Report of the I Meeting of the Andean Community – Northern Triangle (El Salvador, Guatemala and Honduras)

The Delegations of the Andean Community Member Countries and of El Salvador, Guatemala and Honduras, Member Countries of the Central American Common Market, met in Lima, Peru on March 2 and 3, 2000, to launch negotiations for the Partial Scope Economic Complementarity Agreement on tariff preferences.

The Andean Community Delegation was led by the National Director for Integration and International Trade Negotiations of the Ministry of Industry, Tourism, Integration and International Trade Negotiations of Peru, Mr. Eduardo Brandes Salazar.

The Northern Triangle countries, for their part, were headed by the following persons: for El Salvador, by Mr. Ricardo Alcides Martell, Chief, Market Access, Ministry of Economy; for Guatemala, by Mr. Rubén Estuardo Morales Monroy, Director of Trade Negotiations of the Ministry of Economy; and for Honduras, by Ms. Suyapa Lisette Andino Sánchez, Head of the Trade Negotiations Department of the Secretariat of Industry and Trade.

The list of participants is attached as Annex 1.

During the course of the Meeting, the Delegations reiterated the determination of their governments to negotiate and sign a Trade and Investment Agreement as soon as possible. It is their intention for this Agreement to have simple rules that will make it possible to increase trade and investment flows and at the same time to serve as a foundation for intensifying those commitments in the future with a view to attaining a Free Trade Agreement, as agreed by the Vice-Ministers of the two trading blocs on April 25, 1999.

The Delegations exchanged information about their tariffs and other trade policy issues relevant to the negotiation. They also specified the data they would like to receive (Annexes II and III).

The Andean Community Delegation presented the text of the Draft Agreement that had first been introduced in September 1999 and discussed the general criteria that were considered in putting together the list of products in which it is interested.

That Delegation also delivered a proposal regarding Article 4 d) and f) of the Annex on Provisions of Origin of the Draft Agreement on Economic Complementarity (Annex IV), as well as an additional list of products in which it is interested (Annex V).

El Salvador, Guatemala and Honduras, for their part, put forward and explained an alternative proposal to Chapter II on Trade Liberalization of the draft Agreement presented by the Andean Community (Annex VI).

There was a wide-ranging discussion of the criteria that should be used in negotiating the products and of the methodology to be adopted to facilitate the negotiation, so that the Agreement may be concluded as rapidly as possible.

Answers regarding the lists of products of interest must be forthcoming by April 14th of this year, together with an indication of the margins of preference the countries are in a position to grant. The Secretariats of each bloc will be responsible for this simultaneous exchange via electronic mail.

The Delegations agreed, as well, in regard to the proposed text of the Agreement, to exchange opinions on the different topics to be negotiated.

In preparing the agenda for the next meeting, the Delegations agreed to continue with their exchange of information and to address all of the topics involved in the proposed Agreement. The Delegations of El Salvador, Guatemala and Honduras stated with regard to the negotiation of preferences for the products of interest, that the start-up would depend upon the progress made in negotiating the text of Chapter II of the Agreement. The Andean Community Delegation, for its part, proposed as working methodology for the next meeting that the two blocs devote their efforts simultaneously to two negotiations, one, the text of the Agreement and two, the preferences to be granted in regard to the products of interest to the two blocs, following the order of the trade classifications.

In concluding, it was agreed to hold the next negotiation meeting in San Salvador, El Salvador on May 3, 4 and 5 of 2000.

Lima, March 3, 2000

 

(signed by)

Eduardo Brandes Salazar
Chairman of the Andean Community Delegation
 

Ricardo Alcides Martell
Minister of Economy of El Salvador

Rubén Estuardo Morales Monroy
Minister of Economy of Guatemala

Suyapa Lisette Andino Sánchez
Secretary of Industry and Trade of Honduras