Lima, April 18, 2005

The undersigned representatives of the Andean trade association members of the Motor Vehicle Complementarity Agreement, in the framework of the working meeting held in Lima on Monday, April 18, 2005, make the following declaration:

The Motor Vehicle Complementarity Agreement, supported by articles 64 and 65 of the Cartagena Agreement, is a pioneering common policy aimed at contributing to the construction of the Customs Union and, as such, an accomplishment in itself of the integration process that should be safeguarded.

A rapid review of its results reveals that the common policy has ensured the security of investments, considering the fluctuations in our economies and the enormous competition that exists in this field. Production and employment activate the economy and the organization of production chains as the basis for the economy requires certainty for their continued existence and the build-up of a strong industry over time.

Insofar as negotiations with third parties are concerned, the Agreement has always operated as a forum that supports those negotiations with constructive proposals reached by consensus in favor of common interests.

We understand how complicated negotiating with third parties can be and for that reason request the governments, in regard to this sector, to maintain the preeminence of Andean legislation, particularly the provisions referring to the treatment of used goods, remanufactured vehicles and similar items, including those that have their own tariff number in the NANDINA classification, in such a way that the latter do not benefit from the stipulations of the FTA with the United States.

In regard to the tariff phase-out periods, we ask that the governments keep in mind the coherence that should be maintained among the sensitivities, considering Andean production as a whole and the existing imbalances.

Aware of the contents of General Secretariat document SG/dt 290/Rev. 1 of April 8, 2005 on the evaluation of the Motor Vehicle Agreement, we wish to express our full support for that initiative and our intention to contribute to the effort.

We reiterate our support for the Andean integration process and express our hope that the negotiations with the United States will reach a successful conclusion in the sense that the common interests of our countries are safeguarded.

Camilo Llinás for ACOLFA, Colombia

Juliana Rico for ANDI, Colombia

Marcelo Ruiz for CINAE, Ecuador

Omar Bautista for FAVENPA, Venezuela