Andean Community

• 5 pages
• Documento Reservado (Classified Document)
• January 23, 2009

TRADE GROUP ARRANGEMENTS FOR THE EXCHANGE OF TARIFF OFFERS
Scope non-agricultural

1. Reference period
The reference period for trade data as a basis for negotiations will be the years 2005-2007.

2. Tariff Nomenclature
The negotiations were conducted in the Harmonized System 2007 (SA 2007), at a minimum of eight digits. Each Party shall submit their bids in its respective classification. Applications should be submitted in the nomenclature of the Party to which he making the request. The negotiation results are expressed in the nomenclature of Harmonized System 2007 (SA 2007), at a minimum of eight digits, including subsequent revisions.

3. Scope

All tariffs are subject to negotiation. The non-agricultural area to negotiate is for those who do not be found in Annex I to the Agreement on Agriculture of the WTO.

4. Technical specifications for the exchange of offers The negotiation of tariff preferences should be based on form of offers and requests.

The Parties shall submit their bids by staging category in the  criteria which are considered Special and Differential Treatment (SDT).

Tariff concessions must:

• Grant in accordance with the provisions of Article XXIV of GATT  1994.

• Cover the different categories of tariffs are ad valorem, specific or mixed.

Date of exchange: Tenders and statistics will be exchanged on 3 February 2009.

Format: Tenders and summaries will be exchanged format  mail, in two separate documents. Both must be delivered at  nomenclature of 2007 with a minimum of 8 digits, and presented in excel.

1. MFN tariffs reported complete. The file containing the offer must be structured as follows:

…

[PA: substantial trade: the elimination of tariffs should cover  at least 97% of the trade as a whole and in recognition of the  asymmetry between the EU and the Andean countries, the EU tariffs on at least
the percentage of trade in a maximum term of 10 years. This,  without prejudice to the application of the criteria for Special Treatment  Differential in favor of the Andean countries.]

• Tariff base: The Parties shall base their bids in the case of the EU in the MFN tariff notified on 15.11.07 and the Andean countries in the  MFN tariff notified on 30.11.07.
• Standstill: For the purpose of predictability in the negotiations, the Parties will implement a standstill on all MFN tariffs notified.  This standstill for negotiations is separate and does not prejudge the  specific provisions of the standstill which will be accepted at any Final Agreement and which shall apply from the effective date of  Agreement.
• Transition periods: Except in special circumstances, for offers tariff elimination of tariff lines in the phase-out schedules of the Parties, the Parties shall base their Offers in the implementation of five periods: the entry into force, 3 years, 5 years, 7 years and 10 years – and must implement annual reductions in equal steps, ie linear reductions, with the first stage taking place on the date of entry into force of the Agreement and the other in equal stages on January 1 of each following year (see illustrative example in the table below).

…

Bids will be as close as possible to what each of the Parties can provide a point of arrival of a final agreement. With that look, the Parties agree that:

• The elimination of tariffs should point to the highest attainable liberalization and coverage.
• There should be a maximum tariff elimination in the category immediately.
• The asymmetries will be reflected in the bids. Each Party reserves the right to modify (ie, improve or reverse) their bids, in order to achieve reciprocity and a successful outcome as a whole, taking into account also the offensive interests and potential sensitivities of the other party and the asymmetries.

5. Statistics

• Statistics: Data for the reference period 2005-2007 of imports by volume and value of the other Parties, the  world and third countries listed below. Asset indicated in Euros or USD, at least 8 digits and the national classification based on the SA 2007 as indicated in the following table.
• Countries: EU trade request information between each of the Andean countries with the U.S., trade between them and with Brazil, Argentina and Chile. The Andean countries requested trade statistics between the EU and the U.S., China, Japan, Brazil, Venezuela, Argentina, Chile, Mexico, Canada, Korea, India, EFTA, Central America and ACP countries.

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