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Following the UK’s departure from the European Union (EU), and recognising the Andean Community (Colombia, Ecuador and Peru) as an important and growing trade and investment partner, both parties agreed to continue this relationship through the new UK-Andean Countries Trade Agreement.
The agreement took effect on 1st January 2021 with Ecuador and with Peru, when the existing EU agreement ceased to apply to the UK. On June 28th 2022, the agreement also entered into force between the UK and Colombia, bringing the latest to become a full Member to this agreement.
The treaty covers all the key fields of the trade relation, such as:
- Preferential Tariff Rates on Goods
- Rules of Origin, Origin Certificates and Declarations, and Origin Cumulation
- Sanitary and Phytosanitary measures
- Technical Barriers to Trade
- Trade in Services
- Intellectual Property
- Government Procurement
Treaty documents and further information about the UK-Andean Countries Trade Agreement are available at GOV.UK.
Facts and Benefits
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The UK-Andean Countries Trade Agreement ensures the continuity of the preferential market access conditions granted to the UK to enter the growing market of the Andean Community (Colombia, Ecuador and Peru), which comprises over 100 million inhabitants.
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These potential Andean consumers demand products in which the UK economy specialises, namely: cars, beverages, medical and pharmaceutical products, chemicals, power generators, and industrial machinery.
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As tariff liberalisation continues uninterrupted, many UK products are already tariff-free to access the Andean countries. Moreover, the vast majority of UK goods will enter Colombia and Peru tariff-free by 2024 and Ecuador by 2027.
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The Agreement also brings benefits by creating certainty and eliminating restrictions and limitations for the provision and establishment of UK services.
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Moreover, the UK-Andean Trade Agreement guarantees the continuity of the National Treatment benefit, which allows UK companies to obtain the same treatment as local stakeholders in public procurement processes. This allows British suppliers to be more competitive in a level-playing field.
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The agreement also serves as a platform to promote dialogue and facilitate the implementation of mutual commitments and the preferential trade conditions, through a mandate to hold an annual meeting of the UK-Andean Trade Committee.
Key Sectors
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Key UK agricultural products, including dairy products, meat, bacon and cold cuts, products with high sugar content, and some preparations for animal feed, benefit from Tariff Rate Quotas (TRQ) under the Agreement, allowing for certain volumes to enter Andean countries tariff-free. Some sensitive products remain excluded from tariff liberalisation.
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Agriculture and fisheries account for 7-10% of the Andean countries’ GDP (Source: World Bank). The demand for increased productivity and competitiveness is encouraging the adoption of modern farming inputs and technologies. Under UK-Andean Countries Trade Agreement, UK agricultural technologies, machinery, fungicides and fertilisers may enter Andean Countries tariff-free.
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Meals and premixes for animal feed will soon hit 0% tariff to access the Colombian market. Depending on their ingredients, these products may also qualify for tariff-free access to Peru and Ecuador.
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Whisky will benefit from 0% tariff in Colombia in 2023 and tariff-free access already applies in Ecuador and Peru. The Trade Agreement also allows UK gin, beer and wine to access Andean countries tariff-free.
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All UK fishery products (such as hake, salmon and shrimp) already qualify for tariff-free access to the Andean countries.
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British automobiles and cars already have preferential access in Colombia, at a zero-tariff rate. In 2023, these tariffs will also be removed in Peru and, by 2024, all UK vehicles will have tariff-free access to Ecuador.
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There are important opportunities for the Life Sciences sector in the Andean countries, which have a limited local offer and a growing demand for pharmaceuticals and biotechnology. The presence of British pharmaceuticals has increased in the Andean countries, mainly in Colombia, where they already enjoy tariff-free access.
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The Andean countries have a significant pipeline of major projects that are emerging – mainly in the Infrastructure, Mobility and Transportation Solutions, Clean Energy, Fintech and Defence sectors.
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Services provided in the above mentioned sectors benefit from the clear market access and government procurement rules established in the Trade Agreement.
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Moreover, a variety of goods related to the provision of some of those services like power generators and heavy equipment for the construction sector already enjoy tariff-free access to the Andean Countries.
More information
The Department for International Trade (DIT) has overseas staff based in British Embassies, High Commissions, and Consulates across Latin America and the Caribbean (LatAC). Our role is to increase the UK’s prosperity and to champion free trade globally.
If you would like more information on how your business and sector can benefit from this Agreement, contact us if you are:
Interested in the Andean Countries Interested in the UK
Businesses looking for detailed information about tariffs, rules of origin and other conditions that apply to your sector may wish to use the services and tools available at GOV.UK for assisting importers and exporters:
Check How to Export Goods from the UK Trade with the UK
Click below for more detailed information on the UK-Andean Trade Agreement per country and in Spanish.
Acuerdo Comercial Reino Unido - Países Andinos
Published 03/09.
Last updated 25/11.
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