Colombia WT/TPR/S/18
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II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES
(1) Introduction
1. Since theprevious review ofColombia, wide-ranging changes havebeenintroduced inthe
legalandinstitutional framework fortrade policies. These include theadoption ofanewConstitution
andthecreation ofnewagencies fortrade policy formulation andexport promotion, newcommitments
under theUruguay Round andtheconclusion ofanumber ofregional trade agreements. Colombia
hasbeeninvolved inseveral multilateral trade disputes asacomplainant orthirdparty, asdiscussed
below.
2. Thepresent Government ofPresident Ernesto Samper Pizano, elected on19June1994, took
office on7August 1994.
(2) General Framework
3. Colombia isaunitary republic. ThenewConstitution, effective from 6July1991, sought
torationalizeandlimitthepossibilityofrulebyemergencydecreebyintroducinggreaterdecentralization
andincreased Congressional checks onthepower oftheCentral Government. Italsostrengthened
individual rights andthejudicial system andreduced thesizeoftheCongress. Inaneffort tolegitimize
andmodernize thepolitical system, theConstitution alsoopened thewayforthecreation ofnewparties
other thanthetraditional Conservatives andLiberals.1
4. Executive power isinthehands ofthePresident, whoiselected byuniversal suffrage fora
non-renewable four-year term.2ThePresident appoints theCouncil ofMinisters. Ministers neednot
bemembers ofthelegislature orofthePresident 'spolitical party.
5. LegislativepowerisvestedinabicameralCongress,composedofa102-memberSenate(Senado
delaRepública )anda164-member House ofRepresentatives (Cámara deRepresentantes ).Senators
andRepresentatives(atleasttwofromeachDepartment)areelectedsimultaneouslybyuniversalsuffrage
forafour-year term. TheCongress canimpeach cabinet ministers. Indigenous andminority groups
occupy twoseatsintheSenate anduptofiveintheHouse ofRepresentatives. ThenewConstitution
alsohasmade provision forparticipation ineachhouse formembers offormer guerilla movements
insearch ofapeace settlement. Following elections on13March 1994, thepresent Congress was
installed on20Julyofthesame year.
6. TheJudicial Branch isdivided intoconstitutional, ordinary andadministrative jurisdictions,
aswellasother special jurisdictions suchasthose forindigenous people. TheConstitutional Court
stands attheheadoftheconstitutional jurisdictions, withninemembers elected bytheSenate foran
eight-year period. Thehighest ordinary court, theSupreme Court ofJustice, isdivided intocivil,
criminal andlabour chambers, while administrative disputes aresettled intheCouncil ofState. Judges
oftheSupreme Court andtheCouncil ofStateareappointed fornon-renewable eight-year terms from
listssubmitted bytheHigher Council ofJudiciary.
1Europa Publications Limited (1995), p.199; EIU(1995a), p.5.
2Articles 190and197oftheConstitution.WT/TPR/S/18 Trade Policy Review
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7. Under thenewConstitution, Governors ofDepartments, regional representatives, mayors and
other localgovernment members aredirectly elected forathree-year term. Adefined percentage of
central government taxrevenue isadministered bythedepartments andmunicipalities. Departmental
andmunicipal taxes arealsolevied andareprotected bytheConstitution.3
(3) Structure ofTrade Policy Formulation
(i) Legislative andExecutive branches ofGovernment
8. TheCongress maydebate, approve, interpret, amend andrepeal laws. Billsmaybeintroduced
bymembers orstanding committees (comisiones constitucionales permanentes )oftheCongress, as
wellasbytheExecutive, theHigher Council ofJustice, theConstitutional Court, theSupreme Court
ofJustice, theStateCouncil (Consejo delEstado ),theNational Electorate Council (Consejo Nacional
Electoral),theProsecutorGeneral(ProcuradorGeneraldelaNación),the
Comptroller-General (Contralor General delaRepública )orbyelectoral initiative (bynotlessthan
5percentofvoting citizens or30percentofmunicipal orregional representatives).4Billsmustbe
debated twice ineachchamber ofCongress. After passing bothchambers, billsareenacted onthe
approval oftheGovernment andsignature bythePresident. Laws maybeamended orrepealed only
bynewlaws. TheGovernment mayreturn billspassed byCongress either onsimple objection or
when theyareconsidered unconstitutional. Inthefirstcase,billsmayagain beapproved byCongress;
inthesecond, theConstitutional Court maypronounce thattheprovisions areincompliance withthe
Constitution. IfthePresident thenrefuses toenact thelaw,thePresident oftheCongress assumes
thisresponsibility.5
9. TheExecutive (thePresident astheheadoftheGovernment) negotiates international economic
andtrade treaties, which mayenter intoforce immediately onaprovisional basis whenever adopted
within theframework ofaninternational organization. Toberatified, Congressional approval and
apositive opinion oftheConstitutional Court arerequired.6
10. TheNational Council ofEconomic andSocial Policy (Consejo Nacional dePolítica Económica
ySocial ,CONPES) defines andco-ordinates theobservance ofgeneral policy guidelines forthe
specialized government economic andsocial agencies; italsostudies andformulates recommendations
onthenational development planelaborated bytheNational Planning Department. In1991, aHigher
3Article 362oftheConstitution. Forexample, departmental taxes include: thestamp taxonautomotive
items; theconsumption taxonliquors, beer, cigarettes, tobacco andgasoline; theslaughtering tax(impuesto
alsacrificiodeganadomayor);thetaxonlotteryprizes(impuestosobreelpremiodelasloterías;thedepartmental
development tax(impuesto deprodesarrollo departamental );theregister tax(impuesto deregistro )andthestamp
tax(impuesto deestampilla ).Municipal taxes consist of:thelandtax(impuesto predial );thetaxonindustry
andtrade; thetaxontraffic andtransit; thetaxonparks andforestation; thetaxonpublic performances (e.g.,
theatre); thetaxoncasinos; theslaughtering taxforsmall animals (sacrificio deganado menor );thetaxon
gambling (juegos deazar);andthetaxonutilization ofpublic space (utilización delespacio público ).
4Articles 154to157oftheConstitution. Under theConstitution, theExecutive hastheexclusive right to
introduce billsofframework trade laws(leyes marco )which contain general guidelines, oramendments tothe
customs régime (including tariffs). Inother words thelegislative branch hasnorights inthisarea.
5Articles 166to168oftheConstitution.
6Articles 150, 189and224oftheConstitution.Colombia WT/TPR/S/18
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Council forForeign Trade (Consejo Superior deComercio Exterior )wascreated toadvise the
Government onforeign trade matters, replacing theprevious Foreign Trade Council.7
11. TheMinistry ofForeign Trade (Ministerio deComercio Exterior )ischarged withconducting,
co-ordinating, implementing andmonitoring tradepolicy affecting goods andservices, andtorepresent
theGovernment innegotiations oninternational tradeandregional integration aswellasininternational
trade fora.8ItsForeign Trade Institute (Instituto Colombiano deComercio Exterior ,INCOMEX) has
themain responsibility fortrade policy implementation. Policy formulation, co-ordination and
implementation fortradeinservices iscarried outbyanumber ofministries inco-operation withother
public agencies (Table AII.1 andChapter V).
12. Under thenewConstitution, aseven-member autonomous Management Board (Junta Directiva )
wascreated attheCentral Bank ofColombia (Banco delaRepública deColombia )which isnowan
independent entity. Itstasks include theco-ordination ofmacroeconomic policies aswellasthe
formulation offoreign exchange, monetary andcredit policies.
(ii) Advisory bodies
13. Noformal, overall periodic review oftrade policy isoperated byanyindependent body.
However, theHigher Council forForeign Trade consults extensively withbusiness interests within
theJointCommittee onForeign Trade (Comisión Mixta deComercio Exterior ),established in1967,
onpolicy formulation, implementation andmonitoring/follow-up matters.
(4) Trade Policy Objectives
(i) General trade policy objectives
14. Until 1990, Colombia 'strade policy objective wastorationalize thepattern ofprotection and
theincentives fornon-traditional exports. Anaccelerated tradeliberalization programme wasinitiated
in1990.Colombia'scurrenttradepolicyobjectivesaretoincreasecompetitiveness,diversifyproduction
andpromote integration intotheworld economy. Priorities include adjustment ofthecustoms tariff
withaviewofraising theeffectiveness oftariffescalation oncertain items, aswellastheimprovement
anddiversification offinancial support toexporters.
15. Regional andbilateral agreements remain important elements intheforeign andtrade policy
framework. These areseenasmeans todiversify export markets, strengthen themarket opening process
andmaintain peace intheregion. Policy objectives inthisareacomprise strengthening andfulluse
ofexisting schemes, expansion ofregional integration within Latin America, theCaribbean andthe
7TheHigher Council, chaired bythePresident, iscomposed oftheMinisters ofEconomic Development,
Foreign Trade, External Relations, Finance, Agriculture, andMines andEnergy aswellastheHeads ofthe
National Planning Department, theCustoms, theGovernor (Gerente )oftheCentral Bank (i.e., Bank ofthe
Republic) andthePresident oftheForeign Trade Bank ofColombia (Banco deComercio Exterior deColombia ,
BANCOLDEX). More information ontheestablishment andactivities ofBANCOLDEX isfound in
ChapterIV(3)(x).AdviserstotheHigherCouncilandtheDirectorofINCOMEXmaytakeactivepartinmeetings
buthave novote.
8Inthiscontext, aConsultative Committee (Comisión Asesora deRelaciones Exteriores ),including the
democratically-elected former Presidents andeight Congress members, makes recommendations tothePresident
oftheRepublic ontheformulation offoreign policy, including thenegotiation andconclusion ofagreements.WT/TPR/S/18 Trade Policy Review
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PacificRim,andaccessiontotheNorthAmericanFreeTradeArea(NAFTA).9Colombiaisalsoplaying
anactive rôleinthenegotiations ontheFreeTrade Area fortheAmericans.
(ii) Sectoral trade policy objectives
16. Initstrade liberalization programme, Colombia hasmade aneffort todesign trade policy
instruments thatfoster sectoral development inaneutral manner. Nevertheless, certain activities such
asagriculture, foodprocessing andtheautomotive industry benefit fromspecific protection orsupport
through measures such astheAndean Price Band System, domestic absorption quotas and
local- orregional-content requirements (Chapters IVandV).Inother sectors, suchasmining and
hydrocarbons, direct State intervention remains.
(iii) TheUruguay Round
17. Colombia wasanactive participant intheUruguay Round, withspecific objectives inanumber
ofareas, including agriculture (reform ofmarket access, internal support measures andsubsidies,
prohibitionofexportsubsidies),tropicalproducts(completeliberalization),tariffs(cutsforitemsexcluded
fromGSPschemes), trade-related intellectual property rights (special treatment fordeveloping countries
dependent ontechnology imports) andservices (flexible framework fordeveloping countries). Inthe
lightofthe"standstill" commitment, itexpressed concern overthethreat bytheUnited States touse
unilateral retaliation under Section 301,apractice which itconsidered tobeinconsistent withthe
GATT framework andtheprinciples oftheUruguay Round. Theincrease oftheselective internal
taxoncoffee, cocoa andproducts inItaly, aswellastheestablishment oftheEC'scommon market
organization forbananas were alsoraised byColombia intheUruguay Round Surveillance Body.10
18. ColombiaratifiedtheMarrakeshAgreementon15December1994,becomingafoundingmember
oftheWTO on30April 1995.11According totheauthorities, theconclusion oftheUruguay Round
andtheestablishment oftheWorld Trade Organization created aninternational setting favourable to
deeper integration oftheColombian economy inworld markets. However, theresults inagriculture
were seenasfalling farshort oftheaimssetatPunta delEste. Colombia alsofeltthatintegration
oftextile trade intomultilateral disciplines, which presented agreat challenge tosmall exporting
countries, should besupplemented bythelowering oftariff barriers, especially intheindustrialized
countries.
19. Regarding theWTO agenda, Colombia hasexpressed support forsustainable development,
better working conditions andsocial justice; inthiscontext, ithasstated itsconcern about thepossible
useoflegitimate issues suchasenvironmental andworkers 'rights protection tosetupnewobstacles
totrade.12Inthecontext oftheWTO Committee onTrade andEnvironment, Colombia hasspoken
onissues relating tothetransparency ofrulesandmechanisms, aswellasharmonization between the
9More details onColombia 'sregional integration objectives arecontained inTable AII.2.
10MTN.SB/16, 17July1991; MTN.SB/17, 19November 1991; MTN.SB/19, 13July1993.
11Law 170, 15December 1994; WT/L/113, 10January 1996.
12MTN.TNC/MIN (94)/ST/83, 14April 1994.Colombia WT/TPR/S/18
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TRIPS Agreement andIPR-related Multilateral Environmental Agreements (MEAs) such asthe
Biodiversity Convention.13
20. Colombia hasmade specific commitments inthenegotiations ontrade infinancial services;
itparticipates inthose onbasic telecommunications andmaritime transport services (Chapter V).
21. Colombia,aCairnsGroupcountry,hostedtheGroup'smeetinginJune1996.Ministersdecided
toemphasize theneedformonitoring theimplementation oftheUruguay Round commitments atthe
WTO Singapore Ministerial meeting ofDecember 1996. They alsoagreed toprepare anagenda for
thenextround ofmultilateral trade negotiations.14
(5) Trade Laws andRegulations
22. Theprovisions ofinternational agreements ratified andpublished intheOfficial Journal (Diario
Oficial )areimplemented directly, supersede existing domestic legislation andcannot beaffected by
subsequent laws. Andean Group Decisions andResolutions havesimilar status butdonotrequire
legislative approval; theyareimplemented afterpublication intheOfficial Gazette oftheCartagena
Agreement (Gaceta Oficial delAcuerdo deCartagena ).Theprovisions ofWTO Agreements are
constitutionally superior tothose ofAndean Group Decisions.
23. TheWTO Agreements havebeenincorporated intothenational legislation andcan,therefore,
bedirectly invoked before thecourts, including theConstitutional Court. They havenotbeendirectly
invoked todate.
24. TheWTOAgreementsnowsupersedepreviouslegislationnotinconformitywiththeirprovisions.
However, implementing lawsorregulations havestilltobeissued inanumber ofareasincluding import
licensing procedures, technical standards, health andsanitary measures, safeguards, anti-dumping and
countervailing measures, intellectual property, andrestrictions ontrade inagriculture andservices.15
In1994, regulations onpreshipment inspection wereimplemented (Chapter IV)while Uruguay Round
commitments intheareaofagriculture arestilltobeadopted; nomodifications havebeenmade to
thelegislation onservices andtheprotection ofintellectual property rights.
25. Under theConstitution, theoverall direction oftheeconomy isinthehands oftheState, which
canestablish mandatory legislation inareas suchastheexploitation ofnatural resources, landuse,
production, distribution, utilization orconsumption ofgoods andservices.16Economic freedom is
guaranteed andprivate initiatives areprotected. Nevertheless, measures restricting economic freedom
maybeestablished todefend social interests, theenvironment andthecultural heritage. Monopolies
aregenerally prohibited, except where theirprofits aredestined toserving public orsocial interests.
TheStateisobliged toprotect foodproduction andpromote allsupport activities, including agricultural
credit. Broadcasting isregarded asapublic service andissubject toStateadministration andmonitoring.
13WT/CTE/M/2, 8May 1995; WT/CTE/M/3, 18July1995. Colombia hassigned allmajor environmental
treaties inrecent years andhasbeen taking action fortheir implementation (Chapter (IV)(4)(viii)).
14ElTiempo, 18June 1996.
15Ministerio deComercio Exterior (1995b), p.61.
16Articles 65,66,75to77,227, 333and334oftheConstitution.WT/TPR/S/18 Trade Policy Review
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26. Nobasic trade lawassuchexists inColombia. Trade policy guidelines arecontained inthree
framework laws, themost recent dating from 1991.17New lawspromulgated since 1991 cover
government procurement, intellectual property rights, transport services, certain professional services,
mobile telephone services, financial services, health services, andenvironmental protection.
Implementationoftradelegislationismainlycarriedoutbydecreesorresolutions,issuedbyGovernment
institutions, agencies orthePresident. These texts, which incertain cases canbeactsofcommittees
(e.g., oftheImports Committee), arefrequently usedtoclarify, amend orexpand existing provisions.
27. Alllegislation ispublished intheOfficial Journal (Diario Oficial )oftheMinistry oftheInterior,
except forimplementing decrees andresolutions issued byministries andtheiragencies, which are
published inthegazette (gaceta )oftheissuing ministry.
(6) Trade Agreements andArrangements
(i) Multilateral agreements
28. Under theAgreement Establishing theWTO, Colombia assumed, aspartoftheSingle
Undertaking, allcommitments under theMultilateral Trade Agreements. Italsosigned onePlurilateral
Trade Agreement, theInternational Bovine Meat Agreement. Atpresent, Colombia isconsidering
whether toadhere toother plurilateral trade agreements.18
29. Since 1971, Colombia hasbeen abeneficiary under various GSP(Generalized System of
Preferences) schemes. Theauthorities consider thatthose oftheEU,theUnited States, Japan and
Canada arethemostimportant forColombian exports. Nevertheless, itisbelieved thatthese schemes
(except fortheextended GSPtreatment bytheEU,discussed below) exclude, orprovide limited
preferential treatment toColombia 'smain agricultural andindustrial exports.
30. Asof2July1992, certain Colombian exports totheUnited States enjoy increased GSPbenefits
under theAndean Trade Preference Act(ATPA), inforcesinceDecember 1991foraten-year period.19
Duty-freetreatmentisextendedtoallproducts,exceptforsugar(underNANDINAheading17.01.11.03),
cotton, textiles andapparel (i.e.,other thanthose made ofsilkandvegetable fibres which arecovered),
footwear (other thansomepartsandwaste), petroleum andpetroleum products, certain leather products,
some watches andwatch parts, canned tunaandrum.20Leather products, which wereexcluded from
17Twoarepartly repealed (Decree-Law 444of1967, Law48of1983) while theLaw 7a(Framework Law
onForeign Trade, LeyMarco deComercio Exterior )of1991 isfully inforce.
18These are: theAgreement onTrade inCivil Aircraft, theAgreement onGovernment Procurement and
theInternational Dairy Agreement. Theplurilateral trade agreements arebinding onlyonthose WTO Members
which have accepted them.
19Other ATPA beneficiaries areBolivia, Ecuador andPeru. More information onATPA iscontained in
TPRM reports ofBolivia, Peru andtheUnited States.
20Toenjoy improved access treatment totheU.S.market, Guaranteed Access Levels (GAL) forcertain textile
andclothing items canbebilaterally negotiated. Colombia hasrecently done so(Chapters IVandV).More
information ontheutilization ofGAL facilities canbefound intheTPRreport onCosta Rica (WTO, 1995a).Colombia WT/TPR/S/18
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thescheme, arebeing progressively phased-in bymeans of20percenttariffcutsspread overfiveyears
from 1992; thefinalpreferential ratewillnotbelessthan2.5percent.21
31. TheUnited States hasconsidered "decertifying"22Colombia which could leadtothesuspension
ofATPA benefits fortheperiods 1994, 1995 and1996; its"decertification" wasfinally decided on
1March 1996.23In1993, Colombia wasthemain beneficiary oftheATPA preferences, supplying
90percentoftotalexports which benefited from thescheme.24In1995, Colombian exports under
ATPA preferences wereestimated atUS$805 million orapproximately onefourth ofestimated total
exports totheUnited States; thisshare hasalmost doubled since 1991.25Asaresult ofUStariff
reductions inthecontext oftheUruguay Round, itwasestimated thatATPA preferences forColombia
would beprogressively eroded by42percentinthesix-year period following theentry inforce of
WTO commitments.26
32. Since November 1990, theEUhastemporarily extended GSPtreatment toColombia andother
Andean Group countries engaged inthefightagainst illegal drugtrafficking andproduction.27The
scheme isrenewed every fouryears andisexpected tolastuntil2004. Fortheperiod 1995 to1998,
itconsists offullsuspension ofthecommon customs tariff duties onEUimports ofcertain industrial
goods (e.g., textiles andclothing, cotton towels, leather manufactures, footwear). Similar benefits
cover certain agricultural items (e.g., green coffee, coffee extracts, flowers, tobacco, tropical fruit
juices) until31December 1996. In1995, Colombian exports under thescheme were estimated at
US$1.7 billion or66percentoftotalexports totheEU;thisshare hasgrown byanoverall 30percent
since 1991.28Colombian authorities consider thattheextension ofthescheme tothenew
EUmembers(Austria,FinlandandSweden)has,byreducingtariffprotectioninthesecountries,assisted
21SimilartermsaffectitemsoriginatinginCBERA(CaribbeanBasin)beneficiarycountries(GATTdocuments:
L/7304, 10November 1993; C/RM/S/45, 19January 1994, p.42).
22Certification procedures, introduced in1986, consist ofcertifying thatillicit drugproducing andtrafficking
countrieshavefullyco-operatedortakenadequatemeasurestomeet theobjectivessetbythe1988UNConvention
onNarcotics. Procedures arecarried outonanannual basis andthedecision istaken on1March ofeachyear
(ElTiempo ,12February 1996). Ifacountry isdecertified, sanctions canbeimposed intheareaofeconomic
and/or trade co-operation withtheUnited States. InthecaseofColombia, these could, inter alia,mean: the
suspension ofATPA preferences andoffinancial assistance (about US$14 million peryear); negative voting
forloanapproval oftheUnited States inseveral international financial institutions (e.g., IMF, theInter-American
Development Bank); lossofaccess ofUSexporters toEximbank 'sexport finance forshipments toColombia
(ElTiempo ,1March 1996).
23Latin American Weekly Report, 14March 1996.
24Ministerio deComercio Exterior (1995b), p.56.
25Data supplied bytheDepartamento Administrativo Nacional deEstadística (DANE).
26Ministerio deComercio Exterior (1995c), p.66.
27WT/TPR/S/3,30June1995,p.p.29-30;MinisteriodeComercioExterior(1994),pp.60-62;ECRegulations
3281/94 and3282/94.
28Data supplied byDANE.WT/TPR/S/18 Trade Policy Review
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exports ofitems suchasflowers, textiles andclothing.29According toestimates based on1988 trade
figures, theimplementation ofUruguay Round tariffcommitments bytheEUmayerode thescheme 's
preferential margins byover38percent.30
33. Colombia isinvolved inthesecond round ofnegotiations under theAgreement establishing
theGlobal System ofTrade Preferences (GSTP). Although itparticipated inthefirstRound ofGSTP
negotiations in1988, ithasnotyetadhered totheagreement because ofdomestic procedural delays.31
However, itsaccession protocol wasadopted bytheCommittee ofparticipants totheGSTP on
31May1996, andColombia plans tosignthisprotocol shortly.
34. Colombia adopted theAgreement Establishing theCustoms Co-operation Council (now the
World Customs Organization) in1992.32Itisamember oftheUnited Nations, theWorld Bank, the
International Monetary Fund andtheInternational Maritime Organization (IMO), aswellasanumber
ofregional bodies including theInter-American Development Bank(IDB), theOrganization ofAmerican
States (OAS) andtheSELA.
35. Colombia isalsoasignatory totheInternational Coffee Agreement, theInternational Cocoa
Agreement, theInternational Tropical Timber Agreement, and,asdiscussed earlier, toanumber of
recentlynegotiatedenvironmentaltreaties(ChapterIV).Itisalsoamemberofsomeregionalcommodity
producers 'groups, including theLatin andCaribbean Sugar Producers Group (GEPLACEA) andthe
Union ofBanana Exporting Countries (UPEB) aswellastheAssociation ofCoffee Producing Countries
(ACPC).
(ii) Regional agreements
36. Since theprevious Trade Policy Review, Colombia 'sregional commitments haveexpanded
greatly (Table AII.2), toinclude bilateral trade agreements withChile33andPanama aswellas
participation intheGroup ofThree, CARICOM andtheAssociation ofCaribbean States. Inrecent
years merchandise trade (especially imports) withLatin American partners, particularly those ofthe
Andean Group, hasgrown rapidly (Chapter I).
29Ministerio deComercio Exterior (1995b), p.58, estimates bySistema Económico Latinoamericano (SELA).
30Ministerio deComercio Exterior (1995c), p.67.
31Inthefirstround ofGSTP concessions negotiations withMorocco andTunisia, itwasagreed toreduce
applied dutyratesonsixeight-digit NABANDINA tariff items (including coriander seeds, olive oil,phosphoric
anhydride andacid) byanaverage of30percent(GSTP/MM/BELGRADE/3/Add.2; Ministerio deComercio
Exterior (1995b), p.59).
32Law 10,17July1992.
33Between 1991 and1995 theshare ofpreferential tototal exports toChile hasrisen by27percentto
90percentorUS$125 million. Forthisperiod, asimilar trend wasrecorded inpreferential imports from Chile;
theirshare hasgrown by16percenttoabout 93percentorUS$185 million oftotalimports from thiscountry.
Data supplied byDANE.Colombia WT/TPR/S/18
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(a) LAIA
37. Colombia isamember oftheLatin American Integration Association (LAIA), established on
12August 1980 bytheMontevideo Treaty, replacing theLatin American FreeTrade Association
(LAFTA, 1960).34Thelong-term objective ofthisTreaty isthegradual andprogressive establishment
ofaLatin American Common Market. Theinstruments usedtoattain LAIA objectives comprise two
maincategories ofagreements: Regional-Scope Agreements, where allmember countries participate
according totheirlevelofdevelopment35andPartial-Scope Agreements thatbindonlytheirsignatories
(Table AII.1). Apart from granting tariff preferences, some ofthelatter embody activities aimed at
fostering economic complementarity anddeveloping economic co-operation among signatories.36
Additionally, aReciprocal Payments andCredit Agreement isintended tofacilitate intra-regional
transactions (Chapter I).Noreports onLAIA activities havebeensubmitted totheWTO orGATT
forthepastfouryears.37
(b) Andean Group
38. Colombia isanoriginal signatory totheCartagena Agreement establishing theAndean Group.38
Themainobjectives ofthisAgreement aretoaccelerate theeconomic growth ofparticipating countries
through economic integration, tohelpmembers tofulfil economic integration objectives, originally
setunder the1960 Montevideo Treaty, andtoestablish favourable conditions fortheconversion to
aLatin American Common Market.39Theobjective oftheAndean Group istoformafullcommon
34Tenoutoftheeleven LAIA members were contracting parties totheGATT (allexcept Ecuador).
35ALADI/AR.PAR/4 of1August 1990, Regional Scope Agreement No.4 andAmending Protocol of
12March 1987. Countries areclassified inthree categories: (i)most-developed, (ii)those atanintermediate
stage ofdevelopment, and(iii)least-developed. Countries higher upintheclassification areexpected togrant
morebenefitsthanthosestandinglowerandmakeanefforttograntdeeperpreferencestoleast-developedcountries
aswellasonproducts ofspecial export interest tothem. Inaddition totheRegional Tariff Preferences Agreement
(Preferencia Arancelaria Regional ,PAR), Regional Market-Opening Agreements infavour ofleast-developed
LAIA countries based onnon-reciprocity andco-operation, provide fortheimmediate elimination ofalltariff
andnon-tariff restrictions onimports ofcertain export items (specified ineach agreement between thedonor
andthebeneficiary) intoother LAIA markets. These areRegional Market-Opening Agreements Nos.1, 2and
3infavour ofBolivia, Ecuador andParaguay, respectively.
36Colombiaparticipatesinagreemen tsoncultural,educationalandscientificco-operationandtourismpromotion
(GATT document L/6946, 20December 1991).
37Mostrecently,GATTdocumentsL/6946,20Decemb er1991;L/6985,5March1992;and,L/6985/Add.1,
9April 1992.
38Other founders oftheAndean Group areBolivia, Chile, Ecuador andPeru. Venezuela became amember
in1973. Chile withdrew in1976, butcontinued toparticipate indiscussions onissues suchasroadtransport,
double taxation andregional multinationals. On25August 1992, Perushifted "temporarily" toobserver status
intrade-related activities (e.g., common external tariff, free-trade areaplans) andconcluded bilateral trade
agreements withother partners (Table AII.2); itisexpected toresume itsfullmembership status asfrom 1996
provided certain mechanisms areestablished within theGroup. Except forEcuador, which acceded totheWTO
inJanuary1996,allAndeanGroupcountrieswerecontractingpartiestotheGATTandsubsequentlyhavebecome
WTO Members.
39Article 1oftheCartagena Agreement of26May 1969. Recent GATT/WTO TPRreports onBolivia, Peru
andVenezuela alsoprovide background material ontheAndean Group.WT/TPR/S/18 Trade Policy Review
Page 26
market bytheyear2000.40Apart from thetrade liberalization programme among members andthe
establishment ofacommon external tariff(Table AII.2 andChapter IV),theAndean Group 'sregulatory
framework includes, interalia,acommon régime onindustrial property rights, rules against unfair
tradepractices, technology transfer, transport andrulesoforigin (seeChapter IV).Since April 1995,
anAndean Price Bandaffects imports ofagricultural items fromthirdcountries; acommon automotive
policy applies between Colombia, Ecuador andVenezuela (seeChapters IVandV).41There isalso
asupra-national dispute settlement mechanism (section (7)(iii)).
39. InJune1995, Andean Group countries were intheprocess ofdefining theelements tobe
contained innegotiations withMERCOSUR countries fortheestablishment ofaSouth American Free
Trade Area (AreadeLibre Comercio Sudamericano ,ALCSA). Theobjective istocreate aFreeTrade
Areawithin aten-year period, following therenegotiation ofexisting bilateral agreements inthefirst
stage (seebelow). Ithasbeenproposed toconduct theFTAnegotiations onabloc-to-bloc basis.
40. Colombia maintains bilateral trade agreements withtheindividual MERCOSUR countries;
renegotiation oftheseagreements istobegin inJuly1996, withtheaimofconcluding by31December.
Between 1991and1995theshare ofpreferential tototalexports toindividual MERCOSUR countries
hasdropped by34percentto43percentorUS$76 million. Forthisperiod, asimilar trend was
recorded inpreferential imports from these countries; theirshare declined bytwothirds ofits1991
levelto8percentoftotalimports from MERCOSUR orUS$60 million.42
41. Theauthorities consider thatfuture action intheAndean Group should aimtointroduce
wide-ranging institutional reforms, instruments fortheharmonization ofindividual economic policies
andsteps forimproving integration efforts inareas suchastelecommunications andtransport.
42. AtthePresidential Summit heldinTrujillo (Peru) inMarch 1996, Andean Group leaders
(including Peru) signed the"ActofTrujillo", thereby creating theAndean Community (Comunidad
Andina )andtheAndean Integration System (Sistema Andino deIntegración ).43TheBoard ofthe
Cartagena Agreement (Junta delAcuerdo deCartagena )wasreplaced bytheSecretariat General of
theAndean Union (Secretaría General delaUnión Andina ).Within fiveyears, theAndean Community
istohaveadirectly elected parliament andagenuine customs union. Since 1990, themembers of
theAndean Group havesubmitted tworeports ontheiractivities totheGATT Committee onTrade
andDevelopment.44
40Amending Protocol oftheCartagena Agreement (Protocolo Modificatorio delAcuerdo deCartagena ),
7March 1996.
41TheAndean Price Band System wasadopted byother partners (Ecuador, Venezuela) except forBolivia,
while inPeruitaffects 20eight-digit NANDINA items only(Ministerio deComercio Exterior (1995b), p.73).
42Data supplied byDANE.
43ElTiempo ,12March 1996.
44Thereports arecontained inGATT documents L/6737, 12October 1990 and,L/7089, 12October 1992.
Documents L/6841, 6May 1991 andL/7088, 12October 1992 notify recent Andean Group legislation.Colombia WT/TPR/S/18
Page 27
(c) TheGroup ofThree
43. Colombia isasignatory totheAgreement onFreeTrade oftheGroup ofThree orG-3(Tratado
deLibre Comercio delGrupo delosTres)withMexico andVenezuela. Thisassociation between
LAIA partners wasinitially seenasapossibility forentering theNorth American FreeTrade Area
(NAFTA).45TheAgreement extends LAIA 'sregional preferential treatment (Table AII.2) totheentire
customs tariffandcovers items contained inprevious bilateral Partial-Scope orother tradeagreements
between thetwoAndean Group members andMexico. Inaddition topreferences andsectoral matters
(agriculture, automotive, textiles andclothing), theprovisions oftheAgreement alsocover rules of
origin, sanitary andphytosanitary measures, government procurement, investment, services (financial,
telecommunications, transport, professional) andintellectual property.
44. Under thisAgreement, thepreferential treatment applied under previous LAIA bilateral
agreements between Colombia andMexico wasbroadened withtheelimination ofquotas onpreferential
treatment. Inaddition, theRegional-Scope Preference wastemporarily modified toreflect thedifference
inthelevelofdevelopment between thetwopartners.46Trade initems covered bythese agreements,
some ofthem considered byColombia asofgreat export interest (forexample, clothing, articles of
leather, printed andpublished material), hasbeenimmediately liberalized except forcertain Mexican
export items which havebeenincluded inafive-year phase-out period. Ontheother hand, preferential
access totheColombian market would improve forcertain Mexican items such aschemicals,
petrochemicals, steel, photographic films andcapital goods.47Nevertheless, thisAgreement seems
tohavecaused concern toColombian producers foranumber ofreasons. These included thedevaluation
oftheVenezuelan bolivar andtheMexican pesoin1994, aswellasdifficulty incompeting withhighly
developed Mexican industries, particularly inthefood, textile andsteelsectors.48
45. On21June1994, Colombia, onbehalf ofMexico andVenezuela, informed theGATT Council
oftheentry intoforce andthecontent oftheAgreement oftheGroup ofThree.49
(d) TheCaribbean
46. Colombia concluded anAgreement withtheCaribbean Common Market (CARICOM), similar
toLAIA (partial-scope agreement), on24July1994, withaviewtopromoting trade andinvestment
45Europa Publications Limited (1995), p.200.
46Foroneandahalfyears aftertheentry intoforce oftheagreement oftheGroup ofThree, thePAR tariff
cutapplied byMexico toColombian exports issetat35percentagainst areduction of21percentgranted by
Colombia.
47Between 1991 and1994 theshare ofpreferential tototal exports toMexico remained stable ataround
97percent; in1995 itdropped atabout 92percentorUS$83 million. Forthisperiod, there wasanincrease
inpreferential imports from Mexico. From 85percentto98percentoftotalimports from thiscountry or
US$444 million. Data supplied byDANE.
48EIU(1995a), p.41.
49GATT document C/M/273, 12July1994.WT/TPR/S/18 Trade Policy Review
Page 28
withcountries oftheregion (Table AII.2).50In1995theshare ofpreferential imports intotalimports
from CARICOM stood at73percent(US$27 million).51
47. On23June1994Colombia joined theAssociation ofCaribbean States (Asociación deEstados
delCaribe ).52Itsobjective istosetaframework forflexible co-operation onissues suchaseconomic
integration, trade, investment, transport, communications, science andtechnology andenvironmental
protection.
(e) Central America
48. Asindicated inTable AII.2, since1984Colombia hasgranted unilateral preferential treatment
tocertain imports fromCentral American countries through partial-scope agreements under theLAIA
framework.
49. Since 1990 Colombia andVenezuela have been negotiating anAgreement onTrade and
Investment (Acuerdo sobre Comercio eInversión )withCACM fortheestablishment ofafree-trade
areaby2003. AFramework Agreement (Acuerdo Marco )wassigned in1993 (Table AII.2). The
negotiations, which wereexpected toconclude by30June1993, arecurrently suspended, withpending
issues including thetrade liberalization programme, rules oforigin andtrade inagriculture.53
Negotiations areexpected toresume when CACM countries apply acommon external tariff. This
agreement isalsointended tocover shipping andother services.
(f) Other
50. InDecember 1994, Colombia participated intheSummit oftheAmericas where, interalia,
aprogramme forcompleting thenegotiations foraFreeTrade AreafortheAmericas (FTAA) bythe
year2005wasagreed. Aprogramme ofaction, seeking, interalia,coherence withtheWTO provisions,
hasbeendeveloped progressively attheMinisterial meetings heldinDenver (June 1995) andCartagena
(March 1996). Eleven working groups havebeenestablished towork outrecommendations foraction
inthefollowing areas: market access; customs procedures andrulesoforigin; investment; technical
barriers totrade; sanitary andphytosanitary measures; subsidies, anti-dumping andcountervailing
duties; small-size economies; government procurement; intellectual property rights; services; and
competition policy. These groups aretosubmit proposals tothescheduled 1997Ministerial meeting.
ATripartite Committee, consisting oftheOrganization ofAmerican States, theInter-American
Development Bank andtheEconomic Commission forLatin America, isproviding whatever technical
andanalytical assistance theparticipant countries mayrequest. Areport onenvironmental protection
issues, prepared bythisCommittee, istobepresented attheWTO Ministerial meeting inSingapore.
50CARICOM's14memb ersareAntiguaandBarbuda,Bahamas,Barbados,Belize,Dominica,Grenada,Guyana,
Jamaica, Montserrat, St.Kitts and Nevis, St.Lucia, St.Vincent and Grenadines, Suriname, and
Trinidad andTobago.
51Data supplied byDANE.
52TheAssociation ofCaribbean States wasestablished in23June 1994. Apart from the13Caribbean island
States, other participants arethesixCentral American States, Mexico, Venezuela, Cuba, Haiti andthe
Dominican Republic.
53Ministerio deComercio Exterior (1995b), p.89.Colombia WT/TPR/S/18
Page 29
(iii) Bilateral agreements
51. Colombia'sAgreementwithChile(TableAII.2),signedinNovember1993,expandedpreferential
treatment which waspreviously provided under LAIA Partial-Scope Agreement 14;thelatter isno
longer inforce. Italsoeliminated allquantitative limitations onpreferential tariff treatment.
APartial-Scope Agreement withCuba wasexpanded recently.
(7) Trade Disputes andConsultations
(i) Dispute Settlement under GATT 1947
(a) Complaints against Colombia
52. Colombia wasnever subject toacomplaint under theGATT 1947dispute settlement procedure.
(b) Complaints byColombia
EEC member States 'import régimes forbananas
53. InFebruary 1993, following unsuccessful consultations anduseoftheDirector-General 'sgood
offices, aPanel wasestablished ontherequest ofCosta Rica, Colombia, Guatemala, Nicaragua and
Venezuela54,inaccordancewiththeprovisionsofthe1966DecisiononProceduresunderArticleXXIII55,
toexamine import measures maintained onfresh bananas byindividual member States ofthe
European Communities.56
54. ThePanel reached thefollowing conclusions:
(i) Thequantitative restrictions maintained byFrance, Italy, Portugal, Spain andthe
UnitedKingdomwereinconsistentwithArticleXI:1(generaleliminationofquantitative
restrictions) andwerenotjustified byArticle XI:2(c)(i) (governmental restrictions on
marketing ofdomestic products), Article XXIV (territorial application, frontier traffic,
customs unions andfree-trade areas) orthe"existing legislation" clauses intheprotocols
ofaccession ofthese member States totheGATT;
54In1991, these countries wereresponsible foraround 11percentofworld production ofbananas. Although
Colombiaaloneaccountedfor3.5percentofworldproduction,intheperiod1989-1991itwasnotamajorbanana
supplier totheEEC. Brazil, thePhilippines andMexico, asthesecond, third andseventh largest producers
representing jointly around 22percentofworld production, alsomade submissions tothePanel.
55Therules ofthisDecision required thePanel tofinish itswork andpresent itsfindings within 60days
(BISD 14S/18).
56National restrictions applied bycertain member States onimports from Latin America were considered
as"residual"(trademeasuresappliedpriortothecreationoftheEEC,ormemb erStates'accession,andmaintained
thereafter duetolackofacommon import policy forbananas). Belgium, Denmark, Ireland, Luxembourg and
theNetherlands, which imported bananas mainly fromLatin America, applied abound m.f.n. tariff of20percent
withnoquantitative restrictions. Allmember States applied azeroratetoACP bananas. Germany applied a
tariff-free quota based onthelevel ofestimated domestic consumption. France, Greece, Italy, Portugal andthe
UnitedKingdomappliedvariousquotasandlicensingrequirements,whileSpainmaintainedadefactoprohibition
onbanana imports. These import régimes were tobereplaced on1July1993 byacommon market organization
ofthebanana sector, including anewimport régime (Council Regulation (EEC) No.404/93).WT/TPR/S/18 Trade Policy Review
Page 30
(ii) thetariff preference granted tobanana imports from African, Caribbean and
Pacific States (ACP) wasinconsistent withArticle I(m.f.n. treatment). Alegal
justification forthepreference could notemerge fromanapplication ofArticle XXIV
tothetypeofagreement described bytheEECinthePanel'sproceedings, butonly
from anaction (waiver) bytheCONTRACTING PARTIES under Article XXV
(Joint Action bytheContracting Parties).
55. ThePanel recommended thattheimport restrictions should bebrought intoconformity with
theEEC'sobligationsundertheGeneralAgreement.ThesameshouldapplytotheACPtariffpreference
unless, inaccordance with theprovisions ofArticle XXV, authorization wasgiven bythe
CONTRACTING PARTIES tomaintain thescheme.57
56. TheReport, brought totheGATT Council inJune1993anddiscussed insubsequent meetings
in1993 and1994, hasnotbeenadopted.
EEC Import Régime onBananas
57. InJune1993,asecondPanelwasestablishedontherequestofCostaRica,Colombia,Guatemala,
Nicaragua andVenezuela, inaccordance withthe1989 Decision concerning Improvements tothe
GATT Dispute Settlement Rules andProcedures (BISD 36S/61), toexamine theEECimport régime
forbananas introduced on1July1993.58
58. ThePanel concluded thatthetariff quota wasnotinconsistent withArticles XI(elimination
ofquantitative restrictions) andXIII(non-discriminatory application ofQRs); thesecurity requirements
andother formalities connected withtheimportation ofbananas werenotinconsistent withArticle VIII
(onimport andexport feesandformalities); andthattheEUhadnotacted inconsistently withits
obligation under Article XVI:1 todiscuss, upon request, thepossibility oflimiting thesubsidization
of(domestically produced) bananas. However, thePanel alsoconcluded thatthespecific duties levied
bytheEUwere inconsistent withitsbound concessions under Article II;thatthepreferential rates
toACP States were inconsistent withArticle Iandcould neither bejustified byArticle XXIV nor
Article XX(h) (restrictions pursuant toobligations under commodity agreements) andthattheallocation
1ofimport licences providing access tothetariff quota wasinconsistent withArticles III(national
treatment) andI,andcould neither bejustified byArticle XXIV norbyArticle XX(h). ThePanel
57GATT Focus, July 1993. The EUandtheACP States obtained awaiver, granted bythe
CONTRACTING PARTIES attheir 50thSession (December 1994), until 29February 2000, theexpiry date
ofthefourth Lomé Convention (C/M/276, C/W/820 Rev.2, L/7539 andCorr.1 andSR.50/1).
58Council Regulation (EEC)No. 404/93. Therégime established differing treatments fornon-EU sources
offresh bananas. Imports from "traditional" ACP States entered dutyfreeuptoaquantity of857,700 tonnes.
Upto2milliontonnes,importsfrom"non-traditional"ACPsuppliers(includingquantitiesexceedingthetraditional
suppliers 'quota) entered dutyfree, andimports from non-ACP countries were subject toatariff ofECU100
pertonne. Imports above tariff quota levels were charged atariff ofECU750 pertonne (ACP States) or
ECU850 pertonne (third countries). Imports from third countries were contingent onthegranting ofanimport
licenceandmakingasecuritydeposit.Licencesforthirdcountryand/ornon-traditionalACPfruitweredistributed
tothree broad categories ofoperators established intheEU. Inaddition, theEUmaintained abound tariff of
20percentadvalorem.Colombia WT/TPR/S/18
Page 31
therefore recommended thattheEUbring itstariffs andtheallocation oftariff quota licences into
conformity withitsGATT obligations.59
59. InMarch 1994, aFramework Agreement onBananas (Chapters IVandV),duetocome into
force on1October 1994, wasconcluded between theEUandfourcomplainants, including Colombia,
providing preferential treatment fortheirexports totheEUmarket.60ThePanel Report wasbrought
totheCouncil thesamemonth (March 1994).61InMay1994, agroup ofLatin American andCaribbean
banana-producing countries62jointly reiterated thattheEUbanana import régime hadbeen found
inconsistent withtheGATT anddrew attention tothefactthattheacceptance bysome countries of
anoffer bytheEUintheUruguay Round didnotmake therégime anylessdiscriminatory.63
60. ThePanel Report hasnotbeenadopted. Costa Rica, Colombia andtheEUimplemented the
FrameworkAgreementon1January1995.64InJanuary1995,theUnitedStatesinitiateda"Section301"
investigation ofthebanana export practices ofColombia andCosta Rica. Thisinvestigation wasended
bysigning aMemorandum ofUnderstanding withtheUnited States inJanuary 1996.65
United States measures affecting theimportation, internal saleanduseoftobacco
61. InJanuary 1994, following unsuccessful consultations, aPanel wasestablished ontherequest
ofanumber ofcountries, including Colombia, toexamine themeasures imposed bytheUnited States
ontobacco trade under theamendments ofthe"Tobacco Program" intheUSOmnibus Budget
Reconciliation Actof1993 (orthe1993 Budget Act).66Withrespect totheprovisions oftheAct,the
59GATT Focus, June 1994.
60Other participants totheAgreement were Colombia, Costa RicaandNicaragua. Following theEU'soffer
forasettlement,inearly1994,ColombiaandVenezuelawithdrewfromthedispute(DS38/10,DS38/11,DS38/12).
61C/M/271.
62Thisgroup includes GATT 1947 contracting parties Guatemala, Honduras, Mexico, andobservers Ecuador
andPanama.
63GATT Focus, June 1994.
64TheUnited States, whose banana marketing companies (Chiquita Brands International Inc.andtheHawaii
BananaIndustryAssociation)claimedthattheycouldbeadverselyaffectedbytheframew orkagreemen t,expressed
concernoveritsimplementationwhich,itwassaid,permittedsignatoryproducercountriestoimposediscriminatory
export quotas andlicences onU.S. companies. InOctober 1994, theUnited States initiated aprocedure under
Section 301oftheTrade Act,1974, against theEUbanana import régime; apreliminary decision thattherégime
adversely affected U.S. economic interests wasmade inJanuary 1995.
65Under thisagreement, theUnited States tooknoteofthefollowing modifications inColombia 'sbanana
régime: (i)thereference period forthedistribution ofthetariff quota waschanged from afour-year (1990-1993)
toatwo-year (1993-1994) base; (ii)thebasis forallocation waschanged fromeachmarketing company 'sexports
totheEUtoaweighted average composed of45percentofeachcompany 'sexports totheEUand55percent
ofeachcompany 'sexports totheworld; and(iii)the7percentallocation tonewcomers wasreduced to2percent
(Article 4oftheMemorandum ofUnderstanding Between Colombia andtheUnited States Concerning Bananas,
9January 1996, published inInside U.S. Trade, 12January 1996).
66GATT document DS44/R, 12August 1994.WT/TPR/S/18 Trade Policy Review
Page 32
Panel concluded that: (a)theDomestic Marketing Assessment wasaninternal quantitative regulation
inconsistent withArticle III:5, (b)theBudget Deficit Assessment wasaninternal taxorcharge
inconsistent withArticle III:2; (c)theNoNetCostAssessment wasnotinconsistent withArticle III:2;
and,(d)theevidence didnotdemonstrate thatthesection onFeesforInspecting Imported Tobacco,
mandated action inconsistent withArticle VIII:1(a). Ithasbeenrecommended thattheUnited States
brings itsinconsistent measures intoconformity withitsobligations under theGeneral Agreement.
ThePanel Report wasadopted bytheGATT Council on4October 1994.67
(c) Third party interests
62. Since1990,ColombiahasreserveditsrightstobeheardbythreePanelsexaminingthefollowing
cases: (a)thedenial oftheUnited States ofmost-favoured-nation treatment with respect toa
countervailing dutyorder onnon-rubber footwear from Brazil (1991), and, (b)theUnited States
restrictions onimports oftuna(firstandsecond panel, 1991 and1992). Colombia didnotmake any
intervention orsubmission atthepanel proceedings, except forthesecond Panel onrestrictions oftuna
imports.68InthatcaseColombia, atunaexporter added totheU.S.listof"intermediary" nations in
January 1992, hasopposed anyapproach which would beagainst thedolphin protection provisions
agreed inthecontext oftheInter-American Tropical Tuna Commission (IATTC).69
(ii) Dispute Settlement under GATT 1994
63. InSeptember1995,Guatemala,Honduras,MexicoandtheUnitedStatesrequestedconsultations
withtheEConitsrégime fortheimportation, saleanddistribution ofbananas. Inthiscontext,
Colombia, which hasbeengranted "observer status", provided datasupporting itsstrong commercial
interest inexporting bananas totheEUmarket.70InFebruary 1996, Ecuador, Guatemala, Honduras
andtheUnited States sought consultations under Article XXIII. TheWTO Dispute Settlement Body
established aPanel toexamine thisquestion on8May1996. Colombia hasrequested thirdparty status
inthework ofthisPanel.
(iii) Disputes outside GATT/WTO
64. TheLAIA provides aframework fortrade consultation mechanisms, within itsCommittee of
Representatives (Comité deRepresentantes ),although ithasnodispute settlement mechanism assuch.
Thisbody makes proposals when norms orprinciples oftheMontevideo Treaty arenotobserved.
67GATT document C/M/275, 24October 1994.
68GATT documents DS18/R, 10January 1992; DS21R, 3September 1991; DS29R, 16June 1994. More
information onthese dispute settlement cases canbefound intheTPR reports ofBrazil,Costa Rica, the
United States andVenezuela.
69Under theUnited States Marine Mammal Protection Act(MMPA), "intermediary nations" were initially
defined asthose which purchased tunacaught intheEastern Tropical Pacific Ocean from countries which do
notcomply withU.S. dolphin protection standards. Thedefinition of"intermediary nation" wassubsequently
extended inOctober 1992toanynation thatexports yellowfin tunaoryellowfin tunaproducts totheUnited States,
andanynation thatimports yellowfin tunaoryellowfin tunaproducts thataresubject toadirect prohibition on
import intotheUnited States.
70Inrecent years Colombia hasaccounted forabout 21percent oftheEU'sbanana imports under
non-preferential arrangements.Colombia WT/TPR/S/18
Page 33
Bilateral commissions (Comisiones Administradoras Binacionales )dealwithproblems, mostly inthe
areaofnon-tariff measures, arising from theimplementation ofbilateral LAIA agreements.
65. IntheAndean Group, TheCourt ofJustice oftheCartagena Agreement (Tribunal deJusticia
delAcuerdo deCartagena )wasestablished in1983 toguarantee theobservance ofallcommitments
related totheAgreement. TheBoard oftheCartagena Agreement (Junta delAcuerdo deCartagena ,
JUNAC) canauthorize orrequest theimplementation ofmeasures toprevent orremedy damages or
distortions which arecaused bydumping, subsidization, export restrictions orrestrictive business
practices. Member countries canaddress theirdisputes orappeals against normative action ofeither
theBoard ortheCommission oftheCartagena Agreement totheCourt ofJustice which canruleon
suchdisputes andinterpret legaltexts. SofarColombia 'sdispute settlement cases atsub-regional level
haveinvolved compliance withAEC tariff obligations, anti-dumping, safeguards, sanitary standards
andtrademarks (marcas defábrica ).
66. Abilateral commission (comisión administradora binacional )oversees theimplementation of
theprovisions contained inthebilateral agreement withPeru. Joint commissions (comisión mixta)
have similar responsibilities inthecaseoftheagreements withtheCentral American countries
(section(6)(ii)(e)).TheAgreementoftheGroupofThreecontainsitsowndisputesettlementmechanism.