Andean Trade and Economy Ministers to study tariff policy and FTAA and WTO negotiations

Lima, Oct. 26, 2001. The Andean Community Ministers of Trade and Integration will meet in Lima with their counterparts in the Ministries of Economy and Finance on October 29 and 30 to analyze the Common External Tariff (CET) and the joint strategy used in the negotiations conducted in the Free Trade Area of the Americas (FTAA) and the World Trade Organization (WTO).

The meeting, known as the Symposium for Reflection, was conceived as an open and informal discussion of these three basic aspects of the Andean integration process.

The CAN General Secretariat has drawn up a new proposed Common External Tariff applicable to the five countries, with lower levels and a smaller spread than at present.

The new proposal, which is being studied by official circles and the private sector in the Andean countries, should be defined by mid 2002, according to the commitment assumed by the subregion’s leaders at the Machu Picchu Presidential Summit, held on the occasion of Alejandro Toledo’s presidential inauguration.

The present CET, with basic levels of 5, 10, 15, and 20 percent, entered into effect in 1995 and was adopted by Colombia, Ecuador and Venezuela. Bolivia enjoys preferential treatment under which it applies only the levels of 5 and 10 percent, and Peru did not sign the agreement.

CAN General Secretariat sources pointed out that "the approval of the new tariff will contribute decisively to the consolidation of the customs union, which is a basic step toward the establishment of the Andean Common Market in 2005."

The two other topics to be reflected upon at the Andean Ministers’ Symposium refer to the subregion’s negotiations with third parties, in particular those being carried out in the FTAA with a single spokesmanship and the negotiations to be conducted in the WTO Ministerial Conference, scheduled for November of this year.

CAN officials underscored the importance of taking a joint stand in both forums in order to give the Andean Community a more prominent role on the international scene.

The Ministers of Trade and Integration will hold a meeting following the Symposium for Reflection, on Tuesday, October 30, at which they are expected to approve a Decision to establish equivalency in the processing of Community statistics.

They have also been asked to define aspects connected with the Inventory of Service Restrictions and the amendment of provisions relating to Animal and Plant Health and the Harmonizing of the Sanitary Registration of Cosmetics.