Key Benefits:
LAW 661 OF 2001
(July 30)
Official Journal No. 44.503 of 30 July 2001
by means of which the Agreement on the Partial Scope of Economic Complementation is approved between the Governments of the Republics of Colombia, Ecuador, Peru and Venezuela, members of the Andean Community, and the Government of the Federal Republic of Brazil, signed in Montevideo on 12 August 1999.
COLOMBIA CONGRESS
Having regard to the text of the "Partial Scope Agreement for Economic Complementation between the Governments of the Republics of Colombia, Ecuador, Peru and Venezuela, Member Countries of the Andean Community, and the Government of the Federative Republic of Brazil," signed in Montevideo on 12 August 1999.
(To be transcribed: photocopy of the full text of the International Instrument mentioned).
" AGREEMENT OF PARTIAL SCOPE OF ECONOMIC COMPLEMENTARITY BETWEEN THE GOVERNMENTS OF THE REPUBLICS OF COLOMBIA, THE ECU, PERU AND VENEZUELA, MEMBER COUNTRIES OF THE ANDEAN COMMUNITY, AND THE GOVERNMENT OF THE FEDERAL REPUBLIC OF BRAZIL
The Governments of the Republics of Colombia, Ecuador, Peru and Venezuela, Member Countries of the Andean Community and the Government of the Federative Republic of Brazil, hereinafter referred to as "Signatory Parties".
CONSIDERING:
That it is necessary to strengthen and deepen the process of integration of Latin America, in order to achieve the objectives provided for in the Treaty of Montevideo, 1980, through the negotiation of economic-trade agreements as broad as possible;
The desirability of providing economic operators with clear and predictable rules for the development of trade and investment, thereby enabling them to participate more actively in economic and trade relations between the Andean Community and Brazil;
That the formation of free trade areas in Latin America, on the basis of existing sub-regional and bilateral agreements, is one of the instruments for countries to advance in their economic and social development;
That on December 17, 1996 Bolivia, a member of the Andean Community, signed the Economic Complementation Agreement number 36, establishing a Free Trade Zone between the Republic of Bolivia and Mercosur;
That a Framework Agreement for the creation of a Free Trade Zone between the Andean Community and Mercosur was signed on 16 April 1998;
Reaffirming the will to continue negotiations for an Economic Complementation Agreement between the Member Countries of the Andean Community and those of Mercosur, to form a Free Trade Zone between the two blocs,
AGREE:
To conclude an Agreement on the Partial Scope of Economic Complementation under the provisions of the Treaty of Montevideo 1980 and Resolution 2 of the Council of Ministers of the Latin American Integration Association (ALADI).
OBJECT OF THE AGREEMENT.
ARTICLE 1o. With the subscription of this agreement, the Signatory Parties agree to establish fixed preference margins, as a first step towards the creation of a Free Trade Area between the Andean Community and Mercosur.
TRADE RELEASE.
ARTICLE 2o. In Annexes I (Preferences granted by the Signatory Parties Members of the Andean Community), II (Preferences granted by Brazil) and Annex III (Preferences that Ecuador receives from and grants to Brazil, in the products of its Special List), the tariff preferences and other agreed conditions for the importation of negotiated products originating in the respective territories of the Signatory Parties, classified as conformity with the Tariff Nomenclature of the Latin American Association of Integration of 1993.
This agreement does not apply to the goods used and the reconstructed goods classified under the subheadings listed in Annexes I, II and III.
ARTICLE 3o. The tariff preferences shall apply, where appropriate, on the customs duty or the fixed tariff in force for the importation of third countries into each Signatory Party at the time of the application of the preference, in accordance with the provisions of its legislation.
ARTICLE 4. The Signatory Parties may not maintain or establish other charges and charges of equivalent effect, other than customs duties, which have an effect on imports of the products covered by Annexes I, II and III.
"encumbrances" shall mean customs duties and any other surcharges of equivalent effects which have an effect on imports originating in the Signatory Parties.
Similar charges or surcharges are not included in the concept of taxation when they are equivalent to the cost of the services provided, the anti-dumping or countervailing duties, and the safeguard measures.
ARTICLE 5o. The Signatory Parties undertake to maintain the agreed percentage preferences for the importation of the products listed in Annexes I, II and III to any level of the non-preferential customs duties which apply to the importation of such products from third countries other than the Signatory Parties.
ARTICLE 6o. The Signatory Parties shall not maintain or introduce new non-tariff restrictions on their reciprocal trade in the products covered by this Agreement.
"Restrictions" shall mean any measure that prevents or hinders imports or exports of a Signatory Party, whether by quotas, licenses or other mechanisms, except as permitted by the WTO.
ARTICLE 7o. No provision of this Agreement shall be construed as preventing a Signatory Party from adopting or implementing measures in accordance with Article 50 of the Treaty of Montevideo 1980 or with Articles XX and XXI of the General Agreement on Tariffs and Trade 1994.
SOURCE REGIME.
ARTICLE 8. For the classification of the origin of the goods that benefit from this Agreement, the Signatory Parties shall apply the General Regime of Origin provided for in Resolution 78 and in the additional and amending provisions of the ALADI Committee of Representatives, unless the Signatory Parties agree otherwise.
Annex IV lays down the specific requirements of origin applicable to the products falling within Annexes I and II.
Competition in matters of rules of origin shall be exercised by the Administrative Commission of this Agreement.
NATIONAL TREATMENT.
ARTICLE 9o. In the matter of National Treatment, the Signatory Parties shall be governed by the provisions of Article 46 of the Treaty of Montevideo 1980 and Article III of the GATT 1994, as well as by the Supplementary Notes to that article.
However, the Signatory Parties may act in accordance with the commitments made by them in the Agreement on Trade-Related Investment Measures of the WTO.
CUSTOMS VALUATION.
ARTICLE 10. On customs valuation, the Signatory Parties shall be governed by the commitments they have undertaken under the Agreement on the implementation of Article VII of the General Agreement on Customs and Trade Tariffs of 1994, and Resolution 226 of the Committee of Representatives of the ALADI.
ANTIDUMPING AND COUNTERVAILING MEASURES.
ARTICLE 11. In the application of anti-dumping or countervailing measures, the Signatory Parties shall be governed by their respective legislations, which shall be consistent with the agreement on the implementation of Article VI of the General Agreement on Tariffs and Trade 1994, and the Agreement on Subsidies and Countervailing Measures of the World Trade Organization.
The Signatory Parties shall comply with the commitments made in respect of grants in the field of the World Trade Organization.
ARTICLE 12. The Signatory Parties undertake to notify, as soon as possible, through the competent bodies, the opening of investigations and the preliminary and definitive conclusions by (a) dumping or subsidy practices affecting reciprocal trade, and where appropriate, the application of corrective measures and amendments to their respective legislation.
SAFEGUARD CLAUSES.
ARTICLE 13. The Signatory Parties shall be governed by the provisions of Resolution 70 of the Committee of Representatives of the ALADI, in the application of safeguard measures to the import of the products for which the tariff preferences provided for in Annexes I, II and III are granted.
The application of safeguards by the Signatory Parties shall be examined and monitored by the Administrative Commission of the Agreement.
ARTICLE 14. The provisions of this Chapter shall not prevent the Signatory Parties from applying, where appropriate, the measures provided for in the WTO Safeguards Agreement and the measures envisaged. on the matter in the other WTO agreements.
TECHNICAL BARRIERS TO TRADE AND SANITARY AND PHYTOSANITARY MEASURES "TECHNICAL BARRIERS TO TRADE AND SANITARY AND PHYTOSANITARY MEASURES".
ARTICLE 15. The Signatory Parties shall not adopt, maintain or apply technical regulations, conformity assessment procedures, metrological provisions, sanitary and phytosanitary measures, which create unnecessary barriers to trade.
ARTICLE 16. The Signatory Parties shall be governed by the Agreements on Technical Barriers to Trade and on Sanitary and Phytosanitary Measures of the WTO, as well as by the Framework Agreement for the Promotion of Trade through the Superation of Technical Barriers to Trade, signed in the framework of the ALADI.
DISPUTE RESOLUTION.
ARTICLE 17. The disputes arising in connection with this Agreement shall be the subject of the procedure provided for in Annex V.
ADMINISTRATION OF THE AGREEMENT.
ARTICLE 18. The administration of this Agreement shall be the responsibility of a Administrative Commission composed of the following representatives of each of the Signatory Parties, who shall preside over the respective representations:
-For Colombia: the Director of Trade Negotiations at the Ministry of Foreign Trade.
-By Ecuador: the Director of International Negotiations at the Ministry of Foreign Trade, Industrialization and Fisheries.
-For Peru: the National Director of International Trade Integration and Negotiations of the Ministry of Industry, Tourism, Integration and International Trade Negotiations.
-For Venezuela: the Director General of Foreign Trade of the Ministry of Industry and Commerce.
-For Brazil: the Director General of the Latin American Integration Department of the Ministry of Foreign Affairs.
ARTICLE 19. The Administrative Commission shall be constituted within thirty (30) calendar days following the entry into force of this Agreement, and shall have, inter alia, the following functions:
1. Approve your own Rules of Procedure.
2. Ensure compliance with the provisions of this Agreement.
3. Interpret the rules of this Agreement.
4. Recommend the necessary modifications to this agreement.
5. Exercise the privileges conferred upon you by this Agreement on Origin, Safeguards and Dispute Settlement, and
6. Execute the actions to be agreed by the Signatory Parties.
ADHESION.
