Peru and Colombia sealed a Multiparty Trade Agreement – often simply referred to as a Free Trade Agreement (FTA) – with the European Union (EU) late February.

European Trade Commissioner Karel De Gucht mentioned that the FTA “contains the necessary ingredients to anchor Peru and Colombia’s own reform agenda and their choice of an open economy.” He also emphasised that the agreement includes obligations “to ensure an effective application of domestic labour and environment laws”. However, some European non-governmental organisations feel doubtful about its effectiveness.

Sensitive topics and implementation
Human rights concerns have been one of the most sensitive topics in the negotiation for both blocs. Alejandra Alayza, coordinator of the Peruvian Network for Equitable Globalisation (RedGe) maintained that some European political parties, such as the Green Party, feel the agreement has been signed “too quickly” and that the human rights situation in Colombia, particularly, has been dismissed.

Martín Perez, Peruvian minister of Foreign Trade and Tourism, announced that the FTA would be signed by both parties at the VI EU-Latin American and Caribbean Summit to be held in Madrid this May. However, because of its complexity, the FTA would not come into force until early 2012, as the agreement has to be approved by the 27 member states and translated into the 23 languages of the European Union.