Free Trade

Agreement

Colombia and

Northern Triangle

Importance of the

agreement for Colombia

The negotiation of the FTA with Guatemala, El Salvador and Honduras

answered the internationalization strategy of the Colombian economy.

Its goal of diversifying markets, opening new opportunities for Colombian

businesses in trade and investment.

Facilitate and increase trade and investment in services, also incorporating as

important as public procurement markets.

This Agreement provides stability, transparency and predictability, should become the main tool for attracting FDI contributes to:

• The generation of employment

• Access to new technologies

• Growth and development of the four participating countries.

Existing and future investments will be covered by FTA when it enters into force,being protected under international standards of non-discrimination, protectionand treatment in respect of investment.

Importance of the

agreement for Colombia

Important Dates:

June 2006: Colombia's President and Guatemala’s President agreed to negotiate a FTA that contributes to the complimentarily of the economies of both countries.

June 5 to 9, 2006 in Bogota, Colombia. The topics covered were:

Market Access

Non-agricultural goods

Trade Remedies

Services

Trade facilitation

Sanitary Measures

Phytosanitary

Institutional Affairs Dispute Technical Barriers to Trade Rules of Origin Agriculture Procurement Investment

Important Dates:

June 5, 2006: Colombia and Guatemala signed agreement

and promotion and protection of investments.

July 11 to 14, 2006: Balance II round Colombia free trade agreements with Central America's Northern Triangle which concluded in Guatemala.

August 18, 2006: III round of negotiations with Northern Triangle of Central America concluded in Medellin, Colombia.

Important Dates:

September 11, 2006 in Colombia: Conforming Measures (services and investment)

September 22 to 29, 2006 in Tegucigalpa, Honduras IV Round of negotiations with Colombia.

November 3, 2006 in San Salvador, El Salvador. V Round of negotiations with Colombia.

The Bureau of Industry achieve to agree on immediate, about 40% of the tariff.

Important Dates:

December 8, 2006 in Antigua, Guatemala. The balance of the sixth round of negotiations.

February 19 to 23, 2007 in Medellin, Colombia.

The comprehensive progress of negotiations reached 90%.

The remaining 10% is the hardest, because it is where the greatest sensitivity to the parties, especially market access in both agriculture and industry and rules of origin.

Important Dates:

March 16, 2007 in Sonsonate, El Salvador. Completion of negotiations aftersix rounds of negotiations and two meetings of the working groups ofmarket access was achieved:

The agreement in 72% of the products of the tariff in the agricultural field.

In the industrial field, the treaty included more than 75% of the tariff.

Premiered 'Evolutionary clause' which allows subsequent Treaty revisionsto inclusion of new products.

Important Dates:

August 9, 2007 - Colombia and the North triangle subscribe TLC.

The ministers of the signatory countries expressed that in the short term,which could be added the other Central American countries.

Within trade policy that advances the Colombian Government is movingtowards the establishment of a continental free trade area.

http://www.sice.oas.org/

In Force

The Government of Colombia sent the senate the text of the FTA withColombia and northern triangle on February 20, 2008.

The committees of the senate and house of representatives of Colombiaapproved the deal on 07 May and 4 June 2008, respectively.

The legislative assembly of El Salvador approved the FTA on August 21,2008. In September 2009, the Congress of Guatemala ratified the FTA.

Two months later, on November 13, 2009, entered into force betweenGuatemala and Colombia FTA.

For El Salvador and Colombia, the treaty begins its effect on February 1,2010.

The March 27, 2010, becomes effective the FTA between Honduras andColombia.

http://www.sice.oas.org/

In Force

Commercial ExchangeImport and Export

http://www.mincit.gov.co/publicaciones.php?id=47

Colombian principal exportsproducts

Reduction Tariff Schedule in the partner country

Pork

Rice

Sugar

Cars/Vehicles

Leather Manufacturing

Reduction Tariff

Leather Manufacturing Category (B5) BASE RATE Year1 Year2 Year3 Year 4 Year 5

15% 12% 9% 6% 3% 0%

Sugar and Pork Category (e): Be exempt from any tariff reduction commitmen

Rice for Salvador and Honduras Category (a) 5% base rate now

Guatemala for category (e): excluding of the reduction program (the base rate is not consolidate)

Reduction Tariff

CAR CATEGORY (B5)

CRANE TRUCK

BASE RATE Year1 Year2 Year3 Year4 Year5

15% 12% 9% 6% 3% 0%

CARS BARRADERA

BASE RATE Year1 Year2 Year3 Year4 Year 5

5% 4% 3% 2% 1% 0%

Reduction Tariff Schedule:

A: Immediate

B: 5 years

C: 10 years

D: 15 years

F: 20 years

E:: Excluded goods

G: Fixed preferences from the PPAs.

Agricultural Tariff Elimination

Immediate: About 53% of the products.

Up to 5 years: About 67% of products.

Up to 10 years: About 86% of the products.

http://www.tlc.gov.co/publicaciones.php?id=6845

Industrial Tariff Elimination

Immediate: 53% duty-free access to El Salvador and Guatemala. Honduraswill be the 55% in textile sector.

Up to 5 years: 63% products duty-free access in El Salvador and Guatemala.79% in Honduras.

Up to 10 years: About 70% tariff free in Guatemala and El Salvador. InHonduras about 87%.

http://www.tlc.gov.co/publicaciones.php?id=6845

Sensitive Products

Exclusions are reciprocal and were proposed by the countries of northerntriangle because of its production sensibilities against Colombia:

Meat, dairy, beans, coffee, corn, rice, oilseeds, sugar, chocolates, cosmetics,paints, fertilizers, footwear, family cars.

Textiles and clothing was negotiated only with Honduras:

Evolutionary clause seeks to include in the program of relief goodsremoved.

http://www.tlc.gov.co/publicaciones.php?id=6845

Thanks