2018

FREE TRADE AGREEMENT

PERU- COSTA RICA

INTEGRANTS NEGOCIOS
INTERNACIONALES
 ISRAEL PÉREZ RAMÍREZ.
 Free Trade Agreement Perú- Costa Rica

INDEX:

- INTRODUCTION 2

- MARKET PERÚ-COSTA RICA (¿WHY INVEST IN PERÚ AND COSTA RICA) 3

- INVESTMENT 5

- IMPORTANCE OF FTA PERÚ – COSTA RICA 8

- FACILITATION OF COMMERCE AND CUSTOMS PROCEDURES 11

- SANITARY AND PHYTOSANITARY MEASURES 17

- OBSTACLES TO COMMERCE 20

- COMMERCIAL DEFENSE 22

- OBJECTIVES OF THE FTA 23

- COMPETITION POLICY 24

- DISPUTE SETTLEMENT 25

- ANALYSYS OF EXPORTS AND IMPORTS 26

- CONCLUSIONS 31

1
 Free Trade Agreement Perú- Costa Rica

Introduction

Free Trade Agreement between the Government of the Republic of Costa

Rica and the Government of the Republic of Peru

Current Situation

The treaty was signed by both countries on May 26, 2011 in Costa Rica and was presented to the
Legislative Assembly on June 13 of that same year. It was affirmed unanimously by the Permanent
Special Commission on International Relations and Foreign Trade. Currently this agreement is in
force from June 1, 2013.

This Treaty opens a market of 30 million people, with an increasing purchasing power, with
geographical proximity, with consolidated transport routes and with which language and customs
are shared, which gives a great projection to small and medium enterprises. It will also create a legal
framework with clear, stable and transparent rules to regulate trade between both countries,
allowing to establish a solid foundation for the construction and development of a long-term
commercial relationship.

The Treaty, in addition to consolidating the access of Costa Rican products that are currently
exported to the Peruvian market, establishes favorable access conditions for products such as meat,
palm oil, chocolates and cocoa products, tea, dietetic products, milk-based beverages and
powdered drinks. Additionally, it will contribute to foster an enabling environment to increase
investment flows between both countries.

2
 Free Trade Agreement Perú- Costa Rica

Market Perú-Costa Rica

Trade with Peru has increased in the last years. While in 2012 US $ 64.4 million was traded with this
country, by 2016 the trade reached a total of US $ 81 million.

This Treaty is of great projection for small and medium-sized Costa Rican companies, since it opens
a market of approximately 30 million people, almost six times larger than the Costa Rican market

Exports

Total value during 2016, US$ 20 millones

Main products

Food preparations; medicines; paper or cardboard for recycling; metal caps and plugs; new
tires; rigid PVC pipes; preparations for infant feeding; gaskets or rubber gaskets; sorting
machines for grains or seeds; living plants.

3
 Free Trade Agreement Perú- Costa Rica

Imports

Total value during 2016, US$ 61 millones

Main products.

Plastic films; seeds for sowing; animal feed; hygienic articles; fresh grapes; ceramic tiles or
plates; food preparations; newspapers and publications; plastic bags.

Investment

During the period 2012-2013, investment from Peru was US $ 11.5 million, 0.2% of the total received
from the world in those three years. As of 2014, the amount of investment from Peru was US $ 7.4
million. The main sector that recorded investment flows was real estate, in 2012 it comprised
around 80% of Peruvian investment and in 2013 it covered 100%.

4
 Free Trade Agreement Perú- Costa Rica

Investment
Costa Rica has managed to attract increasing and accelerated flows of foreign direct investment
(FDI), thanks to a robust platform for export, different efforts to ensure the consistency and effective
application of its trade and investment policies, the impetus to implement improvements in the
business climate and the promotion of a competitive, safe and sound environment for foreign
investment.

While in the period 1991-1995, Costa Rica attracted a total of US $ 1,286 million, for an annual
average of $ 257 million, in 2012, the FDI amounted to US $ 2,265 million, exceeding by 13.3% the
goal proposed for that period (US $ 2,000 million) and reflecting a growth of 5.1% compared to the
previous year, when US $ 2,156 million were attracted to the country.

5
 Free Trade Agreement Perú- Costa Rica

FREE TARIFF PRODUCTS

With the FTA, Costa Rica will be positioned among the 30 most important trading partners of Peru,
to this we can add that Costa Rica is in negotiations to form part of the Pacific Alliance, which would
offer greater benefits to businessmen and to the nation in general.

The reduction of tariff barriers are at different levels, from this year, you can export a group of tariff-
free products, while others will be phased out gradually, some will reach zero tariff within five years
and others will be delayed. Between 10 and 15 years The category "A" are those that can be
exported from the beginning with zero tariff, the category "B5", it will take five years, the category
"B10", it will take ten years, the category "B12", about twelve years and the category "B15" will take
fifteen years.

Among the products that can be exported to Costa Rica free of duty are:

 Asparagus (Fresh, prepared and frozen)

 Oranges and Tangerines
 Evaporated milk and condensed milk
 Cheese type “Cheddar”
 Fresh Flowers
 Cocoa and its derivatives
 “Bond” paper
 Handicrafts
 Jewelry
 Precious stones
 Wool
 Silk
 Products of the textile and clothing sector

6
 Free Trade Agreement Perú- Costa Rica

Within the framework of the entry into force of the free trade agreement, Costa Rica has placed a
PROCOMER trade promotion office in Lima. In addition to exporting products, the treaty provides
benefits and incentives on investments entering Peru from Costa Rica and vice versa.

ANNEX

Entities to issue certificates of origin

7
 Free Trade Agreement Perú- Costa Rica

IMPORTANCE OF SIGNING FREE TRADE TREATIES

The Free Trade Agreements are part of a long-term commercial strategy that seeks to consolidate
markets for Peruvian products in order to develop a competitive exportable supply, which in turn
generates more and better jobs. Experience shows that the countries that have achieved the most
in recent years are those that have successfully joined international trade, thus expanding the size
of the market for their companies.
The need to promote trade integration as a mechanism to expand markets is quite clear in the case
of Peru, whose local markets, due to their small size, offer few business opportunities and,
therefore, job creation.

IMPORTANCE OF FTA PERU - COSTA RICA

This treaty is part of the commercial strategy to improve the conditions of access to markets; and
at the same time establish clear rules and disciplines that promote the commercial exchange of
goods and services and investments.

On the other hand, the fishing companies were also benefited since it was agreed that Costa Rica
has flexible rules of origin with the products of the fishery and also with those sensitive products for
Peru protecting the export interests; Another beneficiary sector is aquaculture. Among the products
that were excluded from the negotiation are dairy products, chicken meat, pork, rice, potatoes and
yellow corn.

In relation to trade in services, this treaty guarantees non-discrimination for Peruvian companies
and individuals that require services, so we can say that Peruvian and Costa Rican companies will be
able to compete under the same market conditions..

It should also be noted that the FTA with costa rica will allow many export products, in which it has
competitive advantages, to enjoy preferential access to our market. Among them we can mention
turkey meat, sardines, evaporated milk, artichokes, garlic, mangoes, tangerines, lemons, grapes,
paprika, among others..

8
 Free Trade Agreement Perú- Costa Rica

Similarly, Costa Rica's main export products such as medicines, caps, switches, splicing devices,
electrical conductors, among others, may enter Peru free of the payment of duty within a period
not exceeding 10 years. This will favor the national industry and the final consumer.

This Treaty means a positive tool to promote bilateral trade between Peru and Costa Rica, mainly,
it seeks to benefit SMEs, who are constantly looking for nearby and related destinations to place
their products with added value.

The main products that Peru exported to Costa Rica during 2012 were plates, sheets and sheets of
plastic, frozen fillets of fish, preparations for feeding animals and security wicks.

The construction materials sector already has experience in this market, as well as textiles. Another
area such as metalworking has opportunities in that country, thanks to its specialization in the
manufacture of machines for stone crushing that can be adapted to the Costa Rican food industry.

After the signing of the FTA between Peru and Costa Rica, the sister country opened a commercial
office in Lima to take advantage of the connection with our economy.

MAIN RESULTS OF THE FTA WITH PERU

Having achieved that the goods produced under the free zone enjoy the tariff preferences of the
treaty. This greatly improves the attractiveness of investing in Costa Rica, by expanding its export
platform for high-tech products, with free access to the Peruvian market.

On the other hand, as a result of the negotiations, the FTA managed to accumulate origin with
imports from other Central American countries, including Panama, as well as from third countries
with which we have free trade agreements. This means that all the imported inputs that we use for
Costa Rican final products, will be considered national if those inputs come from countries with
which both countries, Peru and Costa Rica, have free trade agreements

9
 Free Trade Agreement Perú- Costa Rica

The Wide Commercial Platform of Peru

This is understood because Peru has a FTA platform that is not only similar but also broader than
Costa Rica, with FTA with the United States, Singapore, Canada, China and the EFTA countries, the
Early Harvest Protocol signed with Thailand and the deepening of the Economic Complementation
Agreement (ACE) with Chile, as well as negotiations to deepen the ACE with Mexico and the signing
of a Free Trade Agreement with Japan. In addition, Peru has concluded the Negotiation Agreement
with the European Union. At the Latin American level, Peru is a member of the Andean Community
of Nations, which groups it together with Bolivia, Ecuador and Colombia. Within the framework of
the Latin American Integration Association (ALADI), Peru has an Economic Complementation
Agreement (ACE) with MERCOSUR. Since 1998, Peru is a full member of the Asia Pacific Cooperation
Forum (APEC).

The wide commercial platform of Peru, with access to all the markets of South America and the main
Asian markets, allows us to understand the dynamism that the rules of accumulation of origin could,
in turn, print to high-tech Costa Rican exports that serve as an input for the Peruvian industry.

This treaty has 19 chapters, whose structure and content is very similar to other treaties already in
force in Costa Rica, and covers issues related to market access, rules of origin, customs procedures,
customs cooperation, sanitary and phytosanitary measures, technical obstacles to trade,
competition policy, commercial defense, public procurement, intellectual property, investment,
services, temporary entry of business persons, dispute resolution and institutional arrangements.

COMMERCIAL OPPORTUNITIES

Costa Rica being a country with a population greater than 4.8 million and a GDP of USD 57.44 million.
It becomes a country with a potential development. Due to this and the enormous diversity of the
productive potential of Peru. Costa Rica offers great opportunities and niche markets for the
economic sectors of Peru, thus becoming a strategic trading partner.

The opportunities that are rescued are being able to negotiate with a market with a considerable
number of inhabitants and with an increasing purchasing power with which we share common
objectives of development of growth of trade and investments, the same language and customs,
besides that, we offer advantages in terms of export logistics due to having consolidated transport
routes and facilitating export operations.

10
 Free Trade Agreement Perú- Costa Rica

However, the agricultural sector is becoming an attractive development sector for Peruvian exports,
generating advantageous opportunities to expand markets and cover new market segments that
have not been addressed.

FACILITATION OF TRADE AND CUSTOMS PROCEDURES

Publication

-Each Party will publish, including on the Internet, its legislation, regulations, and customs
procedures.

- Each Party shall designate or maintain one or more points of consultation to address the concerns
of persons interested in customs matters, and shall make available in

Internet information regarding the procedures that must be followed to formulate such
consultations.

- As far as possible, each Party shall publish in advance any regulations of general application on
customs matters that it proposes to adopt, and shall offer interested persons the opportunity to
make comments prior to their approval.

-Each Party will endeavor to ensure that its legislation, regulations and customs procedures are
transparent, facilitate trade and are not discriminatory.

-The information regarding rights and charges related to the provision of services that affect foreign
trade provided by a Party, must be published, including on the Internet.

Dispatch of goods

In order to facilitate trade between the Parties, each Party shall adopt or maintain simplified
customs procedures for the efficient clearance of goods..

11
 Free Trade Agreement Perú- Costa Rica

Each Party shall adopt or maintain procedures that:

 Provide that the clearance of merchandise is done within a period not greater than that
required to ensure compliance with its customs legislation, and to the extent possible, that
the merchandise be dispatched within the following forty-eight (48) hours upon arrival; and

 Allow merchandise to be dispatched at the point of arrival, without mandatory transfer to

warehouses or other premises, except when the customs authority needs to exercise
additional controls or for reasons of Infrastructure.

Automation

Each Party shall endeavor to use information technology that expedites and expedits the
procedures for the clearance of goods. When choosing the information technology to be used for
this purpose, each Party:

 Make efforts to use internationally recognized standards, standards and practices.

 It will make electronic systems accessible to users of its customs.
 It will allow the remission and electronic processing of information and data before the
arrival of the merchandise.
 Use electronic and / or automated systems for the analysis and management of risks.
 Work on the development of compatible electronic systems between the customs
authorities of the Parties, in order to facilitate the exchange of international trade data
between them.
 Work to develop the set of common data elements and processes in accordance with the
Customs Data Model of the World Customs Organization (hereinafter OMA), and the
recommendations and related guidelines of the WCO.

Each Party shall adopt or maintain, as far as possible, procedures that allow an expeditious control
of the means of transport of merchandise that leave or enter its territory..

12
 Free Trade Agreement Perú- Costa Rica

Administration or Risk Management

Each Party shall endeavor to adopt or maintain risk management or administration systems that
allow its customs authority to focus its inspection activities on high-risk goods, and to simplify the
clearance and movement of low-risk goods, respecting the confidential nature of the information
that is obtained through such activities.

In applying risk management or management, each Party shall inspect the imported goods on the
basis of appropriate selectivity criteria, avoiding the physical inspection of all merchandise entering
its territory, and insofar as possible, with the help of non-intrusive inspection instruments.

Transit of goods

Each Party shall grant free transit to the goods of the other Party, in accordance with Article V of
the GATT 1994, including its interpretative notes.

Fast delivery shipments

Each Party shall adopt or maintain special customs procedures for fast delivery shipments, while
maintaining adequate systems of control and selection according to their nature.

The procedures referred to in paragraph 1 shall:

(a) provide for separate and expedited customs procedures for fast delivery shipments;

(b) foresee the presentation and processing of the necessary information for the dispatch of a fast
delivery, before the arrival of said shipment;

(c) allow the presentation of a single cargo manifest that covers all the goods contained in a
shipment transported by a fast delivery service, through electronic means;

13
 Free Trade Agreement Perú- Costa Rica

(d) provide for the dispatch of goods with lower risk and / or value with a minimum of
documentation;

(e) under normal circumstances, provide for the dispatch of fast delivery shipments within six hours
after the presentation of the necessary customs documents, provided that the shipment has arrived;
and

(f) under normal circumstances, provide for no tariffs, for shipments of fast delivery of
correspondence, documents, newspapers and periodicals, without commercial purposes.

Authorized Economic Operator

The Parties will promote the implementation of Authorized Economic Operators in accordance with
the WCO Standard Framework for Securing and Facilitating Global Trade (known as the Normative
Framework SAFE), to facilitate the clearance of their merchandise. Their obligations, requirements
and formalities shall be established in accordance with the national legislation of each Party.

SINGLE FOREIGN TRADE WINDOW (VUCE)

The Parties will promote the creation of a Single Foreign Trade Window for the facilitation and
facilitation of trade. To the extent possible, the Parties shall seek interconnection between their
Foreign Trade Single Windows.

Review and Appeal

Each Party shall ensure, with respect to administrative acts in customs matters, that natural or legal
persons subject to such acts have access to:

- An administrative review level, which is independent of the official or office that issued such an
act, at least a level of judicial review.

14
 Free Trade Agreement Perú- Costa Rica

Sanctions

Each Party shall adopt or maintain measures that permit the imposition of administrative sanctions
and, where appropriate, criminal sanctions, for the violation of customs laws and regulations,
including those governing tariff classification, customs valuation, origin, and applications for
preferencial treatment.

Advance Resolutions

Each Party shall issue in writing an advance ruling prior to the importation of a good into its territory,
when an importer in its territory, or an exporter or producer in the territory of the other Party1 has
requested it in writing, with respect to:

- The tariff classification;

- The application of customs valuation criteria for a particular case, in accordance with the
application of the provisions contained in the WTO Customs Valuation Agreement

Committee on Trade Facilitation and Customs Procedures

The Parties establish a Committee for the Facilitation of Trade and Customs Procedures (hereinafter
the Committee), composed of representatives of each Party.

The functions of the Committee shall include:

 Monitor the implementation and administration of this Chapter and Chapter 5 (Cooperation
and Mutual Assistance in Customs Matters).
 Report to the Commission on the implementation and administration of the Chapters
referred to in subparagraph (a), as appropriate.
 Treat promptly the matters that a Party proposes regarding the development, adoption,
application or execution of the provisions of the Chapters referred to in the subparagraph.

15
 Free Trade Agreement Perú- Costa Rica

 To promote the joint cooperation of the Parties in the development, application, execution
and improvement of all the issues concerning the Chapters referred to in the subparagraph,
including, in particular, customs procedures, customs valuation, tariff regimes,
nomenclature customs, customs cooperation, matters related to free zones, mutual
administrative assistance in customs matters, as well as providing a forum for consultation
and discussion for these issues.
 At the request of a Party, resolve questions on any matter arising under the Chapters
referred to in subparagraph (a), within a period of thirty (30) days.
 Deal with any other matter related to the Chapters referred to in the subparagraph.

"Unless the Parties agree otherwise, the Committee shall meet at least once (1) a year, on the date
and according to the agenda previously agreed upon by the Parties. The

Parties shall determine those cases in which extraordinary meetings may be held. "

"Meetings may be carried out by any means agreed by the Parties.

When they are face-to-face, they will be alternated in the territory of each Party, and it will
correspond to the Host Party to organize the meeting. The first meeting of the Committee shall be
held no later than one (1) year after the date of entry into force of this Treaty. "

"Unless the Parties agree otherwise, the Committee shall be permanent and shall elaborate its work
rules. "

"All decisions of the Committee must be made by mutual agreement."

16
 Free Trade Agreement Perú- Costa Rica

SANITARY AND PHYTOSANITARY MEASURES

The objectives are: to protect the life and health of people, animals and preserve vegetables in the
territories of the Parties, facilitate and increase trade between the Parties, addressing and resolving
the problems that arise as a result of the application of the sanitary and phytosanitary measures,
collaborate in the further implementation of the WTO SPS Agreement and create a Committee to
deal transparently with issues related to sanitary and phytosanitary measures and promote the
constant improvement of the sanitary and phytosanitary situation of the Parties.

Rights and Obligations of the Parties

 The Parties may adopt, maintain or apply their sanitary or phytosanitary measures to
achieve an adequate level of sanitary or phytosanitary protection provided that they are
based on scientific principles.

 The Parties may establish, apply or maintain sanitary or phytosanitary measures with a
higher level of protection than that which would be achieved with the application of a
measure based on an international standard, guideline or recommendation, provided that
there is a scientific justification for this.

 Parties must ensure that their sanitary and phytosanitary measures do not constitute a
disguised restriction on trade or create unnecessary obstacles to trade.

SENASA

In order to keep Peru free of pests, the National Service of Agrarian Health - Senasa established the
phytosanitary requirements of necessary compliance in the importation of coffee plants (Coffea
arabica) from Costa Rica.

17
 Free Trade Agreement Perú- Costa Rica

Risk Assessment and Determination of the Appropriate Level of Sanitary and Phytosanitary
Protection

1. The sanitary and phytosanitary measures applied by the Parties shall be based on an
assessment appropriate to the circumstances of the existing risks for the life and health of
people and animals or for the preservation of plants, including products and by-products,
taking into account the relevant standards, guidelines and recommendations of the
competent international organizations.

2. The establishment of adequate levels of protection will take into account the objective of
protecting human, animal and plant health, while facilitating trade by avoiding arbitrary or
unjustifiable distinctions that may become disguised restrictions.

3. The Parties shall be granted the necessary facilities for the evaluation, when required, of
sanitary and phytosanitary services, based on the guidelines and recommendations of
international organizations or other procedures adopted by the Parties by mutual
agreement.

4. In this regard, the Parties agree to instruct the established Committee to determine the
actions and procedures to streamline the risk assessment process in sanitary and
phytosanitary matters.

Transparency

1. The Parties shall apply sanitary and phytosanitary measures in a transparent manner.
For these purposes, the Parties shall notify each other of such measures in accordance with the
provisions of
Annex B of the WTO SPS Agreement.

18
 Free Trade Agreement Perú- Costa Rica

2. Additionally, the Parties will notify each other:

The application of emergency measures or modification of existing measures within a

period not exceeding three (3) days, in accordance with the provisions of Annex B of the
WTO SPS Agreement, as well as health alert situations with respect to the Control of food
subject to trade between the Parties, in which a risk to human health is detected, associated
with its consumption, 6-4 in accordance with the corresponding Codex Alimentarius sanitary
norm in force at the time.
Situations of non-compliance with measures detected in the certification of export products
subject to the application of sanitary and phytosanitary measures, including as much
information as possible, as well as the causes of their rejection.
Cases of pests or exotic diseases or of unusual occurrence.
Updated information at the request of a Party, of the requirements that apply to the
importation of specific products, and report on the status of processes and measures in
process, with respect to applications for access to animal, plant, forestry, fishery and
livestock products. others related to the WTO SPS Agreement by the exporting Party.

Likewise, the Parties shall make their best efforts to improve mutual understanding of sanitary and
phytosanitary measures and their application, and shall exchange information on matters related to
the development and application of sanitary and phytosanitary measures that affect or may affect
trade between the Parties. , with a view to minimizing its negative effects on trade.

Notifications will be made in writing to the contact points established in accordance with the WTO
SPS Agreement. It will be understood by written notification, notifications by mail, fax or email.

19
 Free Trade Agreement Perú- Costa Rica

Obstacles to commerce

¿What issues were negotiated in this agreement?

This treaty regulates the conformation of 13 themes or chapters negotiated in each round; among
these we have, where each party will grant national treatment to the goods of the other party, the
goods will enjoy tariff preferences, as well as a tariff reduction program with a very broad coverage
and that combines favorable conditions for access to products.

Rules of origin, covers the originating goods, thus denominating that which is totally
obtained or produced in the territory of one or both parties, either from non-originating
materials that comply with the change of tariff classification or produced exclusively from
originating materials.

Customs procedures and trade facilitation, where each party shall adopt or maintain
simplified and special customs procedures for the efficient dispatch of goods, in order to
facilitate trade between the parties, and each party shall grant free transit to the goods.

Customs cooperation, where each party should promote joint cooperation for the
development, application, implementation and improvement of customs procedures,
valuation in customs, customs procedures, tariff nomenclature, and matters related to free
zones or special economic zones.

Technical barriers to trade, whose purpose will be to facilitate and increase trade in goods by
identifying, avoiding and eliminating unnecessary obstacles to trade between the parties that may
arise as a result of the application of technical regulations, standards and conformity assessment
procedures. Pacific Institute

Sanitary and phytosanitary measures, applies to all sanitary and phytosanitary measures that could
affect trade between the parties, including food safety, Exchange of animals, products and by-
products of animal origin, plants, products and by-products of vegetable origin.

20
 Free Trade Agreement Perú- Costa Rica

Commercial defense, where each party will keep its rights and obligations in applying rights and
compensatory, when a merchandise originating from one of the parties is being imported into the
territory of the other, in quantities that cause or threaten to cause serious damage to the domestic
industry.

Competition policies, whose purpose will be to ensure that the benefits of trade liberalization are
not adversely affected by anti-competitive practices and promote cooperation between the parties
regarding the application of their respective competition laws.

Cross-border trade in services applies to measures adopted or maintained by one party that affect
cross-border trade in services provided by service providers of the other party.

Investments, where each party shall grant investors no less favorable treatment than that granted,
in similar circumstances, to its own investors in relation to the acquisition, expansion, conduction,
and sale or other disposition of investments in its territory.

Intellectual property, each party will recognize that the protection and enforcement of intellectual
property rights should contribute to the generation of knowledge, the promotion of innovation,
transfer and diffusion of technology and cultural progress.

Public procurement, applies to any measure adopted by a party relating to public procurement of
goods and services.

Dispute settlement, where the parties will at all times seek agreement on the interpretation and
application of this treaty and will make all efforts, through cooperation, consultations or other
means, to reach a mutually agreed solution satisfactory of any matter that could affect its operation.

21
 Free Trade Agreement Perú- Costa Rica

COMMERCIAL DEFENSE

When we talk about tariff treatment corresponds to the application of tariffs that is assigned to a
product, according to the corresponding tariff heading that describes the product and that must be
paid for the nationalization of the product at the time of importation. However, the entry into force
of this treaty grants tariff benefits that will be applied in the import for the consumption of goods
originating in Costa Rica (obtained and entirely produced in said territory). Also, when we speak of
a tariff elimination, the treaty states that "This means that Peruvian products may freely enter the
Costa Rican market and vice versa, however there are restrictions for those products used, because
the treaty states that this tariff elimination will not be applied. For those used goods including those
rebuilt, refurbished, recovered, remanufactured.

¿What document will prove the origin of the goods that will enter the country from Costa Rica?

The documents that will be considered proof of origin to certify that the goods qualify as originating
are: A certificate of origin; A declaration of origin These proofs of origin are valid for 1 year from the
date of issue and must be issued in Spanish.

Certificate of origin

Document presented at the time of import, so that the goods qualify as originating and enjoy the
tariff benefit. In the same way, the exporter of the merchandise must complete and present a
certificate of origin to the authorized entity, which will be responsible for its issuance before or at
the time of the shipment date of the goods to the outside.
This certificate has the particularity of protecting one or more goods from a single shipment, and
must be issued before or at the time of the shipment date of the goods. Not in exceptional cases
can be issued after the date of shipment of the goods, provided that: It has not been issued due to
errors, involuntary omissions, provided it has not been more than 1 year since the export.

It was not accepted during the import clearance for consumption due to technical reasons.

22
 Free Trade Agreement Perú- Costa Rica

Finally, it is established that both parties undertake to deliver all the necessary documentation to
prove the originating status of the merchandise and that it can freely enter, otherwise they will have
to notify in writing to the competent authority of the importing party, with a copy to the authorized
entity, to the competent authority of each party.

OBJECTIVES OF THE FTA

 Generate benefits for both Peruvian and Costa Rican companies and facilitate
bilateral trade between both nations.
 Stimulate the expansion and diversification of trade.
 Eliminate unnecessary barriers to trade and facilitate the cross-border movement of
goods and services.
 Promote conditions of free competition in the free trade zone.
 Increase investment opportunities in the territories of the Parties.
 Properly and effectively protect and enforce intellectual property rights in the
territory of each party.
 Create effective procedures for the application and compliance of the Treaty, for its
joint administration, and for preventing and resolving disputes.

23
 Free Trade Agreement Perú- Costa Rica

COMPETITION POLICY

Its objective is to guarantee trade liberalization by eliminating anticompetitive practices and

promoting cooperation between both parties in the application of their competition
legislation.

a) Legislation and Competition Authorities

- Each party will have effective legislation in relation to anti-competitive
practices for economic efficiency and consumer welfare.
- Each party will have an authority responsible for the application of its
legislation.
- Each party will have autonomy to apply their respective competition
legislation.
- Each party will ensure that its authority complies with the application of the
legislation in a transparent, non-discriminatory and due process.
b) Cooperation
- Importance of cooperation and coordination between the respective
authorities for effective enforcement of legislation.
- Both parties will collaborate in the matters of the application of the
competition legislation regarding the exchange of information and
consultations as long as it does not affect any ongoing investigation.
- Both authorities may sign agreements or cooperation agreements with the
purpose of strengthening cooperation in matters related to competition.

c) Notificactions
- The competition authority of one party shall notify the competition authority
of the other party of any application of its competent legislation that may
affect certain interests of the other party.

24
 Free Trade Agreement Perú- Costa Rica

- As long as it is not contrary to the national legislation of the parties or affects

it, it may take into consideration the observations received from the other
party in its determinations.

DISPUTE SETTLEMENT

a) Cooperation
- The Parties shall endeavor at all times to reach agreement on the interpretation
and the implementation of this Treaty and will make all efforts, through
cooperation, consultations or other means, to reach a mutually satisfactory
solution of any matter that could affect its operation

b) Choice of the Forum

- In case of any dispute arising under this Agreement and under another treaty of
free trade of which the disputing Parties are party or the WTO Agreement, the
complaining Party may choose the forum to resolve the dispute.
- Once the complaining Party has requested the establishment of a panel to under
one of the treaties, the selected forum will be exclusive of the others

c) Panel Selection
- The panel will be composed of three (3) members.
- Each Party, within a period of fifteen (15) days after the date of receipt of the
request for the establishment of the panel, appoint one (1) panelist, propose up to
four (4) non-national candidates of the Parties for the position of panel president
and notify the other Party in writing of the appointment of its panelist and its
candidates proposed to the position of president of the panel.
- If a Party does not designate one (1) panelist within the stipulated period, it shall
be selected by the other Party within five (5) days, among the candidates that have
been proposed for the presidency.

25
 Free Trade Agreement Perú- Costa Rica

ANALYSIS OF EXPORTS AND IMPORTS

Trade Exchange Peru- Costa Rica

The total trade between Peru and Costa Rica registers an annual growth of 15% in the last decade
and shows a favorable balance to the Costa Rican production. Peru-Costa Rica trade in 2013 was
38% higher than the average of the last two years. Exports reached greater growth, concentrated in
non-traditional goods from the chemical and textile sectors.
On the other hand, imports in 2013 reached USD 32 million, concentrating mainly on raw materials
and capital goods. Costa Rica exports to Peru food products, tires, medicines, other needles and
catheters, cannulas and similar instruments, personal care and cleaning items, services and
software.
Then, the following table shows the evolution of Peru-Costa Rica trade:

26
Free Trade Agreement Perú- Costa Rica

27
 Free Trade Agreement Perú- Costa Rica

Main export products

With this new FTA, varieties of products enter freely and enjoy immediate access to the Costa Rican
market, such as turkey meat, sardines, evaporated milk, artichokes, garlic, mangoes, tangerines,
lemons, grapes, paprika, olives, asparagus, cocoa. , jewelry and precious metals, among others. Our
country sells mainly to Costa Rica what are textiles, construction materials, plastics and other
industrial goods, becoming the agricultural, textile, chemical, wood and paper sectors in sectors
with interesting development potential to expand Peruvian exports to Costa Rica and whose
volumes can be increased with the entry into force of this treaty.

Next, in the following chart we will show the main products that were exported in 2016 by Peru

28
Free Trade Agreement Perú- Costa Rica

29
 Free Trade Agreement Perú- Costa Rica

For its part, Costa Rica exports to Peru what are medicines, electrical materials, tires, electrical
cables, plugs and metal covers, paper and cardboard to recycle, services and software. Next, the
following table will show us the main products exported by Costa Rica and that were imported by
Peru:

Principales productos exportados de Costa

Rica Finally, what can be salvaged from trade with Costa Rica is the participation of non-traditional
products that account for 85% 3 of the total exported to that country, among these the agro-
industry, chemical, textile (cotton t-shirt for men or women and sweaters for point of cotton) fishing,
mechanical metal and also non-traditional agriculture that has a certain projection to the Costa
Rican market with balanced feed for animals, which therefore demonstrates that the productive
sectors with added value will be more welcomed in the markets.

2012

30
 Free Trade Agreement Perú- Costa Rica

CONCLUSIONS:

- Finally, the validity of this FTA with Costa Rica, trade will increase at an increasing rate; For
this, our market is very attractive and advantageous for Costa Rican products, especially for
those products with added value and innovative, which contributes in this way to generate
opportunities for SMEs to be internationalized.

- Costa Rica, being a country with high purchasing power and its small size, becomes an
interesting and propitious market to expand the exports of medium and small Peruvian
companies; However, it is important that Peru begin to negotiate trade agreements with
countries even more attractive in volume and opportunities for the Peruvian exportable
offer, and what better than the entry into force of this treaty that becomes a great gateway
to start negotiating and expand markets.

- Both regions have trade agreements with other areas, becoming attractive entry doors to
the world.

- Both regions are complementary in their products and not only competitors.

- Both regions seek emerging markets and new economies to export and import.

31