RESTRICTEDWORLD TRADE
ORGANIZATIONG/TRIMS/W/17
17 November 1998
(98-4517)
Committee on Trade-Related Investment Measures Original:  Spanish
REPLIES FROM COLOMBIA, ECUADOR AND VENEZUELA TO QUESTIONS RAISED
BY THE UNITED STATES1
The following joint communication, dated 14 September 1998, has been received from the
Permanent Missions of  Colombia, Ecuador and Venezu ela with the request that it be circulated to the
Members of the Committee.
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Colombia, Ecuador and Venezuela have implemented a Community industrial development
policy in the automotive sector known as the "A utomotive Convention".  This policy was adopted
within the framework of  the Andean Community.
The automotive regime of Colombia, Ecuador and Venezuela is the same as that duly notified
to the World Trade Organization and the information in the notifications has not changed.
We therefore reply to the questions by the United States as follows:
1. Please describe to the Committee the parameters of this new regime that has been
proposed to be changed.
No new Andean automotive regime has been defined.  The Convention is nevertheless
constantly reviewed in the light of the economic  development needs of the countries and their
international commitments.
2.1 Is it true that you have provisionally decided to establish local content requirements as
high as 45 per cent in 1999 and to increase the percentage thereafter?
No decision has been taken, provisional or otherwise, establishing local content requirements
at 45 per cent in 1999 and at higher levels thereafter.
2.2 Do you plan to change the way th e local content requirements operate?
There are no plans to change the way in which the local content requirements operate.
./.
                                                     
1 See document G/TRIMS/W/13, Part B.G/TRIMS/W/17
Page 2
2.3 How do you reconcile the application of su ch new requirements with Article 5.4 of the
TRIMs Agreement, which prohibits increasing it s inconsistency with Article III of  GATT 1994?
As explained above, there are no new requirements.
3.1 Is it true that the new regime would establish local content requirements for the
period 1999-2004?
No new Andean automotive regime has been defined for the period 1999-2004;  nevertheless,
any future definition will have industrial development policy and consistency with the
WTO Regulations as a reference framework.
3.2 How do you reconcile this with your ob ligation under TRIMs Agreement Article 5.2 to
eliminate such measures by the end of 1999?
As stated in the reply to question 3.1, any future definition will have the WTO Regulations as
a reference framework.
Only to Ecuador
3.3 How do you reconcile the commitments made by Ecuador to the Working Party on
Accessions with a proposal that would:  (a) incre ase the level of local content in Ecuador's auto
regime in 1999;  and (b) continue to apply the local content TRIM after 1 January 2000?
Since Ecuador is a member of the Automotive Convention, the replies above are fully
applicable to it.
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