FREE TRADE AGREEMENT BETWEEN THE EFTA STATES AND THE REPUBLIC OF CHILE
The Republic of Iceland, the Principality
of Liechtenstein, the Kingdom of Norway and the Swiss Confederation
(hereinafter referred to as "the EFTA States"), and
The Republic of Chile (hereinafter referred
to as "Chile"), hereinafter collectively referred to as
"the Parties", resolved to:
STRENGTHEN the special bonds of friendship
and co-operation between their nations;
CONTRIBUTE to the harmonious development
and expansion of world trade by removing obstacles to trade and provide a
catalyst to broader international cooperation;
ESTABLISH clear and mutually advantageous
rules governing their trade;
CREATE an expanded and secure market for
goods and services in their territories;
ENSURE a stable and predictable environment
for business planning and investment;
FOSTER creativity and innovation by
protecting intellectual property rights;
BUILD on their respective rights and
obligations under the Marrakech Agreement establishing the World Trade Organization
and other multilateral and bilateral instruments of co-operation;
ENSURE that the gains from trade
liberalisation are not offset by the erection of private, anti-competitive barriers;
ENHANCE the competitiveness of their firms
in global markets;
CREATE new employment opportunities and
improve working conditions and living standards in their respective territories;
PROMOTE environmental protection and
conservation, and sustainable development;
REAFFIRMING their commitment to democracy,
the rule of law, human rights and fundamental freedoms in accordance with
their obligations under international law, including principles and objectives set out
in the United Nations Charter and the Universal Declaration of Human Rights; and
CONVINCED that this Agreement will create
conditions encouraging economic, trade and investment relations between them;
HAVE AGREED, in pursuit of the above, to
conclude the following Agreement (hereinafter referred to as "this
Establishment of a free trade area
The EFTA States and Chile hereby establish
a free trade area by means of this Agreement and the complementary agreements
on trade in agricultural goods, concurrently concluded between Chile and
each individual EFTA State.
1. The objectives of this Agreement, as
elaborated more specifically through its principles and rules, are to:
(a) achieve the progressive and reciprocal
liberalisation of trade in goods, in conformity with Article XXIV of the General
Agreement on Tariffs and Trade (hereinafter referred to as "the GATT
(b) achieve the liberalisation of trade in
services, in conformity with Article V of the General Agreement on Trade in
Services (hereinafter referred to as "the GATS");
(c) open the government procurement markets
of the Parties;
(d) promote conditions of fair competition
in the free trade area;
(e) substantially increase investment
opportunities in the free trade area;
(f) provide adequate and effective
protection and enforcement of intellectual property rights; and
(g) establish a framework for further
bilateral and multilateral cooperation to expand and enhance the benefits of this
1. Without prejudice to Annex I, this
Agreement shall apply to the territory of each Party, as well as to areas beyond the
territory in which each Party may exercise sovereign rights or jurisdiction in
accordance with international law.
2. Annex II shall apply with respect to
Relation to other international agreements
The Parties confirm their rights and
obligations under the Marrakech Agreement establishing the World Trade Organization
and the other agreements negotiated thereunder (hereinafter referred to as "the
WTO Agreement") to which they are party, and under any other international agreement
to which they are a party.
Trade and economic relations governed by
1. The provisions of this Agreement apply
to the trade and economic relations between, on the one side, the individual
EFTA States and, on the other side, Chile, but not to the trade relations between
individual EFTA States, unless otherwise provided for in this Agreement.
2. As a result of the customs union
established by the Treaty of 29 March 1923 between Switzerland and the Principality of
Liechtenstein, Switzerland shall represent the Principality of Liechtenstein in
matters covered thereby.
Regional and local governments
Each Party is fully responsible for the
observance of all obligations and commitments under this Agreement and shall ensure their
observance by its respective regional and local governments and authorities and by
non-governmental bodies in the exercise of governmental powers delegated by central,
regional and local governments or authorities within its territory
TRADE IN GOODS
This Chapter applies to trade between the
Parties relating to:
(a) products falling within chapters 25
through 97 of the Harmonized Commodity Description and Coding System
(hereinafter referred to as "the HS"), excluding the products listed in Annex III;
(b) products specified in Annex IV, with
due regard to the arrangements provided for in that Annex; and
(c) fish and other marine products as
provided for in Annex V.
Rules of origin and administrative
1. The provisions on rules of origin and
administrative co-operation applicable to Article 9(1) and Article 19 are set out in
2. For the purpose of Article 9(2), Article
13(1) and Article 18, the term "goods of a Party" shall mean domestic goods as
understood within the meaning of GATT 1994 or such goods as the Parties may agree, and
shall include originating products of that Party.
Elimination of customs duties
1. The Parties shall, on the date of entry
into force of this Agreement, abolish all customs duties on imports of products
originating in an EFTA State or in Chile, except as provided for in Annex VI.
2. The Parties shall, on the date of entry
into force of this Agreement, abolish all customs duties on exports of goods of a
Party in trade between the Parties.
3. No new customs duty shall be introduced
nor shall those already applied be increased in trade between the EFTA States
A customs duty includes any duty or charge
of any kind imposed in connection with the importation or exportation of a product,
including any form of surtax or surcharge in connection with such importation or
exportation, but does not include any:
(a) charge equivalent to an internal tax
imposed consistently with Article 15;
(b) anti-dumping or countervailing duty
applied consistently with Article 18; or
(c) fee or other charge imposed
consistently with Article 11.
Fees and other charges
Fees and other charges referred to in
Article 10(c) shall be limited in amount to the approximate cost of services rendered and
shall not represent an indirect protection for domestic products or a taxation of imports
or exports for fiscal purposes.
1. For each product the basic duty, to
which the successive reductions set out in Annex VI are to be applied, shall be the
most-favoured nation rate of duty applied on 1 January 2003.
2. If, before, by or after entry into force
of this Agreement, any tariff reduction is applied on an erga omnes basis, in
particular reductions in accordance with commitments resulting from multilateral
negotiations under the World Trade Organization (hereinafter referred to as
"the WTO"), such reduced duties shall replace the basic duties referred to in paragraph 1
as from the date when such reductions are applied, or from the entry into force of
this Agreement if this is later.
3. The reduced duties calculated in
accordance with Annex VI shall be applied rounded to the first decimal place or, in
case of specific duties, to the second decimal place.
Import and export restrictions
1. On the date of entry into force of this
Agreement, all import or export prohibitions or restrictions on trade in
goods of a Party between the EFTA States and Chile, other than customs duties and taxes,
whether made effective through quotas, import or export licenses or other
measures, shall be eliminated, except as provided for in Annex VII.
2. No new measures as referred to in
paragraph 1 shall be introduced.
Classification of goods and customs
1. The classification of goods in trade
between the EFTA States and Chile shall be determined in accordance with each Party's
respective tariff nomenclature in conformity with the HS.
2. The WTO Agreement on Implementation of
Article VII of the GATT 1994 shall govern customs valuation rules applied to
trade between the EFTA States and Chile.
The Parties shall apply national treatment
in accordance with Article III of the GATT 1994, including its interpretative notes,
which is hereby incorporated into and made part of this Agreement.
Sanitary and phytosanitary measures
1. The rights and obligations of the
Parties in respect of sanitary and phytosanitary measures shall be governed by the WTO
Agreement on the Application of Sanitary and Phytosanitary Measures (hereinafter
referred to as "the SPS Agreement").
2. The Parties shall strengthen their
co-operation in the field of sanitary and phytosanitary measures, with a view to
increasing the mutual understanding of their respective systems and facilitating access
to their respective markets.
3. At the request of a Party, expert
consultations shall be convened if any Party considers that another Party has taken
measures which are likely to affect, or have affected, access to its market. Such
experts, representing the Parties concerned on specific issues in the field of sanitary
and phytosanitary matters, shall aim at finding an appropriate solution in conformity with the
4. The Parties shall exchange names and
addresses of "contact points" with sanitary and phytosanitary expertise in
order to facilitate communication and the exchange of information.
5. In order to permit the efficient use of
resources, the Parties shall, to the extent possible, endeavour to use modern
technological means of communication, such as electronic communication, video or
telephone conference, or arrange for meetings referred to in paragraph 3 to take place
back-to-back with Joint Committee meetings or with sanitary and phytosanitary meetings in
the framework of the WTO. The results of expert consultations convened in accordance
with paragraph 3 shall be reported to the Joint Committee.
6. Chile and any of the EFTA States may,
for better implementation of this Article, develop bilateral arrangements including
agreements between their respective regulatory agencies.
1. The rights and obligations of the
Parties in respect of technical regulations, standards and conformity assessment shall
be governed by the WTO Agreement on Technical Barriers to Trade (hereinafter
referred to as "the TBT Agreement").
2. The Parties shall strengthen their
co-operation in the field of technical regulations, standards and conformity
assessment, with a view to increasing the mutual understanding of their respective systems
and facilitating access to their respective markets.
3. Without prejudice to paragraph 1, the
Parties agree to hold consultations in the framework of the Joint Committee where a
Party considers that another Party has taken measures which are likely to create, or
have created, an obstacle to trade, in order to find an appropriate solution in conformity
with the TBT Agreement.
Anti-dumping and countervailing measures
1. A Party shall not apply anti-dumping
measures as provided for under the WTO Agreement on Implementation of Article VI
of the GATT 1994 in relation to goods of a Party.
2. The Parties recognise that the effective
implementation of competition rules may address economic causes leading to
3. The rights and obligations of the
Parties related to countervailing measures shall be governed by the WTO Agreement on
Subsidies and Countervailing Measures.
Emergency action on imports of particular
1. Where any product originating in a
Party, as a result of the reduction or elimination of a customs duty under this
Agreement, is being imported into the territory of another Party in such increased
quantities and under such conditions as to constitute a substantial cause of serious injury or
threat thereof to the domestic industry of like or directly competitive products in the
territory of the importing Party, the importing Party may take emergency measures to the minimum
extent necessary to remedy or prevent the injury.
2. Such measures may consist in:
(a) suspending the further reduction of any
rate of duty provided for under this Agreement on the product; or
(b) increasing the rate of duty on the
product to a level not to exceed the lesser of:
i) the most-favoured nation rate of duty in
effect at the time the action is taken;
ii) the most-favoured nation rate of duty
in effect on the day immediately preceding the date of the entry
into force of this Agreement.
3. Emergency measures shall be taken for a
period not exceeding one year. In very exceptional circumstances, after review by
the Joint Committee, measures may be taken up to a total maximum period of three
years. In this case, the Party taking such measures shall present a schedule leading to their
progressive elimination. No measures shall be applied to the import of a product which
has previously been subject to such a measure for a period of, at least, five years since
the expiry of the measure.
4. Emergency measures shall only be taken
upon clear evidence that increased imports have caused or are threatening to
cause serious injury pursuant to an investigation in accordance with the
procedures laid down in the WTO Agreement on Safeguards.
5. The Party intending to take emergency
measures under this Article shall promptly make a notification to the other
Parties, containing all pertinent information which shall include evidence of serious
injury caused by increased imports, precise description of the product involved, the
proposed measure, the proposed date of introduction and expected duration of the
measures. Any Party that may be affected shall simultaneously be offered
compensation in the form of substantially equivalent trade liberalisation in relation to the
imports from any such Party.
6. The Joint Committee shall, within 30
days from the date of notification to the Parties, meet to examine the information
provided under paragraph 5 in order to facilitate a mutually acceptable solution
of the matter. In the absence of such solution, the importing Party may adopt a measure
pursuant to paragraph 2 to remedy the problem, and, in the absence of mutually
agreed compensation, the Party against whose product the measure is taken may take
retaliatory action. The emergency measure and any compensatory or retaliatory action
shall be immediately notified to the Joint Committee. The retaliatory action shall
consist of the suspension of concessions having substantially equivalent trade effects or
concessions substantially equivalent to the value of the additional duties expected to result
from the emergency action. In the selection of the emergency measure and the retaliatory
action, priority must be given to the action which least disturbs the functioning of
7. In critical circumstances where delay
would cause damage which would be difficult to repair, a Party may take a
provisional emergency measure not exceeding 120 days pursuant to a preliminary
determination that there is clear evidence that increased imports have caused or are threatening to
cause serious injury. The Party intending to take such a measure shall immediately
notify the other Parties thereof and, within 30 days of the date of such notification, the
pertinent procedures set out in paragraphs 5 and 6, including for compensatory and
retaliatory action, shall be initiated. Any compensation shall be based on the total
period of application of the provisional measure. The period of application of any
such provisional measure shall be counted as part of the duration of the definitive
measure and any extension thereof.
The Parties confirm their rights and
obligations under Article XIX of GATT 1994 and the WTO Agreement on Safeguards.
Subject to the requirement that such
measures are not applied in a manner which would constitute a means of arbitrary or
unjustifiable discrimination between Parties where the same conditions prevail, or a disguised
restriction on international trade, nothing in this Agreement shall be construed to prevent the
adoption or enforcement by any Party of measures:
(a) necessary to protect public morals;
(b) necessary to protect human, animal or
plant life or health;
(c) relating to the importations or
exportations of gold and silver;
(d) necessary to secure compliance with
laws or regulations which are not inconsistent with the provisions of this
Agreement, including those relating to customs enforcement, the
protection of intellectual property rights, and the prevention of deceptive
(e) relating to the products of prison
(f) imposed for the protections of national
treasures of artistic, historic or archaeological value;
(g) relating to the conservation of
exhaustible natural resources if such measures are made effective in conjunction
with restrictions on domestic production or consumption;
(h) undertaken in pursuance of obligations
under any intergovernmental commodity agreement which conforms to
criteria submitted to the WTO and not disapproved by it or which is
itself so submitted and not so disapproved;
(i) involving restrictions on exports of
domestic materials necessary to ensure essential quantities of such
materials to a domestic processing industry during periods when the domestic
price of such materials is held below the world price as part of a
governmental stabilization plan; provided that such restrictions shall not
operate to increase the exports of or the protection afforded to such domestic
industry, and shall not depart from the provisions of this Agreement
relating to non-discrimination;
(j) essential to the acquisition or
distribution of products in general or local short supply; provided that any such
measures shall be consistent with the principle that all WTO members are
entitled to an equitable share of the international supply of such products,
and that any such measures, which are inconsistent with the other
provisions of this Agreement shall be discontinued as soon as the conditions
giving rise to them have ceased to exist.
TRADE IN SERVICES AND ESTABLISHMENT
SECTION I – TRADE IN SERVICES
1. This Section applies to measures
affecting trade in services taken by central, regional or local governments and
authorities as well as by non-governmental bodies in the exercise of powers delegated by
central, regional or local governments or authorities.
2. This Section applies to measures
affecting trade in all services sectors with the exception of air services, including
domestic and international air transportation services, whether scheduled or
non-scheduled, and related services in support of air services, other than:
(a) aircraft repair and maintenance
(b) the selling and marketing of air
(c) computer reservation system (CRS)
3. Nothing in this Section shall be
construed to impose any obligation with respect to government procurement, which is subject
to the Chapter V.
For the purposes of this Section:
(a) "trade in services" is defined as the
supply of a service:
(i) from the territory of a Party into the
territory of another Party (mode 1);
(ii) in the territory of a Party to the
service consumer of another Party (mode 2);
(iii) by a service supplier of a Party,
through commercial presence in the territory of another Party (mode 3);
(iv) by a service supplier of a Party,
through presence of natural persons in the territory of another Party
(b) "measure" means any measure by a Party,
whether in the form of a law, regulation, rule, procedure, decision,
administrative action or any other form;
(c) "supply of a service" includes the
production, distribution, marketing, sale and delivery of a service;
(d) "measures by a Party affecting trade in
services" include measures in respect of:
(i) the purchase, payment or use of a
(ii) the access to and use of, in
connection with the supply of a service, services which are required by
that Party to be offered to the public generally;
(iii) the presence, including commercial
presence, of persons of another Party for the supply of a service
in the territory of that Party;
(e) "commercial presence" means any type of
business or professional establishment, including through:
(i) the constitution, acquisition or
maintenance of a juridical person; or
(ii) the creation or maintenance of a
branch or a representative office; within the territory of a Party for the
purpose of supplying a service;
(f) "service supplier" means any person
that seeks to supply or supplies a service;2
(g) "natural person of a Party" is, in
accordance with its legislation, a national or a permanent resident of that
Party if he or she is accorded substantially the same treatment as
nationals in respect of measures affecting trade in services;
(h) "juridical person" means any legal
entity duly constituted or otherwise organised under applicable law, whether for
profit or otherwise, and whether privately-owned or
governmentally-owned, including any corporation, trust, partnership, joint
venture, sole proprietorship or association;
(i) "services" includes any service in any
sector except services supplied in the exercise of governmental authority;
(j) "juridical person of a Party" means a
juridical person which is either:
(i) constituted or otherwise organised
under the law of Chile or an EFTA State, and that is engaged in
substantive business operations in Chile or in the EFTA State
(ii) in the case of the supply of a service
through commercial presence, owned or controlled by:
(A) natural persons of that Party; or
(B) juridical persons identified under
paragraph (j)(i); and (k) "a service supplied in the exercise of
governmental authority" means any service which is supplied neither on a
commercial basis nor in competition with one or more service
Most-favoured nation treatment
1. The rights and obligations of the
Parties with respect to most-favoured nation treatment shall be governed by the GATS.
2. If a Party enters into an agreement with
a non-Party which has been notified under Article V of the GATS, it shall, upon
request from another Party, afford adequate opportunity to the other Parties to
negotiate, on a mutually advantageous basis, the benefits granted therein.
1. With respect to market access through
the modes of supply identified in Article 23, each Party shall accord services and
service suppliers of another Party treatment no less favourable than that provided for
under the terms, limitations and conditions agreed and specified in its Schedule referred to
in Article 27.
2. In sectors where market-access
commitments are undertaken, the measures which a Party shall not maintain or adopt
either on the basis of a regional subdivision or on the basis of its entire territory,
unless otherwise specified in its Schedule, are defined as:
(a) limitations on the number of service
suppliers whether in the form of numerical quotas, monopolies, exclusive
service suppliers or the requirements of an economic needs test;
(b) limitations on the total value of
service transactions or assets in the form of numerical quotas or the requirement of
an economic needs test;
(c) limitations on the total number of
service operations or on the total quantity of service output expressed in the
terms of designated numerical units in the form of quotas or the
requirement of an economic needs test.3
(d) limitations on the total number of
natural persons that may be employed in a particular service sector or that a
service supplier may employ and who are necessary for, and directly related
to, the supply of a specific service in the form of numerical quotas or
a requirement of an economic needs test;
(e) measures which restrict or require
specific types of legal entities or joint ventures through which a service supplier
of another Party may supply a service; and
(f) limitations on the participation of
foreign capital in terms of maximum percentage limit on foreign shareholding or
the total value of individual or aggregate foreign investment.
1. In the sectors inscribed in its Schedule
referred to in Article 27 and subject to the conditions and qualifications set out
therein, each Party shall grant to services and services suppliers of another Party, in
respect of all measures affecting the supply of services, treatment no less favourable than
that it accords to its own like services and services suppliers.4
2. A Party may meet the requirement of
paragraph 1 by according to services and service suppliers of another Party, either
formally identical treatment or formally different treatment to that it accords to
its own like services and service suppliers.
3. Formally identical or formally different
treatment shall be considered to be less favourable if it modifies the conditions of
competition in favour of services or service suppliers of the Party compared to like
services or service suppliers of another Party.
1. The Schedule of specific commitments
that each Party undertakes under Articles 25 and 26 as well as paragraph 3 of this
Article is set out at Annex VIII. With respect to sectors where such commitments are
undertaken, each Schedule specifies:
(a) terms, limitations and conditions on
(b) conditions and qualifications on
(c) undertakings relating to additional
commitments referred to in paragraph 3; and
(d) where appropriate, the time-frame for
implementation of such commitments and the date of entry into
force of such commitments.
2. Measures inconsistent with both Articles
25 and 26 are inscribed in the column relating to Article 25. In this case, the
inscription is considered to provide a condition or qualification to Article 26 as well.
3. Where a Party undertakes a specific
commitment on measures affecting trade in services not subject to scheduling under
Articles 25 and 26, including those regarding qualifications, standards or licensing
matters, such commitments are inscribed in its Schedule as additional commitments.
4. The Parties undertake to review their
Schedules of specific commitments at least every three years, or more frequently, with
a view to provide for a reduction or elimination of substantially all remaining
discrimination between the Parties with regard to trade in services covered in this
Section on a mutually advantageous basis and ensuring an overall balance of rights and
1. In sectors where specific commitments
are undertaken, each Party shall ensure that all measures of general application
affecting trade in services are administered in a reasonable, objective and impartial manner.
2. Each Party shall maintain or institute
as soon as practicable judicial, arbitral or administrative tribunals or procedures
which provide, at the request of an affected service supplier of another Party, for the
prompt review of, and where justified, appropriate remedies for, administrative
decisions affecting trade in services. Where such procedures are not independent of the
agency entrusted with the administrative decision concerned, the Party shall ensure
that the procedures in fact provide for an objective and impartial review.
3. Where authorisation is required for the
supply of a service, the competent authorities of a Party shall promptly,
after the submission of an application is considered complete under domestic laws and
regulations, inform the applicant of the decision concerning the application. At the request
of the applicant, the competent authorities of the Party shall provide, without undue
delay, information concerning the status of the application.
4. The Parties shall jointly review the
results of the negotiations on disciplines for measures relating to qualification
requirements and procedures, technical standards and licensing requirements pursuant to Article
VI.4 of the GATS aiming to ensure that such measure do not constitute unnecessary
barriers to trade in services, with a view to their incorporation into this Agreement. The
Parties note that such disciplines aim to ensure that such requirements are, inter alia:
(a) based on objective and transparent
criteria, such as competence and the ability to supply the service;
(b) not more burdensome than necessary to
ensure the quality of the service;
(c) in the case of licensing procedures,
not in themselves a restriction on the supply of the service.
5. In sectors in which a Party has
undertaken specific commitments, until the incorporation of disciplines developed
pursuant to paragraph 4, a Party shall not apply licensing and qualification requirements
and technical standards in a manner which:
(a) does not comply with the criteria
outlined in paragraphs 4 (a), (b) or (c); and
(b) could not reasonably have been expected
of that Party at the time of the conclusion of the negotiation of the
6. Whenever a domestic regulation is
prepared, adopted and applied in accordance with international standards applied by
both Parties, it shall be rebuttably presumed to comply with the provisions of this Article.
7. Each Party shall provide for adequate
procedures to verify the competence of professionals of another Party.
1. The Parties shall encourage the relevant
bodies in their respective territories to provide recommendations on mutual
recognition, for the purpose of the fulfilment, in whole or in part, by service suppliers of
the criteria applied by each Party for the authorisation, licensing, accreditation,
operation and certification of service suppliers and, in particular, professional services.
2. The Joint Committee, within a reasonable
period of time and considering the level of correspondence of the respective
regulations, shall decide whether a recommendation referred to in paragraph 1
is consistent with this Section. If that is the case, such a recommendation shall be
implemented through an agreement on mutual requirements, qualifications, licences and
other regulations to be negotiated by the competent authorities.
3. Any such agreement shall be in
conformity with the relevant provisions of the WTO Agreement and, in particular, Article
VII of the GATS.
4. Where the Parties agree, each Party
shall encourage its relevant bodies to develop procedures for the temporary
licensing of professional services suppliers of another Party.
5. The Joint Committee shall periodically,
and at least once every three years, review the implementation of this Article.
6. Where a Party recognises, by agreement
or arrangement, the education or experience obtained, requirements met or
licenses or certifications granted in the territory of a non-Party, that Party shall
accord another Party, upon request, adequate opportunity to negotiate its accession to
such an agreement or arrangement or to negotiate comparable ones with it. Where a
Party accords recognition autonomously, it shall afford adequate opportunity for
another Party to demonstrate that the education or experience obtained, requirements met or
licenses or certifications granted in the territory of that other Party should also
Movement of natural persons
1. This Section applies to measures
affecting natural persons who are service suppliers of a Party, and natural persons
of a Party who are employed by a service supplier of a Party, in respect of the
supply of a service. Natural persons covered by a Party's specific commitments shall be
allowed to supply the service in accordance with the terms of those commitments.
2. This Section shall not apply to measures
affecting natural persons seeking access to the employment market of a Party, nor
shall it apply to measures regarding nationality, residence or employment on a
3. This Section shall not prevent a Party
from applying measures to regulate the entry of natural persons of another Party
into, or their temporary stay in, its territory, including those measures necessary to
protect the integrity of, and to ensure the orderly movement of natural persons across its
borders, provided that such measures are not applied in a manner so as to nullify or
impair the benefits accruing to a Party under the terms of a specific commitment.5
Specific provisions on telecommunications
services are set out in Annex IX.
SECTION II – ESTABLISHMENT
This Section shall apply to establishment
in all sectors, with the exception of establishment in services sectors.
For the purposes of this Section,
(a) "juridical person" means any legal
entity duly constituted or otherwise organised under applicable law, whether for
profit or otherwise, and whether privately-owned or
governmentally-owned, including any corporation, trust, partnership, joint
venture, sole proprietorship or association;
(b) "juridical person of a Party" means a
juridical person constituted or otherwise organised under the law of an
EFTA State or of Chile and that is engaged in substantive business operations
in Chile or in the EFTA State concerned;
(c) "natural person" means a national of an
EFTA State or of Chile according to their respective legislation;
(d) "establishment" means:
(i) the constitution, acquisition or
maintenance of a juridical person, or
(ii) the creation or maintenance of a
branch or a representative office, within the territory of a Party for the
purpose of performing an economic activity.
As regards natural persons, this shall not
extend to seeking or taking employment in the labour market or confer a right of access
to the labour market of a Party.
With respect to establishment, and subject
to the reservations set out in Annex X, each Party shall grant to juridical and natural
persons of the other Party treatment no less favourable than that it accords to its own
juridical and natural persons performing a like economic activity.
1. National treatment as provided for under
Article 34 shall not apply to:
(a) any reservation that is listed by a
Party in Annex X;
(b) an amendment to a reservation covered
by paragraph (a) to the extent that the amendment does not decrease the
conformity of the reservation with Article 34;
(c) any new reservation adopted by a Party,
and incorporated into Annex X which does not affect the overall level of
commitments of that Party under this Agreement; to the extent that such reservations are
inconsistent with Article 34.
2. As part of the reviews provided for in
Article 37 the Parties undertake to review at least every three years the status of
the reservations set out in Annex X with a view to reducing or removing such reservations.
3. A Party may, at any time, either upon
the request of another Party or unilaterally, remove in whole or in part
reservations set out in Annex X by written notification to the other Parties.
4. A Party may, at any time, incorporate a
new reservation into Annex X in accordance with paragraph 1(c) of this
Article by written notification to the other Parties. On receiving such written
notification, the other Parties may request consultations regarding the reservation. On
receiving the request for consultations, the Party incorporating the new reservation
shall enter into consultations with the other Parties.
Right to regulate
Subject to the provisions of Article 34,
each Party may regulate the establishment of juridical and natural persons.
With the objective of progressive
liberalisation of investment conditions, the Parties affirm their commitment to review the
investment legal framework, the investment environment and the flow of investment
between them consistent with their commitments in international investment
agreements, no later than three years after the entry into force of this
SECTION III – PAYMENTS AND CAPITAL
Objective and scope
1. The Parties shall aim at the
liberalisation of current payments and capital movements between them, in conformity with
the commitments undertaken in the framework of the international financial
institutions and with due consideration to each Party's currency stability.
2. This Section applies to all current
payments and capital movements between the Parties. Specific provisions on current
payments and capital movements are set out in Annex XI.
The Parties shall allow, in freely
convertible currency and in accordance with the Articles of Agreement of the International
Monetary Fund, any payments and transfers of the Current Account between the Parties.
The Parties shall allow the free movements
of capital relating to direct investments made in accordance with the laws of the
host country and investments made in accordance with the provisions of Sections
Trade in Services and Establishment of this Chapter, and the liquidation or
repatriation of these capitals and of any profit stemming therefrom.
Exceptions and safeguard measures
1. Where, in exceptional circumstances,
payments and capital movements between the Parties cause or threaten to cause
serious difficulties for the operation of monetary policy or exchange rate policy in any
Party, the Party concerned may take safeguard measures with regard to capital movements
that are strictly necessary for a period not exceeding one year. The application of
safeguard measures may be extended through their formal reintroduction.
2. The Party adopting the safeguard
measures shall inform the other Party forthwith and present, as soon as possible,
a time schedule for their removal.
The Parties shall consult each other with a
view to facilitating the movement of capital between them in order to promote the
objectives of this Agreement.
SECTION IV – COMMON PROVISIONS
Relation to other international agreements
With respect to matters related to this
Chapter, the Parties confirm the rights and obligations existing under any bilateral or
multilateral agreements to which they are a party.
Article XIV and Article XXVIII paragraph
(o) of the GATS are hereby incorporated into and made part of this Chapter.
1. The Parties understand that no
commitments have been made in financial services. For greater clarity, financial
services are defined as in paragraph 5 of the Annex on Financial Services of the GATS.
2. Notwithstanding paragraph 1, two years
after the entry into force of this Agreement, the Parties will consider the
inclusion of financial services in this Chapter on a mutually advantageous basis and
securing an overall balance of rights and obligations.
PROTECTION OF INTELLECTUAL PROPERTY
Intellectual property rights
1. The Parties shall grant and ensure
adequate, effective and non-discriminatory protection of intellectual property rights,
and provide for measures for the enforcement of such rights against infringement
thereof, counterfeiting and piracy, in accordance with the provisions of this Article, Annex
XII to this Agreement and the international agreements referred to therein.
2. The Parties shall accord to each other's
nationals treatment no less favourable than that they accord to their own
nationals. Exemptions from this obligation must be in accordance with the substantive provisions
of Articles 3 and 5 of the WTO Agreement on Trade-Related Aspects of Intellectual
Property Rights (hereinafter referred to as "the TRIPS Agreement").6
3. The Parties shall grant to each other's
nationals treatment no less favourable than that accorded to nationals of any
other State. Exemptions from this obligation must be in accordance with the substantive
provisions of the TRIPS Agreement, in particular Articles 4 and 5 thereof
4. The Parties agree, upon request of any Party to the Joint Committee and subject to its consensus, to review the provisions
on the protection of intellectual property rights contained in the present Article and in
Annex XII, with a view to further improving the levels of protection and to avoid or remedy
trade distortions caused by actual levels of protection of intellectual property rights.
In accordance with the provisions of this
Chapter, the Parties shall ensure the effective and reciprocal opening of their government
Scope and coverage
1. This Chapter applies to any law,
regulation, procedure or practice regarding any procurement, by the entities of the
Parties, of goods
7 and services including works, subject to the conditions specified by each
Party in Annexes XIII and XIV.
2. This Chapter shall not be applicable to:
(a) contracts awarded pursuant to:
(i) an international agreement and intended
for the joint implementation or exploitation of a project
by the contracting Parties;
(ii) an international agreement relating to
the stationing of troops; and
(iii) the particular procedure of an
(b) non-contractual agreements or any form
of government assistance and procurement made in the framework of
assistance or co-operation programmes;
(c) contracts for:
(i) the acquisition or rental of land,
existing buildings, or other immovable property or concerning rights
(ii) the acquisition, development,
production or co-production of programme material by broadcasters and
contracts for broadcasting time;
(iii) arbitration and conciliation
(iv) employment contracts; and
(v) research and development services other
than those where the benefits accrue exclusively to the entity
for its use in the conduct of its own affairs, on condition that the
service is wholly remunerated by the entity;
(d) financial services.
3. Public works concessions, as defined in
Article 49, shall also be subject to this Chapter, as specified in Annexes XIII and
4. No Party may prepare, design or
otherwise structure any procurement contract in order to avoid the obligations under this
For the purpose of this Chapter, the
following definitions shall apply:
(a) "entity" means an entity covered in
(b) "government procurement" means the
process by which a government obtains the use of or acquires goods or
services, or any combination thereof, for governmental purposes and not
with a view to commercial sale or resale, or use in the production or
supply of goods or services for commercial sale or resale;
(c) "liberalisation" means a process as a
result of which an entity enjoys no exclusive or special rights and is
exclusively engaged in the provision of goods or services on markets that are
subject to effective competition;
(d) "offsets" means those conditions
imposed or considered by an entity prior to, or in the course of its
procurement process, that encourage local development or improve its Party's balance
of payments accounts by means of requirements of local content,
licensing of technology, investment, counter-trade or similar
(e) "privatisation" means a process by
means of which a public entity is no longer subject to government control,
whether by public tender of the shares of that entity or otherwise, as
contemplated in the respective Party's legislation in force;
(f) "public works concessions" means a
contract of the same type as the public works procurement contracts, except
for the fact that the remuneration for the works to be carried
out consists either solely in the right to exploit the construction or in
this right together with a payment;
(g) "supplier" means a natural or legal
person that provides or could provide goods or services to an entity;
(h) "technical specifications" means a
specification, which lays down the characteristics of the products or services
to be procured, such as quality, performance, safety and dimensions,
symbols, terminology, packaging, marking and labelling, or the processes and
methods for their production and requirements relating to conformity
assessment procedures prescribed by procuring entities; and
(i) "tenderer" means a supplier who has
submitted a tender.
National treatment and non-discrimination
1. With respect to any laws, regulations,
procedures and practices regarding government procurement covered by this
Chapter, each Party shall grant the goods, services and suppliers of another Party a
treatment no less favourable than that accorded by it to domestic goods, services and
2. With respect to any laws, regulations,
procedures and practices regarding government procurement covered by this
Chapter, each Party shall ensure:
(a) that its entities do not treat a
locally-established supplier less favourably than another locally-established supplier
on the basis of the degree of foreign affiliation to or ownership by, a
person of another Party; and
(b) that its entities do not discriminate
against a locally-established supplier on the basis that the goods or services
offered by that supplier for a particular procurement are goods or
services of another Party.
3. This Article shall not apply to measures
concerning customs duties or other charges of any kind imposed on, or in
connection with importation, the method of levying such duties and charges, other
import regulations, including restrictions and formalities, nor to measures affecting
trade in services other than measures specifically governing procurement covered by this
Prohibition of offsets
Each Party shall ensure that its entities
do not, in the qualification and selection of suppliers, goods or services, in the
evaluation of bids or in the award of contracts, consider, seek or impose offsets.
1. Entities shall not split up a
procurement, nor use any other method of contract valuation with the intention of evading the
application of this Chapter when determining whether a contract is covered by the
disciplines thereof, subject to the conditions set out in Annexes XIII and XIV.
2. In calculating the value of a contract,
an entity shall take into account all forms of remuneration, such as premiums, fees,
commissions and interests, as well as the maximum permitted total amount, including
option clauses, provided for by the contract.
3. When, due to the nature of the contract,
it is not possible to calculate in advance its precise value, entities shall estimate
this value on the basis of objective criteria.
1. Each Party shall promptly publish any
law, regulation, judicial decision and administrative ruling of general
application and procedure, including standard contract clauses, regarding procurement covered by
this Chapter in the appropriate publications referred to in Appendix 2 of Annex XIV,
including officially designated electronic media.
2. Each Party shall promptly publish in the
same manner all modifications to such measures.
1. Entities shall award their public
contracts by open or selective tendering procedures according to their national
procedures, in compliance with this Chapter and in a non-discriminatory manner.
2. For the purposes of this Chapter:
(a) open tendering procedures are those
procedures whereby any interested supplier may submit a tender.
(b) selective tendering procedures are
those procedures whereby, consistent with Article 55 and other relevant
provisions of this Chapter, only suppliers satisfying qualification
requirements established by the entities are invited to submit a tender.
3. However, in the specific cases and only
under the conditions laid down in Article 56, entities may use a procedure
other than the open or selective tendering procedures referred to in paragraph 1, in
which case the entities may choose not to publish a notice of intended procurement,
and may consult the suppliers of their choice and negotiate the terms of contract with
one or more of these.
4. Entities shall treat tenders in
confidence. In particular, they shall not provide information intended to assist particular
participants to bring their tenders up to the level of other participants.
1. In selective tendering, entities may
limit the number of qualified suppliers they will invite to tender, consistent with the
efficient operation of the procurement process, provided that they select the maximum
number of domestic suppliers and suppliers of another Party, and that they make the
selection in a fair and non-discriminatory manner and on the basis of the criteria indicated
in the notice of intended procurement or in tender documents.
2. Entities maintaining permanent lists of
qualified suppliers may select suppliers to be invited to tender from among those
listed, under the conditions foreseen in Article 57(7). Any selection shall allow for
equitable opportunities for suppliers on the lists.
1. Provided that the tendering procedure is
not used to avoid maximum possible competition or to protect domestic
suppliers, entities shall be allowed to award contracts by means other than an open or selective
tendering procedure in the following circumstances and subject to the following
conditions, where applicable:
(a) when no suitable tenders or request to
participate have been submitted in response to a prior procurement, on
condition that the requirements of the initial procurement are not
(b) when, for technical or artistic
reasons, or for reasons connected with protection of exclusive rights, the
contract may be performed only by a particular supplier and no reasonable
alternative or substitute exists;
(c) for reasons of extreme urgency brought
about by events unforeseeable by the entity, the products or services could
not be obtained in time by means of open or selective tendering
(d) for additional deliveries of goods or
services by the original supplier where a change of supplier would compel the
entity to procure equipment or services not meeting
requirements of interchangeability with already existing equipment, software
(e) when an entity procures prototypes or a
first product or service which are developed at its request in the course of,
and for, a particular contract for research, experiment, study or original
(f) when additional services which were not
included in the initial contract but which were within the objectives of the
original tender documentation have, through unforeseeable
circumstances, become necessary to complete the services
described therein. However, the total value of contracts awarded for the
additional construction services may not exceed 50 percent of the amount of the
(g) for new services consisting of the
repetition of similar services and for which the entity has indicated in the
notice concerning the initial service, that tendering procedures other than open
or selective might be used in awarding contracts for such new services;
(h) in the case of contracts awarded to the
winner of a design contest, provided that the contest has been
organised in a manner which is consistent with the principles of this
Chapter; in case of several successful candidates, all successful
candidates shall be invited to participate in the negotiations; and
(i) for quoted goods purchased on a
commodity market and for purchases of goods made under exceptionally advantageous
conditions which only arise in the very short term in the case of
unusual disposals and not for routine purchases from regular suppliers.
2. The Parties shall ensure that, whenever
it is necessary for entities to resort to a procedure other than the open or selective
tendering procedures based on the circumstances set forth in paragraph 1, the
entities shall maintain a record or prepare a written report providing specific
justification for the contract awarded under that paragraph.
Qualification of suppliers
1. Any conditions for participation in
procurement shall be limited to those that are essential to ensure that the potential
supplier has the capability to fulfil the requirements of the procurement and the ability to
execute the contract in question.
2. In the process of qualifying suppliers,
entities shall not discriminate between domestic suppliers and suppliers of another
3. A Party shall not impose the condition
that, in order for a supplier to participate in a procurement, the supplier has
previously been awarded one or more contracts by an entity of that Party or that the supplier
has prior work experience in the territory of that Party.
4. Entities shall recognise as qualified
suppliers all suppliers who meet the conditions for participation in a
particular intended procurement. Entities shall base their qualification decisions solely on the
conditions for participation that have been specified in advance in notices or tender
5. Nothing in this Chapter shall preclude
the exclusion of any supplier on grounds such as bankruptcy or false declarations or
conviction for a serious crime such as participation in criminal organisations.
6. Entities shall promptly communicate to
suppliers that have applied for qualification their decision on whether or
not they qualify.
Permanent lists of qualified suppliers
7. Entities may establish permanent lists
of qualified suppliers provided that the following rules are respected:
(a) entities establishing permanent lists
shall ensure that suppliers may apply for qualification at any time;
(b) any supplier having requested to become
a qualified supplier shall be notified by the entities concerned of the
decision in this regard;
(c) suppliers requesting to participate in
a given intended procurement who are not on the permanent list of qualified
suppliers shall be given the possibility to participate in the
procurement by presenting the equivalent certifications and other means of proof
requested from suppliers who are on the list;
(d) when an entity operating in the
utilities sector uses a notice on the existence of a permanent list as a notice
of intended procurement, as provided in Annex XIV, Appendix 5,
paragraph 6, suppliers requesting to participate who are not on the permanent
list of qualified suppliers shall also be considered for the
procurement, provided there is sufficient time to complete the qualification
procedure; in this event, the procuring entity shall promptly start procedures for
qualification and the process of, and the time required for, qualifying
suppliers shall not be used in order to keep suppliers of other Parties off the
Publication of notices
1. Each Party shall ensure that its
entities provide for effective dissemination of the tendering opportunities generated by the
relevant government procurement processes, providing suppliers of another Party with
all the information required to take part in such procurement.
2. For each contract covered by this
Chapter, except as set out in Articles 54(3) and 56, entities shall publish in advance a
notice inviting interested suppliers to submit tenders, or where appropriate, requests for
participation for that contract.
3. The information in each notice of
intended procurement shall include at least the following:
(a) name, address, telefax number,
electronic address of the entity and, if different, the address where all documents
relating to the procurement may be obtained;
(b) the tendering procedure chosen and the
form of the contract;
(c) a description of the intended
procurement, as well as essential contract requirements to be fulfilled;
(d) any conditions that suppliers must
fulfil to participate in the procurement;
(e) time-limits for submission of tenders
and, where appropriate, other time limits;
(f) main criteria to be used for award of
the contract; and
(g) if possible, terms of payment and any
4. Each notice referred to in this Article
and Appendix 5 of Annex XIV, shall be accessible during the entire time period
established for tendering for the relevant procurement.
5. Entities shall publish the notices in a
timely manner through means which offer the widest possible and non-discriminatory
access to the interested suppliers of the Parties. These means shall be accessible
free of charge through a single point of access specified in Appendix 2 to Annex XIV.
1. Tender documentation provided to
suppliers shall contain all information necessary to permit them to submit
2. Where contracting entities do not offer
free direct access to the entire tender documents and any supporting documents by
electronic means, entities shall make promptly available the tender documentation
at the request of any supplier of the Parties.
3. Entities shall promptly reply to any
reasonable request for relevant information relating to the intended procurement, on
condition that such information does not give that supplier an advantage over its
1. Technical specifications shall be set
out in the notices, tender documents or additional documents.
2. Each Party shall ensure that its
entities do not prepare, adopt or apply any technical specifications with a view to, or
with the effect of, creating unnecessary obstacles to trade between the Parties.
3. Technical specifications prescribed by
entities shall be:
(a) in terms of performance and functional
requirements rather than design or descriptive characteristics; and
(b) based on international standards, where
these exist or, in their absence, on national technical regulations8, recognised national standards
9 , or building codes.
4. The provisions of paragraph 3 do not
apply when the entity can objectively demonstrate that the use of technical
specifications referred to in that paragraph would be ineffective or inappropriate for the
fulfilment of the legitimate objectives pursued.
5. In all cases, entities shall consider
bids which do not comply with the technical specifications but meet the essential
requirements thereof and are fit for the purpose intended. The reference to technical
specifications in the tender documents must include words such as "or equivalent".
6. There shall be no requirement or
reference to a particular trademark or trade name, patent, design or type, specific
origin, producer or supplier, unless there is no sufficiently precise or intelligible way of
describing the procurement requirements and provided that words, such as "or
equivalent", are included in the tender documentation.
7. The tenderer shall have the burden of
proof to demonstrate that his bid meets the essential requirements.
1. All time limits established by the
entities for the receipt of tenders and requests to participate shall be adequate to allow
suppliers of another Party, as well as domestic suppliers, to prepare and to submit
tenders, and where appropriate, requests for participation or applications for
qualifying. In determining any such time limit, entities shall, consistent with their own reasonable
needs, take into account such factors as the complexity of the intended procurement and
the normal time for transmitting tenders from foreign as well as domestic points.
2. Each Party shall ensure that its
entities shall take due account of publication delays when setting the final date for
receipt of tenders or of requests for participation or for qualifying for the suppliers' list.
3. The minimum time limits for the receipt
of tenders are specified in Appendix 3 to Annex XIV.
1. A Party may provide for its entities to
(a) in the context of procurements in which
they have indicated such intent in the notice of intended procurement; or
(b) when it appears from evaluation that no
one tender is obviously the most advantageous in terms of the specific
evaluation criteria set forth in the notices or tender documentation.
2. Negotiations shall primarily be used to
identify the strengths and weaknesses in tenders.
3. Entities shall not, in the course of
negotiations, discriminate between tenderers. In particular, they shall ensure that:
(a) any elimination of participants is
carried out in accordance with the criteria set forth in the notices and
(b) all modifications to the criteria and
to the technical requirements are transmitted in writing to all remaining
participants in the negotiations;
(c) on the basis of the revised
requirements and/or when negotiations are concluded, all remaining participants are
afforded an opportunity to submit new or amended tenders in accordance
with a common deadline.
Submission, receipt and opening of tenders
1. Tenders and requests to participate in
procedures shall be submitted in writing.
2. Entities shall receive and open bids
from tenderers under procedures and conditions guaranteeing the respect of the
principles of transparency and non-discrimination.
Awarding of contracts
1. To be considered for award, a tender
must, at the time of opening, conform to the essential requirements of the notices
or tender documentation and be submitted by a supplier which complies with the conditions
2. Entities shall make the award to the
tenderer whose tender is either the lowest tender or the tender which, in terms of the
specific objective evaluation criteria previously set forth in the notices or tender
documentation, is determined to be the most advantageous.
Information on contract award
1. Each Party shall ensure that its
entities provide for effective dissemination of the results of government procurement
2. Entities shall promptly inform tenderers
of decisions regarding the award of the contract and of the characteristics and
relative advantages of the selected tender. Upon request, entities shall inform any
eliminated tenderer of the reasons for the rejection of its tender.
3. Entities may decide to withhold certain
information on the contract award where release of such information would prevent
law enforcement or otherwise be contrary to the public interest, would prejudice the
legitimate commercial interests of suppliers, or might prejudice fair competition between
1. Entities shall accord impartial and
timely consideration to any complaints from suppliers regarding an alleged breach of
this Chapter in the context of a procurement procedure.
2. Each Party shall provide
non-discriminatory, timely, transparent and effective procedures enabling suppliers to challenge
alleged breaches of this Chapter arising in the context of procurements in which they
have, or have had, an interest.
3. Challenges shall be heard by an
impartial and independent reviewing authority. A reviewing authority which is not a court
shall either be subject to judicial review or shall have procedural guarantees similar to
those of a court.
4. Challenge procedures shall provide for:
(a) rapid interim measures to correct
breaches of this Chapter and to preserve commercial opportunities. Such
action may result in suspension of the procurement process. However,
procedures may provide that overriding adverse consequences for the
interests concerned, including the public interest, may be taken into
account in deciding whether such measures should be applied; and
(b) if appropriate, correction of the
breach of this Chapter or, in the absence of such correction, compensation for the
loss or damages suffered, which may be limited to costs for tender
preparation and protest.
Information technology and co-operation
1. The Parties shall, to the extent
possible, endeavour to use electronic means of communication to permit efficient
dissemination of information on government procurement, particularly as regards tender
opportunities offered by entities, while respecting the principles of transparency
2. The Parties shall endeavour to provide
each other with technical co-operation, particularly aimed at small and medium size
enterprises, with a view to achieve a better understanding of their respective
government procurement systems and statistics, as well as a better access to their respective
Modifications to coverage
1. A Party may modify its coverage under
this Chapter, provided that it:
(a) notifies the other Parties of the
(b) provides the other Parties, within 30
days following the date of such notification, appropriate compensatory
adjustments to its coverage in order to maintain a level of coverage
comparable to that existing prior to the modification.
2. Notwithstanding paragraph 1(b), no
compensatory adjustments shall be provided to the other Parties where the modification
by a Party of its coverage under this Chapter concerns:
(a) rectifications of a purely formal
nature and minor amendments to Annexes XIII and XIV;
(b) one or more covered entities on which
government control or influence has been effectively eliminated as a result
of privatisation or liberalisation.
3. Where the Parties agree on the
modification, the Joint Committee shall give effect to the agreement by amending the
In the case that a Party offers, in the
future, a third party additional advantages with regard to its respective government
procurement market access coverage agreed under this Chapter, it shall agree, upon request
of another Party, to enter into negotiations with a view to extending coverage under this
Chapter on a reciprocal basis.
Provided that such measures are not applied
in a manner that would constitute a means of arbitrary or unjustifiable
discrimination between the Parties or a disguised restriction on trade between them, nothing in this
Chapter shall be construed to prevent any Party from adopting or maintaining measures
necessary to protect:
(a) public morals, order or safety;
(b) human life, health or security;
(c) animal or plant life or health;
(d) intellectual property; or
(d) relating to goods or services of
handicapped persons, of philanthropic institutions or of prison labour.
Review and implementation
1. The Joint Committee shall review the
implementation of this Chapter every two years, unless otherwise agreed by the
Parties; it shall consider any issue arising from it, and take appropriate action in the exercise
of its functions.
2. At the request of a Party, the Parties
shall convene a bilateral Working Group to address issues related to the
implementation of this Chapter. Such issues may include:
(a) bilateral cooperation relating to the
development and use of electronic communications in government procurement
(b) the exchange of statistics and other
information needed for monitoring procurement conducted by the Parties and
the results of the application of this Chapter; and
(c) exploration of potential interest in
further negotiations aimed at further broadening of the scope of market access
commitments under this Chapter.
1. The Parties recognise that
anti-competitive business conduct may frustrate the benefits arising from this Agreement.
2. The Parties undertake to apply their
competition laws in a manner consistent with this Chapter so as to avoid that the
benefits of the liberalisation process in goods and services as provided
by this Agreement may be diminished or cancelled out by anti-competitive business conduct.10 To
facilitate this, the Parties agree to co-operate and co-ordinate under the provisions of this Chapter. This
co-operation includes notification, consultation, and exchange of information.
3. For the purposes of this Agreement,
"anti-competitive business conduct" includes, but is not limited to,
anti-competitive agreements, concerted practices or arrangements by competitors, the abuse of
single or joint dominant positions in a market and mergers with substantial
anti-competitive effects. These practices refer to goods and services and may be carried out by private
and public enterprises.
4. The Parties recognise the importance of
principles of competition that are accepted in relevant multilateral fora of
which the Parties are members or observers, including non-discrimination, due process,
1. Each Party, through its designated
authority, shall notify the other Parties of an enforcement activity regarding
anti-competitive business conduct relating to goods and services if it is liable to substantially
affect another Party's important interests, or if the anti-competitive business conduct is liable
to have a direct and substantial effect in the territory of that other Party or is taking
place principally in the territory of that other Party.
2. Provided that this is not contrary to
the Parties' competition laws and does not affect any investigation being carried out,
notification shall take place at an early stage of the procedure.
3. The notifications provided for in
paragraph 1 should be detailed enough to permit an evaluation in the light of the
interests of the other Parties.
Co-ordination of enforcement activities
A Party, through its designated authority,
may notify another Party of its willingness to co-ordinate enforcement activities with
respect to a specific case. This co-ordination shall not prevent the Parties from taking
1. Each Party shall, in accordance with its
laws, take into consideration the important interests of the other Parties in
the course of its enforcement activities on anti-competitive business conduct relating to goods and
services. If a Party considers that an investigation or proceeding being conducted
by another Party may adversely affect such Party's important interests it may transmit
its views on the matter to that other Party through its designated authority. Without
prejudice to the continuation of any action under its competition laws and to its full
freedom of ultimate decision, the Party so addressed should give full and sympathetic
consideration to the views expressed by the requesting Party.
2. If a Party considers that an
anti-competitive business conduct carried out within the territory of another Party may have an
adverse effect on its interests, the first Party may, through its designated
authority, request that that other Party initiates appropriate enforcement activities. The request shall
be as specific as possible about the nature of the anti-competitive business conduct and
its effect on the interest of the requesting Party, and shall include an offer of such
further information and other assistance as the requesting Party is able to provide. The
requested Party shall carefully consider whether to initiate enforcement activities, or to
expand ongoing enforcement activities, with respect to the anti-competitive business
conduct identified in the request.
3. Regarding the issues addressed in
paragraphs 1 and 2 each Party undertakes to exchange information regarding sanctions
and remedies applied and to provide the grounds on which those actions were taken,
when requested by another Party.
4. A Party may request consultations within
the Joint Committee regarding the issues addressed in paragraphs 1 and 2 as
well as any other matter covered by this Chapter. Such a request shall indicate the
reasons for the request and whether any procedural time limit or other constraints
require that consultations be expedited.
Exchange of information and confidentiality
1. With a view to facilitating the
effective application of their competition laws in order to eliminate the negative effects of
anti-competitive business conduct relating to goods and services, the Parties are
encouraged to exchange information.
2. All exchange of information shall be
subject to the rules and standards of confidentiality applicable in the territory
of each Party. No Party shall be required to provide information when this is contrary
to its laws regarding disclosure of information. Each Party shall maintain the
confidentiality of any information provided to it according to the limitations that the
submitting Party requests for the use of such information. Where the laws of a Party so
provide, confidential information may be provided to their respective courts of
Public enterprises and enterprises
entrusted with special or exclusive rights, including
1. With regard to public enterprises and
enterprises to which special or exclusive rights have been granted, the Parties shall
ensure that no measure is adopted or maintained that distorts trade in goods or
services between the Parties to an extent contrary to the Parties' interests and that
such enterprises shall be subject to the rules of competition insofar as the application of
such rules does not obstruct the performance, in law or in fact, of the particular tasks
assigned to them.
2. The Parties confirm their rights and
obligations under Article XVII of the GATT 1994 and Article VIII of the GATS with
regard to enterprises referred to in paragraph 1.
No Party may have recourse to dispute
settlement under this Agreement for any matter arising under this Chapter.
For the purpose of applying Articles 73, 74
and 75, each Party shall designate its competition authority or any other public
entity and communicate its decision to the other Parties at the first meeting of the
Joint Committee but in no case later than 60 days after the entry into force of the
For the purpose of this Chapter:
(a) "competition laws" means:
(i) for Chile, Decreto Ley N° 211 of 1973
and Ley N° 19.610 of 1999 and their implementing regulations or
amendments as well as other laws dealing with competition
(ii) for the Republic of Iceland,
Competition Law No. 8/1993 as amended by Law No. 24/1994, 83/1997,
82/1998 and 107/2000 as well as other laws dealing with
(iii) for the Principality of
Liechtenstein, any competition rules that Liechtenstein recognises or undertakes to
apply within its territory, including those provided for in
other international agreements, such as the Agreement on the
European Economic Area;
(iv) for the Kingdom of Norway, Act No. 65
of 11 June 1993 relating to Competition in Commercial Activity as
well as other laws dealing with competition matters;
(v) for the Swiss Confederation, the
Federal Act on Cartels and Other Restraints of Competition of 6 October 1995
and the Order on the Control of Business Concentration of 17
June 1996, and any regulation provided for by these acts as
well as other laws dealing with competition matters, and any changes that the above mentioned
legislation may undergo after the conclusion of this Agreement;
(b) "enforcement activity" includes any
application of competition laws by way of investigation or proceeding
conducted by a Party, which may result in the imposition of penalties or
1. The rights and obligations of the
Parties in respect of subsidies related to goods shall be governed by Article XVI of the
GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures.
2. The rights and obligations of the
Parties in respect of subsidies related to services shall be governed by the GATS.
3. Each Party may request information on
individual cases of state aid believed to effect trade between the Parties. The
requested Party will make its best efforts to provide such information.
1. The Parties shall publish, or otherwise
make publicly available, their laws, regulations, procedures and administrative
rulings of general application as well as the international agreements, that may affect
the operation of this Agreement.
2. The Parties shall provide, upon request,
information on matters referred to in paragraph 1.
Contact points and exchange of information
1. In order to facilitate communication
between the Parties on any trade matter covered by this Agreement, each Party shall
designate a contact point. On the request of any Party, the contact point of the other
Parties shall indicate the office or official responsible for the matter and provide the
required support to facilitate communication with the requesting Party.
2. On the request of a Party, each Party
shall provide information and reply to any question from the other Parties relating to
an actual measure that may affect the operation of this Agreement. The Parties
shall make information on proposed measures available to the extent possible under
their domestic laws and regulations.
3. The information referred to under this
Article shall be considered to have been provided when the information has been made
available by appropriate notification to the WTO or when the information has been
made available on the official, publicly and fee-free accessible website of the Party
Cooperation on increased transparency
The Parties agree to cooperate in bilateral
and multilateral fora on ways to increase transparency in trade matters.
ADMINISTRATION OF THE AGREEMENT
The Joint Committee
1. The Parties hereby establish the
EFTA-Chile Joint Committee, comprising Ministers of each Party, or senior
officials delegated by them for this purpose.
2. The Joint Committee shall:
(a) supervise the implementation of this
Agreement and evaluate the results obtained in its application;
(b) oversee the further elaboration of this
(c) endeavour to resolve disputes that may
arise regarding the interpretation or application of this Agreement;
(d) supervise the work of the
sub-committees and working groups established or created under this
(e) carry out any other function assigned
to it under this Agreement.
3. The Joint Committee may decide to set up
such sub-committees and working groups as it considers necessary to assist
it in accomplishing its tasks. The Joint Committee may seek the advice of
non-governmental persons and groups.
4. The Joint Committee shall establish its
rules of procedure.11
It may take decisions as provided for in this Agreement. On other
matters the Joint Committee may make recommendations. The Joint Committee shall
take decisions and make recommendations by consensus.
5. Subject to the provisions set out in
Annex XV, the Joint Committee may amend the Annexes and the Appendices to this
6. The Joint Committee shall meet whenever
necessary but normally every two years. The regular meetings of the Joint
Committee shall alternate between Chile and an EFTA State.
7. Each Party may request at any time,
through a notice in writing to the other Parties, that a special meeting of the
Joint Committee be held. Such a meeting shall take place within 30 days of receipt of the
request, unless the Parties agree otherwise.
1. The Parties hereby establish a
Secretariat of this Agreement, comprising the competent organs referred to in Annex XVI.
2. All communications to or by a Party
shall be sent through the respective competent organs unless otherwise provided
for in this Agreement.
1. This Chapter shall apply with respect to
the avoidance or the settlement of all disputes arising from this Agreement
between one or several EFTA States and Chile.
2. The Parties shall at all times endeavour
to agree on the interpretation and application of this Agreement, and shall
make every attempt through co-operation and consultations to arrive at a mutually
satisfactory resolution of any matter that might affect its operation.
3. This Chapter shall not apply to Articles
14(2), 16(1), 17(1), 18(3), 20, 24(1) and 81(1) and (2).
Choice of forum
1. Disputes on the same matter arising
under both this Agreement and the WTO Agreement, or any agreement negotiated
thereunder, to which the Parties are party, may be settled in either forum at the
discretion of the complaining Party. The forum thus selected shall be used to the exclusion of
2. Once dispute settlement procedures have
been initiated under this Agreement pursuant to Article 91 or dispute
settlement proceedings have been initiated under the WTO Agreement, the forum selected shall be
used to the exclusion of the other.
3. For the purposes of this Article,
dispute settlement proceedings under the WTO Agreement are deemed to be initiated by a
Party's request for the establishment of a panel pursuant to Article 6 of the
Understanding on Rules and Procedures Governing the Settlement of Disputes.
4. Before a Party initiates dispute
settlement proceedings under the WTO Agreement against another Party or Parties,
that Party shall notify all other Parties of its intention.
Good offices, conciliation or mediation
1. Good offices, conciliation and mediation
are procedures that are undertaken voluntarily if the Parties involved so
agree. They may begin at any time and be terminated at any time.
2. Proceedings involving good offices,
conciliation and mediation shall be confidential and without prejudice to the
rights of the Parties in any other proceedings.
1. A Party may request in writing
consultations with another Party whenever it considers that a measure applied by that
Party is inconsistent with this Agreement or that any benefit accruing to it directly or
indirectly under this Agreement is impaired by such measure. The Party requesting
consultations shall at the same time notify the other Parties in writing thereof. Consultations
shall take place before the Joint Committee unless the Party or Parties making or
receiving the request for consultations disagree.
2. Consultations shall be held within 30
days from the date of receipt of the request for consultations. Consultations on urgent
matters, including those on perishable agricultural goods, shall commence within
15 days from the receipt of the request for consultations.
3. The Parties involved in the
consultations shall provide sufficient information to enable a full examination of how the
measure is inconsistent with, or may impair the benefit accruing to them under this
Agreement and treat any confidential or proprietary information exchanged in the course of
consultations in the same manner as the Party providing the information.
4. The consultations shall be confidential
and without prejudice to the rights of the Parties involved in any further
5. The Parties involved in the
consultations shall inform the other Parties of any mutually agreed resolution of the matter.
Establishment of arbitration panel
1. If the matter has not been resolved
within 60 days, or 30 days in relation to a matter of urgency, after the date of
receipt of the request for consultations, it may be referred to arbitration by one or more of
the Parties involved by means of a written notification addressed to the Party or
Parties complained against. A copy of this notification shall also be communicated to
all Parties so that each Party may determine whether to participate in the dispute.
2. Where more than one Party requests the
establishment of an arbitration panel relating to the same matter, a single
arbitration panel should be established to examine these complaints whenever feasible.
3. A request for arbitration shall give the
reason for the complaint including the identification of the measure at issue and
an indication of the legal basis of the complaint.
4. A Party to this Agreement which is not a
Party to the dispute, on delivery of a written notice to the disputing Parties,
shall be entitled to make written submissions to the arbitration panel, receive written
submissions of the disputing Parties, attend all hearings and make oral submissions.
1. The arbitration panel shall comprise
2. In the written notification pursuant to
Article 91, the Party or the Parties referring the dispute to arbitration shall
designate one member of the arbitration panel.
3. Within 15 days of the receipt of the
notification referred to in paragraph 2, the Party or Parties to which it was addressed
to shall designate one member of the arbitration panel.
4. The Parties to the dispute shall agree
on the appointment of the third arbitrator within 15 days of the appointment of the
second arbitrator. The member thus appointed shall chair the arbitration panel.
5. If all 3 members have not been
designated or appointed within 30 days from the date of receipt of the notification
referred to in paragraph 2, the necessary designations shall be made at the request of any Party
to the dispute by the Director-General of the WTO within a further 30 days.
6. The Chair of the arbitration panel shall
not be a national of any of the Parties, nor have his or her usual place of
residence in the territory of any of the Parties, nor be employed or previously have been employed
by any of the Parties, nor have dealt with the case in any capacity.
7. If an arbitrator dies, withdraws or is
removed, a replacement shall be selected within 15 days in accordance with the
selection procedure followed to select him or her. In such a case, any time period applicable
to the arbitration panel proceedings shall be suspended for a period beginning on the
date the arbitrator dies, withdraws or is removed and ending on the date the
replacement is selected.
8. The date of establishment of the
arbitration panel shall be the date on which the Chair is appointed.
Procedures of the arbitration panel
1. Unless the Parties to the dispute agree
otherwise, the arbitration panel proceedings shall be conducted in
accordance with the Model Rules of Procedure set out at Annex XVII.
2. Unless the Parties to the dispute
otherwise agree within 10 days from the date of delivery of the request for the
establishment of the arbitration panel, the terms of reference shall be:
"To examine, in the light of the relevant
provisions of the Agreement, the matter referred to in the request for the
establishment of an arbitration panel pursuant to Article 91 and to make findings of law and fact
together with the reasons therefore for the resolution of the dispute."
3. At the request of a Party to the dispute
or on its own initiative, the arbitration panel may seek scientific information and
technical advice from experts as it deems appropriate. Any information so obtained
shall be submitted to the Parties for comments.
4. The arbitration panel shall make its
ruling based on the provisions of this Agreement, in particular in the light of
its objectives as set out in Article 2, applied and interpreted in accordance with the rules of
interpretation of public international law.
5. Decisions of the arbitration panel shall
be taken by a majority of its members. Arbitrators may furnish separate opinions
on matters not unanimously agreed. No arbitration panel may disclose which
arbitrators are associated with majority or minority opinions.
6. The expenses of the arbitration panel,
including the remuneration of its members, shall be borne by the Parties to
the dispute in equal shares.
1. The arbitration panel shall within 90
days from the date of the establishment of the arbitration panel present to the
Parties to the dispute its ruling.
2. The arbitration panel shall base its
ruling on the submissions and arguments of the Parties to the dispute and on any
scientific information and technical advice pursuant to Article 93(3).
3. Unless the Parties to the dispute decide
otherwise, the ruling shall be published 15 days after it is presented to them.
Termination of arbitration panel
A complaining Party may withdraw its
complaint at any time before the ruling has been issued. Such withdrawal is without
prejudice to its right to introduce a new complaint regarding the same issue at a later point
Implementation of arbitration panel rulings
1. The ruling shall be final and binding on
the Parties to the dispute. Each Party to the dispute shall be bound to take the
measures necessary to comply with the ruling referred to in Article 94.
2. The Parties to the dispute shall
endeavour to agree on the specific measures that are required for complying with the ruling.
3. The Party complained against shall
notify the other Party within 30 days after the ruling has been transmitted to the
Parties to the dispute:
(a) the specific measures required for
complying with the ruling;
(b) the reasonable period of time to do so;
(c) a concrete proposal of a temporary
compensation until the full implementation of the specific measures
required for compliance with the ruling.
4. In case of disagreement between the
Parties to the dispute on the content of such notification, the complaining Party may
request the original arbitration panel to rule on whether the proposed measures referred to
under paragraph 3(a) are in compliance with the ruling, on the duration of the period
of time and on whether the compensation proposal is manifestly disproportionate.
The ruling shall be given within 45 days after that request.
5. The Party or Parties concerned shall
notify to the other Party or Parties to the dispute and the Joint Committee the
measures adopted in order to implement the ruling before the expiry of the reasonable period
of time determined in accordance with paragraph 4. Upon that notification, any
Party to the dispute may request the original arbitration panel to rule on the conformity
of those measures with the ruling. The ruling of the arbitration panel shall be given
within 45 days from that request.
6. If the Party or Parties concerned fails
to notify the implementing measures before the expiry of the reasonable period
of time determined in accordance with paragraph 4, or if the arbitration panel
rules that the implementing measures notified by the Party or Parties concerned are not in
compliance with the ruling, such Party or Parties shall, if so requested by the
complaining Party or Parties, enter into consultations with a view to agree on a mutually
acceptable compensation. If no such agreement has been reached within 20 days from the
request, the complaining Party or Parties shall be entitled to suspend only the application of
benefits granted under this Agreement equivalent to those affected by the measure
found to be inconsistent with, or to impair benefits under, this Agreement.
7. In considering what benefits to suspend,
the complaining Party or Parties should first seek to suspend benefits in the same
or sectors as that affected by the measure that the arbitration panel has
found to be inconsistent with, or to impair benefits under, this Agreement. The
complaining Party or Parties that consider it is not practicable or effective to suspend
benefits in the same sector or sectors may suspend benefits in other sectors.
8. The complaining Party or Parties shall
notify the other Party or Parties of the benefits which it intends to suspend no
later than 60 days before the date on which the suspension is due to take effect. Within 15
days from that notification, any of the Parties to the dispute may request the original
arbitration panel to rule on whether the benefits which the complaining Party or Parties
intend to suspend are equivalent to those affected by the measure found to be
inconsistent with, or to impair benefits under, this Agreement, and whether the proposed
suspension is in accordance with paragraphs 6 and 7. The ruling of the arbitration panel
shall be given within 45 days from that request. Benefits shall not be suspended
until the arbitration panel has issued its ruling.
9. The suspension of benefits shall be
temporary and shall only be applied by the complaining Party or Parties until the
measure found to be inconsistent with, or to impair benefits under, this Agreement has
been withdrawn or amended so as to bring it into conformity with this Agreement, or the
Parties to the dispute have reached agreement on a resolution of the dispute.
10. At the request of any of the Parties to
the dispute, the original arbitration panel shall decide on the conformity with the
ruling of any implementing measures adopted after the suspension of benefits and, in
light of such ruling, whether the suspension of benefits should be terminated or modified.
The ruling of the arbitration panel shall be given within 30 days from the date of that
11. The rulings provided for in this
Article shall be binding.
1. Any time period mentioned in this
Chapter may be extended by mutual agreement of the Parties involved.
2. Hearings of the arbitration panels shall
be closed to the public, unless the Parties decide otherwise.
Balance of payments difficulties
1. Where a Party is in serious balance of
payments and external financial difficulties, or under threat thereof, it
may adopt or maintain restrictive measures with regard to trade in goods and in services
and with regard to payments and capital movements, including those related to
2. The Parties shall endeavour to avoid the
application of the restrictive measures referred to in paragraph 1.
3. Any restrictive measure adopted or
maintained under this Article shall be non-discriminatory and of limited duration and shall not go
beyond what is necessary to remedy the balance of payments and external
financial situation. Such a measure shall be in accordance with the conditions
established in the WTO Agreements and consistent with the Articles of Agreement of the
International Monetary Fund, as applicable..LIV
4. The Party maintaining or having adopted
restrictive measures, or any changes thereto, shall promptly notify them to the
other Parties and present, as soon as possible, a time schedule for their removal.
5. The Party applying restrictive measures
shall consult promptly within the Joint Committee. Such consultations shall assess
the balance of payments situation of the Party concerned and the restrictions adopted or
maintained under this Article, taking into account, inter alia, such factors as:
(a) the nature and extent of the balance of
payments and the external financial difficulties;
(b) the external economic and trading
environment of the consulting Party;
(c) alternative corrective measures which
may be available.
The consultations shall address the
compliance of any restrictive measures with paragraphs 3 and 4. All findings of
statistical and other facts presented by the International Monetary Fund relating to
foreign exchange, monetary reserves and balance of payments shall be accepted and
conclusions shall be based on the assessment by the International Monetary Fund of the
balance of payments and the external financial situation of the consulting
National security clause
1. Nothing in this Agreement shall be
(a) to require a Party to furnish any
information the disclosure of which it considers contrary to its essential
(b) to prevent a Party from taking any
action which it considers necessary for the protection of its essential security
(i) relating to fissionable and fusionable
materials or the materials from which they are derived;
(ii) relating to the traffic in arms,
ammunition and implements of war and to such traffic in other goods and
materials or relating to the supply of services, as carried on directly
or indirectly for the purpose of supplying or provisioning a
(iii) relating to the government
procurement of arms, ammunition or war materials or procurement indispensable
for national security or for national defense purposes; or
(iv) taken in time of war or other
emergency in international relations; or
(c) to prevent a Party from taking any
action in pursuance of its obligations under the United Nations Charter for the
maintenance of international peace and security.
2. The Joint Committee shall be informed to
the fullest extent possible of measures taken under paragraphs 1(b) and (c) and of
1. Nothing in this Agreement shall apply to
taxation measures except:
(a) Article 15, and such other provisions
of this Agreement as are necessary to give effect to that Article to the same
extent as does Article III of the GATT 1994; and
(b) with regard to taxation measures
applicable in Section I of Chapter III, where Article XIV of the GATS applies.
2. Nothing in this Agreement shall affect
the rights and obligations of any Party under any tax convention. In the event of
any inconsistency between this Agreement and any such convention, that convention
shall prevail to the extent of the inconsistency.
For the purposes of this Agreement, unless
"days" means calendar days;
"measure" includes inter alia any
law, regulation, procedure, requirement or practice; and
"Party" means any State regarding which
this Agreement has entered into force.
Annexes and Appendices
The Annexes and Appendices to this
Agreement constitute an integral part thereof.
1. The Parties may agree on any amendment
to this Agreement. Unless the Parties decide otherwise, the amendments shall
enter into force on the first day of the third month following the deposit of the last
instrument of ratification, acceptance or approval.
2. Notwithstanding paragraph 1, with
respect to decisions of the Joint Committee amending the Annexes and Appendices to this
Agreement, Article 85(5) shall apply. Such decisions shall enter into force on
the date that the last Party notifies that its internal requirements have been fulfilled,
unless the decision itself specifies a later date. The Joint Committee may decide that any
decision shall enter into force for those Parties that have fulfilled their internal
requirements, provided that Chile is one of those Parties. An EFTA State may apply a decision
of the Joint Committee provisionally until such decision enters into force, subject to
its constitutional requirements.
3. The text of the amendments shall be
deposited with the Depositary.
Any third State may, upon invitation by the
Joint Committee, become a Party to this Agreement. The terms and conditions of the
accession of the additional Party shall be the subject of an agreement between the
Parties and the invited State.
Withdrawal and termination
1. Any Party to this Agreement may withdraw
therefrom by means of a written notification to the Depositary. The
withdrawal shall take effect on the first day of the sixth month after the date on which the
notification was received by the Depositary.
2. If one of the EFTA States withdraws from
this Agreement, a meeting of the remaining Parties shall be convened to
discuss the issue of the continued existence of this Agreement.
Entry into force
1. This Agreement is subject to
ratification, acceptance or approval. The instruments of ratification, acceptance or
approval shall be deposited with the Depositary.
2. This Agreement shall enter into force on
1 February 2004 in relation to those Signatory States which by then have
ratified the Agreement, provided they have deposited their instruments of
ratification, acceptance or approval with the Depositary at least 30 days before the date of entry into
force, and provided that Chile is among the States that have deposited their
instruments of ratification, acceptance or approval.
3. In case this Agreement does not enter
into force on 1 February 2004, it shall enter into force on the first day of the
third month following the latter deposit of the instruments of ratification, acceptance or
approval by Chile and at least one EFTA State.
4. In relation to an EFTA State depositing
its instrument of ratification, acceptance or approval after this Agreement has
entered into force, this Agreement shall enter into force on the first day of the third month
following the deposit of its instrument.
5. If its constitutional requirements
permit, any EFTA State may apply this Agreement provisionally. Provisional
application of this Agreement under this paragraph shall be notified to the
Relation to the complementary agreements
1. The complementary agreement on trade in
agricultural goods between an EFTA State and Chile referred to in Article 1
shall enter into force on the same date for that EFTA State and Chile as this Agreement
enters into force. The complementary agreement shall remain in force as long as
the Parties to it remain Parties to this Agreement.
2. If an EFTA State or Chile withdraws from
the complementary agreement, this Agreement shall terminate between that EFTA
State and Chile on the same date as the withdrawal from the complementary agreement
The Government of Norway shall act as
IN WITNESS WHEREOF the undersigned, being
duly authorised thereto, have signed this Agreement.
Done at Kristiansand, this 26 th day of
June 2003, in a single authentic copy in the English language which shall be deposited
with the Government of Norway. The Government of Norway shall transmit
certified copies to all Signatory States to this Agreement.
|For the Republic of Iceland
Republic of Chile
|For the Republic of Iceland
|For the Principality of Liechtenstein
|For the Kingdom of Norway
|For the Swiss Confederation
Return to Index
1 The terms "aircraft repair and maintenance
services", "selling and marketing of air transport services" and "computer reservation system (CRS)
services" are as defined in paragraph 6 of the Annex on Air Transport Services to the GATS.
2 Where the service is not supplied directly by a
juridical person but through other forms of commercial presence such as a branch or a
representative office, the service supplier (i.e. the juridical person) shall, nonetheless, through such presence be
accorded the treatment provided for service suppliers under this Agreement. Such treatment shall be
extended to the presence through which the service is supplied and need not be extended to any other parts
of the supplier located outside the territory where the service is supplied.
3 Subparagraph (c) does not cover measures of a
Party which limit inputs for the supply of services.
4 Specific commitments assumed under this Article
shall not be construed to require the Parties to compensate for any inherent competitive disadvantage
which result from the foreign character of the relevant services and service suppliers.
5 The sole fact of requiring a visa shall not be
regarded as nullifying or impairing benefits under a specific commitment.
6 It is understood that the reference of paragraphs
2 and 3 to Articles 3 to 5 of the TRIPS Agreement is made for the purpose of outlining their
applicability to the provisions on Intellectual Property of this
7 For the purpose of this Chapter, "goods" shall
mean goods classified in chapters 1 to 97 of the HS.
8 For the purpose of this Chapter, a technical
regulation is a document which lays down characteristics of a product or a service or their related processes and
production methods, including the applicable administrative provisions, with which compliance is
mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or
labeling requirements as they apply to a product, service, process or production method.
9 For the purpose of this Chapter, a standard is a
document approved by a recognised body, that provides, for common and repeated use, rules, guidelines or
characteristics for products or services or related processes and production methods, with which compliance is not
mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or labeling
requirements as they apply to a product, service,process or production method.
10 For the purpose of this Chapter, "goods" shall
mean goods classified in chapters 1 to 97 of the HS.
11 Rules of procedure were adopted by Joint Committee Decision No.1 of 2006 (31 January 2006).
12 For the purpose of this Article, with respect to
goods 'sector' shall mean goods classified in Chapters 1 to 97 of the HS.