Convenio de Aceleración y Profundización del Libre Comercio entre el Perú y el Ecuador

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Country/entity: Ecuador
Peru
Region: Americas
Agreement name: Convenio de Aceleración y Profundización del Libre Comercio entre el Perú y el Ecuador
Date: 26 Oct 1998
Agreement status: Multiparty signed/agreed
Interim arrangement: Yes
Agreement/conflict level: Interstate/interstate conflict
Cenepa War (1995)
This brief conflict was fought between Peru and Ecuador in 1995, over the control of the Canepa valley on Peruvian territory. There had been earlier military confrontations over this area between the two nations, one in 1941 (the Ecuadorian-Peruvian War), resulting in a border treaty later disagreed with by Ecuador, and another brief confrontation in 1981. The war was initiated by Ecuadorian outposts at the Cenepa River that were discovered by a Peruvian patrol. Peru claimed that the existence of these outposts constituted a violation of Peruvian territory and gave Ecuador an ultimatum to withdraw its patrols or they would be dislodged by force. The deadline passed and Peruvian troops were deployed to the area to remove the Ecuadorian posts, followed by a general mobilization by both sides. Heavy air and ground attack were carried out from the end of January until 28 February when a bilateral ceasefire agreement was signed.
In March 1995, the Military Observer Mission to Ecuador and Peru came to Canepa, which was later turned into a demilitarized zone, to supervise the separation of forces. Furthermore, both governments negotiated the final demarcation of the border, resulting in the Rio Protocol, signed 26 October 1998.
Stage: Framework/substantive - partial
Conflict nature: Territory
Peace process: Ecuador-Peru border dispute peace process
Parties: Ecuador, Peru:
Fernando de Trazegnies Granda
Minister of Foreign Affairs of the Republic of Peru
Jose Ayala Lasso
Minister of Foreign Affairs of the Republic of Ecuador
Third parties: -
Description: This agreement outlines the details of the free trade arrangement between Ecuador and Peru. It deals with the process of reducing tariffs on trade in goods between the two countries, setting up the timeline and the pace for the tariff reduction until they are fully removed. The agreement also provides guidelines on mutual recognition and standards for health, safety, etc.

Agreement document: EC_PE_981026_Agreement_on_Accelerating_and_Strengthening_Free_Trade_tr.pdf (opens in new tab) | Download PDF

Groups

Children/youth: No specific mention.
Disabled persons: No specific mention.
Elderly/age: No specific mention.
Migrant workers: No specific mention.
Racial/ethnic/national group: No specific mention.
Religious groups: No specific mention.
Indigenous people: No specific mention.
Other groups: No specific mention.
Refugees/displaced persons: No specific mention.
Social class: No specific mention.

Gender

Women, girls and gender: No specific mention.
Men and boys: No specific mention.
LGBTI: No specific mention.
Family: No specific mention.

State definition

Nature of state (general): No specific mention.
State configuration: No specific mention.
Self determination: No specific mention.
Referendum: No specific mention.
State symbols: No specific mention.
Independence/secession: No specific mention.
Accession/unification: No specific mention.
Border delimitation: No specific mention.
Cross-border provision: No specific mention.

Governance

Political institutions (new or reformed): No specific mention.
Elections: No specific mention.
Electoral commission: No specific mention.
Political parties reform: No specific mention.
Civil society: No specific mention.
Traditional/religious leaders: No specific mention.
Public administration: No specific mention.
Constitution: No specific mention.

Power sharing

Political power sharing: No specific mention.
Territorial power sharing: No specific mention.
Economic power sharing: No specific mention.
Military power sharing: No specific mention.

Human rights and equality

Human rights/RoL general: No specific mention.
Bill of rights/similar: No specific mention.
Treaty incorporation: No specific mention.
Civil and political rights: No specific mention.
Socio-economic rights: No specific mention.

Rights related issues

Citizenship: No specific mention.
Democracy: No specific mention.
Detention procedures: No specific mention.
Media and communication: No specific mention.
Mobility/access: No specific mention.
Protection measures: No specific mention.
Other: No specific mention.

Rights institutions

NHRI: No specific mention.
Regional or international human rights institutions: No specific mention.

Justice sector reform

Criminal justice and emergency law: No specific mention.
State of emergency provisions: No specific mention.
Judiciary and courts: No specific mention.
Prisons and detention: No specific mention.
Traditional Laws: No specific mention.

Socio-economic reconstruction

Development or socio-economic reconstruction: No specific mention.
National economic plan: No specific mention.
Natural resources: No specific mention.
International funds: No specific mention.
Business: This whole agreement deals with business (free trade).
Taxation: Socio-economic reconstruction→Taxation→Reform of taxation
The agreement as a whole deals with the removal of tariffs and charges for trade in goods.
Banks: No specific mention.

Land, property and environment

Land reform/rights: No specific mention.
Pastoralist/nomadism rights: No specific mention.
Cultural heritage: No specific mention.
Environment: No specific mention.
Water or riparian rights or access: No specific mention.

Security sector

Security Guarantees: No specific mention.
Ceasefire: No specific mention.
Police: No specific mention.
Armed forces: No specific mention.
DDR: No specific mention.
Intelligence services: No specific mention.
Parastatal/rebel and opposition group forces: No specific mention.
Withdrawal of foreign forces: No specific mention.
Corruption: No specific mention.
Crime/organised crime: No specific mention.
Drugs: No specific mention.
Terrorism: No specific mention.

Transitional justice

Transitional justice general: No specific mention.
Amnesty/pardon: No specific mention.
Courts: No specific mention.
Mechanism: No specific mention.
Prisoner release: No specific mention.
Vetting: No specific mention.
Victims: No specific mention.
Missing persons: No specific mention.
Reparations: No specific mention.
Reconciliation: No specific mention.

Implementation

UN signatory: No specific mention.
Other international signatory: No specific mention.
Referendum for agreement: No specific mention.
International mission/force/similar: No specific mention.
Enforcement mechanism: No specific mention.
Related cases: No specific mention.
Source: http://www4.congreso.gob.pe/comisiones/1999/exteriores/libro1/2avolum/05conv.htm

Agreement on Accelerating and Strengthening

The Free Trade Agreement between Peru and Ecuador

The Government of the Republic of Peru and the Government of the Republic of Ecuador:

Aware that the liberalization of bilateral trade will strengthen relations between Peru and Ecuador, in this new stage of uniting the two countries;

Convinced that free trade will mean the opening of new opportunities for economic agents, which will boost economic growth in both countries;

Certain that linking trade and investment entrepreneurs will increase the degree of reciprocal trust and cooperation between the two countries;

Considering that in Decision 414 of the Andean Community, the Liberation of Peru and the Member Countries Program was agreed, to establish a Free Trade Zone by the year 2005;

Taking into account what is established in article 121 of the Cartagena Agreement.

Agree to accelerate and strengthen the tariff reduction process, as set forth in the present Agreement;

First

The acceleration and strengthening of the tariff reduction process, aimed at increasing the trade flow between the Parties will be conducted in the following manner:

1. The products contained in Annex II of Decision 414 of the Andean Community, will be exempt from charges from the day after this Agreement comes into force.

2. The products contained in Annex III of Decision 414 of the Andean Community will be exempt from charges starting from December 31st, 1999, according to the following schedule:

From the day after this Agreement comes into force:

30%

From 31/12/1998:

50%

From 31/12/1999:

100%

3. The products listed in Annex VIII of Decision 414 of the Andean Community will be exempt from charges starting from December 31st, 2000, according to the following schedule:

From the day after this Agreement comes into force:

30%

From 31/12/1998:

50%

From 31/12/1999:

75%

From 31/12/2000:

100%

4. The products listed in Annexes IV to VII of Decision 414 of the Andean Community, will be exempt from import charges starting from December 31st, 2001.

Until this date, the margins established in Decision 414 of the Andean Community will be applied.

5. Through the immediate exemption from charges of certain products agreed upon by both Parties, within 90 days of this Agreement coming into force.

Additionally, they will maintain full exemption from charges of products that are established in the following :

1. Bilateral Trade Agreement between Ecuador and Peru signed on November 14th, 1992, and the extension to the Bilateral Agreement signed on December 13th, 1995.

2. The contents of Annex I of Decision 414 of the Andean Community.

3. The products included in Decision 356 of the Cartagena Agreement Commission.

Second

Exceptions to points 2, 3 and 4 of the first clause can be made, up to a maximum of one hundred and fifty NANDINA (Common Description and Coding Nomenclature for the Goods of the Andean Community Member Countries) sub-items that are considered sensitive to each country and are contained in Annexes III to VIII of Decision 414 of the Andean Community Commission.

This compromise will not imply a step backwards in relation to the exemption timetables established in the aforementioned Decision.

Third

Of the list of sensitive products referred to in the second clause, no more than a hundred NANDINA sub-items whose exemption timetable, provided for in Decision 414, is scheduled after the 31st of December, 2001, will become exempt according to the timetables provided for in Decision 414 of the Andean Community Commission.

The rest will become exempt at the latest on the 31st of December, 2001.

Fourth

Rules relating to the origin of goods, commercial competition, safeguards and other, will be those established in the Cartagena Agreement’s legal regime.

Fifth

When, because of the existence of different levels of charges applied by any of the two countries on the import of raw materials, supplies or intermediate goods used in trade products, distortions that affect trade arise, the affected country will inform the Ministry responsible for the other country’s trade negotiations of its intention to implement a correction to the law, and send the information required by Decision 415 of the Andean Community Commission.

The consulted entity will make a ruling within a maximum of 15 calendar days.

If they do not agree through this method, the affected country may refer the case to the Administrative Commission of the Agreement, which will decide within a maximum period of 8 calendar days;

if there is no decision, the affected country can impose the corresponding corrective right.

Sixth

The two countries agree that the standardisation bodies will adopt within a period of 90 days a regulation for the mutual recognition of conformity certificates within the mandatory official technical standards.

Seventh

The two countries are committed to streamlining the procedures established in Decision 418 of the Andean Community, for the issuing and registration of health records.

Eighth

The two countries undertake to eliminate sanitary and phytosanitary restrictions that constitute unnecessary barriers to reciprocal trade.

Ninth

Both countries undertake to negotiate an industrial complementarity agreement in the automobile sector.

To do so they will constitute a working group composed of government and private representatives of both countries.

This working group will be chaired by the Andean Liaison Bodies of each country and will hold its first meeting this year.

Tenth

With the aim of achieving the best execution of this Agreement, identifying specific problems in reciprocal trade, and taking measures to eliminate these, an administrative commission composed of representatives of the Ministry of Industry, Tourism, Integration and

International Trade Negotiations of Peru and the Ministry of Foreign Trade, Industrialization and Fisheries of Ecuador will be established.

The present Agreement will come into force simultaneously with the others signed on this same date, that are part of the global and definitive solution referred to in the Implementation of the Brasilia Declaration Timetable, passed by the parties on January 19th, 1998, and under the conditions set out in it.

Signed in the city of Brasilia, the 26th day of the month of October, 1998, in two copies in Spanish, both texts being equally valid.

Fernando de Trazegnies Granda

Minister of Foreign Affairs of the Republic of Peru

Jose Ayala Lasso

Minister of Foreign Affairs of the Republic of Ecuador