Lima, October 12, 2006.- The Andean Community Member Countries today started a meeting in Lima to define the Starting Point (SPTR) for Tariff Reduction on products coming from the European Union, in order ensure their uniform tariff treatment and thereby open the way for the negotiation of an association agreement between the CAN and the EU.   

Defining the sole treatment of goods imported from the EU is considered crucial to the future negotiation, as are other efforts stemming from the CAN-EU joint assessment exercise, namely: simplifying and harmonizing customs regimes, adopting decisions regarding services and perfecting the Community system for the international road transportation of goods.   

It is expected that at today’s and tomorrow’s meeting --the second of the meetings held by the Andean countries to address this issue-- the working methodology will be discussed and defined, the lists of non-sensitive products will be reviewed in order to determine the SPTR, and a work plan will be drawn up for the next two months. 

The reason for defining the SP is to enable European goods to benefit from the enlarged Andean market by paying the same tariff, regardless of the Andean port of customs entry used.  

Two elements will be combined for this purpose: the base tariff reduction rate and the tariff reduction lists, so that European products crossing Andean borders at any time will pay the same tariff.

Other priority tasks agreed by the CAN and the EU in Brussels last July will be advanced as the SPTR is being defined.  As a result, the schedule of activities for this quarter provides for meetings not only on the Starting Point for Tariff Reduction, but also on customs matters, International Road Transportation and services.  

Those efforts "will help deepen regional integration in the Andean Community and enable the future Association Agreement to mutually benefit the two regions,” as the joint minutes signed by the CAN and EU in Brussels state.