WORLD TRADE WT/REG38/2
28January 1998
ORGANIZATION(98-0306)
Original: English Committee onRegional Trade Agreements
FREE TRADE AGREEMENT BETWEEN CANADA AND CHILE
Communication from theParties
I. BACKGROUND INFORMATION ONTHE AGREEMENT
1. Membership andDates ofSignature, Ratification andEntry intoForce
ThePartiestotheAgreementaretheGovernmentofCanadaandtheGovernmentoftheRepublic
ofChile. TheAgreement applies inrespect oftheterritory towhich thecustoms lawsofCanada and
Chile areapplicable respectively.
TheCanada-Chile FreeTrade Agreement (CCFTA) wassigned on5December 1996, andwas
subsequently ratified bytherespective legislatures before entering intoforce on5July1997.
Asummary oftheAgreement wasprovided toMembers inacommunication totheCommittee
onRegional Trade Agreements (WT/REG/38/1) dated 10April 1997. TheAgreement wasnotified
totheCouncil onTrade inGoods onOctober 6,1997 inaccordance withArticle XXIV:7(a) of
GATT 1994, andtotheCouncil onTrade inServices on26November 1997 inaccordance with
Article V:7(a) ofGATS 1994.
2. Type ofAgreement
TheAgreement creates afree-trade areainconformity with thedefinition setoutin
Article XXIV:8(b) ofGATT 1994. TheAgreement ismodeled ontheNorth American FreeTrade
Agreement (NAFTA) andconsidered bybothParties asabridge towards Chile'saccession tothe
NAFTA.
3. Scope
TheCCFTA isacomprehensive trade agreement, covering trade ingoods andservices,
investmentanddisputesettlementmechanisms.ThisdocumentpresentsareportontheCCFTAfollowing
thestandard format fortrade ingoods.
TheAgreement covers alltrade inindustrial products (HSChapters 25-97) andsubstantially
alltrade infishandagriculture products (HSChapters 1-24). Theproducts covered must originate
inCanada orChile according totherulesoforigin laidoutintheAgreement inorder tobenefit from
preferential tarifftreatment. Theproducts thatareexcluded fromtariffelimination areidentified with
staging category "Y"intheSchedules toAnnex C-02.2, andarelimited toanumber ofdairy, poultry
andeggproducts.
Thecoverage oftheAgreement interms oftotalmerchandise trade isasfollows:WT/REG38/2
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Trade Covered bytheCCFTA1
(a) Total two-way trade covered bytheAgreement (inmillion ofCDN $)
1994 -607.8
1995 -694.2
1996 -899.2
(b) Total two-way trade (inmillion ofCDN $)
1994 -609.7
1995 -695.4
1996 -901.1
(c) Percentage oftrade covered bytheAgreement withrespect tototalbilateral trade
1994 -99.7%
1995 -99.8%
1996 -99.8%
4. Trade Data
Canada: Imports from Chile
(CDN $million)
Total Covered bytheCCFTA %oftotal covered
1994 238.2 238.2 100
1995 278.9 278.9 100
1996 342.2 342.2 100
Canada 'sImports from Chile: Major Products
(CDN $million)
1994 1995 1996
Copper oresandconcentrates (HS2603) 36.5 12.5 82.8
Grapes, fresh ordried (HS0806) 76.2 76.7 78.7
Wine offresh grapes (HS2204) 21.1 27.5 38.5
Fruit andvegetable juices (HS2009) 3.5 10.3 20.2
Apples, pears andquinces, fresh (HS0808) 12.4 12.9 18.3
1Figures arecalculated using Canada 'simports reported inCanadian dollars andChile 'simports reported
inUSdollars. Theoverall figures areconverted toCanadian dollars bymultiplying byanaverage exchange rate
foreach year.WT/REG38/2
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Chile: Imports from Canada
(US$million)
Total Covered bytheCCFTA %oftotal covered
1994 264.8 263.5 99.5
1995 305.1 304.2 99.7
1996 408.1 406.7 99.7
Chile'sImports from Canada: Major Products
(US$million)
1994 1995 1996
Wheat andmeslin (HS1001) 66.4 42.9 119.2
Coal andsolid fuels from coal(HS2701) 13.1 25.7 31.1
Transmission apparatus, etc(HS8525) 2.5 15.7 14.3
Line telephony electr appar (HS8517) 5.8 6.4 14.3
Newsprint, roll/sheets (HS4801) 4.2 3.2 10.9
II. TRADE PROVISIONS
Article C-08onImport andExport Restrictions provides that,withtheexception ofthemeasures
listed inAnnex C-01.3 (seeII.1.2 andII.2below), onlythose import orexport restrictions consistent
withArticle XIoftheGATT 1994maybeadopted ormaintained byeither Party. Under Article C-08,
thetwoParties alsoagree thatbothexport andimport price requirements areprohibited. Annex C-08
provides anadditional exception toArticle C-08 andtoArticle C-13 (seebelow).
1. Import Restrictions
1.1 Duties andCharges
Article C-02 provides fortheelimination ofCanadian andChilean tariffs, inaccordance with
theirrespective schedules, ongoods traded between Canada andChile thatqualify under therulesof
origin setoutinChapter DoftheAgreement. Tariff elimination staging categories, tariff ratequotas,
andtariff schedules forCanada andChile aresetoutinseparate schedules toAnnex C-02.2.
Alltariffs onmostoriginating goods traded between Canada andChile wereeliminated upon
implementation oftheAgreement (5July1997). Thisincludes thefollowing products thatmake up
animportant partoftheCanada-Chile tradeinindustrial goods: mining equipment, telecommunications
andcomputer equipment, pharmaceuticals, heavy electrical equipment, andenvironmental equipment.
More broadly, other industrial items forwhich bothParties eliminated thetariff immediately areall
fishandfishproducts; assorted products ofthechemical andallied industries (including cosmetics,
preparations forsoaps andcleaning agents, andphotographic andcinematographic goods); rawhidesWT/REG38/2
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andleather articles (other thanfootwear); wood pulpandprinted materials (such asbooks, magazines
andnewspapers); most wood andpaper products; materials usedbyandproducts ofthejewellery
industry (pearls, precious andsemi-precious stones, precious metals, imitation jewellery); various
metals andrelated products made from those metals (copper, nickel, lead, zinc, andproducts such
astools);variedtypesoftransportequipment(automotivegoods,urbantransitequipment,diesel-electric
locomotives, miscellaneous railequipment, aircraft, andships); allmachinery (except certain cranes);
andallelectrical equipment.
Some tariffs willbephased-out reaching 0percentnolaterthan1January 2003. Theprincipal
products thisapplies toaretextiles, apparel, footwear andplastics.
Several products willhavealonger phase-out. Canada willretain itsover-quota tariffs fordairy,
poultry andeggproducts, while Chile willretain itstariffs forthesamecommodities. Chile hasprovided
immediate duty-free access forquantities ofCanadian pork, canola oilandbeef.TheChilean over-quota
tariffforCanadian porkandvegetable oilswillbephased outover10years while theChilean over-quota
tariffforCanadian beefwillbephased outover15years. Other Chilean agri-food tariffs tobephased
outover10years include potato products, cornflour anddried peas. Forother thandairy, poultry
andeggproducts, Canadian tariffs onagricultural products havebeeneliminated immediately upon
implementation oftheAgreement (5July1997) orwillbeeliminated by1January 2003. Thisincludes,
forexample, agricultural products thatareeligible fortheChilean "simplified dutydrawback" forwhich
theCanadian tariff willbereduced oreliminated when theproduct isnolonger eligible forsimplified
dutydrawback orby1January 2003, whichever comes first.
AsintheNAFTA, theAgreement alsoallows theParties toconsult andagree onamore rapid
phased-out oftariffs. Tariffs thatarealready freeineither country willremain free.
1.2 Quantitative Restrictions
Article C-08 prohibits anyquantitative restrictions ontheimportation ofanygoods fromthe
otherParty,exceptinaccordancewiththeParties'rightsandobligationsunderArticleXIofGATT1994.
Afewexceptions arelisted inAnnex C-01.3 dealing withChile'sprohibition onimports ofusedvehicles
andwithCanadianmeasuresrespectingtheprohibitionfromimportinganygoodsenumeratedorreferred
toinScheduleVIIoftheCanadianCustomsTariff(re-enumeratedastariffitems9897.00.00,9898.00.00
and9899.00.00 on1January 1998). Examples ofgoods thatareprohibited from entering Canada
under these provisions areoffensive weapons, materials thatareconsidered tobeobscene, constitute
hatepropaganda orareofatreasonable orseditious character andcertain wildanimals.
2. Export Restrictions
InAnnex C-01.3, ingeneral, theCanadian exceptions toArticles C-01 andC-08mirror those
setoutinNAFTA including theability toapply export controls onlogs,theapplication ofrestrictions
relating totheexport ofunprocessed fishincertain provinces, provisions intheCustoms Tariff relating
toprohibited goods andprovisions intheExport ActandExcise Actrelating toalcohol. Chilean
exceptions arespecified inAnnex C-08 (seeII.2.2 below).
Article C-13states thatifeither Party restricts exports totheother Party toconserve resources
ortodealwithashort supply situation, itmaynotreduce theproportion oftotalsupply historically
available totheother Party. Norcanitimpose ahigher priceonexports thanforcomparable domestic
salesordisrupt thenormal channels ofsupply ormixofproducts.WT/REG38/2
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2.1 Duties andCharges
Article C-12 oftheAgreement prohibits theimposition ofanyduty, taxorother charge on
theexport ofanygood totheterritory oftheother Party, unless applied equally when suchgood is
destined fordomestic consumption.
2.2 Quantitative Restrictions
Article C-08 oftheAgreement prohibits anyrestrictions ontheexportation ofanygoodfrom
theother Party, except inaccordance withtheParties 'rights andobligations under Article XIof
GATT 1994. Exceptions arelisted inAnnex C-01.3 andAnnex C-08. Annex C-01.3 refers, asindicated
above, toCanada 'sability toapply export controls onlogs, theapplication ofrestrictions relating to
theexport ofunprocessed fishincertain provinces, andprovisions intheExport ActandExcise Act
relating toalcohol. Annex C-08provides anexception toArticle C-08andtoArticle C-13forChile's
copper andother reserves fornational industry.
3. Rules ofOrigin
Detailed rules oforigin aresetoutinChapter DoftheAgreement. Ingeneral, origin is
conferred when goods arewholly produced inthefreetrade area;allofthenon-originating materials
usedintheproduction ofgoods undergo thechange intariff classification specified forthatgood in
Annex D-01 and,insome cases, contain acertain amount ofCanadian andChilean content; orwhen
goods areproduced inthefreetradeareaentirely fromoriginating materials. There arealsoanumber
ofother special rulesthatcanbeapplied inlimited circumstances, butwhich mayhelpotherwise non-
originating goods toqualify under theAgreement. These special rulesinclude Articles D-01(d) (certain
circumstances where notariff change ispossible), D-04 "Accumulation" andD-05 "DeMinimis ".
There arealsoprovisions thatestablish howcertain materials aretobetreated when determining the
originofgoods(eg.packingandpackagingmaterials,fungiblematerialsandindirectmaterialsconsumed
during production ofgoods).
Indrafting thespecific rulesoforigin contained inAnnex D-01, Canada andChile sought to
ensure thatproducers inCanada andChile whorelyonimported inputs would beabletobenefit from
theAgreementwithoutmajordisruptiontotheirnormalsourceofmaterials.ChapterEoftheAgreement
contains aseries ofprovisions toharmonize customs procedures, including thecertification oforigin
andtheadministration andenforcement oforigin determination. TheAgreement alsoestablishes a
Committee onTrade inGoods andRules ofOrigin andaCustoms Sub-Committee tomonitor the
implementation oftheprovisions oftheAgreement andtocooperate inensuring theeffective
administration ofcustoms-related provisions oftheAgreement. Upon accession ofChile totheNAFTA,
therules oforigin ofChapter Dshallbereplaced bytherules oforigin tobenegotiated aspartof
theterms oftheaccession ofChile totheNAFTA.
4. Standards
InArticle A-03 theParties affirm theirrights andobligations under theWTO agreements,
including theAgreement ontheApplication ofSanitary andPhytosanitary Measures andtheAgreement
onTechnical Barriers toTrade. TheCCFTA alsoprovides forspecific provisions onstandards for
telecommunications.
Chapter IonTelecommunications contains provisions (I-04) onstandards-related measures
andtheestablishment ofaCommittee onTelecommunications Standards. TheCommittee isresponsible
fordeveloping awork program tomake compatible thescope ofstandards requirements forterminal
attachment equipment andtheestablishment ofprocedures foraccepting testdatabetween thetwoWT/REG38/2
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countries forthecertification ofterminal attachment equipment. TheParties areintheprocess of
developing awork plan.
Asnoted above, intheareaofsanitary andphytosanitary issues, theParties agreed thattheir
rightsandobligationswouldbegovernedbytheWorldTradeOrganizationAgreementontheApplication
ofSanitary andPhytosanitary Measures.
5. Safeguards
(a) Bilateral Actions
Fortradebetween theParties totheAgreement, Article F-01provides forbilateral emergency
action, during thesixyeartransition period, incircumstances where dutyreductions made pursuant
totheAgreement result inincreased imports from theother Party under suchconditions thatthese
imports alone arecausing serious injury, orthreat thereof, tothedomestic industry oftheimporting
Party. These measures mayinclude thesuspension ofthefurther reduction ofrateofdutyprovided
under theAgreement, anincrease intherateofdutytoalevelnothigher thantheMFN rate(thelesser
oftherateatthetimetheaction istaken andtheMFN applied rateineffect thedayimmediately
preceding theentry intoforce oftheAgreement), orforduties applied onaseasonal basis, anincrease
intheratetoalevelnothigher thantheMFN applied rateforthecorresponding season immediately
preceding thedateofentry intoforce oftheAgreement. There are,however, anumber ofconditions
andlimitations established withrespect totheimposition ofsuchactions. These include: noaction
maybemaintained foraperiod exceeding threeyears orbeyond theexpiration ofthetransition period
without theconsent oftheother Party; action maybetaken against aparticular good onlyonce; and
compensation must beprovided bytheParty taking theaction totheother Party.
(b) Global Actions
Under Article F-02oftheAgreement, theParties retain theirrights toinclude imports from
theother Party inanyglobal safeguard action ifimports fromthatParty account forasubstantial share
oftotalimports andcontribute importantly toserious injury, orthreat thereof, caused byimports.
Imports willnotnormally beconsidered toaccount forasubstantial share ifthatParty isnotamong
thetopfivesuppliers oftheproduct overthemostrecent three-year period. Aswithbilateral actions,
thereareanumber ofconditions andlimitations. These include theprovision ofcompensation aswell
asanumber ofprocedural andadministrative requirements.
6. Anti-Dumping andCountervailing Measures
ChapterMoftheAgreementincludesamutualexemptionfromtheuseofanti-dumpingmeasures
between thetwocountries. Theanti-dumping exemption takes effect when thetariffs oneachproduct
havereached zeroinbothcountries orby1January 2003, whichever comes first.
ArticleM-04providesforconsultationswiththeotherPartyregardingexceptionalcircumstances
thatmayarisewithrespect totheoperation ofChapter M.Suchcircumstances mayinclude changes
innormal trading patterns due,forexample, toatrade action inathirdcountry. TheAgreement also
requires bothParties tore-evaluate theexemption provision afterfiveyears.
AParty willstillhaverecourse tocountervailing duties aspermitted under theWTO ifits
domestic industry isinjured, orthreatened withinjury, bysubsidized imports from theother Party.
Article M-05 alsoprovides forconsultations, through theCommittee onAnti-Dumping and
Countervailing Measures, withaviewtodefining subsidy disciplines further andeliminating theneed
fordomestic countervailing dutymeasures ontrade between theParties.WT/REG38/2
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7. Subsidies andState-Aid
Asnoted above, Chapter Mprovides fortheestablishment ofacommittee ontrade remedies.
TheCommittee willconsult onanumber ofissues relevant totheuseoftrade remedy measures,
including further defining subsidy disciplines. Onexport subsidies onagricultural goods, Article C-14
states thatbothParties share thecommon objective ofthemultilateral elimination ofexport subsidies
foragricultural goods, andagree toeliminate theuseofexport subsidies foragricultural products
between theParties effective 1January 2003. During theintervening period, ifeither Party introduces
orre-introduces anexport subsidy onanagricultural good, theother Party mayincrease therateof
dutyonthatproduct totheMFN rate.
8. Sector-Specific Provisions
Inaddition totheprovisions oftheAgreement which apply toallindustrial sectors, the
Agreement contains twoannexes inChapter C(Market Access) addressing sector specific provisions
fortextiles andapparel goods (Annex C-00-B) andfortrade andinvestment intheautomotive
sector (Annex C-00-A).
Annex C-00A setsoutspecial provisions which ensure thattheautomotive provisions under
theCanada-U.S. AutoPact, asenshrined intheCanada-U.S. FreeTrade Agreement andtheNAFTA,
aremaintained intheAgreement. Interms oftariff elimination, alltariffs onmotor vehicles andauto
parts were eliminated bilaterally between Canada andChile asof5July1997.
Under theCCFTA, thephasing-out oftariffs forbothcountries fortextile andapparel isup
tosixyears. There arespecial provisions applicable totextile andapparel goods under Annex C-00-B
thatinclude thefollowing: (i)immediate dutyfreetreatment forcertain certified hand-made goods,
(ii)specific safeguard measures, (iii)exceptions tocertain rulesoforigin, (iv)conversion factors, and
(v)definitions related tothisAnnex. Onsafeguard measures, Section 3ofthisAnnex provides for
tariff action during thetransition period (either asuspension ofreduction ofrateofdutyunder the
Agreement oranincrease intherateofdutytotheMFN ratetothelesser oftheapplied MFN rate
atthetimeoftheaction andtheapplied MFN rateonthedayimmediately preceding theentry into
force oftheagreement). Section 4provides forquantitative restrictions applying tonon-originating
goods which should benolessthanthesumofthequantity imported during thelast12months preceding
theconsultation and20percent ofsuchquantity forcotton, man-made fibre andother non-cotton
vegetable fibregood categories, and6percentforwool.
9. Other
Canada andChile haveagreed tomaintain theirrespective dutydrawback programs which
allow fortherefund ofcustoms duties levied onimported materials andcomponents incorporated into
exported goods. TheCCFTA prohibits theimposition ormaintenance ofcustoms userfeesandChile
hasagreed toeliminate itsexisting fees.Thecustoms procedures inChapter Earedesigned toensure
effective administration andenforcement oftherulesoforigin andothercustoms matters without placing
overly onerous requirements ontraders. TheCCFTA alsocontains provisions regarding thetemporary
duty-free entry ofnecessary professional equipment andtoolsofthetradeforbusiness persons. These
rulesalsocover goods imported forsports purposes, display anddemonstration, commercial samples
andgoods thathaveundergone repair oralteration intheother country. Article C-16 oncustoms
valuation states thattheWTO Customs Valuation Code willgovern reciprocal tradebythetwoParties.WT/REG38/2
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III. GENERAL PROVISIONS OFTHE AGREEMENT
1. Exception andReservations
Exceptions arelisted under Chapter OoftheAgreement andinclude general exceptions, as
understood under Article XXoftheGATT 1994 anditsinterpretative notes, asfollows: measures
regarding national security, balance ofpayments measures, allmatters pertaining totaxation, except
assetoutinArticle O-03 andAnnex O-03, andcultural industries except asspecifically provided in
Article C-02.
2. Accession
TheAgreement isnotopenforaccession assuch, however itspurpose istospecifically facilitate
Chile'saccession totheNAFTA which isopenforaccession toanycountry orgroup ofcountries subject
tosuchterms andconditions asmaybeagreed between suchcountry orgroup ofcountries andthe
NAFTA FreeTrade Commission andfollowing approval inaccordance withtheapplicable legal
procedures ineachcountry. ThePreamble, Article D-15, andArticle M-05 demonstrate theintention
ofbothParties toachieve theaccession ofChile totheNAFTA.
3. Institutional Dispute Settlement Procedures
Theinstitutional arrangements setoutintheCCFTA (Chapter Noninstitutional arrangements
anddispute settlement procedures) ensure jointdecision-making andeffective dispute resolution. Canada
andChile haveanequal voice inresolving problems through ready access toobjective dispute settlement
panels providing authoritative interpretations.
TheCCFTA thusobliges Canada andChile toseekagreed interpretations andreach agreed
solutions. Intheevent thatanymatter arises thatmight affect theoperation oftheCCFTA, either country
mayrequest consultations withtheother. Should consultations failtoresolve thematter, either country
mayrequest ameeting oftheCommission. TheCCFTA directs theCommission tosettle thedispute
promptly. Ifthecountries areunable toagree onamutually acceptable solution, either mayinitiate
arbitral panel proceedings whose ruling isbinding. These provisions provide aneffective, timely and
finalprocedure forthesettlement ofdisputes.
Chapter N,Section IIIalsoprovides fortheestablishment ofanAdvisory Committee onPrivate
Commercial Disputes. Thepurpose ofthisCommittee istoreport andprovide recommendations to
theCommission onissues related toarbitration andother procedures fortheresolution ofprivate
international commercial disputes inthefreetrade area.
Article N-05provides thatacomplaining Party retains thediscretion tosettleanymatter, arising
under boththeCCFTA andtheWTO Agreement, ineither forum. Article N-05.4 further provides
thatoncedispute settlement procedures havebeeninitiated either under Article N-07orunder theWTO
Agreement, theforum selected shallbeusedtotheexclusion oftheother, unless theParty claims that
itsaction issubject toArticle A-04 (relation toEnvironmental andConservation Agreements) and
requests thatthematter beconsidered under theCCFTA: insuchcase, theparty hassolerecourse
todispute settlement under theCCFTA.
4. Relation withOther Trade Agreements
TheAgreement isconsidered abridge towards Chile'saccession totheNAFTA andassuch,
refers totheNAFTA bothinitsnature andstructure.WT/REG38/2
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Under Article A-03.1, theAgreement affirms theParties 'existing rights andobligations with
respect toeachother under theMarrakesh Agreement Establishing theWorld Trade Organization .
Through Article C-08, theAgreement incorporates Article XIoftheGATT, through F-02itincorporates
Article XIXoftheGATT 1994andthrough Article 0-01, itincorporates Article XXoftheGATT 1994
anditsinterpretative notes.
Article A-03.2 provides that,intheevent ofanyinconsistency between theCCFTA andsuch
other agreements referred tounder Article A-03.1, theCCFTA shall prevail totheextent ofthe
inconsistency, except asotherwise provided intheCCFTA.
Totheextent ofanyinconsistency between thisAgreement andtheWTO Agreement onTextiles
andClothing, thisAgreement shallprevail. Intheevent thatquantitative restrictions areimposed by
aParty, Annex C-00-B Section 4.9(b) stipulates thattheirannual growth ratebeaccelerated oncotton,
man-made fibre andnon-cotton vegetable fibre textile andapparel goods asrequired bytheWTO
Agreement onTextiles andClothing .
ArticleC-16statesthattheCustomsValuationCodeshallgoverncustomvaluationissuesbetween
theParties.
Paragraph4(b)oftheCanadiansectionofAnnexC-10.2statesthatnotwithstandingArticleC-01,
theAgreement between Canada andtheEuropean Economic Community Concerning Trade and
Commerce inAlcoholic Beverages of1989 shallapply.
Asnoted above onsector-specific provisions, Annex C-00-A gives Canada therighttomaintain
theautomotive provisions under theCanada-U.S. Auto Pact, asenshrined intheCanada-U.S. Free
Trade Agreement andtheNAFTA.
Under Article F-02 theParties retain rights andobligations under theWTO Agreement on
Safeguards .
Article I-04,onstandard-related measures intelecommunications, affirms theParties needto
abide bytheterms ofWTO Agreement onTechnical Barriers toTrade .
Article M-07.3 provides thatalldisputes between theParties arising inrespect oftheapplication
ofanti-dumpingmeasuresorcountervailingdutymeasuresbyeitherPartynotdealtwithunderChapterN
oftheAgreement (Institutional Arrangements andDispute Settlement Procedures), should besettled
inaccordance withtheWTO Agreement. TheParties 'actions should beinaccordance withtheWTO
Dispute Settlement Understanding andaimatdetermining whether ananti-dumping measure taken by
aParty isconsistent with Article VIoftheGATT 1994, ortheAgreement onSubsidies and
Countervailing Measures ortheAgreement onImplementation ofArticle VIoftheGATT 1994.
Asindicated inthesection onDispute Settlement, subject totheterms oftheAgreement,
Article N-05 reaffirms theParties righttoreferdisputes totheWTO.
TheParties areobliged toencourage andfacilitate theuseofarbitration forthesettlement of
internationalcommercialdisputesbetweenprivatepartiesinthefreetradearea,andtoprovideprocedures
toensure observance ofagreements toarbitrate andfortherecognition ofarbitral awards. AParty
isdeemed tobeincompliance withthese obligations iftheParty hassigned andisincompliance with
theUnited Nations Convention ontheRecognition andEnforcement ofForeign Arbitral Awards of1958
orthe1975 Inter-American Convention onInternational Commercial Arbitration .WT/REG38/2
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5. Institutional Framework
TheCCFTA establishes theFreeTrade Commission andtheFTASecretariat. Themainbody
created bytheAgreement istheCanada-Chile FreeTrade Commission, which isconstituted when the
Ministers meet. TheCommission isconstituted forthepurposes ofsupervising implementation and
furthering elaboration oftheAgreement, considering matters affecting operation oftheAgreement,
resolving disputes regarding interpretation orapplication, supervising thework ofworking groups and
committees, establishing anddelegating responsibilities, seeking advice ofpersons outside government,
establishing rules andprocedures andconvening meetings.
TheSecretariat willestablish offices ineachcountry andsupport theCommission, aswellas
acting asaregistrar fordispute settlement panels.
TheCommission supervises thework oftheseven bodies created tofurther theAgreement.
They aretheCommittee onTrade inGoods andRules ofOrigin, theSub-Committee onAgriculture,
theCustoms Sub-Committee, theCommittee onTelecommunications Standards, theCommittee on
Anti-DumpingandCountervailingMeasures,theAdvisoryCommitteeonPrivateCommercialDisputes,
andtheWorking Group onTemporary Entry.
IV. OTHER
Inaddition totradeingoods, theCCFTA covers anumber ofother areas, including Investment
(Chapter H); Cross-Border Trade inServices (Chapter H); Telecommunications (Chapter I);
Competition Policy, Monopolies andStateEnterprises (Chapter J);andTemporary Entry forBusiness
Persons (Chapter K).
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