TLC Colombia - Triangulo Norte

1. Free Trade
Agreement
Colombia and
Northern Triangle

3. 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.

4. Importance of the
agreement for Colombia
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, protection
and treatment in respect of investment.

5. 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

6. 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.

7. 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.

8. 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.

9. Important Dates:
 March 16, 2007 in Sonsonate, El Salvador. Completion of negotiations after
six rounds of negotiations and two meetings of the working groups of
market 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 revisions
to inclusion of new products.

10. 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 CentralAmerican countries.
 Within trade policy that advances the Colombian Government is moving
towards the establishment of a continental free trade area.
http://www.sice.oas.org/

11. In Force
 The Government of Colombia sent the senate the text of the FTA with
Colombia and northern triangle on February 20, 2008.
 The committees of the senate and house of representatives of Colombia
approved 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 between
Guatemala 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 and
Colombia.
http://www.sice.oas.org/

12. In Force

13. Commercial Exchange
Import and Export
http://www.mincit.gov.co/publicaciones.php?id=47

19. Colombian principal exports
products

23.  Pork
Reduction Tariff Schedule in
the partner country

24.  Rice

25.  Sugar

26.  Cars/Vehicles

27.  LeatherManufacturing

28. Reduction Tariff
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)
 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

29. 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%

30. 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.

31. 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

32. Industrial Tariff Elimination
Immediate: 53% duty-free access to El Salvador and Guatemala. Honduras
will 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. In
Honduras about 87%.
http://www.tlc.gov.co/publicaciones.php?id=6845

33. Sensitive Products
Exclusions are reciprocal and were proposed by the countries of northern
triangle 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 goods
removed.
http://www.tlc.gov.co/publicaciones.php?id=6845

37. Thanks