EU announces trade agreement with Colombia and Peru

[News_Editor]

EU announces trade agreement with Colombia and Peru

2011-04-13 21:21:07 GMT+7 (ICT)

BRUSSELS (BNO NEWS) -- The European Union on Wednesday finalized a trade agreement with Colombia and Peru that will open up markets and will include a series of far-reaching measures.

The trade relationship with the two South American countries was worth $23.16 billion (€16 billion) in bilateral trade in goods in 2010. The document will include protection of human rights and the rule of law, international conventions on labor rights and environmental protection measures.

Under the new agreement, EU exporters will be fully relieved from paying customs duties of industrial and fisheries products. This is expected to save at least $361.72 million (€250 million) annually in tariffs for the fist decade.

The three sides will also cooperate on market surveillance and will enhance communication and cooperation in technical regulations, standards and conformity assessment in order to improve transparency.

The Trade Agreement will also address specific concerns related to a number of EU key export industries such as manufacturing industries, energy production, mining and extraction, financial services, professional services, maritime transport and telecommunication services.

Colombia and Peru also agreed to ensure an effective level of protection of intellectual, industrial and commercial property rights of many small and medium-sized EU producers with the successful protection of more than 200 geographical indications in both countries.

Under the new agreement, Colombia's GDP could increase by 1.3 percent and Peruvian GDP by 0.7 percent on the long term. Both imports and exports of the two countries are expected to increase by 6 percent in the medium term and by 8 percent over the long run.

The proposed Agreement includes guarantees to ensure that the new framework of trade and investment relations between the EU, Colombia and Peru will benefit sustainable development by promoting and preserving a high level of labor and environmental protection standards on all sides.

In order to ensure the effective implementation of these provisions, the Agreement included two mechanisms consisting in an arbitration system and an engagement process with civil society.

Finally, the trade deal also provided for technical assistance and capacity building initiatives aimed at promoting the competitiveness and innovation potential of Peru and Colombia.

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