THE COMMISSION OF THE CARTAGENA AGREEMENT,

HAVING SEEN: Chapter XI of the Cartagena Agreement, the Act of La Paz, signed by the Presidents of the Member Countries on the occasion of the IV Andean Presidential Council held on November 29 and 30, 1990, and Proposal 233 of the Board;

WHEREAS:

The Strategic Design for the Orientation of the Andean Group points out that "there is a noticeable general trend toward economic opening aimed at, among other things, exposing the productive system to the rigors of competition and inducing increased levels of competitiveness".

A trend toward liberalization of trade and external opening is also to be observed in the Andean countries;

The Strategic Design "underscores the execution of policies and actions aimed at improving, broadening and modernizing the capacity of infrastructure and the rendering of transport and communication services, whose shortage and high costs today are impeding the rapid and secure interlinkage of the centers of production and consumption."

In the Act of La Paz, signed at the IV Andean Presidential Council, the Presidents of the countries of the Subregion decided that "with a view to improving the competitiveness of foreign trade, they recommend to the Board of the Cartagena Agreement that it study the matter and propose for adoption at the next meeting of the Andean Presidential Council a policy to eliminate reserved cargo for shipping within the Subregion and vis-à-vis third parties";

The criterion of freedom in the provision of international shipping services should lead to the elimination of the restrictions established in Member Countries.

Article 2.- The Member Countries shall modify their, within a period of ninety (90) calendar days, their national rules and regulations in order to eliminate:

b) The allocation of routes within the Subregion; and

c) Systems used by the respective authorities to set or authorize intra-subregional freight charges. These shall be replaced by simple registries of shipping rates.

Article 3.- The Board of the Cartagena Agreement may, at the request of any of the Member Countries and after making the corresponding evaluation, temporarily apply at a subregional level or authorize a Member Country to do so restrictions, exclusions from cargo traffic or reservation of cargoes or any other measures deemed advisable, to enterprises or ships flying flags of other countries that apply restrictive or discriminatory regulations or practices against ships owned, chartered or operated by shipping companies of Member Countries.

Article 4.- This Decision shall become effective on the date of its publication in the Official Gazette of the Cartagena Agreement.

TEMPORARY PROVISION: Pursuant to the stipulations of Article 3, clause h), Article 4 and the last paragraph of Article 7 of the Cartagena Agreement, which provide special treatment for Bolivia it shall comply gradually with the freedom of access to cargo referred to in this Decision up until December 31, 1992, in the following way: fifty percent of the reserved cargo stipulated in its national legislation starting on December 31, 1991 and the full amount beginning on December 31, 1992.

Signed in the city of Lima, Peru, on the twenty-first of March of nineteen ninety-one.