Andean Ministers of Trade Agree on Program to Comply with Presidential Directives

Lima, March 9, 2002.

The Foreign Trade Ministers of the Andean Community agreed last night on a work program to comply with the Santa Cruz Presidential directives relating to the Andean customs union, the free trade zone, and a common agricultural policy.

With regard to the customs union, the Ministers of Trade made progress on defining the criteria for the application of a four-tier Common External Tariff (CET), the four levels being 0, 5, 10, and 20, as established by the Presidents. The Ministers requested the Secretary General to outline the bases for a proposal as soon as possible, to be analyzed by the AC Commission next April.

The objective is to make the necessary guidelines available for the successful negotiation of the Common External Tariff (CET), in as brief a period as possible, bearing in mind that, according to the Presidential mandate, the CET should be in application in Bolivia, Colombia, Ecuador, Peru, and Venezuela "no later than December 31, 2003".

Progress was also made on defining criteria regarding price ranges, and the Secretary General was entrusted with the task of developing the corresponding proposals to orient the coverage of agricultural and livestock produce.

As to the Presidential mandates regarding the free trade zone, the Ministers ratified the need to remove obstacles of any kind that may hinder smooth operations in this context, and they decided to perfect the mechanisms to facilitate meeting this objective.

The work program includes a series of meetings to achieve substantial advances, before the next presidential summit, in the harmonizing of corrective measures to be employed in case of distortions.

It also contemplates the development by the Secretary General of an inventory of obstacles to trade, and the submission of inventories referring to cases or products with quantitative restrictions and other kinds of restrictions currently in force, of which it has been notified.

Provisions have also been made for countries to report cases of administrative import procedures where they deem it appropriate to apply the principle of positive administrative silence; the consolidation of such cases by the Secretary General; the revision of Decisions currently in force, and the drafting of Proposals.

The Ministers of Trade complied with the Presidential directive to harmonize sanitary and phyto-sanitary requirements by approving new regulations on Farm Sanitation and Cosmetic Products, that will bring these standards into line with the latest global progress in these matters.

With a view to promoting the positive participation of economic agents in the integration process, the Ministers created an Ad Hoc Committee on Oleaginous Products, to be responsible for seeking concrete solutions to the problems encountered in this line. The Ad Hoc Committee will be responsible for making the competitive conditions more transparent and predictable, and especially for promoting the improvement of the competitiveness of the sub-region in relation to other countries.