EUROPA TLC Inglés.pdf

8/13/2019 EUROPA TLC Ingls.pdf

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TradeAgreem

COLOMBIA-EUROPEAN


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The Trade Agreement between the European Union on the one hand and Colombia apolitical dialogue and cooperation components not limited to trade, such as HumSustainable Development.

From the commercial point of view, the Agreement provides a stable legal framework fobetween the two parties, creates new job opportunities and a favourable framework for icomplying with environmental and human rights protection standards and agreementpreferential treatment for Colombian goods and services in one of the worlds most impmarkets with over 500 million consumers in 27 countries and, according to the World Trathe main importer and exporter of goods globally as well being number one in the worldand sale of services.

The Agreement continues the process of political dialogues that Colombia had been European Union and some of its Member States, in which human rights are an essentireflected in the Agreement.

Among the cooperation programmes included in the Agreement are human rightsustainable development and environmental protection, climate change, the developmmedium sized businesses, development of the dairy sector and support for the fishinothers.


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According to European

Commission projections,

Colombia will be the Party with

the greatest growth in

industrial production as aresult of the Trade Agreement,

particularly in vehicles and

associated transport

equipment (25.5%), chemical,

plastic and rubber products

(7.2%) and textiles (7.2%).

1European Commission estimates.

Benefits and impacts for Colombia

According to European Commission projections, Colombia will be th

greatest growth in industrial production as a result of the Trade Agreem

in vehicles and associated transport equipment (25.5%), chemical, plaproducts (7.2%) and textiles (7.2%).

Export sectors

It is estimated that, under the Trade Agreement, exports from Colombia

Union will increase by almost 10%. This means an additional growth o

1.3% in Colombias Gross Domestic Product, as well as a redu

unemployment and an increase in the wages of the Colombian populat

For Colombian exporters, the Trade Agreement means that they will h

access to a market of over 500 million people, as well as to thousan

seeking to trade with Latin American exporters. The Agreement

possibility of technical assistance and other capacity building init

promoting competitiveness and innovation. European Commission esm


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In the case of Colombian industrial goods, 99.9% of

exports, including fishing, have duty-free access to the

European Union

Some of the sectors benefitted include the following:

Agricultural and fishing products

Key Colombian agricultural products, such as sugar, tobacco,

flowers, palm oil, coffee, bananas, other fruits and beef, have

new preferential access to the European Union market.

Industrial and raw materials

The Agreement immediately eliminates tariffs in theEuropean Union on Colombian exports of industrial goods.

Moreover, it facilitates foreign direct investment in the

industrial and manufactured goods sectors of Colombia,

ensuring greater growth and job creation in these areas.


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Services

Restrictions on services have been

the Agreement, benefitting Colomb

on sectors such as engineering andothers. Local jobs will also be crea

service providers arrive to Colombia.

The Agreement provides improve

for Colombian services sec

consultancy, call centres, on-line

processing, IT, design and professio

Investment

The Agreement also promotes

encouraging sustainable deve

maintaining high labour and

protection standards.


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TEXTILES

2Generalised Systems of Preferences - GSP-PLUS. Unilateral

customs tariffs preferences in force up to 31 December 2013.

Textiles: Colombia succeeded inobtaining flexibilities for the importation

of nylon and polyester yarns andsilk-covered yarn or other material from

third party countries. Likewise, a rule to

permit the importation of fibres from third

party countries was also established under

the Agreement, providing the yarns are

produced in Party countries (Colombia,

Peru and the European Union).

Clothing: Colombia considerable flexibility

of garments. A rule

importation of yarns

countries was include

fabric is manufactured i

are Party to the Agreem

Petrochemicals and plastics: theAgreement provides much more

flexible measures than those under the

previous system of preferences2.

Specificproductbenefits

PETROCHEMICALS AND PLASTICS

CLOTHING


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BANANAS FLOWERSSUGAR

Bananas: customs tariffs for

Colombian bananas entering theEuropean Union used to be 176 per

tonne, now pay 148 under the

Agreement, which will be reduced to

75 in 2020. This is a great advantage

as other partners of the European

Union may only see these duties

reduced as far as 114 per ton.

Sugar: previously, there were fewpossibilities for this product to enterthe European Union market due to the

customs tariff conditions. However, the

Agreement established that 62,000

tonnes of Colombian sugar may enter

free duty-free, the amount of which will

increase by 3% annually.

Flowers: after the Ag

into force, Colombiapermanently enter the

market on a duty-free b

a regulation was estab

Colombia to import g

from third party

subsequently export th

Europe under preferen


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COFFEE FRUITS AND VEGETABLPALM OIL

Coffee: under the Agreement,Colombia gained duty-free access for

roasted coffee and coffee preparations.

Palm Oil: under the Agreement,Colombian crude and refined oil will

have duty-free access to the European

Union. In addition, customs preferences

were established for vegetable oils,

animal oils and refined mixtures based

on original untreated oils.

Fruits and vegetamajority of these produ

under the Agreement

cases they enjoy prefer

compared to the sam

other countries.


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TOBACCO MEATS

Benefits foconsumersimport secUnder the Agreem

companies and cons

benefit from the gradu

duties on the impo

materials, inputs, inte

and consumer goods.

Before the Agreemen

imports from the Euro

subject to high duti

from 5% to 94%. Undof the Agreement, pr

European Union such

products, pipes, liq

machinery and au

gradually become du

period of 6 to 11 yea

the product.

Tobacco:Colombian tobacco now hasduty-free access to the European

Union, while other competitor

countries are charged 56 per 100 kilos

exported.

Meats: under the Agreement, 5,600tonnes of premium cuts of Colombian

meats can enter the European Union

duty-free. The quantity will increase

annually by 10%, which means that, in

less than 5 years, it will be over 8,000

tonnes.


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Respect for human rights is an essential element of the Agreement. The parties musttherefore give their assurance that they will comply with the internationally recognised

democratic principles and protect human rights. Violations of the Agreements clause

referring to respecting human rights entitle the other Party to implement necessary in

accordance with international law.

Provisions

Human Rights

The Agreement requires compliance with environmental regulations, to a

environmental protection and trade and investment methods that prej

development in environmental and labour terms.

UN Secretary Ban Ki-mooof the Victims Act. Bog

Sustainable DevelopmentProvisions


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Germany

AGROINDUSTRYAGROINDUSTRY

MANUFACTURED GOODS

SERVICES AND ENTERTAINMENT

Austria

BelgiumMANUFACTURED GOODS

Clothing(especially leather footwearand mens and womensgarments)

Chemical industryproducts

DenmaAGROINDUSTRY

Fruit and edible agro indust(especially organic)

Slovak

EXPORT OPPORTUNITIES by Country

Information and CommunicationTechnologies (ICT)

Standard and bespoke software

Aquiculture and fishing

Exotic fruits

Fresh and tropical flowers

Hotel supplies

Natural cosmetics

Clothing(especially jeans

andladiesunderwear)

Fruit and edible agro industrial goods(especially organic)

Health care prosupplements

Cosmetics(especially anti

Medical equipmitems for the el

Hardware and hproducts

MANUFACTURED GOOD


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Spain Estonia Finlan

Slovenia

France

AGROINDUSTRY

Liquors (especially dark rum)

Value-added sauces

Snacks

MANUFACTURED GOODS

Articles andaccessories for pets

Nail polish

Hotel supplies

Cosmetics and personal

care products

All types of clothing(including casual and formal

wear and bathing suits)

SERVICES AND ENTERTAINMENT

Mobile applications

Health services

BPO (development of softwareand call centres)

AGROINDUSTRY

Organic foodstuffs (especiallywithout preservatives, low fat andlow sugar content)

MANUFACTURED GOODS

Sports items and clothing

AGROINDUSTRY

Canned food

FruitsCoffee and it

MANUFACTURED GOODS

Baby products (clothing,footwear, food and toys)

Clothing and footwear

Cosmetics and personalhygiene products

Hotel Supplies

AGROINDUSTRY

Fruits and fruit juices

MANUFACT

Cosm

Clothing (eand cor

sportsw


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Greece

Holland

Italy

Portugal

UnitedKingdo

AGROINDUSTRY

Processed fruit and vegetables

MANUFACTURED GOODS

Clothing (especially mens andwomens outerwear)

Generic pharmaceuticalproducts

AGROINDUSTRY

Ready-made meals,

take-away products andpre-packed, preserved,frozen and processed foods

Sugars

Wood

AGROINDUSTRY

Exotic flowers and leaves

Special coffeesTropical and exotic fruitSnacks and dehydrated fruit

MANUFACTU

Hom

Natural ipharmaceuti

Clothingchild

SERVICES AND ENTERTA

Creative technology-based in

AGROINDUSTRY

Processed and frozen fruit

AGROINDUSTRY

Fresh flowers

MANUFACTURED GOODS

Footwear

Iron and steel products


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Sweden

MANUFACTURED GOODS

Plastic (containers and packaging)

AGROINDUSTRY

Frozen processed foods

Fresh fruits


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The Trade Agreement with theEuropean Union will help Colombia to3:

1. Create jobs and growth at home to ensure continuedeconomic development.

2. Provide access for Colombian producers to a consumermarket larger than the United States and Japancombined.

3. Provide immediate duty free access to EU markets for99.9% of Colombias manufacturing, industrial goodsand fisheries.

4. Provide duty free access to EU markets for keyagricultural products, including sugar, flowers, coffee,bananas and other fruit and beef, whilst protectingsensitive products, such as pork, poultry, corn and rice.

5. Reduce barriers and boost investment from Europeancountries into Colombias manufacturing base andservices sectors.

6. Build partnerships with international actors that cansupport Colombias progress in promoting human andtrade union rights at home and abroad.

7. Strengthen Colombias commitmentdevelopment by ensuring guarantarchitecture of the Agreement for hig

and labour standards.

8. Ensure that Colombian companies canpublic procurement contracts on a nobasis.

9. Provide technical assistance and cinitiatives aimed at promoting cominnovative potential.

10.Highlight Colombias leadership withand strengthen Colombias ties to apolitical power.

3 Taken from http://www.colombia-eu.org

Information from the Ministry of Trade, Industry and Tourism, ProexpCommission and the European Parliament


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Produced by:Embassy of Colombia

Ministry of Foreign ACoordination of Inter

Information fromMinistry of CommercProexport

DesignCoordination of InterMinistry of Foreign A

Libertad y O rden

Ministry of Foreign AffairsRepublic of Colombia

Lir t r

Documents

EUROPA TLC Inglés.pdf