EU-Andean Countries: Council greenlights the conclusion of the trade agreement with Colombia, Peru and Ecuador
The Council has today adopted a decision to conclude the trade agreement between the European Union and its member states, on one hand, and Colombia and Peru, on the other, as well as a decision to conclude the protocol concerning Ecuador’s accession to this agreement.
This is the final step of the ratification process of the agreement, through which the EU and these Andean countries commit to a close, long-term trade relationship, also covering services, intellectual property, public procurement, and human rights. The agreement allows the gradual opening of markets, which will increase trade and investment between the parties.
Although most of the agreement has been provisionally applied since 2013, the conclusion will allow the full implementation of the agreement from 1 November 2024, thus giving an increased degree of legal certainty to this trading relationship.
“The goal of the Hungarian Presidency is to foster closer cooperation between European and South American countries. This effort aims to prevent the world from becoming fragmented again and to safeguard our fundamental interest in maintaining free world trade and a strong global economy. The entry into force of this agreement will strengthen trade and investment relations with Colombia, Peru, and Ecuador. It will further stimulate growth and job creation, while improving conditions for businesses on both sides.”
Minister of Foreign Affairs and Trade, Péter Szijjártó
The EU is the third-largest trading partner and a major investor in the Andean countries. In 2023, total trade of the EU with the Andean countries was worth around €33 billion.
Benefits of the trade agreement include:
- opening markets for goods, services, government procurement and investment
- better conditions for trade through new rules on non-tariff barriers, competition, transparency and intellectual property rights
- a more stable and predictable environment for businesses with a bilateral dispute settlement mechanism and a mediation system for non-tariff barriers
- arrangements for cooperation on competitiveness, innovation, production modernisation, trade facilitation and technology transfer
- a comprehensive Trade and Sustainable Development chapter with commitments aimed to ensure high levels of labour and environmental protection, which includes a transparent arbitration system and procedures to engage with civil society
Accession of Ecuador
The Trade Agreement with Colombia and Peru anticipated the possibility that other Andean countries could join.
Ecuador decided to join the trade agreement, and the protocol of accession for Ecuador was signed in November 2016 and has been provisionally applied since 1 January 2017.
Today, the Council has also adopted a decision on the conclusion of the protocol of accession of Ecuador to the trade agreement between the EU and Colombia and Peru, which is as well the final step of this ratification procedure.
Next steps
The Trade Agreement with Colombia and Peru, and the referred Protocol to take into account the accession of Ecuador, are set to enter into force on 1 November 2024.
Background
The trade agreement with Colombia and Peru was signed on 26 June 2012 in Brussels.
The European Parliament gave its consent to the conclusion of the trade agreement on 11 December 2012.
The agreement has been provisionally applied with Peru and Colombia since 1 March and 1 August 2013, respectively, with the exception of Articles 2, 202(1), 291 and 292, related to the parts of the agreement referred to disarmament and non-proliferation of weapons of mass destruction, the rights and obligations existing under the Paris Convention and the TRIPS Agreement, administrative proceedings and review and appeal.
On 6 May 2024, the ratification procedures of the trade agreement by member states were finalised.
The protocol of accession to the trade agreement with Colombia and Peru to take account of the accession of Ecuador was signed on 11 November 2016 in Brussels.
The European Parliament gave its consent on the conclusion of the protocol on 14 December 2016.
The protocol has been provisionally applied between the EU and Ecuador since 1 January 2017 and with Colombia and Peru since 1 December 2017 and 1 November 2017 respectively, with the exception of Article 2, Article 202(1) and Articles 291 and 292 of the Agreement.
On 15 July 2024, the ratification procedures of the protocol by member states were finalised.
