OCEAN TRANSPORTATION

In the area of ocean transport, the adoption of Decision 288 made it possible to eliminate reserved cargo at the Andean level, thereby reducing freight costs significantly and increasing the hold capacity available for trade in goods.

Subsequently, Decision 314 supplemented this Community legislation by setting down the policies for the development of the merchant marine in the Andean countries.  The purpose of this Decision is to harmonize ocean transport policies and enhance the competitiveness of enterprises working in that sector. 

In addition, Decision 390, which amended some of the articles of Decision 314, establishes the necessary mechanisms to enable the Member Countries to act as a community vis-à-vis third parties that commit discriminatory acts against subregional maritime transport enterprises.  In this connection, the regulations for Community implementation of the principle of reciprocity in ocean transport were approved through Resolution 422 of the Board of the Cartagena Agreement on August 5, 1996. 

On December 7, 2000, the Commission of the Cartagena Agreement approved Decision 487 on Maritime Guarantees and the Preventive Embargo of Ships in order to promote and strengthen the merchant marines in the subregion through up-to-date and harmonized legislation on maritime guarantees (naval mortgages and maritime privileges) and the preventive embargo of ships. The aim of this Decision is to give the Community a legislative framework that offers appropriate guarantees for investments in water transport. 

Decision 532, adopted in October 2002, amends article 1 of Decision 487 which defines ship or vessel, in order to extend the coverage of the benefits granted by that Community Decision to cargo or passenger carrying ships of over 500 G.R.T and to fishing vessels, oil exploration and production platforms, barges, floating dry docks, factory ships, tugs, dredgers and supply ships, among others.