Black Friday Sale! Save huge on InvestingProGet up to 60% off

UPDATE 1-EU reaches trade deal with Colombia, Peru

Published 03/01/2010, 10:11 AM

(Adds EU confirmation, details, background)

By Bate Felix

BRUSSELS, March 1 (Reuters) - The European Union reached a free trade deal with Colombia and Peru on Monday that will fully liberalise commerce in some sectors between the 27-country bloc and the two Latin American nations, the EU executive said.

The agreement will provide new market access to exporters from both sides and includes manufactured products, agricultural goods, services and investment, the European Commission said.

"The European Commission today concluded trade talks with Peru and Colombia in view of the signature of a multi-party trade agreement between the EU and Andean countries," the Commission, in charge of EU trade policy, said in a statement.

"The agreement provides for total liberalisation of trade in industrial products and fisheries including, at entry into force, 80 percent liberalisation of industrial products with Peru and 65 percent with Colombia," it said.

The EU is the second-largest trading partner of the Andean region after the United States, with total trade worth nearly 18 billion euros ($24.3 billion) in 2008.

The deal is part of an effort by the EU to reach a free trade agreement with the Andean Group of countries, which includes Ecuador and Bolivia as well as Colombia and Peru and represented 0.6 percent of EU world trade in 2008.

Ecuador walked out of the talks in 2008 after raising concerns on several issues including EU banana tariffs, government procurement, investment, labour rights and social guarantees for Ecuadorian migrant workers in the EU.

EU imports from Andean countries are primarily agricultural products representing 47.5 percent, while fuels and mining products make up 41.1 percent.

The bulk of the EU's exports to the region is manufactured goods, representing 89.6 percent, notably machinery, transport equipment and chemical products.

The accord reached early on Monday followed nine rounds of talks. It must be initialled by the parties -- possibly at an EU-Latin America summit to be held in May in Madrid -- before being voted into law by parliament. (Editing by Dale Hudson)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.