The EU has signed an FTA with Peru and Colombia

The EU has signed an FTA with Peru and Colombia

Europe's trade organisation for the spirits has praised a free-trade pact with Colombia and Peru that has eliminated import tariffs on EU spirits.

The agreement, which came into force last month, will help grow EU spirits imports and boost industry jobs, SpiritsEurope said today (25 September). Colombia is the largest market in the Andean region for European spirits, valued at EUR35m (US$47.2m) last year, followed by Peru at EUR29m.

“With the free-trade agreement now entering into full implementation, we expect to gain significant benefits on both sides of the Atlantic - both for our European producers and for our Colombian and Peruvian customers - and their respective economies,” said Paul Skehan, director general of SpiritsEurope.

Before the trade deal, EU spirits producers faced import tariffs of 15% for Colombia and 9% for Peru. SpiritsEurope estimates Colombia's tariffs alone have cost producers about EUR35m over the past ten years.

The agreement also ensures recognition for spirit geographical indications (GI), as well as the elimination of tax discrimination and equal treatment of products in distribution channels.

Last week, SpiritsEurope welcomed the Swiss Government's decision to abandon plans for a minimum unit price in the country.