EU concludes trade agreement with Colombia, Peru, Ecuador

The Council of the EU has finalised the ratification of a trade agreement with Colombia and Peru, as well as a protocol for Ecuador’s accession to this agreement.

This decision marks the last step in a process that establishes a close, long-term trade relationship encompassing services, intellectual property, public procurement, and human rights.

Although most sections of the agreement have been in effect since 2013, full implementation will begin on November 1, 2024, increasing legal certainty in commercial ties.

The three countries are part of the Andean Community, a free trade area aimed at establishing a customs union among South American nations, which includes Bolivia, Colombia, Ecuador, Peru, and Venezuela.

The EU is the third-largest trading partner for the Andean countries, with total trade valued at approximately €33 billion in 2023.

Key benefits of the trade agreement include the opening of markets for goods and services, improved conditions for trade through new rules on non-tariff barriers, and a stable environment for businesses facilitated by a bilateral dispute settlement mechanism.

Additionally, the agreement includes commitments to uphold high labour and environmental protection standards, reinforcing cooperation on competitiveness and innovation.