German Chancellor Angela Merkel called for the pending free trade agreement between the European Union, Peru and Colombia to be entered into force immediately to help stimulate economic growth in Europe.
For Merkel the agreement represents one of the methods to mitigate the effects of the Euro zone crisis.
“Especially with the difficult economic situation in some European countries, a free trade agreement with Colombia and Peru is a good sign for growth. And so we are extremely in favor for rapid entry into force,” the chancellor said in a press conference in Berlin with Peruvian President Ollanta Humala.
The agreement signed in March 2011 aims to eliminate various tariffs, widen market access and reduce technical obstacles to trade. In May the EU announced it was close to ratifying the deal, which was initially set to go into effect in September.
Analysts predict that Colombia’s economy will grow 0.7% but its success “will depend on the agility and motivation of the Colombian people in this mutually beneficial agreement,” according to an EU official.
At the moment the agreement is also open to including Bolivia and Ecuador.