EU-Colombia-Peru-Ecuador Trade Agreement

The EU-Colombia-Ecuador-Peru Trade Agreement includes full or partial tariff liberalisations, substantive duty free quotas, the removal of regulatory or technical non-tariff barriers and the introduction of trade facilitating-measures, such as customs procedures. The Trade Agreement also liberalises capital movements, investments and public procurement markets. Not the least, the Agreement commits the parties to respecting human rights, guaranteeing employment rights and ensuring an adequate level of environmental protection.

The agreement at a glance

The EU’s comprehensive trade agreement with Colombia and Peru has been provisionally applied with Peru since 1 March 2013 and with Colombia since 1 August 2013.

On 1 January 2017, Ecuador also joined the agreement.

A list of the all the amendments and annexes of the agreement are available on the DG TRADE website.

As a result, the EU now has a preferential trade agreement with three countries of the Andean community (Bolivia being the exception). At present, Bolivia benefits from the EU’s generalised scheme of preferences (GSP) including through the special incentive arrangement for sustainable development and governance known as GSP+. Bolivia could also ask to negotiate to join the trade agreement should it so wish.

What are the benefits for your business?

The trade agreement between the EU of the one part, and Colombia, Peru and Ecuador, of the other part, opened up markets on both sides and provides

Current payments and capital movements are also liberalised. This facilitates the free movement of services, investments and establishments.

Trade relations between the EU and Colombia, Ecuador, and Peru

The highest EU exports to the three Andean countries are manufactured goods, especially machinery and transport equipment, as well as chemical products.

In turn, the highest imports from Colombia, Peru and Ecuador into the EU consist of agricultural products, fuels and mining products.

Tariffs

The EU-Colombia-Peru-Ecuador Trade Agreement provides improved market access by reducing or eliminating tariffs on important goods for bilateral trade.

EU

Over a transitional period, the EU eliminates tariffs on almost all exports coming from Colombia, Peru and Ecuador, except for certain vegetables and fruits.

For specific sensitive products, tariff rate quotas are in place. This means that each year only a limited amount of sensitive products can be traded free of duties. The products subject to tariff rate quotas (TRQs) are

These quotas are managed on the basis of a first-come-first-served principle. The application period is from 1 January to 31 December. If any imports that arrive in the EU exceed these TRQs, an MFN customs duty will apply.

Find the specific provisions related to tariffs per category of products and applicable rate quotas in the

Colombia, Ecuador, Peru

Colombia, Peru and Ecuador also grant the European Union tariff benefits. Recognizing the asymmetry in the parties´ development levels, the liberalization is gradual, spreading over a period of up to 17 years. Once all the tariff reductions will be implemented

Find the specific provisions related to tariffs elimination and applicable quotas in the

Before you export

Rules of origin

In order to qualify for preferential treatment, your product will need to satisfy the rules of origin under the agreement. Please check the interactive “Rules of Origin Self Assessment tool (ROSA)” in My Trade Assistant to assess whether your product fulfils the rules of origin and find out how to prepare the correct documents.

General information about the rules of origin and the origin procedures can be found in this section.

Origin is the 'economic nationality' of traded goods. If you are new to the topic, find an introduction to the main concepts in the goods section.

Rules of origin

Where can I find the rules of origin?

The rules of origin are set out in Annex II concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation. The link refers to a consolidated version taking into account the accession of Ecuador in 2016 (OJ L 356, 24.12.2016, p.1093).

Is my product 'originating' according to the trade agreement?

For your product to qualify for the lower or zero preferential tariff under the EU-Colombia, Ecuador, Peru Trade Agreement it must originate in the EU or a signatory Andean country. A product is considered to be originating if it is

Examples of the main types of product-specific rules in EU trade agreements

Tips and tricks to help comply with the product-specific rules

Additional flexibility is foreseen to help you comply with product-specific rules, such as tolerances or cumulation.

Tolerance

Cumulation

The EU-Colombia, Ecuador, Peru Trade Agreement provides for several ways of cumulating origin

How does diagonal cumulation work?

Diagonal cumulation occurs among several different countries that share the same rules of origin and have trade agreements with each other. This is when a producer of goods in either country can import materials and use them as though they originated in their own country. For example, under the PEM Convention, a Moldovan trader who is making up clothes for export to the EU can use fabrics originating in Moldova, Georgia and Ukraine (and/or any other party of the PEM Covention) to produce the clothes. The double transformation requirement (i.e. manufactured from yarn) has been fulfilled and are considered as originating from Moldova when exported to the EU and will therefore benefit from free access in the EU market.

Other requirements

The product also needs to fulfil all other applicable requirements specified in the Protocol, such as the direct transport rule.

Direct transport rule

Originating products must be transported from the EU to a signatory Andean country (and vice-versa) without being further processed in a third country.

Trans-shipment or temporary warehousing in a third country is allowed if the products remain under the surveillance of the customs authorities and do not undergo operations other than

Originating products may be transported by pipeline across a territory other than that of the EU or the signatory Andean countries.

Evidence that these conditions have been fulfilled shall be supplied to the customs authorities of the importing country.

Duty drawback

Refunding of duties previously paid on non-originating materials used to produce a product that is exported under a preferential tariff is allowed under the EU-Colombia, Ecuador, Peru Trade Agreement.

Origin procedures

Section 4 on Proof of origin and Section 5 on Arrangements for administrative cooperation set out the origin procedures related to claiming a preferential tariff and verification by customs authorities.

How to claim a preferential tariff

To benefit from a preferential tariff, importers must provide proof of origin which can be either

No proof of origin is required when the total value of the products does not exceed

Movement certificate EUR.1

Origin declaration

Exporters can self-declare that their product originates in the EU or, Colombia, Peru, Ecuador by providing an origin declaration. The origin declaration can be made out by

Approved exporters

Exporters under this agreement can seek authorisation from their customs authorities to make out origin declarations for products of any value.

Customs authorities may withdraw approved exporter status in the event of abuse.

How to make an origin declaration