EU - ANDEAN COMMUNITY
(CAN)
TRADE AGREEMENT
Camilo Tovar
ALOP
CAN Political Context
Colombia - Perú
Ecuador - Bolivia
• Uribe 2002
• Garcia 2006
• Affirm neoliberal
development model
• Shrink State – market
driven development: deregulation, privatisation,
FTA, competitivity
• Social conflict:
authoritarism (Bagua ,
Minga, etc...)
• Evo Morales 2006
• Correa 2007
• Constitutional processes
rupture with neoliberal
• Strengthen State –
regulate market:
nationalisation, regional,
complementarity
• Space and role of social
movement
Differentiation
Different views on
development
Different strategies of
international insertion
• FTAA fails  US FTA with CAN:
– Colombia and Perú signed 2006
– Ecuador and Bolvia pull out (election flag)
– Venezuela pulls out of CAN (2006 – Crisis)
• Tense relations: Colombia vs. Ecuador
Perú vs. Bolivia
EU Political Context
• 2004 Enlargement + EU Constitution 
Lisbon Treaty : LA less priority
• Barroso COM 2004  Lisbon Agenda
Growth and jobs: internal + external market
• Global Europe 2006 (Mandelson)
Competitiveness + business driven
New generation of RTAs/FTAs
Raw materials initiative 2008 (key priority)
EU POLITICAL COMPASS 2008
Eastern block  fast free market approach, slow social rights
Western block  expansion of neoliberal economics,
erosion of some social policies
Additional “pull factors”
• Doha Development Round (WTO)
– 2001  Talks collapse Cancun 2003
– 2005 Deadline missed (Hong Kong)
 extend to end 2006: missed
2008 Geneva: collapse
• EU loosing market share - emerging
economies (China) + US FTA
• EU regional approach to FTAs
EU - ANDEAN COMMUNITY (CAN)
TRADE AGREEMENT
• 1st EU-CAN Coop Agreement 1983  1993
• 2003 Political Dialogue and Coop Agreement
• 2004 EU-LAC Summit  EU: wait for FTA
– EU evaluation of CAN economic integration
• 2006: EU-LAC Summit - Crisis CAN (Venezuela)
• June 2007: CAN Summit Tarija
– Andean Differences  Decision 667 (framework)
• July 2007: Agreed modalities for negotiation
EU “marca la cancha”
• EU format: 3 pillars + region to region
• Trade: classic FTA format (WTO plus)
• Objectives: Strength regional integration
– Social cohesion  Sust. Development
– Free trade
• Asymmetries: “when possible”
– SDT for CAN  mechanism: ≠ speed liberal.
• CAN Consensus base for negotiation
– Possibility of veto (block proposals)
Regional Negotiations
• Complex negotiation process for CAN
– 1st intra-CAN negotiation  position to EU
• Bolivia: innovative proposals
– WG asymmetries and SDT for all agreement
– No “across the board” national treatment
– No further IPR  TRIPS
– Development benchmarks
• COL + PE: accept but not commit
• EU: “accept” but dangerous precedent
• Challenge: new architecture + technical
.
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Sept 2007 – April 2008: 3 rounds
Ecuador: low profile  Quito
Bolivia/Ecuador: ≠ FTA – regional integrat.
Node: position on biodiversity and IPR
CAN Summit Oct 2008  no solution
Peru/Colombia: bilateral FTA (not new)
2009: EU propose Multiparty Trade Agree:
– Only trade, ± bilateral  regional long term
Multiparty Trade Agreement
• Ecuador: yes.. but Agreement for Development
• Bolivia: Out
• Speedy negotiation: 2009 – 2010: 8 rounds
– EU aggresive: US FTA Plus Plus
– Col/Peru: accepting conditions
• Ecuador complex position:
– No clear space for alternatives
– Correa mandate NO FTA
– Banana issue: heavy weight
.
• July 2009 Ecuador pulls out:
– EU comply with WTO rulings on Banana
– Include Polit. Dialogue and Coop
• EU-LAC Summit May 2010:
– Conclude, ambitious FTA EU-Col/Perú
– Defines scenario for Ecuador and Bolivia
• Ahead:
– ratification process Col/Perú
– Ecuador??
Conclusions
• Regional integration further crisis
• EU: satisfied  FTA as they wanted
• Col/Perú: re-affirm dev. Model
– Raw materials export-led model (extractive)
– Open services, public procurement and IPR
– Erosion of State policy space
– Static, long term
– Investment
• Ecu/Bol: struggle for alternatives