Andean Community adopts new measures to liberalize trade in services

Lima, Oct. 31, 2001. In an important step toward the progressive liberalization of the sector with a view to the formation of the Common Market by the year 2005, the Andean Community countries approved an inventory of measures that restrict trade in services.

At the close of the Meeting of the Foreign Trade and Integration Ministers of the five Andean countries in Lima last night, approval was given to Decision 510 "Adoption of the Inventory of Measures that Restrict Trade in Services."

The new provision will permit citizens of one Andean country to provide a service in any of the other four subregional member countries without incurring the application of restrictive measures, except for those listed in the inventory, which will be gradually phased out between now and 2005.

The general idea of restrictive measures is based on the definition as such, in CAN Decision 439, of provisions that restrict access to the market or establish treatment that discriminates between nationals and aliens.

CAN Secretariat officials underscored the importance of Decision 510 by pointing out that "it represents a major advance toward liberalizing trade in services, which should be completed by the year 2005, together with the free circulation of goods, capital and people, in order for the Common Market to be in place as targeted by the Presidents."

In order to achieve this goal, the new provision provides for the CAN General Secretariat to propose to the member countries, within two months after it is put into effect, a working program for the progressive elimination of the restrictive measures that are listed in the inventory contained in Decision 510.

All local or regional measures that restrict access to the market and/or national treatment that CAN member countries still maintain and that are not included in the inventory in Decision 510 will be incorporated into the working program that the General Secretariat will draw up. They will be reported to each of the CAN member nations by December 31, 2002, at the latest. Any measures that fail to be reported by that date "will be liberalized automatically."