ANDEAN COMMUNITY

TRADE AGREEMENTS World Trade Organization - WTO Free Trade Area of the Americas - FTAA Andean Community The Group of Three (G-3) Colombia - Chile Agreement Andean Countries and Mercosur Agreement Colombia - Caricom Agreement Colombia - Panama Agreement Others

The Andean Community is a sub-regional organization endowed with an international legal status that pursues economic integration among its members - Bolivia, Colombia, Ecuador, Peru and Venezuela - In the area of trade, member countries have established a free trade zone and a customs union.

The Andean Free Trade Zone was formed in February 1993, when Bolivia, Colombia, Ecuador, and Venezuela fully eliminated customs tariffs applied to each other, while maintaining their own individual tariffs for third parties. Peru became a part of that area in July 1997 and since then has been gradually deregulating its trade with its Andean partners.

Also, the Andean Community is a Customs Union among some of its members, because their goods circulate throughout their territories free of duties, while imports from outside pay a common tariff. The Andean Customs Union has been in operation since 1995, when the Common External Tariff (CET) approved by Colombia, Ecuador and Venezuela at the basic levels of 5, 10, 15 and 20 percent came into effect. Bolivia enjoys preferential treatment and only applies levels of 5 and 10 percent, while Peru is not yet part of the Customs Union.

In addition to market access in goods, the Andean Community has developed disciplines on rules of origin, customs, trade remedies, safeguards, technical regulations, SPS measures, intellectual property, and dispute settlement. Also, a general framework of principles and provisions has been adopted to regulate trade in services.

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