Andean Community / Decision 563: Official Codified Text of the Andean Subregional Integration Agreement (Cartagena Agreement)

DECISION 563
Official Codified Text of the Andean Subregional Integration Agreement (Cartagena Agreement)

THE COMMISSION OF THE ANDEAN COMMUNITY,

HAVING SEEN: The Amending Protocol of the Andean Subregional Integration Agreement (Cartagena Agreement of 1997), known as the “Sucre Protocol,” adopted in Quito on June 25, 1997;

CONSIDERING: That the Sucre Protocol entered into force on April 14, 2003; and

That article 32 of the Sucre Protocol stipulates that the Andean Community Commission shall adopt, through a Decision, the amended consolidated text of the Andean Subregional Integration Agreement (Cartagena Agreement) that incorporates the amendments introduced by the cited Protocol and that the necessary changes shall be made in the numbering of the articles;

DECIDES:

Article 1.- To approve the codification of the Andean Subregional Integration Agreement, “The Cartagena Agreement,” in the terms that appear in the annex to this Decision.

Article 2.- This Decision replaces Decision 406 of June 25, 1997.

Signed in the Quirama Recinto, Antioquia Department, of the Republic of Colombia, on the twenty-fifth of June of two thousand three.

ANDEAN SUBREGIONAL INTEGRATION AGREEMENT
"CARTAGENA AGREEMENT"

THE GOVERNMENTS of Bolivia, Colombia, Ecuador, Peru, and Venezuela,

INSPIRED by the Declaration of Bogotá and by the Declaration of the Presidents of America;

RESOLVED to strengthen the union of their peoples and to lay the foundations for advancing toward the formation of an Andean subregional community;

AWARE that integration constitutes a historical, political, economic, social, and cultural mandate for their countries, in order to preserve their sovereignty and independence;

BASED on the principles of equality, justice, peace, solidarity, and democracy;

DETERMINED to attain such goals by creating an integration and cooperation system that will lead to the balanced, harmonious, and shared economic development of their countries;

AGREE, through their duly authorized plenipotentiary representatives, to enter into the following SUBREGIONAL INTEGRATION AGREEMENT:

CHAPTER I
OBJECTIVES AND MECHANISMS

Article 1.- The objectives of this Agreement are to promote the balanced and harmonious development of the Member Countries under equitable conditions, through integration and economic and social cooperation; to accelerate their growth and the rate of creation of employment; and to facilitate their participation in the regional integration process, looking ahead toward the gradual formation of a Latin American Common Market.

This Agreement also seeks to reduce external vulnerability and to improve the positioning of the Member Countries within the international economic context; to strengthen subregional solidarity, and to reduce existing differences in levels of development among the Member Countries.

These objectives are aimed at bringing about an enduring improvement in the standard of living of the subregion´s population.

Article 2.- Balanced and harmonious development shall lead to a fair distribution among the Member Countries of the benefits deriving from integration, so that the existing differences among them are reduced. The results of that process shall be evaluated periodically, bearing in mind, among other elements, its effects on the growth of each country’s total exports, the performance of its balance of trade with the subregion, the evolution of its gross domestic product, the creation of new jobs, and capital formation.

Article 3.- The following mechanisms and measures shall be used, among others, to fulfill the objectives of this Agreement:

a) The integration with other economic blocs in the region will be intensified and political, social and economic-trade relations will be established with extra-regional systems.

b) Economic and social policies will be gradually harmonized and national laws with regard to pertinent matters will be aligned;

c) Joint programming will be instituted, subregional industrialization will be intensified, industrial programs will be implemented, and other means of industrial integration will be applied;

d) A more advanced schedule of trade liberalization than the commitments derived from the 1980 Treaty of Montevideo will be instituted;

e) A Common External Tariff will be adopted;

f) Programs will be carried out to accelerate the development of the agricultural and agroindustrial sectors;

g) Resources will be channeled from in and outside the Subregion to finance the investments needed by the integration process;

h) Programs will be conducted in the areas of services and the liberalization of intra-subregional trade in services;

i) Physical integration will be pursued; and

j) Bolivia and Ecuador will receive preferential treatment.

In addition to the mechanisms set out above, the following economic and social cooperation programs and aims shall be carried out in a concerted effort:

a) Programs to promote scientific and technological development;

b) Border integration measures;

c) Programs in the area of tourism;

d) Activities for the use and preservation of natural resources and the environment;

e) Social development programs: and

f) Efforts in the field of social communications.

Article 4.- To carry out this Agreement in the best way possible, Member Countries shall make the necessary efforts to seek adequate solutions to the problems stemming from Bolivia’s landlocked condition.

CHAPTER II
ON THE ANDEAN COMMUNITY AND THE ANDEAN INTEGRATION SYSTEM

Article 5.- The "Andean Community" is hereby created, composed of the sovereign States of Bolivia, Colombia, Ecuador, Peru, and Venezuela, and of the bodies and institutions of the Andean Integration System, and is established by this Agreement.

Article 6.- The Andean Integration System is made up of the following bodies and institutions:

- The Andean Presidential Council;

- The Andean Council of Foreign Ministers;

- The Andean Community Commission;

- The Andean Community General Secretariat;

- The Andean Community Court of Justice;

- The Andean Parliament;

- The Business Advisory Council;

- The Labor Advisory Council;

- The Andean Development Corporation;

- The Latin American Reserve Fund;

- The Simón Rodríguez Convention, the Social Conventions that join the Andean Integration System, and those that are created within its framework;

- The Simón Bolívar Andean University;

- The Advisory Councils established by the Commission; and,

- All other bodies and institutions that are created within the framework of Andean subregional integration.

Article 7.- The purpose of the System is to allow for effective coordination among its component bodies and institutions, in order to deepen Andean subregional integration, promote its external influence and consolidate and strengthen actions related to the integration process.

Article 8.- The bodies and institutions of the Andean Integration System are governed by this Agreement and by their respective establishing treaties and amending protocols.

Article 9.- In order to achieve the best possible coordination within the Andean Integration System, the Chairman of the Andean Council of Foreign Ministers will call and chair the Meetings of Representatives of the institutions that comprise the System.

The main tasks of the Meeting shall be:

a) To exchange information about the actions taken by the respective institutions to carry out the Guidelines issued by the Andean Presidential Council;

b) To study the possibility and desirability of arranging, among all or some of the institutions, to carry out coordinated actions that will contribute to the achievement of the objectives of the Andean Integration System; and,

c) To present to the Andean Council of Foreign Ministers meeting in enlarged session, reports about the actions carried out in fulfillment of the Guidelines that have been received.

Article 10.- The Representatives of the institutions comprising the Andean Integration System shall meet in regular session at least once a year and in special session whenever requested to do so by any of the member institutions, at the site agreed upon before the meeting is called.

The Andean Community General Secretariat shall act as the Secretariat for the Meeting.

Section A - On The Andean Presidential Council

Article 11.- The Andean Presidential Council is the highest-level body of the Andean Integration System and is made up of the Heads of State of the Member Countries of the Cartagena Agreement. It issues Guidelines on the different spheres of Andean subregional integration, which are carried out by the System bodies and institutions determined by the Council, in keeping with the responsibilities and mechanisms established in their respective Treaties or establishing Agreements.

The bodies and institutions of the System shall guide their policies in the way directed by the Guidelines issued by the Andean Presidential Council.

Article 12.- It is the Andean Presidential Council’s responsibility:

a) To define Andean subregional integration policy;

b) To guide and promote action on matters of interest to the Subregion as a whole, as well as on those related to the coordination among the bodies and institutions of the Andean Integration System;

c) To evaluate the development and results of the Andean subregional integration process;

d) To consider and issue opinions about reports, initiatives, and recommendations that are submitted by the bodies and institutions of the Andean Integration System; and

e) To study all issues and matters concerning the course of Andean subregional integration and its external projection.

Article 13.- The Andean Presidential Council shall meet regularly once a year, preferably in the country that chairs it. In this meeting, it shall review the actions taken by the bodies and institutions of the Andean Integration System, as well as their projects, programs, and suggestions. The members of the Andean Council of Foreign Ministers and of the Commission, and representatives of the System bodies and institutions, may attend the meetings of the Andean Presidential Council as observers.

The Andean Presidential Council may meet in special session whenever it considers this advisable, at the place agreed upon before the meeting is called.

Article 14.- The Andean Presidential Council shall have a Chairman who shall be the Andean Community’s top political representative, and who shall hold office for a period of one calendar year. That position shall be filled, successively and in alphabetical order, by each of the Member Countries.

The responsibilities of the Chairman of the Andean Presidential Council shall be:

a) To convene and chair the regular and special meetings of the Council;

b) To represent the Council and the Andean Community;

c) To ensure that the Guidelines issued by the Council are carried out by the other bodies and institutions of the Andean Integration System; and,

d) To carry out all tasks requested by the Council.

Section B - On the Andean Council of Foreign Ministers

Article 15.- The Andean Council of Foreign Ministers is comprised of the Ministers of Foreign Affairs of the Member Countries of the Cartagena Agreement.

Article 16.- The responsibilities of the Andean Council of Foreign Ministers are:

a) To formulate the Member Countries´ foreign policy on matters of subregional interest, as well as to orient and coordinate the external efforts of the different bodies and institutions of the Andean Integration System;

b) To formulate, carry out, and evaluate general Andean subregional integration policy, in coordination with the Commission;

c) To carry out the Guidelines given to it by the Andean Presidential Council and to ensure the execution of those that are intended for the other bodies and institutions of the Andean Integration System;

d) To sign Conventions and Agreements with third countries or groups of countries or with international organizations in regard to global foreign policy and cooperation issues;

e) To coordinate, within its sphere of responsibility, the joint position of the Member Countries in international forums and negotiations;

f) To represent the Andean Community, within the sphere of its competence, in matters and acts of common interest, according to the rules and objectives of the Agreement;

g) To recommend or adopt measures within its area of responsibility that will ensure the accomplishment of the purposes and objectives of the Cartagena Agreement;

h) To ensure harmonious compliance with the obligations set out in this Agreement and in the 1980Treaty of Montevideo;

i) To approve and modify its own regulations;

j) To approve the General Secretariat’s Regulations and all amendments thereto at the proposal of the Commission;

k) To hear and resolve, within its area of responsibility, all other matters of common interest.

Article 17.- The Andean Council of Foreign Ministers shall express itself through Declarations and Decisions adopted by consensus. The latter shall be a part of Andean Community Law.

Article 18.- The Andean Council of Foreign Ministers shall meet in regular session twice a year, preferably in the country that chairs the Council. It may also meet in special session, when deemed advisable, at the request of any of its members, in the place agreed upon before the meeting is convened.

Article 19.- The Andean Council of Foreign Ministers shall be headed by the Foreign Minister of the country that chairs the Andean Presidential Council, who shall hold office for a period of one calendar year.

The coordination work corresponding to the Chairman of this Council shall be performed by the Foreign Ministry of the country whose Head of State chairs the Andean Presidential Council, acting as the Pro Tempore Secretariat of both bodies and with the technical support of the Andean Community General Secretariat.

Article 20.- The Andean Council of Foreign Ministers shall meet in enlarged session with the delegation representatives to the Commission at least once a year and, at the level of alternative representatives, whenever it considers it necessary, in order to discuss matters related to the Cartagena Agreement that are of interest to both bodies, such as:

a) To prepare the meetings of the Andean Presidential Council;

b) To choose and, when suitable, remove the General Secretary of the Andean Community;

c) To propose to the Andean Presidential Council any amendments to this Agreement;

d) To evaluate the performance of the General Secretariat;

e) To consider the initiatives and proposals submitted for its consideration by the Member Countries or the General Secretariat; and,

f) Any other issues that both bodies decide to address jointly by common agreement.

Section C - The Andean Community Commission

Article 21.- The Andean Community Commission shall be comprised of a plenipotentiary representative from each Member Country’s government, which shall accredit a representative and an alternate representative.

The Commission shall express its will through Decisions.

Article 22.- It is the responsibility of the Andean Community Commission:

a) To formulate, carry out, and evaluate Andean subregional integration policy in the area of trade and investment and, when in order, in coordination with the Andean Council of Foreign Ministers;

b) To take the necessary measures to accomplish the objectives of the Cartagena Agreement and to implement the Guidelines laid down by the Andean Presidential Council;

c) To coordinate, within its sphere of responsibility, the joint position of the Member Countries in international forums and negotiations;

d) To ensure harmonious compliance with the obligations set out in this Agreement and in the 1980 Treaty of Montevideo;

e) To approve and amend its own regulations;

f) To approve, reject or amend the proposals submitted to it by the Member Countries, individually or collectively, or by the General Secretariat;

g) To maintain ongoing relations with the bodies and institutions comprising the Andean Integration System, in order to boost the coordination of programs and measures aimed at accomplishing its common objectives;

h) To represent the Andean Community, within the sphere of its responsibilities, in matters and acts of common interest, in keeping with the rules and objectives of this Agreement;

i) To approve the annual budgets and evaluate the budgetary performance of the General Secretariat and the Andean Community Court of Justice, and to set the contributions to be paid by each of the Member Countries; and,

j) To submit the proposed Regulations of the General Secretariat for consideration by the Andean Council of Foreign Ministers.

In fulfilling its responsibilities, the Commission shall give special consideration to Bolivia and Ecuador’s situation in terms of the objectives of this Agreement, the preferential treatment provided in their favor, and Bolivia’s landlocked status.

Article 23.- The Commission shall have a Chairman, who shall hold office for one calendar year. That office shall be filled by the representative of the country that is currently chairing the Andean Presidential Council.

Article 24.- The Commission shall meet on a regular basis three times a year and in special session whenever such a meeting is called by its Chairman at the request of any of the Member Countries or the General Secretariat.

Its sessions shall be held at the headquarters of the General Secretariat, but they may also take place elsewhere. The Commission shall meet with the presence of an absolute majority of the Member Countries.

Attendance at Commission meetings is obligatory and failure to attend shall be considered an abstention.

Article 25.- At the request of one or more of the Member Countries or of the General Secretariat, the Commission’s Chairman shall summon the Commission to meet as an Enlarged Commission, in order to address sector issues, consider regulations for coordinating the development plans and harmonizing the economic policies of the Member Countries, and hear and resolve all other matters of common interest.

The meetings shall be presided over by the Commission Chairman and shall be jointly comprised of the representatives to the Commission and the Ministers or Secretaries of State of the respective area. Each country is entitled to cast one vote in order to approve Decisions that will become a part of Andean Community Law.

Article 26.- The Commission shall adopt its Decisions by affirmative vote of the absolute majority of the Member Countries. The exceptions to this general rule are:

a) The matters included in Annex 1 to this Agreement, in which case the Commission shall adopt its Decisions by the affirmative vote of the Member Countries with no negative votes being cast.

The Commission may add new matters to that Annex through the affirmative vote of the absolute majority of the Member Countries;

b) For the cases listed in Annex II, General Secretariat proposals shall be approved with the affirmative vote of the absolute majority of the Member Countries, provided that no negative vote is cast. Any proposal that receives the affirmative votes of the absolute majority of the Member Countries, but also a negative vote, shall be returned to the General Secretariat for consideration of the grounds for that negative vote. Within a period of no less than two months or more than six, the General Secretariat shall present the proposal once again for consideration by the Commission, including any modifications it deems appropriate. The amended proposal shall be considered approved if it receives the affirmative vote of the absolute majority of the Member Countries, with no negative vote. In this case, the vote of the country that had dissented previously shall not be counted as a negative vote; and

c) Industrial Development Programs and Projects shall be approved with the affirmative vote of the absolute majority of the Member Countries, provided that no negative vote is cast.

Article 27.- The General Secretariat or the Member Countries shall present their proposals at least fifteen days prior to the corresponding meeting of the Andean Council of Foreign Ministers or of the Commission. Only in duly justified exceptional cases and in accordance with Andean Community Law may the required deadlines be waived, provided that both the proponent and the other Member Countries agree to this.

Proposals that receive the affirmative vote of the absolute majority of the Member Countries, but also a negative vote, shall be returned to the proponent for consideration of the grounds that gave rise to that negative vote.

Within a period of no less than one month or more than three, the proponent shall once again present the proposal for consideration by the corresponding body, incorporating any modifications it considers appropriate. In that case, the amended proposal shall be considered approved if receives the affirmative vote of the absolute majority of the Member Countries.

Article 28.- Any Member Country that falls behind more than four quarters in the payment of its contributions to the General Secretariat or to the Andean Community Court of Justice may not exercise its right to vote in the Commission until it resolves that situation.

In such cases, the quorum for attendance and voting shall be computed according to the number of contributing countries.

Section D - The Andean Community General Secretariat

Article 29.- The General Secretariat is the executive body of the Andean Community and, as such, acts solely in accordance with the interests of the Subregion. The General Secretariat shall give technical support, when appropriate, to the other bodies and institutions of the Andean Integration System.

The General Secretariat shall be headed by the General Secretary. In performing his duties, the General Secretary shall rely on the Directors General, in accordance with the respective regulations. The General Secretary shall also enjoy the services of any technical and administrative staff needed to accomplish his duties. The General Secretariat shall express itself through Resolutions.

Article 30.- The Andean Community General Secretariat’s responsibilities are:

a) To ensure the application of this Agreement and compliance with the provisions that comprise Andean Community Law;

b) To carry out the tasks assigned to it by the Andean Council of Foreign Ministers and the Commission;

c) To formulate and put forward draft Decisions to the Andean Council of Foreign Ministers and the Commission, in accordance with their respective spheres of responsibility, and initiatives and suggestions to the enlarged meeting of the Andean Council of Foreign Ministers, aimed at facilitating or hastening the fulfillment of this Agreement, so that its objectives may be achieved within the shortest possible time frame;

d) To conduct studies and propose the necessary measures for applying the special treatments in benefit of Bolivia and Ecuador and, in general, those regarding the participation of the two countries in this Agreement;

e) To study and report annually to the Andean Council of Foreign Ministers and the Commission, on the results of the application of this Agreement and the achievement of its objectives, paying special attention to the fulfillment of the principle of fair distribution of the benefits of integration, and to propose pertinent corrective measures;

f) To perform the technical studies and coordination entrusted to it by other bodies of the Andean Integration System, together with any others it considers necessary;

g) To maintain permanent working relations with the Member Countries, in coordination with the national integration body appointed by each country for that purpose;

h) To draw up its annual working program, in which it shall give preference to the tasks assigned to it by other System bodies;

i) To promote periodic meetings of the national organizations responsible for economic policy formulation or execution and, particularly, those charged with economic planning;

j) To maintain working relations with the executive bodies of other regional integration and cooperation organizations, in order to strengthen their relationship and reciprocal cooperation;

k) To keep the records of the enlarged meetings of the Andean Council of Foreign Ministers and of the Commission, and to draw up a tentative agenda of their meetings, in coordination with the chairmen of those bodies;

l) To be the depository for the records of the meetings and other documents of Andean Integration System bodies and to certify their authenticity;

m) To publish the Official Gazette of the Cartagena Agreement;

n) To act as Secretariat for the Meeting of Representatives of the institutions that comprise the Andean Integration System; and,

ñ) To carry out all other responsibilities expressly assigned to it by Andean Community Law.

Article 31.- The General Secretariat shall operate on a permanent basis and its headquarters shall be located in the city of Lima, Peru.

Article 32.- The General Secretariat shall be headed by a Secretary General who shall be chosen by consensus of the Andean Council of Foreign Ministers for a five-year term of office and may be reelected a single time.

The Secretary General shall be a person with broad representation and acknowledged prestige, and must be a national of one of the Member Countries. He shall act only in the interests of the Subregion as a whole.

The Secretary General may not carry out any other activity during his term of office; nor shall he seek or accept instructions from any government, national institution or international organization.

If the office falls vacant, the Andean Council of Foreign Ministers, meeting in enlarged session, shall immediately proceed to appoint a new Secretary General by consensus. Until that time, the Director-General with the most seniority shall temporarily head the General Secretariat.

Article 33.- The Secretary General may be removed from office by consensus, at the request of a Member Country, only if, in the exercise of his duties, he commits the gross negligence foreseen in the General Secretariat Regulations.

Article 34.- The responsibilities of the Andean Community Secretary General are:

a) To act as the General Secretariat’s legal representative;

b) To propose initiatives in regard to the General Secretariat Regulations to the Commission or to the Andean Council of Foreign Ministers;

c) To hire and dismiss technical and administrative staff, in accordance with the General Secretariat Regulations;

d) To participate with the right to be heard in the sessions of the Andean Council of Foreign Ministers and the Commission and in their respective enlarged meetings, and, when invited to do so, in the meetings of other System bodies;

e) To present the draft annual budget to the Commission for its approval; and,

f) To present an annual report of the General Secretariat’s activities to the Andean Council of Foreign Ministers meeting in enlarged session.

Article 35.- The Secretary General, in consultation with the Member Countries and in keeping with the General Secretariat’s functional and organic structure, shall appoint the Directors-General. These persons shall be top-level professionals, appointed strictly in accordance with their academic background, suitability, reputation, and experience, and they shall each be responsible for a specific technical area.

The Directors-General shall be nationals of Member Countries and the Secretary General shall seek to ensure balanced subregional geographic distribution in their appointment. The appointment and dismissal of the Directors-General shall be governed by the General Secretariat Regulations.

Article 36.- In proceedings where the interests of two or more Member Countries are in dispute, the Secretary General shall enjoy the technical assistance of special experts, whose appointment and method of participation shall be determined according to the General Secretariat Regulations.

Article 37.- The Secretary General, when hiring technical and administrative staff, who may be of any nationality, shall bear in mind strictly the ability, competence, and reputation of the candidates and shall seek to ensure balanced subregional geographic distribution, provided that this is compatible with the preceding criteria.

Personnel shall be appointed and dismissed according to the criteria and grounds established in the General Secretariat Regulations, without prejudice to what the establishing Treaty of the Court of Justice and its amending protocols provide for.

Article 38.- The staff of the General Secretariat shall refrain from taking any action that may be incompatible with the nature of their duties and shall neither seek nor accept instructions from any Government, national institution or international organization.

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