The Trade Agreement with Peru and Colombia approved by the EU
On 14 October, the Twenty-Seven finally approved the free trade agreement with Peru and Colombia after more than ten years of provisional application.
Since 2013, the Trade Agreement negotiated between the European Union and Peru and Colombia has been in force. However, the latter had still not been approved by Brussels. This is now being done, following the green light given by the EU Council on 14 October.
The aim of the agreement was to open up new trade opportunities for the EU's major exporting industries, which now benefit from theabolition of customs duties.
In addition, through this agreement, the EU was also committed to opening up its market to Peruvian and Colombian exporters through the immediate liberalisation of industrial and fisheries products and the substantial tariff concessions it undertook to grant in the agricultural sector, notably for bananas, sugar or rum. However, some products such as rice, maize, pork and poultry had been excluded from the negotiations.
Brussels is the third largest trading partner and remains a major investor in the Andes Cordillera countries. The total volume of trade between the EU and the Andean countries was EUR 33 billion in 2023.
As a reminder, if a European company exports its products to Peru or Colombia and the latter comply with the rules of origin laid down in the EU-Andean Trade Agreement, it will have to produce one of the following two proofs of origin for the consignee of the goods to benefit from reduced or zero customs duties:
- Declaration of origin on invoice(DOF), without special status, for an amount invoiced less than 6000 € or without value limitation for those with approved exporting status (EA),
- Certificates EUR 1.
The conclusion, now formal, of this agreement allows for itsfull implementation since 1 November 2024, thus providing a higher degree of legal certainty to this commercial relationship. Some certainly hope that the CETA will also succeed in taking this step.