Decision

2 October 2024: Joint minutes of the third UK–Andean Trade and Sustainable Development Subcommittee

Updated 10 July 2025

The United Kingdom and the Andean countries, Colombia, Ecuador and Peru, held the third meeting of the Sub-Committee on Trade and Sustainable Development on 2 October 2024 by video conference. This meeting took place under the Trade Agreement between the United Kingdom of Great Britain and Northern Ireland (UK), the Republic of Colombia, the Republic of Ecuador, and the Republic of Peru (hereafter referred to as ‘the agreement’).

Welcome remarks and adoption of the agenda

Colombia, who was responsible for the administration of the meeting, encouraged the best outcome of the meeting, and welcomed all participants. Ecuador thanked Colombia for hosting and sent greetings to the other parties. Peru greeted the representatives of Colombia, Ecuador, and the United Kingdom who participated in this meeting and indicated that it hoped that this meeting will be very fruitful for all parties.

Thus, during the third meeting of the Subcommittee on Trade and Sustainable Development held on 2 October 2024, the parties shared updated information on progress in labour and environmental matters, under the context of trade and sustainable development.

Interventions and dialogue on trade and labour issues, including co-operation issues

Colombia

Columbia presented its updates on the topic of labour. Colombia began by sharing the employment rate up to August 2024. During the COVID crisis, the unemployment rate increased, however, some sectors experienced unemployment rates that have shown a percentage recovery. For 2024, the unemployment rate in August was 9.7%, presenting an increase of 0.4%, compared to August 2023 (9.3%). Figures were presented that showed the improvement of the labour market in the main cities, such as Bogotá, Medellín and Montería. However, there are concerns about the decline in employment in other cities such as Cali, Cartagena and Barranquilla. In the case of more rural areas, Colombia presented that there were quite wide disparities, which has led to the implementation of programmes aimed at territorial development with technical assistance and employment development. On youth and gender, Colombia stated that, in the face of labour market indicators in the young population between 15 and 28 years old, the figures for the quarter of June to Aug 2024 are particularly high, in which the unemployment rate of young people increased, from 16.2% to 17.3%. Regarding gender issues, it was shown that the gap remains high, however, there has been progress in terms of the total number of women in employment which increased by 189,000, while in men it was 68,000. Colombia highlighted the need to resolve the terms of gaps and participation with conditions such as maternity and paternity leave.

Finally, in terms of policies and reforms, Colombia stated that regulations such as the Pension Reform have been created with which it seeks to favour the granting of the conditions in the labour market. In this way, the positive figures in occupations according to economic activity in which employment in the artistic, commerce, and food sectors has been recovered without discrediting the work that needs to be reinforced in other sectors such as construction, public administration. Colombia stands out for its informality, which has been sharply reduced due to the implementation of different policies, to reduce costs associated with hiring with labour reforms with which the formalisation of employment has been adjusted. The reform seeks to rescue the rights of workers that in previous years had been reduced. It is on the way to improving the conditions to boost aggregate demand.

Peru

Peru stated that the National Council for Labour and Employment Promotion (CNTPE) is the main space for socio-labour dialogue and the most important tripartite form in Peru. It is made up of trade union organisations and business associations, as well as the Minister of Labour and Employment Promotion, who chairs the CNTPE, in which these actors agree by consensus on the agenda to be discussed and where it is appropriate to discuss and follow up on the labour issues related to the agreement with the United Kingdom. Regarding social dialogue, Peru presented the work that has been taking place in the CNTPE, the Bilateral Dialogue Working Groups (with trade unions and business associations), other thematic tables, the Regional Councils for Labour and Employment Promotion and at the international level (ILO, AICESIS and the CESISALC Network).

At the regulatory level, with the approval of Supreme Decree 002-2024-TR, important improvements were introduced in the Economic Labor Opinions service, which contributes to collective bargaining, in which a more fluid procedure is for the peaceful resolution of collective disputes established, constituting a very useful tool, so that the union organisation can have a better knowledge of labour matters.

Peru also highlighted the improvements introduced in the agrarian regime with Law 31110 and Supreme Decree 006-2021-TR, through which greater incentives and social benefits are presented, such as in labour contracting, daily remuneration, compensation, gratuities, vacations, indemnities, and social security in health, as well as has been promoting collective bargaining at all levels. Similarly, Peru highlighted the following labour regulations for non-traditional export industries, which establish a special hiring regime. Specifically, Supreme Decree 001-79-ICTI-CO-CE (Regulation on the Promotion of Non-Traditional Exports), 003-97-TR - TUO Legislative Decree 728 (Law on Labour Productivity and Competitiveness), and Law 22342 (Law on the Promotion of Non-Traditional Exports).

Ecuador

Ecuador, for its part, mentioned its measures regarding transparency and access to labour contracting data. Ecuador presented the Unified Contract Registration System which compiles information based on the Single Taxpayer Registry (RUC) of the employer that is registered. There were over 10 million registered labour contracts, with 2.5 million being active. Based on the date, a filter is generated to view the contracts registered by period, which allows information on the increase or decrease of the contracts. In this way, the technological tool serves to visualise each of the provinces of Ecuador, showing contractual modalities and economic activities according to gender. On the other hand, regarding workplace harassment, the current government has implemented an employment portal that offers free workshops, providing useful tools to citizens. Within its legislative framework, the Violet Economy Law has been promoted, which seeks to reduce gender gaps. This law guarantees equal opportunities and reduces discrimination, especially protecting women’s rights in the workplace.

United Kingdom

The United Kingdom highlighted its commitment to all the International Labour Organization (ILO) Conventions that it has ratified and to enhancing labour standards globally by negotiating and implementing ILO standards. The UK provided an update on the Worker Protection (Amendment to the Equality Act 2010) Act 2023 which introduces a new legal duty on employers to take reasonable steps to prevent sexual harassment of their workers (the ‘preventative duty’). Additionally, the UK highlighted the government’s plan to Make Work Pay, which sets out a significant and ambitious agenda to ensure that employment rights are fit for a modern economy, empower working people and contribute to economic growth. The plan to Make Work Pay is a core part of the government’s mission to grow the economy and to raise living standards across the country. The UK also outlined the Employment Rights Bill, which is the first step of this plan.

Interventions and dialogue on trade and environmental issues, including co-operation issues

Ecuador

Ecuador provided updates on various environmental issues, including on green transition, which in 2021 was established as a national priority. To articulate the actions that have been taken in terms of sustainable development, the government issued a decree to institute a committee that co-ordinates between different institutions to co-ordinate regulatory development in sustainability matters. One of the main objectives of this committee is to carry out the necessary actions to adapt to the standards of the European Regulation on Deforestation. Within the framework of the Inter-Institutional Committee, four subcommittees were created to cover the following areas: traceability (which includes the registry of producers), deforestation, land use and legality, and labour legality and legal formality.

The National Strategy for Climate Change is implemented by the Ministry of Environmental, Water and Ecological Transition (MAATE by its acronym in Spanish) to obtain resources to finance. MAATE has also worked in compliance with the framework of the Paris Agreement and promoted the circular economy with the Ministry of Production, Foreign Trade, Investments and Fisheries (MPCEIP by its acronym in Spanish). The initiative on deforestation was also highlighted as an initiative which improves sustainable production practices to obtain a deforestation-free distinctive. It was noted that the first shipment of material with this distinctive has now been shipped to Europe and all the actions carried out for this distinctive have been co-ordinated by the MAATE and the Ministry of Agriculture and Livestock (MAG by its acronym in Spanish). Another programme noted by Ecuador was the Ecuador Zero Carbon Programme (PECC by its acronym in Spanish), which promotes sustainable production and consumption patterns through carbon footprint (with product and organisational scope) in public and private companies. This programme uses methodologies including Green House Gases Protocol, ISO 14064 (Part 1, 2 and 3) and the 14067 Standard. These standards are the same as those considered in the Carbon Border Adjustment Mechanism.

Forest management efforts were also explained. Work has been carried out domestically and internationally, through collaboration, on the issues of forest restoration and climate change mitigation. These projects are based on:

• sustainable forest management extensionism (a service that offers technical assistance to owners and users of forest land, with the aim of promoting sustainable forest management)
• Socio Bosque Programme (which provides economic incentives to farmers and indigenous communities to voluntarily commit to conserving and protecting their forests, moorlands, and other areas of native vegetation)
• forest restoration
• National Forest Monitoring System (SNMB)
• National Forest and Wildlife Control System Project (PSNCFVS)
• Amazonia Sin Fuego Programme (PASF III)
• BVP and Earth Trend (which seeks to understand changes in the land)

The Traceability of Wood (2022 to 2025), is part of a project that seeks to ensure the sustainability and legality of the forestry industry, develops Title VI on the National Forest Regime in Articles 89 and 97 through the provisions of the Organic Environmental Code, and establishes the powers of the national agriculture authority. Article 109 of the Traceability of Wood gives general provisions for sustainable forest management. This is accompanied by the legal trade efforts that include forest management plans and programmes such as the Integrated Management Plan (PMI), Sustainable Forest Management Programme, and Simplified Forest Management Programme, Circulation Guides for Transporters, among others.

Peru

Peru presented on the priorities of the Ministry of the Environment (MINAM), specifying the actions that have been implemented in the areas of climate change, financing in natural infrastructure, sustainable business and conservation and sustainable use of biodiversity, circular economy, integrated management of solid waste, promotion of citizenship and environmental education, among other aspects.

Peru also outlined that:

• the Green Finance Roadmap 2023 was approved with Supreme Decree 007-2023-MINAM
• Supreme Decree 003-2024-MINAM created the Grau Tropical Sea National Reserve (RNMTG)
• through Ministerial Resolution 00295-2024-MINAM, the draft National Biodiversity Strategy for 2050 has been pre-published
• in November 2023, the draft “National Circular Economy Roadmap to 2030” was approved

Regarding co-operation in trade and the environment, Peru highlighted the bilateral co-operation between Peru and the United Kingdom on environmental issues and requested that a videoconference be held with the United Kingdom to explore specific co-operation opportunities for the implementation of Article 286 of the agreement (referring to co-operation in trade and sustainable development).

United Kingdom

The United Kingdom highlighted continued progress on the transition to net zero by 2050 and reaffirmed a commitment to delivering on domestic commitments and working with international partners towards this goal. Green jobs are growing at a rate approximately four times faster than overall employment, and there are already around 640,000 people employed in these roles in the UK.

The UK noted that it had recently concluded its latest ‘Contracts for Difference’ round, which is the main mechanism for supporting low carbon electricity generation. In this round, over 130 renewable electricity projects across the UK won contracts.

Last year, the UK presented its hydrogen strategy to this group. They reiterated that this is an area of potential collaboration with other countries that are party to this agreement and that they would be open to explore how they can help unlock Andean potential in hydrogen production.

The UK further highlighted ambitious targets on climate. They intend to be a global leader on climate action, and to make Britain a clean energy superpower. These targets include delivering clean power by 2030 and accelerating to net zero across the economy by 2050. In doing this, they are also committed to working together to find global solutions to environmental challenges in various international forums.

The UK acknowledged interest from partners on the recent consultation on a UK Carbon Border Adjustment Mechanism (CBAM). The UK set out its intention to introduce CBAM, to place a carbon price on some of the most emission intensive industrial goods imported to the UK from the aluminium, cement, ceramics, fertiliser, glass, hydrogen, iron and steel sectors. A UK CBAM will ensure imported products are subject to a carbon price comparable to that incurred if they were produced in the UK, mitigating the risk of carbon leakage.

The UK also covered sustainable forest management and noted that this was of particular interest to partner countries. The UK government recognises the urgency of taking action to ensure that UK consumption of forest risk commodities is not driving deforestation and stated that as the confirmed approach will be set out in due course, the UK is prepared to have further engagement on these policies later. The UK also outlined its preparations for the Convention on Biological Diversity (CBD) COP16, where the UK’s priorities included increasing nature and climate finance, including by operationalising the mechanism for sharing benefits derived from Digital genetic Sequence Information (DSI), championing an integrated approach to nature and climate, and ensuring increased action is taken to achieve the targets agreed under the Kunming Montreal Global Biodiversity Framework (GBF). The UK reiterated commitments collectively made under GBF at COP15 and to halt and reverse biodiversity loss by 2030.

Colombia

Colombia updated on its current initiatives and regulations, including six main sustainable development standards that Colombia adheres to. The updates covered:

1. The Climate Action Initiative (Law 2169 of 2021), which generates a fundamental legal framework for climate policies, and promotes sectoral plans. The initiative’s objective is to achieve carbon neutrality by 2050 and a reduction of gases to 50% by 2030.
2. Implementation of the Escazú Agreement, which aims to recognise the right of people to live in a healthy and balanced environment, and to enable participation concretely in the promotion of environmental issues. It was ratified with Law 2273 in 2022, and in 2023 protocols were created for its development and implementation. On 28 August 2024, the Constitutional Court declared the Escazú Agreement enforceable, following the submission by the President of the Republic, Dr. Gustavo Petro, to the 79th UN General Assembly in September 2024.
3. Circular Economy Regulation. Colombia has been developing a national strategy on circular economy to maximise resources and promote sustainable economic development. In this regard, 6 essential points stand out:
   1. Flow of industrial materials and mass consumption
   2. Advances in packaging
   3. Biomass flows
   4. Energy sources and flows
   5. Water flows
   6. Construction Materials
4. In addition to this, there are the Ecological Restoration Plans, which are part of the National Development Plan (PND by its acronym in Spanish), which includes reforestation projects and conservation of critical ecosystems in moorlands, dry forests and wetlands, funds allocated for joint work in international organisations and the public sector in the recovery of degraded areas.
5. National Energy Transition Policy: since 2023 this has contributed to the creation of clean growth industries such as solar energy, wind energy, biomass, etc. Several projects of great relevance in national matters have been delivered at the national level. The legislation encourages private investment in clean energy projects, which in the medium and long term.
6. Single-Use Plastics Law (Law 2232 of 2022) has advanced mechanisms to raise awareness and monitor single-use plastics. Likewise, Colombia suggested that the technical team will take a better approach to this type of issue to achieve more effective progress.

Discussion of institutional matters

Rules of procedure

The parties agreed to exchange comments on the TSD-specific draft rules of procedure in due course.

Group of experts

The UK stated that it has shared its lists of experts and is ready to present them to the trade committee. Peru indicated that it has already submitted the list of experts in labour and environmental matters, and that it will soon submit the missing candidates. Parties agreed to share the expert roster document for definition and review.

Preparations for dialogue with civil society

Colombia presented a draft joint declaration, in response to which the parties agreed to work on the text to be able to present it in the session with civil society.

The second civil society dialogue brought together civil society representatives and trade, labour and environment authorities from Colombia, Ecuador, Peru and the United Kingdom. The delegates made presentations on concerns, challenges and progress on labour issues and then on environmental issues. The dialogue provided a space for constructive exchange and facilitated the identification of concerns and opportunities for the implementation of the TSD title.

Closing

Parties appreciated the information exchanged during the subcommittee session.