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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
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