Decision

July 14 2025: Joint minutes of the UK-Andean Trade and Sustainable Development Subcommittee

Updated 28 January 2026

The United Kingdom and the Andean countries, Colombia, Ecuador and Peru, held the fourth meeting of the Sub-Committee on Trade and Sustainable Development on 14 and 15 July 2025 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

Peru welcomed all parties and thanked everyone for participating in this meeting. Colombia, Ecuador and the United Kingdom (UK) in turn thanked Peru for hosting the meeting. Peru greeted the representatives of Colombia, Ecuador and the UK and expressed hope that the discussions at this meeting would be very productive for all parties.

Colombia announced that it will present recent progress in 2 priority areas: labour reform and the environmental agenda. This highlights Colombia’s commitment to inclusive and sustainable economic development that promotes social equity, ecosystem protection, and compliance with international labour and environmental standards.

Ecuador highlighted the importance of this trade agreement and the opportunities identified in the dialogue on trade and sustainable development. It was reported that the Ministry of Labour and the Ministry of Environment, Water, and Ecological Transition would directly participate in the meeting. As such, the fourth meeting of the Subcommittee on Trade and Sustainable Development was held on 14 July 2025, and all parties shared updated information on progress in labour and environmental matters within the context of trade and sustainable development.

Presentation and discussion on progress in labour matters, including cooperation activities under Title IX of the Trade Agreement

Colombia

Colombia presented its updates on labour, highlighting that the labour reform establishes open-ended contracts as the general rule, but allows for other types of contracts, such as fixed-term contracts, contract-by-job or labour contracts, or contracts for occasional work. Worker protection is strengthened by requiring clear conditions for contract renewal and termination.

Furthermore, the use of overtime is limited and the surcharge for Sunday and holiday work will be gradually increased, seeking to reduce informality and improve job stability. One of the central pillars of the reform is the inclusion of young people, apprentices, and people in vulnerable situations in the labour market.

More favourable conditions are being created for National Training Service (SENA by it’s acronym in Spanish) apprentices and medical students in internships, guaranteeing a minimum wage and social security affiliation. Mandatory hiring quotas for people with disabilities and temporary subsidies for companies that formally employ women, young people, and older adults are also being introduced.

Additionally, the reform proposes first and last-job programs, as well as support for the formalisation of micro and small businesses. It includes the creation of mechanisms for early severance pay and the integration of these changes with existing initiatives such as ‘Jobs for Life’. Together, these measures seek to promote decent, inclusive, and formal employment in Colombia.

Ecuador

Ecuador presented a series of actions aimed at strengthening the labour regulatory framework and guaranteeing workers’ fundamental rights. So far in 2025, the Ministry of Labour has carried out a total of 7,837 labour inspections through comprehensive and targeted methods, both electronically and in person, with the aim of verifying compliance with labour obligations. This process has been accompanied by the unification of procedures and sanctions.

Regarding freedom of association, the simplification of requirements, decentralisation of administrative procedures, and gender alternation in union leadership have been promoted, in accordance with International Labour Organisation (ILO) principles. Between January 2024 and June 2025, 892 labour organisation establishment and registration procedures were completed, reflecting an institutional commitment to promoting collective organisation.

Likewise, Ecuador has strengthened its public policy to prevent and eradicate child labour. Highlights include:

• the institutionalisation of specific responsibilities within the Ministry of Labour
• the implementation of 179 regional dialogue panels through May 2025
• awareness-raising workshops that have reached 453 beneficiaries
• 808 targeted inspections between January 2024 and June 2025

In June 2024, phase I of the Child Labour Risk Identification Model (MIRTI by it’s acronym in Spanish) was implemented in collaboration with the ILO and Economic Commission for Latin America and the Caribbean (ECLAC). This included the development of zonal and national data sheets to guide targeted public policies. In 2025, the Ministry will continue developing phase 2 of the model.

United Kingdom

Following Colombia’s presentation, the UK congratulated Colombian delegates on advancing the 2025 Labour Reform. The UK highlighted its commitment to all the International Labour Organization (ILO) Conventions, detailing the active role it plays at the ILO.  Recent focus has been on addressing the challenges and opportunities of decent work across the platform economy.

The UK welcomed the positive steps the Ecuadorian government has taken since the Furukawa Plantation ruling, referencing the more robust labour inspections and the adoption of better inter-agency coordination. 

The UK referenced the path to positive legislative reform, including the new Employment Rights Bill. The bill includes several provisions aimed at preventing modern slavery and labour exploitation, by increasing corporate accountability and strengthening enforcement mechanisms. The UK provided details on how the Employment Rights Bill will introduce changes to trade union legislation, with the aim of strengthening collective bargaining rights and union recognition.

The UK shared potential areas for further cooperation activities to support implementation of the TSD chapter commitments. This included offers setting out the department’s approach to policy development and implementation proposal of the Employment Rights Bill. The UK also offered to share a comprehensive summary of the Small and Micro Business Assessment (SaMBA) a UK government-led assessment on the financial and administrative support offered to small and medium-sized enterprises (SMEs) to assist compliance with labour reforms.

The UK requested updates on how partner countries are ensuring legislative changes will not present a regression in labour rights. In particular, on the measures that Colombia plan to implement in relation to the right to strike and collective bargaining, under the 2025 Labour Reform. The UK shared stakeholder concerns regarding Ecuador’s compliance with ILO Convention 98, requesting an update on whether there are plans to enact constitutional change and what timelines they are working towards. Following amendments to the law governing the Peruvian Agency for International Cooperation, the UK sought clarification on how the Peruvian government plans to ensure the effective protection of rights relating to ILO Convention 87 (Freedom of Association and the Right to Organise).

Peru

Peru presented its recent reforms regarding fundamental labour rights and participatory governance, such as the issuance of the Economic Labour Opinion (DEL by its acronym in Spanish), which seeks to provide objective information to strengthen collective bargaining in the private sector. Actions to eradicate child and forced labour, promote gender equality, punish workplace sexual harassment, and formalise domestic work were also detailed. Furthermore, the promotion of regulations was highlighted, such as approval of the National Action Plan on Business and Human Rights 2021 to 2025, and the approval of contractual models and technical guides for wage equity and the protection of adolescent workers.

Peru also highlighted the strengthening of its occupational health and safety system through national campaigns, tripartite agreements, training for officials, and updating of technical standards. Achievements in labour oversight and formalisation were presented, highlighting the efforts of the National Superintendency of Labour Oversight (SUNAFIL by its acronym in Spanish) and the ‘Formalise Now’ program, through which workers can access free guidance, training, and technical assistance services on matters related to labour formalisation.

Peru also highlighted the mechanisms for social dialogue and labour consultation at the national level of a tripartite nature (including workers, employers, and government). This includes the National Council for Labour and Employment Promotion (CNTPE by its acronym in Spanish) and the regional councils, through which policies on labour, employment promotion, job training, and social protection are discussed and agreed upon. Additionally, Peru highlighted active participation in multilateral forums such as the ILO, International Association of Economic and Social Councils and Similar Institutions (AICESIS), and Ibero-American networks, which articulate broad and thematic dialogue on the subject. These actions reflect the country’s commitment to fundamental labour rights and participatory governance.

As part of its efforts to reduce labour informality, Peru highlighted the National Registry of Workers in the Informal Labour Sector as a key tool that seeks to contribute to the implementation of public policies, interventions, and strategies aimed at addressing the problem of informal employment. The registry gathers information on more than 12 million informal workers, including data disaggregated by gender, age, geographic location, educational level, and economic activity, among others. This initiative is part of the National Strategy for Labour Formalisation, which seeks to progressively reduce informality and achieve 50% formal employment by 2040. In addition, Peru presented SUNAFIL’s ‘Verifica tu Chamba’ (Check Your Job) service, through which it seeks to strengthen its oversight efforts against labour informality.

Presentation and discussion on progress in environmental matters, including cooperation activities under Title IX of the Trade Agreement

Colombia

Colombia presented on progress in climate action, including direct management of the National Registry for the Reduction of Greenhouse Gas Emissions (RENARE by its acronym in Spanish) by the Ministry of Environment, which strengthens the transparency and traceability of emissions mitigation initiatives. Additionally, work is underway on the third version of the Nationally Determined Contribution (NDC 3.0), focused on community participation, the integration of cross-cutting issues such as biodiversity, gender, and human rights, and greater climate ambition ahead of COP30.

Regarding forest and biodiversity management, the progress of the Comprehensive Deforestation Control Plan was presented, highlighting that 28 Forest Development Centers are active and more than 753,000 hectares are under restoration. The Biodiversity Action Plan for 2030 was also detailed, including national goals aligned with the Global Biodiversity Framework. The fight against illegal wildlife trafficking was highlighted through prevention, response, and ecosystem restoration strategies

Finally, Colombia presented achievements in the implementation of the Escazú Agreement, the country portfolio for a Just Socio-Ecological Transition (with 120 projects and more than USD $39 billion dollars required), and the development of the National Circular Economy Strategy, including specific regulations on single-use plastics. Colombia noted that this collectively demonstrates a comprehensive approach to environmental sustainability, social justice, and productive transformation.

Ecuador

Ecuador presented an update on its recent efforts to combat deforestation and conserve biodiversity through sustainable land management and inclusive environmental governance. By 2025, the country will strengthen its public policy framework by implementing concrete measures to halt the loss of native forests, especially in the Amazon, and promote ecological restoration processes in degraded areas.

The use of technologies such as satellite monitoring for forest control was highlighted, as well as the strengthening of institutional capacities in environmental management agencies. Likewise, active participation of indigenous peoples and local communities in ecosystem conservation was consolidated, recognising their key role in protecting biodiversity. Through sustainable production models, such as the local bioeconomy and climate-resilient agriculture, economic alternatives that reduce pressure on natural resources have been promoted. Projects have also been developed in priority protected areas, and efforts have been made to strengthen the National System of Protected Areas (SNAP by its acronym in Spanish).

These actions are aligned with the Kunming-Montreal Global Biodiversity Framework and the Paris Agreement. Ecuador reaffirmed its interest in expanding international cooperation on environmental matters, especially in access to climate finance, technology transfer, and technical capacity building. It also expressed its willingness to participate in regional and global initiatives linked to nature-based solutions and a just and equitable ecological transition.

United Kingdom

The UK presented an update on the energy transition towards net-zero by 2050. This included an overview of the UK’s Plan for Change and the mission to make Britain a clean energy superpower. To achieve this, the UK intends to deliver on multiple detailed plans, through some examples such as: the Clean Power 2030 Action Plan, the Accelerating to Net Zero roadmap, the Modern Industrial Strategy and the recently published Trade Strategy.

The UK also provided an update on low carbon energy sectors, covering recent developments in wind power, solar energy, green hydrogen and electric vehicles. The UK has made significant progress in the generation of renewable electricity, increasing from 7% in 2010 to nearly 50% in 2025. The UK also continues to make positive developments in circular economy efforts and nuclear technologies.

The UK then provided a detailed presentation on green hydrogen. Low carbon hydrogen can play a key role in our mission to make the UK a clean energy superpower by delivering new clean energy industries, as well as creating green jobs in our industrial cities and coastal communities. It can provide long duration energy storage, making use of curtailed electricity. The UK offered to share further documents including the UK’s country update from the International Partnership for Hydrogen and Fuel Cells (IPHE) Steering Committee in Chile in June 2025, covering recent UK developments.

The UK updated all partners on the UK Carbon Border Adjustment Mechanism (CBAM) Policy. The UK has committed to introduce a CBAM from 1 January 2027, an environmental measure aimed at tackling carbon leakage and its impact on the environmental integrity of the UK’s decarbonisation efforts. Colombia and Ecuador are members of the UK CBAM International Group, a forum for the UK government to understand the views of international partners and share updates. Peru was invited to join this group.

Finally, the UK noted that work continues globally to reduce deforestation as a major source of greenhouse gas emissions and expressed an interest in learning more about deforestation regulations from Andean partners. In particular, the UK requested an update from Peru on recent amendments to the Forest and Wildlife Law (29763) which has resulted in some environmental evaluations or technical studies no longer being required to convert certain areas of privately held forest into agricultural land. The UK offered potential cooperation through information exchange on sustainable finance. The UK also encouraged Ecuador and Peru to join the Friends of Cali Fund coalition on nature finance, following its launch at London Climate Action Week.

Peru

Peru presented the Ministry of the Environment’s (MINAM by its acronym in Spanish) priority interventions for 2025, within the framework of the National Environmental Policy for 2030, highlighting the actions it has implemented in climate change, environmental financing, conservation and sustainable use of biodiversity, the circular economy, comprehensive solid waste management, citizenship development and environmental education, among other areas.

Furthermore, Peru highlighted that:

• in October 2024, through Supreme Decree No. 008-2024-MINAM, the National Biological Diversity Strategy to 2050 was approved
• in November 2024, through Supreme Decree No. 012-2024-MINAM, the National Policy: National Strategy against Climate Change to 2050 was approved
• in January 2025, the Regulations of Law No. 32099, the law for the Protection, Conservation and Sustainable Use of Wetlands in the National Territory, was approved
• in February 2025, through Supreme Decree No. 003-2025-MINAM, the National Roadmap for the Circular Economy to 2030 (HRNEC) was approved

Peru also highlighted progress in implementing the Green Finance Roadmap (approved by Supreme Decree No. 007-2023-MINAM), as a management tool for mobilising capital for green projects, as well as the actions it has been carrying out within the framework of the National Forest Conservation Program. The direct beneficiaries of the program are native communities and small forest users. Peru also highlighted environmental education and information campaigns, the recognition of good environmental practices, and other aspects.

Finally, Peru noted that the Peruvian Minister of the Environment is the President of the Forum of Ministers of the Environment of Latin America and the Caribbean (2024 to 2025). Additionally, MINAM, with the support of the United Nations Environment Programme (UNEP) and the Inter-American Development Bank (IDB), organised the Latin American and Caribbean Ministerial Summit on Water in May 2025, where the Water Roadmap for Latin America and the Caribbean was adopted. Peru further noted that the 24th meeting of the Forum of Ministers of the Environment of Latin America and the Caribbean is scheduled to be held in Lima, Peru, during the week of 30 September 2025. Peru’s commitment to environmental matters, both internationally and domestically, was therefore highlighted.

Regarding cooperation, Peru proposed holding a bilateral meeting with the UK to explore specific cooperation activities within the framework established in article 286 on Cooperation in Trade and Sustainable Development of the agreement.

Other issues of interest to the parties under Title IX of the Trade Agreement

Discussion and approval of the rules of procedure of the Subcommittee on Trade and Sustainable Development

At this meeting, the parties reached a full consensus on the English version of the text of the Rules of Procedure for this subcommittee and agreed to draft a Spanish version for subsequent approval by the trade committee.

Exchange of information on the notification status of the roster of experts of the subcommittee on trade and sustainable development

The parties are pending notification and review of the roster of experts for this Trade and Sustainable Development subcommittee. Colombia and Ecuador indicated that they will share the roster of experts for definition and review. The UK reported that it is currently in the process of an expression of interest campaign for expert candidates and, once completed, intends to share its final list with all parties. Peru indicated that it will notify the parties of the list of the 4 trade candidates that will comprise the aforementioned roster, all of whom have already agreed to be nominated.

Discussion and approval of the proposed Joint Declaration for the dialogue session with civil society

The second civil society dialogue brought together representatives of civil society and trade, labour, and environmental authorities from Colombia, Ecuador, Peru, and the UK. During this session, Peru read the joint communiqué prepared by the UK, Colombia, Ecuador, and Peru, which briefly summarised the topics addressed within the framework of the Trade and Sustainable Development Subcommittee of the Trade Agreement. Comments and suggestions were also received from the public regarding the implementation of Title IX on Trade and Sustainable Development of the Trade Agreement, with regard to trade, labour, and environmental issues. The dialogue was held in accordance with Article 282 of the Trade Agreement, regarding dialogue with civil society.

Conclusions and words of closing of the representatives of the Subcommittee on Trade and Sustainable Development

The parties expressed their appreciation for the positive dialogue held during the Trade and Sustainable Development Subcommittee meeting.