assessment of the EU-Andean Community Association Agreement