Bill 209.

Summary.

The bill approves in full Annex I to Decision No. 112015 of the EFTA–Central America Joint Committee (Comité Conjunto AELC~entroamérica), which contains the protocol for the accession of the Republic of Guatemala to the Free Trade Agreement between the EFTA States and the Central American States. The agreement was signed in Trondheim on June 24, 2013; the protocol was signed in Schaan, Liechtenstein on June 22, 2015. The text would include Guatemala alongside Iceland, Liechtenstein, Norway, Switzerland, Costa Rica and Panama, and amend the agreement’s preamble and its references to annexes.

For trade in goods, the protocol adds reciprocal tariff concessions for agricultural products between Guatemala and Iceland, Norway and Switzerland. Under the agreement, references to concessions granted to or by Switzerland also cover Liechtenstein. It adds Annex XXII on Guatemala’s tariff elimination for nonagricultural products and Annexes XXIII, XXIV and XXV on agricultural products. It also replaces the table defining coverage of nonagricultural products. For coffee, it adds a provision to Annex VI concerning a contribution necessary for exports under the Coffee Law (Ley del Café), Decree No. 19-69, Decree No. 114-63 of the Head of State and Decree Law No. 111-85 of the Head of State. If Guatemala reduces or eliminates export contributions for a nonparty, the protocol requires the same treatment for the EFTA States.

On rules of origin, the text designates the Directorate for Foreign Trade Administration (Dirección de Administración del Comercio Exterior) of the Ministry of Economy (Ministerio de Economía) to issue EUR.1 movement certificates, grant authorized exporter status and verify proofs of origin. It includes Guatemala in provisions and forms under Annex I, its appendices and Annex II, and adds product specific rules of origin for trade between EFTA and Guatemala. It also names that directorate, or its successor, as the competent authority for a provision of Annex VII.

The protocol adds Guatemala’s schedule of specific commitments to Annex XV and adjusts references in Switzerland’s schedule. It adds Guatemala’s most favored nation treatment exemptions and reservations to Annexes XVI and XVIII. For government procurement, it adds central and subcentral government entities, other covered entities, goods, services and construction services to Annex XX. Coverage is subject to the applicable notes and schedules of commitments. The text adds Guatemala’s means of publishing legislation, case law and procurement notices, including the Congress of the Republic of Guatemala (Congreso de la República de Guatemala), the Constitutional Court (Corte de Constitucionalidad) and GUATECOMPRAS, and adjusts other appendices and additional notes in that annex.

The protocol preserves the parties’ ability to impose measures consistent with Articles 2.14 and 2.15 of the agreement. It provides for entry into force 60 days after the deposit of Guatemala’s instrument of accession or the existing parties’ instruments of ratification, acceptance or approval, whichever occurs later; Guatemala would then become a party to the agreement. It provides for equally authentic Spanish and English originals, with the English text prevailing in case of divergence. The bill provides that the approving law takes effect upon promulgation. Its provisions concern the Joint Committee (Comité Conjunto), the Directorate for Foreign Trade Administration and the Ministry of Economy, and could affect exporters, importers, agricultural producers, service suppliers and government procurement suppliers.