• Country/entity

  Ecuador
  Peru
  

• Region

  Americas
  Americas
  

• Agreement name

  Convenio de Aceleración y Profundización del Libre Comercio entre el Perú y el Ecuador

• Date

  26 Oct 1998

• Agreement status

  Multiparty signed/agreed

• Interim arrangement

  Yes

• Agreement/conflict level

  Interstate/interstate conflict ( Cenepa War (1995) )

• Stage

  Framework/substantive - partial

• Conflict nature

  Territory

• Peace process

  Ecuador-Peru border dispute peace process

• Parties

  Ecuador, Peru:
  Fernando de Trazegnies Granda
  Minister of Foreign Affairs of the Republic of Peru
  Jose Ayala Lasso
  Minister of Foreign Affairs of the Republic of Ecuador

• Third parties

  -

• Description

  This agreement outlines the details of the free trade arrangement between Ecuador and Peru. It deals with the process of reducing tariffs on trade in goods between the two countries, setting up the timeline and the pace for the tariff reduction until they are fully removed. The agreement also provides guidelines on mutual recognition and standards for health, safety, etc.

• Agreement document

  EC_PE_981026_Agreement_on_Accelerating_and_Strengthening_Free_Trade_tr.pdf | Download PDF

Groups

Gender

State definition

Governance

Power sharing

Human rights and equality

Rights related issues

Rights institutions

Justice sector reform

Socio-economic reconstruction

Land, property and environment

Security sector

Transitional justice

Implementation

Agreement on Accelerating and Strengthening

The Free Trade Agreement between Peru and Ecuador

The Government of the Republic of Peru and the Government of the Republic of Ecuador:

Aware that the liberalization of bilateral trade will strengthen relations between Peru and Ecuador, in this new stage of uniting the two countries;

Convinced that free trade will mean the opening of new opportunities for economic agents, which will boost economic growth in both countries;

Certain that linking trade and investment entrepreneurs will increase the degree of reciprocal trust and cooperation between the two countries;

Considering that in Decision 414 of the Andean Community, the Liberation of Peru and the Member Countries Program was agreed, to establish a Free Trade Zone by the year 2005;

Taking into account what is established in article 121 of the Cartagena Agreement.

Agree to accelerate and strengthen the tariff reduction process, as set forth in the present Agreement;

First

The acceleration and strengthening of the tariff reduction process, aimed at increasing the trade flow between the Parties will be conducted in the following manner:

1. The products contained in Annex II of Decision 414 of the Andean Community, will be exempt from charges from the day after this Agreement comes into force.

2. The products contained in Annex III of Decision 414 of the Andean Community will be exempt from charges starting from December 31st, 1999, according to the following schedule:

From the day after this Agreement comes into force:

30%

From 31/12/1998:

50%

From 31/12/1999:

100%

3. The products listed in Annex VIII of Decision 414 of the Andean Community will be exempt from charges starting from December 31st, 2000, according to the following schedule:

From the day after this Agreement comes into force:

30%

From 31/12/1998:

50%

From 31/12/1999:

75%

From 31/12/2000:

100%

4. The products listed in Annexes IV to VII of Decision 414 of the Andean Community, will be exempt from import charges starting from December 31st, 2001.

Until this date, the margins established in Decision 414 of the Andean Community will be applied.

5. Through the immediate exemption from charges of certain products agreed upon by both Parties, within 90 days of this Agreement coming into force.

Additionally, they will maintain full exemption from charges of products that are established in the following :

1. Bilateral Trade Agreement between Ecuador and Peru signed on November 14th, 1992, and the extension to the Bilateral Agreement signed on December 13th, 1995.

2. The contents of Annex I of Decision 414 of the Andean Community.

3. The products included in Decision 356 of the Cartagena Agreement Commission.

Second

Exceptions to points 2, 3 and 4 of the first clause can be made, up to a maximum of one hundred and fifty NANDINA (Common Description and Coding Nomenclature for the Goods of the Andean Community Member Countries) sub-items that are considered sensitive to each country and are contained in Annexes III to VIII of Decision 414 of the Andean Community Commission.

This compromise will not imply a step backwards in relation to the exemption timetables established in the aforementioned Decision.

Third

Of the list of sensitive products referred to in the second clause, no more than a hundred NANDINA sub-items whose exemption timetable, provided for in Decision 414, is scheduled after the 31st of December, 2001, will become exempt according to the timetables provided for in Decision 414 of the Andean Community Commission.

The rest will become exempt at the latest on the 31st of December, 2001.

Fourth

Rules relating to the origin of goods, commercial competition, safeguards and other, will be those established in the Cartagena Agreement’s legal regime.

Fifth

When, because of the existence of different levels of charges applied by any of the two countries on the import of raw materials, supplies or intermediate goods used in trade products, distortions that affect trade arise, the affected country will inform the Ministry responsible for the other country’s trade negotiations of its intention to implement a correction to the law, and send the information required by Decision 415 of the Andean Community Commission.

The consulted entity will make a ruling within a maximum of 15 calendar days.

If they do not agree through this method, the affected country may refer the case to the Administrative Commission of the Agreement, which will decide within a maximum period of 8 calendar days;

if there is no decision, the affected country can impose the corresponding corrective right.

Sixth

The two countries agree that the standardisation bodies will adopt within a period of 90 days a regulation for the mutual recognition of conformity certificates within the mandatory official technical standards.

Seventh

The two countries are committed to streamlining the procedures established in Decision 418 of the Andean Community, for the issuing and registration of health records.

Eighth

The two countries undertake to eliminate sanitary and phytosanitary restrictions that constitute unnecessary barriers to reciprocal trade.

Ninth

Both countries undertake to negotiate an industrial complementarity agreement in the automobile sector.

To do so they will constitute a working group composed of government and private representatives of both countries.

This working group will be chaired by the Andean Liaison Bodies of each country and will hold its first meeting this year.

Tenth

With the aim of achieving the best execution of this Agreement, identifying specific problems in reciprocal trade, and taking measures to eliminate these, an administrative commission composed of representatives of the Ministry of Industry, Tourism, Integration and

International Trade Negotiations of Peru and the Ministry of Foreign Trade, Industrialization and Fisheries of Ecuador will be established.

The present Agreement will come into force simultaneously with the others signed on this same date, that are part of the global and definitive solution referred to in the Implementation of the Brasilia Declaration Timetable, passed by the parties on January 19th, 1998, and under the conditions set out in it.

Signed in the city of Brasilia, the 26th day of the month of October, 1998, in two copies in Spanish, both texts being equally valid.

Fernando de Trazegnies Granda

Minister of Foreign Affairs of the Republic of Peru

Jose Ayala Lasso

Minister of Foreign Affairs of the Republic of Ecuador