LIMA, PERU, April 14 (BERNAMA-NNN- MERCOPRESS) -- European Union Trade Commissioner Karel De Gutch together with Colombian Minister for Trade Sergio Diaz-Granados Guida and Peruvian Deputy Minister for Foreign Trade Carlos Posada Ugaz signed a trade agreement between the EU, Colombia and Peru.

The agreement is estimated to be worth overall half a billion Euros in duties saved and will open up markets on both sides and increase the stability and predictability of the trading environment, local media reported.

"This agreement is a milestone in our trade relations with the Andean region and creates the right framework to boost trade and investment on both sides", said Commissioner De Gucht in Brussels.

"It creates a foothold for European business in the area and an anchor for structural reforms in the countries concerned. This agreement also recognises that the EU partnership with Colombia and Peru is based on the respect of democratic principles and fundamental human rights." The next step for the trade agreement is the process of translation into all EU languages, before it will be subject to the approval by EU Member States and the European Parliament.

Once fully implemented, the Agreement will eliminate tariffs in all industrial and fisheries products, increase market access for agricultural products, improve access to public procurement, services and investment markets, further reduce technical barriers to trade, and establish common disciplines including on intellectual property rights, transparency and competition, sources said.

The proposed deal also includes a far-reaching agreement on the protection of human rights and the rule of law as well as commitments to effectively implement international conventions on labour rights and environmental protection.

Civil society organisations will be systematically involved to monitor the implementation of these commitments, which will also be subject to an arbitration system.

Some of the key benefits of the agreement include: The agreement will open up market opportunities for a number of key export industries of the EU which will benefit from the removal of tariffs. For example it is worth over 33 million for the automotive and car parts sector, around 16 million for chemicals and over 60 million for textiles. Other noticeable tariff reductions will be on pharmaceutical and telecommunication products.

The EU will open its market to exporters from Peru and Colombia by committing to an immediate liberalisation in industrial and fisheries products as well as substantial tariff concessions in agriculture. This is expected to have a direct impact on growth and jobs for the two countries, sources said.

The agreement establishes a set of disciplines which go beyond those agreed in the multilateral framework on non-tariff barriers to market access, competition, transparency and intellectual property rights among others - allowing in particular for the protection of over 200 geographical indications on the Colombian and Peruvian markets.

The agreement will promote internationally agreed best practices while securing a transparent, non-discriminatory and predictable environment for operators and investors via a mediation mechanism designed to address non-tariff barriers and - if necessary - an advanced bilateral dispute settlement mechanism.