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Act of Lima

Twelfth Andean Presidential Council
Lima, June 10, 2000



The Presidents of Bolivia, Colombia, Ecuador, Venezuela, and Peru met in Lima on June 9 and 10, 2000 at the Twelfth Andean Presidential Council.

During the meeting they placed their commitment to Andean integration on record and expressed their conviction that its intensification would contribute substantially to the efforts of the countries to cope with their development needs and to attain a dynamic and profitable position on the international scene.

At the same time, they reasserted the Community’s choice of an open regionalism, which has given the process the necessary flexibility to develop a Latin American-oriented regional and hemispheric strategy within the world economy. This strategy has made it possible to increase Andean trade, while also improving the potential for national and Community links with other countries and country blocs.

In this connection, they underscored with considerable satisfaction the joint negotiation being advanced by the Andean Community under a single spokesmanship with regard to the Free Trade Area of the Americas and the conclusion of trade negotiations with Brazil and Argentina in the context of the framework agreement signed by the Community countries with Mercosur. They also reaffirmed their willingness to strengthen their relations with the European Union and other blocs.

They expressed their pleasure at the celebration of the 30th anniversary of the Andean Development Corporation, the Andean integration movement’s financial branch and one of the most important and prestigious institutions in Latin America, which that plays a basic role in the financing of the Member Countries’ economic and social development.

The commitments adopted at the Eleventh Andean Presidential Council of Cartagena were reaffirmed in their entirety: formation of the Andean Common Market, implementation of the Common Foreign Policy, development of a social agenda, and execution of a Community policy on border integration and development, together with action aimed at harmonizing and attaining macroeconomic targets.

With those purposes in mind, the Presidents adopted the following:

GUIDELINES:

I. ESTABLISHMENT OF THE ANDEAN COMMON MARKET


1. The Andean Council of Foreign Ministers will exercise the political leadership, in coordination with the Andean Community Commission in the case of trade and investment matters, in forming the Andean Common Market, as a space for the free circulation of goods, services, capital, and people, which is geared towards improving human development in the Member Countries and strengthening their competitive position in the world economy.

2. In accordance with the commitment made at the Eleventh Andean Presidential Council, the Andean Common Market should be operational no later than December 31, 2005.

3. The Member Countries will accordingly carry out an agenda of specific objectives and actions established at the Meetings of the Andean Presidential Council and subject to annual scheduling. The results will be evaluated at the regular meetings of the Andean Council of Foreign Ministers sitting in enlarged session.

4. The Common Market will be advanced through the progressive adoption of commitments under an overall approach with an appropriate level of political cooperation.

5. In the case of the unimpeded circulation of goods, priority will be placed on consolidating the free trade area, effectively removing non-tariff barriers, and perfecting its operation by adopting complementary economic and commercial disciplines. The perfected Customs Union must be in place by 2005.

6. As for the free circulation of services, Decision 439 will be implemented in the terms and with the deadlines specified.

7. The unimpeded circulation of capital, for its part, will be achieved through cooperation and concerted efforts among the national organizations operating in that sector. Removal of barriers to the movement of capital is essential if the Andean Common Market is to operate and grow.

8. The free circulation of people will be addressed progressively by adjusting national provisions to the unique features of the traffic in businessmen, students, tourists, and citizens at large in the respective border regions.

9. Inasmuch as the construction of the Andean Common Market also calls for the progressive harmonization of macroeconomic policies among the Member States, national authorities should take the necessary steps to accomplish this.

10. Complementary cooperation and integration efforts are needed in order for the Andean Common Market to operate fully. These include harmonizing commercial laws and regulations, setting up mechanisms for legal and police cooperation on civil and criminal matters, and establishing mechanisms to reinforce control and supervision in all areas. The Foreign Ministries must take the necessary action in this regard.

11. The Attachment to this Guideline lists the specific objectives for the next twelve months and the actions that must be taken in the medium term to have an operational Andean Common Market in place by the year 2005.

12. Without detriment to the previous Guideline, other actions can be taken for the cited purposes.

II. EXECUTION OF THE COMMON FOREIGN POLICY


13. The start-up of the Common Foreign Policy has revealed the potential created by the joint efforts of the Member Countries in the regional, hemispheric, and global spheres. We have obtained important results from executing that policy, which underscore the need to continue building up our concerted efforts in international political and economic forums, as well as the Andean Community’s relations with its principal interlocutors.

It is in this connection that we express our pleasure at the signing of Decisions 475 and 476 and charge the Andean Council of Foreign Ministers and the Andean Community Commission to continue carrying out the actions and negotiations prioritized in the Common Foreign Policy working agenda.

We instructed the Andean Council of Foreign Ministers to lay down policy guidelines and identify specific actions for cooperation among the Member Countries in fighting the worldwide problems of drugs and corruption more intensely, reinforcing security and confidence-building measures, and furthering the effective protection of human rights and the practice of democracy in the Andean subregion.

Andean Community negotiations with other countries and country blocs must be conducted under the principle of open regionalism and be situated within the context and priorities of Andean Common Foreign Policy.

14. Given their situation and the need to safeguard their interests, we must join efforts to defend the interests of Andean Communities that have settled outside the region for one reason or another when their human rights, individual guarantees, or rights under internationally recognized labor provisions are threatened, and protect them against any racist or xenophobic acts.

Consular authorities must therefore immediately embark upon a cooperation program for exchanging experiences and broadening the coverage of consular services that protect Andean citizens by integrating those services, whenever possible and necessary, and communicate to the authorities of the country of residence of our Andean compatriots the concern of the Andean countries regarding the observance of the rights to which those people are entitled.

III. IMPLEMENTATION OF THE SOCIAL AGENDA

15. In light of the important contribution integration is called upon to make to our efforts to contribute to our countries’ social progress and notwithstanding any actions that may be taken for that purpose under the leadership of the Andean Council of Foreign Ministers, the institutions belonging to the Andean Integration System must submit to that Council for approval by the next meeting of the Andean Presidential Council, a program of specific activities that can be carried out within their respective areas of jurisdiction for the purpose of consolidating Andean integration and helping to develop the Andean Social Agenda, particularly the agenda for implementation in the border regions.
 
16. We wish to emphasize the work done by the Andean Science and Technology Committee, in particular the creation of the Data Bank on Research and Development Projects and the design of the Community Action Program on Science and Technology PACYT-2000. In this regard, we consider it necessary to entrust the responsible national authorities with continuing the efforts to attain a steady international influence in order to attract the cooperation of agencies and other institutions specialized in the funding of such projects.

17. Aware of the need to continue moving ahead with the actions entrusted to the Ministries of Labor in the context of the Andean Social Agenda agreed upon at the Eleventh Meeting of the Andean Presidential Council, we decided to establish the Advisory Council of Labor Ministers, which will submit the results of its efforts to the Andean Council of Foreign Ministers.

18. Given the importance to the subregion’s health, of the Andean Epidemiological Surveillance and Emergency and Disaster Coordination Network, recently mobilized in response to natural disasters in Colombia and Venezuela, we instructed the Hipólito Unanue Convention to jointly establish, with the Andean Community General Secretariat and the Andean Development Corporation, mechanisms for the expansion and technological development of that network so that it will be equipped to meet the health challenges posed by the twenty-first century,

IV. OTHER ASPECTS OF THE INTEGRATION PROCESS


19. The guidelines and provisions emanating from the Andean Council of Foreign Ministers call for the execution of programs to develop the Border Integration Regions. Those programs will be prepared with the support of the General Secretariat and any financial assistance that may be obtained from the CAF, IDB, and other cooperating institutions or countries. To help in setting up those programs, the Data Bank on Border Development Projects will be established in the General Secretariat with IDB and CAF support. The Regional Consultative Group will study the resulting projects in order to define a strategy for their financing.

20. In light of the importance of physical integration within the Andean subregional space and of the need to advance toward the implementation of a Community Physical Integration Policy, we instructed the Andean Development Corporation (CAF) and the Andean Community General Secretariat to make a study that will allow the Andean Council of Foreign Ministers to draw up that policy during the second half of this year.

V. SPECIAL MEETING OF THE ANDEAN PRESIDENTIAL COUNCIL

We decided that the Andean Presidential Council would hold a special meeting in November or December 2000 to implement the agreements reached at the Eleventh Andean Presidential Council in Cartagena for addressing the following issues:

The future of the Andean Community’s political integration.
Evaluation and coordination of foreign policy actions.
Treatment of the "volatile capital" problem.
Follow-up of the Andean Social Agenda.
In testimony of which, we sign this Act on June tenth of the year two thousand.

(Signed)
HUGO BANZER SUAREZ
President of the Republic of Bolivia

(Signed)
ANDRES PASTRANA ARANGO
President of the Republic of Colombia

(Signed)
GUSTAVO NOBOA BEJARANO
President of the Republic of Ecuador

(Signed)
ALBERTO FUJIMORI FUJIMORI
President of the Republic of Peru

(Signed)
HUGO CHAVEZ FRIAS
President of the Bolivarian Republic of Venezuela



APPENDIX 1

INDICATIVE ACTIONS FOR THE FORMATION OF THE ANDEAN COMMON MARKET


In building the Andean Common Market, the Member Countries will execute the following program of illustrative actions, which will be subject to periodic review:

I. PERFECTION OF THE TRADE IN GOODS
A. Removal of Barriers


1. Perfect the working of the Andean Agricultural Health System by developing Community provisions, improving national bodies with jurisdiction in that area, and encouraging them to establish closer relations with each other.

2. Develop Andean provisions to ensure that national systems of standardization, conformity verification, and metrology, together with product control and surveillance practices, comply with that System and do not constitute obstacles to trade.

3. Take measures to harmonize and facilitate customs procedures.

B. Andean Common Agricultural Policy

1. Adopt and carry out an Andean Common Agricultural Policy.

C. Common External Tariff

1. Design and adopt a Common External Tariff (CET) in order to perfect the customs union.

D. Smuggling and other customs crimes

1. Perfect the procedures and system for exchanging information in the fight against smuggling and other customs crimes, on the basis of the Decision adopted.

II. PERFECTION OF THE TRADE IN SERVICES

A. Liberalization of Services

1. Ensure the complete liberalization of services and the growth of intra-Community trade in services
.
B. Transportation

1. Perfect and implement the Community transportation policy.

III. UNIMPEDED MOVEMENT OF CAPITAL

1. Remove barriers to the movement of capital within the Andean Community.

2. Adopt a system of cooperation between Member Country Stock Exchanges.

IV. FREE CIRCULATION OF PEOPLE

A. Free circulation


1. Accept the use of a National Identification Document as the only requirement for the free circulation of people from one Community country to another, starting with Andean tourists.

2. Set up an integrated subregional identification system for standardizing national identification documents.
 
3. Establish mechanisms to facilitate residency and the acceptance of job offers.

4. Approve common provisions on labor, retirement, health, and job safety.

5. Approve the right to residency.

V. HARMONIZATION OF MACROECONOMIC POLICIES

1. Define and implement criteria for macroeconomic harmonization.

2. Study a mechanism for stabilizing economic crises.

VI. BORDER INTEGRATION AND DEVELODPMENT

1. Create a Multilateral Fund for Border Integration Projects.

2. Promote programs for developing border integration regions created in the Andean Community.

3. Develop and perfect the Andean Community Data Bank on Projects and promote the adoption of mechanisms for executing projects approved by the competent authorities.

VII. OTHER ACTIONS COMPLEMENTARY TO THE INTEGRATION PROCESS

A. Civil Area

1. Speed-up and streamline the system of cross-border notification or transfer of legal or extra-legal documents.

2. Take measures to obtain cooperation in collecting evidence.

3. Facilitate the acceptance and execution of verdicts on civil and commercial matters.

4. Promote the compatibility of provisions applicable in the Member States to conflicts over laws and jurisdictions.

B. Criminal Area

1. Facilitate the creation of an Andean Legal Network consisting of points of legal contact among the Member Countries.

2. Adopt an Andean Framework Agreement on the Transfer of Condemned Persons from one Member Country to another.

C. Commercial Area

1. Harmonize commercial legislation, particularly that referring to Business Associations.

D. Police Area

1. Approve measures for cooperation and joint initiatives on matters such as the training and exchange of officials, use of equipment, and scientific police investigation.

2. Promote interlinkage agreements between competent authorities.

3. Create an integrated subregional network on the investigation and documentation of organized crime and the preparation of the pertinent statistics.

APPENDIX 2

2000-2001 ACTION PROGRAM FOR THE ESTABLISHMENT OF THE COMMON MARKET

I. PERFECTION OF THE TRADE IN GOODS


A. Removal of Barriers

1. Adopt a provision for the mutual acceptance of quality certifications based on the suitability of the systems for evaluating conformity.

2. Take measures to simplify customs procedures.

3. Harmonize health legislation.

4. Conduct a Community program to improve competitiveness in production by taking advantage of economic complementarities among Member Countries.

B. Andean Policy on Competition

1. Amend the provisions on dumping and subsidies for imports from non Member Countries of the Andean Community.

2. Approve the amendment of provisions to prevent or correct distortions in competition caused by practices in restraint of free competition.

C. Adopt a Community regime for Public Sector Procurements.

D. Update the Community Industrial Property Regime.

E. Common Andean Agricultural Policy

1. Adopt the Common Agricultural Policy.

F. Common External Tariff

1. Complete the studies for adoption of the CET covering the Andean System of Price Ranges, Special Customs Regimes, and anti-dumping and countervailing duties. In doing so, it is necessary to bear in mind the multilateral commitments assumed by the Member Countries and the negotiations under way with third parties.

G. Safeguards

1. Conduct studies to evaluate the economic impact of Andean safeguards, with a view to their perfection, and draw up a proposal for adopting a Community agricultural safeguard mechanism applicable to third parties.

II. PERFECTION OF THE TRADE IN SERVICES

A. Liberalization of Services

1. Complete the inventory of restrictions on services and adopt the corresponding regulatory provisions.

B. Transportation

1. Complete the inventory of measures that are detrimental to the sector, with a view to deregulating intra-Community international sea transportation.

2. Establish principles and criteria to facilitate the cross-border flights of subregional companies, so that aeronautical authorities may bilaterally designate the points of operation based on those criteria.
 
3. Guarantee the unimpeded circulation of vehicles authorized to provide international road transportation service in the Andean Community by removing the restrictions on free circulation.

4. Draw up Technical Regulations on the Road Transportation of Dangerous Cargoes.

5. Start studies for developing a Community Policy on Transportation by all modes.

6. Update the Provisions for use of the Andean Road System.

C. Telecommunications and Information Technologies

1. Approve Community Provisions on Electronic Trade.

2. Harmonize the requirements for granting Authorized Licenses and the procedures used by Telecommunication Services for common definitions.

3. Establish Community standards for interconnecting Member Countries.

4. Harmonize the use of the Radio Spectrum, Numbering, and Numerical Portability.

5. Set up Centers of Excellence in the Andean Community.

6. Allocate Satellite Broadcasting and Satellite Fixed Service Plans.

7. Approve a Program to promote the Global Information Society.
 
D. Financial Services

1. Draw up and adopt the Decision to Harmonize and Liberalize Financial Services.

E. Professional Services

1. Adopt the timetable for accepting professional licenses.

III. FREE CAPITAL MOVEMENTS

1. Complete the studies for establishing a Cooperation System of Member Country Stock and Commodity Exchanges.

IV. FREE CIRCULATION OF PEOPLE

1. Accept each Member Country’s national identification documents at the Community level.

2. Prepare an inventory of obstacles and barriers to the unimpeded circulation of persons between Member Countries and their residency.

3. Harmonize migratory requirements for students, businessmen, investors, and artists.

4. Make a comparative study of the Member Countries’ socio-labor legislation.

V. MACROECONOMIC POLICY HARMONIZATION

1. Identify conditions that will make it possible to design a process for harmonizing Member Country macroeconomic targets.

2. Develop a Common Regime for Promoting and Protecting Investments.

3. Draft a proposal for updating the Decision on double taxation.

VI. BORDER INTEGRATION AND DEVELOPMENT

1. Approve a Community provision on Border Integration Regions.

2. Set up Binational Centers for Border Service.

VII. OTHER ACTIONS COMPLEMENTARY TO THE INTEGRATION PROCESS

1. Approve framework agreements on civil matters and letters rogatory.

2. Adopt an Andean Framework Agreement on judicial assistance in criminal matters.

3. Approve an Andean Framework Agreement on extradition between Member Countries.

4. Create an Andean Police Network to reinforce cooperation in the fight against drugs, the slave trade, organized crime, and the trade in stolen vehicles.

5. Strive to harmonize provisions, particularly for fighting organized crime.

6. Adopt mechanisms for cooperation between polices forces and other specialized services with coercive functions, in crime prevention, placement, and investigation operations.

7. Reinforce police cooperation in the processing and exchange of pertinent information.

APPENDIX 3

2000-2001

MINIMUM COMPLEMENTARY WORK PROGRAM FOR THE INTEGRATION PROCESS


I. ENVIRONMENTAL CONSERVATION


1. Convene a meeting of high-level national environmental authorities in order to conclude activities oriented towards the adoption of a strategy on environmental conservation and sustainable development.

II. MISCELLANEOUS MATTERS OF IMPORTANCE TO THE INTEGRATION PROCESS


1. Perfect the Community strategy for negotiation with the FTAA.

2. Prepare a program of specific actions to be taken by Andean Integration System bodies and institutions to reinforce the integration process and the Common Market.

3. Design and execute a program to boost the competitiveness and complementarity of Andean production sectors and to help develop new business in the service sector.

4. Promote strategic alliances for defining an Entrepreneurial Promotion Program that would exert an influence in countries and regions that have signed commercial and cooperation agreements with the Andean Community.

5. Intensify the Community Action Program on Science and Technology, thereby permitting the growth of internally generated science, the promotion of technological innovation, and the enhancement of public and private institution efficiency by establishing international cooperation agreements and arrangements for that purpose.

6. Disseminate the challenges and accomplishments of integration among the Andean nations in order to create an integration culture, using the available media for that purpose.