COMMERCIAL AGREEMENT

AMONG
EUROPEAN UNION AND
COLOMBIA.
STUDENTS:
ANA ISABEL MORA MEDINA
DANIELA GARNICA

SUMMARY OF THE FTA

Dates:

This agreement was signed on

26 June 2012 in Brussels and it
was implemented on July 31,
2013.

SUMMARY OF THE FTA

Content: This agreement defines the rules of trade in 14 chapters between

the European Union and Colombia in goods, services and investment. These
are the chapters:
1. Initial provisions
2. Institutional provisions
3. Trade in goods
4. Trade in services, establishment and electronic commerce
5. Current payments and capital movements
6. Public procurement

SUMMARY OF THE FTA

7. Intellectual property
8. Competition
9. Trade and sustainable development
10. Transparency and administrative procedures
11. General exceptions
12. Dispute solutions
13. Technical assistance and trade capacity
building
14. Final provisions
The agreement excluded rice, corn and pork
products.

SUMMARY OF THE FTA

Main objective: define a preferential

trade of goods and services between
the regions involved and reduce trade
barriers between them.

Term: indefinite, therefore investment

plans will be longer and with more
stability.

SUMMARY OF THE FTA

Main advantages:

Reduction of taxes on most Colombian agricultural products to enter in

European Union.

Free access to European public procurement in the field of railways,

gas, construction, etc.

Colombia will compete on equal terms with other countries that

already have a free trade agreement with the European Union like
Mexico and Chile.

SUMMARY OF THE FTA

Creation of trade relations to strengthen trade in goods, services and labor

of Colombian entrepreneurs.

Decrease in prices and better choices for consumers of the countries

involved.

Possibility of new, more stable and longer-term investments.

Possibility to trade a key player in the global economy as European Union:

7.3% of world population

Gross Domestic Product per capita of $USD 32.000 Dollars.

First exporter and importer of goods and services on the world.

20% of world Gross Domestic Product.

SUMMARY OF THE FTA

Positive impact on the Colombian economy:

Increase Gross Domestic Product by 0.46%

Increased exports by 0.71%

Increased imports by 1.73%

Increase in skilled labor remuneration of

0.25%

Increase in the remuneration of unskilled

labor of 0.53%

BUSINESS OPPORTUNITIES
Farming: The important Colombian products will have
taxes advantages:

Sugar: duty free for 62.000 tons a year.

Sugar products: duty free for 20.000 tons a year.

Ethanol and Biodiesel: duty free.

Flowers: duty free.

Coffee: duty free for coffee roasting and coffee

preparations.

BUSINESS OPPORTUNITIES

Palm oil: duty free for crude oil and refined.

Fruits and vegetables: duty free in majority.

Snuff: duty free.

BUSINESS OPPORTUNITIES

Industry:

Duty free for plastic, textiles and

garments including fishing.

BUSINESS OPPORTUNITIES

Services:

The agreement provides better market access

for service sectors such as:

Consulting

Call centers

Online translation

BUSINESS OPPORTUNITIES

Data processing

Computer services

Design

Maritime Services

Financial services

Telecommunications Services

BUSINESS OPPORTUNITIES
Public procurement:

Colombian companies will have transparent

and non-discriminatory procedures for
participation in a market of 377 billion euros
in government procurement.

BUSINESS OPPORTUNITIES
Foreign Direct Investment in Colombia:

It has been identified investment interest in

Colombia by different countries of the European
Union:

Germany: renewable energy, machinery for the

production and transmission of energy

Belgium: chemical and automotive parts

Spain: processed foods, cosmetics and toiletries,

supplies, software and IT services,
telecommunications and tourism.

BUSINESS OPPORTUNITIES

France: hotels and tourism, processed foods, software and IT services

Netherlands: chemicals

Ireland: renewable energy

Italy: textiles, automotive and oil services

Portugal: paper, printing and packaging, hotels and tourism and

construction

UK: tourism, IT services and renewable energy.

BUSINESS PROTOCOL TO DO
BUSINESS WITH THE EU

Before exporting to the European Union entrepreneur should know the

answers to the following questions.

What is the code of my product in the European classification?

What are the requirements for my product to enter the European

Union?

What taxes apply my product?

What rights apply to my product?

BUSINESS PROTOCOL TO DO
BUSINESS WITH THE EU

Do my country and my product have preferential trade agreement?

How I can certify the origin of my product?

How I can get detailed statistics about trade flows?

How I can find partners in the European Union?

On the Export Helpdesk web page you can consult the answers.