. /.WORLD TRADE
ORGANIZATIONTN/RL/W/16
10 July 2002
(02-3850)
Negotiating Group on Rules Original:  Spanish
SUBMISSION ON REGIONAL TRADE AGREEMENTS
CHILE
1. Since 1990, Chile has pursued an active trade liberalization policy in concordance with its
development strategy.  This policy has combined intensification of the unilateral liberalization process
initiated in the mid-1970s with participation in GATT/WTO negotiations and negotiation of tradeagreements with countries or regions of interest to Chile.  Based on this experience, we would like to
share some preliminary thoughts on certain specific aspects of the relationship between the
multilateral trading system and regional trade agreements (RTAs).
2. Chile reaffirms the primacy of the World Trade Organization as a forum for drawing up rules
and guiding the process of multilateral trade liberalization.  Moreover, it considers that RTAscomplement and support the multilateral system, to the extent that they are used as a means of
achieving further liberalization and trade expansion.
3. Chile supported the inclusion in the Doha Ministerial Declaration of paragraph 29, whereby
we agreed to negotiations aimed at clarifying and improving disciplines and procedures under the
existing WTO provisions applying to regional trade agreements, since it had noted that the existingdisciplines revealed omissions or a lack of understanding in relation to both procedural matters and
certain substantive concepts and rules.
4. This submission only deals with procedural matters.  Once the importance of maintaining
transparency by notifying regional agreements has been acknowledged, there are a number of issues
which can be used as a starting-point for discussion:
When to notify
5. Article XXIV.7 of the GATT 1994 states that:  "Any contracting party deciding to enter into a
customs union or free-trade area, … shall promptly notify the CONTRACTING PARTIES, …".
However, differences exist among Members regarding the interpretation of this provision.  While
some Members understand it to mean that notifications must be made before parliamentary approval
is received or even before an Agreement is signed, legal restrictions prevent other Members fromnotifying an Agreement until it has been approved by the legislative branch.
Where to notify
6. Although the creation of the Committee on Regional Trade Agreements (CRTA) was a major
step forward, notifications still have to be made  to the Councils for Trade in Goods and Trade in
Services which merely provide a mandate for the CRTA review.  Notifications could be made directly
to the CRTA, thereby bypassing procedural steps which delay the process.TN/RL/W/16
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What to notify
7. The first major step forward in this area was the creation of standard formats for additional
information on goods and services which Members are required to submit.  Even when Members do
provide all of the required information, there are st ill difficulties related to systemic issues, such as
what is meant by "substantially all trade", a matter which will be the subject of a future submission.
8. Furthermore, the discussion has focussed to date on the information which parties to a
regional agreement are required to furnish.  A major problem, however, is the capacity of Members
which are not a party to the Agreement to study and assess its impact on their economies and the
multilateral system.  One way of enhancing the transparency and effectiveness of such reviews could
be for the studies of notified agreements to be carried out by third parties in accordance with agreed
parameters.  Indeed, the Secretariat itself or independent trade experts could conduct reviews, askquestions and present statements of fact, thereby facilitating the governments' conclusions.
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