SICE: Trade Policy Developments: Andean Countries-EU

In 1993 the Andean Community membership: (Bolivia, Colombia, Ecuador and Peru) and the European Commission signed a Framework Cooperation Agreement (adopted by the Andean Community as Decision 329 which entered into force in 1998). The 1996 EC Declaration of Rome sets out a draft Declaration on Political Dialogue between the European Union and the Andean Community, which contemplates official meetings on bilateral and international matters of common interest to be held at the presidential and ministerial level.

In May 2002 at the EU-Latin American and Caribbean Summit, held in Madrid, a new Political Dialogue and Cooperation Agreement was initiated between the European Union (EU) and the Andean Community. This agreement was signed in Rome in December 2003 and, once ratified, will replace the 1996 Declaration of Rome and the 1993 Framework Agreement on Cooperation. At the 2005 EU Ministerial meeting, Andean Community Ministers informed the EU that the 2003 Agreement had been adopted by Andean Community's Foreign Affairs Council on 11 July 2004, through Andean Community Decision number 595. At the July 2006 EU-Andean Community High Level Meeting, both sides agreed on the need to speedily ratify the Political Dialogue and Cooperation Agreement and on the need for a future Association Agreement to be comprehensive and include political, cooperation and trade pillars.

The 1993 Framework Agreement identified different cooperation areas and established joint committees for follow-up activities as well as a subcommittee on trade, which have continued to operate. A Joint Committee (originally established pursuant to the 1983 Cooperation Agreement) continued to operate.

With the 2004 Declaration of Guadalajara, the EU initiated a joint assessment of the Andean Community integration process, which was referenced in the Joint Committee declaration of January 2005 as a step leading towards negotiations on an Association Agreement, including a Free Trade Agreement. At the ministerial meeting in May 2005, Ministers created an ad hoc working group to advance in the technical aspects of the joint assessment exercise. The first meeting of the working group took place in Lima, Peru on 5 April 2005. The second meeting took place in Brussels, Belgium on 26 July 2005. The third meeting took place in Caracas, Venezuela on 10-11 November 2005. At this meeting the technical phase of the process was concluded. The final report was presented to the Joint Committee in July 2006. On 19 April 2007, during the XIII Ministerial Meeting between the Andean Community and the European Union, Ministers expressed their intention to begin negotiations of the Association Agreement in May 2007. Negotiations were launched on 14 June 2007 on the occasion of the Seventeenth Regular Meeting of the Andean Council of Presidents held in Tarija, Bolivia. Both parties welcomed the approval of Decision 667 containing the General Framework for the Negotiation of the Associacion Agreement between the Andean Community and the European Union that establishes that the different levels of development and economic approaches among both groups will be taken into account in the negotiations.

The first round of negotiations were held in Bogotá on 17 September 2007. The second round took place in Brussels, Belgium on 14 December 2007. The third round of negotiations was concluded in Quito, Ecuador on 25 April 2008. On 17 May 2008, during the V Latin America and Caribbean-European Union Summit, the Andean Community and the EU agreed to a flexible framework agreement for the association of both blocs. The agreement will cover three aspects: trade, political and cooperation. Each country of the Andean Community (Bolivia, Colombia, Ecuador and Peru) will be able enter into any one of the aspects of said agreement according to the country’s possibilities, ambitions, deadlines and pace.

In this context, at the end of February 2009, Colombia, Ecuador and Peru met with the EU in Brussels to advance in the negotiations of a trade agreement. The first round of negotiations was held in Bogota, Colombia, on 13 February 2009. The second round of negotiations took place from 23-27 March 2009, in Lima, Peru. The third round took place on 22-25 April 2009, in Quito, Ecuador. The fourth round of negotiations concluded on 19 June 2009. The fifth round of negotiations took place from 20-24 July 2009, in Lima, Peru. The sixth round of negotiations took place in Brussels on 21-25 September 2009. A seventh round of negotiations on a free trade agreement between the EU and Colombia and Peru concluded on 20 November 2009. On 18- 22 January 2010 the eighth round of negotiations took place in Bogota, Colombia. The nineth round of negotiations was held in Brussels, Belgium, from 22-28 March 2010.

On 19 May 2010, in Madrid, Spain, in the framework of the VI European Union-Latin America and the Caribbean Summit of Heads of State and Government, Colombia and Peru concluded their respective free trade negotiations with the EU.

In November 2010, Peru and the European Union met in Brussels to undertake the legal review of the bilateral FTA. It is expected that the FTA will be concluded in late 2011 or early 2012 after their respective Congresses approve the agreement.

Chief negotiators of the European Commission, Peru and Colombia met in Brussels on 23 and 24 March 2011 to initial the final texts of the agreement between the parties. The initialling will be followed by the process of translation, signature and adoption of this agreement so that it can enter into force. On 16 March 2012, the Council of the European Union cleared the free trade agreement with Colombia and Peru. The agreement was reached at a meeting of the Trade Affairs Council. The Agreement between Peru, Colombia and the European Union was signed in Brussels, Belgium, on 26 June 2012.

At the beginning of 2013, Ecuador decided to formally restart trade negotiations with the European Union. After four rounds of negotiations, on 17 July 2014, the parties concluded negotiations allowing Ecuador to join the Colombia and Peru - EU Multiparty Trade Agreement. On 23 September 2014, Ecuador and the European Union published the text of their trade agreement. On 12 December 2014, they proceeded to the initialing of the document between both countries. Ecuador joined the Trade Agreement beteween the EU and Colombia and Peru on November 11, 2016.

Documents relating to the negotiations: EU-Colombia and Peru
26 June 2012	Brussels, Belgium. Agreement between Peru, Colombia and the European Union was signed
	Highlights of the Agreement between Peru, Colombia and the European Union
13 June 2012	Agreement between Peru, Colombia and the European Union will be signed in Brussels,Belgium, on 26 June 2012
12 March 2012	Brussels, Belgium. Council of the European Union clears free trade agreement with Colombia and Peru
24 March 2011	Negotiators initial trade agreement between the European Union, Colombia and Peru
24 November 2010	Peru and EU conduct a legal review of bilateral FTA
19 May 2010	Colombia and the EU conclude free trade negotiations
19 May 2010	Peru and the EU conclude free trade negotiations
01 March 2010	Ninth round of trade negotiations between Colombia- Peru and the EU
22 January 2010	Bogota, Colombia. Eighth round of trade negotiations between Colombia- Peru and the EU
16-20 November 2009	Bogota, Colombia. Seventh round of trade negotiations between Colombia-Peru and the EU
21-25 September 2009	Brussels, Belgium. Sixth round of trade negotiations between Colombia-Peru and the EU
20-24 July 2009	Lima, Peru. Fifth round of trade negotiations between Colombia-Ecuador-Peru and the EU
15-19 June 2009	Bogota, Colombia. Fourth round of trade negotiations between Colombia-Ecuador-Peru and the EU
22-25 April 2009	Quito, Ecuador. Third round of trade negotiations between Colombia-Ecuador-Peru and EU
27 March 2009	Lima, Peru. Conclusion of second round of trade negotiations between Colombia-Ecuador-Peru and EU
23-27 March 2009	Lima, Peru. Second round of trade negotiations between Colombia-Ecuador-Peru and EU
22 January 2009	Bogota, Colombia. First round of trade negotiations between Colombia-Ecuador-Peru and EU
17 May 2008	Lima, Peru. Andean Community and EU agree to a flexible framework agreement
16 May 2008	Lima, Peru. V Latin America and Caribbean-European Union Summit: Lima Declaration
25 April 2008	Quito, Ecuador. Third round of negotiations
	Joint conclusions: Group I - Political dialogue
	Joint conclusions: Group II - Cooperation
14 December 2007	Brussels, Belgium. Second round of negotiations
21 September 2007	Bogota, Colombia. Conclusion of the first round of negotiations
17 July 2007	First round of negotiations of an association agreement will be held in September
14 June 2007	Declaration of Tarija: Launching of Andean Community-EU negotiations
08 June 2007	Decision 667: General Framework for the Negotiation of the Association Agreement between the Andean Community and the European Union
19 April 2007	Santo Domingo, Dominican Republic. EU and Andean Ministers express their intention to begin negotiations of an Associacion Agreement in May
12-13 July 2006	EU-Andean Community High-level Meeting
12 May 2006	EU and Andean Community initiate process towards Association Agreement
11 July 2004	Andean Community Decision 595
26 May 2005	Luxembourg. Andean Community-EU Ministerial meeting
29 May 2004	Declaration of Guadalajara
15 October 2003	Political Dialogue and Co-operation Agreement between the European Community and its Member States, of the one part, and the Andean Community and its Member States, Bolivia, Colombia, Ecuador, Peru and Venezuela, of the other part
06 May 2003	Launch of the negotiations of the Political Dialogue and Cooperation Agreement between the European Union and the Andean Community (CAN), 6-8 May 2003
30 June 1996	Declaration of Rome
03 April 1993	Framework Agreement on Cooperation
22 October 1992	Andean Community Decision 329
Source: European Union; Ministerio de Comercio Exterior y Turismo, Perú (Mincetur); Secretaría General de la Comunidad Andina; V Cumbre ALC-UE