Tariff treatment for goods originating from Ecuador

PURPOSE: as from 1 January 2015, to maintain the level of duty rates applicable to Ecuador to those which apply from the date of initialling of the Protocol of Accession of this country to the Trade Agreement concluded between the EU and Colombia/Peru.

LEGISLATIVE ACT: Regulation (EU) No 1384/2014 of the European Parliament and of the Council on the tariff treatment for goods originating in Ecuador.

CONTENT: on 17 July 2014, the negotiations were concluded with Ecuador for its accession to the Trade Agreement concluded between the EU and Colombia/Peru. As a result of these negotiations, a Protocol of Accession by Ecuador to the Agreement was initialled between the parties.

In order to avoid unnecessary trade disruption pending the completion of the procedures for the approval and application of the Protocol of Accession, the Regulation ensures that customs duties applied on the date of initialling of the Protocol of Accession are not increased and that no new customs duties are applied on products originating in Ecuador.

The Regulation provides for the maintenance of the level of duty rates applicable to goods originating in Ecuador on 12 December 2014 as from 1 January 2015.

The extension of the current trade preferences is conditional on Equator’s respect of five conditions:

• comply with the rules of origin,
• abstain from introducing new duties or charges or restrictions for imports from the Union,
• maintain the ratification and effective implementation of core international conventions on human and labour rights, environmental protection and good governance,
• cooperate with the Commission in providing the requested information on the compliance with the above conventions,
• continue its efforts for the signing and ratification of the free trade agreement with the EU.

In the case of non-compliance, the Commission may adopt implementing acts in order to suspend the tariff treatment temporarily, in respect of all or certain goods originating in Ecuador.

A safeguard clause would enable the Common Customs Tariff duties to be applied with regard to any goods originating in Ecuador which cause, or threaten to cause, serious difficulties to Union producers of like or directly competing products, subject to an investigation by the Commission.

ENTRY INTO FORCE: 31.12.2014.

APPLICATION: from 01.01.2015. This Regulation should be applied until six months after the entry into force or date of provisional application of the Protocol of Accession, and until 31 December 2016 at the latest.